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HomeMy WebLinkAbout2004Annual report.pdf, ~'" , 4~:~ ..., ...,'" ,"" ,..: 11.lj1 ' ", ', '. '" '. ,' "" " i ' " "' ," , ".' ," ':" '' '' ,, ,' '" " , ".-' : '" "" "" '" ,,'" '" ", " ' .' , ' , ," ,': .. ' .. ': '-, : ' 0 ' ' '" '" ,, ,' , ," ." ,.. (, .. '" ,' \ ,--./' ,, ,. , T LECOM NAMi: ; , r'i:"'~ ::l F:' " I , " Box , ' ;69,' Cambridqe~' ADD RE' In; 83610 . , \.0' , " , C') " ~ " r'1 I'1;1e, ,.J'L:J ~ ., ," ,'.', . A,HO PU St. , ') " tJT lEfTIES COMMISSION , '; ", y 0 , .. ' F () R' TJ-I:E ; " , YEAR ..EN,OED , ", , Dec~mb~r .. ' 31, ' , , 'I , .:' ', ,, .." " StI'~COOuntantj ~'Compiiation~A8port : '" ' . ' " '.') '' ':' ,; "" ', ;', . ACCOUNTANT'S COMPILATION REPORT The Board of Directors CTC Telecom , Inc. Cambridge, Idaho 83610 We have compiled the accompanying balance sheets ofCTC Telecom, Inc. as of December 31 2004 and 2003 and the related income and retained earnings statement for the year ended Decem ber 31 , 2004, included in the accompanying prescribed form, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. We have also compiled the supplementary information, except for pages 1 , 1', 19, and 20. Our compilation was limited to presenting in the form prescribed by the Idaho Public Utilities Commission information that is the representation of management. We have not audited or reviewed the financial statements referred to above and, accordingly;do not express an opinion or any other form of assurance on them. These financial statements and the supplementary information are presented in accordance with the requirements of the Idaho Public Utilities Commission, which differ from generally accepted accounting principles. Accordingly, the financial statements and supplementary information are not designed for those who are not informed about such differences. The information cmtained on pages 1 , 2, 18, 19, and 20 has not been audited, reviewed, or compiled by us and, accordingly, we assume no responsibility for that information. C-~ Colorado Springs, CO April 29 , 2005 Kiesling Associates LLP Kiesling Consulting LLC Kiesling Investment Management LLC ANNUAL REPORT OF SMAll TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDING DECEMBER 31 , 2004 COMPANY INFORMATION Exact name of utility: CTC Telecom , Inc. Address of principal office: O. Box 69 , 130 Superior St., Cambridge, 1083610 Telephone Number (Area Code 208 257-3314 Cities or towns served: Hidden , 10, Boise Name and title of officer having custody of the general corporate books of account: Richard Wiggins, President Address of office where corporate books are kept and phone number: O. Box 69, 130 Superior St., CambridQ , 1083610 208 257-3314 Organized under the laws of the State of: Idaho Date of organization: 17-Feb- Form of organization (proprietorship, association, corporation): If a Subchapter S Corporation , please specify: Name and address of controlling company, if any: O. Box 69, 130 Superior St., Cambridge, 1083610 Names of affiliated companies. Give address and description of business: Cambridge Telephone Company, Inc. O. Box 69, 130 Superior St., Cambridge, 10 83610-Telecommunications Service; CTC Construction, LLC O. Box 88, Cambridge, 10 8361 O-Construction Services Corporation Cambridge Telephone Comp , Inc. OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title , and address of the previous officer and the date of change. Title President Name Richard Wiggins Kermit Wig.9ins Joana Wig.9ins Address 1745 Fariview Ave., Weiser, 1083672 O. Box 69, Cambridg , 1083610 O. Box 69, Cambridge, 1083610 Vice President Secreta lTreasurer Rev 3/02 Page 1 See Accountant's Compilation Report DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only. Name and Address Richard Wig~ins O. Box 69, Cambridg , 10 83610 Kermit Wigg ins O. Box 69 , Cambridg , 1083610 Joana Wiggins O. Box 69, Cambridg , 10 83610 Term Expired or Current Term Will Expire Meetings Attended This year Fees Paid During Year Indefinite None Indefinite None Indefinite None Name of Chairman of the Board: Richard Wig~ins Name of Secretary (or Clerk) of Board: Joana Wig~ins Number of Meetings of the Board during the year: MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts. Name Title Wages and Bonuses Paid Rev 3/02 Page 2 See Accountant's Compilation Report NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. 