20100621_2999.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:JUNE 17 2010
RE:POTLATCH TELEPHONE COMPANY t'POTLA TCH~ TARIFF
FILING REQUESTING COMMISSION APPROVAL TO
GRANDFATHER CURRENT TERMINATION LIABILITY CHARGES
AND ADD NEW TERMINATION LIABILITY CHARGES; TARIFF
ADVICE 1O-02P.
BACKGROUND AND DISCUSSION
On June 15, 2010, Potlatch filed Advice No.1 0-02P requesting Commission approval to
grandfather its current Termination Liability Charge application for Centrex and Dedicated DS
services. The filing also requests Commission approval to add new Termination Liability
charges. The Company is requesting an effective date of July 15 , 2010.
Currently the termination liability language states that if service is canceled by the
customer after installation of the service, but prior to the completion of the service period, the
customer shall be obligated to pay a termination liability charge. The termination liability charge
is calculated by multiplying the monthly rate by the remaining months in the contract period and
then multiplying that calculation by fifty percent. The Company wishes to grandfather this
service for all contracts signed before July 15 2010.
For contracts entered into after July 15 2010, the Company wishes to introduce new
terms and conditions for early termination of service. The new terms require the customer to pay
an early termination fee equal to the difference between the amount billed had the customer been
billed at the applicable rate under the contract and the amount which would have been billed
DECISION MEMORANDUM - 1 -JUNE 17 2010
under a shorter term contract. The difference in monthly contracted amounts would apply
each month that the customer received the service prior to the termination.
ST AFF RECOMMENDATION
Staff has reviewed this tariff filing and believes that the Company will be recovering its
costs and recommends approval.
COMMISSION DECISION
Does the Commission agree?
u/chall/decisionmemos/Potlatch Telephone Co. IO-O2P
I Example: Customer signs a 36 month contract and tenninates after 28 months.
24 Mo. Rate ($21.00) - 36 Mo. Rate (20.50)
= $.
50 x 28 months = $14.00 Early Tennination Charge
DECISION MEMORANDUM - 2 -JUNE 17 2010