RUS Form 740c Cost Estimates and Loan Budget for Electric Borrowers

RUS Electric Loan Application and Related Reporting Burdens

RUS Form 740c with Useful Life Calculation Worksheet.xlsx

RUS Electric Loan Application and Related Reporting Burdens

OMB: 0572-0032

Document [xlsx]

Download: xlsx | pdf

Overview

Burden Statement
State breakdown
Sheet1
Sheet 1A
Sheet 2
Distribution Reimbursement
Sheet 3
Transmission Reimbursement
Smart Grid
Sheet 4
Useful Life Certification
Updated Worksheet
Guidance
Clarification
7CFR 1710.501
7CFR 1710.115
Instruction on Reimb miles
Pg1 Instr
Pg2 Instr
Pg3 Instr
Pg4 Instr

Sheet 1: Burden Statement

BURDEN STATEMENT:

A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB Control Number. The OMB Control Number for this information collection is 0572-0032. Public reporting for this collection of information is estimated to be approximately 10 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, completing and reviewing the collection of information.

All responses to this collection of information are voluntary. However, in order to obtain or retain a benefit, the information in this form is required by 7 CFR part 1710. Rural Development has no plans to publish information collected under the provisions of this program. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to: Information Collection Clearance Officer, Rural Development Innovation Center, Regulations Management Division at ICRMTRequests@usda.gov

Sheet 2: State breakdown


Attachment to RUS Form 740C - Reimbursement to General Funds and State Distribution Disclosures

Reimbursement to general funds includes:
In SD includes 20 OH services, 7 URD services and 2.4 miles of OH and 1.12 miles of URD
In NE includes 4 OH services, 2 URD services and .48 miles of OH and .32 miles of URD

In SD NEW facilities breakdown is $7,157,484 break down by:
New Member Extensions - 436 member extensions for 53.8 miles totaling $1,635,064
System Improvements - $5,522,420
In SD new facilities plus inclusion of reimbursement to general funds is $8,376,957

In NE NEW facilities breakdown is $4,398,580
New Member Extensions - 96 member extensions for 11.8 miles totaling $358,916
System Improvements - $4,039,664
In NE new facilities plus inclusion of reimbursement to general funds is $4,827,043

Total NEW facilities is $11,556,064
Total new facilities plus inclusion of reimbursement to general funds is $13,204,000
Cooperative serves 616 miles of line in NE and 1726 miles of line in SD for a total of 2342 as of December 2007.

Sheet 3: Sheet1


	This data will be used by RUS to review your financial situation. Your response is required (7 USC 901 et seq.) and is not confidential.
							Form Approved
	USDA-RUS						OMB No. 0572-0032; Expires 1/30/2025

	COST ESTIMATES AND LOAN BUDGET					BORROWER AND LOAN DESIGNATION

	FOR ELECTRIC BORROWERS
To: U.S. Dept. of Agriculture, RUS, Washington, D. C. 20250						COST ESTIMATES AS OF: (Month, Year)
INSTRUCTIONS		See tabs "Pg1 Instr" through "Pg4 Instr"

SECTION A. COST ESTIMATES							LOAN PERIOD			4	YEARS
						2020-2023 CWP inclusive of Amendment(s) #X

1. DISTRIBUTION								COST ESTIMATES		RUS USE ONLY
100	a. New Line: (Excluding Tie-Lines)
	Construction		Consumers			Miles
101	URD 1 PH		0	@	$0	0.00			$0
	URD 3 PH		0	@	$0	0.00			$0
102	OH 1 PH		0	@	$0	0.00			$0
	OH 3 PH		0	@	$0	0.00			$0
	Total Consumers. . . . . . . . . . . . .		0		Total Miles . . . . . . . . . . . . . . . . . . . . . .	0.00
					Less Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . .				0
		Subtotal (New Line - code 100). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							$0


200	b. New Tie-Lines
		Line Designation				Miles
201						0.00			$0
202						0.00			0
203						0.00			0
204						0.00			0
	Subtotal Code 200 from page 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .					0.00			0
	Subtotal Code 200 (Includes subtotals from pages 1A). . . . . . . . . . . . . . . . . .					0.00			$0

300	c. Conversion and Line Changes
		Line Designation				Miles
301						0.00			$0
302						0.00			0
303						0.00			0
304						0.00			0
305						0.00			0
306						0.00			0
307						0.00			0
308						0.00			0
309						0.00			0
310						0.00			0
	Subtotal Code 300 from page 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .					0.00			0
	Subtotal Code 300 . . . . . . . . . . . . . . . . .					0.00			$0

400	d. New Substations, Switching Stations, Metering Points, etc.
		Station Designation			kVA	kV to kV
401									$0
402									0
403									0

		Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .							$0
	RUS FORM 740c		(V5,5/29/09)							PAGE 1 OF 4 PAGES

Sheet 4: Sheet 1A

COST ESTIMATE AND LOAN BUDGET FOR ELECTRIC BORROWERS					BORROWER AND LOAN DESIGNATION

	SECTION A. COST ESTIMATES (Page 1 Continuation Sheet)					BORROWER'S		RUS USE ONLY
						COST ESTIMATES


200	b. New Tie-Lines (Continued)
			Line Designation		Miles
207					0.00		$0
208					0.00		0
209					0.00		0
210					0.00		0
211					0.00		0
212					0.00		0
213					0.00		0
214					0.00		0
215					0.00		0
216					0.00		0

			Subtotal Code 200 (transfers to page 1) . . . . . . . . . . . . . . . . . . . . . . . . .		0.00		$0

