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HomeMy WebLinkAboutEAS11191.txt 1 SWAN VALLEY, IDAHO, WEDNESDAY, NOVEMBER 19, 1997, 10:00 A. M. 2 3 4 COMMISSIONER HANSEN: Good morning, ladies 5 and gentlemen. This hearing will now be in order. This 6 is the time and place set by the Idaho Public Utilities 7 Commission for a public hearing in Case No. GNR-T-96-6, 8 known as in the matter of the petition from residents of 9 Swan Valley, Irwin and Palisades requesting extended area 10 service to all of Bonneville County and the towns of 11 Ririe, Victor and Driggs. 12 My name is Dennis Hansen and I'm a member 13 of the Commission. I'll be Chairman of today's hearing. 14 At my left is Commissioner Ralph Nelson and 15 Commissioner Marsha Smith is excused today for another 16 commitment that she has. The three of us make up the 17 entire Commission and we will be the ones that will 18 decide this case. 19 First off, I'd like to take the appearances 20 of the parties and we'll start with the Staff, 21 Mr. Howell. 22 MR. HOWELL: Don Howell, Deputy Attorney 23 General, representing the Commission Staff. 24 MS. HOBSON: I'm Mary Hobson. I'm an 25 attorney for U S WEST Communications. 1 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 MR. WARD: And my name is Conley Ward. I'm 2 an attorney for Silver Star Telephone. On my left is 3 Allen Hoopes, the president of Silver Star and on my 4 right, Ron McCue, the vice president of Silver Star. 5 COMMISSIONER HANSEN: The purpose of this 6 hearing today is to hear from you, but before we start, 7 I've asked each one of the parties to give a brief 8 summary of their position on this case and to enlighten 9 you just a little bit of what has happened and so we'll 10 start with Mr. Ward or Mr. Hoopes, okay. 11 MR. HOOPES: Yes, I am president of Silver 12 Star Communications. We want to start out by making a 13 statement that we support the inclusion of the Swan 14 Valley/Irwin area into this calling area and feel that it 15 will be good for the community. We realize the 16 remoteness of Swan Valley and Irwin without the ability 17 to have hospital or your high school is not here and over 18 the years some of the services have declined in the 19 valley. As we've seen changes in society, you have less 20 access to some of the things that you used to have, so we 21 do support this inclusion into this calling area and feel 22 it will be a good thing for you as citizens. 23 Not only do we support that you be in the 24 Idaho Falls area, but also the Pocatello calling, so you 25 would basically have the same calling area that the 2 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 U S WEST customers received earlier in May of this year. 2 We actually have rate three options which 3 the Commission is considering from our side and they will 4 be considering some from Staff, also. The first option, 5 which is the option the company supports, is a levelized 6 rate of 17.51 for both business and residential service, 7 and when I say 17.51, that is the total amount that you 8 would pay for your service, including the calling area. 9 There is also a second option which would 10 be 17.51 for residence and 36.57 for business, and the 11 last option is option three, it's 17.51 for residence and 12 26.27 for business, and what the company is proposing is 13 that the residential rate be taken to the statewide USF 14 threshold, which is 125 percent of the statewide average, 15 and any remaining deficiency in revenues come out of that 16 universal service fund in Idaho. 17 Again, the company supports this, we feel 18 it's good for the community. We would encourage you to 19 support it and to testify for it today and thank you very 20 much. 21 COMMISSIONER HANSEN: U S WEST? 22 MR. SOUBA: Good morning, ladies and 23 gentlemen. My name is John Souba. I'm here representing 24 U S WEST Communications. U S WEST, as you know, is the 25 provider of the local calling region that we recently 3 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 established in May. U S WEST's position is very simple. 2 If the Idaho Public Utilities Commission determines there 3 is sufficient community of interest to grant expanded 4 local calling in this case, U S WEST recommends that the 5 Idaho communities served by Silver Star and Teton who 6 have petitioned the Commission in this case be made part 7 of U S WEST's new eastern Idaho local calling region. 8 This region includes, and again this region 9 was established in May of 1997, this region includes the 10 following communities that are served by U S WEST today: 11 American Falls, Bancroft, Blackfoot, Dayton, Downey, 12 Firth, Franklin, Grace, Idaho Falls, Inkom, Lava Hot 13 Springs, Lewisville, Menan, McCammon, Montpelier, 14 Pocatello, Preston, Rexburg, Rigby, Ririe, Riverside, 15 Roberts, Shelley, Soda Springs and Thatcher. Now you 16 know why I had to read this. 17 U S WEST recommends that both telephone 18 companies be allowed to recover the costs of providing 19 the expanded local calling through increases to local 20 rates. U S WEST also recommends that any expanded local 21 calling be made two way and should be mandatory versus 22 optional. Thank you. 23 COMMISSIONER HANSEN: Staff. 24 MR. SCOTT: Hi, my name is David Scott. 25 I'm the public information officer with the Public 4 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 Utilities Commission. For those of you who have come in 2 late but would like to testify, we do have a sign-up 3 sheet over here that we'd like you to register your name 4 on so that we can call you in order. Print your name, 5 please. We're having difficulty reading some of these. 6 I'll just go ahead as people walk in. 7 Before I begin, let me just explain the 8 terminology you'll be hearing a lot of and that is 9 extended area service or EAS. That term is synonymous 10 with toll free calling. 11 Today's proceeding involves Case GNR-T-96-6 12 and GNR-T-97-3. The Commission initiated Case GNR-T-96-6 13 in response to a petition from residents from the Irwin, 14 Swan Valley, Wayan and Palisades communities requesting 15 toll free calling to Idaho Falls, Soda Springs and the 16 surrounding areas. Case GNR-T-97-3 was initiated in 17 response to a petition from residents of the Irwin and 18 Swan Valley area wanting EAS calling into Driggs and 19 Victor. 