20070321Comments.pdf

WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3283
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Street Address for Express Mail:
472 W WASHINGTON
BOISE ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CUSTER TELEPHONE
COOPERATIVE, INC. AND MIDV ALE
TELEPHONE EXCHANGE, INc.'S JOINT
PETITION FOR AMENDMENT OF THEIR
RESPECTIVE CERTIFICATED SERVICE
AREA BOUNDARIES.
COMMENTS OF THE
COMMISSION STAFF
CASE NO. CUS-O7-
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through
its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, and in response to the
Notice of Application and Notice of Modified Procedure issued in Order No. 30261 on
February 28 2007, submits the following comments.
BACKGROUND
On February 15, 2007, Custer Telephone Cooperative, Inc. 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 west of Sunbeam, Idaho. As part of that project, the
Companies agreed to a meet-point that was within Midvale s certificated service area. The
STAFF COMMENTS MARCH 21 , 2007
parties agreed to jointly seek amendment of their respective boundaries to adjust Custer
certificated area to encompass its facilities up to the agreed upon meet-point.
At the time Custer and Midvale completed construction of the new meet-point, there were
no customers of Mid vale in the area encompassing the meet-point. According to the Joint
Petition, there are now six residential customers in the subject area who currently receive service
from Custer. Granting the Joint Petition would remove the area from Midvale s certificated area
and place it within Custer s certificated area.
STAFF REVIEW
According to the Joint Petition, Custer s principal place of business is in Challis, Idaho
and it maintain central offices in Challis, May, Elk Bend and Clayton. Clayton is contiguous
with the area in question in this Joint Petition. Because of the close proximity between the
Clayton central office and those six customers located in the northern portion of Midvale
Stanley exchange it appears that it will be much more efficient for Custer to monitor and serve
those customers.
Midvale is currently a state Universal Service Fund recipient pursuant to Idaho Code
~~ 62-610. The last audit performed on Midvale was prior to the meet point agreement entered
into between Midvale and Custer. During its last audit of Midvale s books and plant, Staff
calculated a revenue requirement and Universal Service Fund disbursement. The six customers
currently served by Custer within the Midva1e/Stan1ey exchange were not a part of Midvale
revenue requirement calculation, therefore, there will be no change in the existing revenue
requirement if this amendment is approved.
STAFF RECOMMENDATION
Because there be will no change in current revenue requirement to the ratepayers of Idaho
and given the contiguous location of the six customers currently being served by Custer, Staff
recommends approval of the Joint Petition for the amendment of the companies' certificated
servIce areas.
STAFF COMMENTS MARCH 21 2007
Respectfully submitted this ~;1 day of March 2007.
~---
~~O
Weldon B. Stutzman
Deputy Attorney General
Technical Staff: Carolee Hall
i :umisc :comments/custO7 2wsch.doc
STAFF COMMENTS MARCH 21 2007
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 21sT DAY OF MARCH 2007
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. CUS-07-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
DENNIS THORNOCK, MGR
CUSTER TELEPHONE COOP INC
1111 SOUTH MAIN
PO BOX 324
CHALLIS ID 83226
MICHAEL C CREAMER
GIVENS PURSLEY LLP
PO BOX 2720
BOISE ID 83701
LANE WILLIAMS
MIDV ALE TELEPHONE EXCHANGE INC
PO BOX 7
MID VALE ID 83645
K'~SE TARY
CERTIFICATE OF SERVICE