20110224final_order_no_32193.pdf

Office of the Secretary
Service Date
February 24 2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF RURAL TELEPHONE COMPANY FOR
AUTHORITY TO BORROW FROM THE
RURAL UTILITIES SERVICE (RUS) IN THE
AMOUNT OF NOT MORE THAN $728,700 ORDER NO. 32193
CASE NO. RUR-ll-
On January 24, 2011 , Rural Telephone Company filed an Application for Loan
Approval with the Commission requesting authorization to execute a Promissory Note in the
amount of $728 700 in favor of the United States, acting through the Rural Utilities Service
(RUS) to be secured by a Loan/Grant and Security Agreement and Rural Telephone s pre-
existing Mortgage.
Rural Telephone has qualified for a grant from RUS under the federal Broadband
Initiatives Program (BIP) in the amount of $1 700 300. As a condition of the grant, Rural
Telephone is required to provide 25% match of funds, to be derived from the $728 700 RUS loan
evidenced by the Promissory Note. The Promissory Note will be secured by a Loan/Grant and
Securing Agreement (Agreement) to be executed by the RUS in connection with the Note, and
by Rural Telephone s pre-existing RUS Restated Mortgage, Security Agreement and Financing
Statement dated March 9, 2005, which Mortgage was approved by the Commission in Case No.
RUR-04-, Order No. 29566.
In support of its Application, Rural Telephone alleges that the proposed RUS loan
proceeds will be used to extend ADSL2+ services to Rural Telephone s North Fork, Tuscarora
and Jarbidge service areas, which are situated in Elko County, Nevada. Certain of these new
facilities will be interconnected with Rural Telephone s existing Idaho telecommunications
facilities. Rural Telephone further alleges that the proposed RUS loan is consistent with the
public interest inasmuch as construction and upgrading of high-speed infrastructure will improve
service for Rural Telephone s customers, including to some extent, its Idaho customers, will
further the goals of universal service and provide economic stimulus to rural communities in
southern Idaho and northern Nevada.
ORDER NO. 32193
After examining the Application and supporting documents and being fully advised in
the premises, the Commission hereby finds that a hearing in this matter is not required. The
Commission also finds the proposed transaction is consistent with the public interest.
ORDER
IT IS THEREFORE ORDERED that the Application of Rural Telephone Company
for authority to execute and deliver to the Rural Utilities Service a Promissory Note in an amount
not to exceed $728 700, a Grant/Loan and Security Agreement and related documents in
connection with the Grant and Loan is hereby granted.
IT IS FURTHER ORDERED that Rural Telephone Company file with this
Commission the Close Out Report to the RUS and all supplemental Close Out Reports.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (2l) 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 ~ 6l-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :2. 'I-f'/.
day of February 2011.
~ ~~( ~
. KEMPTO ENT
MARSHA H. SMITH, COMMISSIONER
MMISSIONER
ATTEST:
~6J~
D. Jewe
Commission Secretary
ORDER NO. 32l93