20 The Commission Staff conducted an 21 investigation which looked at both community of interest 22 issues and the costs associated with these petitions. 23 When we refer to community of interest issues, we are 24 speaking specifically about such things as school 25 districts, government services, medical services and 5 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 other essential-type services. 2 Probably of little surprise to most of you 3 here this morning, Staff found there's a strong community 4 of interest in calling Idaho Falls and Driggs for the 5 customers from Irwin and Swan Valley. Staff also found a 6 very strong community of interest for the customers of 7 Wayan to call Soda Springs and the surrounding areas. 8 The purpose of today's hearing is to gain further insight 9 into the community of interest with these exchanges and 10 the eastern Idaho region. We also hope to gain 11 additional insight into the willingness of customers to 12 pay for the cost of this EAS. 13 As in all contested cases, there are some 14 differences between Staff and, in this case, Silver Star 15 over the cost of this proposal. Consequently, the 16 numbers I am about to give you represent Staff's analysis 17 and will differ from the company's. Staff's analysis 18 indicates that the total cost of calling the entire 19 eastern Idaho region and the Driggs exchange will be 20 $21.00 per month per residential line and $36.57 per 21 month per business line. These monthly rates reflect an 22 increase of $7.00 per month for each residential line for 23 Wayan customers, $6.00 a month for each Irwin residential 24 customer line and $14.01 per month for each business 25 line. The remaining revenues under Staff's 6 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 recommendations would be paid from the Idaho universal 2 service fund. 3 Staff has recommended that the Commission 4 grant EAS to the eastern Idaho region as well as into the 5 Driggs exchange, which will allow Silver Star customers 6 larger EAS region than what U S WEST customers currently 7 enjoy. I would also like to note the importance of your 8 attending today's hearing and giving your testimony. 9 We have a court reporter, as you can see, 10 that will register your remarks and those remarks will be 11 entered into the official record by which the Commission 12 will render a decision. When you come up, you'll be 13 sworn in and then you'll take your seat and there's a 14 microphone up here that you can use similarly to how I'm 15 using it now so that those in the back of the room can 16 hear you. Thank you. 17 COMMISSIONER HANSEN: Thank you. I'd just 18 like to mention sometimes there's a little confusion, the 19 Staff is not the Commission and the Commission will make 20 the decision on this matter. The purpose of this hearing 21 today is to hear from you people to help us in making 22 this decision and those of you that would like to get up 23 and make a statement publicly, we'd love to hear from 24 you. 25 If some of you would rather not make it 7 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 publicly, but would like to make a statement in writing, 2 we have sheets there available that you can write out 3 your opinion or statement and give it to a member of our 4 Staff and that way we can incorporate that into the 5 record and have your views and feelings on these 6 matters. 7 Our procedure today, as you entered the 8 room, we had a sign-up sheet and some of you have come a 9 little bit late and so we do have a sign-up sheet and 10 we'll give you an opportunity to -- maybe we could ask 11 Mr. Scott if he'd just maybe pass one out at the back of 12 the room and if you want to sign up, you can sign up on 13 that. That way, you will not have to come up to the 14 front and we can get you on there. 15 Basically, I'll call your name and, as 16 Mr. Scott mentioned, we'll ask you to come forward. 17 Commissioner Nelson will ask you to raise your hand and 18 he'll swear you in that you'll tell the truth, and we 19 know that you'll all tell the truth over here, but we 20 need to do that and then after you're sworn in, if you'd 21 just like to take a seat there or if you'd prefer to 22 stand, whichever, and the Deputy Attorney General, 23 Mr. Howell, will ask you a couple of questions, mainly 24 your name and ask you to spell your last name for the 25 record and your address. 8 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 After that, you will be free then to make 2 your statement. After you've made your statement, I need 3 to ask the parties if they have any questions that they 4 want to ask you or if the Commission does and you don't 5 need to be worried. If you have the answer, you can tell 6 them and if you don't, you can just tell them you don't 7 know and we'll support you on that; so anyway, we will 8 start. 9 Our first person to sign up is R. M. 10 Kelly. Would you like to come forward? Okay. Sometimes 11 there's a little confusion in that people sign up and 12 they may not want to make a statement, but they were 13 signing in, so if that's the case and your name is 14 called, you can just tell us that you'd rather not make a 15 statement. 16 The next person we have is Joan Weeks. 17 18 19 20 21 22 23 24 25 9 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 JOAN WEEKS, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 EXAMINATION 6 7 BY MR. HOWELL: 8 Q Good morning. I need you to state your 9 full name and spell your last for the record, please. 10 A Joan N. Weeks, W-e-e-k-s. 11 Q And, ma'am, can you give us an address? 12 A Irwin, Idaho, Post Office Box 135. 13 Q And are you a customer of Silver Star? 14 A Yes, I am and I have been ever since the 15 phones came into the valley. 16 Q And when was that? 17 A Heck, I don't remember. It was, like, 18 about '66. It seems like a lifetime ago, but it's been a 19 long time ago. 20 Q And do you have a statement you'd like to 21 give us today? 22 A Yes. I think this is well overdue. I 23 think we should have been on this here deal a long time 24 ago and I think that we have been kind of, you might say, 25 stranded up in here. A lot of times the phones don't go 10 CSB REPORTING WEEKS Wilder, Idaho 83676 Public 1 through and a lot of times we can make local calls but no 2 long distance and so I feel like that we really need this 3 service. 