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1 DRIGGS, IDAHO, TUESDAY, MAY 5, 1998, 7:10 P.M.
2
3
4 COMMISSIONER HANSEN: Good evening, ladies
5 and gentlemen. Can you hear me?
6 AUDIENCE: Not very well.
7 COMMISSIONER HANSEN: Good evening, ladies
8 and gentlemen. Can you hear me?
9 AUDIENCE: Yes.
10 COMMISSIONER HANSEN: Okay, this public
11 hearing will now be in order. This is the time and place
12 set by the Idaho Public Utilities Commission for a public
13 hearing in Case No. GNR-T-97-8, known as in the matter of
14 the petition from residents of Teton County requesting
15 extended area service (EAS) to the greater Idaho Falls
16 area.
17 I'm Commissioner Dennis Hansen and I'll be
18 Chairman of tonight's hearing. At my right is
19 Commissioner Marsha Smith and Commissioner Ralph Nelson
20 is the third Commissioner and he is excused this
21 evening. The three of us make up the entire Commission
22 and we will be the ones that will be deciding this case.
23 The purpose of tonight's hearing is to take
24 public testimony regarding customers' willingness to pay
25 the rates proposed for EAS. Now, we were here a few
1
CSB REPORTING COLLOQUY
Wilder, Idaho 83676
1 months ago, and I know it was a few months ago because it
2 snowed that night, but we got testimony and at that time
3 the Commission was convinced that it was mostly unanimous
4 that the people of this area wanted expanded area
5 calling.
6 At that hearing we did not know for sure
7 what that rate would be. We asked you at that time if
8 you'd be willing to pay 5 or, I believe, even up to
9 $10.00 extra to have the expanded area calling. After
10 that hearing, the Staff and the other parties involved
11 negotiated a price settlement which they felt was fair to
12 the Company as well as to the customers to cover the cost
13 of expanding the calling area.
14 At that time they presented this to the
15 Commission and the rate they had arrived at was $24.10
16 for a residential rate, business rate at $42.00 and
17 measured service for 90 minutes at $16.00 plus $.03 a
18 minute additional after the 90 minutes. The Commission
19 deliberated on that and unanimously accepted that
20 proposal, so here tonight we are not here to discuss
21 whether that rate is fair or whether it should be higher
22 or should be lower. The Commission has accepted that
23 proposal and what we're here tonight is to find out
24 whether you people want to accept extended area calling
25 at those rates or whether you would prefer not to.
2
CSB REPORTING COLLOQUY
Wilder, Idaho 83676
1 We will not accept testimony addressing new
2 issues this evening or additional evidence regarding the
3 issues that the Commission has already deliberated on, so
4 here tonight we're here for one reason and that is to
5 find out whether the people of Teton County want to
6 expand the local calling area at those rates that have
7 been approved by the Commission; so, first of all, before
8 we start tonight receiving public testimony and hearing
9 from you people, we would like to take the appearances of
10 the parties that are here this evening.
11 We will start with you, Mr. McClure.
12 MR. McCLURE: Yes, Mr. Commissioner, my
13 name is Ken McClure with the law firm of Givens, Pursley
14 appearing on behalf of Teton Telecom. With me this
15 evening is Mr. Allen Hoopes and Mr. Ron McCue of Teton
16 Telecom.
17 COMMISSIONER HANSEN: Thank you.
18 MR. RICHARDSON: I'm Renee Richardson with
19 U S WEST.
20 COMMISSIONER HANSEN: Okay, and
21 Mr. Gallagher.
22 MR. GALLAGHER: My name is Patrick
23 Gallagher and I represent the Coalition for Fair Utility
24 Rates or COFFURs.
25 COMMISSIONER HANSEN: And we have
3
CSB REPORTING COLLOQUY
Wilder, Idaho 83676
1 Mr. Howell with the Staff.
2 MR. HOWELL: I'm Don Howell, Deputy
3 Attorney General, if I can get my mike to work. I'm
4 representing the Commission Staff tonight.
5 COMMISSIONER HANSEN: Thank you. Before we
6 start taking the public testimony this evening, I will
7 ask each party or allow each party to make a brief
8 statement and then after each party has been given an
9 opportunity to take a couple or three minutes and make an
10 introductory statement if they so desire, then we will
11 start down the list of those that have signed up, and
12 what we will do is ask you to come forward when we call
13 your name.
14 You'll come forward and Commissioner Smith
15 will ask you to raise your right arm and she'll have you
16 take an oath that you'll tell the truth and then our
17 Deputy Attorney General, Mr. Howell, will ask you your
18 name and to spell your last name so we have it correctly
19 on the record and then you'll be able to make your
20 statement.
21 After you've made your statement, there may
22 be one of the parties or the Commissioners that would
23 want to ask you a question and so we will ask if there's
24 any questions for you and most likely there probably will
25 not be and it's my job if they ask you too tough a
4
CSB REPORTING COLLOQUY
Wilder, Idaho 83676
1 question and you don't want to answer it, then I'll be on
2 your side and help you out, so anyway, we will get
3 started and first we'll ask Mr. Hoopes if he'd like to
4 come forward. He has already been sworn in earlier at
5 one of our hearings and so we will ask him to go ahead
6 and make his public statement.
7
8 ALLEN HOOPES,
9 produced as a witness at the instance of Teton Telecom,
10 having been previously duly sworn, resumed the stand and
11 was further examined and testified as follows:
12
13 THE WITNESS: My name is Allen Hoopes. I'm
14 president of Teton Telecom and I wanted to make a
15 statement on behalf of Teton Telecom. Many of you in the
16 audience already have a copy of this statement. I'm
17 going to read it. Although the Idaho Public Utilities
18 Commission's investigation concerning extended area
19 service for Teton Telecom's Driggs exchange was a
20 customer-initiated proceeding, Teton Telecom also
21 supports EAS.
22 EAS would allow Teton Valley residents to
23 merge with a larger community of interest that already
24 has been included within an eastern Idaho local calling
25 area. EAS requires some increase in the basic rate for
5
CSB REPORTING HOOPES
Wilder, Idaho 83676 Teton Telecom
1 customers because it imposes different costs on telephone
2 providers at the same time that it eliminates toll
3 revenues; however, Teton Telecom recognizes that given
4 the current increases in the statewide average for local
5 rates, Idaho's rural residents would experience increased
6 rates regardless of the availability of EAS simply to
7 allow rural telephone providers to continue to meet their
8 costs of service.
9 If EAS is granted to the Driggs exchange
10 now, it would allow this feature to be added to the
11 package of basic service that Teton Telecom's customers
12 receive as basic rates inevitably are adjusted in
13 response to the statewide average. Moreover, Teton
14 Telecom believes that the proposed rates of $24.10 for
15 residential and $42.00 for business represent a
16 reasonable and close approximation of the cost of
17 providing EAS to a calling area that includes more than
18 100,000 additional lines.
19 Teton Telecom's experience with calling
20 patterns and volumes has led it to conclude that without
21 EAS, Driggs exchange customers likely will find
22 themselves increasingly isolated in their communications
23 with other residents and the businesses of eastern
24 Idaho. This can only become a greater issue as
25 customers' telecommunications needs, options and usage
6
CSB REPORTING HOOPES
Wilder, Idaho 83676 Teton Telecom
1 increase. As a member of the Teton Valley's business
2 community, Teton Telecom believes that EAS and the
3 expanded community access it provides is necessary to
4 sustain and develop the local business environment.
5 The proposed rates for EAS include an
6 option for those residential customers who do not use
7 their phones extensively. The measured service rate
8 which is $16.00 per month would include up to 90 minutes
9 of toll free calling to the Teton Valley and to the
10 eastern Idaho local calling area. Teton Telecom believes
11 that this option shelters those persons who rarely would
12 make use of EAS's added value from any significant
13 increase in monthly rates attributable to providing
14 unlimited local calling to those who would use it
15 extensively.
16 Also, the low income credit of up to $10.50
17 per month for eligible customers will provide rate
18 assistance to mitigate potential impacts on those
19 customers who would most be affected by the cost of EAS.
20 This is our statement.
21 COMMISSIONER HANSEN: Thank you.
22 Do we have any questions for Mr. Hoopes?
23 Mr. Gallagher, do you have any questions?
24 MR. GALLAGHER: Yes.
25
7
CSB REPORTING HOOPES
Wilder, Idaho 83676 Teton Telecom
1 CROSS-EXAMINATION
2
3 BY MR. GALLAGHER:
4 Q How is this working? A little closer?
5 Mr. Hoopes, could I ask you, what I understand of
6 eligible customers, the low income credit up to $10.50
7 for eligible customers, as I understand it, you actually
8 have to be on welfare to be an eligible customer; is that
9 correct?
10 A There is a certain classification by Idaho
11 Welfare Services, yes. You must be on that list in order
12 to qualify for that credit. It involves, I believe,
13 power and other different utility assistance levels.
14 COMMISSIONER SMITH: You have to income
15 qualify.
16 THE WITNESS: It's based on income?
17 COMMISSIONER SMITH: You don't have to be
18 on welfare.
19 THE WITNESS: I stand corrected on that.
20 Q BY MR. GALLAGHER: Again, please?
21 A It's based on income levels, not
22 necessarily on welfare.
23 Q And do you know off the top of your head
24 what income is involved to be eligible for the
25 assistance?
8
CSB REPORTING HOOPES (X)
Wilder, Idaho 83676 Teton Telecom
1 A I do not off the top of my head.
2 Q Yeah, I'm going to try to be brief, which
3 is just the most difficult thing for me in the world, you
4 list here that this can only become a greater issue as
5 customers' telecommunications needs, options and usage
6 increases. I actually see this EAS as a lessening of
7 options. I have difficulty, you know, you're saying that
8 with more options, you're going to be giving more options
9 in the future, but, boy, I sure see this as having fewer
10 options. I mean, our two options are the --
11 COMMISSIONER HANSEN: Mr. Gallagher, you
12 need to be asking questions, not making a statement.
13 MR. GALLAGHER: Oh, thank you, sorry.
14 COMMISSIONER HANSEN: Do you have any other
15 questions?
16 MR. GALLAGHER: No, I'll leave the rest for
17 a statement. Thank you, sir.
18 COMMISSIONER HANSEN: Mr. Howell.
19 MR. HOWELL: No questions.
20 COMMISSIONER HANSEN: Commissioner Smith.
21 COMMISSIONER SMITH: No.
22 COMMISSIONER HANSEN: Mr. Hoopes, I have a
23 couple of questions.
24
25
9
CSB REPORTING HOOPES (X)
Wilder, Idaho 83676 Teton Telecom
1 EXAMINATION
2
3 BY COMMISSIONER HANSEN:
4 Q I believe you stated in your opening
5 testimony about the rates and the possibility of those
6 going up. How long is the rate freeze on right now?
7 When you purchased this franchised area from U S WEST, it
8 was three years. Are you familiar with when that date
9 ends?
10 A Yes, I believe it's March of 1999 because
11 the Commission ordered that, basically the sale case was
12 ordered in March of 1996, so we believe that the rate
13 freeze would end in March of 1999.
14 Q In March of 1999, do you see from your
15 Company's view that you would, would you be considering
16 this a high-cost area or would you think you would be
17 able to keep the rates at what they are now?
18 A It's definitely a high-cost area and we're
19 spending this year spending approximately a million
20 dollars in our network here in Driggs which would
21 continue to, you know, affect our costs, but I definitely
22 see the rates as going up as they are across the state
23 and across all of the western states. Rural rates are
24 going up and even urban rates are going up to the
25 residential customers.
10
CSB REPORTING HOOPES (Com)
Wilder, Idaho 83676 Teton Telecom
1 Q In many of the rural areas the phone
2 companies have to rely on Universal Service Funding,
3 which is Idaho Universal Service Funding money, in order
4 to keep the rates down. Do you see this area that you
5 would need to participate in the Idaho Universal Service
6 Fund to keep the rates down here or would you not?
7 A I would see that we would have to
8 participate in the Idaho Universal Service Fund, which
9 requires a 1.25 times the statewide average rate in order
10 to qualify for that assistance, which at this point with,
11 I believe, the statewide average is right around 17.51,
12 somewhere in that area, and the 24.10 rate is
13 approximately about that 125, 1.25, times the statewide
14 average. As those average rates go up, I would see that
15 going up, but rates are definitely going to continue to
16 go up.
17 Q So that I understand correctly, are you
18 saying, then, after the rate freeze that you anticipate
19 the need to bring this area under Universal Service
20 Funding which would be 125 percent of the statewide
21 average rate?
22 A That's correct.
23 Q And you're estimating that that would
24 probably be around $20.00 or so a month just for regular
25 service?
11
CSB REPORTING HOOPES (Com)
Wilder, Idaho 83676 Teton Telecom
1 A Correct, and as I indicated, as that
2 statewide average rate goes up, it would even escalate to
3 a higher level.
4 COMMISSIONER HANSEN: I see. Okay, that's
5 all the questions I have. Thank you.
6 MR. HOOPES: Thank you.
7 (The witness left the stand.)
8 COMMISSIONER HANSEN: U S WEST, would you
9 care to make a statement?
10 MS. RICHARDSON: No, we don't have a
11 prepared opening.
12 COMMISSIONER HANSEN: Mr. Gallagher, would
13 you like to make a statement?
14 MR. GALLAGHER: Actually, I would like to
15 speak as the first speaker, so at this moment, no, thank
16 you.
17 COMMISSIONER HANSEN: Mr. Howell, for the
18 Staff.
19 MR. HOWELL: The Staff would call Carolee
20 Hall.
21 COMMISSIONER SMITH: I believe you're still
22 under oath.
23
24
25
12
CSB REPORTING HOOPES (Com)
Wilder, Idaho 83676 Teton Telecom
1 CAROLEE HALL,
2 produced as a witness at the instance of the Staff,
3 having been previously duly sworn, resumed the stand and
4 was further examined and testified as follows:
5
6 DIRECT EXAMINATION
7
8 BY MR. HOWELL:
9 Q Ms. Hall, could you present the Staff's
10 statement?
11 A Yes. At the November hearing, many
12 testified that their phone bills were running between 70
13 and $100 per month and strongly encouraged the Commission
14 to grant EAS. On February 9th, Teton and Staff filed a
15 stipulation and settlement with the Commission. The
16 stipulation proposed monthly basic rates for residential
17 customers of 24.10 and $42.00. These rates represented a
18 significant increase from the rates proposed at the
19 November hearing.
20 The increase in basic rates was necessary
21 based on new information presented to Staff during the
22 negotiations that preceded the February 9th stipulation
23 and settlement agreement. The sale of Teton's Colorado
24 properties and the purchase of the Driggs exchange
25 created a shift in the way the Company's expenses are
13
CSB REPORTING HALL (Di)
Wilder, Idaho 83676 Staff
1 allocated. With the shift in expenses, it was necessary
2 for Staff to recalculate the costs associated with this
3 EAS. This is basically the reasons the rates were
4 increased for the Teton Telecom.
5 Staff has discussed the concern of new
6 rates with many of you. One of the concerns that was
7 voiced was that lower fixed income people probably would
8 not afford the new rates. At the time of the November
9 hearing, changes to the Idaho Telecommunications
10 Assistance Program, ITAP, had not been enacted by
11 legislature. When fully implemented approximately July
12 of '98, the ITAP program will provide a credit of $10.50
13 per month to eligible low income residential customers
14 and will be available by the time EAS is turned up. The
15 credit will decrease the monthly residential bill to
16 $13.50.
17 Another service that is being offered is
18 called measured service. This is an option that allows
19 residential customers to pay $16.00 per month and receive
20 90 free minutes of calling. Every minute in excess of
21 those 90 minutes will be billed at $.03 cents per
22 minute. At the $.03 per minute rate, a residential
23 customer would be able to talk an additional
24 four-and-a-half hours before they reach the 24.10 monthly
25 flat rate. When you combine the 90 free minutes and the
14
CSB REPORTING HALL (Di)
Wilder, Idaho 83676 Staff
1 additional four-and-a-half hours, the total calling time
2 equates to six hours of calling per month.
3 For those of you who do not use your phone
4 service often, this may be an option to reduce your
5 monthly phone bill. The ITAP program will also apply to
6 eligible measured service customers. Staff believes that
7 over time the implementation of EAS will be beneficial to
8 the majority of Teton Telecom customers.
9 EAS is being implemented around the Teton
10 County. This EAS region is growing into one of the
11 largest regions we currently have in Idaho. The
12 Commission and Staff are looking at many pending cases
13 that surround your county. If EAS is not implemented,
14 Teton County may be the only county without EAS and
15 experience toll calling for every call outside of your
16 immediate community.
17 That's Staff's opinion.
18 COMMISSIONER HANSEN: Thank you. Let's see
19 if we have any questions of Ms. Hall.
20 Any questions? Mr. Gallagher.
21 MR. GALLAGHER: Yeah.
22
23
24
25
15
CSB REPORTING HALL (Di)
Wilder, Idaho 83676 Staff
1 CROSS-EXAMINATION
2
3 BY MR. GALLAGHER:
4 Q Is today the deadline for this EAS? Are
5 there options in the future? This EAS hearing, is it
6 possible to enact an EAS in the future or is this the
7 last and final possibility for this EAS?
8 COMMISSIONER HANSEN: Maybe I can answer
9 that for you. This is the last hearing before the
10 Commission will issue an order. Whether they will grant
11 it or deny it will be dependent upon this hearing
12 tonight. The reason we're back here is we want to make
13 sure that the public supports it or doesn't support it.
14 That will key heavily in our decision. We are not going
15 to take a vote necessarily and see the numbers whether
16 it's a one vote victory or whatever, but we're here to
17 try to determine what the majority of the people here
18 would want.
19 To give you an idea, after the Commission
20 issues an order, if we were to issue an order to either
21 deny or to approve, any one of the public, any person has
22 within 21 days to petition to the Commission for
23 reconsideration and they need to state in that petition
24 why they feel it should be reconsidered, whether they
25 have new evidence that they feel the Commission did not
16
CSB REPORTING HALL (X)
Wilder, Idaho 83676 Staff
1 consider or the reason why.
