Application

1  This special direction applies with respect to the exercise of the commission's powers and functions in connection with the British Columbia Hydro and Power Authority (the "authority").

 Debt support

2  The authority should generate in each fiscal year adequate funds from the efficient operation and conduct of its business to support all of its activities and debt.

 Economic borrowing

3  The authority should achieve a financial position that allows it to borrow funds on the most economic terms available.

 Financial standards

4  The financial standards to be observed by the authority should include interest coverage ratio and debt/equity ratio.

 Minimum standards

5  The authority should

(a) maintain an interest coverage ratio of 1.3:1 on natural gas service for the Lower Mainland and liquefied petroleum gas service for Vancouver Island South,

(b) improve its interest coverage ratio on electric service with reasonable consistency so as to achieve an interest coverage ratio of 1.3:1 on such service by the 1990/91 fiscal year, and

(c) maintain an interest coverage ratio of 1.3:1 after the 1990/91 fiscal year on the services referred to in paragraphs (a) and (b) so as to achieve and maintain a debt/equity ratio of 80:20.