20011024Order No 28880.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of the application of direct communications rockland, inc. for authority to borrow $3,316,000 from the rural utilities service. )
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CASE NO. dcm-t-01-1

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 (RUS) loans. The funds will be drawn at various times as advances when expenditures are made 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 currently 5% for hardship loans or the current market rate if lower.
FINDINGS OF FACT
1. The Commission has jurisdiction over this Applicant and this Application in accordance with Idaho Code, Title 61, Chapters 1 and 9.
2. The Applicant requests that the Commission grant it authority to borrow $3,316,000 from the Rural Utilities Service.
3. The Commission also finds that the proceeds of the proposed loan will be used for and will partially reimburse general funds for (1) extension of service to new customers, (2) addition of new dense wave division multiplex electronic equipment for Rockland’s existing fiber optic facilities, (3) installation of new central office equipment, and (4) related purposes.
4. The Commission finds that the expenditures per exchange and general areas total $678,000 in Rockland, $50,000 in Arbon, $1,493,000 in Paris, $345,000 in Mink Creek and Pocatello, $195,000 in Soda Springs, $235,000 for engineering, $80,000 for utility trucks, and $240,000 for reimbursement of general funds. It is projected that of these amounts, $2,281,000 is associated with regulated activities and $1,035,000 is associated with deregulated activities.
5. All fees have been paid by applicant in accordance with Idaho Code § 61-905.
CONCLUSIONS OF LAW
Applicant is incorporated under the laws of the State of Idaho and is duly authorized to do business in this state in connection with its utility operations.
The Commission has jurisdiction over this Application.
The proposed loan to be issued to Rockland by RUS is for a lawful purpose and is within Applicant’s corporate powers. The proposed transaction is in the public interest, and a formal 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 balances outstanding and mortgage compliance calculations.
All fees have been paid by Applicant in accordance with Idaho Code § 61-905.
O R D E R
IT IS HEREBY ORDERED that the Application of Direct Communications Rockland, Inc. to borrow $3,316,000 from the Rural Utilities Service is granted, conditioned upon the same restrictions and filing requirements as set by RUS.
IT IS FURTHER ORDERED that Rockland shall file copies of the final loan documents and all required filings made with RUS with the Commission as they are completed.
IT IS FURTHER ORDERED that Rockland shall file annual statements reflecting total balances outstanding and mortgage compliance calculations.
IT IS FURTHER ORDERED that nothing in this Order 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 this Order. Idaho Code § 61-906.
IT IS FURTHER ORDERED that this authorization is without prejudice to the regulatory authority to this Commission with respect to rates, services, accounts, evaluations, estimates, or determination of costs, or any other matter which may come before this Commission pursuant to its jurisdiction and authority as provided by law.
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. DCM-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. DCM-T-01-1. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of October 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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ORDER NO. 28880 1

Office of the Secretary
Service Date
October 24, 2001