20130724Comments.pdf

WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3283
Street Address for Express Mail:
472W WASHINGTON
BOrSE rD 83702-5918
Attorney for the Commission Staff
IN THE MATTER OF THE JOINT )
PETrrroN or QWEST CORPORATTON DBA )
CENTURYLINK QC, CENTURYTEL OF )
IDAHO,INC. DBA CENTURYLINK AND )
CENTURYTEL OF THE GEM STATE, INC. DBA)
CENTURYLINK FOR PARTIAL WAIVER OF )
THE REQUIREMENTS OF IPUC ORDER NO. )20841. \
0l
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NOS. QWE-T-13-03
cEN-T-13-03
cGS-T-13-03
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through
its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, and in response to the
Notice of Application and Notice of Modified Procedure issued in Order No. 32844 on July 3,
2013, submits the following comments.
BACKGROUND
On June 7,2013, the Commission received a Joint Petition from Qwest Corporation dba
CenturyLink QC; CenturyTel of Idaho, Inc. dba Centurylink; and CenturyTel of the Gem State,
Inc. dba Centurylink (collectively "Centurylink") for Partial Waiver of the requirements of
Commission Order No. 29841. Specifically, CenturyLink requests a waiver of the requirement
that it file a two-year network improvement plan in connection with the annual eligible
telecommunications carrier ("ETC") recertification report due to the Commission on September
STAFF COMMENTS JULY 24,2013
1,2013 . CenturyLink asserts it makes this request as a result of recent actions by the Federal
Communications Commission (FCC).
CenturyLink explains that in 2005, the FCC adopted new ETC designation and reporting
requirements as did the Idaho Public Utilities Commission ("Commission"). The FCC is again
addressing ETC reporting requirements in light of revisionsto 47 C.F.R. $ 54.313. These
revisions include new broadband service obligations that will be imposed on carriers. Petition at
3. One of the FCC's requirements is a report on the carrier's five-year quality improvement plan
for those companies receiving funding for broadband services. Id. The FCC's new reporting
requirements will require maps detailing progress toward plan targets, an explanation of the
amount of universal support received, how it was used, and an explanation of any network
improvement targets that have not been met during the year. These reports will require detailed
information to be provided at the wire center or census block level. Id. The FCC, however, has
not completed all the steps necessary to provide a final form for use by ETCs in formulating the
new plans. Because the new federal high cost funding aimed specif,rcally at broadband has not
been distributed or accepted by the ETCs, Centurylink contends companies are not in a position
to develop specific plans for its use. .l'd Consequently, the FCC issued an order waiving the
five-year plan requirement for 2013. Id.
CenturyLink believes the increasingly complex reporting requirements being adopted by
the FCC may mean that state-specific reports with separate standards for documenting use of the
federal funds no longer fulfill a useful purpose. Id. at3-4. Centurylink therefore seeks a waiver
of the two-year plan requirement contained in Order No. 29841 to make the Idaho ETC
recertification reports for 2013 conform to FCC requirements.
With Order No. 32844,the Commission determined that it was appropriate to consider
whether the waiver requested by Centurylink, if approved by the Commission, should apply to
all ETCs and thus issued a Notice of Application and Notice of Modified Procedure seeking
comments from interested parties.
STAFF REVIEW
Staff reviewed Centurylinks' Applications as well as related FCC documents, including
the recent DA l3-1348 In the Matter of Connect America Fund (released on June 10, 2013) that
addresses the 2013 reporting requirements under sections 5a.202(a)(1)(ii) requiring state ETCs to
submit a five-year plan that describes with specificity proposed network improvements or
STAFF COMMENTS JULY 24,2013
upgrades throughout their proposed service areas. Each applicant must estimate the area and
population that will be served as a result of the improvements. Section 54.314 requires that high-
cost ETC Certifications be filed on or before October 1 to receive support in the following year.
