20030603Order No 29252.pdf

Office of the Secretary
Service Date
June 3, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF DIRECT COMMUNICATIONS
ROCKLAND, INC. FOR AUTHORITY TO
BORROW $4,050 950 FROM THE RURAL
UTILITIES SERVICE AND THE RURAL
TELEPHONE BANK.
ORDER NO. 29252
CASE NO. DCM-Ol-
On September 18 2001 , Direct Communications Rockland, Inc. filed an Application
with the Commission requesting to borrow $3 316 000 from the Rural Utilities Service (RUS),
an agency of the u.s. Department of Agriculture. The purpose of the loan was to pay for the
acquisition of new multiplex electronic equipment and the installation of new central office
equipment. In Order No. 28880, issued October 24, 2001 , the Commission authorized Direct
Communications to borrow the funds.
On May 7, 2003, Direct Communications filed an Application to Amend Order
No. 28880. More specifically, the Company sought to increase the amount of its borrowing
authority. Direct Communications asserts that the contemplated capital improvements to its
facilities were more expensive than originally estimated. Consequently, the Company seeks
authority to increase the loan amount and to restructure its borrowing into two separate loans.
Direct Communication requested the approved loan amount in Order No. 28880 be increased
from $3 316 000 to $4 050 950. One loan is in the amount of $2 561 000 from RUS and the
other loan is from the Rural Telephone Bank (RTB) in the amount of$I 489 950.
FINDINGS OF FACT
1. The Commission has jurisdiction over Direct Communications Rockland and this
Application pursuant to Idaho Code, Title 61 , Chapters 1 and 9.
2. The present Application requests that the Commission Increase Direct's
borrowing authority set out in Order No. 28880 from $3 316 000 to $4 050 950. One loan would
be in the amount of $2 561 000 from RUS and the other loan would be from the RTB in the
amount of$I 489 950.
3. Idaho Code ~ 61-624 provides that the Commission may, upon notice to the
affected utility, amend any Order or decision made by it.
ORDER NO. 29252
4. The Commission finds that the proceeds of the increased loan amount will be used
for purposes authorized by Idaho Code ~ 61-901.
5. All fees have been paid by Applicant in accordance with Idaho Code ~ 61-905.
CONCLUSIONS OF LAW
1. 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.
2. Idaho Code 961-624 allows the Commission to amend any order previously
issued by the Commission.
3. The increased loan amounts to be issued to Direct Communications by the RUS
and the R TB are for lawful purposes and are within the Applicant's corporate powers. The
proposed transaction is in the public interest, and a formal hearing on this matter would serve no
public purpose.
4. The Commission finds that this Application to amend and increase the loan
amount authorized in Order No. 28880 to $4 050 950 shall be approved, conditioned upon the
same restrictions and filing requirements when approved by RUS and the RTB. Direct
Communications shall file copies of the final loan documents and all required filings with RUS
and the RTB with this Commission as they are completed. Furthermore, Direct Communications
shall also file annual statements reflecting total balances outstanding and mortgage compliance
calculations.
ORDER
IT IS HEREBY ORDERED that the Application of Direct Communications
Rockland, Inc. to amend Order No. 28880 to increase its borrowing authority is granted
conditioned upon the same restrictions and filing requirements set by RUS and the R TB.
IT IS FURTHER ORDERED that Direct Communication s borrowing authority
authorized in Order No. 28880 is increased from $3 316 000 to $4 050 950. This increased
amount represents two separate loans: $2 561 000 from the RUS; and $1,489 590 from the RTB.
IT IS FURTHER ORDERED that Direct Communications shall file copies of the
final loan documents and all required filings made with the RUS and RTB with the Commission
as they are completed.
IT IS FURTHER ORDERED that Direct Communications shall file annual
statements reflecting total balances outstanding and mortgage compliance calculations.
ORDER NO. 29252
IT IS FURTHER ORDERED that nothing in this Order shall be construed to obligate
the State of Idaho to payor 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 of 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) may petition for reconsideration within twenty-one (21) days of the
service date ofthis Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 9,..(
.:f &4.1\(
day of May 2003.
, PRESIDENT
;j~
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANS N, COMMISSIONER
ATTEST:
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ORDER NO. 29252