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1 Control Number : Item Number : 1 Addendum StartPage : 0

2 October 1, OCT - PM 3: 29 F'Lfuira11C U T i._f 7 'i-d C l^x "".'rl:^s^ui'^ Ffl{hG CLERK CHR Solutions 5929 Balcones Drive, Suite 200 Austin, TX Phone: Fax: Ms. Naomi Hudgins Filing Clerk Public Utility Commission of Texas 1701 North Congress Avenue Austin, Texas RE: Tariff Control No. 4J7W_ Notice of Minor Rate Changes by Alenco Communications, Inc., Effective December 1, 2014, Pursuant to PUC Substantive Rule Dear Ms. Hudgins: Accompanying this letter please find an original and six (6) copies of a Notice by Alenco Communications, Inc. ("ACI" or the "Company") to implement a minor rate change pursuant to Substantive Rule ACI proposes an effective date of December 1, 2014 for the implementation of the minor rate change in its Local Exchange Tariff. In compliance with Substantive Rule , the effective date of the rate change for all affected local exchange customers is more than 10 days after the Company plans to send the notice describing all affected services and proposed rate changes. Please call me at (512) if there are any questions regarding this filing. Sincerely, Ck Deb Morgan Authorized Representative Alenco Communications, Inc. DM/pjf Attachments cc: Infrastructure Reliability, Franchises and Tariffs, Public Utility Commission of Texas Office of Public Utility Counsel Mr. Ray Bussell, Alenco Communications, Inc. x,;.igiin, TX =cr,gal ore, India C-,n,cen, A D DI' a,, "x Houston IX L^ ^ bo^k, ^a P4rch2il, SD Poniard OR RuE;10 Cr iisl-) S'oux ra!i^, ;,!D. CIHI RSolutions ^ ; 1

3 NOTICE FOR MINOR RATE CHANGE TO THE PUBLIC UTILITY COMMISSION OF TEXAS BY ALENCO COMMUNICATIONS, INC. D/B/A ACI P.O. BOX 1000 JOSHUA, TEXAS A SMALL LOCAL EXCHANGE CARRIER NOTICE FOR MINOR RATE CHANGE PURSUANT TO PUC SUBSTANTIVE RULE

4 1 3 ALENCO COMMUNICATIONS, INC. D/B/A ACI INDEX 1. Attachment A - Notice For Minor Rate Change 2. Attachment B - Customer Notice 3. Attachment C - Resolution of Board of Directors 4. Attachment D - Proposed Tariff Pages Current Tariff Pages 5. Attachment E - Revenue Impact

5 ATTACHMENT A ALENCO COMMUNICATIONS, INC. D/B/A ACI NOTICE FOR MINOR RATE CHANGE

6 5 ALENCO COMMUNICATIONS, INC. D/B/A ACI NOTICE FOR MINOR RATE CHANGE PURSUANT TO SUBSTANTIVE RULE Alenco Communications, Inc. d/b/a ACI ("ACI" or the "Company") is a Small Local Exchange Carrier, as defined by Substantive Rule 26.5, and is subject to the ratemaking jurisdiction of the Public Utility Commission of Texas. The Company, pursuant to Substantive Rule , submits this Notice proposing to increase its Residence Monthly Local Exchange Service Rates in all its Exchanges to meet the FCC's local rate floor of $16 established in the 7th Order on Reconsideration that must be effective by December 1, The Commission's approval of ACI's residential rates will allow the Company to continue receiving the maximum federal universal service fund, high-cost loop support for the funding period January 2, 2015 to June 30, ACI is also proposing to increase its Business Monthly Local Exchange Service Rates in all exchanges it serves. The proposed rate changes shown on Exhibit E for residence and business customers will be effective on December 1, This Notice of Minor Rate Change is made in accordance with the provisions outlined in Substantive Rule and is arranged according to the items listed in subsection (c) of that rule. (A) Customer Notice: A copy of the proposed notice, which satisfies the requirements of Substantive Rule (d)(3), is included in Exhibit B of this filing. (B) Provision of Notice: In accordance with the provisions set forth in Substantive Rule (d), ACI plans to provide direct notice to the affected residential and business customers describing the services affected by the proposed rate changes. Substantive Rule (d) requires that notice be provided not later than the 10th day before the effective date of the proposed rate changes. The Customer Notice was mailed to all affected ACI customers on September 26, 2014, which is more than ten days before the December 1, 2014 effective date of the proposed rate changes. The notice also contains information that explains a customer's right to petition for a review of the rate change at the Texas PUC and how a customer may obtain a copy of the proposed tariff pages from the Company's business office. In addition, the notice includes the amount by which the Company's total intrastate gross revenues will increase as a result of the proposed rate changes. The Affidavit of Customer Notice is included in this filing. (C) Waiver of Notice Requirements in P U C Subst. R (d): None. (D) Resolution of Board of Directors: A copy of ACI's Board of Directors' Resolution approving the proposed rate change is included as Attachment C of this filing. (E) Effective Date: ACI proposes to implement the minor rate changes described in this application on December 1, 2014.