2 Then the Commission will decide whether or
3 not there's merit to reconsider it and there is the
4 possibility, then, that the Commission could grant
5 reconsideration and based on that, you would have another
6 opportunity to present that particular evidence that the
7 Commission allowed to be reconsidered. The whole case
8 probably wouldn't be reconsidered, only new evidence that
9 would be brought to the Commission's attention that they
10 believed did not receive adequate consideration in the
11 prior hearings.
12 COMMISSIONER SMITH: Mr. Chairman? I
13 guess, Mr. Gallagher, if the question was if EAS is
14 denied after this hearing would there ever be another
15 opportunity for it?
16 MR. GALLAGHER: Yes.
17 COMMISSIONER SMITH: Let me just answer in
18 terms of my experience with a similar, with the
19 Eden/Hazelton case who over a period of 20 years they
20 petitioned, I think, three times and finally they got it
21 on the third time, but I would say that if it was denied
22 here, it won't be considered again for many years, so if
23 you don't get it now, you're looking at five, six years,
24 maybe more before it gets considered again. That would
25 be my guess based on the Commission's case load and the
17
CSB REPORTING HALL (X)
Wilder, Idaho 83676 Staff
1 15 other EAS cases that are ahead of you, that would be
2 ahead of you, if you went to the back of the queue with a
3 new petition.
4 MR. GALLAGHER: I see. Thank you.
5 COMMISSIONER HANSEN: Thank you,
6 Commissioner Smith, and I might mention that we have some
7 areas that have been on the waiting list for over three
8 years.
9 Okay, thank you for your testimony.
10 (The witness left the stand.)
11 COMMISSIONER HANSEN: We'll start now --
12 AUDIENCE: I have a question.
13 COMMISSIONER HANSEN: This hearing is run
14 in that you need to sign up, we do not take questions
15 from the audience, we do not answers questions from the
16 Bench. You're here to make a statement. If you want to
17 make a statement, you sign up, you can come up and you
18 can make your statement. The only people here that can
19 ask a witness a question are those that have filed and
20 been granted intervening status.
21 Now, we will take a break, as
22 Commissioner Smith just made me aware, we'll take a break
23 and at that time during our break if you would like to
24 ask the phone company or the Staff or anyone questions
25 concerning matters, they will be here to answer those
18
CSB REPORTING HALL (X)
Wilder, Idaho 83676 Staff
1 questions.
2 Okay, and I might mention to you people
3 here this evening, it is critical if you have an opinion
4 to sign up and make a statement, because if you're for it
5 or against it and you don't come forward and make a
6 statement, we're going to have to make our decision on
7 what is in the record and what will be in the record is
8 those that make the statement, so whether you're for or
9 against, it's critical you come forward and make your
10 statement here this evening, so we'll start out with the
11 sheet and the first person to sign up is Mr. Patrick
12 Gallagher.
13
14 PATRICK GALLAGHER,
15 appearing as a public witness, having been first duly
16 sworn, testified as follows:
17
18 EXAMINATION
19
20 BY MR. HOWELL:
21 Q Mr. Gallagher, would you state your name
22 and spell your last for the record, please?
23 A Patrick G-a-l-l-a-g-h-e-r.
24 Q And, sir, in what city do you reside?
25 A In Victor.
19
CSB REPORTING GALLAGHER
Wilder, Idaho 83676 Public
1 Q And your address?
2 A P.O. Box 155.
3 Q And do you have a statement you'd like to
4 present tonight?
5 A Yes, I'd like to say greetings and good
6 evening and thanks to everyone for showing up and the
7 IPUC for having this meeting. As I said, my name is
8 Patrick Gallagher and I'm the chairman for the Coalition
9 for Fair Utility Rates, better known as COFFURs, and we
10 at the coalition are against the cost of this EAS for
11 basically these reasons, and I'm going to try to be
12 brief. I took six pages and made this out of it
13 [indicating].
14 I've believed from the beginning that there
15 are no savings involved with this EAS, that basically the
16 motto of this EAS is we cheat the other guy and pass the
17 savings on to you. If this were such a good deal and
18 there were actual savings, it could be made optional and
19 you'd be a fool not to sign up for it, but it's not
20 optional, it's mandatory. You have to sign up for it and
21 the reason you would have to sign up for it if it's
22 passed is because you have to take money from some people
23 to pay the other people's phone bills, and I guess if
24 you're you in that we cheat the other guy and pass the
25 savings on to you, that's great, but if you're the other
20
CSB REPORTING GALLAGHER
Wilder, Idaho 83676 Public
1 guy, it sort of stinks.
2 Our two options, the two options that we've
3 been given, are not options at all. They're sort of like
4 saying we can pay through one nostril or we can pay
5 through the other nostril, but either way we're going to
6 pay through the nose. This 90-minute residential calling
7 option works out to three minutes a day. After three
8 minutes you're actually paying a toll for a toll free
9 call and I just envision in my warped way a little old
10 lady sitting down at the gas station using the pay phone
11 because you can talk on the pay phone for 35 cents all
12 day long. I mean, why does it cost more to use your home
13 phone if you use this measured rate?
14 I think, really, if the -- there's a lot of
15 other things. It really strikes me as an irony that
16 Teton Telecom has an agreement with U S WEST that says
17 they can't raise rates for the three years of the buying
18 or the purchase. I thought it was more like 18 months
19 left, I really did. I learned tonight that it's closer
20 to a year. If this EAS goes through, there's no
21 extension on that, no extension of the rate freeze. It's
22 going to be about the same amount of time, so in the
23 spring of next year, we could be set up for another rate
24 increase.
25 What's interesting is that, and this is
21
CSB REPORTING GALLAGHER
Wilder, Idaho 83676 Public
1 just my impression, but because these rates are fixed,
2 basically the only way to generate more revenue for Teton
3 Telecom is by a voter-initiated petition and then they
4 can say, hey, these people want this and then we can
5 double everybody's base phone rates a year sooner than we
6 could have raised them, pretty interesting, and the deal
7 with the EAS is you don't have to want it, you don't have
8 to need it, you don't have to use it, but you do have to
9 pay for it and I just, these aren't options.
10 A real option is make the EAS optional. If
11 the EAS is optional, we don't need these meetings, we
12 don't need fax machines, we don't need lawyers, we don't
13 need these wonderful men in suits. All we need is the
14 freedom to choose. We could choose whether we want this
15 or not. We can choose if we make lots of calls, yeah,
16 that's cool. Those people are happy. The people that
17 don't want it, they won't do it.
18 I'm saying this publicly, they will not
19 make this EAS optional. Why? Because you've got to
20 screw somebody out of money to make this work. That's
21 basically what it amounts to. I don't want to be the
22 other guy. I don't know why -- if the majority of the
23 people really want this, you know, the expression build a
24 better mousetrap, the world will beat a path to your
25 door, if that's true, if this EAS is such a good deal,
22
CSB REPORTING GALLAGHER
Wilder, Idaho 83676 Public
1 making it optional, well, everybody would be a fool not
2 to sign up.
3 They won't make it optional, I'll guarantee
4 you and they won't even make it a ballot issue. You know
5 how they send this nice little newsletter that basically
6 has no real information in it, but they send that out all
7 the time, I think they could send out a ballot. If the
8 majority of the people really want this EAS, why not have
9 a ballot. I think it would be a better way to gauge, a
10 better barometer of what the will of the people in this
11 valley want. If the will of the people of this valley
12 are for it by a majority, I'll back off, but I want it to
13 be fair. I don't want it to be a decision by
14 misinformation and I think there's been a lot of
15 misinformation.
16 I think the whole idea of how it works has
17 been misled. I think this wonderful statement, the last
18 one was maybe, possibly there might be a rate increase in
19 the future -- oh, previous to, I'm sorry, April 24th that
20 you just read this evening. The previous news release
21 was maybe, possibly there might be a rate increase in the
22 future. Maybe the barnyard stinks. I think rates are
23 going to go up anyways. I mean, I think the only thing
24 in my life that goes down are the prices of computers and
25 that's because they're disposable. Everything is going
23
CSB REPORTING GALLAGHER
Wilder, Idaho 83676 Public
1 to go up.
2 If this EAS came with a 10-year guarantee
3 that rates aren't going to go up, yeah, okay, but it
4 doesn't even come with that. I mean, I just can't see
5 the benefit, not the benefit for the majority of the
6 people in the valley, just strictly economics. The way
7 it works is cost averaging. You've got to steal from
8 somebody to pay the other guy. If it works a different
9 way, correct me. It's public, I'll admit I'm wrong.
10 I don't think I am, and I think lastly, I
11 really, I took six pages into this, I think Teton Telecom
12 must be scared to give people the freedom to choose what
13 they want, because if they have the freedom to choose, if
14 it's really revenue neutral, how can these guys lose if
15 it's revenue neutral. You know, I mean, there's probably
16 some great statistics and they hire wonderful people to
17 do all these things, but really, if it's revenue neutral,
18 make it optional. How can you lose if it's revenue
19 neutral, because it's not revenue neutral, I don't
20 believe.
21 I think people should be given the freedom
22 to choose whether they want this EAS on an individual
23 basis. It makes sense to me. It keeps the people who
24 want it happy, it keeps the people who don't want it
25 happy. They won't do it. It's too simple a solution.
24
CSB REPORTING GALLAGHER
Wilder, Idaho 83676 Public
1 That's all I have to say. Thank you.
2 COMMISSIONER HANSEN: Thank you. Let's see
3 if we have any questions for Mr. Gallagher.
4 Yes, Mr. McClure.
5 MR. McCLURE: Yes, sir. Thank you.
6
7 CROSS-EXAMINATION
8
9 BY MR. McCLURE:
10 Q Mr. Gallagher, you are aware that this
11 proceeding was not initiated by Teton Telecom, are you
12 not?
13 A Yes.
14 Q You are aware --
15 A It was a voter-initiated petition.
16 Q You're aware that more than 500 of your
17 neighbors asked the Commission to order this rate?
18 (Audience clapping.)
19 COMMISSIONER HANSEN: I'd ask you to please
20 hold your applause. We need to have order. I'd ask you
21 please not to applaud. Thank you.
22 AUDIENCE: That's our opinion.
23 MR. McCLURE: No further questions.
24 COMMISSIONER HANSEN: Okay, Mr. Howell.
25 MR. HOWELL: No questions.
25
CSB REPORTING GALLAGHER (X)
Wilder, Idaho 83676 Public
1 COMMISSIONER HANSEN: Commissioner Smith.
2 COMMISSIONER SMITH: No questions.
3 COMMISSIONER HANSEN: I have one question.
4 THE WITNESS: Yes, sir.
5
6 EXAMINATION
7
8 BY COMMISSIONER HANSEN:
9 Q If what Mr. Hoopes stated was to happen and
10 after the freeze in March of '99, if he was to apply and
11 try to get Idaho Universal Service Funding for this area
12 and he said he would have to raise rates 125 percent
13 above the statewide average, which would bring it in the
14 neighborhood of about $22.00, my question is to you,
15 would you prefer to pay the $22.00 and not have EAS or
16 would you prefer to pay the $24.10 and have extended area
17 calling?
18 A Very interesting question. I have trouble
19 answering it only because if the EAS were made an
20 option --
21 Q Let's say it was not made optional. Let's
22 say that right now you either have a choice a year from
23 now of paying over $22.00 for your local service if he's
24 successful in getting what he desires, and I don't know
25 that he will, but if he is and the other rural areas are
26
CSB REPORTING GALLAGHER (Com)
Wilder, Idaho 83676 Public
1 on it so there's a strong likelihood he could, if that
2 was to happen versus the proposal now of expanded area
3 service at 24.10 giving up the rate freeze for one year
4 because you'd go up a year sooner, plus you would pay a
5 couple or $3.00 more for the extended area, how would you
6 vote right now? Would you be for it or against it?
7 A Wording the question the way you have makes
8 it difficult, but I would say that I would not be for it.
9 COMMISSIONER HANSEN: Okay, thank you.
10 THE WITNESS: Thank you.
11 COMMISSIONER HANSEN: Okay, we appreciate
12 your testimony.
13 MR. GALLAGHER: Thank you, sir.
14 (The witness left the stand.)
15 COMMISSIONER HANSEN: I've been asked, we
16 have an individual that has to leave, has another
17 appointment, we don't do it often, but I will drop down
18 the list and call Mr. Ken Nielsen and then we'll go back
19 and try and stay in order.
20
21
22
23
24
25
27
CSB REPORTING GALLAGHER (Com)
Wilder, Idaho 83676 Public
1 KENNETH NIELSEN,
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 Mr. Nielsen, will you state your full name
9 and state your last name for the record, please?
10 A Kenneth Nielsen, N-i-e-l-s-e-n.
11 Q And, sir, what is your address?
12 A Post Office Box 91, Driggs, Idaho.
13 Q And do you have a statement you'd like to
14 provide tonight?
15 A Yes, I do.
16 Q Please go ahead.
17 A I'm somebody that's on a fixed income and
18 looking over everything with this EAS, it looks to me
19 like my telephone bill is just going to skyrocket, so I
20 have some fears that I'm going to have to have the
21 telephone taken out if this happens and so I am just
22 totally opposed to this.
23 COMMISSIONER HANSEN: Is that your
24 statement?
25 THE WITNESS: That is my statement, but
28
CSB REPORTING NIELSEN
Wilder, Idaho 83676 Public
1 if --
2 COMMISSIONER HANSEN: If you'd like to
3 continue, go on.
4 THE WITNESS: Could I make a comment on a
5 question that you asked? If I had the choice tonight as
6 to whether to vote for the EAS or to vote against it, I
7 would be against it.
8 COMMISSIONER HANSEN: Thank you. Let's see
9 if we have any questions for Mr. Nielsen.
10 Mr. Howell?
11
12 CROSS-EXAMINATION
13
14 BY MR. HOWELL:
15 Q Mr. Nielsen, how much is your monthly
16 telephone bill now?
17 A It runs usually between 50 and $60.00 a
18 month.
19 Q And so of that 50 or $60.00, is about 35 to
20 $55.00 toll charges?
21 A About 30 of it is out-of-state long
22 distance calls.
23 Q So how much in-state long distance would
24 you have?
25 A I probably only make about two calls a year
29
CSB REPORTING NIELSEN (X)
Wilder, Idaho 83676 Public
1 to Idaho Falls and other than that, I don't call inside
2 the State of Idaho.
3 Q And would a rate of $16.00 or a 10.50
4 credit if you were eligible for a low income, would those
5 be of any interest to you?
6 A If they drop the 90 minutes of free charges
7 before you had a rate charge.
8 MR. HOWELL: Thank you, sir.
9 COMMISSIONER HANSEN: Commissioner Smith.
10
11 EXAMINATION
12
13 BY COMMISSIONER SMITH:
14 Q I'm just confused, Mr. Nielsen. I'm right
15 here. If you only make two calls to Idaho Falls, then
16 why is the 90 minutes a concern?
17 A I make a lot of calls locally here in the
18 Driggs, Victor, Tetonia area.
19 Q Okay; so your concern would be cutting off
20 your local calling?
21 A Yes, very much. I think at least the way
22 the whole telephone system is set up in the United States
23 and has been, most people have a local area that they can
24 call free of charge. I see this totally doing away with
25 that.
30
CSB REPORTING NIELSEN (Com)
Wilder, Idaho 83676 Public
1 COMMISSIONER SMITH: Well, don't move to
2 Long Island or Chicago where all service is measured.
3 Thank you, Mr. Chairman.
4 COMMISSIONER HANSEN: Thank you for your
5 testimony.
6 (The witness left the stand.)
7 COMMISSIONER HANSEN: The next person we
8 have signed up is David McCoy.
9
10 DAVID McCOY,
11 appearing as a public witness, having been first duly
12 sworn, testified as follows:
13
14 EXAMINATION
15
16 BY MR. HOWELL:
17 Q Mr. McCoy, could you state your full name
18 and spell your last for the record?
19 A My name is David B. McCoy. I live at
20 P.O. Box 224, that's my address, Victor, Idaho, 83455.
21 Q And do you have a statement you'd like to
22 give tonight?
23 A Yes, I do. I believe the PUC has framed an
24 unreasonably limited issue for this public hearing in
25 light of the public misinformation and due process
31
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 violations surrounding this EAS application. The EAS
2 application should be reviewed de novo. Willingness to
3 pay increased rates should only be considered in the
4 larger context of what actual costs will be for the
5 consumer based on various assumptions. Yet, these cost
6 scenarios and assumptions have never been furnished to
7 the public to allow public consideration of what
8 realistic, justifiable costs will be under the EAS
9 proposal.
10 The PUC polling of public opinion by having
11 persons stand up and sit down with the presentation of
12 arbitrary cost figures is a ridiculous methodology that
13 more resembles determining the winning football team at a
14 game by observing which team has the loudest cheering
15 section. Relying on the cheering sections at a public
16 hearing of those in favor or in opposition to the EAS
17 cannot be considered evidence of a type generally relied
18 upon by prudent persons in the conduct of their affairs.
19 This kind of evidence is irrelevant. With
20 a Teton Valley customer base of 3,000 persons, how can
21 the PUC make anything but a travesty of a ruling on this
22 EAS petition by counting the heads of persons at various
23 price levels, persons who have not had the opportunity to
24 be presented with legitimate factual information? Why
25 can't the members of the public be allowed to review for
32
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 themselves what a legitimate cost for the service
2 provided would actually be after presentation and
3 consideration of the facts?
4 We heard this evening for the first time
5 that the new evidence for the stipulation and settlement
6 and the increased costs there was a sale of properties
7 and purchase of Teton Telecom requiring new rates by
8 Teton Telecom. I think there's more efficient ways to
9 find out what the public would like. I like to think of
10 the voter's pamphlet, where facts are laid out by an
11 independent party and then various constituents can argue
12 the pros and cons of the proposal. Nothing like that has
13 happened in this proceeding. Teton Telecom could send
14 out a questionnaire agreed upon by Staff, parties and
15 intervenors to poll the customer base or an independent
16 market research firm could create a survey. That would
17 go a long way toward reversing the misinformation, lack
18 of information and outright concealment of information by
19 Teton Telecom and the PUC Staff.
20 I am personally unwilling to pay a monthly
21 increase of 16.26, my phone bill, to 24.10 plus other
22 costs which will put it at around $31.00. Superficially,
23 the increase represents a 48 percent increase in the base
24 price for residential service. However, when one tries
25 to compare the rate for EAS as against the remaining
33
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 option of measured service rate at $16.00 per month for
2 90 minutes calling within the extended dialing area, the
3 public is being forced to pay EAS rates at gunpoint.
