1990903Stipulation.doc

Deputy Attorney General
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
Tele: (208) 334-
Idaho Bar No. 3283
FAX: [phone]

Street Address for Express Mail:

472 W Washington
Boise, ID 83702-5983

Attorney for the Idaho Public Utilities Commission

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

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

STIPULATION

This case was initiated by a Motion filed by Fremont Telcom Company (Fremont) requesting an Order from the Commission for funding from the Idaho Universal Service Fund. The Company asked the Commission to issue an Order authorizing the Company to receive $52,165 from the Idaho USF per calendar year beginning November 1998, and also asked the Commission to schedule a proceeding to consider its claim that it is entitled to an additional $400,000 in USF funding. Fremont’s Motion was premised on an audit conducted by Staff based on a 1997 test year. On June 30, 1999, the Commission issued Order No. 28085 approving Fremont’s request for $52,165 from the state USF, and also approved Fremont’s request for a proceeding to determine whether the Company is entitled to additional rate relief. The Commission directed Fremont and Staff to work together to provide a procedural schedule to resolve the remaining issues arising from the Staff audit.
In order to fully and completely resolve the issues between the parties relating to the audit conducted by Staff, and subject to being approved by the Commission, Fremont and the Staff agree and stipulate as follows:
Fremont is entitled to additional funds from the Idaho USF in the amount of $298,393 per year, but only for the calendar years 1999 and 2000. The figure represents the discrepancy between Staff and the Company for air core cable-related depreciation expense.

For calendar years 1999 and 2000, Fremont will increase its depreciation expense in accounts 2421 and 2423 in the amount of $298,383 per year, and increase its depreciation account reserve in the same amount. No further claims for air core depreciation will be made by Fremont.

On January 1, 2001, Fremont’s draw from the state USF for the amount of $298,393 per year will terminate. Fremont will not be entitled to additional state USF support or rate relief unless and until it files and successfully pursues a rate case with the Commission.

This Stipulation represents a final and complete resolution between the parties of all remaining issues identified by Staff in the audit conducted by Staff based on a 1997 test year. In the absence of a rate case filing made by Fremont, Staff will not conduct a further audit of Fremont prior to January 2001.

This Stipulation is agreed to by the parties solely to resolve the issues presented in this case and shall have no value as a precedent in any other case or audit conducted by the Staff or presented to the Commission. Either or both parties may file a Motion seeking the Commission’s approval of this Stipulation.

RESPECTIVELY submitted this day of August 1999.

IDAHO PUBLIC UTILITIES COMMISSION STAFF

By:

Deputy Attorney General

FREMONT TELCOM COMPANY

By:
CONLEY WARD

vld/N:FRE-T-99-1_ws_stip

CERTIFICATE OF SERVICE

I HEREBY CERTIFY THAT I HAVE THIS DAY OF AUGUST 1999, SERVED THE FOREGOING STIPULATION, IN CASE NO.  FRE-T-99-1, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:

CONLEY WARD
GIVENS PURLSEY LLP
PO BOX 2720
BOISE ID 83701-2720
LOWELL R WILLIAMS
350 E 1ST S
ST ANTHONY ID 83445 JOHN BAUCHMAN
PRESIDENT
FREMONT TELCOM COMPANY
1690 DEL MAR
IDAHO FALLS ID 83404

Secretary

STIPULATION 4