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					                                                                                                                       CARBON / EMERY TELCOM                                                                                                                                                                       EXHIBIT 1
                                                                                                             2004 Rate Case - Revenue Requirement Calculation
                                                                                                                                Intrastate


                                                                                  Intrastate                (note a)               (note b)                  (note c)                   (note d)               (note e)             (note f)              TOTAL               ADDITIONAL    TOTAL
                                                                                     2004                  Qwest DS3                Plant                 Adjustments                                                                                  INTRASTATE             REVENUES   COMPANY
                                                                                   INCOME                  adjustment            Adjustments              for Proposed                                                                                  ADJUSTED               REQUIRED   REVENUE
                                                                                 STATEMENT                                                                Depreciation                                                                                                           #REF!REQUIREMENT
                                                                                      (D)                        (E)                   (F)                     (G)                      (H)                 (I)                (J)                  (K)                           (L)          (M)
                                                                                                                                                                                                                                              SUM(D)..(J)                                  (K) + (L)
                                                                              ==========                 ==========             ==========            ==========              ==========           ========== ==========                      ==========          ==========            ==========
  1                                                                                                                                                                                                                                                                   #REF!                  #REF!
  2   LOCAL SERVICE                                                                   #REF!                                                                                                                                                       #REF!                                      #REF!
  3   STATE USF                                                                                    0                                                                                                                                                          0                                       0
  4   INTERSTATE USF                                                                               0                                                                                                                                                          0                                       0
  5   STATE ACCESS                                                                    #REF!                     (60,636)                                                                                                                          #REF!                                      #REF!
  6   STATE SPECIAL ACCESS                                                            #REF!                                                                                                                                                       #REF!                                      #REF!
  7   MISC-INTRASTATE                                                                 #REF!                                                                                                                                                       #REF!                                      #REF!
  8   STATE UNCOLLECT.                                                                #REF!                              0                  0                               0                    0                                                #REF!                                      #REF!
  9                                                                                 ------------------ ------------------ ------------------ ------------------               ------------------   ------------------ ------------------   ------------------   ------------------ ------------------
 10   TOTAL OP REVENUE                                                                #REF!                     (60,636)                    0                               0                    0                   0                   0        #REF!               #REF!                  #REF!
 11
 12   PLANT SPECIFIC OP                                                               #REF!                                         #REF!                                                                                                                 #REF!                                                #REF!
 13   DEPRECIATION AND AMORTIZATION                                                   #REF!                                         #REF!                     #REF!                                                                                       #REF!                                                #REF!
 14   PLANT NONSPECIFIC OP                                                            #REF!                                                                                                                                                               #REF!                                                #REF!
 15   CUSTOMER OPERATIONS                                                             #REF!                                                                                                                                                               #REF!                                                #REF!
 16   CORPORATE OPERATIONS                                                            #REF!                                                                                                                                                               #REF!                                                #REF!
 17   OPERATING TAXES                                                                 #REF!                                                                                                                                                               #REF!                                                #REF!
 18   OTHER INCOME & EXPENSE                                                                       0                                                                                                                                                                   0                                                      0
 19                                                                                 ------------------     ------------------    ------------------          ------------------       ------------------     ------------------   ------------------    ------------------     ------------------              ------------------
 20   TOTAL OP EXPENSE                                                                #REF!                               0          #REF!                    #REF!                                  0                      0                    0         #REF!                              0                #REF!
 21
 22   OP INCOME B4 INT & TAXES                                                        #REF!                      (60,636)           #REF!                     #REF!                                    0                    0                    0        #REF!                    #REF!                       #REF!
 23
 24   STATE INCOME TAX                                                                #REF!                                                                                                                                                       #REF!                            #REF!                        #REF!
 25   FEDERAL INCOME TAX                                                              #REF!                                                                                                                                                       #REF!                            #REF!                        #REF!
 26                                                                                 ------------------ ------------------ ------------------ ------------------               ------------------   ------------------ ------------------   ------------------                ------------------       ------------------
 27   TOTAL OP TAXES                                                                  #REF!                              0                  0                               0                    0                   0                   0        #REF!                            #REF!                        #REF!
 28
 29   NET OP INCOME                                                                 #REF!                        (60,636)           #REF!                     #REF!                                    0                    0                    0        #REF!                    #REF!                       #REF!
30                                     (A)                    (B)                      (C)
31                                  12/31/03               12/31/04              [(A) + (B)] / 2
32                                 Plant Bal.             Plant Bal.                  2004
33                                Per Trial Bal.         Per Trial Bal             AVERAGE
34                                ==========             ==========              ==========
 35   PLANT IN SERVICE               #REF!                  #REF!                   #REF!                                           #REF!                                                                                                                 #REF!                                                #REF!
 36   PLANT UNDER CONSTR.            #REF!                  #REF!                   #REF!                                                                                                                                                                 #REF!                                                #REF!
 37   DEPR. RESERVE                  #REF!                  #REF!                   #REF!                                           #REF!                     #REF!                                                                                       #REF!                                                #REF!
 38   DEFERRED TAXES                          0                           0                        0                                                                                                                                                                    0                                                     0
 39   CUSTOMER DEPOSITS              #REF!                   #REF!                    #REF!                                                                                                                                                               #REF!                                                #REF!
 40   PREPAYMENTS                             0                           0                        0                                                                                                                                                                    0                                                     0
 41   MATERIALS                      #REF!                   #REF!                    #REF!
 42   RTB STOCK                               0                           0                                                                                                                                                                                             0                                                     0
 43   WORKING CASH                   #REF!                   #REF!                    #REF!                                                                                                                                                               #REF!                                                #REF!
44                               ------------------   ----------------------- ------------------         ------------------ ------------------        ------------------          ------------------       ------------------ ------------------   ------------------        ------------------       ------------------
45  TOTAL RATE BASE                    #REF!                  #REF!                   #REF!                                0      #REF!                        #REF!                                   0                     0                   0        #REF!                                   0             #REF!
46
47 RETURN ON RATE BASE                                       #REF!                                                                                                                                                                                        #REF!                                                #REF!
CARBON / EMERY TELCOM                                                                                      Page 1
Notes to Exhibit 1


(a) Removal of Qwest DS3 Special Access Revenue
    Carbon and Qwest have a DS3 for exchanging frame relay traffic. Carbon bills the underlying carriers for
    the capacity usage on that DS3 and so maintains this not be run through the billing & revenue recognition
    process with Qwest. However Qwest insists on paying Carbon and billing Carbon for the same. This
    adjustment reflects the exclusion of those revenues included Carbon's G/L where the expense side has
    been excluded.

          Monthly                                 $    5,053
          Annual (Monthly X 12)                   $   60,636   To EXHIBIT 1


(b) Plant Adjustments
    The following adjustments reflect known and measurable plant additions to be completed during 2005
    together with workorders for contracted buried cable maintenance. The intrastate portion of the plant
    operations expense, calculated at the 2003 intrastate factor, is entered originally in EXHIBIT 1.

    The plant addition adjustments are entered originally into EXHIBIT 5 where appropriate calculations for six
    months depreciation expense and additions to reserve at 50% of the six months depreciation are made.
    Additionally, the plant additions are multiplied by 50 percent to derive the adjustment to the plant balance.
    The balances carried forward below for Intrastate reflect the foregoing. The amounts for entry into Exhibit 1
    have been multiplied by the appropriate jurisdictional factor from Supplement B.




                                                                 FACTORS
                                                                   FROM
                                                               SUPPLEMENT B
    Total Additions to Plant Operations Expense                               $    178,180
    Intrastate Portion                                            #REF!           #REF!    To EXHIBIT 1

    Total Additions to Depreciation Expense Adjustment                        $     99,861 From EXH 5 Ln 22 Col G
    Intrastate Portion                                            #REF!           #REF!    To EXHIBIT 1

    Total Additions to Telecommunications Plant in Service                    $ 1,124,875 From EXH 5 Ln 22 Col A
    Intrastate Portion                                            #REF!          #REF!    To EXHIBIT 1

    Total Additions to Accumulated Depreciation Reserve                       $     49,931 From EXH 5 Ln 22 Col D
    Intrastate Portion                                            #REF!           #REF!    To EXHIBIT 1
CARBON / EMERY TELCOM                                                                                     Page 2
Notes to Exhibit 1

(c) Depreciation Adjustments

  Carbon/Emery has requested adjusted depreciation rates in this case. Based on approval of proposed rates,
  depreciation expense was increased to reflect the estimated increase in depreciation expense generated
  from the proposed rates. Additionally, Carbon/Emery adopted Emery's depreciation rates at the time of
  acquisition of Qwest exchanges. Carbon over-depreciated four accounts by using rates other than
  Commission approved rates. Therefore, the amount of over-depreciation was removed from test year
  expenses and accumulated depreciation. The intrastate portion was calculated by assuming an intrastate
  factor from the separations results reflected in Supplement B.

