28652.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
CAMBRIDGE TELEPHONE COMPANY FOR AUTHORITY TO BORROW $653,000 FROM THE RURAL UTILITIES SERVICE (RUS) )
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CASE NO. CAM-T-01-1

ORDER NO. 28652

On February 13, 2001, Cambridge Telephone Company (Cambridge), filed an Application pursuant to Chapter 9, Title 61, of the Idaho Code and Rules 141-150 of the Commission's Rules of Procedure (IDAPA 31.01.01.141-150), requesting authority to borrow up to $653,000 from the Rural Utilities Service (RUS). Cambridge Telephone’s service area includes Cambridge, Cuprum, Indian Valley, Lowman and Council. In this Order we approve the Application as conditioned below.
THE APPLICATION
In its Application Cambridge proposes to borrow $653,000 from the RUS. This amount is what remains unadvanced from the $931,000 that the Commission originally authorized Cambridge to borrow in 1985. According to the Application, Cambridge intends to use these funds to replace the microwave system that serves the Lowman area and upgrade service to the Goodrich area via construction of two fiber optic systems to replace the existing microwave system.
Cambridge advises that it will request advances from RUS on an ongoing basis as project work orders are completed. Furthermore, Cambridge intends to request an immediate advance of approximately $225,000 to satisfy the replacement costs of Lowman’s microwave system. The Application also requests that the condition in Commission Order No. 20127 requiring specific approval of each advance be rescinded.
According to the terms of the RUS loan, the funds may be issued at various times as the projects are completed and receive final RUS approval. The annual interest rate for each issue will be at 5%. RUS has set the final maturity date for these funds at November 18, 2020.
COMMISSION FINDINGS
Cambridge is a telephone corporation within the definition of Idaho Code § 61121 and is a public utility within the definition of Idaho Code § 61129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the provisions of Idaho Code § 61901 et seq., and the Application reasonably conforms to Rules 141-150 of the Commission’s Rules of Procedure, IDAPA 31.01.01-141-150.
The general purposes to which the funds will be put are lawful purposes under the Public Utility 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 of Cambridge which may be benefited by the approval of this Application has been considered or approved by this Order, and this Order shall not be construed to that effect.
Cambridge need not seek future Commission approval to construct or improve telephone plant with loan proceeds as previously required in Commission Order No. 20127. The Commission can keep abreast of construction developments if Cambridge files a copy of the documentation it files with and receives from RUS supporting draw amounts and project details. However, this limited oversight does not guarantee that the costs of such projects will be automatically recovered in the next rate case.
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.
Cambridge has paid the fees required by Idaho Code § 61-905.
The Commission finds that this Application should be approved as conditioned by the reporting requirements set out below.

O R D E R
IT IS THEREFORE ORDERED that Cambridge Telephone Company’s Application for authority to borrow $653,000 from the Rural Utilities Service (RUS) be, and the same is hereby granted as conditioned 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, 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 9, 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 pay or guarantee in any manner whatsoever any funds authorized under the provisions of Chapter 9, Title 61, Idaho Code.
IT IS FURTHER ORDERED that the portion of Commission Order No. 20127 requiring specific approval of each advance be rescinded. Henceforth, Cambridge shall file with the Commission a copy of all documentation it files and receives from the RUS supporting the draw amounts and project details.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance of Cambridge’s exhibits or other material accompanying the Application 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. CAM-T-01-1 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. CAM-T-01-1. 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.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this day of February 2001.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean Jewell
Commission Secretary

O:CAMT011_ln
Order No. 20127 (Case No. U-1017-23).

The Rural Utilities Service (RUS) was known as the Rural Electrification Administration in 1985.

ORDER NO. 28652 1

Office of the Secretary
Service Date
February 26, 2001