Texas Statewide Telephone Cooperative, Inc.

Accounting & Customer Service ConferenceSan Antonio, TX

June 9-11, 2014

Legislative Update

Three Important Points to Remember…

Legislative Update

1. Relationships2. Relationships3. Relationships

Legislative Update

Urban vs. RuralSmaller GovernmentLess TaxesEvery legislative session more

important than the lastEvery legislative session more

difficult than the last

Legislative Update Dallas Morning News – Sunday, June 8, 2014 –

– State Senator Troy Frasier of Horseshoe Bay said the libertarian instinct helps press the (Republican) party in the direction of smaller government but has its limits.

– When you get up in the morning and you turn on the electric switch, you want the lights to come on.

– …you want potable water…– …you want a decent road to drive on…

Legislative Update

Senator Frasier continued

– I don’t want government overplaying what it should do.

– But the obvious concern is if you get to the point where you’re against everything.

Legislative Update

Relationships– If you have a connection, tell your management

Know your State Senator and State Representative

Underscore with them the importance of Rural areas

Food, Fiber, Fuel

Rural Matters

Legislative Update

TSTCI PAC Fund

Be creative with fund raising

Creative award goes to

Peoples Telephone Cooperative

Support your PAC

Legislative Update

Payroll Deduction– Easiest method to participate– Thanks to the Employees and

Management of the following:• Central Texas Telephone Cooperative, Inc.• Hill Country Telephone Cooperative, Inc.• Mid-Plains Rural Telephone Cooperative, Inc. • Nortex Communications

Regulatory Update

Regulatory Update

PURA Section 56.025– Importance of statute preserved several

legislative sessions ago realized– On-going work with PUC on recovery of

lost revenues from TUSF as a result of FCC decisions

Regulatory Update

PURA Section 56.025– “Training” session with PUC staff 07/15/14

• Sharon Minor, CHR – History and Background• Gary Smith, JSI – Overview of Federal Support• R J Del Mese, Moss Adams – Overview of

reform impact, why we need 56.025 support• Steve Gatto, GVNW – Summary of the 56.025

process and discussion of true-up process

Regulatory Update

Project No. 39939/Project No. 41505– Transparency & Accountability– Disclosure of certain financial information– Delay of FCC 5-Year Plan filings– Dispute over disclosure began last year– PUC files request for opinion from Attorney

General on issue to “declassify” compliance reports on June 20, 2104

– Briefs due by July 22, 2014

Regulatory Update

TUSF Taskforce– Overview of work in progress

• It is political• It is financial• It is regulatory

– Concept of options– 2015 vs 2017– If no action, then…

Legislative & Regulatory Update

Any Questions?

Legislative & Regulatory Update