jointstipulation.doc

Deputy Attorney General
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, ID 83720-0074
Tele: (208) 334-
FAX: [phone]
Idaho Bar No. 3283

CONLEY WARD
GIVENS PURSLEY LLP
PO BOX 2720
BOISE, ID 83701
Tele: [phone]
FAX: [phone]
Idaho Bar No. ______

Street Address for Express Mail:

472 W Washington
Boise, ID 83702-5983

Attorney for the Idaho Public Utilities Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF INLAND TELEPHONE COMPANY’S APPLICATION FOR AUTHORITY TO INCREASE RATES AND DISBURSEMENTS FROM THE IDAHO USF. )
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) CASE NO. INL-T-99-02

JOINT SETTLEMENT AND STIPULATION OF INLAND TELEPHONE COMPANY AND STAFF

COME now Inland Telephone Company (Inland) and the Staff of Idaho Public Utilities Commission (Staff) by and through their respective attorneys of record and pursuant to Rule 272 of the Rules of Procedure, IDAPA 31.01.01.272, and present the following settlement and stipulation for the Commission’s consideration.
1. On December 21, 1999, Inland filed an Application requesting approval to increase its local exchange rates and to increase its distribution from the Idaho Universal Service Fund (USF). Based on a calendar 1998 test year, Inland proposed an increase in revenue requirement of up to $296,711. Inland also proposed to increase its local rates over a period of three years. The Company requested, based on a higher revenue requirement and the proposed rate adjustment, to increase its funding from the Idaho USF in the amount of $291,383 in the first year, $282,497 in the second year, and $273,573 each year thereafter.
Following completion of a Staff audit, Staff served its pre-filed testimony on Inland on July 19, 2000. Staff in its testimony recommended that Inland immediately increase its local service rates to the threshold rate required by Idaho Code § 62-610 for companies receiving funds from the state USF, and that Inland’s annual draw from the USF be reduced by $30,290.
Staff and Inland met informally to discuss the differences, which culminated in the preparation of this settlement and stipulation.
In the interest of settling this matter and avoiding the need for further litigation, Inland and the Staff stipulate and agree to a reduction in Inland’s annual draw from the USF in the amount of $12,000, resulting in Inland’s revenue requirement being $408,264.
Following approval of this stipulation by the Commission and proper notice, Inland shall increase its local basic service rates to the threshold rates required by Idaho law for companies receiving funds from the state USF. Following completion of a report by the USF administrator and pending approval by the Commission, those rates are expected to be:
Basic Local Residential $21.63
Basic Local Business $40.68
Access Rates $.054486

Inland shall determine its specific costs for implementing intraLATA dialing parity and file a request for approval of a dialing parity surcharge with the Commission. The dialing parity surcharge will be separate from this case, and the parties anticipate that the dialing parity surcharge will be processed by modified procedure.
Inland on a going forward basis will book its depreciation at the rates currently approved by the Washington Utilities Commission for Inland’s operations in Washington. The current revenue requirement reflects the Staff’s recommended depreciation rates.
Inland shall amortize its costs for this case, in the amount of $40,000, over a three year period.
The parties will submit this stipulation for approval by the Commission, and shall endeavor to obtain its approval as expeditiously and efficiently as possible to minimize costs for the Company. Each party hereto shall take all action necessary and appropriate to carry out this settlement and stipulation and to gain the approval by the Commission. Staff will file supplemental testimony in support of the Stipulation.

Dated this _____ day of August 2000.

Deputy Attorney General

Givens Pursley LLP

By:_______________________________
Conley Ward, attorney for Inland Telephone
Vld/N: INL-T-99-02_ws2

JOINT SETTLEMENT AND
STIPULATION OF INLAND
TELEPHONE COMPANY AND STAFF 3