DF 98-118
Concord Electric Company
Petition for Authority to Issue Securities
Order Nisi Approving Petition to Issue Securities
O R D E R N O. 22,987
July 24, 1998
On July 1, 1998, the Petitioner, Concord Electric
Company (CECo or Company), filed a petition with the New
Hampshire Public Utilities Commission (Commission) for
authorization to issue securities pursuant to RSA 369, including
the mortgaging of the Company's present and future property,
tangible and intangible, including franchises, as security. CECo
proposes to issue and sell First Mortgage Bonds, Series J,
(Bonds) in an amount up to $10,000,000 to an institutional
investor, namely Allstate Insurance Company, for a thirty year
term at an interest rate not to exceed 6.96%. In addition, prior
to the issuance and sale of the bonds, CECo will receive
$1,250,000 of capital contribution from its parent, Unitil
Corporation.
The Bonds are to be issued under a Supplemental
Indenture supplementing the Company's existing Indenture of
Mortgage and Deed of Trust to Old Colony Trust Company, Trustee
(to which State Street Bank and Trust Company is successor
Trustee), dated as of July 15, 1958, as heretofore supplemented
by existing First, Second, Third, Fourth, Fifth, Sixth, Seventh
and Eighth Supplemental Indentures as well as by a further
proposed Ninth Supplemental Indenture to be given incident to the
issue of the Bonds. The Company proposes to use the net proceeds
to be derived from the issuance and sale of the Bonds: (1) to pay
off outstanding short-term indebtedness incurred for additions,
extensions and betterments to the Company's property, plant and
equipment, in the amount of approximately $5,824,000; (2) to
redeem $5,200,000 principal amount outstanding of First Mortgage
Bonds, Series H, 9.43%, including a $650,000 sinking fund payment
on such Bonds, due prior to the financing; (3) to defray the
costs and expense of the financing and redemption contemplated in
this Petition; and (4) to finance future expenditures for
additions, extensions, and betterments to property, plant and
equipment.
The Company has requested that the Commission authorize
the costs associated with the redemption of the First Mortgage
Bonds, Series H, and the remaining unamortized debt expense
related to that issue, be incorporated as a portion of the cost
of the new financing contemplated herein. This cost is estimated
at $156,023 which, when combined with the estimated costs for the
new financing of $70,000, results in a total estimated cost of
$226,023 to be amortized over the life of the proposed new issue.
We have reviewed the Company's request for
authorization to issue securities and, after such investigation
and consideration, are satisfied that the granting of the
Petition is in the public good.
Based upon the foregoing, it is hereby
ORDERED NISI, that Concord Electric Company is hereby
authorized, pursuant to RSA 369, to issue and sell $10,000,000 of
First Mortgage Bonds, Series J, at an interest rate not to exceed
6.96%, for a term not to exceed 30 years, such Bonds to be sold
to Allstate Insurance Company under a Supplemental Indenture to
the Company's existing Indenture of Mortgage and Deed of Trust;
and it is
FURTHER ORDERED, that CECo is authorized to mortgage
its present and future property, tangible and intangible,
including franchises, as security for the Bonds to be issued; and
it is
FURTHER ORDERED, that the proceeds from the sale of
said Bonds and from the capital contribution from Unitil
Corporation be used solely for the purposes described in this
Order; and it is
FURTHER ORDERED, that the Company is authorized to
recover as a portion of the cost of this new financing the costs
associated with the redemption of the First Mortgage Bonds,
Series H, and the remaining unamortized debt expense related to
that issue; and it is
FURTHER ORDERED, that on January 1 and July 1 of each
year the Company shall file with this Commission a detailed
statement, duly sworn by its Treasurer, showing the disposition
of the proceeds of its financing activities until the whole of
such proceeds have been fully accounted for; and it is
FURTHER ORDERED, that pursuant to N.H. Admin. Rules,
Puc 1604.03 or Puc 1605.03, the Petitioner shall cause a copy of
this Order Nisi to be published once in a statewide newspaper of
general circulation or of circulation in those portions of the
state where operations are conducted, such publication to be no
later than July 31, 1998 and to be documented by affidavit filed
with this office on or before August 7, 1998; and it is
FURTHER ORDERED, that all persons interested in
responding to this petition be notified that they may submit
their comments or file a written request for a hearing on this
matter before the Commission no later than August 14, 1998; and
it is
FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so no
later than August 21, 1998; and it is
FURTHER ORDERED, that this Order Nisi shall be
effective August 24, 1998, unless the Commission provides
otherwise in a supplemental order issued prior to the effective
date.
By order of the Public Utilities Commission of New
Hampshire this twenty-fourth day of July, 1998.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary