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Home My WebLink About20030527Letter.pdfGIVE ~ S LEY 'LL P LAW OFFICES 277 North 6th Street, Suite 200 PO Box 2720, Boise, Idaho 83701 TELEPHONE: 208 388-1200 FACSIMILE: 208 388-1300 WEBSITE: www.givenspursley.com Gary G. Allen Christopher J. Beeson Jessica M. Borup William C. Cole Michael C. Creamer Emily MacMaster Durkee Thomas E. Dvorak Roy Lewis Eiguren Timothy P. Fearnside Jeffrey C. Fereday Steven J. Hippier Karl T. Klein Debora K. Kristensen Anne C. Kunkei Deborah E. Nelson l;;JS . .JO \,,, ,'" /' .",. !"'~'" "" ",1. \ ~'\ :7"-y "'~; c;;: ~; /,,~., , :i~l- .;,.). Direct Dial: (208) 388-1219 Mail: ccw((l)givensuUtslev.colU May 7 , 2003 VIA HAND DELIVER Y Mr. Terri Carlock Idaho Public Utilities Commission 472 W. Washington O. Box 83720 Boise, ill 83720-0074 Re: Our File: Direct Communications Rockland 1257- Dear Terri: Franklin G. Lee David R. Lombardi D. David Lorello, Jr. Kimberiy D. Maioney John M. Marshall Kenneth R. McCiure Kelly Greene McConnell Cynthia A. Melillo Christopher H. Meyer Kendall L. Milier L. Edward Miller Patrick J. Miller Judson B. Montgomery Angela K. Neison W. Hugh O'Riordan c::-'4 --; c~ fT1 :~: Cf) c::'U"; - - ~&! 'furr-: Michael C. Orr Kenneth L. Pursley Bradley V. Sneed H. Barton Thomas Conley E. Ward Robert B. White Raymond D. Givens James A. McClure Stephanie C. Westermeier OF COUNSEL John A. Miller, LL.M. . TAX CONSULTANT Co,"",' ;0 ","I",kyooly :x: :s:=- .....::....~" _;::::: i-r1 (")CJ~ ...:::,." .r::- This letter is a follow-up to our conversation last week about the Direct Communications Rockland loan. As you see from the attached documents, Rockland originally applied to Rural Utilities Service ("RUS") for a loan in the amount of $3 316 000. The Com ' sion approved a loan for that amount on October 24 2001 in Order No. 28880, Case N . DCM-01- 1. A copy of Order No. 28880 is attached for your convenience. Unfortunately, when the contemplated capital improvements were actually bid out, the central office improvements came in at almost $700 000 more than the loan design contemplated, as you can see from the attached loan budget and earlier documents. Consequently, RUS reworked the loan into two separate loans of $2 5 0 om RUS and $1,489 950 from the Rural Telephone Bank, for a new loan total 0 $4 050 950 ' This change did not come to our attention until we received the documents for the loan c osing, which must occur by May 30th to avoid the loan approval lapsing. Under these circumstances, it would appear that the Commission could best serve the public interest by amending its Order No. 28880, pursuant to Section 61-624, Idaho Code, to approve the two loans described above rather than the original $3 316 000 amount. I would very much appreciate it if Staff would bring this matter to the Commission s attention and, hopefully, support the requested amendment. Otherwise, Direct will have to go through the whole loan approval process again. Mr. Terri Carlock May 7, 2003 Page 2 If you have any questions or concerns, please give me a call. CEW /tns Enclosurecc: Leonard May S:\CLIENTS\1257\3I\CEW to Carlock re RUS loan.DOC United States Department of Agriculture Rural Development Rural Business-Cooperative Service' Rural Housing Service. Rural Utilities Service Washington , DC 20250 Mr, Leonard A, May President Direct Communications Rockland, Inc. O. Box 269 Rockland, Idaho 83271 SEP 2 7 2002 " . '~~",' ' ~:::c"~;' . . ' ;\:1 ':;"1~~!,~~~;~~i ;;at~i,~if!i: t ~~;;;;;;I;~~~~~i..