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Table 1:  Traffic Sensitive Rate Prescription Methodology
for Beehive Telephone Company January 1, 1998 Rates
(See Table 2 for development of Combined data)





Utah
Nevada
COMBINED


Line
(a)
(b)
(c)
(d)









1 
Total Plant in Service -- Prescribed (Average of similar-sized companies)
$3,773,709 


2 
Prescribed Oper. Exp. to Investment Ratio


0.2500 


3 
Allowed Total Operating Expenses (TOE) (Ln. 2 *Ln. 1)

$943,427 


4 
Reported TOE (Total 1995, 1996)


$6,873,667 


5 
Reported Interstate TOE (Total 1995, 1996)


$4,285,022 


6 
Ratio of Reported Interstate to Total TOE
 (Ln. 5/Ln. 4)

0.6234 


7 
Allowed Interstate Oper. Exp. (Ln. 3 * Ln. 6)


$588,130 


8 
 Average Net Investment -- Prescribed


$2,244,584 



(Average for similar-sized companies)





9 
FCC Authorized Rate of Return


11.25%


10 
Total  Return on Invstmt (Ln. 8 * Ln. 9)


$252,516 


11 
Reported Net Plant (Total 1995, 1996)
$5,563,362 
$1,428,614 
$6,991,976 


12 
Reprtd Interstate Net Plant (Total 1995, 1996)
$2,675,434 
$595,434 
$3,270,868 


12a
Percent of total by State
81.80%
18.20%
100.00%


13 
Ratio of Interstate to Total Net Plant 
(Ln. 12/Ln. 11)

0.4678 


14 
Interstate Return on Invstmnt (ln 10 * Ln. 13)


$118,128 


14a
Interstate Return by State (Ln. 14 * Ln. 12a)
$96,624 
$21,504 



15 
Interstate Fixed Charges (Avg. 1995, 1996)
$10,499 
$0 
$10,499 


16 
Interstate Return Subject to Fed. Inc. Tax






(Ln. 14 - Ln. 15, allocated by Ln. 11a)
$86,125 
$21,504 
$107,629 


17 
Federal Inc. Tax @ 34% (Ln. 16 * 0.51515)
$44,367 
$11,078 
$55,445 


18 
State Inc. Tax (rate * (Ln. 16 + Ln. 17))
$6,525 
$0 
$6,525 


19 
Customer Oper. Services  (Avg. 1995, 1996)


$56,738 


20 
Allowed Interstate Revenue Requirement
(Lns.7+14+17+18+19)

$824,965 


21 
Reported Interstate Rev. Reqmnt  
(Avg. 1995, 1996)

$2,425,982 


22 
Ratio of Allowed to Reported Rev. Reqmnt


0.3401 





Rates  (Ln. 22 * Filed Rates)

               Filed
       Prescribed


Local Switching -- Premium

0.028252 
0.009607 


Local Switching -- Non-Premium

0.012714 
0.004323 


Premium Local Transp. Facility per MOU per Mile

0.000533 
0.000181 


Non-Prem. Local Transp Facility per MOU per Mile

0.000240 
0.000082 


Premium Local Transp. Termination

0.026992 
0.009179 


Non-Premium Local Transp. Termination

0.012105 
0.004116