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HomeMy WebLinkAbout20210608_dk1jo.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY LEGAL WORKING FILE FROM:DANIEL KLEIN MATT HUNTER DATE:JUNE 4,2021 RE:IN THE MATTER OF COLUMBINE TELEPHONE COMPANY,INC.'S TARIFF FILING CHANGING THE MANNER IN WHICH FACILITIES EXTENSIONS ARE HANDLED. BACKGROUND On May 14,2021,Columbine Telephone Company Inc.dba Silver Star Communications ("Columbine"or "Company")filed changes to its tariff with the Commission as required by Idaho Code §61-307.Columbine proposes to "change the practice to the manner in which facilities extensions are handled."Columbine is changing from a dollar amount allowance for extending facilities to a set distance where only a flat fee applies for the allowable distance.If the extension is longer than the allowable distance then the applicant pays for the additional costs.The Company's tariff currentlyprovided for up to $1,600 worth of cost to extend service to a customer and required costs that exceeded the $1,600 to be paid upfrontby the applicant prior to construction.The proposed changes by the Company would change the aid to construction amount from the $1,600 to 500 feet of extension with a $350 one-time charge.The customer would then pay any actual costs beyond the first 500 feet in advance of construction. STAFF REVIEW AND RECOMMENDATION Staff has reviewed the proposed tariff revision and compared it to other fully rate regulated Title 61 company tariffs.All the other companies provide anywhere from 300 to 1,000 feet of line extension at no cost to an applicant. DECISION MEMORANDUM -1 -JUNE 4,2021 Staff believes that the proposed change to how Columbine will handle line extensions constitutes an increase in rates and is therefore subject to Idaho Code §61-622 and should not be handled through a tariff advice. Therefore,Staff recommends the Commission suspend the proposed tariff's effective date for 60 days and initiate a formal proceeding to determine whether the proposed tariff complies with the Commission's regulatory requirements.Staff also recommends the case be processed by Modified Procedure,with a July 8,2021,comment deadline and a July 15,2021, reply comment deadline. COMMISSION DECISION Does the Commission wish to: 1.Initiate a formal proceeding to determine whether Columbine's proposed tariff complies with the Commission's regulatory requirements? 2.Process the case by Modified Procedure,setting a July 8,2021,comment deadline and a July 15,2021,reply comment deadline? 3.Suspend the proposed effective date for Columbine's proposed tariff for 60 days? Daniel Klein Udmemos/Columbine tariff advice DECISION MEMORANDUM -2 -JUNE 4,2021