20030522Order No 29245 Notice of Objection.pdf

Office of the Secretary
Service Date
May 22, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF COLUMBINE TELEPHONE)
COMPANY (DBA TETON TELECOM)
OBJECTION TO ITS ANNUAL REGULATORY
FEE FOR CALENDAR YEAR 2003.
CASE NO. COL-03-
NOTICE OF OBJECTION
ORDER NO. 29245
On May 12, 2003 , Columbine Telephone Company, Inc. (dba Teton Telecom) filed a
timely objection to its annual regulatory fee for calendar year 2003.Columbine serves
approximately 4 000 customers in eastern Idaho and Wyoming. In its objection, Columbine
stated that it had over-reported its gross Idaho intrastate operating revenue for calendar year
2002. Instead of reporting its gross Idaho intrastate operating revenue, the Company explained
that it inadvertently included revenues from its Wyoming operations and federal sources in its
revenue report to the Commission. Consequently, Columbine maintains that it has over-reported
its gross Idaho intrastate revenues by more than $2 182 791.73. Objection at 1. Pursuant to
Idaho Code ~ 61-1007, the Commission initiates this case to examine the Company s objection.
BACKGROUND
A. The Commission s Regulatory Fee
The Commission s operating funds are derived by assessing regulatory fees upon
utilities and railroads subject to the Commission s jurisdiction. Each year, the Legislature
authorizes the Commission to expend funds necessary to regulate and supervise utilities and
railroads. Idaho Code ~~ 61-1002 and 62-611. Idaho Code ~ 61-1003 provides that on or before
April 1 of each year, each utility corporation shall report its gross operating revenues from its
intrastate utility in Idaho for the proceeding calendar year. After all the utilities have reported
their total intrastate revenues, this cumulative amount is divided by the Commission s utility
appropriation to calculate the annual assessment rate. For example, for fiscal year 2004 (July 1
2003 through June 30, 2004), the expenditure amount attributed to regulating utilities is
433 100. Order No. 29228. The utilities reported gross intrastate operating revenues totaling
NOTICE OF OBJECTION
ORDER NO. 29245
721 246 413 for calendar year 2002. Thus, the proportionate share of each utility s regulatory
fee is calculated by multiplying the assessment rate of .2384 percent times its gross operating
revenues. Id. The maximum assessment fee for each utility shall not exceed three-tenths of I
percent (0.3%) of its gross intrastate revenues, and the minimum fee shall be no less than $50.00.
Idaho Code ~ 61-1004.
Once the utility assessment is determined, the Commission notifies each utility of its
regulatory fee no later than May 1 of each year. The regulatory fee may be paid to the
Commission in equal semi-annual installments due May 15 and November 15. Idaho Code ~ 61-
1005. Any utility may object to its regulatory fee "on or before the time specified for payment of
the first installment of the assessment made against it." Idaho Code ~ 61-1007.
B. Columbine s Objection
As mentioned above, Columbine asserts that it over-reported its gross operating
revenue for calendar year 2002. In its certification dated March 6, 2003 , Columbine (dba Teton
Telecom) reported that its Idaho gross intrastate operating revenue for the calendar year 2002
was $4 145 315.31. Columbine now alleges that this amount inadvertently included $202 663.
in operating revenue that was generated in Wyoming and $1 980 128 received from the federal
Universal Service Fund to support its intrastate operations. With these "corrections" Columbine
reports that its gross Idaho operating revenue for 2002 was $1 962 523.58. On May 16, 2003
Columbine submitted a check in the amount of $4 500 for its 2003 regulatory fee.
DISCUSSION
The Commission s fee assessment statutes contemplate that a utility s objection to its
regulatory fee "shall proceed" on an expedited basis. Idaho Code ~ 61-1007 requires that the
Commission hold a hearing regarding the fee objection within 20 days of the date the objection is
filed with the Commission. Moreover, the Commission shall make and issue its findings and
Order within 20 days after the hearing.
expeditiously review Columbine s objection.
Consequently, it is the Commission s intent to
In this case, Columbine alleges that it misreported its Idaho intrastate operating
revenues. When a similar objection was made last year, the Commission directed that the Staff
conduct an audit of the railroad's revenues to verify the correct amount of intrastate operating
revenue.See Order No.29045 (Case No. SMR-02-1).Consequently, we direct the
Commission Staff to expeditiously conduct an audit to verify the reported revenues of
NOTICE OF OBJECTION
ORDER NO. 29245
Columbine. Once the Staff has completed its audit, the audit findings will be provided to
Columbine for its review. The Staff shall undertake and complete its audit as soon as possible.
If the utility agrees with the results of the Staff s audit, the parties shall apprise the
Commission of their agreement concerning the amount of gross Idaho intrastate operating
revenues for calendar year 2002. If the parties cannot reach an agreement, then the Commission
will schedule an expedited hearing in this matter. The purpose of the hearing (if necessary) will
be to present evidence regarding the appropriate amount of gross Idaho intrastate operating
revenue for Columbine Telephone Company in calendar year 2002.
The Commission has jurisdiction over this matter under Title 61 of the Idaho Code
and specifically Idaho Code ~ 61-1007. The Commission may enter any final Order consistent
with its authority under Title 61.
ORDER
IT IS HEREBY ORDERED that the Commission initiates this proceeding based upon
Columbine Telephone Company s objection to its 2003 regulatory assessment.
IT IS FURTHER ORDERED that the Staff initiate an expedited audit of the utility for
purposes of determining Columbine s gross Idaho intrastate operating revenue for calendar year
2002.
IT IS FURTHER ORDERED that if the Staff and Columbine are unable to agree on
the appropriate intrastate revenue amount, then this matter shall be set for hearing.
NOTICE OF OBJECTION
ORDER NO. 29245
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;J.;J."..A
day of May 2003.
ATTEST:
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Commission Secretary
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NOTICE OF OBJECTION
ORDER NO. 29245
PAUL KJELL ER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER