Public Utilities Act – Section 101
Application
AltaLink Management Ltd. (“AML”), in its capacity as the general partner of AltaLink, L.P., (“ALP”), filed a debt issuance application requesting authorization to cause ALP to offer, issue, and sell medium-term notes or other debt securities in the aggregate principal amount of up to $300 million (the “Debt Securities”) prior to December 31, 2022.
Decision
The AUC found that AML has complied with the requirements of s. 101(2)(a)(ii) of the Public Utilities Act (“PUA”) and that AML has a suitable justification to pledge assets as security to the planned debt issuance in accordance with s. 101(2)(d)(i) of the PUA. Accordingly, the AUC approved AML’s 2022 debt issuance application as filed.
Applicable Legislation
AUC Rule 031: Condition Exemption from Specific Financing and Reporting Requirements – ss. 3 and 3.4.
Public Utilities Act, RSA 2000, c P-45 – ss. 101(2), 101(2)(a)(ii), and 101(2)(d)(i).
National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations of the Canadian Securities Administrators
Pertinent Issues
AML submitted that continuing to fund long-lived assets, with the long-term debt securities that diversify the maturity profile of such securities over the expected life of such assets, is in the best interests of the ratepayers. The AUC found this rationale for issuance of secured debt reasonable. The credit rating information provided by AML was satisfactory for the purposes of the application. This information provides reasonable assurance that the proposed issuance of the debt securities would not have a material adverse effect on the cost of other debt recovered through AML’s revenue requirement.
