20001012_ws.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
TONYA CLARK
DON HOWELL
LYNN ANDERSON
DAVE SCHUNKE
RANDY LOBB
JOE CUSICK
SYD LANSING
TERRI CARLOCK
WORKING FILE
FROM:
DATE:
OCTOBER 12, 2000 RE: CASE NO. GTE-T-00-9; PETITION BY GTE NORTHWEST FOR APPROVAL OF REVISED DEPRECIATION RATES

On June 8, 2000, GTE Northwest Incorporated, filed an Application for approval of changes in its depreciation rates for its Idaho intrastate operations. The Petition was submitted following a meeting between GTE, the Federal Communications Commission Staff, and Idaho Commission Staff in April 2000. The parties agreed during that meeting that GTE’s annual depreciation and amortization expense can increase from $31.183 to $34.525 million, an annual increase of $2.464 million. GTE’s Application included attachments showing the depreciation rates for specific accounts that currently exist and as proposed in its Application.
On September 13, 2000, the Commission issued a Notice of Application and Notice of Modified Procedure to process GTE’s Application. During the comment period, written comments were filed only by the Commission Staff. Staff comments provide greater detail regarding specific depreciation rates agreed to during the three-party meeting. Staff also indicated that it is currently in the process of completing an audit to determine the level earnings for GTE using a 1999 test year, and although the audit is not completed, Staff stated it is comfortable recommending approval of GTE’s requested depreciation rates.
Staff recommends the Commission approve GTE’s Application for approval of its revised depreciation rates.
Commission Decision
Should the Commission approve the Application of GTE to revise its depreciation rates as set forth in its Application?

vld/M:GTE-T-00-09_ws2

DECISION MEMORANDUM 1