BRIT ISH COL UMBIA UTIL IT IES COM MISSION O RDER NUMBER G ‐6‐09 SIXTH FLOOR, 900 HOWE STREET, BOX 250 TELEPHONE: (604) 660‐4700 VANCOUVER, B.C. V6Z 2N3 CANADA BC TOLL FREE: 1‐800‐663‐1385 web site: http://www.bcuc.com FACSIMILE: (604) 660‐1102 IN THE MATTER OF the Utilities Commission Act, R.S.B.C. 1996, Chapter 473 and An Application by Central Heat Distribution Limited for Approval of Long‐Term Debt Financing BEFORE: L.F. Kelsey, Commissioner D.A. Cote, Commissioner January 29, 2009 R.K. Ravelli, Commissioner O R D E R WHEREAS: A. On January 26, 2009 Central Heat Distribution Limited (“Central Heat”) pursuant to section 50(2) of the Utilities Commission Act (the “Act”) applied to the British Columbia Utilities Commission (“Commission”) for approval to fix the terms of: ‐ $5 million of long‐term debt for a term of five years at an estimated interest rate of 4.15 percent locked in by way of a Financial Swap with a start date of April 30, 2009; and ‐ $5 million of long‐term debt for a term of ten years at an estimated interest rate of 4.50 percent locked in by way of a Financial Swap with a start date of January 30, 2009 (the “Application”); and B. On January 28, 2009 Central Heat responded to Commission staff requests to justify the proposed estimated interest rates in the Application; and C. The Commission has reviewed the Application, together with the supporting information. NOW THEREFORE pursuant to section 50(2) of the Act, the Commission orders as follows: 1. The Commission approves for Central Heat the fixing of $5 million of debt with the Royal Bank of Canada for a term of five years at an estimated interest rate of 4.15 percent and at a rate of no more than 25 basis points wider than the terms in the Application with a start date of April 30, 2009. Should the actual interest rate exceed the maximum 25 basis points, Central Heat will be required to re‐apply for approval by the Commission. . . . /2
2 2. The Commission approves for Central Heat the fixing of $5 million of debt with the Royal Bank of Canada for a term of ten years at an estimated interest rate of 4.50 percent and a rate of no more than 25 basis points wider than the terms in the Application with a start date of January 30, 2009. Should the actual interest rate exceed the maximum 25 basis points, Central Heat will be required to re‐apply for approval by the Commission. 3. Central Heat will inform the Commission when the estimated interest rate for each debt issue will be adjusted for market rate fluctuations at the debt financing draw down date for each debt issue. DATED at the City of Vancouver, in the Province of British Columbia, this 29 ORDERS/G‐6‐09_CHDL_Long‐Term Debt Financing BRIT ISH COLUMBIA UTIL IT IES COMMISSION ORDER NUMBER G‐6‐09 th day of January 2009. BY ORDER Original signed by: D.A. Cote Commissioner
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