4 The cost increase is dramatic for the
5 measured service rate brought on by the EAS structure.
6 One would be charged $.18 per minute for local calls
7 within the current local calling area. Spending $.35 for
8 a local public pay phone call of two minutes seems like a
9 cheaper alternative than the measured alternative rate.
10 A customer without EAS currently paying 16.26 for local
11 service could use the telephone for 43,200 minutes for a
12 30-day month, that's currently. Currently the charge for
13 residential local calls is approximately $.0004 per
14 minute. Thus, the increase in cost for local calls from
15 $.0004 to $.18 per minute is approximately a 48,000
16 percent increase.
17 There's been no real public factual
18 discussion of how many calls the average customer makes
19 now to the EAS areas and what the costs of those calls
20 are so a customer could actually look at his bill and
21 figure out what savings might or might not be generated.
22 There's been no discussion of formula used
23 to determine the mix between residential and business
24 rates. Why is it fair, for example, that it's $24.00 or
25 $42.00? What's the facts that's been presented to
34
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 anybody in this by any party to this proceeding? There's
2 been no discussion on why the public shouldn't be able to
3 have measured rate service on one line and EAS rate on a
4 second line. That decision was made out of the blue.
5 What is the justification for the increased
6 costs in the proposed EAS? Initially, we were informed
7 it was going to be 17.51, now it's up to 24.10. Teton
8 Telecom didn't inform its customers in these proceedings
9 that there would be a residual revenue requirement, the
10 potential shortfall, of from 61,500 to 200,000 which it
11 hoped to make up by receiving funds from the Universal
12 Service Fund. We didn't learn about that in November, we
13 learned about it in February.
14 Did Teton Telecom throw darts at a board or
15 what to come up with two figures differing by almost
16 $139,000 for possible residual revenue requirements? The
17 public is now being asked to swallow huge price increases
18 which went from an initial estimate of $1.25 up to $7.84
19 for residential. That's only a 520 percent error in
20 calculation, folks.
21 Once again, at this May 5th meeting, the
22 public is not allowed to probe the cost assumptions to
23 try to determine what the increases were based upon. If
24 you call up the PUC Staff and ask what their cost
25 assumptions were based on, you're going to be told that
35
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 this is proprietary information; in other words, all
2 these decisions --
3 MR. HOWELL: Mr. Chairman, I'm going to
4 object to this testimony. I, unfortunately, seldom ever
5 object to a public witness' testimony, but I believe the
6 issue in the case here tonight is the affordability and
7 the willingness of customers to pay this rate. What
8 Mr. McCoy seems to be providing testimony on, public
9 testimony, is the costs involved. If I recollect your
10 caution at the beginning of the hearing, this hearing
11 isn't about costs. It's about the ability of customers
12 to pay those rates.
13 COMMISSIONER HANSEN: Mr. McCoy, I'd ask
14 you to --
15 THE WITNESS: May I respond to that
16 objection, Mr. Commissioner?
17 COMMISSIONER HANSEN: Go ahead.
18 THE WITNESS: The ability to pay these
19 rates is based upon the costs and one should be able to
20 probe what those costs are and how they came about and no
21 one in this proceeding, no member of the public has been
22 able to see what the reason behind these costs is, so how
23 can we know if we're willing to pay for something. When
24 I pay for something, I look at what I'm getting for value
25 paid.
36
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 MR. HOWELL: Mr. Chairman, I'd renew my
2 objection. People have, private parties as well as any
3 individual has, been able to intervene in this case since
4 well before November of last year. The Commission's
5 rules of intervention are published, they're available in
6 every law library and, in fact, as the Commission well
7 knows, Mr. Gallagher has been granted intervention as
8 recently as Friday and so I would renew my objection to
9 any testimony being received about costs.
10 (Audience clapping.)
11 COMMISSIONER HANSEN: Mr. McCoy, I'm going
12 to deny that objection right now in that I will let your
13 testimony stand, but I would ask that you keep your
14 testimony based on regarding the customers' willingness
15 to pay the proposed rate and not to expand to other
16 issues. As I mentioned earlier, there will be
17 opportunity given to you later possibly to expand into
18 those other areas, but not here tonight. You can
19 continue on.
20 THE WITNESS: One can only fear that when
21 Teton Telecom seeks rate relief in the spring of 1999,
22 the requested relief will be massive. The public has not
23 been adequately informed of the future potential rate
24 increases that will be linked to the EAS cost structure,
25 so how can anyone really analyze if they're willing to
37
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 accept the new EAS rates in the context of the future
2 plans of the phone company?
3 The customers have never been informed of
4 what, if any, credit Teton Telecom should give its
5 customers in consideration for getting out of its
6 agreement to freeze costs for customers in the wake of
7 its purchase agreement from U S WEST.
8 Additionally, U S WEST, as I understand it,
9 appears to be disgruntled about lost toll revenue. If
10 U S WEST pursues PUC or if U S WEST sues PUC and Teton
11 Telecom/Silver Star and receives a recovery, what is the
12 potential cost of that recovery to either the telephone
13 customers of Teton Telecom --
14 COMMISSIONER HANSEN: Mr. McCoy, I'd have
15 to interrupt your testimony here. We have another case
16 that's in regard to that issue and you'll have an
17 opportunity to respond as we have hearings on that case,
18 so that is not part of this case.
19 THE WITNESS: Well, I just think it's going
20 to figure into --
21 COMMISSIONER HANSEN: Well, I'll have to
22 rule you out of order in this area, so you'll have to
23 continue on in a different manner, sir, and please hold
24 the applause.
25 AUDIENCE: Let me speak.
38
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 THE WITNESS: I'm more than happy with -- I
2 have the floor, sir.
3 COMMISSIONER HANSEN: Sir, will you please
4 sit down? We will have order here and we're going to
5 respect the people that are giving testimony here this
6 evening whether we agree or not, but we are going to stay
7 on the subject matter as I said when we started the
8 hearing and we will follow an orderly hearing and we will
9 stick to the case and the subject.
10 Mr. McCoy, now, you can continue.
11 THE WITNESS: Thank you. Whether you agree
12 with me or disagree with me, it doesn't matter to me one
13 way or the other, particularly. The concern that I have
14 here is basically that all of us, whether you agree or
15 disagree, haven't received any facts as to what these
16 costs are based on. No range of figures were provided to
17 the public which discussed the pricing options based on
18 the various assumptions. The PUC Staff hasn't informed
19 the public of the situation.
20 The November, '97 public meeting went ahead
21 with all its erroneous information and support for the
22 EAS was garnered on the basis of totally unrealistic
23 calculations. At this May 5th meeting, the PUC and Teton
24 Telecom are still playing hide the ball with the public
25 because the public doesn't know any more now than it did
39
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 in November of 1997.
2 In order to avoid an arbitrary and
3 capricious decision in this matter, due process means
4 that the opportunity for meaningful discussion must be
5 provided. To date, discussion has been short on facts
6 and long on hype from Teton Telecom and the PUC Staff.
7 The choice in this matter must be based on informed
8 consent. Thank you.
9 COMMISSIONER HANSEN: Let's see if we have
10 any questions for Mr. McCoy.
11 MR. McCLURE: No questions.
12 MR. HOWELL: No questions.
13 COMMISSIONER HANSEN: Commissioner Smith.
14 COMMISSIONER SMITH: I don't. Thank you.
15 COMMISSIONER HANSEN: Neither do I. Thank
16 you for your testimony.
17 (The witness left the stand.)
18 COMMISSIONER HANSEN: We now have Hugh
19 Shane.
20
21
22
23
24
25
40
CSB REPORTING McCOY
Wilder, Idaho 83676 Public
1 HUGH SHANE,
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 Could you state your name and spell your
9 last name?
10 A My name is Hugh Shane. That's S-h-a-n-e.
11 My address is 119 Fisher Road and that's in Tetonia,
12 83452.
13 Q Go ahead, sir.
14 A Well, I think EAS stinks. It takes money
15 out of my pocket, puts it into yours. I've got a
16 business that has a bunch of incoming phone lines. It's
17 going to cost me thousands of dollars a year more to run
18 it. I'll have to relocate it, I can deal with that, but
19 not everybody else has that option, so this seems wrong
20 to me; however, now we have this new piece of information
21 that comes to us kind of at the last minute, oh, well,
22 rates are going to go up anyway, so what the heck, let's
23 get EAS.
24 Well, if that's true, then we'd be fools to
25 turn EAS down, but right now I don't know what the truth
41
CSB REPORTING SHANE
Wilder, Idaho 83676 Public
1 is. I don't know who to believe. The gentleman who
2 spoke before me said we haven't been presented with
3 information. We get propaganda in the mail, we get
4 flyers from Teton Telecom saying EAS is a done deal
5 before the Commission has even announced its decision.
6 You know, it's a propaganda campaign. I don't know what
7 to believe, so if rates are going to go up and there's a
8 cap at 125 percent of the statewide average, then I have
9 to say, well, we'd be foolish to reject EAS, but I
10 realize that some people are still going to be hurt by
11 it. The gentleman who spoke earlier who is on a fixed
12 income, this is not going to be good for him, but I have
13 to say under those circumstances, I'd accept EAS, but I
14 don't know what the truth is and that's a real problem
15 that we all have in here.
16 COMMISSIONER HANSEN: Thank you,
17 Mr. Shane. We'll see if we have any questions.
18 Commissioner Smith?
19
20 EXAMINATION
21
22 BY COMMISSIONER SMITH:
23 Q I guess I was just curious, Mr. Shane,
24 about your business lines and how many you had and is
25 this mostly you calling out on them or customers calling
42
CSB REPORTING SHANE (Com)
Wilder, Idaho 83676 Public
1 in?
2 A These are strictly incoming. No outgoing
3 calls are placed on these lines at all. It's absurd. In
4 fact, I'll be subsidizing access to my competition.
5 Q And what is the nature of the business?
6 A It's an Internet access business.
7 COMMISSIONER SMITH: I see. Okay, thank
8 you very much.
9 COMMISSIONER HANSEN: Thank you for your
10 testimony.
11 THE WITNESS: Thank you.
12 (The witness left the stand.)
13 COMMISSIONER HANSEN: I believe this is Pat
14 Flaherty. I hope I got that right.
15
16 PATRICK FLAHERTY,
17 appearing as a public witness, having been first duly
18 sworn, testified as follows:
19
20 THE WITNESS: My name is Patrick Flaherty.
21 I live at 788 South 450 West in Victor.
22 COMMISSIONER SMITH: Could you spell your
23 last name?
24 THE WITNESS: F-l-a-h-e-r-t-y.
25 COMMISSIONER SMITH: Thank you.
43
CSB REPORTING FLAHERTY
Wilder, Idaho 83676 Public
1 THE WITNESS: With regard to this extended
2 area service, I'm one of those who is not willing to pay
3 for that product at the rates that have been proposed and
4 approved. I am one of those who the proposed option for
5 residential customers who do not use their phones
6 extensively does not apply. I use my phone extensively
7 and I very rarely call outside Teton Valley that it's not
8 an out-of-state long distance call, so I see this as a
9 substantial increase in the basic rate that provides no
10 benefit to me.
11 I think it would be interesting to see this
12 product offered as are other such products like call
13 waiting, voice mail services and that sort of thing.
14 That's my testimony.
15 COMMISSIONER HANSEN: Let's see, do we have
16 any questions? Yes, Mr. Gallagher.
17 MR. GALLAGHER: Thank you.
18
19 CROSS-EXAMINATION
20
21 BY MR. GALLAGHER:
22 Q As I understand it, what you're saying is
23 that you would like to see EAS as an option similar to
24 call waiting or call forwarding or something like that?
25 A Well, it certainly looks like it might be
44
CSB REPORTING FLAHERTY (X)
Wilder, Idaho 83676 Public
1 an attractive product to some users but not to all.
2 MR. GALLAGHER: Thank you.
3 COMMISSIONER HANSEN: We have no other
4 questions?
5 Thank you for your testimony.
6 (The witness left the stand.)
7 COMMISSIONER HANSEN: We now have, I
8 believe it's, Harry Niendorf.
9 MR. NIENDORF: I would like to decline.
10 Mr. McCoy's remarks, I agree with him wholly, 100
11 percent.
12 COMMISSIONER HANSEN: And then we have
13 Belle? You would like to decline?
14 MRS. NIENDORF: Same.
15 COMMISSIONER HANSEN: L. G. Bolton.
16 MR. BOLTON: I'd like to relinquish my time
17 as my objections have already been well versed.
18 COMMISSIONER HANSEN: And I think the one
19 initial is A. Bolton-Lewis.
20
21
22
23
24
25
45
CSB REPORTING FLAHERTY (X)
Wilder, Idaho 83676 Public
1 LEANN BOLTON-LEWIS,
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 Could you state your name and spell your
9 last for the record, please?
10 A LeAnn Bolton-Lewis, B-o-l-t-o-n-L-e-w-i-s.
11 Q And your address, please, ma'am?
12 A P.O. Box 617, Driggs, Idaho, 83422.
13 Q And do you have a statement?
14 A Basically, I feel that I'm just real
15 confused and I originally thought this whole plan would
16 be real nice for everybody, but I didn't know that we
17 would have to have toll charges to call our neighbors and
18 my family and it would probably break me to call my
19 parents every day. You know, if I don't get to see them
20 every day, we talk extensively on the phone. I work with
21 the schools and I'm in Driggs, they're in Victor and with
22 the Scouts in Tetonia, I would be racking up all these
23 toll charges.
24 Can you all hear? I do believe that,
25 again, if it was maybe an option or if we were able to
46
CSB REPORTING BOLTON-LEWIS
Wilder, Idaho 83676 Public
1 keep Teton Valley so that we could still call our
2 neighbors and our friends rather than be charged for this
3 call, it might be worth it and I also feel that a lot of
4 folks that are shut in their homes will not be able to --
5 their only access to other human beings are on the phone
6 and they're not going to be able to afford it.
7 I think the consumer should have a right to
8 choose where, how he pays for his phone charges. There
9 are other options out there. With your $.03 per minute
10 after our basic fee, I figured out that every hour would
11 be almost $2.00 an hour to call. Now, I just basically
12 think this is a lot of money to pay for our friends and
13 our neighbors and our family within the area and I think
14 there are other options out there for long distance to
15 Idaho Falls or Rexburg, like any other toll call, or if
16 Teton Valley could be left alone or different options; if
17 you want that extended service, to get it and if you
18 don't, you don't have to sign up.
19 COMMISSIONER HANSEN: Is that your
20 testimony?
21 THE WITNESS: I believe it is.
22 COMMISSIONER HANSEN: Let's see if we have
23 any questions.
24 Mr. Howell.
25
47
CSB REPORTING BOLTON-LEWIS
Wilder, Idaho 83676 Public
1 CROSS-EXAMINATION
2
3 BY MR. HOWELL:
4 Q Ma'am, I'm unclear. Do you understand if
5 you subscribe to the EAS that you could call your mother
6 in Victor without a toll charge?
7 A But for only 90 minutes a month.
8 Q No. Under the proposal for $24.10 a month,
9 you could call as much as you want to every exchange in
10 the U S WEST local calling region which stretches all the
11 way down to Paris as well as Victor or Wayan, Driggs,
12 Idaho Falls, Rexburg and I could go on and on, those
13 would be without toll charges.
14 A But that's still double what I pay right
15 now.
16 MR. GALLAGHER: That's true.
17 Q BY MR. HOWELL: I just wanted to be sure I
18 understood your testimony.
19 A And, see, originally I didn't know it was
20 going to be double. I forgot to tack on all the little
21 extras that are never explained and personally, I can't
22 afford all the little extras.
23 Q Do you make a lot of telephone calls now
24 outside the valley in state?
25 A Not too many and I have an extra or one of
48
CSB REPORTING BOLTON-LEWIS (X)
Wilder, Idaho 83676 Public
1 the subscribed long distance carriers which you can get
2 for $.10 a minute at any time of day or some are $.05 a
3 minute, but I believe that each individual has to
4 investigate those options rather than being --
5 Q And who is your long distance carrier?
6 A Excel.
7 MR. HOWELL: No further questions. Thank
8 you.
9 THE WITNESS: Thank you.
10 COMMISSIONER HANSEN: Do you have any
11 questions?
12 COMMISSIONER SMITH: No.
13 COMMISSIONER HANSEN: I believe I have one
14 question, ma'am.
15
16 EXAMINATION
17
18 BY COMMISSIONER HANSEN:
19 Q A question I asked earlier, if Mr. Hoopes
20 is correct and a year from now the local rate was over
21 $20.00, approximately 22, would you still prefer to not
22 have EAS at 2, 3 or $4.00 more a month and prefer to have
23 the lower rate at $22.00 rather than to pay 24, 25 to
24 include EAS?
25 A The 2 or $3.00 increase, this is a year
49
CSB REPORTING BOLTON-LEWIS (Com)
Wilder, Idaho 83676 Public
1 from now if we go on EAS today?
2 Q Mr. Hoopes has said approximately a year
3 from now he would be trying to get this area under
4 Universal Service Funding which he would have to raise
5 the rates up to qualify for the funding and that would be
6 approximately $22.00 a month, but you'd only be able to
7 call here in the valley like you do now. Would you
8 prefer to have that rate or would you prefer to pay an
9 extra 2 or $3.00, the 24, 25, whatever for the extended
10 area calling or would you still prefer to have the lower
11 rate and just call in the valley?
12 A At this point in time I believe I would
13 prefer to keep things the way they are and if we go for
14 the higher rate next year, I would probably consider a
15 cell phone that I have investigated and for a flat fee
16 you can call anywhere you want and between six and eight
17 states for, like, $30.00 a month.
18 COMMISSIONER HANSEN: Okay, thank you.
19 THE WITNESS: And I would probably have to
20 cancel telephone service.
21 COMMISSIONER HANSEN: Thank you for your
22 testimony.
23 (The witness left the stand.)