1 In 1998, CTC Telecom, Inc., (CTC) a wholly-owned subsidiary of Cambridge Telephone Comp Inc. was incorporated , with an initial investment of $100 000. CTC operates as a Competitive Local Exchange Carrier in the state of Idaho. Construction of plant facilities was complete in 1999 and beg~providing services on September 1 , 1999. PCS wireless facilities were completed and service initiated in September, 2001. Additional paid-in capital of $900 000 was invested by Cambridge Telephone Company, Inc. through December 31 2004. 2 In April, 1999, CTC secured a loan from CoBank, ACB in the amount of $1 700 000, of which 699 760 was advanced as of December 31 2004. The loan is secured by a Leasehold Deed of Trust and Security Agreement covering all real and personal ~erty. In addition , the loan is secured by Personal Guarantee of Payment Agreements by certain shareholders of Cambridge Telephone Company, and Pledg~reements for stock of Cambridge Telephone Comp owned by certain shareholders. An additional loan from CoBank, ACB of $800 000 was arranged for in 2001 of which $799 000 was advanced as of December 31 , 2004. 3 The Company has entered into a lease for land effective 2/15/99. The lease is 10 years and additional leases were obtained for cell sites in 2001. Annual lease payments are $12 900. Rev 3/02 Page 3 See Accoun ~"' 11" "" ,""" "Vl0c-Repo,lCJ" 0'..-;\)1 J Jid:dv.JOn ! t BALANCE SHEETAssets and Other Debits Balance Balance Increase Beginning at EndTitle ot Account ot Year ot Year (Decrease) Current Assets 1120 Cash and Equivalents 1130 Cash 651 601) 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 154 205 051 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 348 977 629 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 870 329 (28 541) 1280 Prepayments 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 350 350) 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 1402 Investment in Nonaffiliated Companies 242 163 171 170 (70 993) 1406 Nonregulated Investments 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 278 278 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 900 900 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 298 196 3,451,435 153 239 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated (684 816)(984 749)(299 933) 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 025)781)756) 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS 063 069 858 814 (204 255) Rev 3/02 Page 4 See ACCO '!~' !"I;"' c '"'""'::').j~ Repe,li""C,o~, \j'.':;,/j' C-. ~,\", BALANCE SHEET Liabilities & Stockholders' Equity Title of Account Current Liabilities 4010 Accounts Payable 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 4050 Current Maturities - Long -Term Debt 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings TOTAL LlAB. & OTHER CREDITS Rev 3/02 Balance Beginning of Year Balance at End of Year 622,454 708,421 961 069 241 667 241 667 399 590 611 631 954 315 712 648 749 777 000 341 339 000 100 000 800 000 100 000 900 000 748 887 612 063 069 002 892 858 814 Page 5 SeeAf'\f'V';,~", :, "~;',,:";"' \AJ"";'j~uU;;, " ~ jj;;.Jjj;:.;.L~U!d on: Increase (Decrease) 967 108 191 020 241 667 592 438 100 000 748 115 280 204 255 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Be g i n n i n g of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 14 1 0 In t e r n e t TO T A L P L A N T A C C O U N T S Re v 3 / 0 2 57 , 58 6 99 8 51 4 56 9 33 5 60 4 64 5 50 5 90 8 , 73 4 96 9 53 9 13 , 36 5 56 3 12 3 39 8 29 8 19 6 Ad d i t i o n s Du r i n g y e a r 62 9 85 9 30 , 10 0 22 5 12 5 , 58 9 97 9 16 4 38 1 Pa g e 6 Pl a n t Re t i r e d or S o l d 72 5 ) 72 5 ) Se e i" N ' \ " ' 7 C" ' :C " :L 0 ' ; : 1l " ' l Ra p ., & , "" " , v L S J h c " " 0 " :'j F) j J J J ) j : C o !1 Tr a n s f e r s an d Ad j u s t m e n t s (1 3 , 14 9 ) (6 , 4 1 7 ) (1 3 , 18 6 ) 26 , 33 5 (6 , 4 1 7 ) Ba l a n c e En d of Y e a r 58 6 31 , 99 8 50 3 , 04 9 33 5 10 , 04 6 66 2 , 4 1 9 93 8 , 29 4 09 5 , 12 8 13 , 36 5 56 3 12 1 65 2 3, 4 5 1 , 43 5 An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S Re v 3 / 0 2 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Be g i n n i n g of Y e a r Ad d i t i o n s Du r i n g Y e a r Pl a n t Re t i r e d or S o l d SA M E A S T O T A L C O M P A N Y Pa g e 7 Se e Ac c o ~ n ( " ' ~ ' ,: : , r ~ . " ' ~ : -- . "" " " ;~ ' '~ ; f " ' 1 / ' 1 1 '- ' . . -" , , :J ; ; C " c JV J ~ Tr a n s f e r s an d Ad j u s t m e n t s Ba l a n c e En d of Y e a r AN A L Y S I S O F E N T R I E S IN A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 99 8 20 . 00 % 99 8 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 67 6 , 6 . 