~~:ilft;i\ik;;jh~~;~~~;f;~1iWii~j~~iWe are pleased to advise that a loan in the amount of$2 561 OOO from the Rural Utilities Service and a loan in the amount of $1 489 950 from the Rural Telephone Bank have been approved for your organization, The interest rate for each advance will be determined in accordance with our letter of September 26, 2002. Subsequent to our letter of September 26, 2002, we revised the Forecast of Revenues and Expenses" and a revised copy is enclosed. The loan contract and other documents will be forvvarded in the near future for execution. Thisloan is approved with the understanding that the loan contract will be authorized and executed by your organization and returned to us by the date, which will be set forth in the letter transmittingthd 4jt -' Ai;." ,I ,.-:. ",. ',..'/ /~ -1.t ,. , .'&t~.d; ((, i. -"' , "fI2.....~f.\ - '. .(?""" W;;;C"",p """tj . ;;' ;.P' i" ",I.- \. '-"" Ai' RrYf.... I , Director l--io~west Area m;;2't~;%g i~;ittiijli 1 ,S1~\) :fff)J:s 'ji1?;~q:gp;#11. Enclosure I-Ioml f.lowolopmllnlill IIn Equnl Opponunhy u.ndOI Cumplnln~1I 01 diner 1m III. lion .hDUI~ boo I.nllo:Bnorulnry 01 AorlculouIiI, WnllhlllDtoll, DC 20250 ..._--""'..-...........""'"""--"""...__.................-..-,_..._--.. . CORPORATE NAME AND ADDRESS DIRECT COMMUNICATIONS ROCKLAND, 11\ ROCKLAND, ill I~::o ~~:;~~~~::: Locai NetWork Service Revenues '" ..........................,....................................... Access, Long Distance Network; lmcJ:Garrier.Billing & Collection Revenu 3..:M:iscellaneous Revenues............. ....... ......... """ """ ...... ......................... ........~.. L........ Less Uncollectible Revenues...............................................,..........................;;.............n ~::=: :=:.;;;;;;;;:::::::::::::::::::::::::::~::::::::::::::::::::: ::::::i~;::::=::P~1t N onspecific Operatio~" ....., '~;~;:~;;~~;;;.::~:::.:::::::::::::;::~:;::;::::: ::::::;:~~~~ FORECAST ()F REVEWJES AND EXPENSES Customer Operations Expense...........................................,......................... .:...,.............. lf~~~E ~?~~:~:':~~::~~~'~~::~~~~:~~ : :~~:~::~::~~~:: ~~~:i~~~~~~' r5.NonqperE.tiI!gNeilrlc:onle'(e~pres~~4:~ith the opposite arithmetic sjgn).... ;!!~,.......;........ 16;Extraordinary 'Items............. .......... ..... ;............................ """""""""""'i ~~:~"":",,,,, 17. 12.Nom::~gu,lated N'et Income..............................................,.........,....... """"""~"""""""'" 19;'\t1p:t:iihE:xJ)ensEis, Excluding Federal Income Taxes.... .;,..............................+,,................. ~O;NetJ11come Before Fedcl"dllncome Taxe.s................................................... ~..,.............. 21.Fed!Jrallm::Olne Taxes,.........................................................., ..........,.,........ L~:: ;:................ 22.Net Income After Federal Income Taxes..................................................... ::':.................. 23 ,Add 1nt(\1'1:5t..............................................................................,.................. ;;..,.,..:........... ..i ~~~'~ ~~~ii~,.m ,..,., "'" ':~~~~., :":..':' ....'::: "' ";:':~""'." ""', . 27.ScheduJed Interest And Principal Payments...................................................................... 22.AvaJ1a:blt\ For Plant Additions. Replar.:ements, Etc;. .................................... :~................. 29,Times llltcrest Earned Ratio (Line 214 /Line 23)......................................... :;'::;.;.,............ Item 14 (itlter~..;t) OutstaI1dingLolln;I;lrilanccl~).......10 4.71 % $8,25QJR,o9iOO . Curr.el1tL(lati(S)...... .................. e~') 4.90% $4,O~B~!~~5(EOO "" 'toml0l1tsidc Fina!lcing...............t?j). 7 .03% $3,1~~;OgZ;OO "".. Ttltrilll1tert:Jst... :..............................................,....,..,...............,...,........;...;:.- Locnl 8cl'\'ice Rcvcnum; BlIBCd On Appmvt\d Rates . ..""",-""",,'..'.,... SUBSCRIBER FORECAST 732 $665 558 805 037 068 $4A85 663. $865 567 115 975 636;t73'" 247 122 694 878 158 686 812,307 267) (68 141) $4;455 999 $29 664 4,450 $25,214 812 307 ,:Ii,~i $837 521 63G,87iJ $2.474 394 9)8,080 3:536 314 $389 OB9 $198 450 3:22LI 768 3'.812 307 . USDA "... driii~d Ststeo Department of Agriculture Rural Development Aurat Business-Cooperative Service. Aural Housing Service' Aural Utilities Service Washington, DC 20250 SEP 2 6 2002 Mr. Leonard A, May President Direct Communications Rockland, Inc. O. Box 269 . Rockland, Idaho 83271 Deaio Mr. May: We have completed the preliminary studies of your organization s "D" loan application and are submitting the results of these studies for your consideration. They show that your organization qualifies for a hardship loan from the Rural Utilities Service (RUS), However, in accordance with 7 CFR 1735.30 (d), your application has an insufficient hardship point total to receive a hardship loan this quarter. Based on telephone conversations we had with Mr. Garin Bott, we understand that your organization has requested concun-ent loan funds so that your loan can be approved this Fiscal Year (FY) rather than wait to see if you would succeed in receiving a hardship loan next quarter. Accordingly, concurrent loans in the amount of$2 561 OOO made by the RUS and $1 489 950 made by the Rural Telephone Banlc (RTB) will be required. The concun-ent loan ratio between RUS and the RTB is based on the total amount of funds appropriated for Fiscal Year 2002 for RUS cost-or-money loans and RTB loans. Both loans will bear interest at the rate applicable to each advance oflmm funds based on the average yield on outstanding marketable obligations of the United States having a final maturity comparable to the final maturity oftheadvance. The RUS loan interest rate will be fIXed at the time of eacb advance. The interest rate on the RTB loal) advance will be an interim rate. A pennanent interest rate will be detennined on the RTB loan advance at the end of the fiscal year in which the advance. is made based on the RTB's cost-of- money rate for that fiscal year. Interest rates of 4.84 percent for the RUS loan and 5.00 percent for the RTB Joan were used in Ollr feasibility study. 11 should be understood that this letter is not a connnitment that a loan will be approved. Our studies show that $3 980 000 of the above funds will be needed to connect 367 new subscribefE; and provide for system improvements including placement of DVlDM SONET equipment at its fiber regeneration sites, the upgrade of central offices, placement of 10 DLC units throughout the Paris exchange al1d replacement of alJ air core cable. in the Paris exchange, In addition to fundG required for construction., the enclosed Preliminary Telephone Lmm Budget RUS F'om! 493, includes $70 950 for investment in RTB Class B Stock. The stock will be issued at the time of each RTB loan fund advance in an amount equaJ to 5 percent of such advill1ce for all other purposes. FURl r-"""",",,11it .u Ell"'" Oppor\un~~ u.......' ComtJlall1lu at tlllCllrnlrlillian .heuld b.t ""'" ro: s.c.'\WjI at AorI!:Ulwl~, WU'lingloh, CC 202l\Il r~' . ......,..._...-~- 1m. Leonard May Also enclosed is a copy of the "Forecast of Revenues and Expenses" for the proposed system. It isbased on the number of subscribers proposed to be served, existing local service rates without mileage or zone charges and other revenues and expenses outlined on the fonn. If loans are approved, no documents will be prepared until RUS receives written concurrence from the Rural Telephone Finance Cooperative that the new loans may be secured under the Restated Mortgage, Security Agreement and Financing Statement dated as of November 3 , 1997. If a loan is approved, no .'D" loan funds will be released until your organization has furnished to RUS, among other things, all of the documents, opinions, and other evidence listed in the loan contract applicable to this loan, including evidence that your organization has duly authorized executed, recorded, and filed a security instrument, in form and substance satisfactory to the Administrator, The first advance of "D" loan funds will include but not be limited to: .A.n amount then owing for interim financing for construction subsequent to April 26 , 2002, as approved by RUS. 2. The cost of pre loan engineering services in an amount to be approved by RUS, 3, .A.JJ amount for the purchase of any applicable R TB Class B stock. No loan funds will be advanced for outside plant construction until your organization has submitted evidence that you have complied with file requirements oftbe Idaho State Historic Preservation Office, U. S. Fish and Wildlife Service, State Game and Fish, NatUIal Resources Conservation Service, and the Corps of Engineers. We underst~Uld that you are converting a portion of your RTFC line of credit to long tenrl debt. If you wish to seCLlTe that debt under the shared mortgage, you will need to request an additional lien accommodation in accordance with 7 CPR 1744 Subpart B. Debt service payments are to be made all a 1"11onthly basis. This requirement will be included in the mortgage notes, Outstanding loans will continue to be billed as required by the mortgage notes for those 103ns. The mortgage will contain a provision requiring your organization to maintaill an average TIER of at least 1.S with TIER not less than 1.0 for any given year, Mr. Leonard May The maturity period for your "DOl loan is 17 years as you requested with the information submitted as a part of the loan application package. The principal repayment period will be 17 years. The approximate amoU1lt to be repaid will be $3,605 000 at a monthly payment of $20 000 for the RUSportion and $2 097 000 at a monthly payment of $11, 700 for the RTB portion, assuming the interest rates used in the feasibility study. The actual repayment of the loans will depend on theinterest rate applicable to each advance and the schedule of those advances. A savings .in .interestcosts over the life of the loan would result if a shorter amortization period were selected, We would appreciate any suggestions you may have with respect to the matters discussed in this letter. If you concur in the above requirements, please let us lmow by facsimile (202-690-4654)with a follow-up letter ITom an offlcer of your organization and indicate the maturity perioddesired for the loan, if shorter than the period stated above. We then will proceed with our studies. Our office should be advised of your decision immediate upon receipt of this letter. ~~, ' :' / r. '-." Jr.,b'::f: -""" 1b.A?,f: . :: ./ - .... JEI?Jr.~:rf H. BRENT, Director NMthwest Area 1flecommunications Program Rural Utilities Service Enclosures .., .- '" CORPORATE NAME AND ADDRESS DIRECT COMMUNICATIONS ROCKLAND, Th ROCKLAND, ill '" LOAN DESIGNA'flON mARO 513.Dl2 ROOKD;&1ID LLocalNetwork &rvice Re;v.en~~? --"""""'-"""""""""""'........_.~~';~' ;W:~; ""';"" ~;:c: ~~~~~~~i~:oI~ji 7 .Plant N'OnspecHiic.o.pe!'iitions E.xpe11se... ............ ,......,................, .......,., ............ ....,... :..... ... 8:D~pr~daiiO"n Expense. """""""""""" """""'" ............ .,.. .... """"""" ...... ..,......,.. """"""" 15~N()noperatin~ Neth1co~e (expressed with the oppositearitlw7!ic" . "",'". .." .. Y""'HLIi,::ti'in:n;ilinar)' Irems........ ,................,........................................:. ' .