OF WEST1 V I K G I N T A CHARLESTON

PI"

Entered: -_..I....I_ June 9,. 1901

ClASE NO. 81-024-T-42T

3ARDY TELEPHONZ COMPANY, 2 c o r p o r a t i o n .

I n t h e matter of i n c r e a s e d rates and charges .

HEARING EXAMINER'S D E C I G I O N -

PROCEDURE

On January 1 6 , 1981, Hardy Telephone Company, a c o r p o r a t i o n , f i ,ed

3 new t a r i f f des igna ted P.S.C. W.Va. N o . 4 , c ancek l ing P.S.C. W.Va. No. 3

t h e r e i n proposing i n c r e a s e d ra tes and cha rges of approximately $ 3 6 , 0 0 0 . 0 0

m n u a l l y for prov id ing te lephone s e r v i c e t o approximately 1,060 customers

i n Hardy, Grant , Pendleton and Hagpshire Count les , t o become e f f e c t i v e

qarch 1, 1981.

By o r d e r e n t e r e d on February 2 7 , 1 9 8 1 , t h e Commission made Hardy

relephone Company Respondent t o t h i s proceeding , and pending hvestigation,

i e a r i n g , and d e c i s i o n , t h e a f o r e s a i d new t a r i f f was suspended and t h e

ise of t h e r a t e s and cha rges s t a t e d t h e r e i n d e f e r r e d u n t i l J u n e 2 9 ,

1981 . A t t h e e x p i r a t i o n of t h e suspens ion p e r i o d , t h e Respsndent was

su tho r i zed t o p l a c e i n t o e f f e c t t h e i n c r e a s e d

r a r i f f P .S .C. W.Va. N o . 4 a f t e r f i l i n g a ' b o n d

s i x Thosuand D o l l a r s ( $ 3 6 , 0 0 0 . 0 0 ) (I

By o r d e r e n t e r e d March 3 , 1931, t h e Corn

r a t e s contairicd i n i t s

i n t h e amount- of T h i r t y

ss ion o rde red t h a t t h e

natters involved h e r e i n be se t f o r h e a r i n g t o be h e l d on March 1 2 , 1981,

in t h e E a s t Hardy High School , Baker, W e s t V i r g i n i a , a t 7:OO p.m., EST.

Leave w a s g ran ted t h e r e i n t o anyone interested t o appear a t t h e h e a r i n g

md make o b j e c t i o n t o t h e i n c r e a s e d r a t e s and cha rges as t h e y might

Yesire. Hardy Telephone Company w a s r e q u i r e d t o give n o t i c e of t h e

E i l ing of i t s new t a r i f f , and of t h e time and p l a c e set for hea r ing

thereon by p o s t i n g a copy of t h e o r d e r f o r a p e r i o d of a t l e a s t f i v e ( 5 )

j ays p r i o r t o t h e d a t e set f o r h e a r i n g , f o r p u b l i c i n s p e c t i o n , and by

i n s e r t i n g a copy of t h i s o r d e r i n a l l b i l l s rendered fo r te lephone

s e r v i c e p r i o r t o t h e 1 2 t h day of March, 1 9 8 1 , making proper c e r t i f i c a t i o n

to the.Commission t h a t due n o t i c e has been given on or b e f o r e t h e day

PUBLIC SSRVICI 69MMlSSION

QC E o Y L A

Testimony presented at the hearing indicated that proper posting

md mailing were successfully accomplished as required by the Commission

.n its March 3, 1981, order. (Tr., pp. 120-121).

The hearing was held as scheduled and appearances were made by

lttorney Oscar M. Beane on behalf of the Respondent; by Attorney Joel B.

jhifman on behalf of the Legal Division of the Commission; and by Dannie

J. Walker on behalf of the Engineering Division of the Commission. In

tddition, the following persons appeared at the hearing, several of whom

;estified to protest the proposed rate increase:

Charles F. Mongold Ralph and Marie Miller June J. Mathias Debbie Hines Catherine Ashby B. D. Mathias Beverly Walterman Mrs. Allen Barb Mrs. J. T. Riddle Jean Edgerton Sylvia Mongold Mary Park Michael Park Gordon W. Miller Mr. and Mrs. Dewey Mongold Charles Wilkins Glenn Mathias Leona Smith Stanley Reynolds Chole Wilkins Christine A. Delauder Kenneth A. Funkhouser Glenn Bradfield Mabel Fogle Russell W. Fitzwater Minnie Heishman Lona Wilkins Dennis E. Zisk E. 0. Funk Diana Lang Deborah Copenhaver Mardley Dair Raymond Snapp Raymond W. Wilkins Gale Wilson Ernest J. See W. H. Judy, Jr. Ethel Wilkins Stanley Trumbo R. K, Stinenson Quentin Jenkins Wendell Mathias Denise Fansler Don Biller Mark L. Sevel Max Park