67 % 17 7 85 3 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 72 1 20 . 00 % 63 5 (6 , 4 1 7 ) 93 9 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 11 9 35 7 12 . , 1 2 . 50 % 75 , 87 8 19 5 23 5 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 24 4 80 7 10 . 00 % 10 6 09 9 35 0 , 90 6 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 16 9 62 6 8. 0 0 % 56 3 24 7 18 9 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 14 1 0 In t e r n e t 13 7 20 . 00 % 65 4 72 5 ) 06 6 24 4 1 Co n d u i t S y s t e m s 4, 4 9 4 8. 0 0 % 06 9 56 3 TO T A L 68 4 81 6 31 1 07 5 (1 1 14 2 ) 98 4 74 9 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 " " '~ , :'~ r i ' :~ " f ' i " " ' l! 1 Re p o r t Pa g e 8 Se e A C C C l 3 . l T C 3 . t " J: 0 \ /~ . c. c ; I , . AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 21 2 1 B u i l d i n g s 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 22 3 2 C i r c u i t E q u i p m e n t 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 24 2 3 B u r i e d C a b l e 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 A e r i a l W i r e 24 4 1 C o n d u i t S y s t e m s TO T A L Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 ID A H O O p e r a t i o n s O n l y Ba l a n c e Be g i n n i n g of Y e a r De p r e c i a t i o n Ra t e Cr e d i t s Du r i n g Ye a r SA M E A S T O T A L C O M P A N Y Pa g e 9 Se e A C C C C : ~ ' ~2 , :C " :) n R e p O \ 1 Re t i r e m e n t s an d Ad j u s t m e n t s Ba l a n c e En d of Y e a r INVESTMENTS Report below the investments in Accounts 1401 , 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description CoBank patrona Info USA Stock Date Acguired Book Cost of Investments Disposed of This year Book Cost of Investments Held at of Year 970 109 200 various 11/27/2002 Totals 171 170 RECEIVABLES Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Amount at End of YearNotes AccountsReceivable Receivab 205 352 311 139 127 Name of Company Customer accounts receivable nterexchange carriers CoBank CTC Construction, LLC Cambridge Telephone Comp Miscellaneous Totals 137 182 Rev 3/02 Page 1 0 o~ 1i"""""""n"""c\~' :;"". ",iI"II Rap rr;.~n~,h,;:u~~Cc, " ,'::-; ' VJ:JJ'J;;C",\.)Jd NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor NONE Interest RateDate of Note Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor Cambridge Telephone Comp Bank overdraft Farmers Mutual Telephone Comp Interexchange carriers Other, various Due Date Totals ~:i,AA'fH r: "'~" " epo......~':;'uuL:, ;" ,'.; ~i....,!J ::'." Rev 3/02 Page 11 Face Amount Amount 641 580 728 889 670 554 708 421 LO N G - T E R M D E B T Ac c o u n t s 42 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m ! Di s c o u n t Cl a s s & S e r i e s Am o u n t Ou t s t a n d i n g Ye a r In t e r e s t f o r y e a r of O b l i at i o n Is s u e Ma t u r i t Au t h o r i z e d Ye a r - En d To t a l Am o r t i z e d Ra t e Am o u n t Co B a n k 4/ 1 5 / 1 9 9 9 4/ 2 0 / 2 0 1 4 70 0 , 00 0 32 1 98 2 va r i a b l e 05 6 Co B a n k 5/ 1 / 2 0 0 1 5/ 2 0 / 2 0 1 1 80 0 00 0 63 2 33 3 va r i a b l e Le s s c u r r e n t m a t u r i t i e s To t a l Re v 3 / 0 2 (2 4 1 67 ) 71 2 64 8 Pa g e 1 2 j. A ~ 1 ' \ / ' :;; \ ' \: : ' , : " - , , ,; ' \" " Re p o ~~ L J " u" , - " , , '" " 0 J , j'J , J, ; , "" " "" , J; ) CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares consideration received, premium or discount, and expenses incurred. Class & Series of Stock Common Rev 3/02 Number of Shares uthorized 000 000 Par Value per Share No Par Page 13 ,*" 4,-""""" " " 'r,r"' :~' :~"" ;'1"'rr!\ .n.f1(~~~t~c'-"L0v'-"';C,,v,ulf1 vue, Outstanding per Balance SheetShares Amount 1 0 000 100 000 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expenses (from page 17) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOU NT TRANSFERRED TO RETAIN ED EARN INGS Rev 3/02 ~Oi.!'!.A,ft!'!flC "~".',, ""?"" '" n ~~-";~J~ ~".~ v....~;c.".jn nepOTt 374 131 830,444 (21 693) (98 284) 022 866 (22 089) 779 779 056 056 389 221 (115 280) Page 14 Same as total company OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: NECA USF $NONE . To what account were they booked? State USF $NONE . To what account were they booked? Rev 3/02 117 200 58,458 282 272 502 105 780 243 800 642 (48) 374 131 Page 15 . Alcftf\;ol""" ;" ,, ,' " er' -~""';' ;J" :",...,j ~ ;v,""..)J' n Same as total comp OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 Same as total comp590 574 382 241 112 252 660 240 699 Page 16 ~~ A """('1 ,:, '1 '!:IJ , " c,!'U)~rw..:;v"". ;....._ ,:,, u~J,.. /...:..._. v., nepoJ~ Item OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 373 730 604 582 268 007 375 296 709 383 918 119 032 138 042 044 315 562 616 870 76,407 830,444 Page 17 ; ","'; 1'"" ",," " 't'lOf',ii'C)ee~'Cv'-. :"_..