20020117Exhibit to Application.pdf

R CEjy GVNW CON5ULTING,INC.
2270 LA MONTANA WAY (80918)
P.O.BOX 25969 (80936)
200 COLORADO SPRINGS,CO';TEL [phone]
FAX [phone]
January 16,2002
Terri Carlock
Idaho Public Utilities Commission
472 West Washington St.
P.O.Box 83720
Boise,ID 83720
Dear Terri:
Enclosed please find Rural Telephone's Exhibits in support of the company's revised
revenue requirement for its application for additional Idaho USF funding.
We have reviewed the staff's draft audit report and agreed to many of its listed
adjustments to capital costs,expenses,and cost of capital.We have,however,supplied
additional back-up for the support of labor costs,meal expenses,case costs,and the
inclusion of federal and state taxes in the revenue requirement.
Based on our revised revenue requirement the company is proposing that it be granted an
additional $73,704.53 in additional Idaho USF funding.The company strongly believes
it is fair and equitablethat the payments of such funds for 2001 be paid in one lump sum
of $67,562.48,reflecting the monthlypayments that would have been paid in February-
December 2001.The company instituted EAS service to its customers in February 2001
and should be compensated as of February 2001 for providing this service.We
understand that the staff's position is that the company should only be compensated from
the date of application filing,however,due to the following;1)EAS was ordered by the
Commission;2.)the company worked diligently and in good faith in meeting the
Commission ordered directives;3)the company had worked with the staff long before
the application date in preparing this filing.The company therefore believes that the staff
should consider these items in their recommendation.
If you have any questions please call me at 719-594-5820.
Sincerely,
Andy Schein
ec:Chris Dennison,Rural Telephone Company
Conley Ward,Givens &Pursley
Enclosure