300	c. Conversion and Line Changes (Continued)
			Line Designation		Miles
311					0.00		$0
312					0.00		0
313					0.00		0
314					0.00		0
315					0.00		0
316					0.00		0
317					0.00		0
318					0.00		0
319					0.00		0
320					0.00		0
321					0.00		0
322					0.00		0
323					0.00		0
324					0.00		0
325					0.00		0
326					0.00		0
327					0.00		0
328					0.00		0
329					0.00		0
330					0.00		0
331					0.00		0
332					0.00		0
333					0.00		0
334					0.00		0
335					0.00		0
336					0.00		0
337					0.00		0
338					0.00		0
339					0.00		0
340					0.00		0
341					0.00		0
342					0.00		0
343					0.00		0
344					0.00		0
345					0.00		0
346					0.00		0
347					0.00		0
348					0.00		0
349					0.00		0
350					0.00		0
351					0.00		0
352					0.00		0
353					0.00		0
354					0.00		0

			Subtotal Code 300 (transfers to page 1). . . . . . . . . . . . . . . . . . . . .		0.00		$0


	RUS Form	740c		(V5,5/29/09)				Page 1A of 4

Sheet 5: Sheet 2

							BORROWER AND LOAN DESIGNATION

	SECTION A. COST ESTIMATES (cont.)									BORROWER'S		RUS USE ONLY
										COST ESTIMATES
500	e. Substation, Switching Station, Metering Point Changes
	Station Designation					Description of Changes
501											$0
502											0
503											0
504											0
505											0
506											0
507											0
508											0
509											0

			Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .								$0
600	f. Miscellaneous Distribution Equipment
601	Transformers and Meters
	Construction		Transformers
	URD 1 PH		0	@	$0						0
	URD 3 PH		0	@	$0						0
	OH 1 PH		0	@	$0						0
				Meters
	1 PH		0	@	$0						0
	3 PH		0	@	$0						0
	1 PH AMR Unit		0	@	$0						0
	3 PH AMR Unit		0	@	$0						0

			Subtotal code 601 . . . (included in total of all 600 codes below)								$0

602	Sets of Service Wires to increase Capacity										0
603	Sectionalizing Equipment										0
604	Regulators										0
605	Capacitors										0
606	Miscellaneous Replacements				Poles and Associated Hardware Replacements:						0
607	Miscellaneous Replacements										0
608	Non-site Specific URD to URD or OH to OH Conductor Replacements in the same right of way										0
609	Unassigned										0
610	Unassigned										0
611	Unassigned										0
612	Step Up/Down Transformers										0
613	Min/Max Meters										0
614	Unassigned										0
615	Communications (other than Fiber)										0
615	Communications (Fiber)										0
			Subtotal ALL 600 codes . . . . . . . . . . . . . . . . . . . . . . . . .								$0
700	g. Other Distribution Items
701	Engineering Fees										$0
702	Security Lights										0
703	Reimbursement of General Funds				Consumers	0	Miles	0.00			0
704	Load Management & SCADA										0
705	Automated Meter Reading Equip.										0
706	Broadband over Power line (BPL)										0
707	GIS Hardware Costs										0
708	GIS Software Costs										0
709	GIS Field Inventory Costs										0
			Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .								$0

						TOTAL DISTRIBUTION. . . . . . . . .					$0

800	2. Transmission
	a. New Line
	Line Designation				Voltage		Wire Size		Miles
801											$0
802											0
803											0
804											0
805											0
806											0
807											0
808											0
			Subtotal Code 800						0.00		$0

	RUS Form	740c	(V5,5/29/09)								PAGE 2 OF 4 PAGES

Sheet 6: Distribution Reimbursement


Borrower & Loan Designation:							loan cut-off date:		Dec-99
ATTACHMENT TO RUS FORM 740C - REIMBURSEMENT SCHEDULE
DISTRIBUTION FACILITIES - BUDGET PURPOSE NO. 1
An analysis of completed work plan projects was performed to properly identify those projects in the work
plan which are now possible reimbursement projects and those that continue to be proposed projects.
	WORK ORDER INVENTORIES						SPECIAL EQUIPMENT SUMMARIES
	WORK ORDER INVENTORIES						SPECIAL EQUIPMENT SUMMARIES
WORK ORDER INVENTORY SUMMARY				# (not $) CONSUMER CONNECTS: Code 100's				MONTH		AMOUNT
WORK ORDER INVENTORY SUMMARY					MILES BUILT: Code 100 & 200's
*YTBS/P	NUMBER	MONTH	AMOUNT		MILES BUILT: Code 100 & 200's		*YTBS/P
	224	Jan-07						Jan-07
	225	Feb-07						Feb-07
	226	Mar-07						Mar-07
	227	Apr-07						Apr-07
	228	May-07						May-07
	229	Jun-07						Jun-07
	230	Jul-07						Jul-07
	231	Aug-07						Aug-07
	232	Sep-07						Sep-07
	233	Oct-07						Oct-07
	234	Nov-07						Nov-07
	235	Dec-07						Dec-07
	248	Jan-08						Jan-08
	249	Feb-08						Feb-08
	250	Mar-08						Mar-08
	251	Apr-08						Apr-08
	252	May-08						May-08
	253	Jun-08						Jun-08
	254	Jul-08						Jul-08
	255	Aug-08						Aug-08
	256	Sep-08						Sep-08
	257	Oct-08						Oct-08
	258	Nov-08						Nov-08
	259	Dec-08						Dec-08
	260	Dec-08 A						Dec-08 A
	261	Dec-08 B						Dec-08 B
	262	Dec-08 C						Dec-08 C
	263	Dec-08 D						Dec-08 D
	264	Dec-08 E						Dec-08 E
	265	Dec-08 F						Dec-08 F
	266	Dec-08 G						Dec-08 G
	267	Dec-08 H						Dec-08 H

