951117.docx

DECISION MEMORANDUM
TO:COMMISSIONER NELSON
COMMISSIONER SMITH
COMMISSIONER HANSEN
MYRNA WALTERS
STEPHANIE MILLER
DAVID SCHUNKE
DON HOWELL
WELDON STUTZMAN
BEVERLY BARKER
GARY RICHARDSON
TONYA CLARK
WORKING FILE
FROM:TERRI CARLOCK
DATE:NOVEMBER 17, 1995
RE:CAPITOL WATER CORPORATION’S REQUEST TO BORROW $75,000; CASE NO. CAP-W-95-2.
RECOMMENDATION:  APPROVAL
Capitol Water Corporation requests authority to borrow $75,000 in debt.  The debt would be an eight-year term loan at an interest rate of 10.5%.
The debt proceeds will be utilized to pay construction costs incurred to lower mains and replace saddles as described in Case No. CAP-W-95-1.  The remainder will be utilized to repay existing short-term debt.
RECOMMENDATION
The debt issue is the first step and is consistent with the goal to restructure the financing for Capitol Water as discussed in the rate case.  I recommend approval.
COMMISSION DECISION
Do you approve the $75,000, eight-year term loan at 10.5% interest?
________________________
Terri Carlock
tc:gdk/capw952.tc/udmemos