4 We're a long ways away from our families. 5 Our families are all out of here. My families are in 6 Idaho Falls and Rigby and Star Valley and I feel like 7 that it really costs a lot of money for long distance 8 calls all the time and I feel like that other people in 9 the other towns have had this privilege, so why shouldn't 10 we. We should have this same privilege that other people 11 have had and it's long overdue. I feel like this should 12 have happened to us a long time ago because we have been 13 Silver Star patrons for a good many years. 14 COMMISSIONER HANSEN: Thank you. If you'll 15 just stay there just a moment and let's see if we have 16 any questions. 17 Do we have any questions? 18 MR. WARD: No questions. 19 COMMISSIONER HANSEN: Commissioner Nelson, 20 did you have a question? 21 MR. HOWELL: I had a question. 22 COMMISSIONER HANSEN: Oh, excuse me, 23 Mr. Howell. 24 25 11 CSB REPORTING WEEKS Wilder, Idaho 83676 Public 1 CROSS-EXAMINATION 2 3 BY MR. HOWELL: 4 Q Ma'am, can you tell us what your average 5 long distance bill is? 6 A Our phone bill averages, we have a son in 7 Utah, also, so our average long distance phone calls is 8 around $50.00 every single month. 9 Q And how much more would you be willing to 10 pay to pay for free calling? 11 A What are we paying now? $19.00, average 12 about $20.00 for local, isn't that about right? 13 AUDIENCE: 20.01. 14 THE WITNESS: 20.01 after taxes was added 15 on. It was 19 some, plus a little few cents each time, 16 and it came up a whole lot since we first started. 17 Q BY MR. HOWELL: I guess my question is the 18 people in Idaho Falls are now paying $5.50 extra a month 19 for that -- 20 A I would be willing to pay a reasonable 21 price extra. 22 Q And what is a reasonable price in your 23 mind? 24 A Well, it depends on how much you are going 25 to offer us. I'm not going to make that statement 12 CSB REPORTING WEEKS (X) Wilder, Idaho 83676 Public 1 because I wouldn't say $20.00 when you're going to offer 2 six or five and in the paper what did it say, something 3 about $3.00 that some people were getting into Wayan and 4 into Soda Springs and some of those places, so why 5 shouldn't we get this same rate as other people are 6 getting? 7 I don't think we should be hit with a big 8 price to get to, what, 30 miles to Idaho Falls or to 9 Ririe or even 50, 45 miles into Idaho Falls, so I don't 10 think our price should be really high for it. I think a 11 few dollars, everybody would be willing to pay a few 12 dollars extra. 13 MR. HOWELL: All right. 14 COMMISSIONER HANSEN: Thank you. 15 Commissioner Nelson had a question for 16 you. 17 18 EXAMINATION 19 20 BY COMMISSIONER NELSON: 21 Q Do you use an alternate long distance 22 carrier for your calls into Idaho Falls and around 23 eastern Idaho? 24 A We use AT&T. 25 COMMISSIONER NELSON: Okay, thank you. 13 CSB REPORTING WEEKS (Com) Wilder, Idaho 83676 Public 1 COMMISSIONER HANSEN: Thank you very much. 2 (The witness left the stand.) 3 COMMISSIONER HANSEN: The next person we 4 have is Bernell Clark. 5 6 BERNELL CLARK, 7 appearing as a public witness, having been first duly 8 sworn, testified as follows: 9 10 EXAMINATION 11 12 BY MR. HOWELL: 13 Q Mr. Clark, could you give us your full name 14 and spell your last name for the record? 15 A Bernell Clark, C-l-a-r-k. 16 Q And how do you spell your first name? 17 A B-e-r-n-e-l-l. 18 Q Thank you, sir, and could we have your 19 address, please? 20 A I live in Idaho Falls, 1375 East 49th 21 North, Idaho Falls, Idaho. 22 Q So you are a U S WEST local exchange 23 customer? 24 A Yes, I am. 25 Q And do you have a statement you'd like to 14 CSB REPORTING CLARK Wilder, Idaho 83676 Public 1 give? 2 A Yes. We have property up at the upper end 3 of the valley by Palisades Reservoir. We've been trying 4 to get a telephone system up there for the last four or 5 five years and it sounds like possibly next year we'll 6 get it. They began talking about putting us on the Star 7 Valley exchange and that's not a good deal for us that 8 live there. We go to church, we associate with folks 9 here in the valley and so it's really important to us 10 that we be hooked up on the system down in this area. 11 I've been on the Idaho Falls exchange when 12 it switched and we have a larger calling area now and I 13 run a small business and it has really been an advantage 14 to us as well as, you know, residential calls, the 15 business aspect of it has really been appreciated. Our 16 phone bill didn't go up when this service went into 17 effect. It may in the near future, but it's really been 18 well worth it to us and I think we ought to do everything 19 we can to get this service available in this area. We 20 need it and we need it bad. 21 As far as the costs are concerned, I am 22 more impressed with the prices that Silver Star came up 23 here with than I am with the Utilities Commission, but it 24 would be nice if we could hold it at about $17.00, but I 25 know that it costs money to put these systems in. I 15 CSB REPORTING CLARK Wilder, Idaho 83676 Public 1 don't have anything more to say, but I am really for it 2 and I represent about 15 people up in our area and they 3 are all for this system overwhelmingly. 4 COMMISSIONER HANSEN: Let's see if we have 5 any questions. 6 Questions? I just have one comment. It 7 was the Commission Staff that came up with those numbers, 8 not the Commission. Thank you. 9 THE WITNESS: Sorry. 10 (The witness left the stand.) 11 COMMISSIONER HANSEN: Dennis Bitton. 12 13 DENNIS BITTON, 14 appearing as a public witness, having been first duly 15 sworn, testified as follows: 16 17 EXAMINATION 18 19 BY MR. HOWELL: 20 Q Sir, could you please state your full name 21 and spell your last name for the record? 22 A My name is Dennis Bitton. I better get 23 this thing up here. Can you hear me now? 24 Q I can hear you. How do you spell your last 25 name? 16 CSB REPORTING BITTON Wilder, Idaho 83676 Public 1 A B-i-t-t-o-n. 2 Q And your address? 3 A It's Box 115, Swan Valley, Idaho. 4 Q And you're a Silver Star customer? 5 A I sure am. 6 Q And do you have a statement you'd like to 7 give? 8 A Yes, I do. First of all, might I state 9 that my wife Juanita Bitton, and she asked me to speak 10 for her, too, has been instrumental in getting this, what 11 do you call it, anyway getting it started. She had the 12 petition sent all around the valley and all that and I 13 might say she likes to use the phone. 