II. Background
Cal-Ore is a California corporation operating as a public utility telephone company under the jurisdiction of the Commission. Cal-Ore is owned 100% by the California-Oregon Telecommunications Company, a California corporation, which is owned 100% by Cal-Ore Acquisition. Cal-Ore Acquisition is owned 100% by LICT Corporation. COC, a California corporation, is also owned 100% by California-Oregon Telecommunications Company and is the internet service provider within Cal-Ore's service area.
Cal-Ore is the incumbent local exchange carrier furnishing telecommunications services in its Dorris, Macdoel, Tulelake, and Newell exchanges located in portions of Modoc and Siskiyou Counties, California. Cal-Ore's property is comprised of wire, cable, land, easements, central office equipment, buildings, and other pertinent equipment necessary for the rendition of telephone service.
Cal-Ore currently provides voice, digital subscriber line (DSL), and long distance services. Cal-Ore has approximately 130 miles of fiber and 500 route miles of copper. Cal-Ore asserts that it uses two Nortel DMS-10's for switching that will be converted to a MetaSwitch in year 2011. Cal-Ore states that it can reach approximately 75% of its customers with digital subscriber line (DSL) service over its telephone lines and has over 800 DSL subscribers.
A. Financial Information
In its unaudited Income Statement for the three months ending March 31, 2010, shown as Exhibit B in Application (A.) 10-11-008 (Application), and information provided by Cal-Ore on January 3, 2011, Cal-Ore reported that it generated total operating revenues of $1,926,056 and a net income of $675,117. Cal-Ore's unaudited Balance Sheet, shown as part of Exhibit B, is summarized in the following table.
Table 1
Unaudited Balance Sheet
For the three months ending March 31, 2010
Assets Amount
Current Assets $ 4,446,453
Non-Current Assets 7,794,928
Net Property, Plant, and Equipment 8,022,587
Total Assets $20,263,968
Liabilities & Stockholder's Equity
Current Liabilities $ 4,990,029
Long Term Debt5 941,552
Deferred Income Taxes 400,185
Common Stock 47,800
Other Capital 2,310,800
Current Period Net Income/Loss 675,117
Prior Year Retained Earnings 10,898,485
Total Liabilities & Equity $20,263,968
5 Cal-Ore's long-term debt is a liability resulting from Decision 10-06-029, in which the Commission required Cal-Ore to refund monies to ratepayers derived from the sale of Rural Telephone Bank stock.
