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Order UE18-11 - Electric - Maritime Electric Company, Limited -
Issurance of First Mortgage Bonds
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this Order.

Docket
UE21316 Order UE18-11
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
Monday,
December 3, 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
as required by Section 12(2) of the
Act; the Commission approves the
purpose of the proposed bond issuance;
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 Summary Term Sheet dated December 3, 2018
issued by RBC Capital Markets, a copy of the resolution of the Company's
Board of Director approving the terms of issue and the legal opinion of the
Company's solicitors that the bond issuance and sale complies with
applicable securities laws;
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 issurance of
first mortgage secured bonds in accordance with the Summary Term Sheet,
which includes the following details:
-
The principal amount is not to exceed $40.0
million,
-
The debt issue term of 40 years, maturing
December 6, 2058; and
-
The yield rate is 4.148%, subject only to
adjustments as set out in the Summary Term Sheet.
-
Upon completion of the bond issue the Company shall file a copy of the
closing documents with the Commission.
-
The company shall file a report with the Commission on the disposition
of the bond issue proceeds within six (6) months from the date of bond
issue.
DATED
at Charlottetown, Prince Edward
Island, Monday, December 3, 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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