	Subtotal							Subtotal
Work Orders Inventories . . . . . . . . . . .			$0.00	0	0.00		Special Equipment Summaries . . .			$0.00



			GRAND TOTAL . . . . . . . . . . . . . . . . . . .			$-				Rounded DOWN
!! Submitted to DC but OPMRA has not posted them to the Form 605 yet.
* YTBS/P - Yet to be Submitted or Partial. Insert a "Y" for Yet to be Submitted or "P" is the Work Order Summary or SE Summary is a Partial
**Select one SES or WOI to round down and designate with "P" to make round number
RUS Form 740c Attachment		(V5,5/29/09)						Distribution Reimbursement

Sheet 7: Sheet 3

COST ESTIMATE AND LOAN BUDGET FOR ELECTRIC BORROWERS							BORROWER AND LOAN DESIGNATION

	SECTION A. COST ESTIMATES				(cont.)					BORROWER'S		RUS USE ONLY
										COST ESTIMATES
900	b. New Substation, Switching Station, etc.
	Station Designation			kVA				kV TO kV

901											$0
902											0
903											0
904											0
905											0
906											0
907											0
			Subtotal Code 900 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .								$0
1000	c. Line and Station Changes
	Line/Station Designation			Description of Changes
1001											$0
1002											0
1003											0
1004											0
1005											0
1006											0
1007											0
1008											0
1009											0

			Subtotal Code 1000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .								$0
1100	d. Other Transmission Items
1101	Unassigned										$0
1102	Unassigned										0
1103	Reimbursement of General Funds					Miles		0.00			0
1104	Pole and Associated Hardware Replacement										0
1105	Other Transmission										0
			Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .								$0

				TOTAL TRANSMISSION. . . . . . . . . . . .							$0

1200	3. GENERATION (including Step-up Station at Plant)
1201	a Fuel			Nameplate Rating					kW		$0
1202	b.										0


				TOTAL GENERATION. . . . . . . . . . . . . .							$0


1300	4. HEADQUARTERS FACILITIES
1301	a. New or additional Facilities				(Attach RUS Form 740g)						$0
1302	b.										0
1303	c. Reimbursement of General Funds										0




			TOTAL HEADQUARTERS FACILITIES . . . . . . . . . . . . . . . .								$0

	RUS Form 740c	(V5,5/29/09)									PAGE 3 OF 4 PAGES

Sheet 8: Transmission Reimbursement


Borrower & Loan Designation:						loan cut-off date:	Dec-99
ATTACHMENT TO RUS FORM 740C - REIMBURSEMENT SCHEDULE
TRANSMISSION FACILITIES - BUDGET PURPOSE NO. 2
An analysis of completed work plan projects was performed to properly identify those projects in the work
plan which are now possible reimbursement projects and those that continue to be proposed projects.
	WORK ORDER INVENTORIES
	WORK ORDER INVENTORIES
WORK ORDER INVENTORY SUMMARY
WORK ORDER INVENTORY SUMMARY					MILES BUILT: Code 800's
*YTBS/P	NUMBER	MONTH	AMOUNT		MILES BUILT: Code 800's
	224	Jan-07
	225	Feb-07
	226	Mar-07
	227	Apr-07
	228	May-07
	229	Jun-07
	230	Jul-07
	231	Aug-07
	232	Sep-07
	233	Oct-07
	234	Nov-07
	235	Dec-07
	248	Jan-08
	249	Feb-08
	250	Mar-08
	251	Apr-08
	252	May-08
	253	Jun-08
	254	Jul-08
	255	Aug-08
	256	Sep-08
	257	Oct-08
	258	Nov-08
	259	Dec-08
	260	Dec-08 A
	261	Dec-08 B
	262	Dec-08 C
	263	Dec-08 D
	264	Dec-08 E
	265	Dec-08 F
	266	Dec-08 G
	267	Dec-08 H


Subtotal Work Order Inventories . . . . . . . . . . .			$0.00		0.00



**Select one WOI to round down and designate with "P" to make round number
!! Submitted to DC but OPMRA has not posted them to the Form 605 yet.
* YTBS/P - Yet to be Submitted or Partial. Insert a "Y" for Yet to be Submitted or "P" is the Work Order Summary is a Partial

RUS Form 740c Attachment		(V5,5/29/09)		Transmission Reimbursement

Sheet 9: Smart Grid

Insert snip from CWP with Smart Grid Summary as example below:

Sheet 10: Sheet 4

COST ESTIMATE AND LOAN BUDGET FOR ELECTRIC BORROWERS

BORROWER AND LOAN DESIGNATION

SECTION A. COST ESTIMATES

(cont.)

BORROWER'S

RUS USE ONLY

COST ESTIMATES

1400

5. ACQUISITIONS

1401

Consumers

Miles

1402

1403

c. Reimbursement of General Funds

TOTAL ACQUISITIONS. . . . . . . .

1500

6. ALL OTHER

1501

Unassigned

1502

Unassigned

1503

Unassigned

1504-1511

Energy Efficiency and Conservation

1512

Unassigned

1513

Reimbursement of General Funds

TOTAL ALL OTHER. . . . . . . . . . .

