Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 14 - Alaska Energy Authority › Chapter 106 - Loan Programs › Article 2 - Loans From Rural Electrification Revolving Loan Fund › 3 AAC 106.210 - Rural electrification revolving loan fund application

Current through May 31, 2024
(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.