  EXHIBIT 6 shows the calculation of the effect of the proposed increase in depreciation rates.

  EXHIBIT 7 shows the calculation of the effect of the effect of using the depreciation rates of Emery.



   Depreciation Expense Increase                  #REF!                     From EXHIBIT 6, Line 35
   Depreciation Reserve Reduction                 #REF!                     From EXHIBIT 6 Line 39


(d) No Note (d) for Intrastate Revenue Requirement (EXHIBIT 1)

(e) No Note (e) for Intrastate Revenue Requirement (EXHIBIT 1)

(f) Capital Structure and Rate of Return

    The Company proposes a 10.05% return on rate base. The 10.05% return is based on the assumption that
    capital is split equally between debt and equity for which the maximum allowable after-tax cost of equity is
    12.5%, and the maximum allowable cost of debt is 7.6%. The calculation of the 10.05 rate of return is
    shown at EXHIBIT 3.

    Also shown at EXHIBIT 3 is the calculation of the required return on net-investment at the proposed rate of
    return. The return is grossed up for income taxes reflective of nontaxable interest.


(g) Income Taxes

   The calculation of income taxes is shown at EXHIBIT 4.
CARBON / EMERY TELCOM                                                                                      Page 3
Notes to Exhibit 1


(h) Intrastate Revenue Changes

   EXHIBIT 2 summarizes changes in intrastate revenues that the company proposes in this rate case.

   EXHIBIT 2.1 summarizes the impact of proposed changes in local rates.

   EXHIBIT 2.2 summarizes the impact of proposed changes in intrastate switched access and
   transport rates.

   EXHIBIT 2.3 shows the calculation of proposed intrastate local switching and transport
   per minute rates.

      Carbon/Emery's current basic local service rates are below the Affordable Base Rates established by
      the Commission. At EXHIBIT 2.1, the increase in revenue at current levels of customers is
      calculated. Additionally, the company is proposing increases in nonrecurring charges related to
      service orders.

                                                                               Per Exhibit 2.1
                                                               Current       Proposed          Proposed Increase
   RESIDENCE ONE-PARTY SERVICE                                 $11.93         $13.50                $1.57
   BUSINESS ONE-PARTY SERVICE                                  $19.37         $23.00                $3.63


(i) Intrastate Expense and Investment Apportionment


   EXHIBIT 8 - Apportionment of total company expense and investment to intrastate.
   Intrastate unadjusted expenses are calculated based on the total company balances
   multiplied by the applicable intrastate factor for the account reflected in Supplement B.
CARBON / EMERY TELCOM                                                                                                                               EXHIBIT 2
SUMMARY OF INTRASTATE REGULATED REVENUES

                                       REVENUES BEFORE                 PROPOSED RATE                                      PROJECTED
Line           DESCRIPTION              RATE INCREASE                     CHANGE                                          REVENUES
 #                                             (A)                           (B)                        Reference          (C) = (A) + (B)

 1     LOCAL                                     #REF!                                $299,341 Exhibit 2.1                    #REF!

 2     STATE USF                       $                           -             #REF!                 Note A                 #REF!

 3     INTERSTATE USF                  $                           -   $                           -                $                           -

 4     STATE ACCESS                              #REF!                 $                351,580 Exhibit 2.2                   #REF!

 5     STATE SPECIAL ACCESS                      #REF!                 $                           -                          #REF!

 6     BILLING & COLLECTION            $                      -        $                           -                $                           -

 7     MISCELLANEOUS-State                       #REF!                 $                           -                          #REF!

 8     UNCOLLECTIBLE-State                       #REF!                 $                           -                          #REF!

 9        TOTAL                                  #REF!                           #REF!                                        #REF!
                                           Exhibit 1 Col K Ln 10           Exhibit 1 Col L Ln 10                        Exhibit 1 Col M Ln 10


       Note A - State Universal Service Fund (USF) Requirement
       The state USF requirement is the total proposed revenue change less
       the proposed changes for local and state access revenues.
                                                                   CARBON/EMERY TELCOM                                                           EXHIBIT 2.1
                                                                     2004 TEST YEAR
                                                            LOCAL SERVICES RATE DEVELOPMENT

                                            (A)                              (C)          (B)         (C)       (D)        (E)          (F)         (G)
                                                                                                                         Current     Proposed
 LN     Tariff                                                              Reg./       Current   Proposed      Total     Annual     Annual        Inc.
  #     Page                            Description                         N-Reg        Rate       Rate       Qty (a)   Revenue     Revenue      (Dec.)

                 BASIC LOCAL RATES
 1       24      RESIDENCE ONE-PARTY SERVICE                                  R     $     11.93   $    13.50   7,194     $1,029,893 $1,165,428     $135,535
 2       24      BUSINESS ONE-PARTY SERVICE                                   R     $     19.37   $    23.00   2,777       $645,486   $766,452     $120,966
 3               RESIDENCE EXTENDED AREA SERVICE                              R     $      0.99   $     0.99   7,194        $85,465    $85,465           $0
 4       24      BUSINESS EXTENDED AREA SERVICE                               R     $      1.49   $     1.49   2,777        $49,653    $49,653           $0
 5               PBX TRUNK                                                    R     $     28.45   $    28.45       2           $683       $683           $0
 6               TOTAL LOCAL RATES Res / Bus                                                                             $1,811,179 $2,067,680     $256,501
         35
                 NON-RECURRING CHARGES
  7     37       NSF CHECK CHARGE                                             R     $     15.00   $    20.00      22        $3,960     $5,280         $1,320
  8     38.1     RESIDENCE ACCESS ORDER-SERVICE CHARGE                        R     $     10.00   $    15.00     239       $28,680    $43,020        $14,340
  9              BUSINESS ACCESS ORDER-SERVICE CHARGE                         R     $     13.00   $    15.00      30        $4,680     $5,400           $720
 10     38.1     RESIDENCE ACCESS ORDER-WIRE CENTER CHARGE                    R     $      8.00   $    15.00     221       $21,216    $39,780        $18,564
 11     38.1     BUSINESS ACCESS ORDER-WIRE CENTER CHARGE                     R     $     12.00   $    15.00      28        $4,032     $5,040         $1,008
 12     38.1     RESIDENCE ACCESS ORDER-PREMISE VISIT                         R     $     10.00   $    30.00      21        $2,520     $7,560         $5,040
 13              BUSINESS ACCESS ORDER-PREMISE VISIT                          R     $     16.00   $    30.00      11        $2,112     $3,960         $1,848
 15              TOTAL NONRECURRING CHARGES                                                                                $67,200   $110,040        $42,840
                 `
                 COMBINED INCREASE IN LOCAL REVENUE                                                                                                $299,341
                                                                                                                                                 To EXH 2

Note:    (a)     Customer counts used for Basic Local Rate increase effect are those as of May, 2005.
                 Potential for access line losses exists, however the company is using the
                 current count to conservatively state the amount of revenue that will
                 be generated from increasing basic rates in order not to overstate
                 the calculation of required state Universal Service Support.

                 Service Order Counts are projections based on September 2004 year to date activity.
CARBON / EMERY TELCOM                                                                                                                    EXHIBIT 2.2
SWITCHED ACCESS RATE DEVELOPMENT



                                                                                                           A             B              C
                                                                                                                      AVERAGE
 Ln     CURRENT AVERAGE ACCESS RATES                                                                 ACCESS            TARIFF
  #                                                           Source                                 MINUTES           RATES        REVENUES
 1      CARRIER COMMON LINE - ORIG                            2004 Access Minutes                      8,076,973         0.007656 $       61,837
 2      CARRIER COMMON LINE - TERM                            2004 Access Minutes                      9,181,425         0.007656         70,293
 3      LOCAL TRANSPORT                                       2004 Access Minutes                     47,795,180         0.001061         50,711
 4      LOCAL SWITCHING                                       2004 Access Minutes                     17,258,398         0.010800        186,391

  5     TOTAL REVENUE                                                                                                                $       369,232
  6
  7     LOSS OF CITIZENS TRANSPORT (a)                                                                   14,760,458       0.001061   $       (15,661)
  8
  9                                                                                                                   PROPOSED
 10     PROPOSED ACCESS RATES                                                                        ACCESS             TARIFF
 11                                                           Source                                 MINUTES            RATES            REVENUES
 12     CARRIER COMMON LINE - ORIG                            Line 1                                   8,076,973           0.00000   $             -
 13     CARRIER COMMON LINE - TERM                            Line 2                                   9,181,425           0.00000                 -
 14     LOCAL TRANSPORT                                       Line 3 - Line 7                         33,034,722           0.01670           551,680
 15     LOCAL SWITCHING                                       Line 4                                  17,258,398           0.00980           169,132