SECTION B. SUMMARY OF AMOUNTS AND SOURCES OF FINANCING

1. GRAND TOTAL - ALL COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. FUNDS AND MATERIALS AVAILABLE FOR FACILITIES

a. Loan Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b. Materials and Special Equipment . . . . . . . . . . . . . . . . . . . . . . . . .

c. General Funds . . . . . . . . . . . . . . .

Purpose 1

Purpose 2

Purpose 3

Purpose 4

Purpose 5

Purpose 6

Total General Funds Applied . . . . . . . . . . . . . . . . . . . . . . . . . . .

d. Total Available Funds and Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. NEW FINANCING REQUESTED FOR FACILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. RUS LOAN REQUESTED FOR FACILITIES (rounded DOWN to nearest $1,000). . . . . . . . . . . .

5. TOTAL SUPPLEMENTAL LOAN REQUESTED . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . .

N/A

Name of Supplemental Lender

6. CAPITAL TERM CERTIFICATE PURCHASES (CFC Loan only) . . . . . . . . . . . .

7. SUPPLEMENTAL LOAN REQUESTED FOR FACILITIES. . . . . . . . . . . . . . . . . . . . . . . . .

8. 100% SUPPLEMENTAL LOANS

(SEE RUS Bulletin 20-14)*

* Identify in section A by budget purpose and separate subtotals.

SECTION C. CERTIFICATION

We, the undersigned, certify that:

1. Upon completion of the electrical facilities contained herein and any others uncompleted at this time but for which

financing is available, the system will be capable of adequately and dependably serving the projected load for the

loan period as contained in our current RUS approved Power Requirement Study and Construction Work Plan.

2. Negotiations have been or will be initiated with our power supplier, where necessary, to obtain new delivery points

and/or additional capacity at existing ones to adequately supply the projected load upon which this loan application

is based.

3. The data contained herein and all supporting documents have, to the best of my knowledge, been prepared correctly

and in accordance with 7 CFR 1710.401(a)(3)

Date

Signature of Borrower's Manager

Date

Signature of Borrower's President

Corporate Name of Borrower

GFR Initials

RUS Form 740c

(V5,5/29/09)

PAGE 4 OF 4 PAGES

Sheet 11: Useful Life Certification

				Attachment to 740c

				Borrower and Loan Designation


			STATEMENT


Statement certifying that at least 90% of the Loan funds are for facilities with a useful life of
33 years or longer as required by 7 CFR 1710.115.


		To facilitate the determination of the final maturity for this RUS Loan,
		0
		does hereby certify that:

	X	At least 90% of the Loan funds requested as part of this loan application
		and included on the RUS Form 740c (Cost Estimates and Loan Budget
		for Electric Borrowers) are for facilities with an anticipated useful life
		of 33 years or longer.

		Less than 90% of the Loan funds requested as part of this loan application
		and included on the RUS Form 740c (Cost Estimates and Loan Budget
		for Electric Borrowers) are for facilities with an anticipated useful life of 33
		years or longer. A schedule has been attached to this statement listing the
		facilities with an anticipated useful life of less than 33 years, the anticipated
		useful life of those facilities and the associated cost estimates (see attached).






Date			Title:	General Manager

Sheet 12: Updated Worksheet






New Financing Requested for Facilities (740c pg 4, 1. GRAND TOTAL - ALL COSTS 3. New Financing requested for facilities):			$-
	Useful Life in Years	Amount	$ x Years
Purpose #1: Distribution Facilities (Enter Amounts from 740c)
Code 100: New Lines Overhead & Underground (See Acct. Nos. 365, 366, 367)	41.5	$-	0
Code 200: New Tie-Lines (See Acct. Nos. 365, 366, 367)	41.5	$-	0
Code 300: Conversion and Line Changes (See Acct. Nos. 365, 366, 367)	41.5	$-	0
Code 400: New Substations, Switching Stations and Metering Points, etc. (See Acct. No. 362)	37	$-	0
Code 500: Substation, Switching Station and Metering Point Changes (See Acct. No. 362)	37	$-	0
Code 601: AMR/AMI Meters and/or AMR Modules/ Devices installed in Meters	15	$-	0
Code 601: Non-AMR/AMI Meters (See Acct. No. 370)	34	$-	0
Code 601: Distribution Transformers (See Acct. No. 368)	38	$-	0
Codes 602, 603, 604, 605, 606, 607, & 608: (Total of these 7 Codes)	35	$-	0
Code 615: Communications (All except Fiber)	15	$-	0
Code 615: Communications (Fiber Only)	40	$-	0
All Other Code 600 Items not listed: (Total of Remaining 600 Code Projects not listed)	35		0
Code 702: Security Lights (See Acct. 373)	25	$-	0
Code 703: General Funds Reimbursement (Budget Purpose 1 - Distribution)	35	$-	0
Code 704: Load Management/SCADA	15	$-	0
Code 705: AMR/AMI Equipment except Meters and Retrofits	15	$-	0
Code 706: Broadband over Power Line (BPL)	15	$-	0
Code 707 (Formerly Code 1501): GIS Hardware and Device Costs	5	$-	0
Code 708 (Formerly Code 1502): GIS Software, Data Migration and Integration Costs	5	$-	0
Code 709 (Formerly Code 1503): Field Inventory & Data Collection Costs less 25% of overall costs	20	$-	0
All Other Code 700 Items not listed: (Total of Remaining 700 Code Projects not listed)	30		0

Purpose #2: Transmission Facilities (Enter Amounts from 740c)
Code 800: New Transmission Lines	43	$-	0
Code 900: New Transmission Substations, Step-Down Stations, Switching Stations	37	$-	0
Code 1000: Line and Station Changes	43	$-	0
Code 1103: General Funds Reimbursement (Budget Purpose 2 - Transmission)	35	$-	0
Code 1104: Pole and Associated Hardware Replacement	35	$-	0
All Other Code 1100 Items not listed: (Total of Remaining 1100 Code Projects not listed)	35		0

