DS 97-256
Hollis Telephone Company
Request to Introduce Custom Calling Features and Integrated
Services Digital Network (ISDN)
Order NISI Granting Conditional Approval
O R D E R N O. 22,839
January 21, 1998
On December 22, 1997, Hollis Telephone Company (HTC),
petitioned the New Hampshire Public Utilities Commission
(Commission) for authority to introduce custom calling features
and Integrated Services Digital Network (ISDN) services pursuant
to RSA 374:22 and RSA 374:26. The proposed effective date is
January 22, 1998.
Staff has reviewed the petition and the ISDN cost study
details. Although the petition did not include cost details on
custom calling features, Staff believes the rates for custom
calling services are in excess of costs. Many independent
telephone companies have recently introduced custom calling
features and advanced custom calling features at minimal extra
costs. Costs, which were supported in other dockets for other
companies, are minimal because such custom calling features are
inherent in their central office switches. Therefore, companies
such as HTC incur only a minimal cost to provide these additional
features and services to their customers. As HTC custom calling
rates are similar to the custom calling rates of other
independent telephone companies, Staff believes the petition
demonstrates that rates are in excess of costs.
HTC did provide cost study details for ISDN services.
The cost study demonstrates that the proposed rates for ISDN
services exceed costs. The study assumes, however, that HTC has
the demand for 100 ISDN lines. If demand expectations are not
achieved, incremental ISDN costs will exceed ISDN rates. HTC
has reported to Staff that 25 customers have made inquiries
about ISDN since 1995. Staff recommends approval on the
condition that HTC stockholders assume the cost of providing ISDN
services in any future rate proceeding if demand for ISDN falls
short of the 100 ISDN line expectation.
We have reviewed the petition and Staff's
recommendation. Because the proposed rates exceed incremental
costs, we find the tariff revisions to be in the public interest
and will order approval of HTC's petition. However, since the
incremental cost of providing ISDN services exceeds the rates
based on current demand, we find that HTC stockholders should
bear the cost of providing ISDN services if, at the time of a
future rate proceeding, the demand for ISDN is still below the
100 line expectation.
Based upon the foregoing, it is hereby
ORDERED NISI, that HTC's petition to introduce custom
calling features is APPROVED; and it is
FURTHER ORDERED, that HTC petition to introduce ISDN
services is APPROVED on the condition that HTC stockholders
assume the incremental cost of providing ISDN in a future rate
proceeding; and it is
FURTHER ORDERED, that pursuant to N.H. Admin. Rules,
Puc 1604.03 or Puc 1605.03, the Petitioner shall cause a copy of
this Order Nisi to be published once in a statewide newspaper of
general circulation, such publication to be no later than
January 28, 1998 and to be documented by affidavit filed with
this office on or before February 4, 1998; and it is
FURTHER ORDERED, that all persons interested in
responding to this petition be notified that they may submit
their comments or file a written request for a hearing on this
matter before the Commission no later than February 11, 1998;
and it is
FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so no
later than February 18, 1998; and it is
FURTHER ORDERED, that this Order Nisi shall be
effective February 20, 1998, unless the Commission provides
otherwise in a supplemental order issued prior to the effective
date; and it is
FURTHER ORDERED, that the Petitioner shall file a
compliance tariff with the Commission on or before February 20,
1998, in accordance with N.H. Admin. Rules, Puc 1603.02(b).
By order of the Public Utilities Commission of New
Hampshire this twenty-first day of January, 1998.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Claire D. DiCicco
Assistant Secretary