24 COMMISSIONER HANSEN: We now have Fred
25 Liebenthal.
50
CSB REPORTING BOLTON-LEWIS (Com)
Wilder, Idaho 83676 Public
1 MS. LIEBENTHAL: Liebenthal?
2 COMMISSIONER HANSEN: You're Jean?
3 MS. LIEBENTHAL: Jean Liebenthal.
4 COMMISSIONER HANSEN: Okay. Well, come
5 forward.
6
7 JEAN LIEBENTHAL,
8 appearing as a public witness, having been first duly
9 sworn, testified as follows:
10
11 EXAMINATION
12
13 BY MR. HOWELL:
14 Q I need your name and address for the
15 record.
16 A My name is Jean Liebenthal,
17 L-i-e-b-e-n-t-h-a-l. My address is P.O. Box 529, Victor,
18 Idaho.
19 Q Thank you.
20 A I think I'm quite well-informed about all
21 of this and it would be to my advantage to have this
22 EAS. I think it's from my viewpoint and for my purposes
23 a reasonable rate and I am in favor of it and I like your
24 suits, and I really don't think I have very much more to
25 say, except that I, too, have family and I have quite a
51
CSB REPORTING LIEBENTHAL
Wilder, Idaho 83676 Public
1 number of family in the area in question and it would
2 save me about 35 or $40.00 a month I have figured, so if
3 there are any questions, I'd be glad to answer them.
4 That's my statement.
5 COMMISSIONER HANSEN: Do we have any
6 questions?
7 Thank you for your testimony.
8 (The witness left the stand.)
9 COMMISSIONER HANSEN: We now have David
10 Kearsley.
11
12 DAVID KEARSLEY,
13 appearing as a public witness, having been first duly
14 sworn, testified as follows:
15
16 EXAMINATION
17
18 BY MR. HOWELL:
19 Q Sir, I need your name and spell your last
20 for the record and your address.
21 A My name is David Kearsley,
22 K-e-a-r-s-l-e-y. My address is Post Office Box 341,
23 Victor, Idaho. I guess I might speak in behalf of myself
24 personally as well as a business here in Driggs. In all
25 those cases, and we do have four telephones at the
52
CSB REPORTING KEARSLEY
Wilder, Idaho 83676 Public
1 business here in Driggs, the proposed rates would be a
2 considerable savings for each of those lines in Driggs
3 because we do a lot of our business in the lower valley.
4 Also, it would be a considerable savings
5 for me personally and my household and the phone that we
6 have there, so I feel like the proposed rates are
7 something that would be a benefit and I am in favor of
8 that. As I've listened tonight and some of the new
9 things that have been brought up, I think it would help
10 if we had some clarifications. I agree with some of the
11 prior testimony that all information hasn't been given to
12 us.
13 I know that these proposed rates will
14 affect many people who are on fixed incomes. There are a
15 lot of people who deal primarily in Jackson and other
16 areas in the valley who won't benefit from the service.
17 I think maybe as we break if anybody could find out what
18 the income level for the credit, the 10.50, where that
19 break is. Some of those people who have concerns who are
20 on fixed income may have some of those questions answered
21 whether they would be in favor of or against it at that
22 time.
23 I realize that everybody won't benefit from
24 it. There's some who will not. That's the case in most
25 of the laws of the land, some don't benefit. We are in a
53
CSB REPORTING KEARSLEY
Wilder, Idaho 83676 Public
1 democracy. I feel, again, if we could find out if the
2 majority were for that, that that's the way we should
3 go. I believe that's all the testimony I have at this
4 time.
5 COMMISSIONER HANSEN: Let's see if we have
6 any questions.
7 Yes, Commissioner Smith has a question.
8 COMMISSIONER SMITH: Yes, I do.
9
10 EXAMINATION
11
12 BY COMMISSIONER SMITH:
13 Q As I mentioned earlier, the Eden/Hazelton
14 folks sought for many years and finally obtained EAS into
15 Twin Falls and as they made their petitions, they were
16 thinking mainly of how beneficial it would be for them to
17 be able to call Twin Falls. When we went back, I guess
18 it was, a year ago and did the hearings to implement the
19 regional EAS area in the Magic Valley, the testimony from
20 those folks surprised me and what it was is that
21 businesses in Eden and Hazelton had seen a tremendous
22 increase because people from Twin Falls could now call
23 them. I didn't know if you were in a position to assess
24 whether there's any benefits to your business or
25 businesses generally in the valley from those outside
54
CSB REPORTING KEARSLEY (Com)
Wilder, Idaho 83676 Public
1 being able to reach you toll free.
2 A I'm sure there will be benefit to many of
3 those businesses. In the Idaho Falls area, Pocatello
4 area, a lot of those businesses also deal with businesses
5 here in this area. Some of them carry 800 numbers
6 presently in order for us to call them. It would be a
7 definite benefit for them if they can just pick up the
8 telephone and call. In fact, I know some in that area
9 when they expanded that area from Rexburg, I guess, Sugar
10 City area on down into southern Idaho, some of them in
11 fact at that time dropped their 800 numbers from outlying
12 areas because they picked up some of those, so that
13 meant, again, that was an additional cost who dealt with
14 them because we no longer had that 800 number.
15 Q I guess my question was do you see any
16 benefit for businesses in this valley from those other,
17 the others being able to call in toll free? In other
18 words, do you think you'll get more business from people
19 outside the area if they can call you toll free?
20 A I don't know that there would be a lot of
21 business that would come in from the expanded service
22 area to Teton Valley, necessarily, that would make a
23 telephone call if it was toll free versus as it is right
24 now.
25 COMMISSIONER SMITH: Okay, thank you.
55
CSB REPORTING KEARSLEY (Com)
Wilder, Idaho 83676 Public
1 COMMISSIONER HANSEN: Thank you for your
2 testimony.
3 (The witness left the stand.)
4 COMMISSIONER HANSEN: We have an
5 announcement. A white Chevy pickup, license plate 1T410,
6 you have your lights on and I hope it isn't Paul's
7 because Paul is our next person and I'm going to say
8 Humurth and I might, I hope I've got that right,
9 P.O. Box 993, Driggs.
10
11 PAUL HOWARTH,
12 appearing as a public witness, having been first duly
13 sworn, testified as follows:
14
15 EXAMINATION
16
17 BY MR. HOWELL:
18 Q Sir, could you state your full name and
19 spell your last for the record?
20 A It's Paul Howarth, H-o-w-a-r-t-h,
21 P.O. Box 993, Driggs, Idaho. I'm here on behalf of
22 Jackson Hole Realty of which I'm a Realtor. We have nine
23 incoming lines in our business. Most of our business
24 comes from outside of the EAS area and we would
25 definitely appreciate Teton Telecom offering this as an
56
CSB REPORTING HOWARTH
Wilder, Idaho 83676 Public
1 option to businesses that we can use the facility,
2 because we have 800 numbers coming in and we have most of
3 our business out-of-state calls, so I would please
4 request that this is put as an option that we could use
5 this facility and not just mandate it that we have to use
6 it.
7 Thank you.
8 COMMISSIONER HANSEN: Let's see if we have
9 any questions.
10 Being none, thank you for your testimony.
11 THE WITNESS: Thank you.
12 (The witness left the stand.)
13 COMMISSIONER HANSEN: We now have Lorin
14 Schiess.
15
16 LORIN SCHIESS,
17 appearing as a public witness, having been first duly
18 sworn, testified as follows:
19
20 THE WITNESS: My name is Lorin Schiess,
21 S-c-h-i-e-s-s. My physical address is 135 West 300
22 South. My mailing address is P.O. Box 155, Driggs,
23 Idaho. In the case of the EAS calling area that's been
24 offered, I work in a business, it's an auto parts, we
25 have two long distance lines, two lines coming into it.
57
CSB REPORTING SCHIESS
Wilder, Idaho 83676 Public
1 It's a dead-even trade with what we -- with what our
2 phone bill is right now with our carrier who I don't know
3 who the carrier is, but with the rates that are on the
4 two lines now plus the long distance carrier that we
5 have, it's a dead-even trade.
6 I talked to my warehouse today, they have
7 an 800 number, they say that we are charged also by the
8 phone call going into them, which is approximately 15 to
9 20 a day into that facility and I don't know the cost on
10 that, so the EAS would be a savings to the business that
11 I work in.
12 As far as my personal home phone, it would
13 be a savings of 30 to $35.00 per month to me and it would
14 also be a savings to my college-aged daughter who most of
15 her phone calls are long distance from Pocatello to Teton
16 Valley and it would be a tremendous savings, so I am in
17 favor of it as it has been proposed.
18 COMMISSIONER HANSEN: Thank you.
19 Do we have any questions?
20 Hearing none, thank you for your
21 testimony.
22 (The witness left the stand.)
23 COMMISSIONER HANSEN: We have Rick
24 LaBelle.
25
58
CSB REPORTING SCHIESS
Wilder, Idaho 83676 Public
1 RICK LaBELLE,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: It looks like we have a lot
6 of business owners here right now, but Rick LaBelle,
7 L-a-B-e-l-l-e, address is 550 South 50 West in Victor and
8 I'm here mainly representing my business in Driggs which
9 is a national catalog company. It's Are You Outside. We
10 too have eight local phone lines for incoming and
11 outgoing calls both. I'm real concerned over the
12 increase in the basic monthly fee for each of these
13 lines.
14 Reviewing our phone records, we had more
15 incoming and outgoing calls to Scandinavia last year than
16 we did to this extended area of Idaho Falls which is long
17 distance currently. It would represent a monthly
18 increase to us, as I understand it right now, of about
19 $188. I'd be paying approximately $380 per month just
20 for my phone lines.
21 My statement is I really would encourage
22 this to be an option for businesses. When I look at this
23 as a business owner, I'm forced to consider all of my
24 choices if this actually passes and we're very seasonal.
25 During eight months of the year, we don't need eight
59
CSB REPORTING LaBELLE
Wilder, Idaho 83676 Public
1 phone lines, but I'd be paying for them just so I could
2 use them during the four months that I really do need
3 them.
4 We're looking at adding two more lines this
5 coming season where we'll have at least 10 lines and it's
6 something that actually even could force us to do things
7 like out-source our telephone part of our business which
8 would cost local jobs. It's not something I had in mind
9 when I moved the company here from a metro area three
10 years ago and wanted to really promote what this valley
11 has to offer and also help the local economy.
12 Just to give you an idea, I think there
13 could be ways of making up for revenue deficits from
14 businesses across the board if the costs associated with
15 that type of business is necessary. We had 15,000
16 minutes of incoming phone calls in December and of those,
17 3.6 minutes were intrastate incoming calls.
18 I was interested in the question posed to
19 Dave Kearsley earlier about whether this EAS would
20 increase the business the local businesses would get from
21 this EAS service; in other words, would more people in
22 Idaho Falls be willing to pick up the phone and call us.
23 We have 800 lines that meet that need and overall when
24 you factor that into the whole picture, it's more cost
25 effective. It's leaving the choice up to us of whether
60
CSB REPORTING LaBELLE
Wilder, Idaho 83676 Public
1 we want, whether the business that we feel we can get
2 warrants adding an 800 line or not.
3 No matter what happens here, I definitely
4 am interested in talking with Teton Telecom about options
5 down the road as cost increases continue to occur because
6 we do plan on adding phone lines yearly and we'll need to
7 do that. I think I've stated everything if there's any
8 questions.
9 COMMISSIONER HANSEN: Thank you for your
10 testimony.
11 Do we have any questions?
12 Yes, Mr. Howell.
13
14 CROSS-EXAMINATION
15
16 BY MR. HOWELL:
17 Q Mr. LaBelle, your incoming 800 lines aren't
18 provided by Teton, are they?
19 A They're not. They're through Network Plus
20 which is a Sprint affiliate.
21 MR. HOWELL: Right. Thank you.
22 COMMISSIONER HANSEN: Thank you for your
23 testimony.
24 (The witness left the stand.)
25 COMMISSIONER HANSEN: We now have the
61
CSB REPORTING LaBELLE (X)
Wilder, Idaho 83676 Public
1 initial K. Head.
2 KITCHENER HEAD,
3 appearing as a public witness, having been first duly
4 sworn, testified as follows:
5
6 EXAMINATION
7
8 BY MR. HOWELL:
9 Q Sir, I need your name and address for the
10 record.
11 A My name is Kitchener Head. I won't spell
12 Kitchener, but Head is spelled H-e-a-d just like head.
13 I'll have to admit I came here tonight with a semi-open
14 mind.
15 Q We need your address.
16 A Oh, Box 430, Driggs, Driggs, Idaho,
17 Box 430. This has been a very interesting meeting. I'm
18 just really disappointed there aren't a lot more people
19 here because there are sure a lot more people in Teton
20 Valley that are vitally interested in this that aren't
21 here tonight. I've been interested in the comments.
22 I'll have to admit that Mr. Gallagher -- by the way,
23 gentlemen, I like your suits. That doesn't mean,
24 Mr. Gallagher, I don't like your Levis, I almost came in
25 Levis, but I'll have to admit that Mr. Gallagher's
62
CSB REPORTING HEAD
Wilder, Idaho 83676 Public
1 testimony and Mr. McCoy and Mr. Shane's testimony went
2 right over my head. I couldn't quite understand what
3 they were talking about. Now, when I was a kid --
4 COMMISSIONER HANSEN: Mr. Head, at the
5 break you'll be able to talk to them and ask them those
6 questions, but just keep your testimony to this subject,
7 please.
8 THE WITNESS: Thank you, sir. My testimony
9 is this: When I was a kid, I lived in a little town in
10 southern Alberta. A city 56 miles away was a long ways
11 away. I never got to that city until I was about 15
12 years old. It's not that way today, it's not that way.
13 Our local area now is 150, 250 miles away, as far as
14 Salt Lake City, as far as Boise, as far as Evanston. We
15 don't live in a little tiny community any more.
16 I've been working in this valley since 1961
17 and I've made extensive use of the telephones for medical
18 consultation. That is a big part of the life in this
19 valley. Schools are 75 to 150 miles away, businesses are
20 150 miles away. Do we want the EAS? Yes, we do because
21 it will help everyone.
22 Now, I understand there are people here who
23 are on fixed incomes who only make two calls to Idaho
24 Falls a month. They are the very people who would
25 benefit by having the EAS because they would be the ones
63
CSB REPORTING HEAD
Wilder, Idaho 83676 Public
1 who would use this service more than anybody else. The
2 calls would be increased immeasurably, immeasurably.
3 My wife has a home business. She spends
4 between 200 and $300 a month calling the local area which
5 would be included in the EAS. That expense would be down
6 exceedingly, there's no question about that. I think the
7 EAS is a necessary determinant for the progress in this
8 valley, for the economic success in this valley. I think
9 if we put this in effect right now today every single one
10 of you who are opposed to it would be using this service
11 tomorrow to its fullest extent and you'd be getting the
12 benefits from it. I don't think there's any question
13 about that.
14 That's all and I'll question them later.
15 COMMISSIONER HANSEN: Let's see if we have
16 any questions for Mr. Head.
17 MR. GALLAGHER: Actually, I have one.
18 COMMISSIONER HANSEN: Mr. Gallagher, I'm
19 sorry.
20
21 CROSS-EXAMINATION
22
23 BY MR. GALLAGHER:
24 Q Mr. Head, would you be in favor of having
25 this issue on a ballot where the people of the valley
64
CSB REPORTING HEAD (X)
Wilder, Idaho 83676 Public
1 could decide individually?
2 A I'd certainly be in favor of having this on
3 a ballot if the information was presented fairly. In
4 this day and age with our present whatever, we don't get
5 the information presented fairly, but, yes, I would be
6 absolutely in favor of it, because I can't think that any
7 reasonable person would disagree with this if the
8 information were presented fairly.
9 MR. GALLAGHER: Thank you.
10 COMMISSIONER HANSEN: Thank you for your
11 testimony.
12 (The witness left the stand.)
13 COMMISSIONER HANSEN: We now have Delwin
14 Smith.
15
16 DELWIN SMITH,
17 appearing as a public witness, having been first duly
18 sworn, testified as follows:
19
20 THE WITNESS: Delwin Smith, S-m-i-t-h.
21
22 EXAMINATION
23
24 BY MR. HOWELL:
25 Q And your address, Mr. Smith?
65
CSB REPORTING SMITH
Wilder, Idaho 83676 Public
1 A 1056 North State Highway 32, Tetonia.
2 Q Yes, sir, go ahead.
3 A As a resident of this valley for all of my
4 life and having a phone for the last 25, 26 years through
5 various companies, the majority of our phone bill has
6 been long distance calls to what would include this
7 extended calling area. Virtually everything that we do
8 is based upon Rexburg and Idaho Falls calls. Up to this
9 point in time we have not had any services to the calls
10 that we call the most and, therefore, I would give
11 testimony that I am definitely in favor of instating this
12 calling service.
13 COMMISSIONER HANSEN: Thank you. Let's see
14 if we have any questions.
15 Being none, thank you for your testimony.
16 (The witness left the stand.)
17 COMMISSIONER HANSEN: We also have on that
18 same line Elaine Smith. Would you care to come forward?
19 I like the way you signed that, you'll get the last
20 word.
21 MRS. SMITH: He did a good job.
22
23
24
25
66
CSB REPORTING SMITH
Wilder, Idaho 83676 Public
1 ELAINE SMITH,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Elaine Smith,
6 S-m-i-t-h. I'm the other half of him, so that's why our
7 names were on the same line. I pretty well want to agree
8 with what he's already said. I'm for the extended
9 service calling area. I also have a sister in Montpelier
10 and we have in-laws that live in Rexburg and at this
11 present time we make several phone calls to Pocatello and
12 it would save us approximately 35 to $40.00 a month.
13 COMMISSIONER HANSEN: Thank you. Let's
14 see, do we have any questions?
15 Being none, thank you for your testimony.
16 (The witness left the stand.)
17 COMMISSIONER HANSEN: Patricia Schiess.
18
19 PATRICIA SCHIESS,
20 appearing as a public witness, having been first duly
21 sworn, testified as follows:
22
23 THE WITNESS: My name is Patricia Schiess,
24 S-c-h-i-e-s-s, 135 West 300 South in Driggs, and I am in
25 favor of the EAS. I work for a company that's a public
67
CSB REPORTING SCHIESS
Wilder, Idaho 83676 Public
1 transportation company here in the valley. We have two
2 phone lines in our office and at this time with the EAS
3 at the rate of the $42.00 a month, it would save us at
4 least $100 a month. We are a public-funded company, a
5 nonprofit company that works on grants, federal funding,
6 so it's public money that's keeping us going, so anything
7 that we can do to reduce those costs helps everybody and
8 it would save there, and like I say, at least a minimum.