~ -/"",... v.~.fl. J VJ.. Same as total comp CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 4 ( u n l e s s ot h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : Hi d d e n S p r i n q Pr e f i x ( e s ) : 22 9 Ce n t r a l O f f i c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e - 1 L Ho s t Re m o t e Ac c e s s L i n e C a p a c i t y De s i g n : 1 0 . 00 0 In s t a l l e d / E q u i p p e d : 13 4 4 Ty p e : EW S D Ch e c k o n e : Di g i t a l - 1 L An a l o g - Ch e c k o n e : El e c t r o n i c - 1 L El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 56 1 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l L i n e s 7 Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Co m p a n y T e s t L i n e s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Mu l t i - Li n e Pa r t y Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . : 0 Di a l T o n e f r o m a n o t h e r C . : 0 Re s i d e n c e Bu s i n e s s Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Mu l t i - Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Pa r t y Pa r t y Re s i d e n c e Pa r t y Pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 42 6 42 6 49 0 11 9 11 9 21 -H O 47 8 47 8 56 1 Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : 19 9 Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : 37 8 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : Re v 3 / 0 2 Pa g e 1 8 ?M ~" " ' j ' \ \ " . r " "- - , " .- : ' "'~ ; ' :: ; ; H W J Y ~ o . . , ~ . J, ~ " , " ~ , ~. . ". . " " , J , vj , ~ Lo c a l E x c h a n g e 22 9 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G ( Y e a r ) 20 0 4 Av e r a g e # of C u s t o m e r Li n e s i n U s e Lo c a l C a l l s Nu m b e r Av g . l (1 0 0 0 s ) Li n e 57 1 Pa g e 1 9 90 ~ ~ f , : , , ~ r ' ilJ ' i j I ' i j i J" i f I . J I V v v . " ., ~ , " , To l l C a l l s O r i q i n a t e d ( T o t a l o f a l l C a r r i e r s ) In t r a s t a t e 93 2 '~ ~ ~R \ fF \ ~ ' l. ; . J L ( . " c ~ U H v~ ~ In t e r s t a t e 21 1 71 5 To t a l 25 1 64 7 Av g . l Li n e 44 1 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31 , 2004. CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes X Included in directory Yes No X Date of notification 4/1/2004 Alternate method of notification N/A Rule IDAPA 31.41.01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill Denial/T ermination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 ~QiO Aw:,rrl: ::"":':' :~~, ';::' ' 1 ""rl'i1 epor~f ~'WIijJI"VI:JItiI:;;,v.,.,.....L'c v V'-"",,' ,...l..-v.t ~"'1 L1.. Wh a t i f a D e p o s i t i s r e q u i r e d ? If w e r e q u i r e a d e p o s i l o r d e n y y o u s e r v i c e , y o u m a y re q u e s t a w r i t t e n e x p l a n a t i o n a n d w i l l b e gi v e n a c h a n c e to d i s c u s s t h a t d e c i s i o n w i t h u s . I f y o u p a y a d e p o s i t yo u h a v e t h e r i g h t t o a re c e i p t . I n t e r e s t w i l l b e p a i d fr o m t h e d a l e t h e d e p o s i t i s t a k e n a n d u n t i l r e f u n d e d o r ap p l i e d , D e p o s i t s , w i t h i n t e r e s t , w i l l b e r e f u n d e d pr o m p t l y w h e n y o u m a i n t a i n g o o d c r e d i t f o r tw e l v e co n s e c u t i v e m o n t h s , I f a d e p o s i t i s r e q u i r e d , y o u h a v ~ tw o a l t e r n a t i v e s a v a i l a b l e . Y o u c a n e i t h e r p a y t h e de p o s i t i n c a s h o r p r e s e n t a g u a r a n t e e f r o m a t h i r d pa r t y . Th e a m o u n t o f t h e d e p o s i t s h a l l n o t e x c e e d t w o (2 ) mo n t h s c h a r g e s f o r b a s i c lo c a l te l e p h o n e s e r v i c e p l u s tw o ( 2 ) m o n t h s e s t i m a t e d o r a v e r a g e c h a r g e s f o r l o n g di s t a n c e s e r v i c e , Gu a r a n t e e i n L i e u o f De p o s i t If y o u c a n n o t p a y t h e d e p o s i t , w e w i l l ac c e p t a gu a r a n t e e f r o m a n o t h e r c u s t o m e r w h o h a s t w e l v e mo n t h s o f g o o d cre d i t . Th e t h i r d p a r t y m u s t gu a r a n t e e a n d i s l i a b l e f o r a n a m o u n t e q u a l t o t h e de p o s i t t h a t w o u l d o t h e r w i s e be r