George D. Witt Golda W. Ritchie Elaine Wilkins Mattie Miller Evelyn See Lola Stultz Allen J. Barb Melvin A. Fitzwater Jerry Speaker Ada Henry Lethia Whetzel Miles Park Berlyn Park D, D. Wilkins Hilda Wilkins William S. Haines Susan D. Mathias Beele Poland Nancy Brill Joyce Jenks Mavis Tusing Marvin Bott Paul Fogle William 11. Delaney Warren B. Haskell Daisy Gochenour 0. B. Wilkins Vanis and W. Tom Halterman Linda M. Funk Betty May James H. Copenhaver Elizabeth M. Snapp R. Dean Miller Dairtel T . See Charles R. Witts Charles Socher W. Sherman Ervin Wilkins W. Eldon Neff E. Nutter H. L. Cole, Jr. Doris E. Fansler Lorenzo Caldwell A. L, Strawderman Ernest Dove

'revision was made during the course of the hearing for the submission

)f Respondent's Exhibit No. 1, the Respondent's Rule 42 Exhibit;

tespondent's Exhibit No. 2, a Report on Examinations of the records for

:he years ended December 31, 1980 and December 31, 1979; Respondent's

Exhibit No. 3 , a Cash Flow Statement: and Respondent's Exhibit No. 4,

the Interest Coverage Statement. Provision was also made at the hearing

for receipt of a post-hearing exhibit (Respondent's Exhibit No. 5), whial

was to set forth the Respondent's interest and principal payments for the

years 1981 - 1990. At the conclusion of the taking of testimony and the

presentation of evidence, and pending the receipt of Respondent's Exhibit

I

No. 5 and a joint proposed order, this matter was submitted to the

Hearing Examiner for a decision.

Respondent's Exhibit No. 5 was received on March 17, 1981. A

stipulation in lieu of a joint proposed order was received on June 3, 1981

DISCUSSION OF THE EVIDENCE INCLUDING FINDINGS OF FACT

For the purpose of this order, reference to the I

transcript will be by the initials of the testifying witness followed by the pertinent page of the trans- cript in this manner: (ABC, p. 0 ) . Exhibits will be referred to as marked and/or entered into evidence.

LIST OF CITED WITNESSES

RDA - Richard D. Arehart DS - Dwight Shrader I ws - Wayne Strawderman EW - Elaine Wilkins DH - Debbie Hines BDM - 13. D. Mathias AB - Allen Barb JS - Jerry Speake cw - Charles Wilkins ED - Earnest Dove GR - Golda Ritchie JJ - Joyce Jenks DF - Denise Fansler

Hardy Telephone Company (sometimes hereinafter "Hardy") is a small

zooperative (non-profit) telephone utility currently serving approximate1

1,060 customers in Hardy, Grant, Pendleton and Hampshire Counties. The

iwners of the utility are khe syitem's subscribers. Through this

:ariff filing, Hardy has proposed to increase its total revenues through

increased rates and charges by approximately $36,157.00. (Respondent's

Zxhibits Nos. 1 and 3 and RDA, p. 30). During the course of the hearing

in this matter, two broad issues were raised: One concerned whether or

lot the proposed rate increase should be granted, and the second concerne

;he quality of service currently being rendered by Hardy. The two

Lssues will be discussed in the same order enumerated above.

Appearing on behalf of Hardy to support its rate increase was its

2ccountant, S. B. Hoover and Company. Two representatives of that firm,

Richard D. Arehart and Dwight Shrader, presented the audited Statements

2f Hardy which were prepared from their examinations of Hardy's books

m d records. Those statements indicate that the Company had n e t losses

2 5 $7,525.00 in 1979, and $71,800.00 in 1980. (RDA, pp. 11-12, and DS,

-3- PUBLIC SERVICE COMMIS8ION

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pp. 42-43). They also indicated that Hardy's liabilities exceeded its

sssets--it has a deficit net worth. Finally, Hardy's working capital--

the excess of current assets over current liabilities--decreased

$196,458.00 in 1980 after having increased by $90,282.00 in 1979. This

is a good indication that Hardy may soon be unable to meet its current

zxpenses; in layman's terms, Hardy would be considered insolvent. (RDA,

pp. 11-13, and 17-19, DS, pp. 42-43, and Respondent's Exhibit No. 2).

