Securities and Liens

(a)Subject to the exception contained in paragraph (h) of this rule, a utility which either derives more than five percent of its consolidated gross revenues in Colorado as a public utility or derives a lesser percentage if its revenues are earned by supplying an amount of energy which equals five percent or more of Colorado's consumption shall file an application for Commission approval of any proposal to issue or to assume any security or to create a lien.#

(b)An application for the issuance or assumption of securities with a maturity of 12 months or more or to create a lien shall include, in the following order and specifically identified, the following information, either in the application or in appropriately identified attachments:#

(I)all information required in paragraphs 4002(b) and 4002(c);#

(II)the resolution of the applying utility's board of directors approving the issuance, or assumption of the securities or to create a lien, together with, as applicable and available, the proposed indenture requirements, the mortgage note, the amendment to the loan contract, and the contract for sale of securities or creation of a lien;#

(III)a statement describing each short-term and long-term indebtedness outstanding on the date of the most recent balance sheet;#

(IV)a statement describing the classes and amounts of capital stock authorized by the articles of incorporation and the amount by each class of capital stock outstanding on the date of the most recent balance sheet;#

(V)a statement of capital structure showing common equity, long-term debt, preferred stock, if any, and pro forma capital structure on the date of the most recent balance sheet giving effect to the issuance of the proposed securities. Debt and equity percentages to total capitalization, actual and pro forma, shall be shown;#

(VI)a statement of the amount and rate of dividends declared and paid, or the amount and year of capital credits assigned and capital credits refunded, during the previous four calendar years including the present year to the date of the most recent balance sheet;#

(VII)a statement describing the type and amount of securities to be issued; the anticipated interest rate or dividend rate; the redemption or sinking fund provisions, if any; and, within ten days of their filing with the Securities and Exchange Commission, the registration statement, related forms, and preliminary prospectus filed with the Securities and Exchange Commission relating to the proposed issuance;#

(VIII)a statement of proposed uses, including construction, to which the funds will be or have been applied and a concise statement of the need for the funds; and#

(IX)a statement of the estimated cost of financing.#

(c)For applications for the creation of a lien on the applying utility's property situated within the State of Colorado where the creation of the lien is not related to the issuance or assumption of a security, the application shall also include, in the following order and specifically identified, the following information, either in the application or in appropriately identified attachments:#

(I)a description of the property which will be subject to the lien;#

(II)the amount of the lien;#

(III)the proposed use of the funds to be received from the lien;#

(IV)the estimated cost for the creation of the lien;#

(V)the anticipated duration of the lien;#

(VI)the anticipated release date of the lien;#

(VII)the retirement payment plan to release the lien;#

(VIII)a description of how the applying utility will ensure that neither the creation of the lien nor the use of the proceeds will violate § 40-3-114, C.R.S.;#

(IX)a statement that, for the duration of the lien, the applying utility will advise the Commission within ten days of any bankruptcy, foreclosure, or liquidation proceeding; and#

(X)a statement that the applying utility will advise the Commission within ten days of any deviation from its lien retirement payment plan;#

(d)The Commission shall issue notice of the application, which shall set a ten-day intervention period and a hearing date.#

(e)Customer notice. Within three days after the filing of an application to issue or to assume a security, the applying utility shall publish notice of the filing of the application in a newspaper of general circulation. The notice shall include, in addition to the information required by subparagraphs 4002(d)(I) - (XII), the address of the applicant.#

(f)The applying utility shall file with the Commission the published notice and an affidavit of publication as soon as possible after the filing of the application. The Commission shall not grant the application without the notice and the affidavit of publication.#

(g)The Commission shall give priority to an application made pursuant to this rule and shall grant or deny the application within 30 days after filing, unless the Commission, for good cause shown, enters an order granting an extension and stating fully the facts necessitating the extension. The Commission shall approve or disapprove an application made pursuant to this rule by written order.#

(h)Pursuant to § 40-1-104, C.R.S., a utility may issue, renew, extend or assume liability on securities, other than stocks, with a maturity date of not more than 12 months after the date of issuance, whether secured or unsecured, without application to or order of the Commission provided that no such securities so issued shall be refunded, in whole or in part, by any issue of securities having a maturity of more than 12 months except on application to and approval of the Commission.#

(i)Any security requiring Commission approval, but issued or assumed without such approval, shall be void.#