20021125_326.pdf

TO:
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