Purpose #3: Generation Facilities (Enter Amounts from 740c)
Code 1200: Generation Facilities (Use Separate Spreadsheet to determine Useful Life)		$0	0

Purpose #4: Headquarters Facilities (Enter Amounts from 740c)
Code 1300: Headquarters Facilities	50	$0	0

Purpose #5: Acquisitions (Enter Amount from 740c)
Code 1400: Acquisitions (Use Separate Spreadsheet to determine Useful Life)		$0	0

Purpose #6: All Other (Enter Amounts from 740c)
Code 1500: All Other (Useful Life to be determined with RUS assistance)		$0	0


Calculated Useful Life Rounded up to nearest whole number		0	0	#DIV/0!	years


Final Calculated Useful Life With Two Additional Years Added Per 7 CFR Part 1710.115 (b)
				#DIV/0!	years


Final Maturity Period utilizing Ninety Percent Test Criteria				#DIV/0!	years

Sheet 13: Guidance

Sheet 14: Clarification

Please note either worksheet may be used to. If the shorter (older) version produces a useful life less than 35 years, using the more robust may produce more favorable results albeit more keying of data.

From: Colson, Michelle - RD, Pierre, SD
Sent: Friday, November 9, 2018 8:54 AM
To: RD-RUS-Electric-OLOA-Field <RD-RUS-Electric-OLOA-Field@usdagcc.onmicrosoft.com>; Elliott, Jim - RD, Washington, DC <Jim.Elliott@wdc.usda.gov>
Cc: Solano, Kenneth - RD, Washington, DC <Kenneth.Solano@wdc.usda.gov>; Flanigan, Emily - RD, Washington, DC <Emily.Flanigan@wdc.usda.gov>; Waddell, Colin - RD, Washington, DC <Colin.Waddell@wdc.usda.gov>; Gaby, Devin - RD, Washington, DC <Devin.Gaby@wdc.usda.gov>; Saba, Philip - RD, Washington, DC <Philip.Saba@wdc.usda.gov>; Tuffuo, Ned - RD, Washington, DC <Ned.Tuffuo@wdc.usda.gov>; Roscoe, Timothy - RD, Washington, DC <Timothy.Roscoe@wdc.usda.gov>; Boyette, Ken - RD, Washington, DC <Ken.Boyette@wdc.usda.gov>
Subject: Useful life certification statement and useful life calculation worksheet clarifications

GFRs and OLOA Engineering Staff,
As coordinated with and through Ken Solano, please find clarifying information below.

1) If a calculation worksheet is presented with the 740C form in conjunction with a loan, then the useful life certification statement is NOT required. True or False?
TRUE. In RD Apply the useful life worksheet would be uploaded here:
in place of the useful life certification statement.

2) The calculation worksheet is required to be presented by the Customer and/or GFR with every loan. True or False?
FALSE. Either a statement certifying that at least 90 percent of the loan funds are for facilities that have a useful life of 33 years or longer, or a schedule showing the costs and useful life of those facilities with a useful life of less than 33 years.

Definitions/examples attached:
Useful Life Certification Statement

Useful Life Calculation Worksheet (old)

Useful Life Calculation Worksheet (updated)


7CFR 1710.501(a)(3)(ii) Useful life of facilities financed by the loan. Form 740c must include, as a note, either a statement certifying that at least 90 percent of the loan funds are for facilities that have a useful life of 33 years or longer, or a schedule showing the costs and useful life of those facilities with a useful life of less than 33 years. This statement or schedule will be used to determine the final maturity of the loan. See §1710.115.

7CFR 1710.115 Final maturity
(b) Loans made or guaranteed by RUS for facilities owned by the borrower generally must be repaid with interest within a period, up to 35 years, that approximates the expected useful life of the facilities financed. The expected useful life shall be based on the weighted average of the useful lives that the borrower proposes for the facilities financed by the loan, provided that the proposed useful lives are deemed appropriate by RUS. RUS Form 740c, Cost Estimates and Loan Budget for Electric Borrowers, submitted as part of the loan application must include, as a note, either a statement certifying that at least 90 percent of the loan funds are for facilities that have a useful life of 33 years or longer, or a schedule showing the costs and useful life of those facilities with a useful life of less than 33 years. If the useful life determination proposed by the borrower is not deemed appropriate by RUS, RUS will base expected useful life on an independent evaluation, the manufacturer's estimated useful-life or RUS experience with like-property, as applicable. Final maturities for loans for the implementation of programs for demand side management and energy resource conservation and on and off grid renewable energy sources not owned by the borrower will be determined by RUS. Due to the uncertainty of predictions over an extended period of time, RUS may add up to 2 years to the composite average useful life of the facilities in order to determine final maturity.

Thank you,
Michelle Colson\|Supervisory General Field Representative
Rural Development \| Rural Utilities Service \| Electric Program
Cell: 701.629.2585
http://www.rd.usda.gov/programs-services/all-programs/electric-programs \| "Committed to the future of rural communities"
USDA is an equal opportunity provider, employer, and lender.

Sheet 15: 7CFR 1710.501

7CFR 1710.501(a)(3)
(ii) Useful life of facilities financed by the loan. Form 740c must include, as a note, either a statement certifying that at least 90 percent of the loan funds are for facilities that have a useful life of 33 years or longer, or a schedule showing the costs and useful life of those facilities with a useful life of less than 33 years. This statement or schedule will be used to determine the final maturity of the loan. See §1710.115.