7 Alenco Communications d/b/a ACI Notice For Minor Rate Change Page 2 (F) Description of the Services: ACI proposes to increase its Residence Monthly Local Exchange Service Rates in all its Exchanges to meet the FCC's local rate floor of $16 established in the 7th Order on Reconsideration that must be effective by December 1, The Commission's approval of ACI's residential rates will allow the Company to continue receiving the maximum federal universal service fund, high-cost loop support for the funding period January 2, 2015 to June 30, ACI is also proposing to increase its Business Monthly Local Exchange Service Rates in all exchanges it serves. The proposed rate changes shown on Exhibit E for residence and business customers will be effective on December 1, (G) Proposed Tariff: A copy of the proposed and current tariff pages are found as Attachment D of this filing. (H) Access Lines: ACI has the following number of access lines (residence and business) in service in the State of Texas: 1,831. (I) Effect on Revenues: ACI estimates that the proposed minor rate change will increase the regulated intrastate gross annual revenues of the Company by $41,754or 1.48%. A schedule showing the revenue impact of the rate change is included as Attachment E of this filing. The minor rate changes described above, together with any other changes to basic local access lines rates that took effect during the 12 months preceding the effective date of the proposed changes, will not increase the Company's total regulated intrastate gross annual revenues by more than 5% nor increase the basic local exchange rates more than 50% as provided in PURA, Section (a)(2) and (b). (J) Other: Please direct any questions, requests for additional information, or correspondence to the undersigned. Respectfully Submitted: Q03 ryn.-) Authorized Representative Alenco Communications, Inc. d/b/a ACI Date: October 1,

8 ATTAC H M E N T B ALENCO COMMUNICATIONS, INC. D/B/A ACI Proposed Customer Notice

9 ^Mt ^tlr^t^ (^;t^rnr»tllaar^aliril^^, Ia^r. f :St. 0; f; STATE OF TEXAS COUNTY OF JOHNSON AFFIDAVIT - CUSTOMER NOTICE BEFORE ME, the undersigned authority, personally appeared Ray Bussell who made this Affidavit and on oath stated the following: 1. Iant the General Manager for Alenco Communications, Inc. 2. A copy of the attached bill insert was mailed to all residential and business customers of Alenco Communications, Inc. with their September 26, 2014 billing. Sig,Tai ire of Affiant SUBSCRIBED and SWORN TO before me, this ^^^ day of ^^'^t'9`11^c#; I'^..^ NOTARY^ ^ GX LIC in and f r^.the State of Texas 4 Mary Joti9omcricf' Commission Expires 'lfrl^` OS I'. 1), liu\ 111(10,140<bua,'li^a I0I)0 I'i14iir (Illi) I I:-(!12 7 Fit \ (131 '47) I.li-iflM) wmvmri^;lul^^^l.cum 8

