28071.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF TARIFF ADVICE NO. 99-05-S OF U S WEST COMMUNICATIONS TO IMPLEMENT EXTENDED AREA SERVICE (EAS) FOR ITS BURLEY EXCHANGE CUSTOMERS. )
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) CASE NO. USW-T-99-6

ORDER NO. 28071
On April 14, 1999, U S WEST Communications filed Tariff Advice No. 99-05-S seeking approval of a new basic rate for its approximately 10,000 customers in the Burley exchange and Declo wire center. Tariff Advice 99-05-S is a compliance filing following implementation of extended area service (EAS) for U S WEST’s Burley exchange customers to the Albion Telephone Company exchanges located in Albion, Malta, Almo, Elba and Raft River, and customers of Project Mutual Telephone Cooperative in its Minidoka and Cassia County exchanges. The Commission previously approved a cost recovery methodology for U S WEST to allow for recovery of its costs associated with implementing the extended calling area. Tariff Advice 99-05-S, applying the cost recovery methodology approved by the Commission, results in a rate increase of $1.13 per month per customer in U S WEST’s Burley exchange and Declo wire center.
On May 3, 1999, the Commission issued a Notice of Tariff Advice and Notice of Modified Procedure. During the comment period, the Commission received seven letters from customers in the Burley/Declo serving area. The Cassia Regional Medical Center supported the EAS expansion. The Medical Center stated that EAS would enhance the delivery of health care services by improving access for rural residents of Cassia County. Four customers opposed the proposed increase because they do not make calls to the Albion and Project Mutual exchanges. Two other customers opposed the suggested rate increase because they are low-income customers and cannot afford the increase.
The Commission Staff filed written comments recommending approval based on the Commission’s previous approval of the cost recovery methodology and the Commission’s approval of EAS for these customers. Staff determined Tariff Advice No. 99-05-S to be consistent with the previous Commission Orders approving a cost recovery methodology and implementing EAS in the Mini-Cassia region.
Based upon our review of the Tariff Advice and the filed comments, we approve Tariff Advice No. 99-05-S. We find the Tariff Advice to be consistent with previous Commission Orders providing for EAS cost recovery in this case by U S WEST. The Commission in Order No. 27910 approved implementation of EAS for U S WEST’s Burley exchange customers, and also approved cost recovery for U S WEST “pursuant to the formula adopted by the Commission in its Order No. 27633 in Case No. USW-T-98-3.” Order No. 27910 at 4. The Commission in Order No. 27633 adopted the formula applied by U S WEST in this case. Accordingly, we find the rates reflected in Tariff Advice No. 99-05-S to be fair, just and reasonable.
Although six customers opposed the rate increase, the increase is mitigated by two options for customers. First, the Idaho Telephone Service Assistance Program (ITSAP) is available for eligible low-income residential customers. ITSAP provides eligible residential customers with a credit for local monthly service of $10.50. In other words, flat-rate local service for an ITSAP customer would be $2.25 per month. This represents a significant savings for eligible customers. Second, U S WEST offers both residential and business customers measured service. For customers who are able to limit their local calling, measured service also offers substantial savings. Under the rates approved today, the monthly rates for measured service for residential customers would be $8.01 and $12.76 per month for business customers (including three hours of local calling per month).
We encourage those customers who may be eligible for the ITSAP credit or desire to subscribe to measured local service to take advantage of these lower cost services. To facilitate customers moving from flat-rate to measured-local service, we shall direct the Company to waive the charge from switching from flat-rate to measured service for 60 days after the Company notifies customers of the rate changes. In addition, we shall also direct the Company to advise all of its customers of the impending rate changes and the availability of both ITSAP and measured service options.

O R D E R
IT IS HEREBY ORDERED that Tariff Advice No. 99-05-S filed by U S WEST is approved, effective June 30, 1999.
IT IS FURTHER ORDERED that U S WEST waive the non-recurring charge for affected customers desiring to switch to measured service for a period of 60 days after customers are advised of the rate change.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. USWT996 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this order or in interlocutory Orders previously issued in this Case No. USWT996. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of June 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER
ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:USW-T-99-6_ws2

ORDER NO. 28071 2

Office of the Secretary
Service Date
June 16, 1999