TELCO/RHG
Decision 02-06-040 June 27, 2002
BEFORE THE PUBLIC UTILITITES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of CAL-ORE )
TELEPHONE COMPANY U-1006-C, for an Order )
Authorizing it to Issue Notes in an Amount not ) Application 02-01-005
Exceeding $6,711,750, and to Execute a Related ) (Filed January 2, 2002)
Agreement and Supplemental Security Instruments. )
)
OPINION
Summary of Decision
This decision grants Cal-Ore Telephone Co. (Cal-Ore) the authority requested in Application (A.) 02-01-005.
Cal-Ore requests authority pursuant to §§ 818 and 851 of the Public Utilities (PU) Code to enter into a loan agreement with the Rural Utilities Service (RUS) and the Rural Telephone Bank (RTB) and to issue notes in an amount not exceeding $6,711,750.
The proceeds of the issuance are to be used for expansion and improvement of Cal-Ore's facilities.
Notice of the filing of the Application appeared on the Commission's Daily Calendar of January 10, 2002. No protests have been received.
Background
Cal-Ore, a California corporation, is a public utility under the jurisdiction of this Commission, and provides telephone services to portions of Siskiyou and Modoc Counties, and the cities of Dorris and Tulelake, California. The property owned by Cal-Ore and devoted to telephone services is comprised of pole lines, wire, cable, lands, easements, central office equipment, buildings and other pertinent equipment necessary for the rendition of telephone service.
Pursuant to the Application, Cal-Ore has experienced and is experiencing an increasing demand for higher grades and greater quantity of telephone services provided by it. This demand requires the expansion and improvement of its facilities.
Pursuant to its Income Statement for the fiscal year ended June 30, 2001, shown as Exhibit B to the Application, Cal-Ore reported total operating revenues of $4,633,982 and net income before taxes of $1,332,395.
Cal-Ore's Balance Sheet at June 30, 2001, shown also as part of Exhibit B, is summarized as follows:
Assets and other Debits Amount
Current Assets $ 2,847,283
Non-current Assets 3,442,055
Net Property, Plant, and Equipment 5,631,122
Total $11,920,460
Liabilities and other Credits
Current Liabilities $ 696,214
Long-term Debt 3,235,870
Other Liabilities 173,472
Stockholders' Equity 7,814,904
Total $11,920,460