Sheet 16: 7CFR 1710.115

Sheet 17: Instruction on Reimb miles

From: Colson, Michelle - Pierre, SD
Sent: Tuesday, September 14, 2010 10:01 AM
To: Johnson, Aaron - Penfield, IL; Bowers, Dan - Boise, ID; Schlaeppi, Denver - Billings, MT; Doyle, Mark - Cavalier, ND; Marchegiani, Eric - Eagle River, AK; Norman, Mike - Lexington, KY; Bormann, Pat - Bode, IA; Rhein, James - West Norriton, PA; Jensen, Robyn - Prescott, WI; Richardson, Richelle - Spotsylvania, Va; Bohan, Timothy - Bismarck, ND
Cc: Philpott, Charles - Washington, DC; Jenkins, Brian - Washington, DC; Badin, Joe - Washington, DC
Subject: FW: # of miles being reported under the reimbursement to general funds on the 740C Form

Greetings,

If you start reading this email from the bottom up, it should make sense as to the content and final advisement of what is to be the proper miles of line being reported on the Form 740C under the reimbursement to general funds. Just thought I'd pass along in case anyone else was interested and to provide apologies to those GFR's who I've provided "training" to since I've been doing it incorrectly since 2006. I am off to update my notes on the 740C now….

My apologies-
Michelle Colson\|General Field Representative
Rural Development \| Rural Utilities Service \| Electric Program
PO Box 219\|Pierre, SD 57501

website: www.usda.gov/rus

Committed to the future of rural communities
Estamos dedicados al futuro de las comunidades rurales


From: Colson, Michelle - Pierre, SD
Sent: Tuesday, September 14, 2010 9:48 AM
To: Philpott, Charles - Washington, DC
Cc: Johnson, Aaron - Penfield, IL; Badin, Joe - Washington, DC; Jenkins, Brian - Washington, DC
Subject: RE: # of miles being reported under the reimbursement to general funds on the 740C Form

Thank you, Charlie.

I'll be sending out to all the NRD GFR's so we are all on the same page.

Michelle Colson\|
From: Philpott, Charles - Washington, DC
Sent: Tuesday, September 14, 2010 9:44 AM
To: Colson, Michelle - Pierre, SD
Cc: Johnson, Aaron - Penfield, IL; Badin, Joe - Washington, DC; Jenkins, Brian - Washington, DC
Subject: RE: # of miles being reported under the reimbursement to general funds on the 740C Form

Michelle,
The new miles of lines associated with the reimbursement of general funds are identified/defined as follows:

1	Miles of line built to connect new customers- Code 100
2	Miles of line built as tie line-Code 200
3	Miles of line built as new transmission line-Code 800

Note that these are "new" line miles and not miles of line associated with work done on "existing" line-Code 300 & 1000 or Code 600 series-line replacements.

Let me know if further information is needed.
Charles
From: Colson, Michelle - Pierre, SD
Sent: Thursday, September 02, 2010 2:32 PM
To: Philpott, Charles - Washington, DC
Subject: # of miles being reported under the reimbursement to general funds on the 740C Form

Charles,

In Denver it became apparent that there are a few different "definitions" that GFR's are using to report the # of miles in the reimbursement to general funds on the 740C Form. This was added as a reporting requirement for the GFR's in January of 2006. Please see the email below for the only guidance provided that I can find in my records.

Please advise me which of the below (or if none, please provide correct information) should be used to populate this information:

A) For every eligible 219 form shown on the reimbursement to general funds schedule include the gross number of miles built for all 740C Codes. (based on below this would be 24 miles)
Example: WOI shows code 100 with 2 miles of new line to serve 2 new consumers and code 300 with 20 miles of new line replacing 20 miles of old line and Code 200 with 2 miles of new line.

B) For every eligible 219 form shown on the reimbursement to general funds schedule include the net number of miles built for all 740C Codes. (based on below this would be 4 miles)
Example: WOI shows code 100 with 2 miles of new line to serve 2 new consumers and code 300 with 20 miles of new line replacing 20 miles of old line and Code 200 with 2 miles of new line.

C) For every eligible 219 form shown on the reimbursement to general funds schedule include the gross number of miles built for Code 100's. (based on below this would be 2 miles)
Example: WOI shows code 100 with 2 miles of new line to serve 2 new consumers and code 300 with 20 miles of new line replacing 20 miles of old line and Code 200 with 2 miles of new line.

From: Elliott, Jim - Washington, DC
Sent: Wednesday, January 18, 2006 4:23 PM
To: Bohan, Timothy - Bismarck, DC; Johnson, Aaron - Penfield, IL 61862, DC; Richardson, Richelle - Washington, DC; Seaton, Albert - Clear Lake, IA; Um, Won - Ellicott City, DC; McDevitt, William - Columbus, DC; Norman, Mike - Lexington, DC; Colson, Michelle - Pierre, DC; Stanley, Kris - West St. Paul, DC; Schlaeppi, Denver - Billings, DC; Endres, David - Bloomington, DC; Bowers, Dan - Boise, DC
Cc: Jenkins, Brian - Washington, DC; Philpott, Charles - Washington, DC
Subject: New Loan Requirement
Importance: High
In order to track Electric Program performance (required by OMB), we are tracking new connects and new miles of line being added in each loan application. We have not been capturing this information in loans containing reimbursement up to this point (with the exception being 100 percent reimbursement loans). To this end, you will need to include a breakout of new consumer connects as well as miles of line tied to any reimbursement contained in any new loan request as well as submit this information to Engineering for any loans currently in-house.
Let me know if you have any questions.
James F. Elliott
Deputy Director
Northern Regional Division
Michelle Colson\|General Field Representative
Rural Development \| Rural Utilities Service \| Electric Program
PO Box 219\|Pierre, SD 57501

website: www.usda.gov/rus

Committed to the future of rural communities
Estamos dedicados al futuro de las comunidades rurales

Sheet 18: Pg1 Instr

		INSTRUCTIONS FOR PREPARATION OF RUS FORM 740c
			(See 7 CFR 1710, Subpart I, for Additional Information)

If additional space is required for any item, attach continuation sheets as needed.