 16     TOTAL REVENUE                                                                                                                $       720,812
 17

 18     CHANGE IN REVENUE USING PROPOSED ACCESS RATES                                                                                $       351,580

                                                                                                                                     To EXHIBIT 2

Note:(a)A significant portion of transport minutes billed in 2004 are for transiting Citizens traffic.
        Citizens is in the process of preparing to reroute this traffic and by the end of
        2005 will no longer pass any traffic through Carbon/Emery facilities.
CARBON / EMERY TELCOM                                                                                                                 EXHIBIT 2.3


                                                                 REVENUE REQUIREMENT SUMMARY
                                                                    TOTAL INTRASTATE ACCESS

                                                     TOTAL
                                                  INTRASTATE    COMMON        LOCAL                      COMMON          SPECIAL
         REVENUE REQUIREMENT SUMMARY               INTRALATA      LINE       SWITCHING       INFO       TRANSPORT        ACCESS         B&C

  1   NET INVESTMENT                                3,649,638   2,905,347        461,529            0        225,504        55,743         1,516
  2   RATE OF RETURN                                 10.0000%    10.0000%       10.0000%     10.0000%       10.0000%      10.0000%      10.0000%
  3   RETURN FOR SETTLEMENTS                          364,964     290,535         46,153            0         22,550         5,574           152
  4   ALLOWANCE FOR FUNDS USED DURING CONSTR                0           0              0            0               0            0             0
  5   NET RETURN FOR SETTLEMENTS                      364,964     290,535         46,153            0         22,550         5,574           152
  6   INTEREST AND RELATED ITEMS                      309,066     227,467         44,615            0         31,141         5,772            70
  7   OTHER INCOME ADJUSTMENTS                              0           0              0            0               0            0             0
  8   FEDERAL ITC AMORTIZATION                              0           0              0            0               0            0             0
  9   FIT BASE                                         55,898      63,067          1,538            0          (8,591)        (198)           82
 10   FEDERAL TAXABLE INCOME                           84,693      95,557          2,330            0        (13,017)         (300)          124
 11   FEDERAL OPERATING INCOME TAX                     28,796      32,489            792            0          (4,426)        (102)           42
 12   FEDERAL SURTAX EXEMPTION                              0           0              0            0               0            0             0
 13   NET FEDERAL INCOME TAX                           28,796      32,489            792            0          (4,426)        (102)           42
 14   STATE ITC AMORTIZATION                                0           0              0            0               0            0             0
 15   SIT BASE                                         84,693      95,557          2,330            0        (13,017)         (300)          124
 16   STATE TAXABLE INCOME                             89,151     100,586          2,452            0        (13,702)         (316)          130
 17   STATE AND LOCAL INCOME TAX (TAX CODE A)           4,458       5,029            123            0            (685)         (16)            7
 18   STATE SURTAX EXEMPTION                                0           0              0            0               0            0             0
 19   NET STATE INCOME TAX                              4,458       5,029            123            0            (685)         (16)            7
 20   OPERATING EXPENSES AND TAX                    2,267,589   1,455,377        505,314       12,005        151,878        30,195       112,821
 21   NON OPERATING EXPENSE                                 0           0              0            0               0            0             0
 22   UNCOLLECTIBLES                                        0           0              0            0               0            0             0
 23    BASIS FOR GROSS RECEIPTS TAX                 2,665,807   1,783,430        552,382       12,005        169,317        35,651       113,021
 24   GROSS RECEIPTS TAX RATE                               0           0              0            0               0            0             0
 25   GROSS RECEIPTS TAX                                    0           0              0            0               0            0             0
 26    REVENUE REQUIREMENT BEFORE ADJUSTMENTS       2,665,807   1,783,430        552,382       12,005        169,317        35,651       113,021
 27    ACCESS ADJUSTMENTS:
 28      ALLOCATION OF LOCAL SW LINE PORT COSTS
 29      TIC REVENUE REALLOCATION
 30    PROJECTED REVENUE REQUIREMENT                2,665,807   1,783,430        552,382      12,005         169,317        35,651       113,021

 31    ANNUALIZED PROJECTED REVENUE REQUIREMENT     2,665,807   1,783,430        552,382      12,005         169,317        35,651       113,021
       (LINE 30 ANNUALIZED TO TWELVE MONTHS)

 32 Demand - Annual Minutes of Use                                            33,034,722                  17,258,398


 33   Revised Rate per Minute of Use                                             $0.01670                    $0.00980
                                                                            To Exhibit 2.2              To Exhibit 2.2
                                                                            Ln 14 Col B                 Ln 15 Col B
CARBON/EMERY RATE CASE                                                                                                                                                       EXHIBIT 3
CAPITAL STRUCTURE ANALYSIS


         CAPITAL STRUCTURE - 50/50 DEBT TO EQUITY
                                                                                                  Capital            Capital                                 Weighted
                                                                                                  Amount              Ratio                Cost                Cost
    a LONG TERM DEBT                                 50% of Total Capital                         #REF!              0.50000             0.07600             0.03800
    b EQUITY                                         50% of Total Capital                         #REF!              0.50000             0.12500             0.06250
    c Total Capital                                  EXH 1 Ln 33 Col K                            #REF!              1.00000                                 0.10050

         INTEREST ADJUSTMENT BASED ON A 50/50 HYPOTHETICAL CAPITAL STRUCTURE

                                                                                                Interstate            State          Total Company
                                                  1/2 of Debt
    d Total Calculated Based on 1/2 Rate Base X CostRate Base * Cost of Debt                      #REF!               #REF!              #REF!
      State Allocated based on Plant Factor (Line g)

      COMBINED INTRASTATE AND INTERSTATE RATES OF RETURN
    e Rate Base                       Total X Jurisdictional Factor                               #REF!              #REF!              #REF!
                                                                                                  Total          EXH 1      Ln      EXH XX      Ln
     f Source for Line e                                                                        Less State         45 Col K            33 Col K
    g    Jurisdictional Factors                      Supplement B                                 #REF!              #REF!              #REF!
    h    Composite Rate of Return                                                                      11.25%             10.05%        #REF!
     i   Source for Line h                                                                         FCC                Ln c            Ln i / Ln e
     j   Return                                      Ln e * Ln h                                  #REF!              #REF!                     #REF!
k        Source for Line j                                                                      Ln e * Ln h        Ln e * Ln h   Interstate + State
         GROSS-UP/DOWN
     1   REVENUE                                                                                                        100.00%              100.00%
     2   BAD DEBTS                                   Not Used                                                              0.00%                0.00%
     3   NET REV                                     Ln 1 - Ln 2                                                        100.00%              100.00%
     4   STATE TX 5%                                 5 % * Ln 5                                                            5.00%                5.00%
     5   FED TXBL INC                                Ln 5 - Ln 6                                                         95.00%               95.00%
     6   FED TAX RATE                                EXH 4                                                               34.00%               34.00%
     7   EFFECTIVE FED TAX RATE                      LN 5 * LN 6                                                         32.30%               32.30%
     8   NOI                                         Ln 5 - Ln 7                                                         62.70%               62.70%
     9   MULTIPLIER                                  1 / Ln 7                                                            1.59490              1.59490
    10   Net Investment                              Ln j                                                            #REF!               #REF!
    11   Rate of Return - Composite                  Ln i                                                                10.05%          #REF!
    12   Required Return                             Ln 10 * Ln 11                                                   #REF!               #REF!
    13   Less Interest                               Ln d                                                            #REF!               #REF!
    14   Return Net of Interest                      Ln 12 - L 13                                                    #REF!               #REF!
    15   Gross Up for Taxes                          Ln 14 * Ln 9                                                    #REF!               #REF!
    16   Total Return and Taxes                      Ln 13 + Ln 15                                                   #REF!               #REF!
    17   Adjusted Test Year Revenue                  EXH 1 Col K Ln 10                                               #REF!               #REF!
    18   Adjusted Test Year Expense                  EXH 1 Col K Ln 18                                               #REF!               #REF!
    19   Adjusted Net Income Before Income Taxes     Ln 13 - Ln 14                                                   #REF!               #REF!
    20   Required Revenue Increase                   Ln 16 - Ln 19                                                   #REF!               #REF!
                                                                                                                      To                  To
                                                                                                                   EXHIBIT 1           EXHIBIT 9
                                                                                                                   COL L LN 1          COL L LN 1
         Rate of Return
         The Company proposes using a 10.05% rate of return for this Docket (approx. 13.9% pretax rate of return). The 10.05% return is based on the assumption that
         capital is split equally between debt and equity, the maximum allowable after -tax cost of equity is 12.5%, and the maximum allowable cost of debt is 7.6%. These
         figures are shown in the table above. Additionally, to calculate a total company revenue requirement, the interstate return on rate base of 11.25% was considered
         which results in a total company return on rate base of 10.48% as shown above on Line h.
CARBON / EMERY TELCOM                                                                                                                                        EXHIBIT 4
2004 RATE CASE
INCOME TAX CALCULATION - INTRASTATE ONLY




 1   Net Operating Income Before Taxes        EXH 1 Ln 22 Col M                                                                                              #REF!
 2   Interest Deduction                       EXH 3 Ln d                                                                                                     #REF!
 3   Taxable Income                           Ln 1 - Ln 2                                                          Tax Rate                                  #REF!
 4   State Income Taxes                       5% * Ln 3                                                              5%                                      #REF!
 5   Amount Subject to Federal Income Taxes   Ln 3 - Ln 4                                                                                                    #REF!

