20020215-min.doc

MINUTES OF DECISION MEETING
FEBRUARY 15, 2002 – 1:30 P.M.

In attendance were Commissioners Paul Kjellander, Dennis Hansen, and Marsha Smith.

Commissioner Kjellander called the meeting to order. The first order of business was approval of items 1-3 on the CONSENT AGENDA. Commissioner Kjellander noted there had been an addendum to the Consent Agenda, which changed the numeration of the agenda items. There were no comments or questions on any of the items and the Consent Agenda was approved.

The next order of business was MATTERS IN PROGRESS:

Weldon Stutzman’s February 13, 2002 Decision Memorandum re: Application of Rural Telephone Company for an Increase in Its USF Funding. Case No. RUR-T-01-01.

Mr. Stutzman reviewed his Decision Memorandum. Commissioner Smith stated that she appreciates the Staff’s thoroughness of its audits and she considers them to be very conscientious. She said she also appreciates the work load the Commission has had in the last 18 months, but regarding the question of the date, her sympathies are entirely with the company. She said since 1999 when the Commission issued its first order, we knew that some USF funds would be involved in this. She stated that in February when the rates were implemented and the EAS cutover occurred, we knew that it was appropriate at that time that some of the USF would be picking up the cost, and the question was “how much?” She said it has taken a year to get to the right number. Knowing there was going to be an audit and that it would take several months to get to the right number, she thought a better procedure would have been to eyeball it and get a USF contribution in place so that the disbursements that were being made could match the collections that were being made more closely in time, as opposed to now being faced with a huge make-up charge for a year that has gone undisbursed. She said she is sympathetic to the company’s request for a February 14, 2001 date.

Commissioner Hansen said he agreed with Commissioner Smith and was ready for a motion. Commissioner Kjellander asked what impact it will have on the fund if we move this back to the February date. Terri Carlock replied that she spoke with the fund administrator who said that either one of the dollar amounts would not be a problem at this time.

Commissioner Smith made a motion that the Commission increase Rural’s USF funding by an amount of $68,274 annually and that the effective date of the increase be set at February 14, 2001.

Commissioner Kjellander commented that he was reminded not long ago when this case was coming up that we did tell the company it was entitled to seek appropriate recovery for doing this through USF, and it only seemed fair to go with the date in the motion.

Mr. Stutzman asked if the motion takes into consideration the reduction that would occur after three years after the case costs have been recovered. Commissioner Smith replied that it did.

A vote was taken and the motion carried unanimously.

Commissioner Kjellander stated that the only other item on the agenda was under FULLY SUBMITTED MATTERS and the Commission would deliberate on it privately. He then adjourned the meeting.

DATED this ______ day of February, 2002.

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COMMISSION SECRETARY

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