Petition for Financing Approval
Order Approving Petition
ORDER No. 25, 984
DW 16-854
New Hampshire Public Utilities Commission
January 31, 2017
Martin
P. Honigberg Chairman
In this
order, the Commission grants Lakes Region Water Company
authority to borrow $265, 000 from CoBank to finance
construction projects in the Company's Paradise Shores
and Indian Mound divisions. The Commission finds the debt
consistent with the public good and approves the financing as
proposed.
I.
BACKGROUND
Lakes
Region Water Company, Inc. (Lakes Region or the Company), is
a regulated water utility pursuant to RSA 362:2 and RSA 362:4
serving approximately 1, 700 customers in 18 water systems
located in the Lakes and White Mountain Regions of New
Hampshire. On November 30, 2016, Lakes Region filed a
petition pursuant to RSA 369:1 to borrow $265, 000 from
CoBank to finance construction projects in the Paradise
Shores division in Moultonborough and Indian Mound division
in Ossipee. Staff recommended approval. The petition and
subsequent docket filings, other than any information for
which confidential treatment is requested of or granted by
the Commission, are posted to the Commission's website at
http://www.puc.nh.gov/Regulatory/Docketbk/2016/16-854html.
II.
COMMISSION ANALYSIS
RSA
369:1 states that a utility "may, with the approval of
the commission but not otherwise, issue and sell ... notes
and other evidences of indebtedness payable more than 12
months after the date thereof for lawful corporate
purposes." The Commission must conduct a "hearing
or investigation as it may deem proper, " then authorize
the financing "if in its judgment the issue of such
securities upon the terms proposed is consistent with the
public good." RSA 369:4.
The
Commission reviews the amount to be financed, the
reasonableness of the terms and conditions, the proposed use
of the proceeds, and the effect on rates. Appeal of
Easton, 125 N.H. 205, 211 (1984); see RSA 369:4
(finding of public good required for approval of long-term
public utility debt). The rigor of an Easton inquiry
varies depending...