9 We have satellite offices in Rexburg, our
10 parent company is in Idaho Falls. They do have an 800
11 line for some of the calls that we do, but we deal with
12 Greyhound in a lot of other areas and so we have a lot of
13 long distance calls that are in this area. 95 percent of
14 our calls are in the EAS area.
15 Personally, it would save us 30 to $40.00
16 at least a month on our own personal phone and I have a
17 daughter that's in school that we're helping support.
18 Her long distance phone bills in turn kind of are mine,
19 too, because we're helping support her, so it would save
20 us twice to have the EAS while she's in school for the
21 next year or two here.
22 If the rates go up and anything that's had
23 a freeze on it for three years, I don't care what kind of
24 business it is, when it comes off, rates go up. That's
25 just the way things work anymore and I'm sure the rates
68
CSB REPORTING SCHIESS
Wilder, Idaho 83676 Public
1 will probably go up and so I would rather pay the $24.00
2 a month as opposed to 22 plus long distance with the EAS
3 cost. That's all I have.
4 COMMISSIONER HANSEN: Let's see if we have
5 any questions.
6 Yes, Mr. McClure.
7 MR. McCLURE: Yes, Mr. Commissioner, I do
8 have a question.
9
10 CROSS-EXAMINATION
11
12 BY MR. McCLURE:
13 Q I'm not familiar with your business. Could
14 you tell me what your business is and what it does?
15 A We're a public transportation service that
16 serves Teton County, well, really all of southeastern
17 Idaho. Like I said, the parent company is out of
18 Idaho Falls. We run a bus service for this area. We
19 connect people with Idaho Falls, Jackson, Wyoming, so
20 they can hook up with Greyhounds, airports. We have
21 several buses that run here in this area that take care
22 of Head Start kids, senior citizens, people that need
23 rides to work, anybody that needs a ride is who we take
24 care of in this area, and then connecting, like I said,
25 we interconnect with the buses in Rexburg that take
69
CSB REPORTING SCHIESS (X)
Wilder, Idaho 83676 Public
1 people into Idaho Falls or into Swan Valley, it goes to
2 Jackson and it takes a lot of phone calls to connect
3 people from wherever they're coming to wherever they're
4 going. You know, they have to call to get those in.
5 COMMISSIONER HANSEN: Yes, Mr. Gallagher.
6 MR. GALLAGHER: In the 20 years I've known
7 the Schiess family, this is the most words I've heard out
8 of both of them.
9 THE WITNESS: Well, it's an important
10 issue. It would help me personally and a lot of other
11 people I know, too.
12 MR. GALLAGHER: Well done, Patricia.
13 COMMISSIONER HANSEN: Any other questions?
14 Thank you for your testimony.
15 THE WITNESS: Thank you.
16 (The witness left the stand.)
17 COMMISSIONER HANSEN: Allene Luke.
18 We'll probably go a couple, three more and then we'll
19 take a break. We've got quite a few left, so we'll move
20 right along.
21
22
23
24
25
70
CSB REPORTING SCHIESS (X)
Wilder, Idaho 83676 Public
1 ALLENE LUKE,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: Hi, I'm Allene Luke and it's
6 L-u-k-e. My address is 635 North 175 West, Tetonia, and
7 I am in favor of the extended calling service. I am from
8 Preston and we've had to put my mom into a resthome and I
9 hate to call when there's just nothing there, but I'd
10 love to be able to call on a daily basis to see how she
11 was doing and I have a lot of brothers and sisters that I
12 would love to keep in touch with, and both of our parents
13 are both in hospitals right now and it's hard to just say
14 which one are we calling tonight, we can't call both, and
15 I think it would be a very beneficial service to this
16 county if we could be able to call, so that's what I have
17 to say. I'm for it.
18 COMMISSIONER HANSEN: Thank you. Let's see
19 if we have any questions.
20 Thank you for your testimony.
21 (The witness left the stand.)
22 COMMISSIONER HANSEN: We now have Ronald
23 Berry.
24
25
71
CSB REPORTING LUKE
Wilder, Idaho 83676 Public
1 RONALD BERRY,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Ronald Berry. My
6 address is 115 South 3rd with I put down P.O. Box 191, I
7 think is what I put that at, Tetonia. I've been a
8 resident of Teton Valley for 38 years and my family has
9 lived in Teton Valley for a number of years. My
10 grandfather started the business and that's who I'm going
11 to represent tonight, too, is our business which is John
12 C. Berry and Sons, Incorporated, which we've been a
13 Chevron distributor for 55 years and we've been an EXXON
14 distributor now for almost a year, and we have four lines
15 coming into our business and to our houses.
16 A lot of times we get phone calls to our
17 houses that are related to business. I don't want you to
18 increase our rates at our personal residence because of
19 that. We receive probably 10 to 15 faxes per day in the
20 local area and that is people that are sending us faxes
21 and we fax anywhere from 10 to 15 faxes per day. We have
22 in our figures with what we would save, we would save
23 $310 a month with the extended service area and that's a
24 tremendous amount of savings. I'm not sure whether
25 anybody else here is going to be able to receive that
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Wilder, Idaho 83676 Public
1 kind of savings, but that's a tremendous amount of
2 money.
3 You asked the question if more businesses
4 would be able to call us and we would have more business
5 outside of this extended calling service area, yes, we
6 would. We're doing business with people in Idaho Falls,
7 Pocatello, Soda Springs, Lava Hot Springs, Rexburg,
8 almost every area in the service area, and we've tried to
9 improve our business so that we can do that and that's
10 one of the drawbacks that we have with our business is
11 that people don't like to call us because it's a long
12 distance phone call.
13 We've looked at trying to decide whether to
14 do an 800 number because of the expense of what our
15 customers are paying to call us. As our businesses
16 increase, we expect that this rate if it's left the way
17 it is right now that our business savings we could amount
18 to would probably be close to $500 a month with the
19 business that we've been picking up.
20 Another thing that I'd like to make mention
21 of is family calls. My wife's family is from the Rigby
22 area. Grandmother and grandfather live there. My
23 brother lives in Newdale, lots of family and a lot of
24 times that long distance, next best thing is being
25 there. This extended calling service area would be the
73
CSB REPORTING BERRY
Wilder, Idaho 83676 Public
1 next best thing to being there, and I'm speaking on
2 behalf of my wife Michele who couldn't be here because of
3 our kids. My father couldn't be here, my mother is in
4 the audience and as a result of the four of us, we are in
5 support of this extended service area because it could
6 save us a tremendous amount of money. We struggled for a
7 long time and within this last year we've had an
8 opportunity to increase our business and this will
9 increase our business more by doing this.
10 COMMISSIONER HANSEN: Let's see if we have
11 any questions.
12 Yes, Mr. Gallagher.
13
14 CROSS-EXAMINATION
15
16 BY MR. GALLAGHER:
17 Q Mr. Berry, when you do your taxes at the
18 end of year, is your phone bill considered part of your
19 business overhead, is that deducted off the top before
20 you pay taxes?
21 A No.
22 Q It's not?
23 A No.
24 MR. GALLAGHER: Interesting. Thank you.
25 COMMISSIONER HANSEN: Any other questions?
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CSB REPORTING BERRY (X)
Wilder, Idaho 83676 Public
1 Yes, Commissioner Smith.
2
3 EXAMINATION
4
5 BY COMMISSIONER SMITH:
6 Q Mr. Berry, if you save that much money a
7 month, does this mean the price of gas will go down in
8 Driggs?
9 A You know, if I could say this, maybe
10 Mr. Gallagher, he buys some oil from me once in awhile,
11 maybe the price of oil might go down, too, that's a good
12 possibility. Would everybody support that if I said
13 yes?
14 COMMISSIONER HANSEN: I've got to ask you a
15 tougher question than Commissioner Smith. Who talks the
16 longest to your relatives right now, you or your wife?
17 THE WITNESS: My wife.
18 COMMISSIONER HANSEN: Thank you.
19 THE WITNESS: She was on the phone with her
20 family last night --
21 COMMISSIONER HANSEN: Thank you for your
22 testimony.
23 (The witness left the stand.)
24 COMMISSIONER HANSEN: We'll now have Jackie
25 Riley.
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CSB REPORTING BERRY (Com)
Wilder, Idaho 83676 Public
1 JACKIE RILEY,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: It's Jackie Riley,
6 J-a-c-k-i-e R-i-l-e-y, P.O. Box 806, Driggs, Idaho,
7 83422. I am opposed to the EAS because I personally
8 cannot afford that extra $13.00 a month. I'm wondering
9 if there is a rate increase would it really increase 10
10 to $12.00. I mean, everything that I've ever read in the
11 paper, those kinds of increases have been shot down. You
12 know, I could be wrong, but I can't understand how
13 increases like that would be allowed to a consumer.
14 I see the need for this service to be an
15 option. Maybe down the road I'll have a home business or
16 some kind of business where it will benefit me, but right
17 now I make, $4.00 is my highest phone bill to Idaho Falls
18 and the surrounding area. I support a lot of the
19 businesses that would use this. We've used several
20 businesses, but I feel that right now it does not allow
21 me to pay for that increase.
22 It would scare me to death if our basic
23 phone bill would increase to $20.00 a month on a normal
24 basis and also in my letter to the papers, you know,
25 you're talking about these basic rates, but you're not
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Wilder, Idaho 83676 Public
1 talking about the taxes and all those other services you
2 have, so, like somebody had mentioned, you're still
3 talking $31.00 for an increase that would be your base
4 rate. You know, their base rate is something, but your
5 base rate would be a lot higher than what is stated at
6 the $24.10.
7 My calls go to Jackson and I know that
8 Silver Star is in Freedom, Wyoming, so if you went the
9 other way and included Jackson in this, I could probably
10 benefit a lot more from this. I do not call except for
11 when I need some kind of service call. I do not call
12 Idaho Falls or that area. I have no family. You know,
13 my family is on the East Coast and the West Coast or
14 Colorado, so that would not benefit me.
15 The Universal Service Fund, I thought we
16 already paid an increase on that. There was something in
17 the mail, I don't know if I understood the entire thing,
18 but something was going up by 30 or $.40 to go towards
19 the Universal Service Fund, so I thought we were already
20 paying in that.
21 You know, I think it should be an optional
22 thing. It would definitely benefit a lot of people, but
23 it would disbenefit, I don't know if that's a word or
24 not, a whole population of other people, so I am against
25 it in that sense. I also have to agree with earlier
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1 testimony that we have not been informed in a timely
2 manner. I was told by the PUC that a decision was made
3 on February 27th, Teton Telecom sent a letter out on
4 March 10th and the period ending public comment was on
5 the 21st which was a Saturday, of course, of March and
6 that did not really allow enough time for people to get
7 involved and know what was going on.
8 I remember reading something about the
9 November meeting, but after that I never heard another
10 word. I would have liked to have been more involved in
11 what was going on. I works nights, so I just happened to
12 not have to work tonight, so I was able to come. The
13 newsletter was printed and sent out stating one thing, it
14 was never retracted on the little messages that are sent
15 on the phone bills, which I thought was pretty shabby. I
16 particularly looked for that when it came time when --
17 after I made the call to Teton Telecom and they told me
18 about this meeting; otherwise, I never would have known
19 about this meeting. I would have just thought that it
20 had gone through, and I was involved with instigating
21 this new meeting because I wanted to know more and I
22 still haven't learned any of the details. I do feel for
23 each side and I stick by my side.
24 COMMISSIONER HANSEN: Thank you.
25 Do we have any questions?
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Wilder, Idaho 83676 Public
1 Yes, Mr. Gallagher.
2
3 CROSS-EXAMINATION
4
5 BY MR. GALLAGHER:
6 Q Would you like to be better informed in the
7 future?
8 A I would and I would like it to be in a
9 timely fashion where we can respond in a timely fashion.
10 We do work during the day, so we can't always get to the
11 phone on things. I still would like to know how these
12 calls came about and I would like to know what is the
13 likelihood of a rate increase of $10.00 actually going
14 through. You know, I might have to option for the EAS if
15 it came down to that, but, I mean, most increases that
16 happen come in small increments.
17 After the freeze or, you know, a year down
18 the road, who says that the EAS rate won't go up an
19 astronomical amount. I mean, I have lots of questions
20 and lots of confusion about what I would really feel if
21 the rate actually did go up to what they've said.
22 COMMISSIONER HANSEN: Any other questions?
23 Yes, Commissioner Smith
24
25
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CSB REPORTING RILEY (X)
Wilder, Idaho 83676 Public
1 EXAMINATION
2
3 BY COMMISSIONER SMITH:
4 Q I was just curious, Ms. Riley, do you do a
5 lot of local calling in the valley?
6 A I do call Victor, Driggs, occasionally
7 Tetonia. Most of my calls, I work in Jackson and most of
8 my calls that are work-related are to Jackson, but
9 otherwise, I don't -- I make my personal calls to
10 friends.
11 Q Would you estimate that that's more than
12 four hours a month?
13 A Probably, because I do work quite a bit, so
14 the phone is my access since I can't get together with
15 people.
16 COMMISSIONER SMITH: Okay. Thank you.
17 COMMISSIONER HANSEN: Thank you for your
18 testimony.
19 (The witness left the stand.)
20 COMMISSIONER HANSEN: Pauli Shields.
21
22
23
24
25
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CSB REPORTING RILEY (Com)
Wilder, Idaho 83676 Public
1 PAULI SHIELDS,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: It's Pauli Shields,
6 S-h-i-e-l-d-s. I'm opposed to the EAS because it's not
7 optional. It doesn't benefit me in any way. I don't
8 understand why I have to subsidize businesses. The local
9 businesses get my business. I don't do business in Idaho
10 Falls. I don't do business outside of Driggs. I try and
11 keep my money in the valley. My husband and I are on a
12 fixed income. The cost increase, we already had a cost
13 increase when Teton Telecom bought us out or whatever
14 they did from U S WEST and we had no option, we had no
15 say.
16 My bill went up approximately $8.00 and I
17 had nothing to say about that at that time. When this
18 was first suggested, it sounded like it was going to be
19 maybe $5.00. Well, maybe $5.00 so that everybody can
20 benefit by it is cool. When people started talking 20,
21 $21.00, now up to $24.00, that's unreasonable for me. I
22 will give up my phone.
23 Right now Teton Telecom is offering
24 Internet service, which by the way I'm on the Internet
25 service of Teton Valley Net through Hugh Shane, and I pay
81
CSB REPORTING SHIELDS
Wilder, Idaho 83676 Public
1 him more than Teton Telecom just offered Internet
2 service. They're offering Internet service for the
3 individual for no limit of time at 18.95. At that rate,
4 I could talk to -- all of my family members are outside
5 of this calling area, so I could talk to them on your
6 18.95 by E-mail. I don't need the telephone.
7 I think that it's cheap and sleazy that a
8 huge company can come into a small town like this and
9 undercut the prices because it is a big corporation of
10 the little guys who are trying to make it. I appreciate
11 having an Internet service. I do appreciate having the
12 choice of who I go with with that Internet service and it
13 wouldn't necessarily be the big guy because I'm kind of
14 paranoid.
15 I'm also concerned, we're talking about
16 this rate increase after the freeze. Well, don't ask me
17 if I want to pay $22.00 now or $24.10 because I believe
18 after the freeze it's going to go up anyway, so it's not
19 going to be a question of 24.10, it's going to be a
20 question of 26.30, plus all of the other taxes and the
21 various other costs that we get tagged with anyway, it's
22 going to be in the neighborhood of $35.00 after the March
23 freeze.
24 I believe that the 24.10 is an extortion
25 because the $16.00 for the 90 minutes, I have a few
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CSB REPORTING SHIELDS
Wilder, Idaho 83676 Public
1 friends in the valley and within my few friends, I would
2 eat up my 90 minutes in three days and so it's going to
3 cost me an arm and a leg to talk to people here in the
4 valley or I'm going to have to go out and visit. My
5 point that I want to make is that I think it should be
6 optional.
7 I also think it would be nice if people
8 paid attention to you when you were talking. It should
9 be optional. We shouldn't have to subsidize everybody
10 and the people who -- I think it's wonderful for the
11 people who will benefit by it, but I'm not one of them.
12 Thank you.
13 COMMISSIONER HANSEN: Let's see if we have
14 any questions.
15 Being none, thank you for your testimony.
16 (The witness left the stand.)
17 COMMISSIONER HANSEN: We really appreciate
18 all of you that have testified here so far this evening.
19 It's very beneficial to us. I appreciate you people in
20 the audience respecting their views. We're going to take
21 a break right now. We have about 30 more signed up. I'd
22 encourage you to come back. We're here, we want to hear
23 from you. We'll take a ten-minute break and then we'll
24 come back and we'll start with Steve Hochstrasser, I
25 believe that's how you pronounce that, I hope.
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CSB REPORTING SHIELDS
Wilder, Idaho 83676 Public
1 (Recess.)
2 COMMISSIONER HANSEN: Steve Hochstrasser.
3
4 STEVE HOCHSTRASSER,
5 appearing as a public witness, having been first duly
6 sworn, testified as follows:
7
8 COMMISSIONER SMITH: State your name.
9 THE WITNESS: Steve Hochstrasser,
10 H-o-c-h-s-t-r-a-s-s-e-r. First of all, I'd like to say
11 that I empathize with those of you who have businesses or
12 relatives that you need to call that would be served well
13 by this extended area calling service. I certainly feel
14 for you and I hope you get it, but personally, my
15 household would not benefit from this and I would like to
16 express that I don't support it at this time.
17 I think our best option would be to either
18 vote on it and try and get it as an added service as
19 someone mentioned earlier. The option that's currently
20 being proposed would not suit my family because I have
21 three children that get on the phone for hours and, you
22 know, it doesn't work for me. If the rates continue to
23 increase, I will have to investigate further the cellular
24 compatibility of whether or not that's going to meet my
25 financial needs better.
