20221215Final_Order_No_35629.pdf

ORDER NO. 35629 1

Office of the Secretary
Service Date
December 15, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF MIDVALE
TELEPHONE COMPANY’S REQUEST
FOR AUTHORITY TO BORROW FROM
THE RURAL UTILITIES SERVICE
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CASE NO. MID-T-22-01

ORDER NO. 35629

On November 22, 2022, Midvale Telephone Company (“Midvale” or “Company”)
requested authority to execute a Mortgage and Promissory Note in an amount of $10,583,267
(“Loan”), from the United States of America acting through the Administrator of the Rural Utilities
Service (“RUS”). Application at 1. Based on our review of the record, we issue this Order granting
the Company’s request as follows.
THE APPLICATION
The Loan is a ReConnect Loan Agreement with a Mortgage and Promissory Note, and
other associated documents in the amount of $10,583,267. Id. The Loan’s term is 22 years from
the date funds are first made available to the Company, with a subsidized interest rate of 2%. Id.
at 2. The Loan would pay for and partially reimburse general funds to: (a) extend broadband
internet to certain additional service areas in Stanley, Idaho, Cascabel, Arizona, and Young,
Arizona (the “Service Areas”); (b) provide for router and switch upgrades to handle broadband
traffic growth; (c) deploy additional fiber optic and buried cable networks in the Service Areas;
(d) extend fiber-to-the-home and broadband Ethernet transport facilities to provide larger pipes
and redundant paths; and (e) for related system improvements. Id.
STAFF REVIEW AND RECOMMENDATION
At the Commission’s December 13, 2022, Decision Meeting, Staff recommended that
the Commission approve the requested authority. Staff believed the Company’s proposed projects
“will improve service to existing customers and make it possible for the Company to meet new
service demands” and the additional infrastructure “will further serve the goals of universal
internet service” in Idaho. Staff Decision Memorandum, 1.
Staff recognized that grants for its selected projects may be available to the Company,
and expected that the Company would “pursue these where available.” Id. Staff recommended that
the Company provide copies of the final loan approvals including documentation for advances,
ORDER NO. 35629 2
any executed collateral documentation, and all annual certification, covenant reports, and letters
regarding the determinations. Id. at 2.
FINDINGS AND DISCUSSION
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
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) and (14).
The Commission has jurisdiction over the Company’s 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 with 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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application to execute a Mortgage
and Promissory Note in an amount of $10,583,267, is approved.
IT IS FURTHER ORDERED that the Company shall file all final Loan Documents for
the Loan, copies of the RUS final Loan approvals, including documentation for advances, and any
later changes to terms with Staff. These additional filings should be made within seven days, or as
soon as possible before issuance of the Loan. The Company shall also provide copies of all annual
certifications, 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.”
ORDER NO. 35629 3
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.
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.
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 15th day
of December 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND, JR., COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary

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