Title 3 . Commerce, Community, and Economic Development

Chapter 106 . Financial and Technical Assistance for Energy Systems, Facilities, and Equipment

Section 210. Rural electrification revolving loan fund application

3 AAC 106.210. Rural electrification revolving loan fund application

(a) An applicant for a loan from the rural electrification revolving loan fund shall submit an application, which contains at the time of filing, the following information:

(1) the legal name of the applicant and the legal authority under which it was created and other information that will demonstrate that the applicant is an eligible borrower under AS 42.45.020 , including evidence that it holds a certificate of public convenience and necessity issued by the Regulatory Commission of Alaska allowing it to provide electric service to the area where the proceeds of the loan will be used;

(2) a certified copy of the resolution or other official action taken by the applicant's governing body authorizing the application for a loan;

(3) the name, title, and address of the applicant's official correspondent or representative for purposes of the application;

(4) the names and titles of the applicant's principal officers, including the chief executive officer or general manager;

(5) the names and addresses of the engineer, legal counsel, financial advisor or consultant, and any management, engineering, design, economic, or other advisors or consultants that the applicant has for the project;

(6) the total amount of the loan requested;

(7) a description of the use to which the loan money will be applied, including

(A) geographic location of the project;

(B) a narrative describing the physical components and the electrical characteristic of the project;

(C) a comprehensive statement clearly demonstrating public need for the project and the project's eligibility under AS 42.45.020 ;

(D) the proposed allocation of loan money to each purpose or to each phase of a project and the expected date of completion of each;

(E) information necessary so the loan advisory committee can consider the matters required by AS 42.45.030 and by 19 AAC 96.230, including a

(i) description of each structure to be served and whether it is temporary or permanent for each customer identified in (12) of this subsection and all other customers the applicant expects will be served by the extension of electric service within the 10-year period following completion of the project;

(ii) description of the present and expected future use of land in the area to be served by the extension of electric service, including residential population and commercial facility density and zoning, if any;

(iii) description of the terrain that will be crossed by the extension of electric service and information about the ownership status of each parcel to be crossed, including information about any easements and rights-of-way granted or expected to be granted;

(iv) description of all other utility service available or expected to be available in the area to be served by the extension of electric service; and

(v) projection of the number of new customers that the applicant expects to be served by the extension of electric service for each of the 10 years following completion of the project and an estimate of the cost to provide a service connection to each of those customers;

(8) information from which the authority can determine that the project is technically and financially feasible;

(9) the status of any proceedings necessary for the applicant to obtain permits, certificates, or other authorizations from any federal, state, or local agency necessary to begin, complete, and operate the project;

(10) financial statements of the applicant and any other party or parties acting as guarantor of the loan, unless otherwise required by the authority; these financial statements must include, when possible, balance sheets and profit-and-loss statements and must be certified by an independent certified public accountant;

(11) for an investor-owned electric utility, a business history of any person or entity owning or controlling 10 percent or more of the applicant's stock or business;

(12) the name and location of each customer who has applied for service and for whom immediate service is expected to be provided and whether those customers are receiving electric service from a public utility at the time of the loan application;

(13) information from which the authority can determine whether the applicant has the financial ability to provide from other money available to it an amount equal to that required for acquisition and installation of one transformer, one span of line, one pole, and one service drop as required for each customer to whom immediate service will be provided; and

(14) a loan repayment analysis that demonstrates expected payments of principal and interest over the first 10 years following completion of the project sufficient to retire the full amount of the obligation, including

(A) the connection costs calculated as the average costs anticipated at the time of the application for acquisition and installation of one transformer, one span of line, one pole, and one service drop;

(B) the expected number of additional customers to be connected to the service extension financed by the loan

(i) during the first 30 days following completion of the project;

(ii) after the first 30 days but before the end of the first calendar year following completion of the project; and

(iii) during each of the nine calendar years following the first calendar year;

(C) assumptions made in forecasting the number of additional customers under (B) of this paragraph, and other information that demonstrates the reasonableness of the forecast;

(D) the estimated actual cost, at the time of the application, to provide a service connection to each new customer identified under (B)(ii) and (B)(iii) of this paragraph, plus a statement of any assumptions or information that demonstrates the reasonableness of the cost estimates;

(E) the expected principal repayment during each of the first 10 years; the repayment is calculated as the sum of the differences between the cost for each connection for that year identified under (D) of this paragraph and the average cost calculated under (A) of this paragraph for each such connection described in (D) of this paragraph that costs less than the average cost calculated under (A) of this paragraph;

(F) the expected interest payment during each of the first 10 years, which is calculated as two percent of the unpaid principal balance;

(G) the surcharge required from each new customer identified under (B) of this paragraph, during each of the first 10 years, to generate the expected interest payment described in (F) of this paragraph; the surcharge is calculated annually by dividing the expected interest payment by the total number of customers connected with the loan proceeds;

(H) a comparison of the annual principal payments calculated under (E) of this paragraph with the applicant's total projected annual revenue for each of the first 10 years;

(15) if the applicant is a Native village council, a resolution waiving sovereign immunity on a form provided by the authority.

(b) An applicant shall in addition to the application, timely provide other information requested by the authority.

(c) An application must be submitted to the authority.

History: Eff. 2/16/96, Register 137

Authority: AS 42.45.020

AS 44.83.080

Editor's note: Before 2/16/96, Register 137, the substance of 19 AAC 96.210 was set out in former 3 AAC 94.210. The history note of 19 AAC 96.210 does not reflect the history of 3 AAC 94.210.