Extension of Time for Issuance of Securities and Other Forms of Indebtedness
NY-ADR
12/31/19 N.Y. St. Reg. PSC-53-19-00008-P
NEW YORK STATE REGISTER
VOLUME XLI, ISSUE 53
December 31, 2019
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-53-19-00008-P
Extension of Time for Issuance of Securities and Other Forms of Indebtedness
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
The Commission is considering a petition by Niagara Mohawk Power Corporation d/b/a National Grid requesting a twelve month extension of the authority to issue up to $2.07 billion of new long-term debt securities.
Statutory authority:
Public Service Law, section 69
Subject:
Extension of time for issuance of securities and other forms of indebtedness.
Purpose:
To consider an additional twelve months for the issuance of securities and other forms of indebtedness.
Substance of proposed rule:
The Commission is considering a petition filed on December 6, 2019 by Niagara Mohawk Power Corporation d/b/a National Grid (Niagara Mohawk) requesting a twelve month extension of the authority granted in an Order, dated May 19, 2016 and filed in Case 15-M-0509 (2016 Financing Order), to issue up to $2.07 billion of new long-term debt securities until March 31, 2021.
The 2016 Financing Order authorized Niagara Mohawk to issue up to $2.07 billion of long-term debt comprised of up to $1.94 billion of new long-term debt and up to $429.5 million of debt to refinance existing auction rate debt. Niagara Mohawk has utilized approximately $924 million of the financing authorization provided under the order through a new long-term issuance of $500 million and refinancing of $424 million. Thus, Niagara Mohawk has approximately $1.15 billion of authority available to it to issue long term securities under the 2016 Financing Order.
Niagara Mohawk projects that it will be more beneficial for it to issue new long-term debt in the second half of calendar year 2020. Niagara Mohawk also asserts that an extension of its financing authority will provide more time to assess market conditions and identify the optimal time to issue new long-term debt. However, the 2016 Financing Order authorizes the Company to issue this debt only until March 31, 2020. Therefore, the Company seeks authority from the Commission to issue the previously authorized $2.07 billion of new long-term debt securities until March 31, 2021.
The full text of the petition and the full record of the proceeding may be viewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject, or modify, in whole or in part, the action proposed and may resolve related matters.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Michelle L. Phillips, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]
Public comment will be received until:
60 days after publication of this notice.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(15-M-0509SP2)
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