14 AUDIENCE: Can I have an extra line? 15 THE WITNESS: So naturally, we're totally 16 in favor of this. Now, your Commission also sent her a 17 copy of the plan that was presented to you and we both 18 went through it quite extensively and I saw in there, oh, 19 a couple of different options for prices. The one that 20 was recommended by the lady that did so much work on the 21 plan on the Commission, what's her name? 22 AUDIENCE: Carolee. 23 THE WITNESS: Out of those plans, it looked 24 to me like the one that recommended a cost of maybe $6.00 25 extra over what we're paying now would be the best one 17 CSB REPORTING BITTON Wilder, Idaho 83676 Public 1 simply because we were guaranteed of not having raises in 2 the near future and that sort of thing, so I'd be totally 3 in favor of anything that went up to that figure and the 4 extra cost that we would have to pay, because it's going 5 to eliminate, hopefully, so many of our long distance 6 calls, and I just asked the wife how much our long 7 distance bill had been, she says as high as $160 at one 8 time. 9 Well, there was a period back not too long 10 ago when a big part of that cost was payment to U S WEST 11 for in-state calls. That was the biggest bill we'd get. 12 I have a son that lives McCammon, Idaho, and we've got 13 relatives in Idaho Falls, we make a lot of calls to 14 there. Our medical service comes largely from the Driggs 15 area, so we make a lot of calls there and these areas 16 that have been requested are very important areas. 17 I think most of the residents of this 18 valley, I think I can speak for most of the residents of 19 this valley in saying that I'm sure that they would all 20 be up to paying a little extra on their phone bill to get 21 this kind of service. I guess that's all I need to say. 22 COMMISSIONER HANSEN: Let's see if we have 23 any questions. 24 Any questions? I just have one. 25 18 CSB REPORTING BITTON Wilder, Idaho 83676 Public 1 EXAMINATION 2 3 BY COMMISSIONER HANSEN: 4 Q You mentioned your wife likes to use the 5 phone and you never mentioned, do you like to use it or 6 just her? 7 A I have to use it. 8 Q You have to use it. That's normal, isn't 9 it, most of the men have to use the phone. 10 A I have to use it. 11 Q I just had one question. Do you see value 12 to being able to call in the total U S WEST extended 13 area, like down in the Pocatello area and as far as 14 Preston and Bear Lake area, or is the value mainly just 15 to Idaho Falls and Ririe? 16 A No, I want to see the extended area. As I 17 said, my son lives in McCammon and there's where a big 18 part of our phone calls go through, for instance, and I'm 19 sure other people here have similar situations. 20 COMMISSIONER HANSEN: Well, thank you very 21 much for your testimony. 22 THE WITNESS: You bet. 23 (The witness left the stand.) 24 COMMISSIONER HANSEN: Mrs. C. V. Campbell. 25 MS. CAMPBELL: Dennis spoke for me. 19 CSB REPORTING BITTON (Com) Wilder, Idaho 83676 Public 1 COMMISSIONER HANSEN: I'm sorry, but the 2 person that signed in just below Mrs. Campbell signed 3 their name like maybe I sign my checks sometimes and I 4 can't -- and there's not an address, so if I miss you or 5 if you remember of signing in number seven on this sheet, 6 please come forward. I'll ask the Commissioner if he has 7 any idea what that is. 8 COMMISSIONER NELSON: It looks like it 9 could be Ryan. 10 AUDIENCE: I think it's me. 11 COMMISSIONER HANSEN: Okay, would you care 12 to come forth and identify yourself and make a 13 statement? Probably just you and the bank are the only 14 two that know that signature. 15 16 17 18 19 20 21 22 23 24 25 20 CSB REPORTING BITTON (Com) Wilder, Idaho 83676 Public 1 BRIAN CAMPBELL, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 THE WITNESS: I like to sit down and when I 6 signed that, I really didn't know what I was signing. 7 8 EXAMINATION 9 10 BY MR. HOWELL: 11 Q To start things off, sir, why don't we get 12 your full name and you could spell your last. 13 A Brian Campbell, Box 102, Swan Valley. 14 Q And do you have a statement, Mr. Campbell? 15 A The only thing I had some questions on -- 16 COMMISSIONER HANSEN: Mr. Campbell, I 17 should have stated before we started this hearing, the 18 procedure that we follow is a judicial-type procedure and 19 where we have the different parties that register as 20 intervenors in the case, they're the only ones that 21 really can offer live questions at a hearing and so what 22 we need to do is if you have questions or any other 23 members of the public, we will take a break or 24 immediately after the hearing you would be able to ask 25 the parties here those questions and they would, 21 CSB REPORTING CAMPBELL Wilder, Idaho 83676 Public 1 hopefully, be able to answer those for you, but right 2 here in this proceeding is mainly just a statement that 3 you'd be able to make. 4 THE WITNESS: The only statement I want to 5 make is that it looks like a good thing to have and I'm 6 all for it. 7 COMMISSIONER HANSEN: Do we have any 8 questions? 9 Yes, Mr. Howell has a question for you, 10 sir. 11 12 CROSS-EXAMINATION 13 14 BY MR. HOWELL: 15 Q Mr. Campbell, how much would you be willing 16 to pay to get the additional calling area? 17 A That's part of what I didn't understand 18 about all this. 19 Q Would you be willing to pay $5.00 more? 20 A You bet. 21 Q Ten dollars more? 22 A Ten? 23 MR. HOWELL: I'll stop there. 24 (The witness left the stand.) 25 COMMISSIONER HANSEN: Steven D. East. 22 CSB REPORTING CAMPBELL (X) Wilder, Idaho 83676 Public 1 STEVEN EAST, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 EXAMINATION 6 7 BY MR. HOWELL: 8 Q Sir, could you state your full name and 9 spell your last for the record, please? 10 A Steven D. East, E-a-s-t. 11 Q And, Mr. East, can you give us an address, 12 please? 13 A 176 North Irwin Road, Irwin, Idaho. 14 Q And do you have a statement you'd like to 15 make regarding this matter? 