e q u i r e d . T h e gu a r a n t o r i s r e l e a s e d f r o m t h i s o b l i g a t i o n w h e n yo u h a v e e s t a b l i s h e d g o o d c r e d i t . Co m p l a i n t P r o c e d u r e Yo u m a y , a t a n y t i m e , f i l e a c o m p l a i n t a n d r e q u e s t a co n f e r e n c e w i t h u s . A f t e r w e r e c e i v e a c o m p l a i n t , w e wi l l st a r t a n i n v e s t i g a t i o n i I n m e d i a t e l y . T h e re s u l t s w i l l gi v e n t o y o u a n d y o u w i l l b e g i v e n t h e o p p o r t u n i t y to d i s c u s s t h e r e s u l t s . I f y o u a r e s t i l l d i s s a t i s f i e d , a co m p l a i n t m a y b e t a k e n t o t h e I d a h o P u b l i c U t i l i t i e s Co m m i s s i o n f o r r e v i e w , S e r v i c e wi l l n o t b e t u r n e d o f f du r i n g a n y p a r t o f t h i s c o m p l a i n t p r o c e d u r e IF A L L UN D I S P U T E D B I L L S A R E P A I D . Im p o r t a n t N o t i c e Co n c e r n i n g P u r c h a s e of G o o d s a n d S e r v i c e s b y T e l e p h o n e Yo u h a v e i m p o r t a n t r i g h t s u n d e r t h e I d a h o Te l e p h o n e So l i c i t a t i o n A c t . U n d e r t h i s A c t , i t i s i l l e g a l f o r p e r s o n s at t e m p t i n g t o s e l l y o u g o o d s o r s e r v i c e s by t e l e p h o n e (t e l e p h o n e s o l i c i t o r s ) : . T o in t i m i d a t e o r h a r a s s y o u i n c o n n e c t i o n wi t h t h e al t ~ m p t e d s a l e . . T o re f u s e t o h a n g u p a n d f r e e y o u r t e l e p h o n e l i n e im m e d i a t e l y o n c e y o u r e q u e s t t h e m t o d o s o . . T o m i s s t a t e th e p r i c e , q u a l i t y , o r ~ v a i l a b i l i t y o f g o o d s or s e r v i c e s , o r t o f a i l t o r e v e a l a l l m a t e r i a l te I T n S re l a t i n g t o t h e s a l e o f g o o d s o r se r v i c e s , . T o ad v e r t i s e , r e p r e s e n t o r i n 1 p l y t h a t t h e y h a v e t h e en d o r s e m e n t of a l l Y go v e r n m e n t o f f i c e o r a g e n c y w h e n t h e y d o n o t . . T o ad v e r l i s l : ! , r e p r e s e n t o r im p l y l h a l l h e y h a v e a va l i d r e g i s t r a t i o n n u m b e r w i t h t h e A t t o r n e y G e n e r a l wh e n t h e y d o n o t . . T o u s e a n y un f a i r m e t h o d of co m p e t i t i o n o r u n f a i r o r de c e p t i v e p r a c t i c e . An y p e r s o n n o t y e t 1 8 y e a r s o l d w h o p u r c h a s e s go o d s o r s e r v i c e s p u r s u a n t t o a t e l e p h o n e so l i c i t a t i o n m a y c a n c e l t h e p u r c h a s e w i t h i n a re a s o n a b l e t i m e a f t e r t h e - pu r c h a s e i s m a d e , N o pa r e n t o r l e g a l g u a r d i a n h a v i n g c u s t o d y o f a pe r s o n n o t y e t 1 8 y e a r s o l d i s l i a b l e f o r t h e pu r c h a s e o f g o o d s o r s e r v i c e s b y a p e r s o n n o t y e t 18 y e a r s o l d p u r s u a n t t o t e l e p h o n e s o l i c i t a t i o n . Wh e n y o u a g r e e t o p u r c h a s e g o o d s o r s e r v i c e s ov e r t h e t e l e p h o n e , y o u m a y h a v e a r i g h t t o re c o n s i d e r a n d c a I \ c e l y o u r a g r e e m e n t f o r t h r e e bu s i n e s s d a y s a f t e r r e c e i v i n g a w r i t t e n co n f i r m a t i o n o f t h e s a l e . A p e r s o n w h o s e r i g h t s a r e v i o l a t e d b y t e l e p h o n e so l i c i t o r s m a y h a ve t h e r i g h l l o d e c l a r e a c o n t r a c t of p u r c h a s e n u l l a n d v o i d o r i n v o k e o t h e r re m e d i e s u n d e r t h e I d a h o C o n s u m e r P r o t e c t i o n Ac t . IE yo u b e l i e v e t h a t a t e l e p h o n e s o l i c i t o r h a s d o n e an y u n l a w f u l a c t s , y o u m a y c o n t a c t t h e A t t o r n e y Ge n e r a l ' s o f f i c e f o r a s s i s t a n c e a n d in f o r m a t i o n a t : 80 0 - 43 2 . . . 