-,.,_,.. J7. iF;,O~'t~~;OFIW1~S :~EXPENSES ',,""",, , l1LNonregulared Net Income...................,...........,.............,.......,....::.m ::.:::. :L:?:.:::::h:; W:Totill:EXpenses, Excluding Federa1 Income taxes.................................. :."...........,.. '-'OR"'liirlm 'Bfo (; F~demI Inccmt.: Taxc" , ,, ,, ..' "- ., ct,.c; c e. r ' """""""""""""""""""""""""":""'~:;::' 7u' ~~ :~:~::;:: O ::e ;;X ::;~;:~~;:~'~;~~::: : :~:::;:;;;;: ; :;:;; :; ;:; : : :::: :::::::: :::::::;:: ::::El:i;;::1?:C;::;: 23 .Add"1JLtere:st.. .......,...........,........;.. ;':;L..:;;. .....,.,..... ,;"...,.,....... ".......................,.....;....., 2;i\,Net.Optir'J.~~I;'1. ;~'titlfn~:~~t~9 j;~iillila1'jl~fEt 27.SchedllJe:d illlere1/!: And I-rincipnl Paymel1ts.........,.............................,..........,.................. 28.Avallable For Plant Additio!t~, Rt.!pl;;tRel!1~pt5;Etc, """"""""""""""""""""' ,""""""'" 29 :Titll~~lnj;eJ'eS1;;1~at'J1ed3httj(J (Liflf~'24"tIlitl623:)' ;;;:.;... ......... .......,.......,.... ....;,. ..... .;...,,;..... (ilitere~f) 011t:stl.\1ldinn Loa!l :EnllUJ!::c:(s).......tgi 4.71% ,~8,259.,809.DO =, Current Lo:J.l1(s).........................tg! 4:90'% .$4,050.,95.0.00 '" TotaLOutsidtO F;l13.1:le;jtlg, ,;...;..;;;. ;d~ .6:54'11) .$36$,,261.00 . Tatal.Interest......,..".,.o ........, ...,.....,.............. ,.... ........ """"" ......,...... ......... '.. ......, '"Local Servicr.iRtwenUIJE BtUJl".dDbApprovc::dRates Item 14 .... SUBSCRIBER FORECAST 732 $665 558 865,192 15,068 545,818 $865 567 115 975 636,873 :o. ,.",~,,""' 247 122 694 878 158 686 611,437 267) (68,141) $4,255,129 $290 689 574 $204,115 611,437 $815 552 636 873 1,400 396 5:1,052 028 1.33 $389 089 3'.191:450 $23,39B ~;611.4:n USDA,;RtJSPreliminary TELEPHONE LOAN 1eOOGET BUDGET ITEM ' NAME OF BORROWER , DlRECTCQMMUNICATIONS ROCKLAND IJI1C IBORROWER-and LOANDESIGNATlON IDAHO S I.3.Dl2 ROC1(l,ANJ) , PItfORliOAN RESERVES AS OF: RESERVE !3ALANCES A.. 8116/2002 A VAll.ABLE FOR NEW PROJECTS 1\, NEW PROJECT BUPGIIT 'C:~ $2,732 000 .. ~I.o omct ' " OtJ1'S!DB.PLANT c. LAND aDdB~m;~~;;, d. SPEClAl.Plt.Omcrs, 113~5'27 I. CONSTI1.Uc..-nON 1, ENGn~EElUNG 3. OPERATING EQUIPMENT n, PRELOAN b. CONSTRUCTION ~. OFFICE EQUI1"MENT 80,pgo ". 0, OVERHBAD'~END~ b. CLASS IJ s:rm::K-RDRALTELEPHONE BANK 5. OPERATING J'UND8 950 6. REFINANCING Wl'I'HL,OANFUNDS 7. ACQUISITIONS II. OTHER 9. TOTALS 10. LESS AVAILADLE.FROM PRJOR LOANS (COL,.J:!.rmM9) II. LESS NONLOAN FUNDS ;$4:;050 950 11. TOTAL NEW LOAN FUNDS 13. HARDSHIp LOAN 14. COI~CURIlliNT - COST OF MONl,.' 15. CONCUIDIENT - RURAL TELEt'HONE !:IM~K IG. GUARANTBEDLOAN 17. OTHER LOAN 'IL PIUOilWANS 1'llIO~ LOAN TOTA1.5 IlEA LOAN" 1m, LOAN" IV. NONI.OAN FUND", AS ,o.DJUs-rno S; 11.323;;02-1. NON LOAN FUNDS, "UOIt LOAN 42J ;,1UiliIJ:OPJ.jti::J~III\m 1';39.S'-6,m 'onmn TOTAl.. NONLDAN I'Ui'JD5 REA FFR nus 21. ~NC1)"'DmU!D DU" UNAOVANl:EDl'U1m" ~ $9.924.421 1.I5H.560 J\U:;LO",N,:r.lI9.645 'CUAIlAHTtt1.tLOAN. 126.513 'L RETlliliIJ "LArif ESTIMATED ORIGINAL COST o~ 1UCfl1U!0 I'LANT lI"i, """) NEW .. AQJUIIUID AIlli.o.!;I!XJ:;TlNti AllJlA5 :!i0E,1IMATW SALVAGE VAW.OPIlETI!Um I'LANTllh., """\-""- NOTES There: nre llopropOBudrctirc:mc!1t& as1;ociatt:d withthb loan. RUS FORM 493 (Rev. 05-95), Excel V 5. --'-------",. ---..---,. -----,--,--,----------.... United States Department of Agriculture Rural Development Rural Business-Cooperative Service. Rural Housing Service. Rural Utilities Service Washington, DC 20250 Mr, Leonard A. May President Direct Communications Rockland , Inc. P. O. Box 269 Rockland , Idaho 83271 MAR 1 C1 2003 Dear Mr. May: Enclosed are six copies of the Restated Mortgage, Security Agreement and Financing Statement ("the mortgage ) along with other documents and instructions relative to your organization s "0" loan in the amount of $2 561 000 Rural Utilities Service (RUB) cost-of-money funds made by RUS and $1,489 950 made by the Rural Telephone Bank (Bank). The executed counterparts will be sent to you by the Rural Telephone Finance Cooperative (RTFC), along with their instructions. We indicated in our letter dated September 27 2002, announcing approval of the "0" loan that we would specify the date by which the telephone loan contract is to be executed, authorized and returned to us. That date is 60 days from the date of this letter. Please note the section in the loan contract, which specifies that loan funds advanced to your organization are to be held in trust for the Government and promptly deposited into a special construction account. It is of the utmost importance that the loan funds be used only for the purposes and in the amounts' aplJroved by RUS as set forth in the financial requirement statement. Two 17-year notes covering these loans in the total amount of $4 050 950 are enclosed for execution, The terms of the notes provide for mollthly principal payments beginning two years after the date of the notes. Please proceed with fulfillment of the loan contract requirements so loan funds can be released for approved loan purposes with a minimum of delay,Again, observe the above date for return of the loan contract JER ,Y H. BREI\jT, Oil-ector l\Jo' west Area T e ~communications Program RL ral Utilities Service Enclosures Rurnl DlWol"I,lInonl it; an EQUlJi Opportunity Londor Compl"Jnlo 01 dl"crll1l1nulion nlmulrJ bo monTlo: 8"c,otmy oll\~,icuUor", Wm-.ilin~lolI, DC 202511 D(:'.-5' ~op~l" ..,. USDA :::=- United States Department of Agriculture Rural Development Rural Business-Cooperative Service. Rural Housing Service. Rural Utilities Service Washington, DC 20250 MAR 1 3 20fi3 Mr. Robert A. Parrett Legal Assistant Rural Telephone Finance Cooperative 2201 Cooperative Way Herndon, Virginia 20171~3025 Dear Mr. Parrett: Enclosed are 14 signed copies of the Restated Mortgage, Security Agreement and Financing Statement (the mortgage) among Direct Communications Rockland, Inc, (Direct), the United States of America, the Rural Telephone Bank, and the Rural Telephone Finance Cooperative (RTFC). It is our understanding that RTFC will execute and forward these documents to Direct with instructions for final execution. Please provide the RTFC note information on the Schedule B to the mortgage. Also, enclosed for your information is a copy of the instructions we provided to Direct regarding these documents. Enclosures cc:I\I1r. Leonard A. May Fluml Dnvnlopmnnl 10 nn Equal OpporlUnh\' LnmJlI1 Complaint" 01 dlucrlrnlnulloll IIhould bu onnt 10: 8ucrnllJty of 1\lJrlculiuru, WullhlnlJlott, DC 20250 Offic:: of the Secretary Service Date October 24. 2001 BEFORE THE IDiiliO PUBLIC UT~ITIES COMI\1ISSION ,.. ,;...~ =, .' '-. ', ~ , IN THE MATTER OF THE APPLICATION OF DIRECT COMMUNICATIONS ROCKLAND INC. FOR AUTHORITY TO BORROW $3 316 000 FROM THE RURAL UTILITIES SERVICE. " -, . ~ ,.;0; \ CASE NO. DCM-Ol-l GL' ~':-\; -;: ')1';2'1/ ; ORDER NO. 28880 On September 18 2001 , Direct Communications Rockland, Inc. filed an Application requesting an Order from the Commission that would authorize it to borrow $3 316 000 in Rural Utilities Service CRUS) loans. The funds Vlill be dra\vn at various times as advances whenexpenditures are ID)lde over the next five years. The loans will be for a period of time equal to the depreciation schedules set by RUS. The interest rate is cun-ently 5% for hardship loans or the current market rate if lower. accordance with Idaho Code, Title 61, Chapters 1 and 9. 