ATTACHMENT I
Revised Version of T-17132
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Communications Division |
RESOLUTION T-17132 |
Licensing, Tariffs, Rural Carriers, and Cost Support Branch |
January 29, 2009 |
R E S O L U T I O N
Resolution T-17132. Ponderosa Telephone Company. (U-1014-C). General Rate Case Filing In Compliance With G.O. 96-B, Paragraph VI.
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Summary
This resolution addresses the General Rate Case (GRC) filed by Ponderosa Telephone Company (Ponderosa) through Advice Letter (AL) No. 374 in compliance with D.01-05-031. Ponderosa proposes: a) no changes to its basic rates or charges, however the company proposes increases to some optional services and non-recurring charges to bring its prices more in line with that of the telephone industry; b) an intrastate rate of return (ROR) of 10.00%, the same ROR granted in its previous GRC filing in 2003; and c) $5,843,734 in California High Cost Fund-A (CHCF-A) support for year 2009. This represents an increase in its CHCF-A draw for 2008 of $3,589,024, or 259.2%, from its 2008 draw of $2,254,710.
This resolution authorizes total intrastate revenue in the amount of $15,316,206 for Ponderosa for the test year 2009. This represents a reduction of $1,694,293, or 11.06%, to Ponderosa's estimate of $17,010,499 for total intrastate revenue for 2009. This resolution also authorizes total intrastate operating expenses in the amount of $13,244,413 for Ponderosa for the test year 2009. This represents a reduction of $1,320,969, or 9.97%, to Ponderosa's estimate of $14,565,382 for total intrastate operating expenses for 2009. The Communications Division (CD) estimates that the total intrastate rate base amount for Ponderosa is $20,719,889 with an overall intrastate ROR of 10.00% for the test year 2009. This represents a reduction of $3,731,280, or 18.01%, to Ponderosa's estimate of $24,451,169 for total intrastate rate base for 2009. This resolution also authorizes CHCF-A support for Ponderosa for test year 2009 of $3,699,788 as estimated by CD. This amount represents an increase of $1,445,078, or 164.1%, from Ponderosa' CHCF-A 2008 support of $2,254,710, but is $2,620,612, or 41.46%, of Ponderosa's requested amount of $6,320,400. This difference is due to adjustments made to revenues, expenses and rate base estimates.
Appendix A to this resolution compares the Communications Division's (CD) and Ponderosa's test year 2009 Total Company Results of Operations at present rates and before any CHCF-A adjustment, Appendix B compares CD's and Ponderosa's Interstate and Intrastate Results of Operations at present rates and before any CHCF-A adjustment while Appendix C compares CD's and Ponderosa's Intrastate Results of Operations estimates after Ponderosa's proposed CHCF-A adjustment and after CD's proposed CHCF-A, revenue, expense, and rate base adjustments. Appendix D shows CD's calculation of the Net-to-Gross Multiplier and the changes in the gross intrastate revenue requirement based on an adopted intrastate rate of return of 10.00%.
