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HomeMy WebLinkAbout2006Annual Report.pdfANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING _December 31 , 2006 COMPANY INFORMATION F r( E--- : I-! z:m r.::i~,S\: ~;f.~ Exact name of utility: Fremont Telcom Address of principal office: 110 East Main Street, Saint Anthony, ID 83445-1543 Telephone Number Area Code (208) 624-7300 E-mail address: pmartin~fairpoint.com Cities or towns served: Saint Anthony, Ashton , Teton, and Island Park, ID Name and title of officer having custody of the general corporate books of account: Lisa Hood Address of office where corporate books are kept and phone number: 305 N. Ruby, Ellensburg, WA 98926 Organized under the laws of the State of: Date of organization: March 9 , 1994 Form of organization (proprietorship, association , corporation): If a Subchapter S Corporation, please specify: Name and address of controlling company, if any: Idaho , ,. ,- '~ .':: , I (.UI,Uli' " - Corporation FairPoint Communications, 521 East Morehead Names of affiliated companies. Give address and description of business:None OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title , and address of the previous officer and the date of change. Title Chairman and CEO COO Name Eugene B. Johnson Peter G. Nixon Walter E. Leach , Jr. Shirley J. Linn Lisa R. Hood John Crowley Patrick L. Morse Michael J. Stein Thomas E. Griffin Exec VP Corp Development Senior VP & General Counsel Senior VP & Controller Exec VP/CFO VP of Re ulato Affairs Vice President Asst. Treasurer & Asst. Sec. Assistant Secreta Assistant Secretary Neil A. Torpe Thomas E. Kru Rev 3/02 Address 521 E. Morehead; Suite 250 Charlotte, NC 28202 521 E. Morehead; Suite 250 Charlotte, NC 28202 521 E. Morehead; Suite 250 Charlotte, NC 28202 521 E. Morehead; Suite 250 Charlotte, NC 28202 908 W. Frontview; PO Box 199 Dod e Cit , KS 67801 521 E. Morehead; Suite 250 Charlotte , NC 28202 908 W. Frontview; PO Box 199 Dod e Cit , KS 67801 908 W. Frontview; PO Box 199 Dod e Cit , KS 67801 521 E. Morehead; Suite 250 Charlotte, NC 28202 521 E. Morehead; Suite 250 Charlotte, NC 28202 521 E. Morehead; Suite 250 Charlotte, NC 28202 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only. Name and Address Eugene B. Johnson John P. Crowley Peter G. Nixon Walter E. Leach Shirley J. Linn Susan L. Sowell Patricia Garrison-Corb David Hauser Claude Lilly Robert Lilien Address for all is 521 E. Morehead , Ste 250, Charlotte, NC 28202 Term Expired or Current Term Will Expire Meetings Attended This year Fees Paid During Year Name of Chairman of the Board: ene B. Johnson Name of Secretary (or Clerk) of Board: Shirle J. Linn Number of Meetings of the Board during the year: MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts. Name Corey Packer Vickie Murray Title Operations Supervisor Office Manager Wages and Bonuses Paid$ 68 958.$ 46,436. Rev 3/02 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at EndTitle Of Account of Year of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 476286 440254.36031. 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 700 700 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 106483 105895.587. 1181 Accts. Rec. Allow. -Telecommunications 45254 21176.24077. 1190 Other Accounts Receivable 1832139 1506253.325885. 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 46131 135022.88891. 1280 Prepayments 1290 Prepaid Rents 93352.41 7014.86338. 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets 23427 14829 8598 Noncurrent Assets 1401 Investment in Affiliated Companies 452878 112360 340518 1402 Investment in Nonaffiliated Companies 1066551 1279984.213433. 1406 Nonregulated Investments 100777 66783 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 558269 893121 334852 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 29055259 29537350 482091. 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 190428 176845.13582, 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 255717 287025 31308 2007 Goodwill 3998088 3998088 Depreciation and Amortization Accounts 3100 Accumulated Depreciated 21671641 23700926 2029285. 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 154941 220243 65302 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS 16384649.41 14619181 1765468. Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Title of Account Current Liabilities 4010 Accounts Payable 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 4050 Current Maturities - Long -Term Debt 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Othe3 0002 00 Oerm Debt Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings TOTAL LlAB. & OTHER CREDITS Rev 3/02 Balance Balance Increase Beginning at End of Year of Year (Decrease) 1186944 1140872 46072 6355 32925 21072 11853 37263 93573 56310 55363 33249 22114 79515 73138 6377 349649 291857 57792 1081782 1212380 130598 6120 6120 16275508 16275508 2821197 4601726 1780529 16283872 14552398 1731474 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 39 4 2 1 39 4 2 1 21 1 2 Mo t o r V e h i c l e s 19 1 2 3 8 43 9 5 5 54 6 7 5 18 0 5 1 8 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 98 4 7 9 22 5 8 4 13 1 4 11 9 7 4 9 21 2 1 Bu i l d i n g s 72 9 1 2 2 72 9 1 2 2 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 47 7 6 47 7 6 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 28 4 5 4 2 12 4 3 28 5 7 8 5 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 18 0 5 6 2 3 32 2 7 5 18 3 7 8 9 8 22 1 2 Di g i t a l S w i t c h i n g S o f t w a r e 14 5 8 8 0 7 14 5 8 8 0 7 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 35 0 5 0 0 35 0 5 0 0 22 3 2 Ci r c u i t E q u i p m e n t 75 0 5 3 1 6 21 9 8 3 8 39 4 2 77 2 1 2 1 2 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 13 7 8 7 5 13 7 8 7 5 24 2 1 Ae r i a l C a b l e 36 2 3 3 6 72 1 36 1 6 1 5 24 2 2 Un d e r g r o u n d C a b l e 24 4 3 2 7 5 43 8 0 5 24 8 7 0 8 0 24 2 3 Bu r i e d C a b l e 13 3 2 8 5 7 2 20 6 4 7 2 41 1 4 8 13 4 9 3 8 9 6 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 30 0 0 30 0 0 24 4 1 Co n d u i t S y s t e m s 31 2 3 7 8 13 7 1 8 32 6 0 9 6 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 29 0 5 5 2 6 0 58 3 8 9 0 10 1 8 0 0 29 5 3 7 3 5 0 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e En d of Y e a r Tr a n s f e r s an d Ad j u s t m e n t s Pl a n t Re t i r e d or S o l d Ba l a n c e Be g i n n i n g of Y e a r Ad d i t i o n s Du r i n g Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d Sa m e a s T o t a l C o m p an y 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S Pa g e 7 Re v 3 / 0 2 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 19 1 2 3 8 33 . 15 0 5 5 52 1 7 5 15 4 1 1 8 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 98 4 7 9 11 4 7 0 13 1 4 10 8 6 3 5 21 2 1 Bu i l d i n g s 49 2 8 2 7 36 4 5 6 52 9 2 8 3 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 47 7 6 47 7 6 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 27 7 5 7 7 33 . 82 0 8 28 5 7 8 5 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 64 9 9 1 2 21 7 6 6 7 86 7 5 7 9 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 14 5 8 8 0 7 33 . 14 5 8 8 0 7 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 35 0 5 0 1 12 . 35 0 5 0 1 22 3 2 Ci r c u i t E q u i p m e n t 58 1 9 6 5 9 12 . 79 5 7 1 1 39 4 1 66 1 1 4 2 9 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 13 7 8 7 5 12 . 13 7 8 7 5 24 2 1 Ae r i a l C a b l e 31 3 1 4 6 30 4 3 4 72 0 34 2 8 6 0 24 2 1 Ae r i a l F i b e r 45 6 2 60 2 51 6 4 24 2 2 Un d e r g r o u n d C a b l e 93 0 8 1 20 4 3 8 11 3 5 1 9 24 2 2 Un d e r g r o u n d F i b e r 77 8 4 2 3 13 4 9 2 5 91 3 3 4 8 24 2 3 Bu r i e d C a b l e 89 8 2 8 5 7 74 5 0 5 9 14 6 8 9 3 4 11 1 9 6 8 5 0 24 2 3 Bu r i e d F i b e r 35 6 2 0 9 43 3 7 5 39 9 5 8 4 24 2 3 Bu r i e d C a b l e - L i n e E x t e n s i o n s 14 5 8 4 4 6 51 6 3 6 15 1 0 0 8 2 24 3 1 Ae r i a l W i r e 30 0 0 14 . 30 0 0 24 4 1 Co n d u i t S y s t e m s 20 0 2 6 7 17 5 4 8 21 7 8 1 5 TO T A L 21 6 7 1 6 4 2 21 2 8 5 8 4 99 2 9 8 23 7 0 0 9 2 8 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 8 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 21 2 1 B u i l d i n g s 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 22 3 2 C i r c u i t E q u i p m e n t 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 24 2 3 B u r i e d C a b l e 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 A e r i a l W i r e 24 4 1 C o n d u i t S y s t e m s TO T A L Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 ID A H O O p e r a t i o n s O n l y Ba l a n c e Be g i n n i n g of Y e a r De p r e c i a t i o n Ra t e Sa m e a s T o t a l C o m p a n y Pa g e 9 Cr e d i t s Du r i n g Ye a r Re t i r e m e n t s an d Ad j u s t m e n t s Ba l a n c e En d of Y e a r INVESTMENTS Report below the investments in Accounts 1401 , 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description Internet, Lease, Payphone Eq Fall River Electric Dividends Syringa Network Fremont Broadband Totals Date Acauired 1997 -2005 Mar- 2001-2002 2004 Book Cost of Investments Disposed of This year RECEIVABLES Book Cost of Investments Held at d of Year 66783 3239 276746 112360 1459128 Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of Company Customers CABS NECA/USAC State USF Related Party Miscellaneous Amount at End of YearNotes Accounts Receivablg Receivable 05895 74229 363149 10325 1053619 Totals Rev 3/02 Page 10 1607217 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor Interest RateDate of Note Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor AlP Trade Due Date NECA Related Party Totals Rev 3/02 Page 11 Face Amount Amount 236758 31370 872744 1140872 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 42 5 0 , 42 6 0 42 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Cl a s s & S e r i e s of O b l i g a t i o n No n e Re v 3 / 0 2 Da t e Is s u e Da t e Ma t u r i t y Fa c t Am o u n t Au t h o r i z e d