HomeMy WebLinkAbout19991008Decision Memo.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
TONYA CLARK
LYNN ANDERSON
DON HOWELL
STEPHANIE MILLER
JOE CUSICK
SID LANSING
TERRY CARLOCK
DOUG COOLEY
JUDY STOKES
WORKING FILE
FROM: CHERI C. COPSEY
DATE: OCTOBER 8, 1999
RE: IN THE MATTER OF THE JOINT APPLICATION OF MIDVALE TELEPHONE EXCHANGE, INC. AND SAWTOOTH TELEPHONE, INC. FOR AUTHORITY TO INCREASE RATES AND DISBURSEMENTS FROM THE IDAHO USF – CASE NOS. MID T 99 1 AND SAW-T-99-1
On September 28, 1999, Midvale Telephone Exchange, Inc. and Sawtooth Telephone, Inc. filed a Joint Application requesting authority for Midvale and Sawtooth to increase local exchange rates and receive increased distributions from the Idaho Universal Service Fund effective November 1, 1999.
BACKGROUND
Sawtooth is the subsidiary of Midvale that provides basic local exchange service in the Stanley exchange. Midvale is an Idaho USF recipient that provides service to Yellow Pine, Warren, Warm Lake, Midvale and Lakeside. On September 29, 1999, Midvale and Sawtooth applied to the Commission for an order authorizing the merger of the two companies. MID-T-99-2/SAW-T-99-2. Neither Midvale’s nor Sawtooth’s basic local rates currently comply with statutory requirements necessary to retain USF eligibility. On August 30, 1999, Midvale was ordered by the Commission to file a plan indicating whether it intended to continue to receive USF funding and if it did intend to continue receiving funding, how it would meet the statutory requirements. Order No. 28124. In response, this Application was filed raising rates for all exchanges to the statutory threshold except Stanley and Midvale. Those exchanges’ rates were raised to $24.00 (residential) and $42.00 (business) in anticipation of the Commission authorizing extended area service.
STAFF RECOMMENDATION
While the tariff does meet the statutory threshold requirements necessary to retain USF funding, Staff recommends suspending the tariff for a period of thirty (30) days plus five (5) months from November 1, 1999, because the Commission has not yet determined that EAS is well founded for the Stanley and Midvale exchanges. The suspension will allow Staff to investigate the proposed EAS and to allow the Commission to hear the evidence to be presented in this matter, to consider that evidence and to determine the issues presented in this Application.
COMMISSION DECISION
Should the tariff be suspended pursuant to Idaho Code § 61-622 for a period of thirty (30) days plus five (5) months from November 1, 1999, or until such time as the Commission may issue an Order accepting or rejecting or modifying the Application in this matter?
Cheri C. Copsey
Staff: Doug Cooley
Judy Stokes
M:midt991-sawt991_cc
DECISION MEMORANDUM 1