Hardy's accountant has reviewed the pending rate increase applica-

tion, and feels it is justified and needed. Furthermore, it feels that

the increase requested may be inadequate to meet future years' operating

zxpenses. This feeling is based on known increases in expenses which

Mill occur in 1981 and subsequent years: In 1981 an additional $45,000.0

in interest expense, and an additional $100,000.00 in depreciation

ixpense will occur. Further increases in expense levels are expected in

the immediately ensuing years. See Respondent's Exhibit No. 5. Also,

the Company's cash position decreased $21,143.00 in 1980, and even if

the proposed rate increase is granted, it is estimated that i: will

iecrease further by at least $30,000.00 in 1981. Thus, while the rate

increase applied for in this matter, if granted, would help offset the

iurrent deficit, and would help improve the Company's cash position, its

long term sufficiency is questionable. (RDA, pp. 20-24, and Respondent's

Exhibit No. 3).

The large increase in interest payments and depreciation which will

xcur in 1981 are a direct result of loans incurred by Hardy to finance

recent expansion and major improvements to the Company's system. The

zxpected increases in expense levels, the ongoing construction project,

m d management's position with regard to this rate case, are reflected

in its accountant's 1980 audit report which has been drafted for discus-

sion purposes:

"During the year [1980] , REA [Rural Electrification Administration] approved a $3,000,000 loan to be used for the construction project. . . . The Company requested and was advanced $2,177,000 during 1980 for capital expenditures. Additional funds will be required during 1981 to complete the project: these funds will be advanced from REA as needed. The financing provided by REA is restricted in use, generally, to approved equipment acquisitions and capital improvement projects."

"The project [of upgrading and expanding their plant] will give the Company the ability to provide one-party service for all of their subscribers and is expected to be in service early in 1981. . . . ' I

"It should be noted that the Company expects to experience an additional $45,000 of interest expense and approximately

PUBLIC B I R V I C E CQMMISSION -4-

$100,000 of additional depreciation during 1981. These additional expenses will be generated by the completed construc- tion project and the related loan from REA."

"The new construction will permit the Company to provide an estimated 200 potential subscribers with service. It is expected that these new subscribers will generate approximately $23,000 of local service revenue and $31,000 of toll revenues."

"In management's view, the rate increase applied for, if granted by the Public Service Commission, will not be sufficient to offset current operating deficits. Accordingly, it is management's opinion that further rate relief must be forth coming if the Company is to remain viable and offer an acceptable service." (Notes 2-4 to Respondent's Exhibit No. 2).

As noted above, what the future holds for Hardy Telephone Company

is not known. It is known that expenses will increase, but there will

i l so be new customers who will contribute additional revenues to Hardy's

iperation. It is not known when the new customers will start receiving

service and contributing revenues to the system's operation. The Company

is also investigating a cost separation study on its toLl calLing costs

rhich could result in more toll revenue to the Company. However, at

:his point in time it would be highly speculative to consider the likely

results of such a survey. Despite these unknowns, it is known that

3ardy needs all the rate increase requested at this time; it may need

nore in the future. (RDS, pp. 30-40, and DS, pp. 4 7 - 5 2 ) .

The second issue raised during the course of the hearing on this

natter concerned the quality of service being rendered by Hardy Telephone

Zompany. The overall quality of service will be affected in a positive

nanner by the current construction project which is on-going, and in fact

service may have improved as of this date. However, to insure that the

iew electronic equipment and other improvements do result in better

service, the statements of the protestants made at the hearing should be

:onsidered, and their concerns addressed by both the Hearing Examiner,

m d Hardy Telephone Company, Inc.

The best testimony concerning service problems associated with the

;ervice being rendered by Hardy Telephone Company was presented by Elaine

rJilkins. In general, her phone service has been terrible for several

{ears, and she has been anxiously awaiting the new equipment to see if it

solves her problems. The main problems she has experienced with her

;ervice have been: noise on lines, including static and clicking, accurat

lialing reaching an incorrect number, cut-offs of long-distance calls,

2nd her phone not ringing in when someone is calling her. She also

PUBLIC BERVlCE COMMI1SION -5-

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:omplained of the fact that in certain situations where she cannot

:omplete a local call, it is a toll call for her to place the call

:hrough the operator. Mxs. Wilkin's testimony was for the most part

Terified and seconded by the other witnesses who testified, and also thos

Iersons present at the hearing. (EW, pp. 63-67, DH, pp. 73-74, BDM, pp.

76-79, AB, pp. 81-84, JS, pp. 86-92, CW, pp. 94-96, GR, pp. 99-100, JJ,

1. 102, and DF, p. 107).