16 A Yes, I do, both as a resident and as a 17 teacher at the local school. As a resident, I would like 18 to see this come in because I believe that it would be 19 beneficial on my personal phone bill. As a teacher, I 20 work with technology and I'm responsible for all the 21 technology in the school and currently, without this, we 22 have extremely limited access to the Internet and there 23 is, as everyone knows, a world of information available 24 on the Internet and we have records at the school where 25 they have expended up to $300 a month for long distance 23 CSB REPORTING EAST Wilder, Idaho 83676 Public 1 services for the Internet. We have curtailed that way 2 back, but in so doing, of course, it does limit our 3 access to the Internet and that's pretty much it. 4 COMMISSIONER HANSEN: Do we have any 5 questions? 6 Thank you very much for your testimony. 7 (The witness left the stand.) 8 COMMISSIONER HANSEN: Gary J. Hunter. 9 10 GARY HUNTER, 11 appearing as a public witness, having been first duly 12 sworn, testified as follows: 13 14 THE WITNESS: Gary Hunter, H-u-n-t-e-r, 15 232 Chapel Road, Swan Valley. 16 MR. HOWELL: And do you have a statement, 17 Mr. Hunter? 18 THE WITNESS: Yes. Knowing the bills that 19 we get for long distance with U S WEST and all the calls 20 I have to make to Idaho Falls, primarily Idaho Falls, I 21 know some people would like to make calls to more 22 extended areas, but I noticed that my phone calls having 23 to call the driver's license bureau as a driver ed 24 teacher and beginning January 1st as a driver's license 25 tester, I have to call Idaho Falls all the time. 24 CSB REPORTING HUNTER Wilder, Idaho 83676 Public 1 That means 31 to $.33 a minute with 2 U S WEST. I finally got smart with the help of Silver 3 Star and I now access AT&T at $.15 a minute, so everybody 4 is commenting -- I mean, right now our phone bill 5 probably dropped 10-$15.00 a month by eliminating 6 U S WEST and going with AT&T and accessing their number. 7 How much would I be willing to pay? Well, 8 certainly not more than $.15 a minute because I can pay 9 that with AT&T. How many calls do we make? Well, that 10 probably varies, of course, and I don't know how much 11 it's going to be after the first of year, probably a lot 12 more, but I feel that if we're going to have an extended 13 area, the amount that we pay certainly shouldn't exceed 14 what we can get through our long distance service whether 15 it's $.10 a minute or $.15 a minute, whatever it is, and 16 should be comparable with what the people in Idaho Falls 17 pays. 18 Personally, I don't have any need to call 19 Pocatello or Soda Springs or wherever, mostly Idaho 20 Falls, probably, maybe Driggs and Victor, so that would 21 be a personal thing with me. Thank you. 22 COMMISSIONER HANSEN: Thank you. 23 Do we have any questions? 24 Thank you very much for your testimony. 25 (The witness left the stand.) 25 CSB REPORTING HUNTER Wilder, Idaho 83676 Public 1 COMMISSIONER HANSEN: Jim Osterhout? 2 How about Carol? 3 4 CAROL OSTERHOUT, 5 appearing as a public witness, having been first duly 6 sworn, testified as follows: 7 8 EXAMINATION 9 10 BY MR. HOWELL: 11 Q You know the drill, I need your name and 12 address. 13 A Okay, Carol Osterhout. I live at Post 14 Office Box 130, Irwin. 15 Q Could you spell your last name, please? 16 A O-s-t-e-r-h-o-u-t. 17 Q And do you have a statement? 18 A Yes, I do. I work in Idaho Falls and I 19 also see a lot of billings that come in through 20 businesses and businesses in Idaho Falls and Pocatello 21 are saving between, some of them as much as 4 and $500 a 22 month since this new thing has gone through. Especially 23 the businesses that have toll free 800 numbers, they no 24 longer need them when they're just doing business in 25 southeast Idaho. 26 CSB REPORTING OSTERHOUT Wilder, Idaho 83676 Public 1 I feel that this program should be more 2 towards the residents instead of the businesses and some 3 of your pricing that you're saying is the residential is 4 going to go up $6.00, businesses, what did you say? 5 COMMISSIONER NELSON: About the same. 6 THE WITNESS: Well, that's doesn't seem 7 fair to me. You know, our bill here in Irwin, the 8 cheapest we probably had is $70, the most expensive 9 probably 340 because we both work in Idaho Falls and it 10 just doesn't seem fair to me that a large majority of the 11 money is coming from the residents when in actuality 12 businesses would be saving probably three to four times 13 more than most of the residents here. 14 Anybody in this valley, every call they 15 make is long distance. For my work I do a lot of 16 collection calls and I either have the choice of driving 17 into town on Saturdays to do those or every call I make 18 in this whole entire area is long distance just to 19 complete work that I cannot do from 8:00 to 5:00 on my 20 job and I don't think that is fair, and I just think that 21 each individual rural area should be able to call a 22 larger city to be able to call the doctors, schools or 23 even to order flowers. Anything you do in this area has 24 to be long distance and I just feel that, I think the 25 whole program should be geared more towards residential 27 CSB REPORTING OSTERHOUT Wilder, Idaho 83676 Public 1 than business and that's all. 2 COMMISSIONER HANSEN: Thank you. 3 Do we have any questions? 4 Commissioner Nelson. 5 6 EXAMINATION 7 8 BY COMMISSIONER NELSON: 9 Q Who do you use for your long distance 10 carrier for calls around eastern Idaho? 11 A We were using U S WEST. We have a daughter 12 in Idaho Falls and we have a son in Phoenix and our calls 13 to our daughter in Idaho Falls were twice as much as they 14 were to Phoenix, so we are now also using AT&T. 15 COMMISSIONER NELSON: Thank you. 16 COMMISSIONER HANSEN: Thank you for your 17 testimony. 18 (The witness left the stand.) 19 COMMISSIONER HANSEN: H. W. Bitton. 20 21 22 23 24 25 28 CSB REPORTING OSTERHOUT (Com) Wilder, Idaho 83676 Public 1 H. W. BITTON, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 EXAMINATION 6 7 BY MR. HOWELL: 8 Q I need your name and address, sir. 9 A My name is H. W. Bitton, B-i-t-t-o-n. My 10 brother spoke just a while ahead of me, so I guess we've 11 got a reputation. 12 Q And your address? 13 A Box 114, Swan Valley, Idaho. 14 Q And do you have a statement, sir? 15 A Yes. I'm very much in favor of this 16 extended coverage. Our bills for long distance run 17 anywhere from -- well, I've got to go back a ways when we 18 were on U S WEST and we've run the gamut. We've been 19 through a lot of them. At the present time we are on 20 MCI. At the present time our bill is running anywhere 21 from 25-$40.00. 