The rules adopted by the FCC in 2005 applied only to those ETC proceedings before the
FCC pursuant to 47 USC $ 21a(e)(6), but the FCC encouraged state commissions to adopt
similar requirements when designating ETCs pursuant to 47 USC $ 2la(eX2). In response, the
Commission adopted the FCC's new requirements for ETC designation, including ETC annual
reports, except the Commission required a two-year plan rather than a five-year plan. See Case
No. WST-T-05-1, Order No. 29841.
The FCC's rules for ETC annual reporting requirements were modified most recently in
the FCC's Report and Order and Further Notice of Proposed Rulemaking inFCC 1l-161;26
FCC rcd 17663;2011 WL 5844975 (released on November 18, 2011) (USF/ICC
Transformation Order") and in the Lifeline and Link Up Reform and Modernization,2012WL
387742 (released on November 6,2012) ("Lifeline/Link Up Reform Order"), as clarified and
modified in subsequent FCC orders. In the USF/ICC Transformation Order, the FCC adopted
several reforms updating annual reporting requirements for ETCs. Specifically, the FCC
extended reporting requirements for voice service to all ETCs and adopted new reporting
requirements to reflect new broadband obligations. USF/ICC Transformation Order, FCC 11-
161 atpara. 579. In addition to the carriers' ETC reporting requirements, ETCs or the state
Commissions must file Certifications on or before October I of each year with the FCC and
Universal Service Administrative Company ("USAC") for high-cost ETCs to receive USF
funding in the following year pursuant to $ 54.314(dX1).
When the FCC revised the ETC reporting requirements it also created Form 481(Carrier
Annual Reporting Data Collection Form). Before this form can be used, however, it must
receive approval from the Office of Management and Budget and the FCC is still awaiting OMB
approval. Upon OMB approval, the FCC will release a Public Notice announcing the new
deadlines for ETCs to submit their annual reports, as well as the deadline for states or ETCs to
file their section 54.313 certifications. See DA 13-1348 at para.4. ETCs that receive both high-
cost and Lifeline support may satisfy both the high-cost reporting obligations under section
54.313 and the Lifeline reporting requirements under section 54.422(a) of the FCC rules in the
same filing. 1d.
STAFF COMMENTS JULY 24,2013
The FCC, on its own motion, granted a limited waiver of the October 1 deadline set out
in section 54.314(dX1). The FCC granted an extension of 60 days from the revised annual report
deadline to file the certification pursuant to section 54.314, to give states sufficient time to
review those ETCs'reports before submitting their required certifications. Id. atpara.6.
STAFF RECOMMENDATION
Given the new, specific FCC reporting requirements for ETCs, Staff believes the
Commission's requirement that ETCs file a two-year network improvement plan is redundant
and is no longer useful. Staff recommends the Commission approve CenturyLink's Petition to
waive the requirement for the two-year network improvement plan set forth in Order No. 29841
for 2013, and extend the waiver to all ETCs. Beginningin2}l4, Staff recommends the
Commission modiff its reporting requirement in Order No. 29841 from a two- to the five-year
plan to conform to the FCC's revised reporting requirements.
Respectfully submitted this Zlkaay of July 2013.
Technical Staff: Grace Seaman
i:umisc:comments/qwetl 3.3_centl 3.3_cgst13.3wsgs comments
M I
Weldon B. Stut2man
Deputy Attorney General
4STAFF COMMENTS JULY 24,2013
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 24TH DAY OF JULY 2013,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NOS. QWE-T-13-03/CEN-T-13-03|CGS-T-13-03, BY MAILING A COPY
THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
LISA A ANDERL
QWEST CORP
DBA CENTURYLINK QC
1600 7rH AVE ROOM 1506
SEATTLE WA 98191
MARY S HOBSON
QWEST CORP
DBA CENTURYLINK QC
999 MAIN ST STE 1IO3
BOISE ID 83702
CERTIFICATE OF SERVICE