LETTER NO. L-28-02 ROBERT J. PELLATT SIXTH FLOOR, 900 HOWE STREET, BOX 250 COMMISSION SECRETARY VANCOUVER, B.C. CANADA V6Z 2N3 Commission.Secretary@bcuc.com TELEPHONE: (604) 660-4700 web site: http://www.bcuc.com BC TOLL FREE: 1-800-663-1385 FACSIMILE: (604) 660-1102 Log No. 1275, 1321 VIA FACSIMILE June 28, 2002 Mr. Chuck Lee Vice President, Regulatory Affairs Aquila Networks Canada (Alberta) Ltd. #700, 801-7 th Avenue SW Calgary, Alberta. T2G 3P7 Dear Mr. Lee: Re: Aquila Networks Canada (British Columbia) Ltd. (“Aquila”) _________________Series J Debentures___________________ This will acknowledge receipt of your June 17, 2002 letter applying to the Commission for approval in principle to issue a new series of debentures identified as Series J. The issue will be for $50 million at an interest rate not to exceed 7.2 percent, for a term of seven years, and will be used to reduce floating rate debt and bank lines of credit. The Commission has reviewed your application and gives its approval in principle for the proposed financing transaction, pursuant to Section 50 of the Utilities Commission Act. Following final approval by the Board of Directors, and upon application, the Commission will issue an Order based on the terms outlined in the June 17, 2002 application. The application also requests that the Commission rescind the section of Commission Order No. G-31-87 that directs Aquila Inc. to provide financial support to Aquila. However, the conditions imposed in that Order were the subject of a public hearing on the UtiliCorp application to purchase West Kootenay Power and Light Company, Limited. The conditions were an integral part of the Decision and approval of the Application was based in part on the protection of the public interest which they provide. The Commission is unwilling to lift the requirement at this time and believes that this issue should be raised at the next Aquila revenue requirements proceeding. Yours truly, Original signed by: Robert J. Pellatt BMK/rt cc: Mr. George Isherwood Manager, Rates and Contracts Administration Aquila Networks Canada (British Columbia) Ltd. Aquila/Cor/Series J
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