Ou t s t a n d i n g Ye a r - En d Pa g e 1 2 Pr e m i u m ! D i s c o u n t Ye a r To t a l Am o r t i z e d In t e r e s t f o r y e a r Ra t e Am o u n t CAP IT AL STOCK Report below the particulars called for concerning common and preferred stock at end of year designating separate series of any general class, Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares consideration received , premium or discount, and expenses incurred. Class & Series of Stoc Common Rev 3/02 Number of Shares uthorized 100 000, Par Value ~er Share Page 13 Outstanding per Balance Sheet Shares Amount 5155.6120 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 16) Total Operating Expenses (from page 18) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 8642229 6672802 907141 225382 80366 326254 886635 2655 - 79466 76811 101732 26055 130598 258385 3128 3128 549621 1294089 Page 14 Same as Total Company OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Ofuer Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: NECA USF $ 2 348 592 1754400 Same as Total Company 44261 351715 2348592 504968 2422809 570648 544764 50875 7946 5238 27012 9001 8642229 State USF $ 123 894 To what account were they booked?5069 To what account were they booked? Rev 3/02 5084 Page 15 OPERATING REVENUES Item Total Com pany Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information Origination/Termination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intra building Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 Same as Total Company 264 107484 13567 478031 289131 188457 7592 4986 1403033 2492545 Page 16 Item OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Com pletion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 613 52516 65747 85301 27027 97421 35477 2128586 2492688 20254 8961 41797 2858 22751 503374 599995 295168 52616 394647 61893 27919 34034 67211 154086 1087574 6672802 Page 17 Same as Total Company CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 20 0 6 (u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : Sa i n t A n t h o n y , 1 0 Pr e f i x ( e s ) : j 20 8 ) 62 4 , 4 5 8 , 5 5 8 , 6 5 2 Ce n t r a l O f f i c e S w i t c h Ty p e : No r t e l O M S 5 0 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e Ch e c k o n e : Di g i t a l An a l o g - Ch e c k o n e : El e c t r o n i c El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : No r t e l O M S 5 0 0 Ac c e s s L i n e s i n Us e Cu s t o m e r L i n e s : (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . 50 5 5 ns t a l l e d / E q u i p p e d : 27 9 4 / 3 7 8 0 Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l L i n e s 20 7 Co m p a n y T e s t L i n e s 12 0 Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Mu l t i - Li n e Pa r t y Re s i d e n c e Bu s i n e s s Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Mu l t i - Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Pa r t y Pa r t y Re s i d e n c e NA R . Pa r t y pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 42 3 2 42 3 2 60 3 37 4 10 1 7 52 4 9 Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r 40 2 2 40 2 2 62 6 36 8 10 3 3 50 5 5 Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i ! 25 3 Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : 21 3 8 Re v 3 / 0 2 Pa g e 1 8 Lo c a l E x c h a n g e 1 T e t o n - 4 5 8 Is l a n d P a r k - 5 5 8 3 S a i n t A n t h o n y - 6 2 4 4 A s h t o n - 6 5 2 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G ( Y e a r L 2 0 0 6 Av e r a g e # Lo c a l C a l l s To l l C a l l s O r i q i n a t e d ( T o t a l o f a l l C a r r i e r s ) of C u s t o m e r Nu m b e r Av g . l Av g . l Li n e s i n U s e (1 O 0 0 s ) Li n e In t r a s t a t e In t e r s t a t e To t a l Li n e 55 6 No t A v a i l a b l e 93 1 5 5 71 5 8 9 7 80 9 0 5 2 14 5 5 . 11 6 3 No t A v a i l a b l e 10 3 5 0 5 14 3 1 7 9 3 15 3 5 2 9 8 13 2 0 . 22 7 4 No t A v a i l a b l e 55 8 9 2 6 38 9 7 6 6 0 44 5 6 5 8 6 19 6 0 . 10 6 2 No t A v a i l a b l e 27 9 4 6 4 19 0 9 0 5 8 21 8 8 5 2 2 20 6 1 . Pa g e 1 9 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, _2006 CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41,01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes- No Included in directory Yes - No Date of notification December 1 2005 Alternate method of notification Rule IDAPA31.41.01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill DeniallTermination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Kansas ) ss County of Ford , the undersigned _Lisa R. Hood and Michael J. Stein of the Fremont Telcom utility, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every tter and thing therein set forth , to the best of our knowledge, information and belief. ~dent Subscribed and Sworn to Before Me this _day of _March , (Year) _2007 My Commission expires _November 16 , (Year) _2010 NOTARY PUBLIC. State of Kansas BETTYE t~~rr() My Appt. ExjJ, Rev 3/02 gd k/exce I/j ne Iso n/a nul rpts/tela n n ua I rpt Page 21