PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Communications Division	RESOLUTION T-17184
Licensing, Tariffs, Rural Carriers and Cost Support Branch	December 18, 2008

R E S O L U T I O N

Resolution T-17184 Calaveras Telephone Company, Inc. (U-1004-C). General Rate Case Filing in compliance with G.O. 96-A, Paragraph VI, and Decision Numbers 01-02-018 and 01-05-031.

By Advice Letter No. 303 filed on December 21, 2007.

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Summary

This resolution addresses the General Rate Case (GRC) filed by Calaveras Telephone Company (Calaveras) through Advice Letter 303 in compliance with D.01-05-031. Calaveras proposes; a) no changes to its basic rates or charges, however the company proposes increases to some optional services and one-time 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 rate of return granted in its previous GRC filing in 2003, and c) $3,404,944 in California High Cost Fund-A (CHCF-A) support for year 2009. This represents an increase in its California High Cost Fund-A (CHCF-A) draw for 2008 by 425% or an increase of $2,755,822 from its 2008 draw of $649,122.

This resolution authorizes total intrastate revenue in the amount of $6,231,844 for Calaveras for the test year 2009. This represents a reduction of $1,124,047 to Calaveras' estimate of $7,355,891 for total intrastate revenue for 2009. The Communications Division (CD) estimates that the Total Intrastate Rate Base amount for Calaveras is $10,424,406 with an overall Intrastate Rate of Return of 10.00% for the test year 2009. This resolution also authorizes the CHCF-A support for Calaveras for test year 2009 at $1,998,083 as estimated by CD. This amount represents an increase of $1,348,961 or 208% from Calaveras' CHCF-A 2008 support of $649,122 but is $1,406,861 or 41.32% less than what Calaveras is requesting. This is due to adjustments made to revenues, expenses and rate base estimates.

Appendix A compares the CD's and Calaveras' Test Year 2009 Total Company Results of Operations before any CHCF-A adjustment. Appendix B compares CD's and Calaveras' Interstate and Intrastate Results of Operations before any CHCF-A

adjustment to reflect the 10% intrastate ROR. Appendix C compares CD's and Calaveras' Intrastate Results of Operations estimates after Calaveras and CD's proposed CHCF-A increase and after CD's proposed adjustments. Appendix D shows CD's calculation of the Net-to-Gross Multiplier and the change in the gross intrastate revenue requirement based on an adopted intrastate rate of return of 10.00%.