20030422Letter to Columbine re addl info.pdf

IDAHO Dirk Kempthome,GovemorPUBLICUTILITIES
commission P.O.Box 83720,Boise,Idaho 83720-0074
Paul Kjellander,President
April 22,2003 Marsha H.Smith,CommissionerDennisS.Hansen,Commissioner
Conley Ward
Givens Pursley LLP
277 North 6th Street,Suite 200
PO Box 2720
Boise,ID 83701
Allen Hoopes
Columbine TelephoneCompany,Inc.
PO Box 226
Freedom,WY 83120
Re:Case No.COL-T-03-1
Applicationof Columbine Telephone Company for authorityto execute a Loan
Agreement in the amount not to exceed $8,400,000 with the Rural Telephone
Finance Cooperative (RFTC)
Dear Mr.Ward and Mr.Hoopes:
The Idaho Public Utilities Commission Staff is evaluating the Company's letter and
Application received April 16,2003 in reference to Columbine Telephone Company's
Application for loan approval.To facilitate this review,Staff requests that the Company provide
the followinginformationas it becomes available but no later than Tuesday April 30,2003.
1.What is the utility purpose for this loan?
2.Please provide a copy of the loan application with RTFC.
3.Please provide any and all correspondence with RTFC pertaining to this loan.
4.What specifically are the plans for the proceeds of the proposed loan other than
depositing it into the Investment ManagementAccount?
5.What is the purpose of the Investment ManagementAccount;how will the funds
deposited in the account be used?If they will be spent,for what purpose will they be
spent?
Located at 472 West Washington Street,Boise,Idaho 83702
Telephone:[phone] Facsimile:[phone]
Conley Ward
Allen HoopesApril22,2003
Page 2
6.Please provide a schedule showing how the loan will be used to partially fund the life
insurance premiums on Mel Hoopes'life;please show a breakdown by year and premium
payment.
7.What assurances can you offer that this loan will not be reflected in future ratemaking
proceedings if it is determined that the main purpose of this loan is for personal estate
planning purposes and not reasonable utility purposes?
Review of the above requested documents may require additional written or verbal
inquiries.Confidential information may be submitted on yellowpaper to maintain
confidentiality.If you have questions,please contact me ([e-mail])at (208)334-
0360.Thank you for your cooperation and assistance.
Kathy Stockton
Senior Auditor
U:\kstockt\COL-T-03-01 audit request letter.doc