B-134138, SEP. 29, 1959

B-134138, SEP. 29, 1959

TO THE INDIANAPOLIS POWER AND LIGHT COMPANY:

YOUR LETTER OF SEPTEMBER 8, 1959, TRANSMITS FOR OUR ATTENTION A COPY OF A LETTER SENT BY YOU TO THE ADMINISTRATOR, RURAL ELECTRIFICATION ADMINISTRATION, CONCERNING A $53,872,000 LOAN APPLICATION BY HOOSIER COOPERATIVE ENERGY, INC., AN INDIANA CORPORATION.

YOU SUGGEST THAT WE CONSIDER "URGING THE (RURAL ELECTRIFICATION) ADMINISTRATION TO REQUIRE A PUBLIC HEARING ON THIS MATTER AND ALL SIMILAR MATTERS INVOLVING THE DISPOSITION OF PUBLIC FUNDS.'

THERE IS NOTHING IN THE RURAL ELECTRIFICATION ACT OF 1936, AS AMENDED, 7 U.S.C. 901-924, OR OTHER LAW WHICH REQUIRES THE ADMINISTRATOR OF THE RURAL ELECTRIFICATION ADMINISTRATION TO HOLD PUBLIC HEARINGS IN CONNECTION WITH RURAL ELECTRIFICATION LOANS. HENCE, THE HOLDING OF PUBLIC HEARINGS IN CONNECTION WITH THE LOAN APPLICATION REFERRED TO IN YOUR LETTER WOULD APPEAR TO BE A MATTER WITHIN THE DISCRETION OF THE ADMINISTRATOR. IN VIEW OF THE FOREGOING WE DO NOT FEEL THAT WE MAY URGE THE ADMINISTRATOR TO HOLD PUBLIC HEARINGS BEFORE TAKING ACTION UPON LOAN APPLICATIONS.