20120120Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: WELDON STUTZMAN
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 20, 2012

SUBJECT: CASE NOS. QWE-T-12-01, CEN-T-12-01, AND CGS-T-12-01;
CENTURYLINK COMPANIES’ PETITION FOR AN EXEMPTION OF
COMMISSION RULE 31.41.01.502

On December 22, 2011, a Petition was filed by Qwest Corporation dba CenturyLink
QC, CenturyTel of Idaho, Inc. dba CenturyLink, and CenturyTel of the Gem State, Inc. dba
CenturyLink (the CenturyLink Companies or CenturyLink) requesting an exemption from the
Commission’s Telephone Customer Relations Rule 502 (IDAPA 31.41.01.502). Rule 502
establishes standards for a telephone company to restore basic local service after an outage, and
requires payment of customer credits when standards are not met. The rule was initially adopted
in 1993, and CenturyLink asserts in its Petition that profound changes in the telecommunications
industry in Idaho since the rule was adopted make the rule obsolete. Petition, p. 2. CenturyLink
contends the rule now creates unusual and unreasonable hardships in a competitive marketplace
that did not exist when the rule was adopted. Customer Relations Rule 3 states the Commission
may grant exemptions to a rule if “unusual or unreasonable hardship results from the
application” of the rule. IDAPA 31.41.01.003.
CenturyLink asserts that when Rule 502 was adopted, incumbent local telephone
providers were the predominant providers of local telecommunications service. Very few
customers used wireless service and most had no alternative resource for voice communication
in the event of an outage. Petition, p. 3. The development of alternative telecommunications
technology, and changes in laws to encourage competition in telecommunications markets, has
DECISION MEMORANDUM 2
significantly altered the local telecommunications business. Petition, pp. 3-4. CenturyLink notes
that its total line count in Idaho declined from 544,640 in 2001 to 310,870 in 2010. CenturyLink
points out that the competitors in the marketplace, including wireless, cable and VoIP providers,
are not subject to the Commission’s service performance rules. CenturyLink contends this
disparity in treatment between its companies and the competitors creates for CenturyLink an
“unusual or unreasonable hardship that justifies an exemption to the rule.” Petition, pp. 6-7.
CenturyLink in its Petition recognizes “that an exemption of this scope for the largest
ILEC in Idaho as well as the two other CenturyLink companies may itself constitute a significant
change in the regulatory landscape in Idaho.” Petition, p. 7. With this acknowledgement,
CenturyLink stated its willingness to participate in a rulemaking to address Rule 502 in a more
comprehensive context should the Commission deem such an effort to be appropriate.
CenturyLink requested the Commission process the Petition by Modified Procedure.
Staff recommends the Commission issue a Notice of Petition and Notice of Modified Procedure
inviting written comments on CenturyLink’s Petition. In written comments, interested parties
may indicate whether a broader rulemaking procedure is appropriate, and whether an exemption
to Rule 502 should be granted to CenturyLink in the meantime.
COMMISSION DECISION
Should the Commission issue a Notice of Petition and Notice of Modified Procedure
with a 28-day comment period, and a 14-day reply comment period, to process CenturyLink’s
Petition?

Weldon B. Stutzman
Deputy Attorney General

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