adoptstipulation.doc

DONALD L. HOWELL, II
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
Idaho State Bar No. 3366
Telephone: [phone]
FAX: [phone]

Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5983

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF CAMBRIDGE TELEPHONE COMPANY’S, INC. AND COUNCIL TELEPHONE COMPANY’S APPLICATION FOR AUTHORITY TO INCREASE RATES AND DISBURSEMENTS FROM THE IDAHO USF.

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CASE NOS. CAM-T-99-2
COU-T-99-2
GNR-T-99-11

JOINT MOTION TO
ADOPT STIPULATION
AND SETTLEMENT
AGREEMENT

COMES NOW the Commission Staff, Cambridge Telephone and Council Telephone Companies by and through their respective attorneys of record and request that the Commission adopt the attached Stipulation and Settlement Agreement executed by the Staff, Cambridge and Council Telephone Companies in the above referenced cases.
BACKGROUND
On October 20, 1999, Cambridge Telephone and Council Telephone Companies (hereinafter referred to as Cambridge) filed an Application requesting that the Commission authorize a general rate increase. The Companies propose to implement several toll-free extended area service (EAS) routes, increase the rates for local services, and decrease long-distance access charges to the statewide average. In addition, the Company initially requested that Cambridge’s disbursement from the state Universal Service Fund (USF) be increased. On December 8, 1999, Cambridge filed revised prefiled testimony abandoning the request for $360,000 in additional disbursements from the state USF and instead proposed reducing its annual USF draw by $13,979 per year.
On February 17, 2000, the Commission convened a prehearing conference in this matter. At the prehearing conference, the parties (Staff, Cambridge, Citizens and U S WEST) agreed to filing Staff and intervenor testimony on March 29, 2000. A public hearing in the EAS routes and the proposed rate increases is scheduled for April 20 and the technical hearing is scheduled to be held in Boise on May 9, 2000.
THE SETTLEMENT AGREEMENT
Essentially, the Stipulation represents the settlement of all issues between the Staff and Cambridge concerning the implementation of EAS. The parties to the Settlement and Stipulation agree to implement EAS as proposed by the Company with the addition of implementing EAS between the Lowman exchange and the Boise Exchange. Staff and Cambridge have also agreed it is just and reasonable to set the rates for local exchange service at $24.10 per month for residential customers and $42.00 per month for business customers. The parties also agree to reducing the Company’s access charges to the statewide level as proposed in the Application.
The Staff and Cambridge have also agreed to depreciation rates and recommend that the Commission adopt such rates retroactive to January 1, 1999. The parties have also agreed that based on the stipulated EAS routes, that Cambridge’s existing Idaho USF draw shall be decreased by $246,000 per year contemporaneously with the implementation of the EAS and the proposed increase in local service rates.
The signatory parties strongly believe that this Stipulation and Settlement represents a reasonable resolution of all issues in this case. As with any general rate case, the signatory parties recognize the complexity of the issues and the amount of effort and resources that would be expended by all parties in litigation if settlement does not occur. The Staff’s investigation and audit reveals that the implementation of EAS, the proposed local service rates, the reduction of access charges, coupled with the reduction in USF disbursement, do not produce excessive earnings. In the event that the Commission does not adopt this Stipulation, the Staff and Cambridge each reserve their rights to fully litigate the issues encompassed in this Settlement.
PRAYER
The signatory parties strongly believe that the Stipulation and Settlement represents a reasonable resolution of the issues presented in this case. Given the hearing schedule already adopted by the parties, the Staff and Cambridge will prefile testimony supporting the Stipulation and Settlement.
RESPECTFULLY SUBMITTED this day of March 2000.

Donald L. Howell, II
Deputy Attorney General

bls/N:camt992_cout992_motion_dh
In a separate proceeding, the Commission approved merging the two companies with Cambridge as the surviving corporation. See Order No. 28239 in Case Nos. CAM-T-99-1 and COU-T-99-1.
Although AT&T Communications was granted intervenor status it did not appear at the prehearing conference.

JOINT MOTION TO ADOPT
STIPULATION AND
SETTLEMENT AGREEMENT 2