Volcano Telephone Company General Rate Case
Volcano Telephone receives a subsidy from the California
High-Cost Fund-A, the company is required to justify the reasonableness of
its business expenditures through a regular General Rate Case before the CPUC.
The purpose of the High Cost Fund is to minimize the rate disparity of
basic telephone services between rural and metropolitan areas. The fund is
subsidized by all California telephone customers via a surcharge on their bill.
December 2015, Volcano Telephone Company filed an Application
requesting CPUC approval to modify its rate design:
a14.51% return on Rate Base, which is being determined in the Cost
of Capital proceeding.
February 18, 2016 the CPUC issued a Ruling
setting the scope and schedule for the proceeding.
On June 23, 2016, ORA and Volcano submitted a Settlement Agreement that would resolve all issues in the proceeding. The following table compares the results of the settlement to parties' litigated positions:
based on an assumed
return of 14.51%
*Actual rate of return to be determined in Cost of Capital proceeding.
Public Participation Hearing was held on April 11, 2016 at 5pm at the Jackson
Rancheria Casino Resort, Ballroom B, 12222 New York Ranch Road, Jackson, CA.
final CPUC Decision is expected by the end of 2016. The new rate is proposed to
begin January 1, 2017.
performed an in-depth analysis of Volcano’s Application to ensure that its
request complies with state goals. ORA supports the Settlement Agreement because it will provide safe and reliable telephone service at the
lowest rates, in order to keep telephone service affordable for all
ORA’s review included ensuring that Volcano's request complies
with state law that its subsidy for the California High Cost Fund-A is not
excessive. ORA recommends that the CPUC should:
a total of approximately $6 million in High Cost Fund subsidy, compared with
Volcano's $7 million request (the final total recommendation will be
determined by the outcome of the Cost
of Capital proceeding).
modification to FCC corporate expense caps, which determine total corporate
costs proportional to affiliates’ benefits.
April 25, 2016 Testimony
with its full report on Volcano's Application.
January 4, 2016 Protest
to Volcano’s Application.
CPUC Proceeding Docket
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