§ 8-1-2-88.7 — Telephone companies that are REA borrowers; rates sufficient to repay financial assistance

Indiana § 8-1-2-88.7

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 2: Utility Regulation

Text

7. (a) As used in this section, "financial
assistance" means:
(1) a loan or loan guarantee; or
(2) a lien accommodation provided to secure a loan made by
another lender;
that is made by the Rural Electrification Administration of the United
States Department of Agriculture (REA) or by the Rural Telephone
Bank.
(b) As used in this section, "REA borrower" means a telephone
company subject to this chapter that is the recipient of financial
assistance.
(c) An REA borrower shall charge rates sufficient to enable the
REA borrower to:
(1) satisfy its reasonable expenses and obligations; and
(2) earn a rate of return on the property sufficient to cover the
REA borrower's cost of capital, including any financial assistance
and the interest thereon.
(d) So long as there remains any unpaid portion of any financial
assistance associated with the property of an REA borrower, the rates
of the REA borrower shall be set at a level sufficient to repay the
financial assistance regardless of any change in the status of the
property, including the full or partial retirement of the property or any
other change in the status of the property.

Legislative History

As added by P.L.74-1991, SEC.1. Amended by P.L.27-2006, SEC.5.