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CSB REPORTING HOCHSTRASSER
Wilder, Idaho 83676 Public
1 Mr. Flaherty and Mr. McCoy were quite
2 eloquent in the way that they expressed themselves, but
3 some of you that talk about calling your relatives that
4 are away or sick, what about us who have relatives that
5 are sick or further away that we have to use that money
6 for long distance that we would be subsidizing, you know,
7 we'd have to funnel those funds into paying for our local
8 service rather than being able to use those funds and
9 call our relatives that are out of state, so that's one
10 point I wanted to bring out.
11 With respect to the local business, whether
12 or not our people would be able to get more business, I
13 tend to believe that some of the business would leave the
14 area because they would have the ability to call and shop
15 around for things that's offered in this valley and get
16 it cheaper outside this valley, like, for instance, if I
17 wanted to buy a bike from a local business, I might find
18 it cheaper in Pocatello or Idaho Falls by just calling
19 out there, which certainly that, you know, would offset
20 some of what I'm paying, but as it sits right now, I'm
21 not in favor of it and I don't see that it would serve my
22 family.
23 Thank you.
24 COMMISSIONER HANSEN: Thank you.
25 Do we have any questions?
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CSB REPORTING HOCHSTRASSER
Wilder, Idaho 83676 Public
1 Yes, Commissioner Smith.
2 COMMISSIONER SMITH: Just one comment. I
3 guess that's why I brought the question up because the
4 common wisdom always has been that a small community
5 would suffer when given EAS to a wider community because
6 people would shop out and that would be to the detriment
7 of local businesses, but the actual experience that we've
8 had has been just the opposite which was a surprise to
9 me.
10 THE WITNESS: In 100 percent of the cases?
11 COMMISSIONER SMITH: Well, yes, in the
12 cases that we've seen and so the common wisdom didn't
13 prove out and it was a surprise to me is why I mention
14 it.
15 THE WITNESS: That would remain to be seen.
16 COMMISSIONER HANSEN: Thank you for your
17 testimony.
18 (The witness left the stand.)
19 COMMISSIONER HANSEN: I might mention,
20 ladies and gentlemen, we have about 30 more to testify
21 and if you -- and we want you to feel free to give your
22 reasons why you're for or against, but if you can make
23 them brief, I'm sure that will help some of those who are
24 waiting in line.
25 We'll now have Toni Hill.
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CSB REPORTING HOCHSTRASSER
Wilder, Idaho 83676 Public
1 TONI HILL,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: I'm Toni Hill, H-i-l-l. I
6 live at 178 South 600 West, Driggs, Idaho, and I think
7 maybe the people here would appreciate it if they could
8 just have the information and have been or could be a
9 vote in their phone bill, then whether when they get it
10 or they don't get, it's just the American way, that you
11 all get a say, but I personally would like the extended
12 coverage.
13 I've lived in Idaho for 36 years and I've
14 gotten to know a lot of people in Swan Valley as well as
15 out below and I have daughters in Hagerman and American
16 Falls and they both have extended coverage in their
17 area. Even if they don't have relatives in the area,
18 they feel they're saving money. They just really enjoy
19 being able to call wherever they want without all the
20 long distance calls and I feel the same, that as far as
21 friends, business, relatives, it would all help.
22 I feel that if any of my friends choose it,
23 they can only afford the 90 minutes a month or anybody
24 else that would call me if they just said, I'm sorry, I
25 can't afford to talk over a minute, call me back, I would
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CSB REPORTING HILL
Wilder, Idaho 83676 Public
1 call them back. I mean, it seems like people don't have
2 to do all the calling and let their friends that have the
3 better coverage call them.
4 Anyway, I would like you to respect the 500
5 people who petitioned for this. I have two sons, Tom
6 Hill and Harley Hill, that they feel it would help them,
7 also, financially to have the calling service, but none
8 of us three were on this petition. I think that is
9 probably everything I have to say.
10 COMMISSIONER HANSEN: Okay, thank you.
11 Do we have any questions?
12 Yes, Mr. Gallagher.
13
14 CROSS-EXAMINATION
15
16 BY MR. GALLAGHER:
17 Q Ms. Hill, did you say you would like to see
18 this issue put on a ballot?
19 A I think that people would be happier with
20 it and it would have saved a lot of people a lot of time
21 if we could have had the information or still could so
22 that people could make an educated decision and then if
23 it could just come with our phone bill and when you paid
24 your phone bill, you say which way you wanted it. I
25 think there wouldn't be all this tension of people
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CSB REPORTING HILL (X)
Wilder, Idaho 83676 Public
1 feeling that somebody is subsidizing somebody else.
2 Whether it works or it doesn't, they at least would have
3 a say which is the American way.
4 MR. GALLAGHER: Thank you.
5 COMMISSIONER HANSEN: Any other questions?
6 Thank you for your testimony.
7 (The witness left the stand.)
8 COMMISSIONER HANSEN: Stacy Stewart.
9
10 STACY STEWART,
11 appearing as a public witness, having been first duly
12 sworn, testified as follows:
13
14 THE WITNESS: My name is Stacy Stewart,
15 S-t-e-w-a-r-t. I live at P.O. Box 708, Driggs, Idaho,
16 83422. A couple of things. First of all,
17 Commissioner Hansen, you were incorrect when you opened
18 up and I want to correct that. You spoke about having
19 people stand up to 6 or $7.00, even a $10.00 increase if
20 they were in favor of it, it was actually 13 to $15.00 an
21 hour -- I'm sorry, 13 to $15.00 a month and there was
22 more than half of the congregation or audience standing
23 at that time which filled this entire section
24 [indicating] and they were still standing at $15.00.
25 At that time I handed in 130 letters that I
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CSB REPORTING STEWART
Wilder, Idaho 83676 Public
1 hope will be considered and the evidence that was given
2 and the testimonies that were given, you mentioned the
3 number of 500 in favor of or over 500, I hope that those
4 are going to be considered, also. We live in a community
5 where this time of year it's awful hard to get people to
6 come out. They're busy, they're out there working in the
7 fields and doing the things they need to do and they felt
8 like they've already given their opinion.
9 I represent a business here in Driggs. We
10 have four business lines and the savings to me because of
11 faxes that we utilize between my office and our title
12 office in Rexburg where our title plant is located is a
13 tremendous amount of faxes a day every day that we have
14 to utilize. The savings to my business after considering
15 the increase to the business lines would be somewhere
16 around 3 to $400 a month in the business end.
17 There was some talk tonight about 800
18 numbers. Most the people that I know in the Upper Snake
19 River Valley that's had 800 numbers are getting rid of
20 them because of the expanded area service out there.
21 They don't need to keep them anymore. They feel like
22 basically Teton Valley will be the only place that would
23 use that service with the exception of a few.
24 I'm glad to see that there's a plan for the
25 fixed income. I mentioned that earlier in a comment in
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CSB REPORTING STEWART
Wilder, Idaho 83676 Public
1 the letter, that was one of my concerns when we first
2 started this hearing and I feel like that plan is in
3 place to support those who are truly in need and can
4 apply for that.
5 Again, mention the school district. We
6 have people living within the School District 401 who
7 it's a long distance phone call for them to call the
8 school. They have children in this high school and it's
9 a long distance phone call for them to call here. If
10 there's an emergency at home, if that child has a problem
11 and misses a bus, can't get back out there, they have to
12 call long distance to find out about that.
13 There's been mention and I think there will
14 be further testimony from some coming up about medical
15 problems that are in the Upper Snake River Valley. Many
16 of our people are transferred to Columbia Eastern Idaho
17 Regional Medical Center as well as Madison Memorial.
18 They elect to have services there as well as in senior
19 citizens' homes, long-term care facilities for the
20 elderly. Those areas, right now we have people who are
21 being serviced through chemotherapy, radiation that have
22 to go out daily, some of them. Some of them travel two
23 or three times a week to Idaho Falls. There's calling to
24 make appointment changes, consultations with their
25 physicians, those types of things and it's costing a
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CSB REPORTING STEWART
Wilder, Idaho 83676 Public
1 tremendous amount of money to them.
2 On a personal basis, it would save me about
3 40 to $50.00 a month on my personal residence. I'm a
4 little confused, there's been a lot of talk about
5 majority voting and stealing and freedoms and choices.
6 These public hearings are our opportunity. Granted, a
7 vote would be great, that would be fine, but I had my
8 opportunity to vote. I'm here tonight, I was here at the
9 other hearing. The other hearing was publicized in the
10 papers. There was plenty of information put out about
11 the hearings at that time and I think that we as adults
12 need to find out as much information as we can we.
13 Granted, we don't find out all of it, but we have the
14 opportunity to go find out that information.
15 Personally, myself, I'm satisfied with the
16 information. I've been able to find out that it would be
17 a savings and a benefit, so I don't understand the
18 freedom and the choice because we have freedom and we
19 have the choice and we're here tonight to do that whether
20 we're for it or against it.
21 There's been a lot of talk about numbers
22 thrown out here tonight. The numbers are confusing when
23 you start saying 31, 32, 35, 27, 26. My understanding is
24 that it is approximately an increase on the residence of
25 $13.00, just under $13.00, a month and a lot of people
92
CSB REPORTING STEWART
Wilder, Idaho 83676 Public
1 are under a misconception that have talked to me.
2 They're saying my bill will go up 30-$31.00 a month. No,
3 it won't. You're already paying between 17 to 19 for the
4 base rate, so there is an increase there, granted, but
5 there's a lot of misinformation out there.
6 That pretty well addresses it. There's
7 been talk about cell phones. I've looked into that. I'm
8 not sure that the savings is all that great in the local
9 services that we have here. I'm not sure on that.
10 Internet services have been talked about and addressed.
11 You know, expanded area service is going to allow a lot
12 of options out there and some of that will benefit some
13 people and it won't benefit others and that's the way it
14 is and that's unfortunate, I guess, on one end if you're
15 on the receiving end of the fees, but if you're on the
16 paying end of the fees, choice can be pretty nice.
17 I believe that's all, so I would just like
18 to say that I'm in favor of it.
19 COMMISSIONER HANSEN: Let's see if we have
20 any questions.
21 Yes, Mr. Gallagher.
22
23
24
25
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CSB REPORTING STEWART
Wilder, Idaho 83676 Public
1 CROSS-EXAMINATION
2
3 BY MR. GALLAGHER:
4 Q Two, Mr. Stewart. First is you would be in
5 favor of a ballot, ballot vote?
6 A Yes, I would be in favor of a ballot vote.
7 Q And secondly, do you have a rough idea, not
8 as an expert but just a rough idea, of the number of
9 people that have been at these two meetings versus the
10 number of people that have telephones in Teton Valley?
11 A No, but I know that they had a choice they
12 could make to come or not. At the last meeting I believe
13 there was approximately 275 by my count, that's
14 personally, that was here with 150 to 180 letters turned
15 in that night. Tonight I'm not sure how many people are
16 here, but they all had a choice. I also have two letters
17 of people who could not stay that they signed in favor of
18 the EAS they wanted me to present.
19 COMMISSIONER HANSEN: Any other questions?
20 I have one.
21
22
23
24
25
94
CSB REPORTING STEWART (X)
Wilder, Idaho 83676 Public
1 EXAMINATION
2
3 BY COMMISSIONER HANSEN:
4 Q Did I hear you correctly, you said you
5 delivered 130 letters the last time you were here?
6 A Approximately 130 letters in favor of EAS
7 the last time.
8 Q Do you think those people realize that the
9 rate now would be $24.10, whereas before when you got
10 those letters they probably didn't know for sure whether
11 it was going to be $5.00 or what the rate be, do you
12 think they're aware now that it's $24.10?
13 A At the last time we had a hearing we were
14 talking around 6 to $7.00 increase, somewhere in that
15 area, we didn't know. As those letters were gathered, we
16 talked to the people and told them that there's no way we
17 have of knowing, that that was an estimated guess of
18 approximately what it could be, and at the same time, it
19 was presented it could go more.
20 The people I have talked to on those
21 letters and that have talked to me and I think the
22 representation here tonight have said they don't care if
23 it's 15 to $18.00 a month, it would still be a benefit to
24 them and I believe that the majority of those letters
25 would definitely still be in favor of it based on the
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1 people I've talked to.
2 Q A follow-up, how come you had that many
3 people give you, make you available to their wishes by
4 giving you a letter? I mean, did you go out and solicit
5 their response or did they just happen to ask you to take
6 the letter or bring the letter to the hearing or what,
7 can you tell me?
8 A Yes, I could. We approached many people
9 and asked them if they would be in favor of this service.
10 We explained to them the information that we had at that
11 time and told them they could contact Teton Telecom if
12 they wanted to review their personal phone bills and any
13 information that they could gain from them. They've been
14 very cooperative in providing information to myself,
15 especially and, you know, to me they understood exactly
16 what they were doing, but we were soliciting, asking them
17 if you are in favor of it, would you be willing to sign a
18 letter and if you're against it, you can also sign a
19 letter and the people that turned the letters in to me
20 and asked me to bring them that night were all in favor
21 of it and the hearing that night, what, there was two or
22 three people against and the rest in favor.
23 COMMISSIONER HANSEN: Okay, thank you.
24 (The witness left the stand.)
25 COMMISSIONER HANSEN: Bill Moulton.
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1 BILL MOULTON,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Bill Moulton,
6 M-o-u-l-t-o-n, Box 491, Driggs. I am a CPA, farmer,
7 father and child. All of those are pertinent to the
8 issue of whether or not I would be willing to increase my
9 phone bill. I currently have four phones, three
10 residential and one business. I would be very happy to
11 increase my phone bill. My base rate is $12.00. It
12 would be a savings of 40 to $50.00 per month for me.
13 As a CPA, I have several, well, probably 50
14 or 60 clients that live in the extended area service and
15 almost every contact I make with them constitutes at
16 least one phone call out and one phone call in and it
17 would be a profound help in that regard.
18 It would also help with family. I have a
19 son living in Pocatello who's kind of a techno geek and
20 one of his friends has available a very high speed ISP
21 for the Internet and he is waiting with anticipation of
22 being able to come into this market because then it would
23 be a local call.
24 One thing that I don't think we've heard
25 testimony of here tonight is that for almost every phone
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CSB REPORTING MOULTON
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1 call that goes out of this calling area there is an
2 incoming call from the extended area service and that,
3 too, probably has an impact on us.
4 As to address the question of whether or
5 not it would help business in Teton Valley, I think it
6 would dramatically help the businesses of Teton Valley,
7 particularly from areas of Ashton and Saint Anthony,
8 because those areas are not serviced by a lot of the
9 services that are provided here in Teton County. They
10 don't have, particularly Ashton doesn't have, the same
11 kind of health care that we have here.
12 To my knowledge, there are no
13 professionals, either legal or CPAs or others, and I have
14 quite a few clients from those areas that come this
15 direction and I think it would amaze us what the benefits
16 would be for business in Teton Valley to have phone calls
17 of a local nature from outside the area.
18 That's all my testimony.
19 COMMISSIONER SMITH: Let's see if there are
20 any questions.
21 Yes, Mr. Gallagher.
22
23
24
25
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1 CROSS-EXAMINATION
2
3 BY MR. GALLAGHER:
4 Q Mr. Moulton, this is a small aside, I hope
5 that's okay, you're a CPA?
6 A Correct.
7 Q In your experience, are business telephone
8 calls considered overhead for business and deductible?
9 A I think that's a ludicrous question. You
10 know the answer is yes. I don't know what you're trying
11 to set me up for.
12 Q That was it. It was just that honest, it
13 really was.
14 A I think we all know that and does it make
15 any great impact on the tax return? Not much.
16 COMMISSIONER SMITH: Other questions. No?
17 Thank you very much, Mr. Moulton, for your
18 testimony.
19 (The witness left the stand.)
20 COMMISSIONER SMITH: Next we have Gary
21 Grandy.
22
23
24
25
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CSB REPORTING MOULTON (X)
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1 GARY GRANDY,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Gary Grandy,
6 G-r-a-n-d-y. I live at 1076 South 100 West, Victor,
7 Idaho, 83455. I'm in favor of the extended area service,
8 the EAS. This was a request by 400 people, apparently,
9 from the valley. My concern is that the rates were set,
10 though, higher than they should be by Teton Telecom. I
11 think this is a travesty and I'm concerned as to whether
12 the Idaho Public Utilities Commission received budgets
13 and data and information that allowed them to say yes,
14 this rate of $24.00 was appropriate.
15 I think it is also unfortunate that there
16 has not been an explanation of the low income credit. If
17 that's based on the national poverty levels which are
18 published by the federal government, those are
19 available. I don't know what that's based on. I suspect
20 that it is on that. If it is, then I would also suspect
21 that the majority of the elderly people that really have
22 concerns about this increase would be eligible for the
23 $10.50 credit and I think that that information should be
24 put forth to the public.
25 It was mentioned by Mr. Hoopes this evening
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CSB REPORTING GRANDY
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1 that they were spending one million dollars in this area,
2 but there was no mention as to what the revenues are
3 generated at the present time or will be generated and,
4 therefore, it's hard to know whether they're making money
5 or losing money. I know that most public utilities in
6 this country do make money, be it GTE, AT&T, U S WEST,
7 and if Teton Telecom is not making money, then they
8 should not be in the business.
9 I have in front of me a letter of
10 November 29th, 1996, when Montpelier, Idaho, and Preston,
11 Idaho, had hearings on this same matter and the proposed
12 increase was $5.51 for residential. Their current price
13 at that time was 10.17 and went to 15.68. The business
14 was at 26.16 and went up $5.00 to 31.24, so even though I
15 do support the EAS, I'm very concerned as to whether the
16 Idaho Public Utilities Commission has carefully
17 considered all of the dollar figures in setting this rate
18 and allowing it to be set at $24.00 and $42.00 and
19 whether the credit, tax credits have been properly
20 evaluated.
21 In the Teton Telecom statement of reasons
22 supporting the extended service area, they talk about the
23 $16.00 per month, but there was no mention about the $.03
24 for every minute after, what was it, 90 minutes or
25 something. I think that's putting out information that's
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1 incorrect and I had to read about that in the newspaper
2 to learn about the $.03, so I hope that the Public
3 Utilities Commission will step back and make the right
4 decision, but that they evaluate the rates that have been
5 presented to them by this public utilities company, Teton
6 Telecom, because I think the people of this area deserve
7 an extended area.
