HomeMy WebLinkAbout20030710Final Order No 29290.pdfOffice of the Secretary
Service Date
July 10, 2003
BEFORE THE IDAHO PUBLIC UTILITIES CO MMISSI 0 N
IN THE MATTER OF COLUMBINE TELEPHONE)
COMPANY (DBA TETON TELECOM)
OBJECTION TO ITS ANNUAL REGULATORY
FEE FOR CALENDAR YEAR 2003.
CASE NO. COL-03-
ORDER NO. 29290
On May 12, 2003 , Columbine Telephone Company, Inc. (dba Teton Telecom) filed a
timely objection to its annual regulatory fee for calendar year 2003. In its objection, Columbine
stated that it had over-reported its gross Idaho intrastate operating revenue for calendar year
2002. On May 22, 2003 , the Commission issued a Notice of Objection in Order No. 29245.
its Order, the Commission directed the Staff to expeditiously conduct an audit of Columbine to
verify the reported revenues. Once complete, the Staff s audit findings were to be provided to
Columbine. Order No. 29245 at 3. If Columbine agreed with the results of the Staffs audit
then the parties were to apprise the Commission. If the parties did not reach agreement, then the
Commission would schedule a hearing to resolve the dispute.
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 9961-1002 and 62-611. Idaho Code 9 61-1003 provides that on or before
April 1 of each year, each utility corporation shall report its gross operating revenues from its
intrastate operations for the proceeding calendar year. After all the utilities have reported their
total intrastate revenues, this cumulative amount is divided by the Legislature s annual
appropriation to calculate the assessment rate. For example, for fiscal year 2004 (July 1 , 2003
through June 30, 2004), the appropriation attributed to regulating utilities is $4 433 100. Order
No. 29228. The utilities reported gross intrastate operating revenues totaling $1 721 246 413 for
calendar year 2002. Thus, the proportionate share of each utility s regulatory fee is calculated by
multiplying the assessment rate of .2384 percent (.002384) times its gross operating revenues.
Id. The assessment fee for each utility shall not exceed three-tenths of 1 percent (0.3%) of its
ORDER NO. 29290
gross intrastate revenues, and the minimum fee shall be no less than $50.00. Idaho Code 961-
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 961-
1005. Any utility may object to its regulatory fee "on or before the time specified for payment of
the first installment ofthe assessment made against it.Idaho Code 9 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 revenue certification dated March 6, 2003 , Columbine
reported that its Idaho gross intrastate operating revenue for calendar year 2002 was
145 315.31. Columbine now alleges that this amount inadvertently included $202 663.73 in
operating revenue that was generated in Wyoming and $1 980 128 received from the federal
Universal Service Fund (USF) to support its intrastate operations. With these two adjustments
Columbine reports that its gross Idaho operating revenue for 2002 should be $1 962 523.58. On
May 16, 2003 , Columbine submitted a check in the amount of $4 500 for payment of its first
installment.
STAFF AUDIT
On June 11 , 2003, the Staff forwarded its audit results to the Company. The Staff
agreed with the Company that Wyoming revenues were erroneously included in Columbine
reported Idaho revenues. However, the Staff also determined that two other adjustments to
Columbine s gross operating intrastate revenues were necessary.First, Staff asserted that
Columbine had offset the expenses and revenues in Account 5010 (public telephone revenues).
Staff recommended that revenues in the amount of $3 060 should be reported for this account.
Second, Staff contested Columbine s assertion that USF contributions are not
operating revenues. Staff noted that these funds are traditionally treated by the Commission as
operating revenues to establish intrastate telecommunication rates. Because these funds are
recognized as revenue by both the Commission and the Federal Communications Commission
the Staff asserted that this revenue "should be reported as Idaho ' gross operating intrastate
ORDER NO. 29290
revenues. ", Audit at 1. The Staff determined that Columbine had received federal USF monies
for Idaho operations in the amount of$I 742 218.
With these two adjustments, the Staff determined that Columbine s 2002 gross
operating intrastate revenue should be $3 705 876 (a reduction of $439 439). Based on the 2003
assessment rate of .2384% (.002384), Staff calculated Columbine s regulatory fee for 2003 as
834.81. Because Columbine already paid $4 500, Staff calculated that Columbine
November installment of the 2003 regulatory fee should be $4 334.81.
In a July 2, 2003 e-mail, Columbine agreed with the Staffs calculation that the
Company s gross operating revenues for 2002 should be $3 705 876.
DICUSSION
Given the agreement between the Staff and Columbine, we find the Company s 2002
gross intrastate operating revenues to be $3 705 876. Based upon the 2003 assessment rate of
2384% (.002384), we further find that Columbine s regulatory fee for 2003 totals $8 834.81.
Because Columbine has already paid its first installment in the amount of $4 500., we find that
the Company s November installment of its 2003 regulatory fee is $4 334.81.
ORDER
IT IS HEREBY ORDERED that Columbine s objection to its 2003 regulatory fee is
partially granted as modified above.
IT IS FURTHER ORDERED that Columbine submit its remaining 2003 regulatory
fee in the amount of $4 334.81 no later than November 15, 2003.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 29290
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this Cjf'A
day of July 2003.
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ATTEST:
Commission Secretary
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ORDER NO. 29290