10 Customer Notice The Federal Communications Commission (FCC) released a 7th Order on Reconsideration released on June 10, 2014, that established a local rate floor of $16.00 for telephone companies to charge residential customers by December 1, Failure to charge a rate at or above the rate floor for a residential local exchange access line would result in a loss of revenues from the Federal Universal Service Fund. As a result, Alenco Communications, Inc. ("ACI" or the "Company") plans to file a notice with the Public Utility Commission of Texas ("Commission") for approval of a minor rate change, pursuant to PUC Substantive Rule , proposing to increase its Residence Monthly Local Exchange Access Line Rates for all exchanges it serves. ACI is aldo proposing to increase its Business Monthly Local Exchange Access Line Rates for the business services listed in the Table. The proposed rates for all residential and business customers will be effective December 1, Current and proposed rates are: Local Exchange Tariff Current Rates Proposed Rates Monthly Local Exchan ge Access Line Rates - Section 1 Single Line - Residence Alexander, Carlton, Knippa, Maryneal, McCaulley and Sylvester -Exchanges $10.50 $12.50 Dolores, Modeana, and West Marietta Exchanges $14.75 $16.00 Donie Exchange $14.00 $16.00 Key System - Donie Exchange $14.19 $16.25 Key System - Maryneal, McCaulley, and Sylvester Exchanges $12.05 $12.75 Single Line - Business Alexander and Carlton Exchanges $14.20 $17.20 Dolores, Modeana, and West Marietta Exchanges $24.25 $26.10 Donie Exchange $21.20 $24.20 Knippa Exchange $13.25 $16.25 Maryneal, McCaulley and Sylvester Exchanges $19.10 $19.25 Rotary Hunting - Business Alexander, Carlton, Maryneal, McCaulley and Sylvester Exchanges $20.92 $21.25 Dolores, Modeana, and West Marietta Exchanges $23.25 $25.25 Donie Exchange $20.92 $25.00 Knippa Exchange $14.50 $17.50 PBX/Key System Trunk - Business Alexander and Carlton Exchanges - PBX/Key System Dolores, Modeana, and West Marietta Exchanges = PBX/Key System $20.92 $23.15 $23.25 $30. Donie Exchange - Key System 15 $22.75 $30.15 Knippa Exchange e- PBX/Key System $11.75 $17.50 Maryneal, McCaulley and Sylvester Exchanges - Key System $22.75 $23.15 Customers with questions or who want more information on this notice may come to the Company's business office located at 427 N. Broadway, Joshua, Texas, or call (817) during normal business hours. A complete copy of the tariff pages and rates for the services listed will be available for inspection at the address above after this application is filed with the Commission on October 1, Persons who wish to formally participate in the Commission's proceedings concerning this notice, or who wish to express their comments concerning this notice should contact the Public Utility Commission of Texas, Office of Customer Protection, P.O. Box 13326, Austin, Texas, , or call the Public Utility Commission's Office of Customer Protection at (512) or, toll free, at (888) after October 1, 2014 when the Cooperative files its application at the Commission, pursuant to PUC Substantive Rule Hearing- and speech-impaired individuals with text telephones (TTY) may contact the commission at (512) or reach the Commission's toll free number through Relay Texas at (800) The, Commission will review the proposed changes if it receives complaints regarding the proposed changes signed by a number ofjl affected local service customers equal at least to the lesser of 1,500 or five percent of those customers. The fivej percent l limitation will be calculated based upon the total number of customers of record as of the calendar month prece d ing the, Commission's receipt of the complaint(s). Customers will have 30 days from receipt of the Customer Notice or until 2014 Nov^mber 1, to file comments in this proceeding concerning the proposed rates the Cooperative plans to increase on December 1, The Cooperative's estimated annual revenue increase for these rate changes is $41,754, which is 1.48% of ACI's gross annual intrastate regulated revenues. 9

11 ATTACHMENT C ALENCO COMMUNICATIONS, INC. D/B/A ACI Resolution of Board of Directors,, 10

12 ALENCO COMMUNICATIONS, INC. d/b/a ACI CERTIFICATE OF RESOLUTION The Board of Directors of Alenco Communications, Inc. d/b/a ACI ("ACI" or the "Company"), during a meeting held at the offices of the Company on August 28, 2014, fully considered and approved, by consensus, a proposal to file a notice with the Public Utility Commission of Texas ("Commission") for approval of a minor rate change, pursuant to PUC Substantive Rule , proposing to implement a minor rate change in its Residence Monthly Local Exchange Access Line Rates in all exchanges served, as shown in Attachment 1. This action is prompted by the FCC's 7th Order on Reconsideration released on June 10, 2014 that established a local rate floor of $16.00 for telephone companies to charge residential customers by December 1, Failure to charge a rate at or above the rate floor for a local exchange access line would result in a loss of revenues from the Federal Universal Service Fund. The Board also approved an increase for Business Monthly Local Exchange Access Line Rates in all its exchanges, as shown on Attachment 1. The proposed rate changes will be effective on December 1, The Company will also send the customer notice regarding the rate increase to all its affected customers in accordance with Substantive Rule (d). The Board believes the proposed rate is just and reasonable, is not unreasonably preferential, prejudicial, or discriminatory, and is sufficient, equitable, and consistent in the application. CERTIFICATION I, Richard Allen, certify that I am the President of the Board of Director's for Alenco Comnlunications, Inc. d/b/a ACI and that the above is a true and accurate resolution adopted by the Board of Directors of ACI. ^ ^. Richard Allen President - Board of Directors ^ Date 11

13 Board of Resolution ACI - Minor Rate Change Effective December 1, 2014 Current and proposed rates are: Local Exchange Tariff Current Rates Proposed Rates Monthly Local Exchange Access Line Rates - Section 1 Single Line - Residence Alexander, Carlton, Knippa, Maryneal, McCaulley and Sylvester Exchanges $10.50 $12.50 Dolores, Modeana, and West Marietta Exchanges $14.75 $16.00 Donie Exchange $14.00 $16.00 Key System - Donie Exchange $14.19 $ Single Line - Business 75 Alexander and Carlton Exchanges $14.20 $17.20 Dolores, Modeana, and West Marietta Exchanges $24.25 $26.10 Donie Exchange $21.20 $24.20 Knippa Exchange $13.25 $16.25 Maryneal, McCaulley and Sylvester Exchanges $19.10 $19.25 Rotary Hunting - Business Alexander, Carlton, Maryneal, McCaulley and Sylvester Exchanges $20.92 $21.25 Dolores, Modeana, and West Marietta Exchanges $23.25 $25.25 Donie Exchange $20.92 $25.00 Knippa Exchange $14.50 $ PBX/Key System Trunk - Business Alexander and Carlton Exchanges - PBX/Key System $20.92 $ Dolores, Modeana, and West Marietta Exchanges = PBX/Key System $23.25 $30.15 Donie Exchange - Key System $22.75 $ Knippa Exchange - PBX/Key System $11.75 $17.50 Maryneal, McCaulley and Sylvester Exchanges - Key System $22.75 $23.15 Note: The Company's estimated annual revenue increase for these rate changes is $41,754, which is 1.48% of ACI's gross annual intrastate regulated revenues. 12

14 ALENCO COMMUNICATIONS, INC. MINOR RATE CHANGE REVENUE IMPACT DECEMBER 1, 2014 Annual Change Services Number of Customers Current Rates Proposed Rates In Revenue Local Exchange Tariff Residence Monthly Local Exchange cess Line Rates Residential subscriber Section 1 Unes S ngle- ne Residence Alexander, Carlton, Knippa, Maryneal, McCaulley, Sylvester Exchanges * 695 $10.50 ores, ana, $12. and West 50 Marietta Exchanges- 151 $16. $ me Exchange $16.00 $2, $14.00 $16.00 $, Key System - Residence Donie Exchange - Key System 3 $14.19 $ $ Maryneal, McCaulley, and Sylvester Exchanges Key System 4 $12.05 $12.75 $33.60 us ness Monthly Loca l ange Access Una Rates e on us ness Subscriber i Llnes Single-Une Business Alexander and Canton Exchanges* * 22 $14.20 $ $ Dolores, Modeana, and West Marietta Exchanges 463 $24.25 $ $10, Donie Exchange 51 $21.20 $ $1, Knippa Exchange** 58 $13.25 $16.25 $ Maryneal, McCauiley, and Sylvester Exchanges** 60 $19.10 $19.25 $ Rotary Hunting - Business Alexander,Cariton, Maryneal, McCaulley, and Sylvester Exchanges *+ 23 $20.92 $21.25 $91.08 Dolores. Modeana, and West Marietta Exchanges 59 $23.25 $25.25 $1, Oonie Exchange Knippa Exchange** PBX/Key System Trunk - Business 8 $20.92 $25.00 $ $14.50 $17.50 $ Alexander and Carlton Exchanges PBX/Key System** 0 $ $23. ores, 15 eana, and $0.00 Marietta - PBX/Key System 0 $23.25 $30.15 $0600 Dome nge - ey System 0 $22.75 $30.15 $0.00 Knippa Exchange - PBX/Key Systems** 0 $11.75 $17.50 $0.00 Maryneal, McCaulley, and Sylvester Exchanges -Key System** 0 $ $ $0.00 Approved Rate-Affecting Tariff Changes, Preceding 12 months Total: Total Projected Revenue: $41,754 $0.00 $41,754 Intrastate Operating Regulated Revenues as of December 31, 2013 $ (Source: 2014 Earnings Monitoring Report) % Estimated Revenue Increase 1.48% Nt8R PM 13