35 4 5 ( t o l l f r e e ) o r 33 4 - 2 4 2 4 ( B o i s e a r e a ) Id a h o T e l e c o m m u n i c a t i o n s Re l a y S e r v i c e Th e I d a h o T e l e c o m m u n i c a t i o n s R e l a y Se r v i c e al l o w s i n d i v i d u a l s w i t h a s p e e c h an d / o r h e a r i n g di s a b i l i t y a n d h e a r i n g i n d i v i d u a l s t o co n u l 1 u n i c u t e vi a t h e t e l e p h o n e . C a l l s m a y b e i n i t i a t e d b y e i t h e r te x t t e l e p h o n e o r v o i c e c u s t o m e r s . T w e n t y - fo u r ho u r s a d a y a n d s e v e n d a y s a w e e k , t h e I d a h o Tc l e c o n u l 1 u n i c u t i o n s R e l a y S e r v i c e i s r e a d y t o , p r o v i d e y o u w i t h e f f i c i e n t , c o n f i d e n t i a l co m m u n i c a t i o n s s e r v i c e s . I f y o u w o u l d l i k e m o r e in f o r m a t i o n a b o u t t h e I d a h o T e l e c o m m u n i c a t i o n s Re l a y S e r v i c e , p l e a s e c a l l 1 - BO O - 36 8 - 61 8 5 ( V o i c e o r IT ) , o r a s o f Oc t o b e r 1 , 20 0 1 , b y d i a l i n g 7 1 1 . Th e R e s i d e n t i a l S e r v i c e Th i s i s a s u m m a r y of th e I d a h o P u b l i c U t i l i t y Co m n l i s s i o n s r u l e s a n d r e g u l a t i o n s r e g a r d i n g cu s t o m e r r e l a t i o n s . It i s i n t e n d e d f o r y o u r i n f o r m a t i o n o n l y . We h o p e i t wi l l m a k e y o u a w a r e o f y o u r r i g h t s a s a er e T e l e c o m cu s t o m e r a n d w i l l b e t t e r a c q u a i n t y o u w i t h s o m e o f ou r o p e r a t i n g p r o c e d u r e s . T h i s i s o n l y a s u m m a r y . Sh o u l d y o u n e e d d e t a i l e d i n f o r m a t i o n , l h e CT C , Te l e c o m o f f i c e h a s a c o p y o f t h e c o m p l e t e r u l e s av a i l a b l e f o r y o u r u s e . P l e a s e c o n t a c t u s i f y o u h a v e qu e s t i o n s , To A c c e s s t h e R e l a y T o l l . . . Fr e e D i a l : " , ' 80 0 - 37 7 - 35 2 9 ( T T ) S e e A c o o ~ : ~ ' ~: ~ , 3: : = : - - : : ; : . 8: ~ : Q ~ Re p m l 80 0 . . . 37 7 - 13 6 3 ( V o i c e ) 71 1 (M t e r O c t o b e r 1 20 0 1 ) Ct c : T ~ I t= J r " ".. . . . . CU S T O M E R B I L L I N G I N F O R M A T I O N Th e c h a r g e f o r m o n t h l y l o c a l t e l e p h o n e s e r v i c e bi l l e d o n e 11 1 O n l h i n ad v a n c e . A l l c h a r g e s f o r l o n g di s t a n c e , m e s s a g e u n i t s , i n s t a l l a t i o n a n d c h a n g e s in s e r v i c e o n f i l e a t t h e t i m e t h e b i l l i s p r i n t e d w i l l be s h o w n o n y o u r CU I T e n t b i l l . RU L E S F O R T E R M I N A T I O N O F SE R V I C E CT C T e l e c o m m u s t f o l l o w s t r i n g e n t g u i d e l i n e s be f o r e t e r m i n a t i n g b a s i c l o c a l t e l e p h o n e se r v i c e . Ba s i c l o c a l s e r v i c e c a n n o t b e te r m i n a t e d f o r f a i l u r e to p a y l o n g d i s t a n c e c h a r g e s o w e d t o o t h e r co m p a n i e s , w h i c h m a y a p p e a r o n er c T e l e c o m mo n t h l y b i l l , i f m e a s u r e s t o p r e v e n t ac c e s s t o t h e ot h e r c o m p a n i e s ' s e r v i c e s a r e a v a i l a b l e . W h e t h e r su c h m e a s u r e s a r e a v a i l a b l e d e p e n d s u p o n t h e ty p e o f er e Te l c o r n e q u i p m e n t s e r v i n g t h e cu s t o m e r , Ba s i c l o c a l t e l e p h o n e s e r v i c e c a n n o t b e te r m i n a t e d i f y o u l e t u s k n o w t h a t y o u d i s p u t e an y c h a r g e s o n y o u r t e l e p h o n e b i l l u n t i l t h e di s p u t e i s r e s o l v e d , b u t y o u m u s t c o n t i n u e t o p a y th e u n d i s p u t e d p a r t s o f t h e b i l l . Te l e p h o n e s e r v i c e c a n b e d i s c o n n e c t e d w i t h pr o p e r n o t i f i c a t i o n f o r o n e o f t h e f o l l o w i n g re a s o n s : . N o t p a y i n g u n d i s p u t e d d e l i n q u e n t ch a r g c s o r p a y i n g a d e l i n q u e n t b i l l w i t h a c h e c k n o t h o n o r e d b y t h e ba n k Fa i l u r e t o m a k e a s e c u r i , ty d e p o s i t o r f a i l u r e t o pr o v i d e a d e p o s i t g u a r a n t e e , . M i s r e p r e s e n t a t i o n o f id e n t i t y t o r e c e i v e s e r v i c e , Fa i l u r e t o a b i d e b y t h e t e r m s o f a pa y m f ' - n t ar r a n g e m e n t . In t e n t i o n a l l y w a s t i n g o r i n t e r f e r i n g w i t h s e r v i c e th r o u g h i m p r o p e r e q u i p m e n t o r ot h e r w i s e . Fa i l u r e t o a p p l y f o r s e r v i c e w i t h t h e t e l e p h o n e co m p a n y . PR O P E R N O T I F I C A T I O N Se r v i c e c a n n o t b e d i s c o n n e c t e d w i t h o u t f i r s t no t i f y i n g y o u i n w r i t i n g a t l e a s t s e v e n (7 ) d a y s i n ad v a n c e , W e m u s t d i l i g e n t l y t r y t o n o t i f y y o u i n pe r s o n o r b y t e l e p h o n e 2 4 h o u r s b e f o r e di s c o n n e c t i n g s e r v i c e . O n l y 24 h o u r n o t i c e w i l l b e gi v e n i f y o u p a y a b i l l w i t h a n i n s u f f i c i e n t f u n d s ch e c k i n o r d e r t o a v o i d t e r m i n a t i o n , o r a s t h e in i t i a l p a y m e n t o f a p a y m e n t a r r a n g e m e n t , o r i f yo u d o n o t m a k e a n i n i t i a l p a y m e n t a c c o r d i n g t o a pa y m e n t a r r a n g e m e n t . Re s t r i c t i o n s o n T e n n i n a t i o n s Yo u r t e l e p h o n e s e r v i c e c a n n o t b e d i s c o n n e c t e d if : . A pa s t d u e b a l a n c e i s l e s s t h a n $ 5 0 . 