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Order UE18-06 - Electric - Maritime Electric Company, Limited -
Issurance of First Mortgage Bonds
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this Order.

Docket
UE21316 Order UE18-06
IN
THE MATTER of an
application by Maritime Electric Company, Limited under Section 12(1) of the
Electric Power Act,
(R.S.P.E.I. 1988, Cap. E-4), for approval of the issurance of first mortgage
bonds.
BEFORE THE
COMMISSION ON
Tuesday,
October 30, 2018.
J. Scott MacKenzie,
Q.C., Chair
M. Douglas Clow, Vice-Chair
John Broderick, Commissioner
Order
WHEREAS
Maritime Electric Company, Limited ("Maritime
Electric" or the "Company") is a public utility under the
Electric Power Act
("EPA" or the "Act") engaged in the production, purchase, transmission,
distribution, and sale of electricity within Prince Edward Island.
AND WHEREAS
on October 12, 2018, the Company filed an application with this Commission
for the issuance of up to $40 million in long term first mortgage bonds;
AND WHEREAS
Section 12(1) of the
Act reads as follows: no public utility shall issue
stocks or shares or bonds, debentures, securities, or other evidence of
indebtedness, payable in more than one year from the date thereof, unless it
has first obtained approval by the Commission of the proposed issue;
AND WHEREAS
the Company states in its application it requires the funds to refinance
approximately $15 million of bonds maturing in December 2018 and to convert
approximately $25 million of short term indebtedness incurred by the Company
to finance normal business activities and the Company's capital program
previously approved by the Commission;
AND WHEREAS
the Company's most recent rate application approved by the Commission Order
UE16-01
took into consideration the anticipated interest rate for this bond
issue;
AND WHEREAS
the Commission has reviewed the application and supporting material and
finds the issuance of $40 million first mortgage bonds is a just and
reasonable approach to present long term financing requirements of the
Company at this time;
NOW THEREFORE,
pursuant to the
Island Regulatory and Appeals Commission
Act and the
Electric Power Act,
IT IS
ORDERED THAT:
-
Approval is hereby granted for the Company to
proceed with the issurance and sale of first mortgage bonds provided
that:
-
The principal amount is not to exceed $40.0
million,
-
The debt is not to mature later than 40 years;
and
-
The coupon interest rate must be established
through a competitive market pricing process.
-
The company shall file with the Commission, upon completion of the issue
and sale of the first mortgate bonds, a copy of all documents delivered
at the closing of the transaction.
DATED
at Charlottetown, Prince Edward
Island, Tuesday, October 30, 2018.
BY THE COMMISSION:
J. Scott
MacKenzie, Q,C., Chair
M. Douglas Clow, Vice-Chair
John Broderick, Commissioner
Notice:
Section 12 of the
Island Regulatory and Appeals Commission Act
reads as follows:
12.
The Commission
may, in its absolute discretion, review, rescind or vary any order or decision made by it,
or rehear any application before deciding it.
Parties to this proceeding seeking a review of the
Commission's decision or order in this matter may do so by filing with the Commission, at
the earliest date, a written Request for Review,
which clearly states the reasons for the review and the nature of the relief sought.
Sections 13.(1),
13(2) 13.(3) and 13.(4) of the
Act provide as follows:
13.(1) An appeal lies from a decision or order of
the Commission to the Court of Appeal upon a question of law or
jurisdiction.
(2) The appeal shall be made by filing a notice of
appeal in the Court of Appeal within twenty days after the decision or
order appealed from and the rules of court respecting appeals apply with
the necessary changes.
(3) The Commission shall be deemed to be a party
to the appeal.
(4) No costs shall be payable by any party to an
appeal under this section unless the Court of Appeal, in its discretion,
for special reasons, so orders.
NOTE:
In accordance with IRAC's Records
Retention and Disposition Schedule, the material contained in the official
file regarding this matter will be retained by the Commission for a period
of 5 years.
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