BEFORE THE PUBLIC SERVICE COMMISSION OF THE STATE OF WYOMING
IN THE MATTER OF THE APPLICATION OF ) POWDER RIVER ENERGY CORPORATION FOR ) AUTHORITY TO BORROW $14,416,735 ) FROM COBANK FOR THE PURPOSE OF REFINANCING ) RURAL UTILITIES SERVICE DEBT AND AUTHORITY ) TO EXECUTE AGREEMENTS TO SECURE THE ) AFOREMENTIONED LOAN )
DOCKET NO. 10014-138-CS-12
APPLICATION Powder River Energy Corporation (the Cooperative), Sundance, Wyoming respectfully submits its application to the Wyoming Public Service Commission (the Commission) for approval to enter into agreements and execute documents which allow the Cooperative to borrow up to fourteen million, four hundred sixteen thousand, seven hundred thirty-five ($14,416,735) from CoBank and utilize said funds to prepay RUS debt. In support of this application, the Cooperative states: 1.
The Applicant is a non-profit electric cooperative organized and existing under,
and by virtue of, the laws of the State of Wyoming. The Cooperative is a public utility as defined in Wyoming Statute §37-1-101(a) (vi) (C), and under authority granted by the Commission, furnishes electric utility service to its members in the counties of Campbell, Crook, Johnson, Sheridan and Weston in the State of Wyoming. 2.
The Cooperative’s Board of Directors, through Resolution No. 2012-02 (Exhibit
A), authorized action to execute documents necessary to procure financing from
CoBank of $14,416,735 in order to complete the refinancing of RUS debt. 3.
CoBank has provided an executable Promissory Note (Exhibit B) designating a
loan to the Cooperative in the amount of $14,416,735 at a fixed rate of 3.67%. 4.
The CoBank loan will be utilized to pay off RUS debt which carries a blended
interest rate of 4.97%. 5.
The CoBank loan matures in March 2034, which is consistent with the maximum
term of the RUS notes being prepaid. 6.
The Cooperative proposes to execute the following documents and
secure the CoBank loan:
Promissory Note and Single Advance Term Loan Supplement (Exhibit B)
Application for Credit (Exhibit C)
Request For Loan (Exhibit D)
Notification of Refinancing (Exhibit E)
The Cooperativeâ€™s 2011 year-end December RUS Form 7 (Exhibit F) is
provided. Operational ratios for the year-end 2011 are provided below.
Equity as a percent of assets
The Cooperativeâ€™s long-term debt balance is not impacted as the amount
proposed to be borrowed offsets existing debt to be refinanced. 2
The following exhibits are attached to the application: Exhibit A
Resolution 2012-02 authorizing refinancing of RUS debt
Promissory Note and Single Advance Term Loan Supplement
Application for Credit
Request For Loan
Notification of Refinancing
The Cooperativeâ€™s RUS Form 7 for December 2011
Securities Test Calculation
WHEREFORE, the Cooperative respectfully requests that the Commission enter an order authorizing the Cooperative to enter into agreements and execute all documents, which allow the Cooperative to obtain the aforementioned loan from CoBank, and utilize said funds to prepay RUS debt. Dated at Sundance, Wyoming this 15th day of March 2012.
POWDER RIVER ENERGY CORPORATION
Michael E. Easley Chief Executive Officer