HomeMy WebLinkAbout19961016Amended Order No 26635.docBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF U S WEST COMMUNICATIONS, INC. AND MIDVALE TELEPHONE COMPANY FOR TRANSFER OF A CERTIFICATE OF AUTHORITY.
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CASE NO. MID-T-94-1
AMENDED ORDER NO. 26635
On March 5, 1996, the Commission issued Order No. 26353 approving the sale of the U S WEST exchange of Stanley to Midvale Telephone Exchange, Inc. (Midvale) or its wholly-owned subsidiary. In addition to the original Application, Midvale and its subsidiary Sawtooth Telephone, Inc. (Sawtooth) have filed supplemental information related to the financing for the purchase of the U S WEST exchange of Stanley. The purchase price has been reduced by the switch replacement contribution so the ultimate financing is also reduced. The maturity for the loan would be 15 years with the interest rate to be determined at the time of closing. The term sheet for Midvale and Sawtooth is attached showing Rural Telephone Finance Cooperative (RFTC) as the lender, net purchase price, loan amount, interest rate options and other terms.
On October 11, 1996, the Commission issued Order No. 26635 granting Midvale authority to incur or guarantee indebtedness for the purchase of the exchange. This Order is an Amended Order to also include authority to Midvale and its wholly-owned subsidiary, Sawtooth.
The Idaho Public Utilities Commission, having fully considered the Application, including the supplemental information and exhibits attached thereto, and all of the Commissions files and records pertaining to this Application, makes the following findings of fact and conclusions of law.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
Midvale and Sawtooth are telephone corporations within the definition of Idaho Code 61-114 and a public utility within the definition of Idaho Code 61-129.
The Idaho Public Utilities Commission has jurisdiction over this matter pursuant to the provisions of Idaho Code 61-901, et seq., and the Application reasonably conforms to Rules 141 through 150 of the Commissions Rules of Procedure, IDAPA 31.01.01.141-150.
The method of issuance is proper.
Midvale and Sawtooth have sought approval from the Commission for a loan relating to the financing for the purchase of U S WEST exchange of Stanley. Sawtooth will be the borrower of the exchange purchase funds. The purchase price of the exchange has been reduced by the switch replacement contribution, thus the amount of financing has also been reduced. The maturity for the loan would be 15 years with the interest rate to be determined at the time of closing. The term sheet is attached showing Rural Telephone Finance Cooperative as the lender, net purchase price, loan amount, construction loan, interest rate options and other terms.
The general purposes to which the proceeds will be put are lawful purposes under the Public Utility Law of the state of Idaho and are compatible with the public interest. However, this is only a general approval of the purposes to which the proceeds will be put, and is not a finding of fact or a conclusion of law that any particular construction program is approved by this Order. The issuance of an Order authorizing the proposed financing does not constitute agency determination/ approval of the type of financing or the related costs for ratemaking purposes. The Idaho Public Utilities Commission does not have before it for determination, and therefore does not determine, any effect of the proposed transactions on rates to be charged by Midvale or Sawtooth for telephone service to consumers in the state of Idaho.
All lawful fees have been paid by Midvale as provided by Idaho Code 61-905.
The Application should be approved.
O R D E R
IT IS THEREFORE ORDERED that the Application of Midvale Telephone Exchange, Inc. and Sawtooth Telephone, Inc. for authority to incur or guarantee indebtedness as proposed in the attachment to this Order should be, and the same hereby is, granted. This authorization shall also include authority to incur or guarantee indebtedness in the additional amount of $105,199 for the purchase of subordinated Capital Certificates from RTFC as required by RTFCs loan agreement.
IT IS FURTHER ORDERED that Midvale Telephone Exchange, Inc. and Sawtooth Telephone, Inc. shall file with this Commission a report of securities issued including verified copies of any agreement entered into in connection with the issuance of debt setting forth the date of issuance, principal amount, interest rate, date of maturity and all other terms.
IT IS FURTHER ORDERED that the foregoing authorization is without prejudice to the regulatory authority of this Commission with respect to rates, service, accounts, valuation, estimates, or determination of cost or any other matter that may come before this Commission pursuant to this jurisdiction and authority as provided by law.
IT IS FURTHER ORDERED that nothing in this Order and no provision of Chapter 9, Title 61, Idaho Code, or any act or deed done or performed in connection with 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 Chapter 9, Title 61, Idaho Code.
IT IS FURTHER ORDERED that issuance of this Order does not constitute acceptance of Midvale Telephone Exchanges or Sawtooth Telephone, Incs. exhibits or other material accompanying this Application for any other purpose other than the issuance of this Order.
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 day of October 1996.
RALPH NELSON, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
Myrna J. Walters
Commission Secretary
bls/O-midt941.sh2
AMENDED ORDER -1-
Office of the Secretary
Service Date
October 16, 1996