20070223Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:WELDON STUTZMAN
DATE:FEBRUARY 23, 2007
SUBJECT:CUSTER TELEPHONE COOPERATIVE, INc.'PETITION FOR
AMENDMENT OF ITS CERTIFICATED SERVICE AREA BOUNDARY,
CASE NO. CUS-07-01;
CUSTER TELEPHONE COOPERATIVE INc. AND MID V ALE
TELEPHONE EXCHANGE, INc.'JOINT PETITION FOR
AMENDMENT OF THEIR RESPECTIVE CERTIFICATED SERVICE
AREA BOUNDARIES, CASE NO. CUS-07-
On February 14, 2007 , Custer Telephone Cooperative, Inc. filed a Petition for
Amendment of Certificated Service Area Boundary, asking the Commission to amend Custer
Certificate of Public Convenience and Necessity to include three areas identified as Yankee
Fork, Morgan Creek, and Slate Creek areas. Custer is a mutual , non-profit telephone company
over which the Commission has very little regulatory authority. Custer s Petition states that the
Commission issued a Certificate to Custer pursuant to Idaho Code ~ 62-615 , which authorized
the Commission to issue a Certificate to mutual telephone corporations that requested them.
That authority was removed, however, when that Section 62-615 was repealed by the Legislature
in 1997 and replaced with a new Section 62-615.
The Commission does have authority to designate a geographic service area for
eligible telecommunications carriers, including mutual telephone companies, pursuant to Idaho
Code ~ 62-610E. "Service area" is defined at Idaho Code ~ 62-610B(3) as "a geographic area
designated by the commission for the purpose of determining universal service obligations of
eligible telecommunications carriers." For rural telephone companies
, "'
service area' means the
company s 'study areas ' as established by the federal communications commission and the
DECISION MEMORANDUM
public utilities commission." Although Custer s Petition does not reference Idaho Code ~ 62-
610B or 62-610E, Staff believes the Commission is authorized to consider Custer s Petition
pursuant to those sections. Custer asked that its Petition be processed by Modified Procedure.
On February 15 , 2007, Custer and Midvale Telephone Exchange, Inc. filed a Joint
Petition for Amendment of Certificated Service Area Boundaries. Midvale is an incumbent
telephone provider regulated by the Commission pursuant to Title 61 , Idaho Code. The Joint
Petition states that the Companies ' certificated service areas are contiguous , and Custer and
Midvale participated in construction of a fiber optic ring to provide broadband service in their
certificated areas. As part of that project, the Companies agreed to a meet-point that was within
Midvale s certificated service area. The parties agreed to jointly seek amendment of their
respective boundaries to adjust Custer s certificated area to encompass its facilities up to the
agreed upon meet-point. The Companies requested that their Joint Petition be processed by
Modified Procedure.
Staff recommends that the Commission issue a Notice of Petition and Notice of
Modified Procedure in each case to process the two Petitions.
COMMISSION DECISION
Should the Commission issue a Notice of Petition and Notice of Modified Procedure
in Case No. CUS-07-01 and Case No. CUS-07-02?
=-----
Weldon B. Stutzman
bls/M:CUS-O7-01 CUS-O7-02 ws
DECISION MEMORANDUM