00 o r f o r t w o ( 2 ) mo n t h s s e r v i c e , w h i c h e v e r i s sm a l 1 e r , . Y o u ar e b e i n g c h a r g e d f o r a n o t h e r c u s t o m e r s b i l l (u n l e s s y o u h a v e a l e g a l o b l i g a t i o n t o p a y t h e o t h e r cu s t o m e r s b i l l o r y o u a r e b e i n g c h a r g e d f o r a n y o t h e r cl a s s o f s e r v i c e ) . . , Yo u f a i l t o p a y f o r p u r c h a s e o f s e r v i c e s s u c h a s t h e fo l l o w i n g : - D i r e c t o r y a d v e r t i s i n g , - S e r v i c ; e s n o t pr o v i d e d b y cr c T e l e c o m ev e n t h o u g h th e y m a y b e b i l l e d w i t h C T C T e l e c o m s e r v i c e s ( e , g . 90 0 c h a r g e s , o p e r a t o r c h a r g e s f r o m a n o t h e r co m p a n y ) . - E q u i p m e n t p a y m e n t s , - I n s i d e w i r e m a i n t e n a n c e , - W r i t t e n g u a r a n t e e f o r a n o t h e r c u s t o m e r , - L o n g d i s t a n c e c h a r g e s b y o t h e r c o m p a n i e s , i f w e ca n b l o c k a c c e s s t o t h e o t h e r c o m p a n i e s ' s e r v i c e s . Yo u r t e l e p h o n e s e r v i c e e. a n b e di s c o n n e c t e d b e t w ' e e n th e h o u r s o f 8: 0 0 a . m, a n d 4 : 0 0 p , , M o n d a y t h r o u g h Th u r s d a y , a n d b e f o r e n o o n o n F r i d a y . Se r v i r : e c a n n o t b e tu r n e d o f f a f t e r n o o n o n F r i d a y s , w e e k e n d s , l e g a l l y re c o g n i z e d I d a h o h o l i d a y s , o r a f t e r n o o n a n y d a y b e f o r e a l e g a l l y r e c o g n i z e d I d a h o h o l i d a y . Te r m i n a t i o n W i t h o u t N o t i f i c a t i o n CT C T e l e c o m r . a n t e r m i n a t e s e r v i c e wi t h o u t no t i f i c a t i o n o n l y u n d e r t h e f i v e f o l l o w i n g c o n d i t i o n s : . A d a n g e r o u s or h a z a r d o u s c o n d i t i o n ex i s t s , Se r v i c e w a s o b t a i n e d w i t h o u t a u t h o r i 7 . a t i o n o r kn o w l e d g e of th e t e l e p h o n e c o m p a n y . . B y o r d e r of a n y c o u r t , t h e P u b l i c U t i l i t i e s Co m m i s s i o n , o r a n y o t h e r a u t h o r i z e d p u b l i c au t h o r i t y . If w e h a v e d i l i g e n t l y t r i e d t o n o t i f y y o u b u t h a v e be e n u n s u c c e s s f u l i n o u r a t t e m p t s t o c o n t a c t y o u , . Y o u h a v e mi s r e p r e s e n t e d y o u r i d e n t i t y , h a v e in a d e q u a t e s e c u r i t y w i t h t h e c o m p a n y , a n d h a v e a n ou t s t a n d i n g b i l l e x c e e d i n g $ 1 0 0 . 00 , PA Y M E N T A R R A N G E M E N T S / PA R T I A L P A Y M E N T S j D I S P U T E D C H A R G E S If y o u c a n n o t p a y t h e e n t i r e b i l l , p a y m e n t ar r a n g e m e n t s c a n b e m a d e w i t h u s t o p a y p a r t o f t h e am o u n t i m m e d i a t e l y a n d t h e r e m a i n d e r i n i n s t a l l m e n t s , A p a y m e n t s c h e d u l e w i l l b e d e v e l o p e d t h a t i s in d i v i d u a l l y t a i l o r e d t o y o u r n e e d a n d a b i l i t y t o pa y , If y o u c a n n o t p a y a b i l l i n f u l l , o r i f y o u d i s p u t e a po r t i o n o f t h e c h a r g e s , y o u m a y t e l l u s h o w t o a p p l y yo u r p a r t i a l p a y m e n t t o c h a r g e s f o r lo c a l s e r v i c e , l o n g di s t a n c e a n d o t h e r s e r v i c e s . "\ T h e n y o u m a k e pa r t i a l pa y m e n t s w i t h o u t d i r e c l i n g h o w t h e y a r e t o b e a p p l i e d , we a u t o m a t i c a l l y p r o r a t e y o u r p a y m e n t a m o n g a l l nl 1 h : b ' l n r - ! i n a , . . h~ T ' n D Q ( ; n , . . .r l ; , . . , ' " ~ h ~ ~ ~ . . . . 