20030618Petition for Reconsideration.pdf

CONLEY WARD
GIVENS PURSLEY LLP
277 North 6th Street, Suite 200
P. O. Box 2720
Boise, ID 83701
[phone]
[phone] (fax)
Idaho State Bar # 1683
PECEIVED
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2003 '"'UN I 7 P~1 3: 2 I
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UTILlTltS ' CO1'II,iisSION
Attorneys for Columbine Telephone Company, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of Columbine
Telephone Company, Inc. d/b/a Teton Telecom
for Authority to Borrow from the Rural
Telephone Finance Cooperative ("RTFC") in
an Amount Not to Exceed $8 500 000
Case No. COL-03-
COLUMBINE TELEPHONE
COMPANY'S PETITION FOR
RECONSIDERATION OR
CLARIFICATION
Columbine Telephone Company, Inc. ("Columbine ), by and through its attorneys of
record, hereby files its Petition for Reconsideration or Clarification of Commission Order No.
29256 in the above-entitled case. In support whereof, Columbine states as follows:
1. Commission Order No. 29256 denied Columbine s application to borrow an amount
not to exceed $8 500 000 from the Rural Telephone Finance Cooperative on the
grounds that "it is not in the public interest to utilize utility assets or revenues as
collateral to satisfy what is essentially a loan for a private purpose." Order No. 29256
at 4.
2. Following the issuance of Order No. 29256, Columbine has renegotiated the terms of
the proposed loan with RTFC. As a result of these negotiations Columbine will not
be required to provide a mortgage or other security interest on its assets to support the
COLUMBINE TELEPHONE COMPANY'S PETITION FOR RECONSIDERATION OR
CLARIFICATION - 1
new loan. Instead, RTFC has agreed to accept a security interest in Columbine
stock as collateral for the proposed loan. 87% of Columbine s stock is owned by
Teton Communications, Inc., which is in turn owned by Hoopes Telephone
Management LP. The other 13% of Columbine s stock is held by Silver Star
Telephone Company.
3. Section 61-901 , Idaho Code, states that a utility s right "to issue mortgages, deeds of
trust or other instruments with respect to its property situated within the state of
Idaho" is subject to the Commission s jurisdiction and regulatory authority. It would
appear, therefore, that the renegotiated loan does not require Commission approval
because it is not secured by utility assets.
4. In the alternative, if the Commission nevertheless finds that it has jurisdiction over
the proposed RTFC loan, Columbine requests that the Commission reconsider and
revoke its finding that the loan is "not in the public interest" Because the
renegotiated loan will be secured solely by Columbine s equity ownership, it does not
place the utility s assets at risk and it has no potential adverse impacts on ratepayers.
WHEREFORE, Columbine respectfully requests that the Commission reconsider Order
No. 29256 and issue a new order finding that:
1. Commission approval of the renegotiated R TFC loan described herein is not required
, in the alternative
2. The renegotiated loan is not adverse to the public interest and is therefore approved.
COLUMBINE TELEPHONE COMPANY'S PETITION FOR RECONSIDERATION OR
CLARIFICATION - 2
RESPECTFULLY SUBMITTED this ih day of June 2003.
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Conley Ward
GIVENS PURSLEY LLP
Attorneys for Applicant
COLUMBINE TELEPHONE COMPANY'S PETITION FOR RECONSIDERATION OR
CLARIFICATION - 3
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 17th day of June 2003 I caused a true and
correct copy of the foregoing to be served upon:
Ms. Jean Jewell , Secretary
Idaho Public Utilities Commission
472 W. Washington Street
Boise, ID 83702
by hand delivering the same to the above-named at the last known addresses) as set forth
above.
COLUMBINE TELEPHONE COMPANY'S PETITION FOR RECONSIDERATION OR
CLARIFICATION - 4