ATTACHMENT I

Revised Version of T-17157

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Communications Division	RESOLUTION T-17157
Carrier Branch	January 29, 2009

R E S O L U T I O N

Resolution T-17157. Ducor Telephone Company (U-1007-C). General Rate Case Filing in Compliance with G.O. 96-B, Paragraph VI.

By Advice Letter Nos. 318, 318A filed on December 19, 2007, and July 21, 2008 respectively.

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Summary

This resolution addresses the General Rate Case filed by Ducor Telephone Company (Ducor) through Advice Letter (AL) 318 and 318A on December 19, 2007, and July 21, 2008, respectively in compliance with G.O. 96-B, Paragraph VI. Ducor proposes: a) an increase in the CHCF-A support of $1,211,337, which represents a 68% increase in CHCF-A support for the year 2009. The total proposed 2009 CHCF-A support would be $2,993,395; b) various changes to its tariff schedules (see discussion).

This resolution authorizes total intrastate revenue in the amount of $4,053,739

for Ducor for the test year 2009. This represents a reduction of $297,041 to Ducor's estimate of $4,350,780 for total intrastate revenue for 2009. The total intrastate rate base amount for Ducor is $6,507,721 with an overall intrastate rate of return of 10.00% for the test year 2009. Ducor is requesting a total intrastate rate base amount of $6,538,434 and an authorized overall intrastate rate of return of 10.00%. This resolution also authorized CHCF-A support for Ducor for test year 2009 of $2,514,516. This amount represents a decrease of $478,879 or 16.00% less from Ducor proposed CHCF-A 2009 support of $2,993,395. This difference is due to adjustments CD made to revenue, expense and rate base estimates.

Appendix A to this resolution compares the Communication Division's and Ducor's Test Year 2009 Total Company Results of Operations before any CHCF-A adjustment to reflect the 10.00% intrastate rate of return. Appendix B compares the Communication Division's (CD) and Ducor's Test Year Total Company Separated Results of Operations before any CHCF-A adjustment. Appendix C compares Ducor's and CD's Intrastate Results of Operations estimates for test year 2009. Appendix D shows CD's calculation of the Net-to-Gross Multiplier and the change in the gross intrastate revenue requirement based on the recommended intrastate rate of return of 10.00%.