20041013Notice of Modified Procedure Order No 29613.pdf

Office of the Secretary
Service Date
October 13, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION FROM THE
RESIDENTS OF THE SHOUP AREA REQUESTING
EXTENDED AREA SERVICE INTO SALMON, IDAHO. CASE NO. GNR- T-OI-
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT
DEADLINE
ORDER NO. 29613
On February 21 2001 , the Idaho Public Utilities Commission received a Petition from
approximately 26 residents of the Shoup, Idaho area requesting toll-free extended area service (EAS)
into Salmon, Idaho. The Shoup exchange is located in northern Lemhi County and is served by
Rural Telephone Company. Although the exchange has approximately 40 residential and 10 business
telephone customers, there is presently no toll-free calling to any other exchange. On April 3 , 2001
the Commission issued a Notice of Petition and Intervention Deadline. Order No. 28694. Having
concluded its investigation, Staff recommends approval of the Petition for EAS between the Shoup
exchange and the exchanges of North Fork and Salmon. The Commission now seeks comment on
whether this EAS petition should be approved in light of the relatively modest rate increases it would
requIre.
BACKGROUND
The Shoup exchange is located in northern Lemhi County and is served by Rural
Telephone Company. The exchange has approximately 42 residential and 15 business telephone
customers. There is presently local calling only within the exchange.
Salmon, Idaho is the county seat of Lemhi County and is served by CenturyTel of Idaho.
CenturyTel has approximately 4 200 customers in Lemhi County and operates 3 adjoining exchanges
with Salmon, North Fork and Leadore. The Salmon extended area exchange runs from Leadore to
the Montana border and interconnects with the Shoup exchange approximately 22 miles north of
Salmon. The petitioners have requested local calling into the North Fork and Salmon exchanges.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO. 29613
The petitioners allege that one of the many reasons they are requesting toll-free EAS to
Salmon, Idaho is that it is prohibitively expensive for Shoup residents to dial outside their exchange
area to contact local physicians, the local medical facility, schools, social services, Internet providers
law enforcement and emergency services.
While EAS creates toll-free calling among exchanges, the costs associated with
converting a former long-distance toll route to a toll-free EAS route must be recovered from all
customers within those exchanges by increasing rates for local service. In Order No. 26311 , the
Commission adopted a set of standards or criteria to evaluate when EAS should be implemented.
Those criteria are: call volume and call distribution (how many customers in an exchange call the
other exchange); geographic proximity (distance between exchanges); the presence of geographic or
other physical barriers (mountains, rivers, valleys) between exchanges; county seat relationship (are
both exchanges in the same county); the relationship to school district (do both exchanges share the
same school district); the proximity to medical facilities and services; and the willingness of
customers to pay increased rates to cover the costs for converting those routes to toll free routes. The
Commission balances these community-of-interest standards against the costs and rate impacts of
providing EAS. When EAS costs are disproportionate to customer needs and benefits, the
Commission has denied requests for EAS.
STAFF REVIEW AND RECOMMENDATION
In its review of the Petition, Staff noted that Shoup is a community with many seasonal
cabins and recreational businesses related to fishing and floating the adjacent Salmon River. Shoup
has a small cafe which includes a post office as well as two other small convenience stores that Staff
is aware of. For services such as health care, government agencies, schools, churches, businesses
and almost all shopping, Shoup residents must travel approximately 35 miles to Salmon. Unlike
Shoup, Salmon has at least one Internet service provider.
Staffhas received responses to production requests from both Rural Telephone Company
and CenturyTel of Idaho regarding the costs associated with the proposed EAS. IfEAS is approved
Staff proposes that the rates of Rural Telephone customers increase from $21.63 per month to $24.
for residential service, and from $40.68 to $42.00 for business service to pay for the extended area
service. In addition, Rural Telephone would increase its Idaho USF draw by approximately $5,400
(1.7%) annually to cover its remaining EAS costs. The rates of CenturyTel customers in Salmon and
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO. 29613
North Fork would increase from $21.75 per month to $21.84 for residential service, and from $39.
per month to $39.86 for business service.
The most recent Shoup calling data collected in July 2004 indicates that most business
customers and many residential customers call into Salmon frequently. For example, 86% of
Shoup s business customers made at least one phone call to Salmon during the month while over
60% of residential customers made at least one phone call to Salmon.
In light of these facts and the evaluation standards set forth in Order No. 26311 , Staff
supports EAS between the Shoup exchange and the exchanges of North Fork and Salmon.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has reviewed the filings of record
in Case No. GNR-01-3. The Commission has preliminarily determined that the public interest
may not require workshops or hearings to consider the issues presented in this case, and that the
issues raised by the Company s filing may be processed under Modified Procedure, i., by written
submission rather than by hearing. IDAPA 31.01.01.125
, .
201-204. In so doing, the Commission
notes that Modified Procedure and written comment have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this
proceeding unless it receives written protests or comments opposing the use of Modified Procedure
and stating why Modified Procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or comments are received within
the deadline, the Commission may consider the matter and enter its Order without a hearing. If
protests or comments are filed within the deadline, the Commission will consider them and may set
the matter for hearing or may decide the matter and issue its Order on the basis of the written
positions before it. IDAP A 31.01.01.204.
NOTICE OF COMMENT DEADLINE
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Petition may file a written comment in support or opposition with the Commission within 21 days
from the service date of this Notice. The comment must contain a statement of reasons supporting
the comment. IDAP A 31.01.01.202.02. Persons desiring a hearing must specifically request a
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO. 29613
hearing in their written comments. Written comments concerning this Petition shall be mailed to the
Commission at the address reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ill 83702-5983
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that the Petition in this case is available for public
inspection during regular business hours at the Commission offices located at 472 West Washington
Street, Boise, Idaho, [phone].
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this matter
pursuant to Title 61 of the Idaho Code.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure and the
foregoing schedule be adopted.
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO. 29613
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
jg,t1--
day of October 2004.
ATTEST:
~f:J,
J a ' D. Jewell
Commission Secretary
O:G~RTOI03 In2
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT DEADLINE
ORDER NO. 29613
MARSHA H. SMITH, COMMISSIONER
S S. HANSEN, COMMISSIONER