Elaine Wilkins, along with several other witnesses, also indicated a

lesire to have circle calling available to them so that the expenses

issociated with long distance calls might be reduced. The telephone

:ompany is willing to cooperate in the effort to obtain circle calling,

ind already has exerted some efforts to that end. (EW, p. 68, BDM, p.

76, and WS, pp. 1 2 5 - 1 2 6 ) .

Although some persons at the hearing were completely opposed to the

rate increase regardless of whether or not service improves, most persons

iere agreeable that if the service improves, then a rate increase would

,e acceptable, or at least understandable. (EW, pp. 71-72, AB, p. 84,

ind CW, pp. 9 5 - 9 6 ) .

Some other complaints unique to certain individuals were also

irought out at the hearing and in letters of protest sent to the Commis-

Debbie Hines was promised a phone two years ago as of May 1981, and two deadlines were given for pro- viding a phone to her. Both deadlines have passed, and as of the time of the hearing, no phone had been provided. (DH, p. 7 3 ) .

Denise Fansler also does not have phone service, but wants it. She had previously made the necessary application. (DF, p. 1 0 7 ) .

Charles Wilkins has been trying to get an extension f o r his phone, and is also in need of a special device for hearing impaired persons. (CW, p. 94, and WS, pp. 1 1 5 - 1 1 8 ) .

Golda Ritchie was having a problem with a continuous ringing of her phone. It was pointed out at the hearing that this problem could be a final connector, but it was not definite. (GR, pp. 9 9 - 1 0 0 ) .

Hilda Wilkins in a letter of protest noted she was having problems with her service.

Dallas Forren in a letter of protest noted he was having problems with his service.

In response to complaints presented at the hearing, the Staff

cepresentatives of the Commission's Legal and Engineering Divisions

?remised to handle each complaint in their normal fashion. By this it

das meant that each complaint would, be required to be investigated by the

PUBLIC eERVlCd COMMISSION -6- - m

Company, and a report made to the Staff to see that it was fully resolved

Any necessary follow-up by the Staff will be made. (JJ, pp. 104-105).

Appearing on behalf of the telphone company was Wayne Strawderman.

Mr. Strawderman is the Manager of Hardy Telephone Company. He admits

that the Company has had problems with phone service in the past. How-

ever, he pointed out the extent to which the Company has gone to impKove

on those problems. In February of 1981 the system was "routined" at a

cost of approximately $1150. At that time twenty-six switches were

for service. Mr. Strawderman and his small staff are attempting to

complete all requests for both new service and service extensions. (WS,

p. 118).

There were also some complaints raised at the hearing concerning

employees receiving rates which were the equivalent of one-half the rates

seing paid by normal subscribers. It was noted that this special rate

repaired or replaced in two different switching offices. Further, Eden-

burg was contacted about a problem it was having with the talk power

being set too low. (WS, pp. 109-111).

In order to permanently improve service, the major construction

program referred to above is being implemented and is nearing completion.

The Company is attempting to install cable of good quality, and also is

installing certain "proven" electronics. At the time of the hearing,

only one section of line was completely installed and had been turned

over to the Company. There were still seven sections of line left to be

completed and turned over. It was estimated that the system would be

turned over to the Company near the end of March. (WS, pp. 112-115).

Once the system is turned over to the Company, it will still take

some time before Mr. Strawderman and his five helpers can complete all

work necessary to render quality telephone service. However, once all

--

was being provided in exchange for the telephone company personnel

remaining available to answer and transfer trouble calls.

names are to be listed with their telephone numbers in the front of the

phone directory. Staff had no objection to this particular procedure

Employees

due to the special circumstances involved. (WS, pp. 131-132).

ULTIMATE FINDINGS OF FACT

1. Hardy Telephone Company's existing rates are inadequate, and

it is in dire need of the entire rate increase requested in this proceed-

ing in order to partially offset the costs associated with the recent

major construction program which was undertaken to improve the quality

Df telephone service rendered by it.

2. In general, the service received by the subscribers to the

system is aggravating because it is inadequate. However, service can be

expected to improve in the near future once all the remaining work

associated with the installation of new equipment is completed.

3. Several individuals who testified at the hearing, and several

Df the persons who wrote letters of protest to the Commission, had

specific concerns about, and problems with, their telephone service.

4. Hardy Telephone Company is willing to work with its subscribers

to obtain circle calling in the area.

DISCUSSION OF APPLICABLE LAW INCLUDING CONCLUSIONS OF LAW

The jurisdiction of the West Virginia Public Service Commission

extends to all public utilities. W.Va. Code Ann. S24-2-1. It is the

duty of the Commission to enforce and regulate the practices, services,

snd rates of public utilities in order to provide for the availability

3f adequate, economical and reliable utility services. W.Va. Code Ann.

