28156.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF CENTURYTEL OF IDAHO, INC.’S REVISION TO IDAHO RURAL EXCHANGE CARRIERS TARIFF NO. 2 – EQUAL ACCESS RECOVERY CHARGE )
)
)
)
) CASE NO. CEN-T-99-2

ORDER NO.  28156

On July 13, 1999, CenturyTel of Idaho, Inc. filed a revision to its Idaho Rural Exchange Carriers Tariff No. 2 adding an equal access recovery charge (EARC). The EARC adds the terms, conditions and rates for providing intraLATA toll dialing parity in Idaho pursuant to the Commission’s Order No. 28066. On August 5, 1999, the Commission issued a Notice of Application and Notice of Modified Procedure. Order No. 28112.
On August 26, 1999, the Commission Staff filed comments recommending the Tariff Advice be approved. No other person filed comments.
Based on the comments, the record and the law, the Commission approves the Tariff Advice.
BACKGROUND
CenturyTel offers local telephone exchange service in the Idaho exchanges of Leadore and Salmon. On April 22, 1999, CenturyTel filed an Application with the Commission for an Order approving its intrastate, intraLATA toll dialing parity implementation plan. On June 8, 1999, in Case No. CEN-T-99-1, the Commission approved CenturyTel’s Application as modified. See Order 28066.
On July 13, 1999, CenturyTel of Idaho, Inc. filed a revision to its Idaho Rural Exchange Carriers Tariff No. 2 adding an equal access recovery charge (EARC). The EARC adds the terms, conditions, and rates for providing intraLATA toll dialing parity in Idaho pursuant to the Commission’s Order No. 28066. CenturyTel proposed that incremental expenses relating to intraLATA toll dialing implementation (EARC) be recovered through a surcharge of $0.006873 per originating intraLATA access minute imposed on the participating intraLATA interexchange (IXC) companies over a 24-month period beginning August 13, 1999. In response, the Commission suspended the Tariff Advice for a period of thirty (30) days, or until such time as the Commission may issue an Order accepting or rejecting or modifying the Tariff Advice. Order No. 28112.
Upon implementation of toll dialing parity, customers will be able to presubscribe to a carrier for both their interLATA and intraLATA toll calls. This means that originating customers will be able to dial toll calls without having to use any extra digits or access codes (other than the prefatory 1 or 0). In addition, originating customers will continue to be able to use dial-around 101-XXXX to route their specific calls to a carrier other than their presubscribed carrier if they so choose.
In conformance with its approved implementation plan, CenturyTel mailed separate customer notifications regarding intraLATA equal access and executed the intraLATA conversion on July 13, 1999.

STAFF COMMENTS
CenturyTel projects an annual demand of approximately 2.9 million intraLATA toll minutes; CenturyTel proposes to recover $20,071 annually for two years. Staff reviewed CenturyTel’s submitted incremental costs including the supporting workpapers and cost model. Staff contacted the Wyoming PUC where this cost model has been used before and believes the cost model is appropriate for this particular application in Idaho dialing parity.
Staff noted that Order No. 28066 requires CenturyTel to recover the waived PIC change charges during the free PIC period via the issuance of a one-time bulk bill to each participating carrier. This bill will assess the $5.00 PIC change charge for the total number of lines changed to those carriers’ PIC. Staff found that CenturyTel’s method for cost recovery from all intraLATA toll providers is competitively neutral and consistent with FCC 96-333 and DA 98-2534. The Staff further found that these incremental costs would not have been incurred “but for the implementation of dialing parity” and are, therefore, appropriately charged to the intraLATA toll providers. Because dialing parity creates equal access to intraLATA toll, Staff found that cost recovery based on intraLATA toll usage is reasonable. Staff also found that the 24-month recovery period is appropriate
The Staff also noted that the Commission approved the parties’ settlement agreement in Order No. 28067 which obligated CenturyTel to recover any waived PIC change charges during the free PIC period by issuing a one-time bulk bill to each participating carrier. This bill will assess the five dollar ($5.00) PIC change charge for the total number of lines changed to each respective carrier.
Staff supported CenturyTel’s proposed dialing parity costs and method for recovery. Staff believes that, in accordance with FCC 96-333 and DA 98-2534, CenturyTel’s method of recovery from all intraLATA toll providers is competitively neutral and that these incremental costs would not have been incurred “but for the implementation of dialing parity.” Because dialing parity creates equal access to intraLATA toll, Staff believes that cost recovery based on intraLATA toll usage is reasonable. Staff accepted the 24-month recovery period but recommended a review period at the end of the first year to determine the effectiveness and, if necessary, to adjust the recovery rate.
Therefore, Staff recommended approval of CenturyTel of Idaho, Inc.’s Application which modifies its local exchange tariff to include intraLATA equal access and the introduction of an equal access recovery charge (EARC). In addition, Staff recommended that CenturyTel’s cost recovery method include an adjustment period at or near the end of the first year of recovery.
FINDINGS
The Commission finds it has jurisdiction over CenturyTel of Idaho, Inc. and this matter by virtue of Title 61, Idaho Code and specifically Idaho Code  61-303, -503, -507, -622 and -623. The Commission further finds that CenturyTel’s method for cost recovery from all intraLATA toll providers is competitively neutral and consistent with FCC 96-333 and DA 98-2534. No intraLATA toll provider filed any comment opposing the Tariff Advice. The Commission further finds that these incremental costs would not have been incurred “but for the implementation of dialing parity” and are, therefore, appropriately charged to the intraLATA toll providers. Because dialing parity creates equal access to intraLATA toll, the Commission finds that cost recovery based on intraLATA toll usage is reasonable. The Commission also finds that the 24-month recovery period is appropriate

O R D E R
IT IS HEREBY ORDERED that CenturyTel’s Tariff Advice be approved.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. CEN-T-99-2 may petition for reconsideration within twentyone (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. CEN-T-99-2. Within seven (7) days after any person has petitioned for reconsideration, any other person may crosspetition for reconsideration in response to issues raised in the petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of September 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

O:cent992_cc2

Toll dialing parity, also referred to as “1 plus equal access” or carrier presubscription, allows a customer to pre-select a carrier for intrastate, intraLATA toll calls and then access his chosen carrier simply by dialing 1 plus the telephone number.

ORDER NO. 28156 4

Office of the Secretary
Service Date
September 20, 1999