20041001Decision Memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DOUG COOLEY
DATE:SEPTEMBER 29, 2004
RE:PETITION FROM RESIDENTS OF THE SHOUP AREA REQUESTING
EAS INTO SALMON IDAHO; CASE NO. GNR- T -01-03.
On February 21 2001 , the Commission received a petition from approximately
twenty-six residents of the Shoup area requesting extended area service (EAS) into the Salmon
area. The Shoup exchange is located in northern Lemhi County and is served by Rural
Telephone Company. The exchange has approximately forty-two residential and fifteen business
telephone customers. There is presently local calling only within the exchange.
Salmon is the county seat of Lemhi County and is served by CenturyTel of Idaho.
CenturyTel operates three adjoining exchanges in Lemhi County: Salmon, Leadore and North
Fork with approximately 4 200 total customers combined. The petitioners have requested local
calling into the North Fork and Salmon exchanges.
ST AFF REVIEW
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.
Staff has received responses to production requests from both Rural Telephone
Company and CenturyTel of Idaho regarding the costs associated with the proposed EAS.
DECISION MEMORANDUM SEPTEMBER 29, 2004
EAS is approved, Staff proposes that Rural Telephone customers would experience a rate
increase from $21.63 per month to $24.10 for residential service and from $40.68 to $42.00 for
business service. In addition, Rural Telephone would increase its Idaho USF draw by
approximately $5,400 (1.7%) annually to cover its remaining EAS costs. CenturyTel customers
in Salmon and North Fork would experience an increase from $21.75 per month to $21.84 for
residential service and from $39.77 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.
STAFF RECOMMENDATION
Staff supports EAS between the Shoup exchange and the exchanges of North Fork
and Salmon. Staff recommends that the Commission gather public input regarding this case and
the associated costs to customers. Staff believes this can be accomplished by a public workshop
and/or hearing in Salmon along with an open comment period.
COMMISSION DECISION
Does the Commission wish to gather public input via a public hearing, a public
workshop, or an open comment period regarding EAS between the Rural Telephone exchange of
Shoup and the CenturyTel exchanges of Salmon and North Fork?
Does the Commission wish to proceed in some other way?
udmemos/gnrtOl.3 Shoup dec memo
DECISION MEMORANDUM EPTEMB ER 29, 2004