20210225Final_Order_No_34938.pdf

ORDER NO. 34938 1
Office of the Secretary
Service Date
February 25, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF MIDVALE TELEPHONE COMPANY FOR
AUTHORITY TO BORROW FROM THE
RURAL UTILITIES SERVICE IN AN
AMOUNT NOT TO EXCEED $10,982,238
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CASE NO. MID-T-21-01

ORDER NO. 34938

On February 3, 2021, Midvale Telephone Exchange (“Midvale” or “Company”)
requested authority to enter into a Loan and Grant Agreement and Promissory up to $10,982,238,
with a supplemental mortgage (the “Loan”), from the United States of America acting through the
Administrator of the Rural Utilities Service (“RUS”). Application at 1. Having considered the
Application, the Commission enters this Order granting it as follows.
THE APPLICATION
The Loan is structured as a combined grant/loan with a $5,491,119 grant and a loan not
to exceed $5,491,119. Id. at 2. The Loan is made on the terms in the Loan and Grant Agreement,
Promissory Note, Restated Mortgage, Security Agreement and Financing Statement, and other
associated documents and instruments (collectively the “Loan Documents”). Id.
The Loan would pay for and partially reimburse general funds to: (a) extend broadband
internet to additional service areas in Idaho including Warm Lake, Warren, Stanley, and Midvale;
(b) provide for router and switch upgrades to handle broadband traffic growth; (c) deploy
additional fiber optic and buried cable networks in certain new Idaho service areas, including
Warm Lake, Warren, Stanley, and Midvale; (d) extend fiber-to-the-house and broadband ethernet
transport facilities to provide larger pipes and redundant paths; and (e) make related system
improvements. Id. The interest rates on the Loan are expected to be equal to the current cost of
money to the federal government for loans of a similar maturity. The term of the Loan is 22 years.
Id. This year, the 20-year treasury bill rate has ranged from 1.46% to 1.83% and the 30-year
treasury bill rate has ranged between 1.66% and 2.01%. Id.
COMMISSION FINDINGS AND DECISION
Midvale is a telephone corporation and public utility organized under the laws of the
State of Idaho providing telecommunication service, including local exchange service within Idaho
ORDER NO. 34938 2
under the Fifth Amended Certificate of Public Convenience and Necessity, Certificate No. 254.
See Order No. 30969; see also Idaho Code §§ 61-129, 62-603(13) & (14).
The Commission has jurisdiction over this Application under Idaho Code § 61-901 et
seq. The Commission finds that the Loan is in the public interest and a formal hearing on this
matter is not required. We further find that the Loan 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, IDAPA 31.01.01.141-150, and that the Company has
paid all fees due under Idaho Code § 61-905. Accordingly, the Commission approves Midvale’s
Application for authority to obtain the Loan.
The Commission’s approval of the Loan is not a finding of fact or a conclusion of law
that the particular use to which these funds are to be put is approved by this Order. This Order
authorizing the proposed Loan does not constitute a Commission determination or approval of the
type of financing or the related costs for ratemaking purposes. The Commission does not have
before it for determination in this case, and thus does not determine, the effect of issuance on rates
to be charged by Midvale for telecommunication services.
ORDER
IT IS HEREBY ORDERED that Midvale’s Application for authority to execute the
Loan Documents, for up to a $10,982,238 Loan for the purposes and in the manner described in
the Application, is approved.
IT IS FURTHER ORDERED that Midvale shall file the final Loan Documents for the
Loan, copies of the RUS final Loan approvals, including documentation for advances and any later
changes to their terms, with Staff upon issuance of. This informational filing should be made
within seven (7) days, or as soon as possible, before the issuance. The Company shall also provide
copies of all annual certification, covenant reports, and letters regarding the determinations to Staff
as they become available.
IT IS FURTHER ORDERED that the Company must file with the Commission a copy
of the “Report of Securities Issued.”
IT IS FURTHER ORDERED that issuing this Order does not constitute acceptance of
Midvale’s exhibits or other material accompanying this Application for any purpose other than
issuing this Order.
ORDER NO. 34938 3
IT IS FURTHER ORDERED that nothing in this Order or any act or deed performed
in connection with this Order shall be construed to obligate the State of Idaho to pay or guarantee
any security or loan authorized, issued, assumed, or guaranteed under this Order.
IT IS FURTHER ORDERED that this authorization is without prejudice to the
Commission's regulatory authority regarding rates, service, accounts, evaluation estimates or
determination of costs or any other matter that may come before the Commission pursuant to its
jurisdiction and authority as provided by law.
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 about 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 §§ 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 25th day
of February 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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