     Federal Income Taxes
                                                                    Taxable income                  Rate Layer                 Income in
                                                                                     But Not Over                  Tax Rate                          Tax
                                                                        Over                          Amount                     Layer
 6   IRS Corporate Tax Rate Table                                   $             - $      50,000   $   50,000        15%        #REF!           #REF!
 7      "                "                                                   50,000        75,000       25,000        25%           25,000           6,250
 8      "                "                                                   75,000       100,000       25,000        34%           25,000           8,500
 9      "                "                                                 100,000        335,000      235,000        39%          235,000          91,650
10   Ave Rate - First $235,000 of Income                                                                             #REF!       #REF!           #REF!
11   Residual at 34% Rate                     Ln 5 - Ln 10                 335,000     10,000,000     9,665,000     34.000%      #REF!           #REF!
12   Total Taxable Income and Tax             Ln 5 10 + Ln 11                                                        #REF!       #REF!                       #REF!
13 Return After Income Taxes                  Ln 1 - Ln 4 - Ln 12                                                                                            #REF!
14 Rate Base                                  EXH 1 Ln 45 Col KI                                                                                             #REF!
15 Rate of Return                             Ln 13 / Ln 14                                                                                                  #REF!
                                                                                      Required                                   Tax
                                                                     Per Books       Adjustment         Reference Forward     Requirement
                                                                         A               B                      C                  D
16 TAX ADJUSTMENT                                                   EXH 1 COL D         D-A
17 STATE INCOME TAX                                                    #REF!           #REF!        EXH 1 Col L Ln 24           #REF!        Ln 4
18 FEDERAL INCOME TAX                                                  #REF!           #REF!        EXH 1 Col L Ln 25           #REF!        Ln 12
19    TOTAL TAXES                                                      #REF!           #REF!                                    #REF!
     Carbon/Emory Telephone Company                                                                                                                                                                                                    EXHIBIT 5
     2004 Test Year Rate Case
     Plant Adjustment for Known and Measurable Changes
     Projects To Be Started & Completed in 2005
                                                                                                                                            Plant -            Plant -          Plant -
                                                                                                      Plant- Aerial   Plant - Buried                                                                          Inter-exchange
                           Description                                                   Total                                           Underground        Underground         Digital       Plant - Radio                           Total CWF
                                                                                                         Cable            Cable                                                                                    Circuit
                                                                                                                                            Cable             Conduit          Switching
                                                                                                                                                                                                                                     (I) = SUM (B)
                                                                                          (A)              (B)             (C)                (D)                (E)                (F)            (G)             (H)
                                                                                                                                                                                                                                         thru (E)
 1 Fiber to Gordon Creek                                                          $       330,678         165,339 $          99,203 $           49,602 $          16,534
                                                                                           100.0%           50.0%             30.0%              15.0%              5.0%
 2 Fiber to C Canyon                                                                      409,292         204,646           122,788             61,394            20,465
                                                                                           100.0%           50.0%             30.0%              15.0%              5.0%
 3 Fiber to Walker Remote                                                                  66,505          33,253            19,952              9,976             3,325
                                                                                           100.0%           50.0%             30.0%              15.0%              5.0%
 4 Fiber to Miller Creek remote                                                           462,623         231,312           138,787             69,393            23,131
                                                                                            100.0%          50.0%                30.0%              15.0%               5.0%
 5 Fiber to Kenilworth                                                                    106,849          53,425             32,055            16,027                 5,342
                                                                                            100.0%          50.0%                30.0%              15.0%               5.0%
 6 Fiber to Columbia                                                                      161,576          80,788             48,473            24,236                 8,079
                                                                                            100.0%          50.0%                30.0%              15.0%               5.0%
 7 Electronics for 3000 S. Hwy. 10                                                          76,043                                                                                                            $      76,043
 8 Upgrade DMS 100 for Caller ID trunk capabilities                                         80,000                                                                             $     80,000
 *9 Radio change out Price to Myton                                                       336,225                                                                                             $    336,225
*10 Radio change out Castle Dale to Price                                                  219,956                                                                                                 219,956
 11 Total Workorders to Be Completed to Acct 2001             Sum Ln 1~10         $      2,249,747    $ 768,763       $     461,258      $    230,628       $     76,876       $     80,000   $    556,181    $      76,043      $       1,537,525
12 Approved Depreciation Rate                                                                             10.00%          4.50%              4.00%              2.00%              8.33%          12.50%          12.50%

13 Six Months Depreciation                                    Ln11 * Ln12 * 50%   $         97,044    $    38,438     $       10,378     $          4,613   $           769    $      3,332   $     34,761    $          4,753   $          54,198

14 Impact of June 30 Addition on Average Reserve              Ln 13 / 2           $         48,524    $    19,219     $          5,189   $          2,307   $           385    $      1,666   $     17,381    $          2,377   $          27,100
15 Proposed Depreciation Rates                                                                            10.00%          5.00%              5.00%              3.33%              8.33%          12.50%          12.50%

16 Six Months Depreciation at Proposed Rates                  Ln 11 * Ln 15 * 50% $         99,861    $    38,438     $       11,531     $          5,766   $          1,280   $      3,332   $     34,761    $          4,753   $          57,015
17 Additional Depreciation Expense at Proposed Rates          Ln 16 - Ln 13                  2,817              -                1,153              1,153               511               -              -                   -
18 Reserve Addition at Proposed Rates                         Ln 16 / 2           $         49,931    $    19,219     $          5,766   $          2,883   $           640    $      1,666   $     17,381    $          2,377   $          28,508

     SUMMARY OF ADJUSTMENT AT TRIAL BALANCE LEVEL
                                                                                  ACCT '2001 at
     Total Company Adjustments                                                       50%                                                     3100                                                  6561
19   SWITCHING EQUIP                                                              $      40,000 L11 Col(F) * 50%                         $      1,666 L18 Col(F)                              $      3,332 L16 Col(F)
20   COE TRANSMISSION                                                                  316,112 (L11 Col(G)+ L11 Col(H))* 50%             $     19,757 L18 Col(G)+ L11 Col(H)                        39,514 L16 Col(G)+ L11 Col(H)
21   CABLE & WIRE FAC                                                                  768,763 L11 Col(I) * 50%                          $     28,508 L18 Col(I)                                    57,015 L16 Col(I)
22     TOTAL                                                                      $  1,124,875                                           $     49,931                                         $     99,861


23 Interstate Revenue Requirement Before Plant Adjustment                             $3,001,350.00
24 Interstate Revenue Requirement After Plant Adjustment                              $3,136,044.00
25 Adjustment to Interstate Revenue Req                                                 $134,694.00

   INTRASTATE PORTION                                                Factor                                               Factor                                                   Factor
26 SWITCHING EQUIP                                                   #REF!              #REF!                             #REF!              #REF!                                 #REF!          #REF!
27 COE TRANSMISSION                                                  #REF!              #REF!                             #REF!              #REF!                                 #REF!          #REF!
28 CABLE & WIRE FAC                                                  #REF!              #REF!                             #REF!              #REF!                                 #REF!          #REF!
29   TOTAL                                                           #REF!              #REF!                             #REF!              #REF!                                 #REF!          #REF!

30 Plant Operations Expense Adjustment                        Input               $       178,180
31 Interstate Factor                                          Supp B                    #REF!
32 Interstate Revenue Impact of Plant Operations Expens Adj   Ln 30 * Ln 31             #REF!