2. The Applicant requests that the Commission grant it authority to borrow316000 from the Rural Utilities Service. FINDINGS OF FACT 1. The Commission has jurisdiction over this Applicant and this Application in 3. The Commission also fmds that the proceeds of the proposed loan will be used forand will partialJy reimburse general funds for (1) extension of service to new customers, (2)addition of new dense wave division multiplex electronic equipment for Rocldand's existingfiber optic facilities, (3) installation of new central office equipment, and (4) related purposes. 4. The Commission finds that the expenditures per exch811ge and generaJ areas total$678 000 in Rocldand, $SO OOO in Arbon, $1,493 000 in Paris, $345 000 in Minle Creek and Pocatello, $195 000 in Soda Springs, $235 000 for engineering, $80 000 for utility trucks, and$240 000 for reimbursement of generaJ funds. It is projected that of these amounts 21:: 000is associated v,rith regulated activities and $1 035 000 is associated witb deregulated activities, 5. AIJ fees have been paid by applicant in accordance with Idaho Code ~; 61-905, CONCLUSIONS OF' LA\V tn do business in this state in cormectioIJ with its utility operations. Appliciillt is inco1JJorated under the laws of the StErle of 1d3110 and is clll)Y authorized ORDER NO. 288g0 The Commission has jurisdiction over this Application. The proposed loan to be issued to Rockland by RUS is for a lawful purpose and witbin Applicant's corporate powers. The proposed transaction is in the public interest , and afonnal hearing on this matter would serve no public pUrpose. The Commission finds that this Application shall be approved, conditioned on the same restrictions and filing requirements when approved by RUS, Rockland shall file copies of the final loan documents and all required filings with RUS with the Commission as they are completed, Furthermore , Rockland shall also file annual statements reflecting total balancesoutstanding and mortgage compliance calculations, .LvI fees have been paid by Applicant in accordance with Idaho Code 8 61-905. ORDER IT IS HEREBY ORDERED that the Application of Direct Communications Rockland, Inc. to boITOIV $3 316 000 from the Rural Utilities Service is granted , conditionedupon the same restrictions and filing requirements as set by RUS. IT IS FURTHER ORDERED that Rockland shall file copies of the final loandocuments and all required filings made with RUS with the Commission as they are completed. IT IS FURTHER ORDERED that Rockland shall file annual statements refJecting totaJ balances outstanding and mortgage compliance calculations. IT IS FURTHER ORDERED that nothing in this Order shalJ be construed to obligate the State ofIdaho to payor guarantee in any manner vihatsoever any security authorized, issuedassumed or guaranteed under the provisions of this Order. idaho Code 8 61-906, IT IS FURTHER ORDERED that this authorization is without prejudice to theregulatory authOliT)' to this Commission 'vvitb respect to rates, services , accounts, evaluationsestimates, or determination of costs, or any other matter whicb may come before thisCommission purSUiJl1t to its jurisdiction and autbority as provided by Jaw. TE-IIS IS A FD\fAL ORDER, Any person interested in this Order (or in issues fmaIJydeci ded by this Order) or in interlocutory Orders previously issued in this Case J00. DCM" I-OJ-may petition for reconsideration withill twenty-one (21) days of the service date of this Order with regard to any mailer decided in this order or in interlocutory Orders previously issued in this Case No. DCl\~-OJ-WithjIi seven (7) days after any person has petitioned Jc)!' OIU)EP NO, 2t~8t:(j 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 d.3 t..f. day of October 2001. , PRESIDENT :~\.:L , /J"J\; 1, tv,- MAASI-L4 H. SMITH, COMMISSIONER ATTEST: (\ ~J. ,-( J~l J ~ ' ' D. J e\Ne 1,. Ccrmmission Secretary O:DCMTD1Jjh ORJ)ER I'm. 28880 ..,