§24-1-l(a). Whenever the Commission after hearing finds any existing

rates or tariffs to be unjust, unreasonable, insufficient, or unjustly

discriminatory, the Commission is required to fix, by order, reasonable

rates, tariffs, tolls or schedules to be followed in the future in lieu

Df those found to be unjust, unreasonable, insufficient, or unjustly

discriminatory. W.Va. Code Ann. §24-2-3. Rates as set by the Public

Service Commission of West Virginia are presumed to be valid and reason-

2ble until such time as a judicial investigation and determination are

nade by the Commission that the existing rates are in fact unreasonable.

PUBLIC SERVICE COMMISSION OF WEST VIRGINIA

B N

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United Fuel Gas Co, v. Public.Service Commission 174 S.E.2d, 304 (W.Va.

1969), and State ex rel. Public Service Commission v. B & 0 RR, 76 W.Va.

399, 8 5 S . E . 714 (1,915). - <

As previously found above, the rates and charges set forth in Tariff

P.S.C. W.Va. No. 3 are inadequate, and therefore insufficient, to provide

the revenues necessary to allow Hardy Telephone Company to operate. The

rates and charges set forth in P.S.C. W.Va. No. 4 are for the most part

just and reasonable, and were stipulated to by both Hardy and the Commis-

sion Staff. So that the entire tariff and its provisions are just and

reasonable, and not unduly discriminatory, certain provisions in that

tariff should be changed.

The line extension charges set forth in Part 111, Section 13 should

be modified so that the construction costs borne by a customer are just

and reasonable. Those charges should be modified to read as set forth is

Appendix €3 of this decision. As set forth in that Appendix, the customer

is insured that he will bear only his fair share of the line extension

cpsts.

The utility should also modify its "maintenance visit charge" i

listed under "other charges" in Section 22 of Part I11 of P.S.C. W.Va.

No. 4. This operation of the tariff should be changed to read as set

forth in Appendix C. This will make the tariff just and reasonable by

preventing a fraudulent caller from causing an innocent customer to bear

the cost of a maintenance visit not requested by him.

Next, there are several references throughout P.S.C. W.Va. No. 4

to "dishonored checks, "returned checks, 'I "late payment" penalty,

"Penalty on bill," and charges for those items. No evidence was present€

at. the hearing to justify such charges, and therefore these charges

should be deleted, along with all references to them contained in P.S.C.

W.Va. No. 4. This would include listing qnd references contained in:

Part I, Sheets.2, 3, 7, and 8; Part 11, Sheets 4, 6, 31, and 32; Part 111, Section 22, Sheet 10; Part 1x1, Section 25, Sheet 1; and any other references to such a charge inadvertently omitted and not listed above.

all rates and charges in P.S.C. W.Va. No. 4 are j u s t and reasonable

after modification to encompass the above changes.

Besides regulating rates, this Commission also has the responsibilit

of insuring that adequate and reliable telephone utility service is

rendered to all customers served by telephone utilities. As was pointed

out at the hearing, not all Hardy Telephone Company customers have been

p.. "'., .. - PUOLIC SCRVICL COMMI8SION -9- - I OF -1NlA

-eceiving this type of service. Therefore, this Commission needs to

*equire that certain actions be taken by Hardy so that it fulfills its

itility obligation, and this Commission-complies with its statutory du,y.

'he following actions should be taken by Hardy Telephone Company on or

Iefore August 3 1 , 1981:

1. Have phone- service installed, as requested, to both Debbie Hines and Denise Fansler, and also provide service to all other existing held (unserved) orders for new service.

2 . Have installed at the Charles Wilkins residence, a phone extension and a special device for hearing impaired persons.

3 . Investigate and resolve the problem Golda Ritchie is having with the cQntinuous ringing of her phone.

4. Investigate the problems being expereienced by Hilda Wilkins and Dallas Forren with their respective phone service.

5 . Report to Dannie Walker of the Commission's Engineering Division on compliance with these requirements and the results of its investigations and what actions have been taken.

To further comply with its public utility obligation, Hardy Telephon

Iompany should :

1. expedite its efforts to make a filing with this Commission

2 . continue its efforts to complete installation and other work associated with the new equipment which is designed to improve the phone service so that it will ultimately meet Commission standards; and

for circle calling as requested by its customers;

3 . work with the Commission Staff to eliminate the problem of some calls which are placed through the operator being long distance, while they would be local calls if successful call-completions could be made when dialed direct.

'It should be noted that the tariff filing made by Hardy Telephone

:ompany in this matter did not contain the necessary letters indicating

rhere changes in its tariff were occurring. While this particular tariff

iiling was accepted, any future tariff filings which do not contain the

iecessary letters indicating changes in the tariff will be rejected as

.mproperly filed and not in accordance with the Rules and ReguLations

lor the Government of the Construction and Filing of Tariffs of Public 1.