15 ATTACHMENT D ALENCO COMMUNICATIONS, INC. D/B/A ACI Proposed/Revised Tariff Pages & Current Tariff Pages 14

16 Exhibit D Part I ALENCO COMMUNICATIONS INC.D/B/A ACI Proposed/Revised Tariff Pages Section Page 1 8th Revised Page 8 1 9th Revised Page 9 ;15

17 ALENCO COMMUNICATIONS, INC. SECTION 1 Local Exchange Tariff 8th Revised Page 8 Replacing 7th Revised Page 8 LOCAL EXCHANGE SERVICE III. LOCAL EXCHANGE SERVICE RATES AND CHARGES A. Residence Monthly Local Exchange Access Line Rates (1) Key Exchange 1-Party System (2) Alexander $12.50 Carlton $12.50 Dolores $16.00 Donie $16.00 $16.25 Knippa $12.50 Maryneal $12.50 $12.75 McCaulley $12.50 $12.75 Modeana $16.00 Sylvester $12.50 $12.75 West Marietta $16.00 (1) Rates for Access Line Service do not include a charge for an instrument or other customer premises equipment. (2) These rates apply to Donie, Maryneal, McCaulley, and Sylvester exchanges only. By: Title: Richard L. Allen President ^16

18 ALENCO COMMUNICATIONS, INC. SECTION 1 Local Exchange Tariff 9th Revised Page 9 Replacing 8th Revised Page 9 LOCAL EXCHANGE SERVICE III. LOCAL EXCHANGE SERVICE RATES AND CHARGES B. Business Monthly Local Exchange Acces s Line Rates Rotary Key PBX/Key Hunting System Exchange 1-Party System Service Trunk PBX (1) (2) (1) (3) (3) Alexander $17.20 $23.15 $21.25 Carlton $17.20 $23.15 $21.25 Dolores $26.10 $30.15 $25.25 Donie $24.20 $25.00 $30.15 $30.15 Knippa $16.25 $17.50 $17.50 Maryneal $19.25 $21.25 $23.15 $30.15 McCaulley $19.25 $21.25 $23.15 $30.15 Modeana $26.10 $30.15 $25.25 Sylvester $19.25 $21.25 $23.15 $30.15 West Marietta $26.10 $30.15 $ (1) Rates for Access Line Service do not include a charge for an instrument or other customer premises equipment. (2) These rates apply to all exchanges except the Donie, Maryneal, McCaulley, and Sylvester exchanges. (3) These rates apply to Donie, Maryneal, McCaulley, and Sylvester exchanges only. By: Title: Richard L. Allen President 17

19 Exhibit D Part It ALENCO COMMUNICATIONS INC.D/B/A ACI Current Tariff Pages LOCAL EXCHANGE TARIFF Section Page 1 7th Revised Page 8 1 8th Revised Page 9 18

20 ALENCO COWTNICATIONS, INC. Local Exchange Tariff SECTION 1 7th Revised Page 8 Replacing 6th Revised Page 8 LOCAL EXCHANGE SERVICE III. LOCAL EXCHANGE SERVICE RATES AND CHARGES A. Residence Monthly Local Exchange Access Line Rates (1) Exchange Key ---^ 1-Party System (2) Alexander Carlton Dolores Donie Knippa Maryneal McCaulley Modeana Sylvester West Marietta $10.50 $10.50 $14.75 $14.00 $14.19 $10.50 $10.50 $12.05 $10.50 $12.05 $14.75 $10.50 $12.05 $14.75 I (1) Rates for Access Line Service do not include a charge for an instrument or other customer premises equipment. (2) These rates apply to Donie, Maryneal, McCaulley, and Sylvester exchanges only. By: Title: Richard L. Allen President PUSUC UT1lIly COMMISSIOH pp APPROVED ^s D Jl ^i ^'1 ^ K E CONTROL # T -^... 19

