980212.docx

Donald L. Howell, II
Deputy Attorney General
Idaho Public Utilities Commission
472 W. Washington
PO Box 83720
Boise, ID 83720-0074
Telephone:  [phone]
FAX:  [phone]
Attorney for Commission Staff
Conley E. Ward
GIVENS PURSLEY & HUNTLEY, LLP
277 North 6th Street, Suite 200
PO Box 2720
Boise, ID 83701
Telephone:  [phone]
Attorneys for Silver Star Telephone and Teton Telecom
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION FROM RESIDENTS OF SWAN VALLEY, IRWIN AND PALISADES REQUEST­ING EXTENDED AREA SERVICE (EAS) TO ALL OF BONNEVILLE COUNTY, AND THE TOWNS OF RIRIE, VICTOR AND DRIGGS.
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CASE NOS.  GNR-T-96-6
                     GNR-T-97-3
                     GNR-T-97-8

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IN THE MATTER OF THE PETITION FROM RESIDENTS OF GRAY’S LAKE, WAYAN AND FREEDOM REQUESTING INCLUSION IN THE U S WEST COMMUNICATIONS EASTERN IDAHO CALLING REGION.

IN THE MATTER OF THE PETITION FROM RESIDENTS OF TETON COUNTY REQUEST­ING EXTENDED AREA SERVICE (EAS) TO THE GREATER IDAHO FALLS AREA

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STIPULATION AND SETTLEMENT
COME NOW Silver Star Telephone Company, Inc. (Silver Star), its affiliate, Columbine Telephone Company, Inc. dba Teton Telecom (Teton) and the Staff of the Idaho Public Utilities Commission by and through their respective attorneys of record and submit the following Stipulation and Settlement for the Commission’s consideration pursuant to Procedural Rules 272, 274-76. IDAPA 31.01.01.272, 274-76.  The Staff, Silver Star and Teton urge the Commission to incorporate this Stipulation and Settlement in its final order in these combined cases.
This matter is before the Commission as a result of petitions for extended area service (EAS) from Silver Star and Teton’s local exchange customers.  The petitions generally requested inclusion in the eastern Idaho EAS region established in Case No. USW-S-96-4, Order No. 26672.  By this Stipulation and Settlement, Silver Star, Teton and Staff intend to resolve all issues between the signatory parties in each of these three pending cases.
The parties previously testified at the hearings that EAS was warranted from the affected exchanges to the U S WEST eastern Idaho calling region. After notice to all parties of record, a settlement conference was held on February 4, 1998 to discuss the disputed issues between the Staff and Silver Star/Teton. Staff investigations into the costs of providing EAS for the Silver Star and Teton customers reveal that the rates proposed herein are just and reasonable and do not produce excessive earnings for the affected companies regardless of the disposition of the disputed issues. This Stipulation and Settlement is intended to dispose of the disputed issues.  Accordingly, the signatory parties hereby stipulate as follows:
1.Silver Star and Teton will implement extended area service for their local exchange customers to U S WEST’s eastern Idaho EAS region as soon as reasonably practical following the Commission’s entry of a final order approving this Stipulation and Settlement.  In the event additional U S WEST or independent company exchanges are added to this calling area, EAS will also be provided between the Silver Star and Teton exchanges and the additional exchanges subsequently added to the eastern Idaho EAS region.
2.The parties have agreed that the appropriate stimulation factor to be used for calculating EAS traffic and the necessary facility improvements should be at a “three times”(3X) rate.
3.Teton withdraws its request that its revenue requirements include the “lost growth potential” of approximately 7% resulting from Teton’s purchase of the Driggs exchange from U S WEST in Case No. SIL-T-94-1.
4.Silver Star and Teton withdraw their requests for additional revenues in the above described EAS cases upon Commission acceptance of this Stipulation and Settlement.  Silver Star and Teton will not seek further rate relief until final financial results are available for calendar year 1998, at the earliest.  This commitment will not bar an earlier request for rate relief in the event the companies’ revenues are substantially reduced by federal or state legislation or regulatory actions not related to these dockets or by a significantly underestimated buy up of measured service by Silver Star and Teton customers.
5.Silver Star and Teton’s flat rates for local exchange service, including EAS costs, shall be fixed at $24.10 per month for residential service and $42.00 per month for business service, with no zone charges allowed.  Teton (but not Silver Star) will offer a measured service option to residential customers only at the rate of $16.00 per month, including 90 free minutes of use, plus $.03 per minute for all usage in excess of 90 free minutes.  Mixing or combining of flat and measured service at a single customer premises shall not be allowed.
6.Except as provided in Paragraph 4 above, neither Silver Star nor Teton shall increase Idaho USF draws as a result of implementing EAS, but Silver Star shall continue to receive disbursements from the Idaho USF at existing levels.  In the event the Commission orders an alteration in Silver Star or Teton’s existing access charges, resulting revenue losses, if any, will be compensated through increased disbursements from the existing Idaho USF pursuant to Idaho Code § 62-610.
7.The rates and charges established by this Stipulation and Settlement are just and reasonable and produce revenues that are not more than Silver Star and Teton’s full revenue requirement on a combined company basis.
8.Acceptance and adoption by the Commission of this Stipulation and Settlement shall terminate any prior rate level or revenue requirement commitments by Silver Star and Teton except such as are expressly stated in this Stipulation and Settlement.
The signatory parties strongly believe that this Stipulation and Settlement represents a reasonable resolution of disputed issues encompassed herein.  The signatory parties recognize the complexity of the issues presented in this case and the amount of effort and resources that would be expended by all parties in litigation if settlement does not occur.  As reflected herein, the settlement of issues in this Stipulation carriers no precedential value beyond this particular case.  In the event that the Commission does not adopt this Stipulation, the Staff, Silver Star and Teton each reserve their rights to fully litigate the issues encompassed in this settlement.
The signatory parties do not believe that a hearing on this settlement is warranted but are ready to provide evidentiary support if necessary.  We urge the Commission to adopt this Stipulation and issue its final order in accordance with its terms.
DATED this                 day of February 1998.

Conley E. Ward
GIVENS PURSLEY & HUNTLEY, LLP
Attorneys for Silver Star Telephone Company,  Inc.
Columbine Telephone Company, Inc. dba Teton
Telecom

Donald L. Howell, II
Deputy Attorney General
Attorney for Commission Staff
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