Section 1. In General. - A distribution utility shall secure the Commission’s authorization for issuance of stock certificates representing an increase of capital; for issuance of any share of stock without par value; or issuance of any bond or other evidence of indebtedness payable in more than one year from the issuance thereof. It shall also secure the Commission’s approval to the sale, alienation, mortgage, encumbrance, or lease of its property, franchises, certificates, privileges, or rights or any part thereof; merger or consolidation of its property, franchises, certificates, privileges, or rights or any part thereof, with those of another utility.
Section 2. Supporting Documents. - Applications under Section 1 shall be accompanied by the following documents and information insofar as they are applicable:
(a) Latest Audited balance Sheet and Profit and Loss Statement;
(b) Letter of approval of lending institution from where the loan is to be secured;
(c) List of projects and/or items of equipment and their estimated cost to which the proceeds of the loan will be utilized;
(d) List of properties to be mortgaged (with specifications);
(e) Details or specifications of the equipment/projects to be purchased; and
(f) Basis/Reasonableness of the estimated cost per project/equipment.
Section 3. Applications for Issuance of any Bond or Other Evidence of Indebtedness Payable in More Than One Year To Fund Electric Capital Projects. - If the issuance of bonds or other evidence of indebtedness payable in more than one year from issuance is for the purpose of funding the distribution utility’s electric capital projects, the application for authorization therefor and for the mortgage or encumbrance of property to secure such indebtedness, if such is the case, shall be joined with the application for approval of said electric capital projects to be filed under Rule 20 (C).
Section 4. Issuance of Provisional Authority. - Upon filing of the application under Section 1, the Commission may, on its own or upon motion, grant the issuance of a Provisional Authority (PA) based on the allegations of the application and on such other documents attached thereto or submitted by the parties. The Commission, if necessary, may schedule a hearing for the issuance of a PA not later than thirty (30) days from the filing of the application. Thereafter, the Commission shall issue a ruling either granting or denying the PA stating clearly the reasons therefor, within seventy five (75) days from the filing of the application.
Section 5. Decision. - Any application under Section 1 shall be decided by the Commission within ninety (90) days from the time the applicant formally offers its evidence; otherwise, the application shall be deemed approved upon the lapse of said period.