8 It's a great world out there, folks, and
9 it's growing large and all of eastern Idaho and southern
10 Idaho needs to be in one area. I have family in Bear
11 Lake and I have family in Pocatello and I'm on a limited
12 income now, but I'm still in favor of it.
13 Thank you very much.
14 COMMISSIONER HANSEN: Thank you.
15 Let's see, do we have any questions?
16 Mr. Howell.
17
18 CROSS-EXAMINATION
19
20 BY MR. HOWELL:
21 Q Mr. Grandy, maybe I can just by way of a
22 question answer one of your questions. The Idaho
23 Legislature in late March authorized the new $10.50
24 credit for low income people. The Department of Health
25 and Welfare has to set the income level rate and they
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CSB REPORTING GRANDY (X)
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1 have not set the income level rate and we don't know what
2 that income level rate will be, and we heard earlier
3 tonight that you don't have to be on welfare to be
4 eligible. We simply -- no one knows at this time what
5 that income rate will be. If we did, we would certainly
6 tell it to you.
7 The other reason, the other thing I might
8 add is the difference between when U S WEST does EAS and
9 when Teton does EAS, Teton recovers those costs from
10 3,000 customers and U S WEST recovers those costs from
11 350,000 customers.
12 A I understand and may I make one suggestion
13 and that would be that you consider that the people who
14 are on social security, if they do not have other income
15 over a certain amount, 5,000 or whatever, would be
16 eligible for the 10.50 credit. Thank you.
17 MR. HOWELL: And I would urge any
18 individual when those rules are promulgated by the
19 Department of Health and Welfare to let them know your
20 feelings.
21 COMMISSIONER HANSEN: Do we have any other
22 questions?
23 Thank you for your testimony.
24 (The witness left the stand.)
25 COMMISSIONER HANSEN: We have Bertha
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1 Gillette.
2
3 BERTHA GILLETTE,
4 appearing as a public witness, having been first duly
5 sworn, testified as follows:
6
7 THE WITNESS: My only concern is and I
8 don't believe --
9 MR. HOWELL: Ma'am, I need your name and
10 address for the record.
11 THE WITNESS: My name is Bertha Gillette,
12 G-i-l-l-e-t-t-e, and I live in Victor, Idaho,
13 P.O. Box 107, 83455. Now, my only concern is, and I
14 don't know that it's really been answered in the way I
15 would like it answered and LeAnn Bolton-Lewis asked the
16 same thing and I asked her if she was satisfied and she
17 said no, I'm not, and that is concerning why do we have
18 to have this 90 minutes put on to our local calls. If we
19 have a family, which I don't with children, but somebody
20 else mentioned this, if you have a lot of children or if
21 there are even grown-ups in the home and it's necessary
22 to use that phone more than that 90 minutes, that's only
23 an hour-and-a-half a month, and I take care of, at least
24 I call, four elderly individuals each day to check on
25 them and see how they're doing.
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CSB REPORTING GILLETTE
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1 Sometimes I have to bring them to the
2 doctor, I have to get their medication, I have to get
3 their groceries and this is a concern of mine is how I'm
4 going to do all of this and still help take care of those
5 elderly people. I know some time it's going to be my
6 time soon and so I don't know who will be looking after
7 me, but anyway, I do feel that this 90 minutes is a
8 disgrace to us. Why do we have to have that 90 minutes?
9 Why do we have to have that extra money?
10 COMMISSIONER HANSEN: Is that your
11 statement?
12 THE WITNESS: Yes.
13 COMMISSIONER HANSEN: Okay, do we have any
14 questions?
15 Mr. McClure.
16
17 CROSS-EXAMINATION
18
19 BY MR. McCLURE:
20 Q Ma'am, do you understand that you have two
21 choices should this extended area service be approved by
22 the Commission? The first choice would be for $24.10 a
23 month, you would have the right to make an unlimited
24 number of minutes of calls. You could stay on the phone
25 all day long. If, however, you wanted a lower phone
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CSB REPORTING GILLETTE (X)
Wilder, Idaho 83676 Public
1 bill, you could choose a different option for $16.00 a
2 month for 90 minutes plus $.03 for each minute after
3 that, so you as a consumer would be able to choose which
4 plan to have, if you want an unlimited calling plan or if
5 you want a cheaper plan for lower use. I don't know if
6 you understood that, but I'll make a question, do you?
7 A Well, I don't understand it and I really
8 don't know how I would come to that conclusion until I
9 would see my phone bill each month.
10 COMMISSIONER HANSEN: Mr. McClure?
11 MR. McCLURE: If I can answer her.
12 Q BY MR. McCLURE: You would have a choice,
13 you would have an option, to choose one or the other, so
14 it would be up to you.
15 A How would I know which option? Would I
16 have a letter sent to me to let me know or what?
17 Q Yes, ma'am.
18 A Okay, thank you.
19 COMMISSIONER HANSEN: Are there any other
20 questions?
21 Yes, Mr. Gallagher.
22
23
24
25
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Wilder, Idaho 83676 Public
1 CROSS-EXAMINATION
2
3 BY MR. GALLAGHER:
4 Q Ms. Gillette, is maybe a different way to
5 say what you've been asking that you would rather see an
6 option that gave you unlimited in the valley local
7 calling to help you with these elderly women?
8 A Yes, I would feel that, so maybe if I don't
9 understand it, I can ask Mr. Gallagher and he can help
10 me.
11 COMMISSIONER HANSEN: Any other questions?
12 Thank you for your testimony.
13 THE WITNESS: Thank you.
14 (The witness left the stand.)
15 COMMISSIONER HANSEN: We now have Veronica
16 Fullmer.
17
18 VERONICA FULLMER,
19 appearing as a public witness, having been first duly
20 sworn, testified as follows:
21
22 THE WITNESS: My name is Veronica Fullmer,
23 F-u-l-l-m-e-r. My address is P.O. Box 148, Driggs,
24 Idaho. I would like to go on record as being very much
25 in favor of this area. I have several children that live
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CSB REPORTING FULLMER
Wilder, Idaho 83676 Public
1 in the lower valley and my mother as well who is
2 elderly. It would benefit me greatly to be able to call
3 them more than I am at this point. It would also benefit
4 them to be able to call me. It's long distance for them
5 to call me.
6 I won't say much more. My husband and I
7 have a farm. In the summer we have to call out almost
8 daily for different things, for parts and things, and it
9 would benefit us greatly to have this EAS area and I'm
10 very much in favor of it.
11 COMMISSIONER SMITH: Are there any
12 questions?
13 No? We thank you very much for your
14 testimony.
15 (The witness left the stand.)
16 COMMISSIONER SMITH: Delva Jones.
17
18 DELVA BURGENER,
19 appearing as a public witness, having been first duly
20 sworn, testified as follows:
21
22 THE WITNESS: It's actually Delva Burgener,
23 B-u-r-g-e-n-e-r, and I just want to say I'm definitely in
24 favor of it. I'll keep it short and sweet. That's it.
25 COMMISSIONER SMITH: Are there any
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CSB REPORTING BURGENER
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1 questions?
2 MR. HOWELL: I need your address.
3 THE WITNESS: Oh, it's Post Office
4 Box 1145, Driggs, sorry.
5 COMMISSIONER SMITH: We thank you very much
6 for coming tonight.
7 (The witness left the stand.)
8 COMMISSIONER SMITH: Chuck Irwin. Maybe he
9 had to leave.
10 Marlene Hansen.
11
12 MARLENE HANSEN,
13 appearing as a public witness, having been first duly
14 sworn, testified as follows:
15
16 THE WITNESS: Marlene Hansen, H-a-n-s-e-n,
17 618 North 50 West, Tetonia, Idaho, and I'll keep it short
18 and sweet, too. I'm in favor of it and thank you.
19 COMMISSIONER SMITH: Are there any
20 questions?
21 No? Thank you very much.
22 (The witness left the stand.)
23 COMMISSIONER SMITH: Toni Hill. We did
24 her?
25 Bob Pfaltz. Did I come close?
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1 MR. PFALTZ: It was close.
2
3 BOB PFALTZ,
4 appearing as a public witness, having been first duly
5 sworn, testified as follows:
6
7 THE WITNESS: My name is Bob Pfaltz.
8 That's B-o-b P-f-a-l-t-z. I wanted to state that --
9 COMMISSIONER SMITH: Mr. Pfaltz, we need
10 your address, too.
11 THE WITNESS: Oh, P.O. Box 279, Driggs,
12 Idaho. I want to state that I'm unwilling to pay for the
13 EAS and I had a question for the Commissioners and that
14 is, is the IPUC in favor of Teton Telecom having this
15 EAS?
16 COMMISSIONER SMITH: Well, since we've
17 issued an order granting it, I think that was the
18 decision that we made based on the testimony and the
19 petitions that were presented to us earlier.
20 THE WITNESS: Why are they in favor of it?
21 COMMISSIONER SMITH: Mr. Howell, could you
22 get him a copy of our Order?
23 THE WITNESS: Briefly, could you --
24 COMMISSIONER SMITH: No, I don't think
25 we're going to take time to read the Order tonight, but
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1 the Commission makes, all of its decisions are expressed
2 in a written order, so Mr. Howell can get you a copy of
3 the Order and you can read that and then if you have
4 questions, you can call. I think that's the most
5 efficient way to handle that.
6 THE WITNESS: Is it going to be a toll
7 call?
8 COMMISSIONER SMITH: We have an 800 number.
9 Are there any questions?
10 Thank you very much.
11 (The witness left the stand.)
12 COMMISSIONER SMITH: Diane Hawkins.
13
14 DIANE HAWKINS,
15 appearing as a public witness, having been first duly
16 sworn, testified as follows:
17
18 THE WITNESS: My name is Diane Hawkins,
19 H-a-w-k-i-n-s, 944 South Highway 31, Victor. I just want
20 to state in behalf of myself and my brother who wanted to
21 be here who owns a business in Victor, my parents of whom
22 I'm a part of owns a business in Victor and who I take
23 care of their financial situation while they're currently
24 in the Philippines for the next 15 months, we are
25 definitely in favor of EAS.
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CSB REPORTING HAWKINS
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1 It would be a great savings to their
2 businesses and just in my residential, it would be a
3 great savings to us, also. I also feel like as much they
4 use, have people call them and they call out, I think it
5 would increase maybe not my brother's business who owns
6 the gas station in Victor, but my parents' business who
7 have a taxidermy shop in Victor, it would increase their
8 business, I have no question of that.
9 COMMISSIONER SMITH: Are there any
10 questions?
11 Mr. Gallagher.
12
13 CROSS-EXAMINATION
14
15 BY MR. GALLAGHER:
16 Q Ms. Hawkins, would you be in favor of
17 having the issue on a ballot that could be sent out to
18 each telephone owner?
19 A Well, I would be in favor, but I would like
20 to get this on now. I don't want to wait personally.
21 COMMISSIONER SMITH: Thank you very much
22 for your testimony.
23 (The witness left the stand.)
24 COMMISSIONER SMITH: Vancie Turner.
25
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1 VANCIE TURNER,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: Vancie Turner, T-u-r-n-e-r,
6 P.O. Box 307, Driggs, and I would like to go on record as
7 against the EAS. It wouldn't benefit me at all. I would
8 really like to see an option. It's clear there are a lot
9 of people here that would, it would benefit and there's a
10 lot of people here that it would not benefit and I just
11 think rather than having your rates go up $16.00 or
12 $24.00, it would be just as easy to have it not go up at
13 all and pay long distance if that's, you know, more
14 financially satisfactory to you.
15 COMMISSIONER SMITH: Do we have any
16 questions?
17 No? We thank you very much for your
18 testimony.
19 (The witness left the stand.)
20 COMMISSIONER SMITH: Bill Bruce.
21
22
23
24
25
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1 BILL BRUCE,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Bill Bruce,
6 B-r-u-c-e, P.O. Box 95, Driggs, Idaho, 83422. I have
7 mixed feelings for both sides. I feel that the EAS is
8 needed and is beneficial to more the majority rather than
9 a minority and I'm willing to go for it; however, I do
10 feel that businesses with multiple lines should have a
11 sliding scale to where they're not charged, I think
12 that's a big bite, or for residential multiple lines to
13 have to pay the full rate for each line, I think there
14 should be a sliding scale for multiple lines there.
15 Also, I feel that the people on minimum and
16 fixed income should get a better break and have the
17 benefit of the EAS because there's many times that they
18 have an emergency that they have to contact people out of
19 the area, especially for medical reasons as well as
20 personal and family.
21 I guess that just about sums it up and I
22 think that there's enough majority that have shown their
23 opinions and beliefs in this being beneficial. We don't
24 need to go through a whole other ramification of voting
25 or other meetings. I think we either got to accept it or
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CSB REPORTING BRUCE
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1 take it -- personally accept it or discount it and take
2 it as it comes.
3 Thank you.
4 COMMISSIONER SMITH: Are there any
5 questions?
6 Thank you very much.
7 (The witness left the stand.)
8 COMMISSIONER SMITH: J. D. Winder.
9
10 J. D. WINDER,
11 appearing as a public witness, having been first duly
12 sworn, testified as follows:
13
14 THE WITNESS: My name is J. D. Winder,
15 W-i-n-d-e-r. I live at 158 South 100 East, Driggs,
16 Idaho. I would just like to say personally I'm in favor
17 of the EAS, many reasons for it. Personally, I have
18 family that are in Jackson and stuff that I do call them
19 frequently and this won't help me there, but I also have
20 friends and family in Idaho Falls and Rexburg and stuff
21 where it will also benefit me. It won't benefit me a
22 lot. I figure it will save me about 15 to $20.00 on my
23 personal phone bill.
24 Speaking as a member of Hillman's
25 Management, this is something that -- we have a lot of
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1 Associated people that we deal with in Pocatello, which a
2 lot of those numbers are all 1-800 numbers, but we also
3 have to pay Associated to be a member of them and part of
4 that that we pay for is paying for those 800 numbers.
5 There's also -- we send off public faxes
6 for people which if it's in a local calling area, we
7 charge less than if it's a long distance call which in
8 turn also would help other individuals.
9 Another personal experience, there's also
10 been times where medically-wise we have went to the local
11 people first and said -- as an example, my daughter
12 needed some medication and our local provider didn't have
13 it and she needed it now and I had to make a long
14 distance phone call to the pharmacies outside of the
15 valley to find that prescription so I could go and pick
16 it up.
17 Another little comment, we had an
18 individual talk about his Internet service and how it
19 cost him a lot. I understand it will cost him a lot for
20 those lines, but I also understand that he's going to
21 have access to thousands of more possible customers that
22 will look at him instead of other Internet providers, and
23 that's all I have to say.
24 COMMISSIONER HANSEN: Okay, do we have any
25 questions?
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1 Okay, thank you for your testimony.
2 (The witness left the stand.)
3 COMMISSIONER HANSEN: We now have Lorna
4 Fullmer.
5
6 LORNA FULLMER,
7 appearing as a public witness, having been first duly
8 sworn, testified as follows:
9
10 THE WITNESS: I'm not much of a speaker and
11 I told Dennis, I said, "I'll sign my name, but don't call
12 on me," but he did anyway, but anyway --
13 COMMISSIONER SMITH: We need you to state
14 your name.
15 THE WITNESS: Oh, my name, Lorna Fullmer,
16 L-o-r-n-a F-u-l-l-m-e-r.
17 MR. HOWELL: And your address, ma'am?
18 THE WITNESS: Box 133, Tetonia, Idaho.
19 MR. HOWELL: And your statement.
20 THE WITNESS: I want you to know that I am
21 in favor of it. It won't only benefit me, but it will
22 benefit my family and a lot of other people that I call
23 and as some of you, I know it won't benefit some of you,
24 but we're all in this together. I don't have children in
25 school, but I pay taxes and you probably have children in
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1 school, so I think that we have to kind of look out for
2 each other in this valley, and if we let this pass by, we
3 may not get a chance again. We'll be sort of an isolated
4 place and so I am really in favor of it.
5 COMMISSIONER HANSEN: Thank you.
6 Do we have any questions?
7 Thank you for your testimony.
8 (The witness left the stand.)
9 COMMISSIONER HANSEN: And I apologize for
10 calling on you, but you did a great job, so I'm glad I
11 did.
12 Lorene Moffit.
13
14 LORENE MOFFIT,
15 appearing as a public witness, having been first duly
16 sworn, testified as follows:
17
18 THE WITNESS: Lorene Moffit, Box 531,
19 Driggs, Idaho. I'm Lorna's sister, so I'm in favor of
20 this, too, and I think it will benefit all of us. You
21 know, we all have to see an increase in everything that
22 comes along almost, so if we have a little increase in
23 this, I don't think it's going to break all of us, but
24 I'm definitely in favor of this EAS.
25 Thank you.
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1 COMMISSIONER HANSEN: Thank you.
2 Do we have any questions?
3 Thank you for your testimony.
4 (The witness left the stand.)
5 COMMISSIONER HANSEN: Naoma Ringel.
6
7 NAOMA RINGEL,
8 appearing as a public witness, having been first duly
9 sworn, testified as follows:
10
11 THE WITNESS: My name is Naoma Ringel,
12 R-i-n-g-e-l, Post Office Box 496, Driggs, and I just want
13 to say that I am in favor of this motion and that I agree
14 with many of the things that have been said. Lorna, you
15 did do a good job. You said a lot for the senior
16 citizens and I know that it will benefit me a lot. I'm
17 not going to bore you with my statistics, but they're
18 similar to what others have said and I do agree with
19 this.
20 COMMISSIONER HANSEN: Okay, do we have any
21 questions?
22 Yes, Commissioner Smith.
23
24
25
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1 EXAMINATION
2
3 BY COMMISSIONER SMITH:
4 Q I guess I was just wanting to get your
5 opinion. A lot of times when we are concerned with
6 people on fixed or low income, we are thinking of senior
7 citizens, but you just testified you think this would be
8 a benefit to them and I just want to confirm that seniors
9 may have limited or fix incomes, but you still believe
10 that they will benefit from this?
11 A I do, I really do. Yes, I do.
12 COMMISSIONER SMITH: Okay, thank you.
13 COMMISSIONER HANSEN: Thank you for your
14 testimony.