33 Combined Interstate Access Revenue Adjustment              Ln 25 + Ln 32             #REF!
CARBON / EMERY TELCOM                                                                                                                                                                        EXHIBIT 6
DEPRECIATION ADJUSTMENT
See Exhibit 1 Notes (b) and (c)

                                                      Gross Plt     Depreciation         Net         Existing       Existing       Existing      Proposed        Existing      Proposed              Annual
Ln                                                    Balance         Reserve            Plant     Depreciation   Depreciation     Annual       Depreciation   Depreciation     Annual             Depreciation
# Account                 Description                12/31/2004      12/31/2004       12/31/2004      Rates          Lives       Depreciation      Rates          Lives       Depreciation           Change
                      General Support Plant
 1   2111.00   LAND                                    #REF!                           #REF!
 2   2112.00   MOTOR VEHICLES                          #REF!           #REF!           #REF!            20.00%            5.00     #REF!             20.00%            5.00     #REF!                #REF!
 3   2116.00   OTHER WORK EQUIPM                       #REF!           #REF!           #REF!            20.00%            5.00     #REF!             20.00%            5.00     #REF!                #REF!
 4   2121.00   BUILDINGS                               #REF!           #REF!           #REF!             3.33%           30.03     #REF!              5.00%           20.00     #REF!                #REF!
 5   2122.00   OFFICE FURNITURE                        #REF!           #REF!           #REF!            15.00%            6.67     #REF!             15.00%            6.67     #REF!                #REF!
 6   2123.00   COMMUNICATIONS EQ                       #REF!           #REF!           #REF!            20.00%            5.00     #REF!             20.00%            5.00     #REF!                #REF!
 7   2124.00   GENERAL PURPOSE C                       #REF!           #REF!           #REF!            20.00%            5.00     #REF!             20.00%            5.00     #REF!                #REF!
 8                           Sub-Total                 #REF!           #REF!           #REF!                                       #REF!                                        #REF!                #REF!
 9
10                      Central Office Plant
11   2210.00   CENTRAL OFFICE SW                       #REF!           #REF!           #REF!            20.00%            5.00     #REF!             20.00%            5.00     #REF!                #REF!
12   2212.00   DIGITAL ELECTRONIC                      #REF!           #REF!           #REF!             8.33%           12.00     #REF!              8.33%           12.00     #REF!                #REF!
13   2230.00   INTEREXCHANGE CIR                       #REF!           #REF!           #REF!            12.50%            8.00     #REF!             12.50%            8.00     #REF!                #REF!
14   2231.00   MICROWAVE TRANSMI                       #REF!           #REF!           #REF!            12.50%            8.00     #REF!             12.50%            8.00     #REF!                #REF!
15   2232.00   SUBSCRIBER CIRCUI                       #REF!           #REF!           #REF!            12.50%            8.00     #REF!             12.50%            8.00     #REF!                #REF!
16   2362.00   OTHER TERMINAL EQ                       #REF!           #REF!           #REF!            12.50%            8.00     #REF!             12.50%            8.00     #REF!                #REF!
17                           Sub-Total                 #REF!           #REF!           #REF!                                       #REF!                                        #REF!                #REF!
18
19                    Cable & Wire Facilities
20   2411.00   POLES                                   #REF!           #REF!           #REF!            10.00%           10.00     #REF!             10.00%           10.00     #REF!                #REF!
21   2421.00   AERIAL CABLE                            #REF!           #REF!           #REF!            10.00%           10.00     #REF!             10.00%           10.00     #REF!                #REF!
22   2422.00   UNDERGROUND CABLE                       #REF!           #REF!           #REF!             4.00%           25.00     #REF!              5.00%           20.00     #REF!                #REF!
23   2423.00   BURIED CABLE                            #REF!           #REF!           #REF!             4.50%           22.22     #REF!              5.00%           20.00     #REF!                #REF!
24   2426.00   INTRABUILDING NET                       #REF!           #REF!           #REF!             4.50%           22.22     #REF!              5.00%           20.00     #REF!                #REF!
25   2431.00   AERIAL WIRE                             #REF!           #REF!           #REF!            10.00%           10.00     #REF!             10.00%           10.00     #REF!                #REF!
27   2441.00   CONDUIT SYSTEMS                         #REF!           #REF!           #REF!             2.00%           50.00     #REF!              3.33%           30.03     #REF!                #REF!
28                           Sub-Total                 #REF!           #REF!           #REF!                                       #REF!                                        #REF!                #REF!
29
30                            Total                     #REF!          #REF!           #REF!                                       #REF!                                        #REF!                #REF!
31             Less Excess Depreciation Booked IN 2004 - Per Exhibit 7                                                                                                                                        (17,791)
32             Net Adjustment                                                                                                                                                                        #REF!

               Interstate Rev Req Impact:
33             Interstate Depreciation Factor       EXH 7.2                                                                                                                                                       0.3857
34             Interstate Portion                   Ln 32 * Ln 33                                                                                                                                    #REF!                 EXH 9
35             Intrastate Portion                   Ln 32 - Ln 34                                                                                                                                    #REF!                 EXH 1

               Reserve Impact

36             Current Year Expense Effect          Ln 32 * 50%                                                                                                                                      #REF!
37             Excess Depreciation -Four Years      Ln 31 * 4 (also Per EXH 7 Ln 9)                                                                                                                           (71,164)
38               Net Impact on Reserve                                                                                                                                                               #REF!                 EXH 9
39             Intrastate Portion                                                                                                                                               #REF!                #REF!                 EXH 1
CARBON / EMERY TELCOM                                                                                                                                                        EXHIBIT 7
OVERSTATED DEPRECIATION EXPENSE

                                        Gross Plt    Accumulated       Net         Booked       Booked         Booked        Approved       Approved       Approved
Ln                                       Balance     Depreciation      Plant     Depreciation Depreciation     Annual       Depreciation   Depreciation     Annual       Depreciation
 # Account          Description         12/31/2004    12/31/2004    12/31/2004      Rates        Lives       Depreciation      Rates          Lives       Depreciation    Difference
                General Support Plant

 1   2210.00   CENTRAL OFFICE SW          925,352       (179,652)     745,700        12.50%           8.00      115,669          20.00%            5.00      185,070     $      69,401
 2   2212.00   DIGITAL ELECTRONI        4,889,315     (4,492,927)     396,388        12.50%           8.00      396,388           8.33%           12.00      396,388                 0
 3   2231.00   MICROWAVE TRANSMI        3,473,819     (2,952,400)     521,420        20.00%           5.00      521,420          12.50%            8.00      434,227           (87,192)
 4   2362.00   OTHER TERMINAL EQ                0              0            0        20.00%           5.00            0          12.50%            8.00            0                 0


 5                                      9,288,486    (7,624,979) 1,663,508                                   1,033,477                                    1,015,686      $ (17,791)

                                                                                                                                                                         To EXH 6




                    Carbon/Emery adopted Emery's depreciation rates at the time of acquisition of Qwest exchanges. Carbon over -
                    depreciated four accounts by using rates other than Commission approved rates. Therefore, the amount of over -
                    depreciation was removed from test year expenses and accumulated depreciation. The intrastate portion was
                    calculated by assuming an intrastate factor from the separations results reflected in Supplement B.

                    For purposes of test year adjustments, the effect of using the unapproved depreciation rates is netted with the effect of
                    the proposed changed depreciation rates at EXHIBIT 6.
CARBON / EMERY TELCOM                                                                                                                                                       EXHIBIT 8
JURISDICTIONAL APPORTIONMENT OF INVESTMENT AND EXPENSES                                                                                                                   PAGE 1 OF 2

