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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Stauffer) |
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FROM: |
Division of Accounting and Finance (L. Smith, D. Buys, Cicchetti) Office of the General Counsel (Taylor) |
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RE: |
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AGENDA: |
10/03/17 – Consent Agenda – Final Action - Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
Administrative |
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SPECIAL INSTRUCTIONS: |
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Please place the following securities application on the consent agenda for approval.
Docket No. 20170195-EI – Application for authority to issue and sell securities for 12 months ending December 31, 2018, by Tampa Electric Company.
Tampa Electric Company (Tampa Electric or Company) seeks the authority to issue, sell and/or exchange equity securities and issue, sell, exchange and/or assume long-term or short-term debt securities and/or to assume liabilities or obligations as guarantor, endorser, or surety during calendar year 2018. The Company also seeks authority to enter into interest swaps or other derivatives instruments related to debt securities during calendar year 2018.
The amount of all equity and long-term debt securities issued, sold, exchanged, or assumed and liabilities and obligations assumed or guaranteed as guarantor, endorser, or surety will not exceed in the aggregate $1.6 billion during the year 2018, including any amounts issued to retire existing long-term debt securities. The maximum amount of short-term debt outstanding at any one time will be $1.3 billion during calendar year 2018. This application is for both Tampa Electric and its local gas distribution division, Peoples Gas System.
In connection with this application, the Company confirms that the capital raised pursuant to this application will be used in connection with the activities of the Company’s regulated electric and gas operations and not the unregulated activities of the utilities or their affiliates.
Staff has reviewed the Company’s projected capital expenditures. The amount requested by the Company ($2.9 billion) exceeds its expected capital expenditures ($1.223 billion). The additional amount requested exceeding the projected capital expenditures allows for financial flexibility with regards to unexpected events such as hurricanes, financial market disruptions, and other unforeseen circumstances. Staff believes the requested amounts are appropriate. Staff recommends Tampa Electric’s petition to issue securities be approved.
For monitoring purposes, this docket should remain open until April 30, 2019, to allow the Company time to file the required Consummation Report.