20230711Final_Order_No_35851.pdf

ORDER NO. 35851 1

Office of the Secretary
Service Date
July 11, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF COLUMBINE
TELEPHONE COMPANY, INC.’S
APPLICATION FOR AUTHORITY TO
GUARANTY LOANS IN AN AMOUNT
NOT TO EXCEED $64,777,106
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CASE NO. COL-T-23-01

ORDER NO. 35851

On June 14, 2023, Columbine Telephone Company, Inc., (“Columbine” or “Company”)
applied to the Idaho Public Utilities Commission (“Commission”) under Idaho Code §§ 61-901,
et seq., for authority to guaranty loans in an amount not to exceed $64,777,106, in favor of the
Rural Telephone Finance Cooperative (“RTFC”). Application at 1.
Pursuant to Idaho Code § 61-904, the Commission has 30 days from the filing date to issue
an order. After reviewing the record, the Commission approves the Application as discussed
below.
APPLICATION
The Company represented the securities will be used to guarantee payment to the
Company’s parent company, Horizon Communications, Inc., and consists of four separate debt
facilities: $8,000,000 for Note A; $18,054,742 for Note B; $23,722,364 for Note C; and
$15,000,000 for Note D. Application at 1. The guarantee for Note A, Note B and Note D is
unsecured. The guarantee for Note C will be secured by a Restated Mortgage and Security
Agreement. Id. The loans will be used to finance capital expenditures, a fiber-to-the-home project
in Rexburg, Idaho, for financing or refinancing the purchase of telecommunications network assets
in Ada County, Idaho, and to improve the quality and reliability of service. Id. at 2. Of the loans,
Notes C and D are for plant in Idaho.
STAFF REVIEW AND RECOMMENDATION
Staff analyzed the Application, the requested authority, and the requirements of Idaho
Code § 61-901, et seq., and Rule 141 of the Commission’s Rules of Procedure. Staff recommended
the Commission approve the Company’s request. Staff recommended the Company be authorized
to provide a guaranty for the loan for $64,777,106, and file copies of all agreement terms when
they become available.

ORDER NO. 35851 2
FINDINGS AND DISCUSSION
The Company is a public utility that operates as a telecommunications corporation that
provides local exchange service within Idaho. Idaho Code §§ 61-129, 62-603(13) and (14). The
Commission has jurisdiction over the Application under Idaho Code §§ 61-901, et seq.
After reviewing the Application and all submitted material, we find that the proposed
transaction is in the public interest and a formal hearing on this matter is not required. Further, we
find that the proposed issuance is for a lawful purpose and is within the Company’s corporate
powers, that the Application reasonably conforms to Rules 141 through 150 of the Commission’s
Rules of Procedure, and that the Company has paid all fees due under Idaho Code § 61-905.1
Accordingly, we approve the Application and the proposed financing.
The Commission’s Order approving the proposed sale of unsecured notes and the general
purposes to which the proceeds may be put is not a determination that the Commission approves
of the particular use to which these funds will be put. This Order also is not a Commission
determination or approval of the type of financing or the related costs of the effect of the proposed
transaction on rates the Company will charge for telecommunication service.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for authority to guarantee
four separate debt facilities, totaling $64,777,106, is granted. The debt facilities are for $8,000,000;
$18,054,742; $23,722,364; and 15,000,000, respectively.
IT IS FURTHER ORDERED that the Company shall file loan documents showing the
amount borrowed and loan terms within seven (7) days of those loan documents becoming
available.
IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to the
regulatory authority of the Commission with respect to rates, utility capital structure, service
accounts, valuation, estimates for determination of cost or any other matter which may come before
this Commission pursuant to its jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provisions of Chapter 9, Title
61, Idaho Code, or any act or deed done or performed in connection therewith shall be construed to
obligate the State of Idaho to pay or guarantee in any manner whatsoever any security authorized,
issued, assumed, or guaranteed under the provisions of Chapter 9, Title 61, Idaho Code.

1 The Company submitted proof it published notice of its Application on July 3, 2023, with the Idaho Statesman.
ORDER NO. 35851 3
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance of
the Company’s exhibits or other materials accompanying the Application for any purpose other than
the issuance of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 11th day of
July 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND, JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

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