BASED ON MOST RECENT COST STUDY (2003)                                          PER SUPPLEMENT B                         PER SUPPLEMENT A
                                                                         INTERSTATE INTRASTATE                          TOTAL       TOTAL
                                                                     A/C    TOTAL      TOTAL   COMBINED                COMPANY     COMPANY         INTRASTATE   INTRASTATE
                                                                      #                                                  2003        2004              2003         2004
                                                                      A       B          C        D                        E          F              G=C*E        H=C*F
   1   NET INVESTMENT SUMMARY
   2   GENERAL SUPPORT FACILITIES                                    2110     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!
   3   CENTRAL OFFICE SWITCHING EQUIPMENT                            2210     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!
   4   OPERATOR SYSTEMS EQUIPMENT                                    2220     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
   5   CENTRAL OFFICE TRANSMISSION EQUIPMENT                         2230     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!
   6   INFORMATION ORIG/TERM EQUIPMENT                               2310     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
   7   CABLE AND WIRE FACILITIES                                     2410     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!
   8   TANGIBLE ASSETS                                               2680     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
   9   INTANGIBLE ASSETS                                             2690     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  10    TOTAL PLANT IN SERVICE A/C 2001                                       #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!      EXH 1 Ln 35
  11
  12   PROPERTY HELD FOR FUTURE USE                                  2002     #REF!          #REF!         #REF!                   -           -
  13   TEL PLANT UNDER CONSTRUCTION                                  2003     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!      EXH 1 Ln 36
  14   RESERVED FOR FUTURE USE                                       2004     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  15   TELEPHONE PLANT ADJUSTMENT                                    2005     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  16   NONOPERATING PLANT                                            2006     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  17   GOODWILL                                                      2007     #REF!          #REF!         #REF!
  18    TOTAL PROPERTY, PLANT & EQUIPMENT                                                                                 #REF!        #REF!         #REF!        #REF!
  19
  20   ACCUM DEPRECIATION - PLANT IN SERVICE                         3100     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!      EXH 1 Ln 37
  21   ACCUM DEPRECIATION - FUTURE USE                               3200     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  22   ACCUM AMORTIZATION - TANGIBLE PROPERTY                        3400     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  23   ACCUM AMORTIZATION - INTANGIBLE PROPERTY                      3500     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  24   ACCUM AMORTIZATION - TEL PLANT ADJUSTMENT                     3600     #REF!          #REF!         #REF!                   -           -     #REF!        #REF!
  25   NONCURRENT DEFERRED INCOME TAX - NET                          4340     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!      (a)
  26   OTHER DEFERRED CREDITS - NET                                  4370     #REF!          #REF!         #REF!                                     #REF!        #REF!
  27   CUSTOMER DEPOSITS                                                      #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!      EXH 1 Ln 39
  28    NET TELEPHONE PLANT                                                   #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!
  29
  30   MATERIALS AND SUPPLIES                                        1220     #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!      EXH 1 Ln 41
  31   INVESTMENT IN NONAFFILIATED CO'S                              1402     #REF!          #REF!         #REF!                  -           -      #REF!        #REF!
  32   EQUAL ACCESS EQUIPMENT                                        1439     #REF!          #REF!         #REF!                  -           -      #REF!        #REF!
  33   OTHER JURISDICTIONAL ASSETS                                   1500     #REF!          #REF!         #REF!                  -           -      #REF!        #REF!
  34   CASH WORKING CAPITAL                                         XXXX      #REF!          #REF!         #REF!            217,752     233,398      #REF!        #REF!      EXH 1 Ln 43
  35    NET TEL PLANT, M&S AND CASH WORKING CAPITAL                           #REF!          #REF!         #REF!          #REF!        #REF!         #REF!        #REF!

       Note: (a) Noncurrent Deferred Income Tax not used as rate base item as balance is a debit (negative deferred income tax).
CARBON / EMERY TELCOM                                                                                                             EXHIBIT 8
JURISDICTIONAL APPORTIONMENT OF INVESTMENT AND EXPENSES                                                                         PAGE 2 OF 2
BASED ON MOST RECENT COST STUDY (2003)

                                                                 PER SUPPLEMENT B          PER SUPPLEMENT A
                                                          INTERSTATE INTRASTATE                       TOTAL
                                                      A/C    TOTAL      TOTAL   COMBINED             COMPANY       INTRASTATE   INTRASTATE
                                                       #                                               2004            2003         2004
                                                       A       B          C        D        E           F            G=C*E        H=C*F

  36   OPERATING EXPENSE AND TAX SUMMARY                     #REF!     #REF!
  37   NETWORK SUPPORT EXPENSE                        6110   #REF!     #REF!     #REF!                #REF!                       #REF!
  38   GENERAL SUPPORT EXPENSE                        6120   #REF!     #REF!     #REF!                #REF!                       #REF!
  39   CENTRAL OFFICE EXPENSE                         6210   #REF!     #REF!     #REF!                #REF!                       #REF!
  40   INFORMATION ORIG/TERM EXPENSE                  6310   #REF!     #REF!     #REF!                         -                  #REF!
  41   CABLE AND WIRE FACILITIES EXPENSE              6410   #REF!     #REF!     #REF!                #REF!                       #REF!
  42    SUBTOAL - PLANT SPECIFIC OPERATIONS EXPENSE                                                   #REF!                       #REF!       EXH 1 Ln 12
  43
  44   OTHER PLANT EXPENSE                           6510    #REF!     #REF!     #REF!                #REF!                       #REF!
  45   NETWORK OPERATIONS EXPENSE                    6530    #REF!     #REF!     #REF!                #REF!                       #REF!
  46   ACCESS CHARGE EXPENSE                         6540    #REF!     #REF!     #REF!                         -                  #REF!
  47   FEDERAL SUPPORT EXPENSE                       6540    #REF!     #REF!     #REF!                #REF!                       #REF!
  48   SUBTOAL - PLANT NONSPECIFIC OPERATIONS EXPENSE                                                 #REF!                       #REF!       EXH 1 Ln 14
  49
  50   MARKETING EXPENSE                              6610   #REF!     #REF!     #REF!                #REF!                       #REF!
  51   SERVICES EXPENSE                               6620   #REF!     #REF!     #REF!                #REF!                       #REF!
  52    SUBTOTAL CUSTOMER OPERATIONS                                                                  #REF!                       #REF!       EXH 1 Ln 15
  53
  54   EXECUTIVE AND PLANNING EXPENSE                 6710   #REF!     #REF!     #REF!                #REF!                       #REF!
  55   GENERAL AND ADMINISTRATIVE EXPENSE             6720   #REF!     #REF!     #REF!                #REF!                       #REF!
  56    SUBTOTAL CORPORATE OPERATIONS                                                                 #REF!                       #REF!       EXH 1 Ln 16
  57
  58    SUBTOTAL OPERATING EXPENSES                          #REF!     #REF!     #REF!                #REF!                       #REF!
  59                                                                                                                                      -
  60   DEPRECIATION AND AMORTIZATION                  6560   #REF!     #REF!     #REF!                #REF!                       #REF!       EXH 1 Ln 16
  61   OTHER OPERATING TAX                            7240   #REF!     #REF!     #REF!                #REF!                       #REF!       EXH 1 Ln 17
  62   EQUAL ACCESS EXPENSE                                  #REF!     #REF!     #REF!                                            #REF!
  63   INTEREST ON CUSTOMER DEPOSITS                  7500   #REF!     #REF!     #REF!                #REF!                       #REF!
  64   RENT REVENUE - ACCESS                          5240   #REF!     #REF!     #REF!                                            #REF!
  65    TOTAL OPERATING EXPENSE AND TAX                      #REF!     #REF!     #REF!                #REF!                       #REF!
  66
  67   STATE INCOME TAX                                      #REF!     #REF!     #REF!                #REF!                       #REF!
  68   FEDERAL INCOME TAX                                    #REF!     #REF!     #REF!                #REF!                       #REF!
                                                                                                                   CARBON / EMERY TELCOM                                                                                                                                                      EXHIBIT 9
                                                                                                         2004 Rate Case - Revenue Requirement Calculation
                                                                                                                          Total Company