15 (The witness left the stand.)
16 COMMISSIONER HANSEN: We have Gordon
17 Goodell.
18
19 GORDON GOODELL,
20 appearing as a public witness, having been first duly
21 sworn, testified as follows:
22
23 MR. HOWELL: I need your name and address
24 and could you spell your last name, please?
25 THE WITNESS: Okay, it's Gordon Goodell,
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1 G-o-o-d-e-l-l, 89 West 300 South, Victor. I just have
2 two things to say. First of all, I think there's a bit
3 of a misunderstanding here tonight and you may have
4 inadvertently promoted this. The 24.10 price was
5 referred to as a cap by someone earlier and it's not. We
6 should all realize it's not a cap, so to ask us for a
7 spring of '99 comparison to compare 24.10 to $22.00 I
8 don't think is fair because we all know the 24.10 will go
9 up in a year as well or may very well, and the second
10 thing is that I'm not willing to pay for this.
11 COMMISSIONER HANSEN: Do we have any
12 questions?
13 Yes, Mr. Gallagher.
14 MR. GALLAGHER: This isn't to Gordon
15 specifically, but it might be a time to ask, would any
16 future price increase be regulated through the IPUC?
17 COMMISSIONER HANSEN: I'm sorry, I was
18 trying to get your mike turned up a little bit. Would
19 you repeat that again, please?
20 MR. GALLAGHER: My question is would any
21 future price increase from Teton Telecom go through the
22 IPUC? When this price freeze goes off, it would be in
23 front of the Commission and regulated by the Commission?
24 COMMISSIONER HANSEN: It would, as long as
25 the PUC regulates the telecommunications company in this
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1 area or in Idaho it would. If eventually you were to get
2 to a competitive environment which Congress passed the
3 Telecommunications Act of '96 and eventually it would be
4 determined that you had competition in the area, then
5 regulation as far as pricing would be gone.
6 MR. GALLAGHER: Right, we would have a
7 choice, then.
8 COMMISSIONER HANSEN: But for the time
9 being, any increase would have to be approved by the
10 Public Utilities Commission.
11 MR. GALLAGHER: Okay, thank you.
12 COMMISSIONER HANSEN: Any other questions?
13 I might just comment on the question that
14 you had made or your comment earlier. You are correct
15 that I believe in the statement Teton Telecom stated that
16 if they got this, they wouldn't ask for an increase until
17 in 1999, is that correct, and so what I was comparing was
18 the possibility if they didn't after the rate freeze, if
19 they were to go for Universal Service, I was just trying
20 to find out in that area if they would be doing that.
21 That's speculative, but you are correct, they could ask
22 for an increase. If this was granted, the 24.10, later
23 on in 1999 or the year 2000 or whatever if they had a
24 deficiency in their revenue and they weren't earning a
25 fair rate of return, they would have the right to
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1 petition the PUC for an increase.
2 THE WITNESS: My understanding was that the
3 proposed $22.00, increase to $22.00 without the extended
4 area would be to take us to 125 percent of the Idaho
5 average so that we would be eligible for that funding, in
6 which case any increase after that point would be
7 regulated in the same way as Mr. Gallagher is referring
8 to, right, it would have to come before the Commission.
9 COMMISSIONER HANSEN: They would, but
10 without charging that rate, they would not qualify for
11 any Idaho Universal Service Funding money.
12 Are there any other questions?
13 Thank you for your testimony.
14 (The witness left the stand.)
15 COMMISSIONER HANSEN: We now have Del
16 Fullmer.
17
18 DEL FULLMER,
19 appearing as a public witness, having been first duly
20 sworn, testified as follows:
21
22 THE WITNESS: My name is Del Fullmer,
23 F-u-l-l-m-e-r. My residence is 29 West 200 South,
24 Driggs, Idaho. I am in favor of the extended area
25 service. It would benefit me personally. It would
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1 benefit my business and it would benefit my children who
2 live out of the area calling to me. They are also on a
3 very limited income trying to go to college. Them being
4 able to call me would be very beneficial.
5 There's a lot of benefit to the community
6 that would be added by this EAS, in my opinion, from a
7 business standpoint allowing the local businesses the
8 opportunity to shop the outlying areas where they bring
9 supplies into this area to redistribute them in this
10 area. I think it's my opinion that there's been a lot of
11 lobbying that should have gone to the senators and
12 congressmen to support putting it on a ballot. This is
13 not the way this PUC works.
14 I wish we would have been able to have
15 limited testimony to start with instead of having a
16 filibuster so we could get back to work, some of us that
17 still have work to do. We had to quit working in the
18 middle of the day to get to this meeting. I am in favor
19 of the EAS and that's basically my testimony.
20 COMMISSIONER HANSEN: Okay, let's see, do
21 we have any questions?
22 Thank you for your testimony.
23 (The witness left the stand.)
24 COMMISSIONER HANSEN: We have Scott Bohr.
25
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1 SCOTT BOHR,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Scott Bohr,
6 B-o-h-r. My residence is 70 South 1st East in Driggs,
7 Idaho. I was here at the last meeting and I was one of
8 three out of about 400 that were opposed and I still feel
9 the same way. I don't feel like I should subsidize to
10 have people chat with their loved ones in far away
11 cities, Pocatello and whatnot, and also I don't like
12 wearing suits and I think blue jeans are appropriate.
13 That's all I have to say.
14 COMMISSIONER HANSEN: Do we have any
15 questions?
16 Thank you for your testimony.
17 (The witness left the stand.)
18 COMMISSIONER HANSEN: I've used the
19 assistance of my fellow Commissioner, we're having
20 trouble with this last name, so it's Carolee that lives
21 at 788 South --
22 MS. FLAHERTY: It's just Carole.
23
24
25
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1 CAROLE FLAHERTY,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Carole Flaherty,
6 F-l-a-h-e-r-t-y, 788 South 450 West. I am not in favor
7 of the EAS. It will not benefit my family and I'm not
8 willing to pay for it.
9 Thank you.
10 COMMISSIONER HANSEN: Do we have any
11 questions?
12 Thank you for your testimony.
13 (The witness left the stand.)
14 COMMISSIONER HANSEN: We now have JoAnne
15 Lucey.
16
17 JOANNE LUCEY,
18 appearing as a public witness, having been first duly
19 sworn, testified as follows:
20
21 THE WITNESS: JoAnne Lucey, L-u-c-e-y,
22 52 North 275 East, Driggs. I am not in favor of the
23 EAS. It will not benefit me. I'm a small business
24 owner, so I have a home phone and a business line as well
25 and I would like to see this as an option, not as
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1 mandatory.
2 COMMISSIONER HANSEN: Do we have any
3 questions?
4 Thank you for your testimony.
5 (The witness left the stand.)
6 COMMISSIONER HANSEN: Roy Moulton.
7
8 ROY MOULTON,
9 appearing as a public witness, having been first duly
10 sworn, testified as follows:
11
12 THE WITNESS: Roy Moulton, Post Office
13 Box 631, Driggs, Idaho, Moulton, M-o-u-l-t-o-n. I'm in
14 favor of the EAS for all of the reasons that have been
15 previously stated. One thing that I would find as a huge
16 anomaly if this wasn't passed is if Teton County would be
17 isolated in this whole otherwise big area of extended
18 area service and I really think that that would have huge
19 business impacts on us if everyone from Preston to Ashton
20 is included in an EAS and we're left out on this little
21 island calling long distance.
22 I have to wonder if I live in the same
23 community or in the same world economically and so forth
24 as some of the people who have testified against it. I
25 really have a hard time believing that people use their
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1 phone so little that the EAS doesn't benefit them at the
2 $25.00 proposed rate and yet they use it so much just
3 within Driggs that the 15 or $16.00 rate wouldn't be to
4 their advantage. That having been said, when you get
5 this on the ballot, please put milk and sugar and cereal
6 on that same ballot.
7 That's all.
8 COMMISSIONER HANSEN: Let's see if we have
9 any questions.
10 Yes, Mr. Gallagher.
11 MR. GALLAGHER: I didn't understand the
12 milk and sugar analogy there.
13 THE WITNESS: It was tongue and cheek.
14 MR. GALLAGHER: Nice boots.
15 THE WITNESS: Thanks.
16 COMMISSIONER HANSEN: Any other questions?
17 Thank you for your testimony.
18 (The witness left the stand.)
19 COMMISSIONER HANSEN: Shana Mickelsen.
20
21
22
23
24
25
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1 SHANA MICKELSEN,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: Shana Mickelsen,
6 M-i-c-k-e-l-s-e-n, 200 North 400 West, Tetonia, and I'm
7 for the extended service. I came to the last meeting and
8 I came to this one and neither one did I want to talk at,
9 but I do want you to know that I am for it.
10 COMMISSIONER HANSEN: Do we have any
11 questions?
12 Thank you very much for your testimony.
13 (The witness left the stand.)
14 COMMISSIONER HANSEN: Gisela Kunz.
15
16 GISELA KUNZ,
17 appearing as a public witness, having been first duly
18 sworn, testified as follows:
19
20 THE WITNESS: My name is Gisela Kunz,
21 G-i-s-e-l-a K-u-n-z, and I am in favor. I have a family
22 that now lives within this area and I would like to be
23 able to keep in touch with them and I've lived in this
24 valley for 40 years and this is one of the luxuries I'd
25 like to be able to accord myself and I think I will be
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Wilder, Idaho 83676 Public
1 benefited from it.
2 Thank you.
3 COMMISSIONER HANSEN: Thank you.
4 Do we have any questions?
5 Thank you for your testimony.
6 (The witness left the stand.)
7 COMMISSIONER HANSEN: Kathleen Eagan.
8
9 KATHLEEN EGAN,
10 appearing as a public witness, having been first duly
11 sworn, testified as follows:
12
13 THE WITNESS: My name is Kathleen Egan,
14 E-g-a-n, and my address is Box 494, Victor, and I am not
15 willing to pay for this. I have a business phone and a
16 personal phone and I don't ever call these areas and I
17 would also like to see it as an option, and that's all,
18 tired.
19 COMMISSIONER HANSEN: Do we have any
20 questions?
21 Thank you for your testimony.
22 (The witness left the stand.)
23 COMMISSIONER HANSEN: Unless I have skipped
24 over someone or someone crossed their name out or got
25 their name crossed out, I've gone through the list, is
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CSB REPORTING EGAN
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1 there anyone that I've missed or anyone that would like
2 to come forth and testify that maybe didn't sign up?
3 Yes, if you would like to come forward,
4 ma'am, and you can be sworn in and then state your name
5 and anybody else, we'll give you a chance if you didn't
6 sign up.
7
8 GRETCHEN NOTZOLD,
9 appearing as a public witness, having been first duly
10 sworn, testified as follows:
11
12 THE WITNESS: Gretchen Notzold,
13 G-r-e-t-c-h-e-n N-o-t-z-o-l-d, 397 West 575 South,
14 Victor. I personally think all of you should be wearing
15 skirts. Anyway, I'm against the EAS and as it appears to
16 boil down for everyone in terms of money, I can't afford
17 it and I think it's interesting how we talk about this
18 being a democracy and the majority should rule over the
19 minority. In some cases, I think that's true, but in
20 this situation I don't think that that even has to be the
21 issue.
22 I think that there's a third alternative.
23 Once again, I think it could be an option. I think in a
24 democracy, also besides majority versus minority, there's
25 also equality, fairness, a lot of other issues. It isn't
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1 fair to make people who won't use this plan pay so that
2 other people can, just as it isn't fair for me to have
3 people here to pay for my calls to Michigan to talk to my
4 relatives.
5 I think the EAS would benefit a great deal
6 of people. I lived in a community in Michigan where I
7 had an option to call long distance to my relatives who
8 only lived five miles away which I chose to do because I
9 talked to them a lot, but I didn't think that it was fair
10 for my neighbors to have to pay, you know, for a blanket
11 sort of a plan to enable me to call when they wouldn't be
12 able to, so I don't think that it's fair for me to have
13 to pay for other folks to call out of this town.
14 I call Idaho Falls 10 times a year, maybe,
15 maybe not even that much, so I have no need for it. I
16 think other people do and they should have that option.
17 COMMISSIONER HANSEN: Let's see if we have
18 any questions.
19 Commissioner Smith.
20
21
22
23
24
25
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1 EXAMINATION
2
3 BY COMMISSIONER SMITH:
4 Q I'm just curious whether your concern over
5 affordability is for your residential phone or is it for
6 business?
7 A It's for a residential phone. Also, with
8 the measured service, that would provide me with even
9 less than I get now for more money. For 90 minutes a
10 month, my children, I have two little girls who call
11 their father every night or call me every night when
12 they're with their father, that would limit our calls to
13 each other. He would certainly be on the measured
14 service and I would be, too, so that limits a lot of my
15 communication right here in the valley.
16 COMMISSIONER HANSEN: Thank you very much
17 for your testimony.
18 (The witness left the stand.)
19 COMMISSIONER HANSEN: Yes, sir, if you'd
20 like to come forward.
21
22
23
24
25
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Wilder, Idaho 83676 Public
1 DEE O'BRIEN,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: Dee O'Brien, D-e-e
6 O'-B-r-i-e-n. I live at 58 South 3rd East, Driggs,
7 Idaho, and I'd like to testify in behalf of the EAS. I
8 hope you'll take into consideration the testimony that
9 has been given previously in November on behalf of the
10 school district and the medical facilities that we have
11 here in Teton Valley. I was in hopes that Mr. Woolley,
12 someone representing the school, would be here.
13 I am a teacher at Teton High School and
14 during the break I just went in and checked long distance
15 calls over the past week and as a coach, I was
16 particularly concerned about calls for scheduling and
17 those types of things. Of the 32 long distance calls
18 that were made by coaches or school personnel, 26 of
19 those went to the area that would be covered by the EAS
20 and so it would mean a big savings for taxpayers of the
21 local school district.
22 I am grateful as a patron of this district
23 for those that had the foresight enough and were willing
24 even though they don't have kids in school, those that
25 voted for a new high school, that they didn't say, well,
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1 my kids are grown, we're not going to have a benefit.
2 They took the concerns and needs of the community into
3 their own concerns and voted for a school bond, and I
4 know that there are people that feel that we should have
5 a choice, but having been a resident of Teton Valley for
6 50 years and have seen the progress here, I think this is
7 something that would greatly aid the community as a whole
8 and I'm definitely in favor of the EAS.
9 COMMISSIONER HANSEN: Okay, let's see if we
10 have any questions for the coach.
11 I guess I just have to ask you one, will
12 EAS make your winning record better or worse?
13 THE WITNESS: It will make it easier to
14 call those winning coaches in Idaho Falls and get some
15 tips without costing the taxpayers money.
16 COMMISSIONER HANSEN: Thank you.
17 (The witness left the stand.)
18 COMMISSIONER HANSEN: Do we have anyone
19 else?
20 Yes, sir, if you would like to come
21 forward.
22
23
24
25
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1 JACK HANSEN,
2 appearing as a public witness, having been first duly
3 sworn, testified as follows:
4
5 THE WITNESS: My name is Jack Hansen,
6 H-a-n-s-e-n. I live at 300 South 90 East. I personally
7 am for this. I think that we're kind of mistaken about
8 thinking about the older people can't afford this much
9 for a telephone call because almost all of them has got
10 kids and there's nothing in the valley that's kept them
11 and they all live away and they call them and a lot of
12 them is in this calling area.
13 Personally, I've got, I guess I've got five
14 kids and four of them that lives in this calling area, so
15 you see, I've got a good reason for it, but I do think
16 that it's hard on kids going to college that they can't
17 call home and report what's going on and most all the
18 kids from this country that's going to college is kind of
19 on a budget because there's not much money here and I
20 think a lot of the folks that has testified here is
21 probably working in Jackson, they're not making their
22 money here and so I never talked -- I've been around for
23 a long time, I'm not going to say how long but quite
24 awhile and I've got a lot of friends and I have not
25 talked to but one that was against it.
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Wilder, Idaho 83676 Public
1 Now, of course, I don't talk to the younger
2 generation very much. I mean, there's a few that I know,
3 but not too many of them, but the older generation is for
4 it, I'll guarantee you that and I thank you.
5 COMMISSIONER HANSEN: Let's see, do we have
6 any questions?
7 Thank you for your testimony.
8 (The witness left the stand.)
9 COMMISSIONER HANSEN: Do we have anyone
10 else?
11 Okay, yes, ma'am, if you would like to come
12 forward.
13
14 DORIS STEWART,
15 appearing as a public witness, having been first duly
16 sworn, testified as follows:
17
18 THE WITNESS: My name is Doris Stewart,
19 S-t-e-w-a-r-t, and I live at 220, Tetonia. I'm a senior
20 citizen and I am for this. I've lived in this valley 72
21 years and in that time I've learned you can't slice
22 anything so thin there isn't two sides to it and we can
23 have meetings and have meetings and there will still be
24 two sides, so let's settle it and have it.
25 COMMISSIONER HANSEN: We just might have a
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CSB REPORTING STEWART
Wilder, Idaho 83676 Public
1 question for you, you're pretty fast trying to get out of
2 here. Now I'm hoping somebody has a question.
3 Does anybody have a question?
4 Okay, you're pretty lucky.
5 (The witness left the stand.)
6 COMMISSIONER HANSEN: Do we have anyone
7 else? Okay, well, we appreciate you all coming out and
8 you people that have stayed until the final end and this
9 will complete our hearing here this evening and it will
10 complete the hearing on this case. The Commission will
11 deliberate on this and we will have an order out in the
12 near future.
13 Before we adjourn, I would just like to ask
14 one question, does anybody know whether the Jazz won
15 tonight? Shoot, okay. All right, with that, the meeting
16 is adjourned. Thank you.
17 (The Hearing adjourned at 10:30 p.m.)
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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 Teton County requesting extended area
7 service (EAS) to the greater Idaho Falls area, commencing
8 at 7:10 p.m., on Tuesday, May 5, 1998, at the Teton High
9 School Auditorium, 41 North Main, Driggs, Idaho, is a
10 true and correct transcript of said proceedings and the
11 original thereof for the file of the Commission.
12
13
14
15
CONSTANCE S. BUCY
16 Certified Shorthand Reporter #187
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