22 My wife loves the telephone, like a lot of 23 others and that's a good deal and it keeps her in good 24 nature and so she has relatives in Star Valley and she 25 has relatives in Idaho Falls/Rigby area. I don't call 29 CSB REPORTING BITTON Wilder, Idaho 83676 Public 1 near as much as she does, but I do call occasionally and 2 it's essential when I do. 3 I'm very much in favor of this extended 4 coverage and anything that would be less than our long 5 distance bill would be an advantage, let's put it that 6 way and it looks to me like it would be a big advantage. 7 I believe that's all I have to say. 8 COMMISSIONER HANSEN: Do we have any 9 questions? 10 Thank you very much for your testimony. 11 (The witness left the stand.) 12 COMMISSIONER HANSEN: Leah Bitton? 13 MR. BITTON: That's my better half. 14 COMMISSIONER HANSEN: Does she wish to 15 testify? 16 MR. BITTON: Do you want to testify? 17 AUDIENCE: She said she'd write you a 18 letter. 19 COMMISSIONER HANSEN: This would be your 20 chance to tell us how much your husband uses the 21 telephone. 22 Okay, Jerry Pope. 23 24 25 30 CSB REPORTING BITTON Wilder, Idaho 83676 Public 1 JERRY POPE, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 THE WITNESS: Jerry Pope, P-o-p-e, 6 P.O. Box 122, Irwin. First, I'd like to apologize for 7 being a couple of minutes late, so some things might have 8 been covered that I was omitted from seeing and that's my 9 fault, but it's too bad that a percentage of the people 10 that were in this room today weren't in the meeting a 11 week-and-a-half ago up to the school that Silver Star 12 held. Perhaps they would have been a little more 13 enlightened, so to go from there, there were only three 14 showed up to that. 15 Some of the things that Silver Star 16 represented that I understood was that the cost increase 17 would only be $2.51. That's a reasonable figure. Some 18 of the information that -- I spoke in the back of the 19 room with one of the fellows and he said that they talked 20 about $6.00, I don't know who came up with that, to 21 $10.00. One of the things that they did say is the 22 service could go into effect as close as this July. 23 With the technology that's available today, 24 there should be no reason that people couldn't make an 25 option as to whether they wanted to be in the Pocatello 31 CSB REPORTING POPE Wilder, Idaho 83676 Public 1 region and/or the Idaho Falls/Driggs region and pay a 2 bill according to that, such as the $2.51 they 3 explained. The reason they said it was $2.51 had 4 something to do with a subsidy from, I'm not sure if it's 5 an Idaho fund, Idaho user's fund I think it was, 6 something like that, and it had an effect for all 7 residents and businesses. Like I said, it's just too bad 8 that people weren't more informed. We come to these 9 meetings blind. 10 They represented also that there were going 11 to be a lot of other services available in the near 12 future and one of the concerns that I asked about was 13 what was spoke about earlier, also, was most of the 14 people now are having computers and would have to tie a 15 main line up to do anything and then they're not 16 available to do things. 17 They're saying that every new home is going 18 to have six lines coming in so they can have security 19 systems, alarm systems, Internet access, two phone lines 20 and all these things cost money of which they're planning 21 to spend. They've spent it in the past. I have no 22 problem with Silver Star as our carrier. Every so often 23 they decide to raise our bill. About 10, 12 years ago, 24 they raised our bill double, but it took us about a 25 year-and-a-half we got our money back, so I think that 32 CSB REPORTING POPE Wilder, Idaho 83676 Public 1 these kind of meetings are the thing that control the 2 rates that they get, but I'm surely disappointed that 3 we're not more informed and that's about all I have to 4 say. 5 COMMISSIONER HANSEN: Thank you. 6 Do we have any questions? 7 Okay, thank you very much for your 8 testimony. 9 (The witness left the stand.) 10 COMMISSIONER HANSEN: We'll now call on 11 Brit Ross. 12 13 BRIT ROSS, 14 appearing as a public witness, having been first duly 15 sworn, testified as follows: 16 17 THE WITNESS: My name is Brit Ross, 18 R-o-s-s. I live at 2400 Olderman Road. I think, like 19 everybody else, I'm in favor of extending it. I'm a 20 rancher. If you need a part, you need anything, it's -- 21 I do a lot calling as far as Pocatello for haying parts, 22 machinery parts, brand inspectors, cow trucks. 23 I'm with MCI right now. My bill averages, 24 I'd say, probably close to 80 bucks a month because I do 25 almost all my business, just like everybody else, out of 33 CSB REPORTING ROSS Wilder, Idaho 83676 Public 1 town or out of this town, but that's about all I have to 2 say. I think everybody will benefit from it. 3 COMMISSIONER HANSEN: Okay, do we have any 4 questions? 5 Yes, Mr. Howell. 6 MR. HOWELL: Sir, what city is your mailing 7 address? 8 THE WITNESS: Irwin, Idaho. 9 MR. HOWELL: Thank you. 10 COMMISSIONER HANSEN: Thank you for your 11 testimony. 12 (The witness left the stand.) 13 COMMISSIONER HANSEN: Wayne Christiansen. 14 15 WAYNE CHRISTIANSEN, 16 appearing as a public witness, having been first duly 17 sworn, testified as follows: 18 19 THE WITNESS: My name is Wayne 20 Christiansen, C-h-r-i-s-t-i-a-n-s-e-n. I live at 21 3471 Swan Valley Highway and a statement I'd like to make 22 today is that Silver Star has come a long ways. I can 23 remember when I first got my first phone, Mr. Hoopes come 24 down and helped wire it in himself because they had to 25 help out at the time. I think this valley has grown a 34 CSB REPORTING CHRISTIANSEN Wilder, Idaho 83676 Public 1 long ways and I think to keep up with the outside world 2 we're going to have to go to these types of phone 3 systems. 4 As far as computer lines and these things, 5 I think in the near future people is going to be taking a 6 lot of home courses through their computers and different 7 things and I think we need to access the -- have the 8 phone service into this valley. I know over the past 9 that a lot of people that moved into the valley have done 10 work as far away as Salt Lake. They come in and do their 11 job from here through computers and different things that 12 they had. In fact, we ended up fixing a telephone line 13 after dark on a Sunday night after they put a phone into 14 a neighboring house and had cut their lines just so he 15 wouldn't have to make a trip back to Salt Lake and I 16 think Irwin is growing up to the point that they really 17 need this and I think most people will support it. Thank 18 you. 19 COMMISSIONER HANSEN: Thank you. 20 Do we have any questions? 