                                                                                 Total Co               (note a)               (note b)                (note c)                  (note d)              (note e)                 (note f)               TOTAL              ADDITIONAL             TOTAL
                                                                                   2004                Qwest DS3                Plant               Adjustments                 Interstate            Interstate                                    COMPANY               REVENUES            COMPANY
                                                                                 INCOME                adjustment            Adjustments            for Proposed                  FUSC               Out-of-Period                                 with adj. taxes         REQUIRED            REVENUE
                                                      Reference                STATEMENT                                                            Depreciation               Adjustment            Adjustments                                                                           REQUIREMENT
                                                                                    (D)                      (E)                   (F)                   (G)                       (H)                    (I)                       (J)                  (K)                  (L)                   (M)
                                                                                                                                                                                                                                                   SUM(D)..(J)                                  (K) + (L)
                                                                             ==========               ==========            ==========            ==========               ==========               ==========             ==========              ==========          ==========            ==========
  1                                                                                                                                                                                                                                                                        #REF!                  #REF!
  2 LOCAL SERVICE                                     SCH A LN 72                  #REF!                                                                                                                                                               #REF!                                      #REF!
  3 INTERSTATE ACCESS                                 SCH A LN 72                  #REF!                                        #REF!                  #REF!                      #REF!                   #REF!                                        #REF!                                      #REF!
  4 STATE USF                                                                                    0                                                                                                                                                                 0                                       0
  5 INTERSTATE USF                                                                               0                                                                                                                                                                 0                                       0
  6 STATE ACCESS                                      SCH A LN 98                  #REF!                     (60,636)                                                                                                                                  #REF!                                      #REF!
  7 STATE SPECIAL ACCESS                              SCH A LN 99                  #REF!                                                                                                                                                               #REF!                                      #REF!
  8 MISC-INTRASTATE                                   SCH A LN 109                 #REF!                                                                                                                                                               #REF!                                      #REF!
  9 STATE UNCOLLECT.                                  SCH A LN 111                 #REF!                              0                  0                           0                          0                                                      #REF!                                      #REF!
 10                                                                              ------------------ ------------------ ------------------ ------------------               ------------------       ------------------     ------------------   ------------------   ------------------ ------------------
 11  TOTAL OP REVENUE                                 SUM LNS 1~9                  #REF!                     (60,636)        #REF!                 #REF!                          #REF!                   #REF!                               0        #REF!               #REF!                  #REF!
 12
 13 PLANT SPECIFIC OP                                 SCH A LN 133                 #REF!                                           178,180                                                                                                             #REF!                                             #REF!
 14 DEPRECIATION AND AMORTIZATION                     SCH A LN 143                 #REF!                                            99,861             #REF!                                                                                           #REF!                                             #REF!
 15 PLANT NONSPECIFIC OP                              SCH A LN 150                 #REF!                                                                                          #REF!                                                                #REF!                                             #REF!
 16 CUSTOMER OPERATIONS                               SCH A LN 159                 #REF!                                                                                                                                                               #REF!                                             #REF!
 17 CORPORATE OPERATIONS                              SCH A LN 170                 #REF!                                                                                                                                                               #REF!                                             #REF!
 18 OPERATING TAXES                                                                #REF!                                                                                                                                                               #REF!                                             #REF!
 19 OTHER INCOME & EXPENSE                            SCH A LN                                  0                                                                                                                                                                  0                                                    0
 20                                                                              ------------------    ------------------    ------------------       ------------------       ------------------     ------------------      ------------------    ------------------     ------------------            ------------------
 21  TOTAL OP EXPENSE                                 SUM LNS 11-17                #REF!                              0            278,041             #REF!                     #REF!                               0                       0         #REF!                              0              #REF!
 22
 23 OP INCOME B4 INT & TAXES                                                       #REF!                     (60,636)           #REF!                  #REF!                      #REF!                   #REF!                              0         #REF!                   #REF!                     #REF!
 24
 25 STATE INCOME TAX                                  SCH A LN 178                 #REF!                                                                                                                                                   #REF!                               #REF!                      #REF!
 26 FEDERAL INCOME TAX                                SCH A LN 177                 #REF!                                                                                                                                                   #REF!                               #REF!                      #REF!
 27                                                                              ------------------ ------------------ ------------------ ------------------           ------------------   ------------------ ------------------   ------------------                   ------------------     ------------------
 28  TOTAL OP TAXES                                                                #REF!                              0                  0                           0                    0                   0                   0        #REF!                               #REF!                      #REF!
 29
 30 NET OP INCOME                                                                 #REF!                      (60,636)           #REF!                  #REF!                      #REF!                   #REF!                              0         #REF!                   #REF!                     #REF!
31                                      (A)                  (B)                     (C)
32                                   12/31/03             12/31/04             [(A) + (B)] / 2
33                                  Plant Bal.           Plant Bal.                 2004
34                                Per Trial Bal.        Per Trial Bal            AVERAGE
 35                               ==========            ==========             ==========
 36 PLANT IN SERVICE                  #REF!                #REF!                  #REF!                                         1,124,875                                                                                                              #REF!                                             #REF!
 37 PLANT UNDER CONSTR.               #REF!                #REF!                  #REF!                                                                                                                                                                #REF!                                             #REF!
 38 DEPR. RESERVE                     #REF!                #REF!                  #REF!                                            (49,931)            #REF!                                                                                           #REF!                                             #REF!
 39 DEFERRED TAXES                                0                      0                       0                                                                                                                                                                 0                                                    0
 40 CUSTOMER DEPOSITS                 #REF!                  #REF!                 #REF!                                                                                                                                                               #REF!                                             #REF!
 41 PREPAYMENTS                                   0                      0                       0                                                                                                                                                                 0                                                    0
 42 MATERIALS                         #REF!                  #REF!                 #REF!
 43 RTB STOCK                                     0                        0                                                                                                                                                                               0                                          0
 44 WORKING CASH                         217,752                  233,398                 225,575                                                                                                                                                  225,575                                      225,575
 45                             ------------------    ----------------------- ------------------  ------------------ ------------------ ------------------                 ------------------   ------------------ ------------------   ------------------   ------------------ ------------------
 46  TOTAL RATE BASE                  #REF!                   #REF!                   #REF!                         0      1,074,944             #REF!                                        0                   0                   0        #REF!                           0          #REF!
 47
 48 RETURN ON RATE BASE                                      #REF!                                                                                                                                                                                     #REF!                                             #REF!
CARBON / EMERY TELCOM                                                                                            Page 1
Notes to Exhibit 9


(a) Removal of Qwest DS3 Special Access Revenue
    Carbon and Qwest have a DS3 for exchanging frame relay traffic. Carbon bills the underlying carriers for the
    capacity usage on that DS3 and so maintains this not be run through the billing & revenue recognition
    process with Qwest. However Qwest insists on paying Carbon and billing Carbon for the same. This
    adjustment reflects the exclusion of those revenues included Carbon's G/L where the expense side has been
    excluded.

          Monthly                                  $      5,053
          Annual (Monthly X 12)                    $     60,636   To EXHIBIT 1


(b) Plant Adjustments
    The following adjustments reflect known and measurable plant additions to be completed during 2005
    together with workorders for contracted buried cable maintenance. .

    The plant addition adjustments are entered originally into EXHIBIT 5 where appropriate calculations for six
    months depreciation expense and additions to reserve at 50% of the six months depreciation are made.
    Additionally, the plant additions are multiplied by 50 percent to derive the adjustment to the plant balance.


                                                                                 To EXHIBIT 9
                                                                                  COLUMN F

    Total Additions to Plant Operations Expense                                  $   178,180 From EXH 5 Ln 30 Col A

    Total Additions to Depreciation Expense Adjustment                           $    99,861 From EXH 5 Ln 22 Col G

    Total Additions to Telecommunications Plant in Service                       $ 1,124,875 From EXH 5 Ln 22 Col A

    Total Additions to Accumulated Depreciation Reserve                          $    49,931 From EXH 5 Ln 22 Col D

       Interstate Access Revenue Effect of Plant Adjustments
       EXHIBIT 9 also reflects an adjustment for increased interstate access revenue attributable to the
       plant adjustments indicated above. Development of the interstate access revenue adjustment is
       shown at EXHIBIT 5. The adjustment reflects calculation of the cost study impact of the plant
       additions with the addition of the plant specific operations expense apportioned based on the
       respective interstate factor for plant specific operations expense.



          Adjustment to Interstate Access Revenue - Increase                         #REF!      From EXH 5 Ln 33Col A
CARBON / EMERY TELCOM                                                                                     Page 2
Notes to Exhibit 9

(c) Depreciation Adjustments

  Carbon/Emery has requested adjusted depreciation rates in this case. Based on approval of proposed rates,
  depreciation expense was increased to reflect the estimated increase in depreciation expense generated from
  the proposed rates. Additionally, Carbon/Emery adopted Emery's depreciation rates at the time of acquisition
  of Qwest exchanges. Carbon over-depreciated four accounts by using rates other than Commission approved
  rates. Therefore, the amount of over-depreciation was removed from test year expenses and accumulated
  depreciation.

  EXHIBIT 6 shows the calculation of the effect of the proposed increase in depreciation rates.

  EXHIBIT 7 shows the calculation of the effect of the effect of using the depreciation rates of Emery.




   Depreciation Expense Increase                                 #REF!      From EXHIBIT 6, Line 32
   Depreciation Reserve Reduction                                #REF!      From EXHIBIT 6 Line 38

   EXHIBIT 9 also includes an adjustment for the
   effect on interstate access revenue for the
   above adjustment to depreciation expense.                    #REF!       From EXHIBIT 6 Line 34


(d) Removal of Federal Universal Service Contribution Recovery and Expense

     The company's 2004 revenue includes amounts billed to customers for recovery of the company's
     federal universal service contribution. The Federal Universal Service Charge (FUSC) for purposes of
     recovery is billed pursuant to National Exchange Carrier Association (NECA) Tariff FCC No. 5 for
     which the company is an issuing carrier. Because of tax recovery built into the FUSC rate charged
     end users and timing differences, the FUSC revenue of and expense are not equal. Because the net
     impact on return is designed to be net zero, EXHIBIT 9, Column H reflects removal of both the
     revenue and expense. The adjustment is summarized at EXHIBIT 11. Absent this adjustment, the
     total company revenue requirement on EXHIBIT 9 would be overstated.

