20021216_344.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
LYNN ANDERSON
JOE CUSICK
BIRDELLE BROWN
DOUG COOLEY
WAYNE HART
BEVERLY BARKER
RON LAW
GENE FADNESS
TONY A CLARK
WORKING FILE
FROM:CAROLEE HALL
DATE:DECEMBER 12, 2002
RE:TETON TELECOM AND SILVER STAR SEEKING COMMISSION
APPROVAL TO INCREASE RATES FOR PREMISES VISIT CHARGES,
ENGINEERING SERVICES AND OTHER TARIFFED RATES. AN
EFFECTIVE DATE OF JANUARY 1, 2003 IS REQUESTED.
BACKGROUND
On December 2, 2002, Staff received two tariff advice filings. One was from Silver Star
Telecommunications and the other from Teton Telecom. Both Companies are seeking
Commission approval to increase certain rates by 30%.
After reviewing the initial filings, Staff contacted the Companies and requested a redline
version as well as a costlbenefit analysis of the requested rate increases. Staff received the
redline version and a revenue analysis on December 10, 2002. However, Staff has not yet
received a cost analysis to justify the requested rate increases. In the analysis, the Companies
anticipate an annual incremental revenue increase to Silver Star and Teton of $672.00 and
894.00 respectively.
DECISION MEMORANDUM DECEMBER 12, 2002
Currently, Silver Star is collecting $163 101 annually from the Idaho Universal Service
Fund. Teton is not collecting from the fund. Neither Silver Star nor Teton has had an audit since
the EAS cases that were held five years ago in 1997.
Staff believes that the rate increases requested by Silver Star and Teton should have a
closer review of the earnings and costs associated with the increases. Staff discussed this
extension of time with the Company. Silver Star and Teton agree that it has been some time
since a formal review has occurred and are amicable to a sixty-day suspension while a cost
analysis can be prepared for Staff s analysis. The Staff appreciates the Companies' cooperation
and understanding with this matter.
STAFF RECOMMENDATION
Staff recommends suspending Silver Star and Teton Telecom s tariff advice filings for a
period of sixty days so that a more thorough cost analysis into the requested rate increases can be
conducted.
COMMISSION DECISION
Does the Commission agree that the tariff advices should be suspended for a period of
sixty days?
i:udmemos/Silver Star and Teton 12-11-
DECISION MEMORANDUM DECEMBER 12, 2002