21 Thank you very much for your testimony. 22 (The witness left the stand.) 23 COMMISSIONER HANSEN: Lynn Ricks. 24 25 35 CSB REPORTING CHRISTIANSEN Wilder, Idaho 83676 Public 1 LYNN RICKS, 2 appearing as a public witness, having been first duly 3 sworn, testified as follows: 4 5 THE WITNESS: My name is Lynn Ricks, 6 R-i-c-k-s, 147 Gilda Drive, Palisades, Idaho. One of the 7 things neglected to be said today is thanks to Silver 8 Star for the service that they're giving us. Two years 9 ago I built a home. I couldn't have been more happy with 10 the people that your company sent down, extremely 11 professional. 12 Another thing I'd like to suggest is let's 13 not discourage the community from putting in small 14 businesses or large businesses, businesses of any kind. 15 Let's not penalize them for wanting growth and to 16 participate in our valley. 17 Another thing that we might want to 18 consider, again the computers, that is, that has become 19 as important as a kitchen sink. Most of our businesses 20 today, how large, how small doesn't make any difference, 21 are going to computers, and another thing, something we 22 should address is the income of the community. I was at 23 the school the other day and I saw a piece of paper 24 showing the income in this valley. This valley does not 25 compete with Idaho Falls or Pocatello as far as income 36 CSB REPORTING RICKS Wilder, Idaho 83676 Public 1 goes, so let's not consider penalizing this valley for 2 our long distance services just because we want to get 3 in. We need -- the people up here need a break as well. 4 They didn't come here -- I believe the high 5 was around 26,9 and the low was around 19,000. That's 6 not the same as Idaho Falls, Pocatello, it would be 7 considerably less, and that's all -- oh, do you want to 8 know my carrier? It's Excel. I get $.10 a minute and, 9 yes, we still spend a lot of money on our telephone 10 bills. 11 Another thing I'd like to say is all of our 12 business is done out of this valley. Everybody up here 13 is saying the same thing. We don't have anything up here 14 to draw from. If you want lumber, if you want a plumbing 15 part, if you have an emergency of any kind, we call out 16 of this valley and we need some help, certainly, and I'm 17 in favor of this program 1,000 percent and now I'm 18 finished. 19 COMMISSIONER HANSEN: Thank you. 20 Do we have any questions? 21 Thank you very much for your testimony. 22 (The witness left the stand.) 23 COMMISSIONER HANSEN: Toni Philbrick. 24 This concludes those that have signed up. 25 Do we have someone -- 37 CSB REPORTING RICKS Wilder, Idaho 83676 Public 1 AUDIENCE: I had signed up over here and 2 you didn't call me. 3 COMMISSIONER HANSEN: Why don't you come on 4 up. If you'd like to just come up, ma'am, and we'll just 5 swear you in and get your name. 6 7 JOANNE CROMWELL, 8 appearing as a public witness, having been first duly 9 sworn, testified as follows: 10 11 THE WITNESS: My name is Joanne Cromwell, 12 C-r-o-m-w-e-l-l, and I was asked by several people to let 13 you know that there would be more in the crowd today 14 except for the funeral that's going on today and that the 15 people who asked me also wanted me to let you know that 16 they was for the extended service. 17 Okay, my address is Box 65, Irwin, Idaho. 18 I belong to one lifetime membership of Bonneville 19 Historical Society and I also belong to Timeless Treasure 20 Club of Idaho Falls. We have memberships from McCammon 21 through Rexburg. We also have -- all of our members are 22 changed periodically for offices. We need to be ahold of 23 these officers and access to our membership, so we 24 definitely could use the extended area all the way from 25 McCammon as we do have one member in McCammon. 38 CSB REPORTING CROMWELL Wilder, Idaho 83676 Public 1 I generally end up with telephone calls on 2 U S WEST and AT&T both. I average around $80.00 a month, 3 sometimes as high as 200, depending on how many calls and 4 what it is that I'm taking care of. I would just like to 5 say that I think that the service has been very good 6 lately. Early on we had a lot of problems, but I think 7 they've been fairly well ironed out, and also I'd like to 8 say that I know of quite a few people here that their 9 income is on a fixed income and there are quite a few 10 that are under 19,000, including myself; therefore, I 11 would like to see that the prices be held down for those 12 people on fixed incomes that are retired and have other 13 reasons; so that's the end of my comments. 14 COMMISSIONER HANSEN: Thank you. 15 Do we have any questions? 16 Thank you very much for your testimony. 17 (The witness left the stand.) 18 COMMISSIONER HANSEN: I kind of get an idea 19 from all of you in attendance today, I'm going to ask all 20 those that would be, would like to see expanded local 21 calling service, would you please stand up so we can just 22 get an idea? 23 I can't see anyone sitting down. Okay, 24 what I'm going to ask you, those that would be willing to 25 pay $2.50 a month for this, would you remain standing? 39 CSB REPORTING CROMWELL Wilder, Idaho 83676 Public 1 Those that would be willing to pay $5.50 a 2 month, please remain standing. 3 Those that would be willing to paying 4 $8.00, please remain standing. 5 Just to kind of get an idea, those that 6 would be willing to pay $10.00 extra a month, please 7 remain standing. 8 I'm just trying to get, this doesn't have a 9 lot to do with the case, an idea of the support from all 10 of you here at the different rates. 11 This concludes all those that have signed 12 up to give testimony here today. Is there anyone that 13 did not sign up that would like to come forward and make 14 a statement? Yes, ma'am, if you would like to come 15 forward. 16 17 JULIE HAAS, 18 appearing as a public witness, having been first duly 19 sworn, testified as follows: 20 21 THE WITNESS: My name is Julie Haas. My 22 address is Post Office Box 123, Irwin, Idaho. The last 23 name is spelled H-a-a-s. 24 MR. HOWELL: And do you have a statement? 