Jtilities, specifically Paragraph 16 of those rules. Without a proper

riling containing such letters, an impossible burden is placed on this

:ommission to sift through the new tariff and the immediately preceding

m e to discover where all changes in the tariff are occurring.

I i .

1. ' The rates and charges contained in P.S.C. W.Va. No. 3 are

unjust and unreasonable.

2. The rates ahd charges set forth in Appendix A and in P.S,C.

W.Va. No. 4 are jusC and reasonable when modified so that:

a , The language concerning "Line exteneion charges" set forth in Part 11, Section 13 of that tariff reads as set forth in Appendix B of this decision. ,

set forth in Part 111, Section 22, reads forth in Appendix C of this decision.

checksl "late payment" penalty, "penalty on bill" and charges therefor are deleted.

b. The "other charges" portion of t-he "servi

c. All references to "dishonored checks, "r.eturned,

3. As is shown in Appendix A, the just and reasonable rates and

zharges will still result in a deficit cash-flow for Hardy Telephone

2bmpany.

4. To comply with its public utility obligation, Hardy Telephone

Zornpany should :

a, continue its efEort to improve its sy em SQ that it meets the standards of this Commissio with regard to telephone service;

available to its customers. All efforts to this end should be expedited; and

c, work with the Commission Staff to eliminate the problem of some calls which are placed through the operator being long distance, while they ,would be local calls if successful call-completions could be made when dialed direct.

b. work with its subscribers to make circle calling

5. Hardy Telephone CPmpany should work to correct the individual

experienced by persons appe ing at the hearing, and also

those persons who wrote letters of protest o the Commission informing

the Commission of cert*ain problems. The Staff of the Public Service

Commission should perform adeguate follow-up work to insure that all

these problems are adequately resolved 'as was promised ak the hearing.

6. The next tariff filing by Hardy Telephone Company must be

properly filed and must inclu letters indicating any changes it is

proposing in i$s tariff.

ORDER _I*c.

%

I T I S , THEREFORE, ORDERED:

1, That the rates and charges contained in P.S.C. W.Va. No. 4

and summarized in Appendix A of this decision, be approved after

modification as requiFed in Ultimate Ccraclusion of Law 1 above.

2. That the above-approved rates and charges be approved for use

lor all service rendered on and after June 1, 1981, but that Hardy

'elephone Company shall not back bill any of its customers when any

wevious billings have been for less than the approved rate.

3. That Tariff P.S.C. W.Va. No. 4 be stricken from the Commission'

riles and that Hardy Telephone Company file a new tariff containing the

ibove-approved rates and charges.

4. That Hardy.Telephone Company, on or before August 3 1 , 1981:

a. Have phone service installed, as requested, to both Debbie Hines and Denise Fansler, and also provide service to all other existing held (unserved) orders for new service.

b. Have installed at the Charles Wilkins residence, a phone extension and a special device for hearing impaired persons.

is having with the'continuous ringing of her phone.

Hilda Wilkins and Dallas Forren with their respective phone service.

e. Report to Dannie Walker Of the Commission's Engineer-

c. Investigate and resolve the problem Golda Ritchie

d . Investigate the problems being experienced by

ing Division on compliance with these requirements and what actions have been taken.

5. That Hardy Tephone Company:

a. continue its effort to improve its system so that it meets the standards of this Commission with regard to telephone service;

b. work with its subscribers to make circle calling available to its customers. All efforts to this end should be expedited; and

c. work with the Commission Staff to eliminate the ' problem of some calls which are placed through the operator being long distance, while they would be local calls if successful call-completions could be made when dialed direct.

6. That the next new tariff filing by Hardy Telephone Company be

xoperly filed and include letters indicating any changes it is propQsing

.n its tariff.

7 . That the Staff of the Public Service Commission work with

Iardy Telephone Company r>epresentatives to mqke circle-calling available

:o Hardy Telephone Company customers and t o eliminate the long 'distance

:all rates which applyiwhen an operator's assistanoe is required to

:omplete what would otherwise be a local call.

#

8. That the Staff of the Public Service Commission do all , necessar

iollow-up work to the individual problems set forth in ordering paragraph

JO. 4 above to insure that customer satisfaction is obtained, and keep

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:he Hearing Examiner informed of all actions taken by both the Commission

;taff and Hardy Telephone Company.

9. That the Executive Secretary serve a copy of this decision upon

:he Commission by hand delivery, and upon a l l parties of record by United

itates Certified Mail, return receipt requested.

