In addition to any other applicable requirements of this
rule, no Energy Distribution System Project will be approved unless the
following conditions are met:
A. In
the case of an energy distribution system project regulated by the Public
Utilities Commission with respect to rates or terms of service or that
requires, for construction or operation, authorization or certification from
the commission:
1 The energy distribution
system project has received all authorizations or certifications from the
Public Utilities Commission necessary for construction and operation of the
project. The authority may issue a certificate of approval for a project that
has received conditional approvals or certifications from the commission,
except that the authority's certificate becomes legally effective only upon
fulfillment of the conditional provisions of the commission's certificates or
approvals. If the commission has approved rates to be charged by the project or
has issued a certificate of public convenience and necessity for the project,
the authority shall take into consideration any findings and conclusions of law
of the commission, including any findings and conclusions pertaining to the
need for the project and the financial viability of the project; and
2 The authority has reviewed and considered
any comments provided by the Director of the Governor's Office of Energy
Independence and Security and the Public Advocate.
B. The Authority has determined that the
applicant is creditworthy and that there is a reasonable likelihood that the
revenue obligation securities will be repaid through the revenues of the
project and any other sources of revenues and collateral pledged to the
repayment of those securities. In order to make these determinations, the
authority shall consider such factors as it considers necessary and appropriate
in light of the special purpose or other nature of the business entity owning
the project and the specific purposes of the project to measure and evaluate
the project and the sufficiency of the pledged revenues to repay the
obligations, including, but not limited to:
1
Whether the individuals or entities obligated to repay the obligations have
demonstrated sufficient revenues from the project or from other sources to
repay the obligations and a reasonable probability that those revenues will
continue to be available for the term of the revenue obligation securities;
2 Whether the applicant
demonstrates a reasonable probability that the project will continue to operate
and provide the public benefits projected to be created for the term of the
revenue obligation securities;
3
Whether the applicant's creditworthiness is demonstrated by factors such as its
historical financial performance, management ability, plan for marketing its
product or service and ability to access conventional financing;
4 Whether the applicant meets or exceeds
industry average financial performance ratios commonly accepted in determining
creditworthiness in that industry;
5 Whether the applicant demonstrates that the
need for authority assistance is due to the reduced cost and increased
flexibility of the financing for the project that result from authority
assistance and not from an inability to obtain necessary financing without the
capital reserve fund security provided by the authority;
6 Whether collateral securing the repayment
obligation is reasonably sufficient under the circumstances;
7 Whether the proposed project enhances the
opportunities for economic development;
8 The effect that the proposed project
financing has on the authority's financial resources;
9 The financial performance of similar
projects;
10 The need for the project, as
determined by the Public Utilities Commission and as indicated by any comments
provided by the Director of the Governor's Office of Energy Independence and
Security, other public officials and members of the public;
11 The nature and extent of customer
commitment to use the project or the fuel or energy the project distributes or
transmits;
12 The cost advantages
to end users of the fuel or energy to be distributed or transmitted by the
project, to the extent those advantages may affect market penetration by the
project;
13 The nature and extent
of the applicant's equity contribution to payment of the costs of the project;
such a contribution may not be less than 25% of the expected cost of the
project; and
14 Whether it is
prudent for the authority to provide the requested financing.
C. Notwithstanding any
other provision of this Rule, the Board of Directors of the Authority must find
the conditions of this Section 10-A have been met.