                   FUSC Revenue Removed                         #REF!       From EXHIBIT 11
                   FUSC Expense Removed                         #REF!       From EXHIBIT 11

         Note: FUSC Expense is not an amount included for interstate access charge
                 revenue requirement, thus no adjustment to interstate access revenue is required.


(e) Removal of Prior Period Amounts from Interstate Access Revenue

     As shown at EXHIBIT 11, the company's 2005 booked interstate access revenue includes a prior
     period adjustment (debit) in the amount of $315,332. Column I of EXHIBIT 9 reflects addition of
     this amount to the Test Year 2004 Interstate Access Revenue. Absent addition of this amount, the
     2004 adjusted Test Year total company revenue requirement on EXHIBIT 9 would be overstated.
CARBON / EMERY TELCOM                                                                                      Page 3
Notes to Exhibit 9


(f) Capital Structure and Rate of Return

    The Company proposes a 10.05% return on rate base. The intrastate rate of 10.05% is based on the
    assumption that capital is split equally between debt and equity for which the maximum allowable after-
    tax cost of equity is 12.5%, and the maximum allowable cost of debt is 7.6%. The calculation of the
    10.05 rate of return is shown at EXHIBIT 3.

    The total company rate of return of 10.45% is the composite of the 10.05% intrastate rate of return and
    the current Federal Communicaitons Commission prescribed interstate rate of return of 11.25%.
    Calculation of the composite 10.45% rate is also shown at EXHIBIT 3.

    Also shown at EXHIBIT 3 is the calculation of the required return on net-investment at the composite
    total company rate of return. The return is grossed up for income taxes reflective of nontaxable interest.




(g) Income Taxes

   The calculation of income taxes is shown at EXHIBIT 12.


(h) Total Company Revenue Changes

   EXHIBIT 10 summarizes changes in total company revenues that the company proposes in this rate case.



      Carbon/Emery's current basic local service rates are below the Affordable Base Rates established by
      the Commission. At EXHIBIT 2.1, the increase in revenue at current levels of customers is
      calculated. Additionally, the company is proposing increases in nonrecurring charges related to
      service orders.

                                                             Per Exhibit 2.1
                                                                               Proposed
                                                  Current       Proposed       Increase
   RESIDENCE ONE-PARTY SERVICE                   $11.93          $13.50         $1.57
   BUSINESS ONE-PARTY SERVICE                    $19.37          $23.00         $3.63
CARBON / EMERY TELCOM                                                                                                                       EXHIBIT 10
SUMMARY OF TOTAL COMPANY REVENUE SOURCES

                                       REVENUES BEFORE                  PROPOSED RATE                                PROJECTED
Line           DESCRIPTION              RATE INCREASE                      CHANGE                                    REVENUES
 #                                             (A)                            (B)                   Reference         (C) = (A) + (B)

 1     LOCAL                                     #REF!                               $299,341 Exhibit 2.1                 #REF!

 2     STATE USF                       $                           -            #REF!              Note A                 #REF!

 3     INTERSTATE USF                  $                           -   $                       -                $                       -

 4     STATE ACCESS                              #REF!                 $              351,580 Exhibit 2.2                 #REF!

 5     INTERSTATE ACCESS                         #REF!                                                                    #REF!

 6     STATE SPECIAL ACCESS                      #REF!                 $                       -                          #REF!

 7     BILLING & COLLECTION            $                       -       $                       -                $                       -

 8     MISCELLANEOUS-State                       #REF!                 $                       -                          #REF!

 9     UNCOLLECTIBLE-State                       #REF!                 $                       -                          #REF!

 10       TOTAL                                  #REF!                          #REF!                                     #REF!

                                       Exhibit 9 Col L Ln 11           Exhibit 9 Col L Ln 11                    Exhibit 9 Col M Ln 11



       Note A - State Universal Service Fund (USF) Requirement
       The state USF requirement is the total proposed revenue change less
       the proposed changes for local and state access revenues.
CARBON/EMERY                                                                                                                   EXHIBIT 11
ANALYSIS OF 2004 INTERSTATE ACCESS REVENUE

                                                                        Remove    Removal of      Combined
                                                        Trial Balance                                                         Adjusted
                                                                         FUSC    Out-of-Period   Adjustments

 5081.1   FEDERAL BASELINE LIFELINE REDUCTION             #REF!                                            -                  #REF!
 5081.3   INTERSTATE FEDERAL UNIVERSAL SERVICE CHARGE     #REF!         #REF!                      #REF!       To EXHIBIT 9   #REF!
 5081.0   INTERSTATE END USER REVENUE                     #REF!                                            -                  #REF!
 5082.1   INTERSTATE COMMON LINE ACCESS REVENUE           #REF!                                            -                  #REF!
 5082.2   INTERSTATE SWITCHED ACCESS REVENUE              #REF!                                            -                  #REF!
 5082.4   INTERSTATE POOL ADJUSTMENTS                     #REF!                                            -                  #REF!
5082.41   INTERSTATE CARRIER COMMON LINE - NECA           #REF!                                            -                  #REF!
5082.42   INTERSTATE SWITCHED ACCESS - NECA               #REF!                                            -                  #REF!
5082.43   INTERSTATE PRIOR PERIOD ADJMNTS - NECA          #REF!                     #REF!          #REF!       To EXHIBIT 9   #REF!
5082.44   INTERSTATE LONG TERM SUPPORT - NECA             #REF!                                        -                      #REF!
5082.45   INTERSTATE LOCAL SWITCHING SUPPORT - NECA       #REF!                                        -                      #REF!
5082.46   INTERSTATE COMMON LINE SUPPORT - NECA           #REF!                                        -                      #REF!
5082.47   INTERSTATE SPECIAL ACCESS - NECA                2,160,482                                    -                       2,160,482
          INTERSTATE SPECIAL ACCESS REVENUE               #REF!            -           -               -                      #REF!
          SURCHARGE REVENUE                               #REF!            -           -               -                      #REF!
          Total Interstate Access Revenue                 #REF!         #REF!      #REF!           #REF!                      #REF!


   6540 FUSC EXPENSE REMOVAL                               #REF!        #REF!                      #REF!       To EXHIBIT 9

                                                                                                      184293
CARBON / EMERY TELCOM                                                                                                                                        EXHIBIT 12
2004 RATE CASE
INCOME TAX CALCULATION - TOTAL COMPANY


 1   Net Operating Income Before Taxes        EXH 1 Ln 22 Col M                                                                                               #REF!
 2   Interest Deduction                       EXH 3 Ln 13                                                                                                     #REF!
 3   Taxable Income                           Ln 1 - Ln 2                                                          Tax Rate                                   #REF!
 4   State Income Taxes                       5% * Ln 9                                                              5%                                       #REF!
 5   Amount Subject to Federal Income Taxes   Ln 3 - Ln 4                                                                                                     #REF!

     Federal Income Taxes
                                                                    Taxable income                  Rate Layer                 Income in
                                                                                     But Not Over                  Tax Rate                          Tax
                                                                        Over                          Amount                     Layer
 6   IRS Corporate Tax Rate Table                                   $             - $      50,000   $   50,000        15%        #REF!           #REF!
 7      "                "                                                   50,000        75,000       25,000        25%           25,000           6,250
 8      "                "                                                   75,000       100,000       25,000        34%           25,000           8,500
 9      "                "                                                 100,000        335,000      235,000        39%          235,000          91,650
10   Ave Rate - First $235,000 of Income                                                                             #REF!       #REF!           #REF!
11   Residual at 34% Rate                     Ln 5 - Ln 11                 335,000     10,000,000     9,665,000     34.000%      #REF!           #REF!
12   Total Taxable Income and Tax             Ln 5 10 + Ln 11                                                        #REF!       #REF!                        #REF!
13 Return After Income Taxes                  Ln 1 - Ln 4 - Ln 12                                                                                             #REF!
14 Rate Base                                  EXH 1 Ln 33 Col M                                                                                               #REF!
15 Rate of Return                             Ln 13 / Ln 14                                                                                                   #REF!
                                                                                      Required                                   Tax
                                                                     Per Books       Adjustment         Reference Forward     Requirement
                                                                         A               B                      C                  D
     TAX ADJUSTMENT                                                 EXH 1 COL D         D-A
      STATE INCOME TAX                                                 #REF!           #REF!        EXH 1 Col L Ln 21           #REF!        Ln 4
      FEDERAL INCOME TAX                                               #REF!           #REF!        EXH 1 Col L Ln 22           #REF!        Ln 12
        TOTAL TAXES                                                    #REF!           #REF!                                    #REF!

				
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