10. That leave be,,and it hereby is, granted to the parties to file

rritten exceptions supported by a brief with the Executive Secretary of

:he Commission within fifteen (15) days of the date this order is mailed. 2

:f exceptions are filed, the partieq filing exceptions shall certify to

:he Executive Secretary that all parties of record have been served said

!xceptions.

11. That if no exceptions are so filed, that this decision shall

,ecome the order of the Commission, without further action or order, five

5 ) days following the expiration of the aforesaid fifteen (15) day time

)eriod, unless it is ordered stayed or postponed by the Commission.

12. That any party may request waiver of the right to file excep-

:ions to a Hearing Examiner's Decision by filing an appropriate petition

.n writing with the Secretary. No such waiver will be effective until

ipproved by order of the Commission, nor shall any such waiver operate to

lake any Hearing Examiner's Decision the order of the Commission sooner

.han five (5) days after approval of such waiver by the Commission.

Marc Halbritter Hearing Examiner

APPENDIX A Page 1 of 4

HARDY TELEPHONE COMPANY CASE NO. 81-024-T-42T

SUMMARIZATION OF APPROVED RATES

Residence Business

RATES

1. Service Order P rocess ing Charge

2. P r e m i s e V i s i t Charge

3. L i n e Connection Charges

Exchange Lines I Each PBX Trunks , Each

4 . Wiring Charges

a. S tandard Wiring, Per Connecting Apparatus

b. P r e - I n s t a l l e d Wiring, P e r Order (1) From 1 t o 3 Connection

Apparatus Loca t ions

( 2 ) Each Add i t iona l Connecting Apparatus Loca t ions

5. S t a t i o n Handling Charges

a. Telephones f o r u se w i t h 4- conductor j a c k s , connected or changed, each

6. Other Charges

a. Maintenance V i s i t Charge

b. Denied S e r v i c e Restoral Charge

c. Maintenance charge on customer-

d. Modular J ack Charge

e. C r e d i t a l lowance f o r se t recovery

f . Voice J a c k s

provided equipment

7. Charges fo r c o n v e r t e r s :

a. 4-conductor non-minature j a c k t o 4-conductor mina ture j a c k

b. 12-conductor j a c k t o a &con- d u c t o r j a c k

c. S i n g l e connec t ing p o i n t , 4-con- d u c t o r j a c k t o double connect- i n g p o i n t c a p a b i l i t y

$ 4 . 0 0 , $ 4 . 0 0

7 .50 7 .50

4.00 4 .00 5.00 5 .00

7 .00 7.00

15 .00 15.00

4 .00 4 .00

2.50 2.50

25.00 25.00

12.00 12.00

25.00 25.00

5.00 5 .00

7.50 7.50

5.00 5.00

3.00

9.50

7.50

3.00

9.50

7.50

PUBLIC SERVICE COMMISSION

R

APPENDIX A Page 2 of 4

MISCELLANEOUS Monthly Rate

Residence Business

8. Additional Directory Listings $ .75 . 7 5

9. Nonlisted telephone service

10. Nonpublished telephone service

11. General Service Charges II a. One Party

b. Four Party

c. Extension Station

d. Zone Charge (per zone)

. 5 0 . 5 0

1 . 0 0 1 . 0 0

12 .25 1 7 . 2 5

9.75 1 3 . 7 5

2.00 2 .25

2.75 2 .75

12. Credit to monthly rate for customer- provided equipment . 7 5 . 7 5 ll

13. Mileage charges per 1/4 mile, where applicable 1.25 1 . 2 5

Monthly Installation Rate ----F-- $

14. Extension bells

a. Regular type, bell or buzzer 3.00

b. Loud 3.00

.30

.60

c. Tone Ringer 3.00 1.50

d. Bell, horn or chime with self contained unit 3.00

e. Bell or horn with relays for explosive atmospheres 3.00

15 . Non-standard telephones

a. Provided by company

b. Not provided by company, modification required

c. Not provided by company, modification is required

16. Extension Cords

a. 9 feet coiled

b. 15 feet coiled

c. 25 feet coiled

1 8 . 5 0

1.75

2.00

1.00

and no - . 7 5

but 5.00 .75 plus parts

Non-Recurr i Charge

1.00

1 . 5 0

2 .00

d. 14 feet non-coiled 1 .50

e. 25 feet non-coiled 2.00

f. Multiconductor cords cost PUBLIC BILRVICB COMMlSllON

17.

18.

19.

20.

21.

22.

