20131024final_order_no_32911.pdf

Office of the Secretary
Service Date
October 24,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF BLACKFOOT )
TELECOMMUNICATIONS GROUP’S )CASE NO.FRE-T-13-O1
APPLICATION TO MODIFY ITS NUMBER )
RESERVE AND SEASONAL SERVICE )ORDER NO.32911
TARIFFS )
Blackfoot Telecommunications Group (“BTG”),after acquiring Fremont Telcom
(“Fremont”)from FairPoint Communications,is updating its tariffs and billing systems and
transitioning customers to upgraded services.The Company filed revised tariffs and seeks
Commission approval to eliminate Number Reserve service,clarify its current seasonal service
charges,and adjust the residential customer rate to comply with the rate floor guidelines
established by the Federal Communications Commission.47 C.F.R.§54.3 18.The Company
also asks the Commission to approve a $25.00 non-recurring charge for the second and
subsequent activations of seasonal service,a charge to discourage customers from disconnecting
and reconnecting service numerous times throughout a calendar year.
The Commission issued a Notice of Application and Notice of Modified Procedure on
October 2,2013,to process BTG’s Application.Written comments were filed only by the
Commission Staff.
Number Reserve
In 1998,Fremont began offering Number Reserve service at a rate of 25%of the flat
rate local service charge,or $6.44 for residential and $10.20 for business customers.Number
Reserve service retained a customer’s telephone number when the customer left the area for an
extended period of time,and disconnected dial tone and all other switch-based services
associated with it.BTG discovered that on occasion the Number Reserve service was
incorrectly provisioned as seasonal or vacation service,enabling customers to receive calls and
make outbound calls.BTG proposes to discontinue the Number Reserve service and migrate
those customers to its Seasonal Service,preserving the customer’s phone number and line.The
Company is setting a monthly rate of $14.00 and $21.00,for residential and business customers,
respectively.The old Seasonal Service residential rate was $12.90 per month.As reflected in
the Company’s cost analysis,some customers are choosing to discontinue their service instead of
ORDER NO.32911 1
migrating.Overall,the number of disconnects have not had a significant impact on revenues.
Staff Comments,p.2.
Rate Change to Comply With the FCC
The proposed monthly increase in the residential Seasonal Service rate from $12.90
to $14.00 is to comply with the FCC’s Connect America Fund Order.’The monthly business
rate of $21.00 complies with the FCC’s Order and does not need to be adjusted.See FCC 47
CFR §54.3 18.The Company presented a cost analysis with its filing indicating the rate
adjustment will be revenue neutral.Although it is difficult to calculate the revenue impact on an
optional service for seasonal customers,Staff believes the submitted rate analysis is reasonable.
Staff Comments,p.2.
The Company also provided a copy of the customer notices that were published in the
local newspaper on September 24 and 27.The Company indicated many customers are simply
opting to disconnect their service instead of paying the monthly rate increase,which was
reflected in the Company’s cost analysis.Staff Comments,p.2.
Non-Recurring Service Order Charge
BTG proposes to implement a $25.00 service activation fee.Customers placing their
service on seasonal status will not be charged the $25.00 non-recurring fee for a one-time
activation in a 12-month period.The charge will be assessed,however,each time Seasonal
Service is activated during a 12-month period following the initial activation/termination.The
fee is meant to deter repeated activations/terminations during a single year.The fee will be
waived if the customer selects the Company’s regular local exchange service.Staff stated the
proposal is reasonable and is similar to many service activation charges for the industry as a
whole.Staff Comments,p.2.
On the record presented,the Commission finds the tariff adjustments submitted by
BTG to (1)eliminate Number Reserve service,(2)implement a $25 charge for multiple
activations of Seasonal Service,and (3)increase the residential Seasonal service rate from
$12.90 to $14.00 are fair,just and reasonable.The modest increase in the Seasonal Service rate
See In the Matter of Connect America Fund;A National Broadband Plan for Our Future;Establishing Just and
Reasonable Rates for Local Exchange Carriers;High-Cost Universal Service Support;Developing an Unified
Intercarrier Compensation Regime;Federal-State Joint Board on Universal Service;Lifeline and Link-Up;
Universal Service Reform —Mobility Fund,WC Docket Nos.10-92,07-135,05-337,03-109,GN Docket No.09-51,
CC Docket Nos.01-92,86-45,WT Docket No.10-208,Report and Order and Further Notice of Proposed Rule
Making,FCC 11-161,pp.234-241 (rd.Nov.18,2011)
ORDERNO.32911 2
is prompted by FCC requirements,and the Company projects the rate change will be revenue
neutral.The Commission approves the adjustments to BIG’s tariffs submitted with its
Application,effective November 1,2013.
ORDER
IT IS HEREBY ORDERED that the tariff adjustments submitted by Blackfoot
Telecommunications Group to (1)eliminate Number Reserve service,(2)implement a $25
charge for multiple activations of Seasonal Service,and (3)increase the residential Seasonal
Service rate from $12.90 to $14.00 are fair,just and reasonable.These changes are effective
November 1,2013.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 2013.
MACK A.REDPO&,COMMISSIONER
(‘c1k)J4LL
MARSHA H.SMITH,COMMISSIONER
ATTEST:
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ORDERNO.32911 3