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HomeMy WebLinkAbout20021125_326.pdfTO: DECISION MEMORANDUM COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN JEAN JEWELL RANDY LOBB WELDON STUTZMAN JOE CUSICK BIRDELLE BROWN CAROLEE HALL WAYNE HART BEVERLY BARKER LYNN ANDERSON RON LAW TONY A CLARK WORKING FILE FROM: DOUG COOLEY DATE: NOVEMBER 21, 2002 RE:IN THE MATTER OF EXTENDED AREA SERVICE TO THE BOISE MERIDIAN, NAMPA, CALDWELL, EMMETT, NEW PLYMOUTH, WEISER AND PAYETTE EXCHANGES IN IDAHO AND THE ONTARIO, VALE, AND OREGON SLOPE EXCHANGES IN OREGON - CASE NO. GNR- T -00-30. On September 24, 2002, this case was presented to the Commission. At that time, the Commission decided to delay a decision and postponed consideration of this case. Staff now re- submits this case for consideration by the Commission. BACKGROUND In separate petitions, Oregon customers in the Vale, Ontario, Oregon Slope and Nyssa exchanges petitioned the Oregon Public Utilities Commission to allow toll free extended area service (EAS) between these Oregon exchanges and the Idaho exchanges for Boise, Meridian Nampa, Caldwell, Emmett, New Plymouth, Weiser and Payette. On February 23 2000, the Oregon Commission Staff filed testimony explaining its review of geographic and calling traffic information. The Oregon Staff concluded that none of the requested EAS routes satisfied the DECISION MEMORANDUM NOVEMBER 21 , 2002 Oregon Public Utilities Commission s community of interest criteria as described in Oregon Order Nos. 89-815 and 92-1136. On April 12, 2000, a hearing was held in Ontario and approximately 110 people attended. After reviewing the case, the Oregon Commissioners issued Order No. 00275 on May 31 2000. In that Order, the Oregon Commission found that a community of interest does exist between the Oregon exchanges and the requested Idaho exchanges. The Oregon Public Utilities Commission directed its Staff to pursue approval from the Idaho Public Utilities Commission regarding this case. In September 2000, the Idaho Public Utilities Commission opened Case No. GNR-00- to evaluate the need for and the costs associated with EAS between the Treasure Valley calling region and the requesting Oregon exchanges of Ontario, Vale, Nyssa, and Oregon Slope. The Commission also directed Staff to investigate the need for EAS between all Idaho exchanges along the Oregon border that are in proximity to the requesting Oregon exchanges. STAFF REVIEW OF REQUESTED EXCHANGES Staff reviewed the calling data supplied by Qwest from the requested Idaho exchanges to the Oregon exchanges of Vale, Nyssa, Ontario, and Oregon Slope of Malheur Bell Telephone. Staff found, in most cases, that very few calls were made from Treasure Valley exchanges to the Oregon exchanges and that few Treasure Valley customers make two or more calls per month to those exchanges. (See attached) The Qwest exchanges of Payette, Weiser, and New Plymouth showed some calling volume to the Oregon exchanges. These three exchanges are within approximately 15 miles of the Oregon exchanges, but already have toll free calling into the Qwest exchanges ofIdaho s Treasure Valley. The Weiser exchange also has toll-free calling to the adjacent Oregon Slope exchange while the Payette exchange has toll free calling to the adjacent exchanges of Oregon Slope and Ontario. Of the twelve letters, calls and e-mails Staffreceived in support of granting EAS, five were from Idaho customers. These customers are in the New Plymouth and Payette communities where EAS to Ontario was denied in 1990 (Order No. 23827) but later implemented to the Treasure Valley in 1999 (Order No. 27774). Based on the information supplied by Qwest, Staff estimates that it would cost all Qwest customers in southern Idaho more than $800 000 annually, or approximately $0.17 per customer DECISION MEMORANDUM NOVEMBER 21 , 2002 per month, to implement EAS between Idaho s Treasure Valley exchanges and the requesting Oregon exchanges. Due to recent rate center consolidation in Idaho, Staff included Kuna Middleton and