25 THE WITNESS: Yes, I do, I have a statement 40 CSB REPORTING HAAS Wilder, Idaho 83676 Public 1 to make. One subject that hasn't been brought up that I 2 was kind of hoping would be, this is a community that 3 mainly caters to the senior citizens; however, there are 4 families moving in here daily and the families sometimes 5 are bringing in children with them. I have a teenage 6 daughter at home. She did have to go to school in Idaho 7 Falls, as most of our students here that are in the 8 teenage group need to be transported to Ririe or Idaho 9 Falls. For them to keep a social life, every call that 10 they make is long distance. They don't receive calls 11 from Idaho Falls students because they have to pay a long 12 distance phone call, so our young people are being 13 penalized for living out here because of the 14 inaccessibility by phone and their social life suffers 15 from this. 16 My daughter has her own phone, because if 17 she didn't, we'd never get to use ours, and she does pay 18 her own phone. She does make long distance calls to 19 Idaho Falls to her friends and this is costly to her, but 20 she is managing. We do keep a monitor on it and this is 21 a good reason for us personally to encourage the extended 22 calling area. 23 Also, we also, my husband and I, have 24 in-home businesses, a shuttle service and a tow service. 25 We also are having to pay the phone, business phone fee 41 CSB REPORTING HAAS Wilder, Idaho 83676 Public 1 for having our in-home business; however, when it comes 2 to tax time, we can't deduct our room in our house for 3 tax purposes, but yet, we have to pay the extra fee for 4 the business phone. 5 We don't qualify for the savings on AT&T 6 for the $.10, $.15 a minute because we are business and 7 they don't give us that privilege, so we have to pay the 8 regular fee a month and a business monthly bill. We make 9 a lot of long distance phone calls. We have had to 10 resort to going to a cell phone. We carry a cell phone 11 and make all of our long distance phone calls to Idaho 12 Falls through our cell phone because it saves us the 13 U S WEST phone bill which is our Idaho Falls carrier and 14 we do have the long distance out of state AT&T. 15 I am encouraging, as I said before, the use 16 of the extended calling area. I kind of feel the 17 question that you asked, sir, as to what the crowd here 18 would go to pay for the added service is, actually to me 19 it's wrong, because it sounds like maybe you're going to 20 base your fee on what the consensus was here instead of 21 what is possibly favorable to the people to use this 22 service and I believe that's my statement. 23 COMMISSIONER HANSEN: Okay, thank you. 24 Let's see if we have any questions. 25 Yes, Mr. Howell. 42 CSB REPORTING HAAS Wilder, Idaho 83676 Public 1 CROSS-EXAMINATION 2 3 BY MR. HOWELL: 4 Q Mrs. Haas, what is your monthly in-state 5 toll charges for your phone? 6 A We don't use U S WEST any more. We use our 7 cell phone and we have a flat fee for 24.95 for 85 8 minutes on our cell phone. 9 Q Do you know what your daughter's toll bill 10 is? 11 A She has tried several avenues. She's tried 12 credit cards that you buy for $10.00 for so many minutes 13 and they didn't come out too reasonable. We've 14 discouraged that end of it. Since she pays her own bill, 15 I really can't say for sure. 16 Andrea, do you know what your phone bill is 17 for long distance calls to Idaho Falls area and Ririe? 18 She does keep a curve on it, so she's had to pay about 19 $17.00 a month more, is that about right, on top of her 20 basic phone bill which is the basic monthly. She's not 21 on a business line, so, like I said, she takes care of 22 her own phone bill. 23 MR. HOWELL: Okay, thank you. 24 COMMISSIONER HANSEN: And thank you for 25 your testimony. 43 CSB REPORTING HAAS (X) Wilder, Idaho 83676 Public 1 Do we have anyone else who did not sign 2 up? Yes, sir, please come forward. 3 4 HART LEDBETTER, 5 appearing as a public witness, having been first duly 6 sworn, testified as follows: 7 8 THE WITNESS: My name is Hart Ledbetter, 9 H-a-r-t L-e-d-b-e-t-t-e-r, 140 Wadsworth Drive, 10 Palisades, Idaho. There has been some controversy of the 11 distance for this range of service. A lot of people here 12 would not call beyond Blackfoot, for instance. Most of 13 them would be Idaho Falls, Ririe, Rigby, Rexburg. I 14 think a lot of people will be paying unnecessary monthly 15 expense to extend all rates as far as Pocatello, for 16 instance. A lot of people here will not call Pocatello 17 that much. It seems to me it would be economical for it 18 to be contained within the local long distance calling 19 area. That's all I have to say. Thank you. 20 COMMISSIONER HANSEN: Do we have any 21 questions? 22 Thank you for your testimony. 23 (The witness left the stand.) 24 COMMISSIONER HANSEN: Do we have anyone 25 else that would like to make a statement that did not 44 CSB REPORTING LEDBETTER Wilder, Idaho 83676 Public 1 sign up? 2 Okay, this then brings us to an end of our 3 hearing today and brings us to the end of the hearing of 4 this case. The Commission will deliberate on this and in 5 the near future a decision will be forthcoming from the 6 Commission. 7 We thank you all for your attendance 8 here today and those that would like to make a written 9 statement, be sure and either leave it here with us, the 10 Staff or you can mail it into the Public Utilities 11 Commission, and with that, this hearing will be 12 adjourned. 13 (The Hearing adjourned at 11:00 a.m.) 14 15 16 17 18 19 20 21 22 23 24 25 45 CSB REPORTING COLLOQUY Wilder, Idaho 83676 1 AUTHENTICATION 2 3 4 This is to certify that the foregoing 5 proceedings held in the matter of the petition from 6 residents of Swan Valley, Irwin and Palisades requesting 7 extended area service (EAS) to all of Bonneville County, 8 and the towns of Ririe, Victor and Driggs, commencing at 9 10:00 a.m., on Wednesday, November 19, 1997, at the Swan 10 Valley American Legion Hall, Swan Valley, Idaho, is a 11 true and correct transcript of said proceedings and the 12 original thereof for the file of the Commission. 13 14 15 16 CONSTANCE S. BUCY 17 Certified Shorthand Reporter #187 18 19 20 21 22 23 24 25 46 CSB REPORTING AUTHENTICATION Wilder, Idaho 83676