CorEpact Telephones: Model I1 with light

Hearing or speech amplifier

Cancelling background noise

Suspension service (vacation) rates (no charge for interchange mileage associated with extensions)

Erxployee discounts

Phone Booths

APPENDIX A Page 3 of 4

charge for standard phone plus $l.OO/month

.9O/nioiith or $ 6 5 single payment charge

.30/month or $19 single payment charge

50% of normil rate

50% of normal rate

$.lo per local call

__. PUEILIC SERVIC CQMMISSION OF eNl*

APPENDIX A Page 4 of 4

HARDY TELEPHONE COMPANY

CASE NO. 81-024-T-42T

PRO FORMA CASH FLOW STATEMENT

Cash Available:

Opera t ing Revenues: .

Cash Requirements:

Opera t ing Expenses 169,352

21,928

Other Deductions .

Tota l Cash Requirements Before D e b t Service

Cash Available For Debt S e r v i c e

Debt S e r v i c e Requirements:

I n t e r e s t on Long-Term Debt 85,482

P r i n c i p a l on Long-Term Debt

T o t a l Debt S e r v i c e Requirements

N e t Cash Surp lus (Defici t )

A.

B.

APPENDIX B Shee t 1 of 2

HARDY TELEPHONE COMPAXY CASE NO. 81-024-T-42T

GENERaL EXCHANGE SERVICE TARIFF

SECTION 1 3

LINE EXTENSION CHARGES

GENERAL

The f u r n i s h i n g of s e r v i c e t o a l l a p p l i c a n t s , w i thou t t h e burden of p r o h i b i t i v e a id - to -cons t ruc t ion charges i s t h e essence of t h e Company's o b l i g a t i o n .

The fo l lowing charges w i l l a s s u r e t h i s o b l i g a t i o n t o Rura l A m e r i c a is m e t .

CHARGES

I. Permanent Customer charge^

a . Within the Base Rate A r e a No Charge b . Along E x i s t i n g Company F a c i l i t i e s No Charge c. Provided as P a r t o f a major p r o j e c t w i t h i n

an exchange and covered by an area coverage survey. N o Charge

d . Customers n o t covered i n a , b o r c above:

(1) I f c o s t o f c o n s t r u c t i o n i s less than seven ( 7 ) t i m e s t h e annual primary s e r v i c e reveriue No Charge

When c o n s t r u c t i o n q p t s f o r a l i n e e x t e n s i o n exceed seven , ( 7 ) times t h e ,annual loeal s e r v i c e cha rges , t h e a id - to -cons t ruc t ion charges which s h a l l be l e v i e d are:

a ) I n a l l cases, t h e i n i t i a l 1 , 0 0 0 fee t of l i n -

( 2 )

e x t e n s i o n s h a l l be provided wi thou t charge.

e x t e n s i o n beyond t h e i n i t i a l 1 , 0 0 0 feet i s wholly on p u b l i c right-of-way, aid-to-con- s t r u c t i o n s h a l l be charged i n t h e amount of $ 2 1 . 0 0 p e r 1 0 0 f e e t o r p o r t i o n t h e r e o f minus 7 times t h e annual primary s e r v i c e revenue

. b) I n c a s e s where t h e p o r t i o n of t h e l i n e

* t o be r ece ived .

c) I n cases where any p o r t i o n of t h e l i n e con- s t r u c t i o n beyond t h e i n i t i a l 1 , 0 0 0 feet i s on p r i v a t e right-of-way, a i d - t o - c o n s t r u c t i o n s h a l l be charged i n t h e amount of $36 .00 p e r 1 0 0 f e e t o r p o r t i o n t h e r e o f minus 7 times t h e annual primary s e r v i c e revenue t o be r ece ived .

d ) Where more t h a n one customer i s se rved by a p o r t i o n of a l i n e e x t e n s i o n , a id- to- c o n s t r u c t i o n charges f o r t h e shared por- t i o n s h a l l be p r o r a t e d e q u a l l y among t h e s h a r i n g customers.

m

APPENDIX B Sheet 2 of 2

e) For portions of line extensions for which line extension charges are applicable, the customers served by the line extensions are responsible for payment of any right- of -way charges.

f) When the construction for which the Company has made a cash construction charge is utilized by the Company for the purpose of serving additional customers within a period of three years from the date it was placed in service, refunds, without interest, will be made to those customers who have paid such charges, provided they are stilk served by such construction. refunds to a,particular customer will be based on the difference between the construc- tion charge actually paid by that customer and the construction charge which he wouLd have paid if all customers served through that construction within such three-year period had been connected at the time the construction serving that customer was pladed in service. Where the construction is used within a period of three years for supporting local or long distance facilities connecting central offices, the total amount of cash construction charges paid by the custopers

The amount of such

shall be refunded, without interest.