Prepare an original and one copy of this form for submission to RUS as part of the loan application.

Insert the borrower and loan designation, the date used for preparation of cost estimates, and the number
of years the application is to cover.

SECTION A. COST ESTIMATES

The borrower should insert cost estimates only in the column titled "Borrower's Cost Estimates." RUS will
complete the column headed "RUS Use Only" when the borrower's cost estimate varies from RUS's.

Estimates should be obtained from a current construction Work Plan which is in agreement with an approved
long-range engineering study.

All estimates shown hereon should include material, labor and overhead costs, less any contributions in
aid of construction (i.e., NET COST).

Where reimbursement of general funds for completed construction is requested, insert the amount under the
appropriate budget purpose. On a separate sheet, itemize and describe the general fund expenditures to
be reimbursed, showing applicable budget purpose and amount per item.

1.	DISTRIBUTION:

	a.	NEW LINE:
		Insert number of consumers, number of miles, and total estimated cost including R/W clearing.
		(Estimates for underground and overhead construction should be shown separately.) Do not duplicate
		costs shown separately in items 1.f. and 1.g. Indicate the number of total new consumers to be
		served and total of new miles to be constructed. (Miles of secondary, services and underbuild
		should be included in the pole line miles shown.)

	b.	NEW TIE-LINES:

		Show location by map reference and substation designation, line voltage (kV), conductor size and
		phasing, miles and estimated cost of each new tie-line. Also show whether the construction is
		overhead or underground. If there is insufficient space to itemize each tie-line, insert the
		total miles and estimated cost and give a description of each tie-line on an attached sheet.

	c.	CONVERSION AND LINE CHANGES:

		Show location by map reference and substation designation, indicate old and new conductor size and
		phasing, miles, and estimated cost. Also show whether the construction is overhead or under-
		ground. If there is insufficient space to itemize each conversion and line change, insert the
		total estimated cost and give a detailed description of each conversion and line change on an
		attached sheet.

	d.	NEW SUBSTATIONS, SWITCHING STATIONS, METERING POINTS, ETC.:

		For each new station, insert the station designation shown in the Construction Work Plan, the kVA
		rating, high and low side voltage classification, and estimated cost. (If procurement of station
		sites is to be financed with loan funds, the cost should be included in the estimate for the
		station.)

Sheet 19: Pg2 Instr

e.	SUBSTATION, SWITCHING STATION AND METERING POINT CHANGES:

	Identify each station by the designation shown in the Construction Work Plan and describe the
	changes to be made and the estimated cost.

f.	MISCELLANEOUS DISTRIBUTION EQUIPMENT:

	(1)	Show the number and the total estimated installed cost of all transformers and meters used
		to serve new and existing consumers in this loan. Furnish separate estimates for under-
		ground and overhead construction.

	(2)	Insert the number of sets of service wires and estimated cost in this loan application to
		increase the capacity of existing consumers.

	(3) - (5)
		Insert the estimated cost of new sectionalizing equipment, line voltage regulators and
		capacitors.

	(6)	Insert the net cost of ordinary replacements (installed cost of new facility less original
		cost of facility being replaced).

	(7) - (10)
		Use these lines to show the estimated cost of other distribution equipment not listed above.

g.	OTHER DISTRIBUTION ITEMS:

	(1)	Insert estimated cost of engineering fees (include details in the Construction Work Plan).
		Only those engineering costs associated with distribution facilities and not included in the
		cost estimates for items 1.a. through 1.f. should be included (i.e., long-range plans,
		sectionalizing studies, etc.).

	(2)	Insert the estimated cost of security lights.

	(3) and (4)
		Use these lines to show purpose, type, and estimated cost of other distribution items not
		listed above.

TOTAL DISTRIBUTION: Enter the sum of subtotals 1.a. through 1.g. above.

2.	TRANSMISSION:

	a.	NEW LINE:

		For each new line, insert the line designation (i.e., Westover to Shady Grove) as shown in the
		Construction Work Plan, line voltage (kV), wire size, miles, and total estimated cost including
		R/W clearing.

Sheet 20: Pg3 Instr

		b.	NEW SUBSTATIONS, SWITCHING STATIONS, ETC.:

			For each new station, insert the station designation as shown in the Construction Work Plan, kVA
			rating, high and low side voltage classification, and estimated cost. (New stations under this
			item should not be mistaken for new stations under Item 1 - Distribution. Any station not used
			for distribution purposes shall be considered a transmission station, except for the generating
			plant step-up substation which should be shown under Item 3.) If procurement of station sites
			is to be financed with loan funds, this cost should be included in the estimate for the station.

		c.	LINE AND STATION CHANGES:

			For each conversion or line change, insert the line or station designation as shown in the
			Construction Work Plan, a description of changes, and the total estimated cost.

		d.	OTHER TRANSMISSION ITEMS:

			(1)	Insert all cost anticipated for the purchase, and/or procurement of transmission line right-
				of-way except attorney fees and clearing, which should be shown under Items 6 and 2.a.,
				respectively.

