20031110Final Order No 29378.pdf

Office of the Secretary
Service Date
November 10 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
ALBION TELEPHONE COMPANY FOR
AUTHORITY TO BORROW UP TO $~5 OOO,OOO
FROM THE RURAL TELEPHONE UTILITIES
SERVICE (RUS).
ORDER NO. 29378
CASE NO. ALB-O2-
On June 20, 2002, the Commission conditionally granted Albion Telephone
Company s (Albion) Application for Loan Approval requesting authority to execute a loan
contract amendment and supplemental mortgage with the Rural Telephone Utilities Service
(RUS) in an amount not to exceed $15 000 000. Order No. 29058. On October 27, 2003 , the
Commission received a request from Albion to clarify the terms of Order No. 29058.
REQUEST FOR CLARIFICATION
According to Albion s request for clarification, the RUS sent Albion a loan
verification letter dated October 21, 2003 for a $7 500 000 RUS hardship loan and concurrent
loans in the amounts of $4 046 000 from the RUS and $2 355 150 from the Rural Telephone
Bank (RTB). The aggregate loan amounts of$13 901 150 are within its existing authority under
Order No. 29058 but the Rural Telephone Bank loan was not anticipated at the time of the
original Application and Order. Thus, Order No. 29058 needs to be amended to allow issuance
of debt by the Rural Telephone Bank along with the Rural Telephone Utilities Service. The
other terms and conditions approved in Order No. 29058 will not be changed.
FINDINGS OF FACT
AND
CONCLUSIONS OF LAW
Albion is a telephone corporation within the definition of Idaho Code ~ 61-121 and is a
public utility within the definition of Idaho Code ~ 61-129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the
provisions of Idaho Code ~ 61-901 et seq.and the request for clarification reasonably conforms to
Rules 325 of the Commission s Rules of Procedure, IDAPA 31.01.01.325.
After examining Albion s request and supporting documents, the Commission finds
that a hearing in this matter is not required, and that the proposed transaction is consistent with the
public interest and Albion s proper performance of its duties as a public utility.
ORDER NO. 29378
The general purposes to which the funds will be put are lawful purposes under the
Public Utilities Law of the State of Idaho and are compatible with the public interest. However
this general approval of the general purposes to which the funds will be put is neither a finding of
fact nor a conclusion of law that any particular construction program from which Albion may
benefit by the approval of this clarification request has been considered or approved by this Order
and this Order shall not be construed to that effect.
The issuance of an Order authorizing the borrowing of funds does not constitute
agency determination/approval of the type of financing or the related costs for ratemaking
purposes, which determination the Commission expressly reserves until the appropriate
proceeding.
So that the Commission can keep abreast of loan developments, this Order
conditioned upon Albion meeting the following reporting requirements. The Company shall
provide:1) copies of the RUS and RTB final loan approvals including documentation for
advances; 2) a copy of any executed collateral documentation; 3) copies of all annual
certification, covenant reports, and letters regarding these determinations; and 4) the "Report of
Securities Issued." However, this limited oversight does not guarantee that the costs of such
projects will be automatically recovered in the next rate case. To the extent that these loan funds
are used for non-regulated services, any adjustments associated with non-regulated costs will
occur in future rate cases.
Albion has paid the fees required by Idaho Code ~ 61-905.
Pursuant to Idaho Code ~ 61-624 and Procedural Rule 326, the Commission finds that
Albion s request for clarification should be granted and conditioned by the reporting
requirements set out below. IDAP A 31.01.01.326.
ORDER
IT IS THEREFORE ORDERED that Albion Telephone Company s request for
clarification of Order No. 29058 is granted.
IT IS FURTHER ORDERED that Albion may execute the loan documents with the
Rural Telephone Utilities Service and Rural Telephone Bank presented with its clarification
request and described above.
IT IS FURTHER ORDERED that this authorization is without prejudice to the
regulatory authority of this Commission with respect to rates, service, accounts, valuation
ORDER NO. 29378
estimates, or determination of costs, or any other matter that may come before this Commission
pursuant to this jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provision of Chapter
, Title 61 Idaho Code or any act or deed done or performed in connection with this Order shall
be construed to obligate the State of Idaho to payor guarantee in any manner whatsoever any
funds authorized under the provisions of Chapter 9, Title 61 Idaho Code.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance
of Albion s exhibits or other material accompanying the original Application or request for
clarification for any purpose other than the issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory orders previously issued in this Case No. ALB- T -02-
may petition for reconsideration within twenty-one (21) days of the service date of this Order with
regard to any matter decided in this Order or in interlocutory orders previously issued in this Case
No. ALB- T -02-2. Within seven (7) days after any person has petitioned for reconsideration, any
other person may cross-petition for reconsideration in response to issues raised in the petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 29378
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this IO-fk
day of November 2003.
PAUL KJ L ER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Commission Secretary
O:ALBT0202 In
ORDER NO. 29378