Star with the requested Meridian exchange and Idaho City with the requested Boise exchange when estimating the cost of EAS to the Treasure Valley. In addition, the exchanges of Payette, Mountain Home and Melba were included in Staff's estimate because these exchanges are part of the Treasure Valley calling area. The addition of these three exchanges accounted for only $0.01 of the estimated $0.17 figure. ST AFF REVIEW OF OTHER EXCHANGES Staff also investigated the possibility of EAS between the requesting Oregon exchanges and eighteen other exchanges along the Idaho/Oregon border. From responses provided by the companies, Staff discovered that none of the eighteen exchanges averaged more than 8 minutes per customer per month usage to the four Oregon exchanges. While there was some calling interest from the exchanges of Mid vale, Cambridge and Parma, the majority of customers in all eighteen exchanges called the Oregon exchanges once a month or less. In 1997 and 1998, the Idaho Public Utilities Commission received petitions from customers in Washington County and parts of Payette County requesting Extended Area Service to the communities of Payette, Weiser, Cambridge, Fruitland, New Plymouth, the Treasure Valley calling region, and Ontario, Oregon. In Case Nos. MID-99-1 and CAM-99-, the Commission created an EAS "mini-region" consisting of Cambridge Telephone exchanges in Washington County, Midvale Telephone s Midvale exchange, Qwest's Payette and Weiser exchanges, and Farmer s Mutual telephone exchanges of Fruitland and Nu Acres. The estimated amount that monthly telephone bills would have to increase as a result of granting EAS to the Oregon exchanges ranged between $0.22 and $1.06 per month for the companies that Staff reviewed in this case. The exception to this was no increase from Rural Telephone due to the fact that zero Rural Telephone customers called the Oregon exchanges during the six-month study period. STAFF RECOMMENDATION Staff believes that some Idahoans living near the Oregon border may do some shopping in Ontario or perhaps work in that state. However, Staff believes that such services as school DECISION MEMORANDUM NOVEMBER 21 , 2002 districts, medical facilities, police and fire services, government agencies, and even Internet access are already accessible via a local call for the customers in the Idaho exchanges, and further believes that such services are also available via a local call for those customers in the Oregon exchanges. In addition, there does not appear to be a compelling amount of calling from Idaho to the Oregon exchanges or from the Oregon exchanges to Idaho. In fact, the Oregon Public Utilities Commission Staff found that none of its community of interest criteria was met for any of the requesting Oregon exchanges. Further, the estimated rate impacts appear disproportionate to the benefits for Idaho customers. Overall, Staff believes the majority of customers in these Idaho communities would not be better served by granting EAS to the Oregon exchanges. Having completed its initial investigation, Staff believes that further study of this petition for EAS is not warranted and recommends that the Idaho Public Utilities Commission deny the petition for EAS between the Oregon exchanges of Vale, Ontario , Oregon Slope and Nyssa and the requested Idaho exchanges of Boise, Meridian, Nampa, Caldwell, Emmett, New Plymouth, Weiser and Payette. Staff further recommends that the Commission should not, at this time, change the current calling areas of any Idaho exchanges involved in this case (South Mountain, Grasmere, Bruneau, Grand View, Mtn. Home, Glenns Ferry, Tipanuk, Prairie, Boise River, Star, Middleton, Idaho City, Melba, Kuna Marsing, Homedale, Wilder, Parma, Cuprum, Council, Cambridge, Indian Valley, Midvale). COMMISSION DECISION Does the Commission wish to deny the petition for EAS between the requested exchanges of Boise, Meridian, Weiser, Nampa, Caldwell, Emmett, New Plymouth, and Payette? udmemos/Ontario Dee Memo DECISION MEMORANDUM NOVEMBER 21 , 2002