21 ALENCO COMMUNICATIONS, INC. SECTION 1 Local Exchange Tariff 8th Revised Page 9 Replacing 7th Revised Page 9 LOCAL EXCHANGE SERVICE III. LOCAL EXCHANGE SERVICE RATES AND CHARGES B. Business Monthly Local Exchange Acces s Line Rate s Rotary Key PBX/Key Hunting System 1-Party System Service Trunk PBX Exchange (1) (2) (1) (3) (3) Alexander $14.20 $20.92 $20.92 I Carlton $14.20 $20.92 $20.92 Dolores $24.25 $23.25 $23.25 Donie $21.20 $20.92 $22.75 $30.15 Knippa $13.25 $11.75 $14.50 Maryneal $19.10 $20.92 $22.75 $30.15 McCaulley $19.10 $20.92 $22.75 $30.15 Modeana $24.25 $23.25 $23.25 Sylvester $19.10 $20.92 $22.75 $30.15 West Marietta $24.25 $23.25 $23.25 (1) Rates for Access Line Service do not include a charge for an instrument or other customer premises equipment. (2) These rates apply to all exchanges except the Donie, Maryneal, McCaulley, and Sylvester exchanges. (3) These rates apply to Donie, Maryneal, McCaulley, and Sylvester exchanges only. By: Title: Richard L. Allen President PUBLIC Mirf COMMISSION OF 7M APPROVED D '11 34 ^ r!: r CONSROL # 20

22 ATTACHMENT E ALENCO COMMUNICATIONS, INC. D/B/A ACI Revenue Impact 21

23 ALENCO COMMUNICATIONS, INC. MINOR RATE CHANGE REVENUE IMPACT DECEMBER 1, 2014 Annual Change Services Number of Customers Current Rates Proposed Rates in Revenue Loca l Exchange Tariff Residence Monthly Local c ange cess ine Rates - Residential u n r Section i Lines Single-Line Residence Alexander, Carlton, Knippa, Maryneal, McCaulley, Sylvester Exchanges * 695 $10.50 $12.50 $16, Dolores, Modeana, and West Marietta c anges 151 $14.75 $16.00 $2, onie Exchange 227 $14.00 $16.00 $5, Key System - Residence Dome Exchange - Key System Maryneal, McCaulley, and Sylvester Exchanges - Key System 3 $14.19 $16.25 $ $12.05 $12.75 $33.60 usmess Monthly Local Exchange ccess Line Rates - section Business subscri ber 1 Lines Single-Line Business Alexander and Carlton Exchanges** 22 $14.20 $17.20 $ Dolores, Modeana, and West Marietta Exchanges 463 $24.25 $26.10 $10, Donie Exchange 51 $21.20 $ $1, Knippa Exchange** 58 $13.25 $16.25 $2, Maryneal, McCaulley, and Sylvester Exchanges** 60 Rotary Hunting - Business $ $19.25 $ Alexander, Carlton, Maryneal, McCaulley, and Sylvester Exchanges ** Dolores, Modeana, and West Marietta Exchanges Donie Exchange Knippa Exchange** PBX/Key System Trunk - Business 23 $20.92 $21.25 $ $23.25 $ $20.92 $ $ $ $1, $ Alexander and Carlton Exchanges - PBX/Key System** 0 $20.92 $23.15 $0.00 Dolores, o eana, and West Marietta - ey ystem 0 $23.25 $30.15 $0.00 onie Exchange - Key System Kmppa Exchange - PBX/Key Systems** $ $22.75 $30.15 $ $11.75 $17.50 $0.00 Maryneal, McCaulley, and Sylvester Exchanges - Key System** 0 $ $23.15 $0.00 Approved Rate-Affecting Tariff Changes, Preceding 12 months Total: $0.00 $41,754 Total Projected Revenue: Intrastate Operating Regulated Revenues as of December 31, 2013 (Source: 2014 Earnings Monitoring Report) $41,754 $2,818,777 % Estimated Revenue Increase 1.48% 9/30/2014 5'40 PM 22

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