20210604Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
MATT HUNTER
DATE: JUNE 4,2021 Cou -T- Lt-ol
RE: IN THE MATTER OF COLUMBINE TELEPHONE COMPANY,INC.'S
TARIFF FILING CHANGING THE MANNER IN WHICH FACILITIES
EXTENSIONS ARE HANDLED.
BACKGROUND
On May 14,2021. Columbine Telephone Company Inc. dba Silver Star Communications
("Columbine" or "Company") filed changes to its tariff with the Comrnission as required by
Itlaho Code $ 61-307. Columbine proposes to "change the practice to the manner in which
facilities extensions are handled." Columbine is changing from a dollar amount allowance for
extending facilities to a set distance where only a flat fee applies for the allowable distance. If
the extension is longer than the allowable distance then the applicant pays for the additional
costs. The Company's tariff currently provided for up to $1.600 worth of cost to extend service
to a customer and required costs that exceeded the $ I .600 to be paid upfront by the applicant
prior to construction. The proposed changes by the Company would change the aid to
construction amount from the $ 1,600 to 500 t'eet of extension with a $350 one+ime charge. The
customer would then pay any actual costs beyond the first 500 feet in advance of construction.
STAFF REVIEW AND RECOMMENDATION
StafThas reviewed the proposed tariff revision and conrpared it to other fully rate
regulated Title 6l company tariffs. All the other cornpanies provide anywhere from 300 to I ,000
fbet of line extension at no cost to an applicant.
DECISION MEMORANDUM JUNE 4,2021
Staff believes that the proposed change to how Columbine will handle line extensions
constitutes an increase in rates and is therefore subject to ldaho Code $ 6l-622 and should not be
handled through a tariff advice.
Therefore, Staff recommends the Commission suspend the proposed tariff s effective
date for 60 days and initiate a formal proceeding to determine whether the proposed tariff
complies with the Commission's regulatory requirements. Staff also recommends the case be
processed by Modified Procedure, with a July 8,2021, comment deadline and a July I 5,2021,
reply comment deadline.
COMMISSION DECISION
Does the Commission wish to:
l. Initiate a formal proceeding to determine whether Columbine's proposed tariffcomplies
with the Commission's regulatory requirements?
2. Process the case by Modified Procedure, setting a July 8,2021, comment deadline and a
July 15,2021, reply comment deadline?
3. Suspend the proposed effective date for Columbine's proposed tariff for 60 days?
Daniel KIein
Udmemos/Col unrbine tari tT adv ice
DECISTON MEMORANDUM -2-JUNE 4,2021