1 ; n _ . . ~~ " 1 ~ . . u _ . . : ( yo u h a v e n o l n o t i f i e d u s o f t h e d i s p u t e ) , I f y o u w a n t t o av o i d d i s c o n n p . d i o n o f y o u r l o c a l s e r v i c e , i t i s w i s e t o di r e c l t h a t y o u r pC ) r H a l pa y m e n t f i r s t b e a p p l i e d t o t h e ch a r g e s f o r t h a t s e r v i c e , UN A U T H O R U E D C H A N G E AN O T H E R L O N G D I S T A N C E C A R R I E R Th e F e d e r a l C o m m u n i c a t i o n s C o m m i s s i o n h a s re v i s e d t h e e x i s t i n ~ r u l e s r e l a t e d t o a u l h o r i z a t i o n a n d ve r i f i c a t i o n f o r c h a n g e s i n p r e f e r r e d l o n g d i s t a n c e pr o v i d e r s . I f y o u h a v e b e e n s l a m m e d ( u n a u ~ h o r i z e d ch a n g e o f y o u r l o n g d i s t a n c e c a r r i e r ) y o u m a y b e ab s o l v e d f r o m p a y i n g u n p a i d c h a r g e s f o r 30 d a y s a f t e r an u n a u t h o r i z e d c h a n g e . T h e FC C r u l e s p r o h i b i t cr c Te l e c o m f r o m v e r i f y i n g c a r r i e r c h a n g e s s u b m i l t e d b y lo n g d i s t a n c e c a r r i e r s . I f y o u d o n o t c u r r e n t l y h a v e a pr e f e r r e d c a r r i e r f r e e z e , y o u m a y c h o o s e t h i s o p t i o n t o el i m i n a t e a n u n a u t h o r i z e d c h a n g e o f y o u r l o n g d i s l a n c e ca r r i e r , I f y o u d o h a v e a p r e f e r r e d c a r r i e r f r e e z e a n d wa n t t o c h a n g e y o u r c a r r i e r , y o u m u s t c a l l o u r o f f i c e o r gi v e w r i t t e n n o t i c e t o l i f t a n y p r e f e r r e d c a r r i e r f r e e z e , yo u h a v e a n y q u e s l i o n s a b o u t l h e s e n e w r u l e s y o u m a y c: o n t a r . t o u r bu s i n e s s o f f i c e . ME D I C A L E M E R G E N C I E S . Yo u c an d e l a y t e r m i n a t i o n o f s e r v i c e ( o r 30 d a y s b y ob t a i n i n g a ce r t i f k . . a t e f r o m a do c t o r o r p u b l i c h e a l t h of f i c i a l s t a t i n g t h a t a m e d i c a l e m e r g e n c y e x i s t s o r w o u l d be a g e r a v a t e d i f y o u r p h o n e s e r v i c e w e r e di s c o n n e c t e d , A s e c o n d e x t e n s i o n m a y b e g r a n t e d i f a n o t h e r c e r t i f i c a t e is p r e s e n t e d . P a y m e n t a r r a n g e m e n t s m u s t b e m a d e be f o r e t h e 3 0 - d a y e x p i r a t i o n d a t e . T h e c e r t i f i c a t e m u s t be s i g n e d b y t h e p e r s o n d i a g n o s i n g t h e m e d i c a l co n d i t i o n a n d m u s t n a m e t h e p e r s o n af f e c t e d , RU L E S F O R D E P O S I T We m a y a s k y o u t o p a y a d e p o s i t i f a d e p o s i t i s re q u i r e d , A d e p o s i t i s r e q u i r e d o n l y i f : . Y o u h a v e no t p a i d a n u n d i s p u t e d b i l l w i l h a n y te l e p h o n e c o m p a n y f o r se r v i C e r e c e i v e d i n t h e p a s t fo u r y e a r s . . Y o u r se r v i c e w a s t e r m i n a t e d f o r o n e o f t h e f o l l o w i n g re a s o n s : . N o n p a y m e n t of a n y u n d i s p u t e d d e l i n q u e n t b i l l s . Mi s r e p r e s e n t a t i o n o f y o u r i d e n t i t y f o r t h e p u r p o s e o f ob t a i n i n g t e l e p h o n e s e r v i c e , Fa i l u r e t o p a y f o r d a m a g e s r : a u s e d b y n e g l i g e n c e , . O b t a i n i n g o r us i n g s e r v i c e w i t h o u t a u t h o r i z a t i o n , . Y o u fi l e b an k r u p t c y , . Y o u d o no t h a v e v e r i f i a b l e p r e v i o u s t e l e p h o n e se r v i c e a n d d o n o t p a s s o b j e c t i v e c r e d i t sc r e e n , . Y o u pr o v i d e m a t e r i a l l y f a l s e i n f o r m a t i o n o n y o u r ap p l i c a t i o n . . Y o u re q u e s t s e r v i c e a t a r e s i d e n c e w h e r e 1: 1 fo m 1 e r cu s t o m e r s t i l l r e s i d e s a n d a b a l a n c e i s p a s t d u e o r s t i l l ow i n g o n t h e f o r m e r c u s t o m e r s b i l l , 0. . (I ) rr :(, ~ " ,, . f . . ( ; , ( ) 1 (, I , ' ( ) " " : j (( ) (; 1 CERTIFICATE County of Washington ) ss State of Idaho , the undersigned RICHARD WIGGINS and of the CTC TELECOM. INC.utility, on our oath do severally say that the foregoing return has been prepared under our direction , from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth, to the best of our knowledge, information and belief, \2 ~'-e (Chief 0 i er) :-P "". ~/ LQ(Officer in Charge 0 counts) Subscribed and Sworn to Before Me this 28th day of L~j cB e1~ Notary Public April , (Year)2005 ANN E. BRAUN NOTARY PUBLIC STATE OF IDAHO My Commission expires , (Year) &a6 Rev 3/02 gd kI ex ce IIj ne Ison! an u I rp ts!te la n n u al rpt Page 21 Ci~ .i~",;r;.;i.";;; ;;, H '"i' epo ' "';, ~.~""L.... ~-- "~",.