			(2)	Insert the estimated cost of engineering fees (including details in the Construction Work
				Plan). Only those engineering costs associated with transmission projects, and not already
				included in the line and station cost estimates of item 2.a., b. and c., should be shown
				(i.e., environmental reports, system studies, etc.).

			(3) - (6)
				Use these lines to show purpose, type, and estimated cost of transmission items not listed
				above (i.e., transmission-related communications or control equipment, etc.).

TOTAL TRANSMISSION: Enter the sum of subtotals 2.a through 2.d. above.

3.	GENERATION (Including step-up station at plant):

	a.	Insert the kind of fuel to be used in the plant, the nameplate rating (kW), and the total esti-
		mated cost. (A detailed breakdown of each proposed generation project should be attached to
		this form, indicating the various items for which financing is requested. This breakdown should
		be in the form of, or supported by, an engineer's report.)

	b.	Use this line to show the estimated cost of generating facilities not included above.

TOTAL GENERATION: Enter the sum of items 3.a. and 3.b. above.

4.	HEADQUARTERS FACILITIES

	a.	NEW OR ADDITIONAL FACILITIES:

		Insert total estimated cost. Complete and attach an original and one copy of RUS Form 740g for
		each project. (See instructions on reverse of RUS form 740g.)

	b.	Use this line to show the estimated cost of headquarters facilities not included above.

TOTAL HEADQUARTERS FACILITIES: Enter the total of items 4.a. and 4.b. above.

5.	ACQUISITIONS:

	a.	Insert the number of consumers, miles or line to be acquired, and the total cost of the proposed
		acquisition. On a separate sheet, itemize: (1) the approximate purchase price of the acquisition;
		(Give breakdown and apportioned purchase price of distribution, transmission and/or generating
		plant facilities.) (2) a description and estimated costs of rehabilitation and integration;
		(3) Engineering fees.

	b.	Use this line to show the kinds and estimated cost of facilities to be acquired not included
		above.

Sheet 21: Pg4 Instr

TOTAL ACQUISITIONS: Enter the total of items 5.a. and 5.b. above.

6.	ALL OTHER:
	a. - e.
		These lines are to be used for costs not listed above, such as legal fees, general plant equip-
		ment, etc. (Funds for general plant equipment generally will only be approved in initial loans.)
		All requests for funds under this budget purpose should be accompanied by a breakdown and
		justification for the requested funds.

TOTAL ALL OTHER: Enter the sum of items 6.a. through 6.d. above.

SECTION B. SUMMARY OF AMOUNTS AND SOURCES OF FINANCING

Note: Items 1 and 3 below may require adjustment before entering in final form (see "ADJUSTMENT" below).
	All other items may be entered in final form.

1.	GRAND TOTAL - ALL COSTS:

	Insert the total of Budget Purposes 1 through 6 above.

2.	FUNDS AND MATERIALS AVAILABLE FOR FACILITIES:

	a.	LOAN FUNDS:

		Insert the total amount of funds available from prior loans, as of the "Cut-Off" date, which are
		not required for original loan purposes. Attach RUS Form 602 and an explanation if necessary.

	b.	MATERIALS AND SPECIAL EQUIPMENT:

		Insert the dollar value of materials and special equipment on hand which will be used for the
		proposed construction. Attach information identifying, by budget purpose, the kinds of materials
		or special equipment being applied to this loan and their dollar value. Do not include materials
		and special equipment needed for normal operation of the system.

	c.	GENERAL FUNDS:

		Insert the total amount of general funds available for construction of the facilities listed
		(i.e., general funds now available plus general funds to become available during the loan period.)
		For existing general funds, attach a statement indicating the need for any adjusted general funds
		in excess of RUS guidelines which will not be used for the proposed
		construction (attach RUS Form 740a).

	d.	TOTAL AVAILABLE FUNDS FOR FACILITIES:

		Insert the total of Items 2.a., b. and c. of this section and enter as Item 2.d.

3.	NEW FINANCING REQUESTED FOR FACILITIES:

	Subtract Item 2.d. from Item 1 and enter as Item 3.

4.	RUS LOAN REQUESTED FOR FACILITIES:

	Insert the percentage of plant financing to be obtained from RUS (see 7 CFR 1710.110). Multiply
	Item 3 by the decimal equivalent of this percentage; round to the nearest thousand and enter as
	Item 4.

5.	TOTAL SUPPLEMENTAL LOAN REQUESTED:

	Insert the percentage of plant financing to be obtained from a supplemental lender and the lender's
	corporate name. Multiply Item 3 by the decimal equivalent of this percentage and round to the
	nearest thousand.
		Note:	Where CFC is the supplemental lender, the result of the above calculation should be divided
			by 0.95 before rounding to the nearest thousand.

6.	CAPITAL TERM CERTIFICATE PURCHASES (CFC LOANS ONLY):

	Multiply Item 5 by 0.05 and enter as Item 6. For loans made by supplemental lenders other than CFC,
	enter zero.

7.	SUPPLEMENTAL LOAN REQUESTED FOR FACILITIES:

	Subtract Item 6 from Item 5 and enter as Item 7.

ADJUSTMENT:			After the above calculations have been completed, adjust Item 3 such that it equals Item 4
			plus Item 7. Next adjust Item 1 and a cost estimate in Section A such that Item 2 plus
			Item 3 equals Item 1.

SECTION C. CERTIFICATION

Manager and board president must sign and date form (original and one copy). Insert borrower's corporate
name.

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