20221220_COLT2201_jt.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOSEPH TERRY
CLAIRE SHARP
DATE:DECEMBER 20,2022
RE:COLUMBINE TELEPHONE COMPANY,INC.'S APPLICATION FORAUTHORITYTOACCEPTAGRANTAWARDINANAMOUNTNOT
TO EXCEED $2,103,857;CASE NO.COL-T-22-01
On December 8,2022,Columbine TelephoneCompany,Inc.("Columbine"or
"Company")filed an application to execute a grant and security agreement in favor of the Rural
Utilities Service ("RUS")securing a grant for $2,103,857.The Commission received the filing
fee of $435 on December 9,2022.
STAFF ANALYSIS
The grant agreement provides RUS with a secured interest in the plant in service
constructed by the grant award for the life of the plant.The facilities that are plannedto be
constructed under this grant agreement will expand broadband access to an unserved area of
Madison County,Idaho.All of the areas expected to be covered will have access to 100/100
Mbps service and up to 10 Gbps.The secured interest in this plant should not furtherencumber
the Company's assets nor effect the revenue requirement of its regulated operations.
The Company's Application complies with IDAPA 31.01.01.141 through 146.The
security agreement,while not technicallydebt,will encumber the assets constructed similar to a
long-term debt agreement and therefore is applicable under Idaho Code §61-901.
DECISION MEMORANDUM -1 -DECEMBER 20,2022
STAFF RECOMMENDATION
Staffrecommends the Commission authorize Columbine to execute the grant agreement
with RUS.
Staff recommends the Commission order Columbine to file copies of all agreement terms
and final documents when they become available.
COMMISSION DECISION
Does the Commission wish to authorize Columbine to execute the grant agreement with
RUS to not exceed $2,103,857?
Does the Commission wish to order Columbine to file copies of all agreement terms and
final documents when they become available?
seph rry
Udmemos/COL-T-22·01 Decision Memo
DECISIONMEMORANDUM -2 -DECEMBER 20,2022