[Federal Register Volume 62, Number 114 (Friday, June 13, 1997)]
[Notices]
[Pages 32389-32390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15660]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26726]
Filing Under the Public Utility Holding Company Act of 1935, as
Amended (``Act'')
June 10, 1997.
Notice is hereby given that the following filing(s) has/have been
made with the Commission pursuant to provisions of the Act and rules
promulgated thereunder. All interested persons are referred to the
application(s) and/or declaration(s) for complete statements of the
proposed transaction(s) summarized below. The application(s) and/or
declaration(s) and any amendments thereto is/are available for public
inspection through the Commission's Office of Public Reference.
Interested persons wishing to comment or request a hearing on the
application(s) and/or declaration(s) should submit their views in
writing by June 27, 1997, to the Secretary, Securities and Exchange
Commission, Washington, D.C. 20549, and serve a copy on the relevant
applicant(s) and/or declarant(s) at the address(es) specified below.
Proof of service (b) affidavit or, in case of an attorney at law, by
certificate) should be filed with the request. Any request for hearing
shall identify specifically the issues of fact or law that are
disputed. A person who so requests will be notified of any hearing, if
ordered, and will receive a copy of any notice or order issued in the
matter. After said date, the application(s) and/or declaration(s), as
filed or as amended, may be granted and/or permitted to become
effective.
Unitil Corporation et al. (70-9053)
Unitil Corporation (``Unitil''), a registered holding company under
the Act, and its subsidiary companies, Concord Electric Company, Exeter
& Hampton Electric Company, Fitchburg Gas and Electric Light Company
(``Fitchburg''), Unitil Power Corp., Unitil Realty Corp., Unitil
Resources, Inc. and Unitil Service Corp. (``Unitil Service'')
(collectively, the ``Subsidiaries''), all at 6 Liberty Lane West,
Hampton, New Hampshire 03842, have filed an application-declaration
under sections 6(a), 7, 9(a), 10 and 12(b) of the Act and rules 43 and
45 thereunder.
By order dated July 11, 1995 (HCAR No. 26328), the applicants were
authorized to make unsecured short-term borrowings and to operate a
system money pool (``Money Pool'') through June 30, 1997. UNITIL and
Fitchburg now request authority through June 30, 2000 to incur short-
term borrowings from banks. The aggregate amount of short-term
borrowings by UNITIL would not exceed $25 million. Also, Fitchburg
requests authority to incur short term borrowings from UNITIL and the
other Subsidiaries, and UNITIL and the other Subsidiaries request
authority to lend funds to Fitchburg under the UNITIL system money
pool, through June 30, 2000. Borrowings by Fitchburg under the system
money pool and its short-
[[Page 32390]]
term borrowings from banks would not exceed $12 million at any one time
outstanding.
At March 31, 1997, Unitil had three unsecured lines of credit
totalling $18 million. Unitil proposes to issue short-term notes
pursuant to these lines of credit and other formal and informal lines
of credit with lending institutions through June 30, 2000.
Unitil's existing and proposed borrowing arrangements will provide
for borrowings at ``base'' or ``prime'' rates publicly announced by a
bank as the rate charged on loans to its most creditworthy business
firms, and are subject to prepayment at Unitil's option. Borrowings may
also be made at ``money market'' rates (market-based rates that are
generally lower than base or prime rates, made available by banks on an
offering or ``when available'' basis), which may or may not be subject
to prepayment. Borrowings under the credit arrangements will mature not
more than nine months from the date of issue.
Unitil requests authority to secure both formal and informal credit
lines. Formal credit lines may be subject to compensating balances not
in excess of 5% of the amount of the committed credit line, and/or fee
requirements that will not exceed 50 basis points times the total line
of credit. Unitil expects to use the proceeds from the requested
borrowings for: (1) loans or advances to subsidiaries through the money
pool; (2) payment of outstanding indebtedness; (3) short-term cash
needs that may arise due to payment timing differences; and (4) other
general corporate purposes.
Any of the proposed short-term borrowings by Fitchburg from
commercial banks will be under terms and conditions similar to those of
the borrowing arrangements between Unitil and its commercial bank
lenders, described above. Fitchburg will use the proceeds from these
borrowings to meet working capital requirements, provide interim
financing for construction expenditures, and to meet debt and preferred
stock sinking fund requirements.
The applicants participate in the Unitil system money pool,
pursuant to a Pooling Agreement among Unitil and the Subsidiaries.
Under the Pooling Agreement, Unitil and the Subsidiaries invest their
surplus funds, and the Subsidiaries borrow funds, from the money pool.
Unitil Service administers the money pool on an ``at cost'' basis. The
purpose of the money pool is to provide the Subsidiaries with internal
and external funds and to invest surplus funds of Unitil and the
Subsidiaries in short-term money market instruments. The money pool
provides the Subsidiaries with lower short-term borrowing costs due to
elimination of banking fees; a mechanism to earn a higher return on
interest from surplus funds that are loaned to other Subsidiaries; and
decreased reliance on external funding sources. In connection with
continued use of the money pool, Fitchburg seeks approval to incur
borrowings from the other applicants, and the other applicants seek
approval to make loans to Fitchburg.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-15660 Filed 6-10-97; 4:39 pm]
BILLING CODE 8010-01-M
