19990630Order No 28085.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE MOTION OF FREMONT TELECOM COMPANY FOR FUNDING FROM THE IDAHO UNIVERSAL SERVICE FUND. )
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) CASE NO. FRE-T-99-1

ORDER NO. 28085

This case was initiated by a Motion filed by Fremont Telcom Company (Fremont) on April 9, 1999, requesting funding from the Idaho Universal Service Fund. By its Motion, the Company asked the Commission to issue an Order “authorizing Fremont to receive $52,165 from the Idaho USF for the calendar year beginning November 12, 1998.” Fremont Motion pp. 4-5. Fremont also asked the Commission to schedule a proceeding to consider its claim that it is entitled to an additional $400,000 in rate relief.
On May 7, 1999, Staff filed a Response to Fremont’s Motion, and in addition, filed a Motion for a declaratory ruling. Staff requested that the Commission deny Fremont’s Motion for funding from the Idaho USF, and also issue an Order “to confirm that known and measurable NECA [National Exchange Carrier Association] payments to Fremont should be considered in determining Fremont’s revenue requirement.” Staff Motion p. 3. By this Order, we find that Fremont is eligible for USF distribution of $52,165 annually from and after November 12, 1998. We direct the parties to propose a further process to allow determination of the Company’s final revenue requirement.
A preceding case implementing extended area service (EAS) for Fremont’s customers and an audit conducted by Staff underlie Fremont’s Motion in this case. In the prior case, Fremont entered into a stipulation with Staff providing for implementation of EAS and new customer rates. The stipulation also provided that Fremont would not seek rate relief or disbursements from the Idaho USF until such time as either the Staff completed an audit of the Company’s 1997 annual report or the Company had 1998 financial information available for review, whichever occurred first. The Commission approved the stipulation in Order No. 27657. However, the Commission did not “reach the merits of whether Fremont would be entitled to USF disbursements following completion of the Staff’s audit.” Order No. 27657 p. 7. The Commission did not reach a decision on the question of USF support, finding it “not ripe for resolution at this time.” Id.
We now find, based on the audit report in the preceding case, that Fremont is entitled to receive a disbursement from the Idaho USF in the amount of $52,165 on an annual basis, effective November 12, 1998. That is the date on which the previously approved EAS was implemented by Fremont, and thus is the effective date for the Company’s USF funding request. Accordingly, we grant Fremont’s Motion for relief from the Idaho USF and deny Staff’s Motion for a Declaratory Ruling. We find Fremont should receive USF disbursements of $32,604 in a lump sum for November 12, 1998 through June 1999 and monthly disbursements thereafter of $4,347. We also approve Fremont’s request for a proceeding to determine whether Fremont is entitled to additional rate relief. Accordingly, Fremont and Staff should work together to provide a procedural schedule, including if necessary a prehearing conference, to resolve the remaining issues.

O R D E R
IT IS HEREBY ORDERED that Fremont Telcom Company’s Motion for an annual distribution from the Idaho Universal Service Fund in the amount of $52,125 is granted, effective November 12, 1998. The Company and Staff shall provide a procedural schedule to resolve the issues relating to Fremont’s request for additional rate relief.
THIS IS AN INTERLOCUTORY ORDER. Any person interested in this Order may file a petition for review within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order. A petition to review may request that the Commission: (1) rescind, clarify, alter, amend; (2) stay; or (3) finalize this Interlocutory Order. After any person has petitioned for review, any other person may file a cross-petition within seven (7) days. See Rules 321, 322, 323.04, 324, 325 (IDAPA 31.01.01.321 –325.)
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of June 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Barbara Barrows
Assistant Commission Secretary

vld/O:FRE-T-99-1_ws

ORDER NO. 28085 1

Office of the Secretary
Service Date
June 30, 1999