Financial forecasts—distribution borrowers.

(a) Financial forecasts prepared by distribution borrowers shall cover at least a ten-year period, unless a shorter period is authorized by other RUS regulations. (b) In addition to the requirements set forth in § 1710.300 of this part, financial forecasts prepared by distribution borrowers in support of a loan application shall: (1) Include expenditures for any maintenance determined to be needed in the current system's operation and maintenance review and evaluation in order to comply with mortgage covenants and prudent utility practice; (2) Fully explain the basis for the power cost projections used. Generally, the power supplier's most recent forecasted rates shall be used; and (3) Use RUS Form 325 or computer-generated equivalent reports.