28067.pdf

Office ofthe Secretary
Service Date
June 8, 1999
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF)
CENTURYTEL OF THE GEM STATE, INC. FOR)
APPROVAL OF ITS PLAN TO IMPLEMENT)
INTRASTATE, INTRALATA DIALING PARITY.
CASE NO. CGS-99-
ORDER NO. 28067
On April 22, 1999, CenturyTel of the Gem State, Inc. filed an Application with the
Commission for an Order approving its intrastate, intraLA T A toll dialing parity implementation
plan. Because the Commission is required to review toll dialing parity implementation plans on a
very concise schedule, the Commission determined that the public interest may not require a formal
hearing and proceeded under Modified Procedure pursuant to Rules 201 through 204 ofthe Idaho
Public Utilities Commission s Rules of Procedure, IDAPA 31.01.01.201 through -.204. Order No.
28028. In that order, the Commission scheduled a settlement conference. Id. An amended Notice
of Settlement Conference was issued on May 6, 1999, setting the settlement conference for May 26
1999.
On April 22 1999, Gem State also filed a Petition requesting the Commission suspend certain
dialing parity obligations imposed by 47 U.C. ~ 25 1 (b)(3) and by FCC Order 99-54 for eighty-
eight (88) of its access lines. See CGS- T -99-2. The Commission granted the Petition on June 2
1999. Order No. 28056.
Pursuant to Order No. 28028, Staff and AT&T Communications of the Mountain States, Inc.
filed comments on May 18, 1999. Settlement conference was held May 26, 1999. At the settlement
conference, settlement was reached among the parties, placed on the record and approved by the
Commission pursuant to Commission Rule 274 (IDAP A 31.01.01.274). Tr. pp. 27-30. The parties
filed a stipulation with the Commission on June 2, 1999. That stipulation addressed the default
carrier for existing customers who did not choose an intraLATA carrier.
Based on the comments filed by AT&T and the Staff, the settlement placed on the record
the parties' stipulation , the law and the Application and implementation plan, the Commission
approves the Application and the dialing parity plan as modified below.
ORDER NO. 28067
BACKGROUND
Following the implementation of the Telecommunications Act of 1996, many states
challenged the jurisdictional authority of the Federal Communications Commission ("FCC") to to
take certain actions. In 1997 , the Eighth Circuit Court of Appeals held that the FCC had exceeded
its authority when it promulgated rules to implement various sections of the Act. Among other
things, the Eighth Circuit held that the FCC lacked jurisdiction to promulgate its dialing parity rules
47 CFR ~51.205-51.217. The FCC appealed to the United States Supreme Court. On January 25
1999, the United States Supreme Court reversed, in part, the Eighth Circuit and held inter alia that
the FCC has jurisdiction to implement the Act's local competition provisions , including those rules
addressing dialing parity. AT&Tv. Iowa Utilities Board 119 S.Ct. 721 (1999).
In response, the FCC issued FCC Order 99-54 revising the schedule for implementation of
dialing parity. Order 99-54 established new deadlines for all local exchange carriers ("LECs ) to
implement intraLA T A dialing parity. Specifically, all local exchange carriers are required to submit
dialing parity plans to the respective state commissions by April 22, 1999. State commissions were
given until June 22, 1999, to review and approve those plans. Approved intraLATA toll dialing
parity plans were directed to be implemented within thirty (30) days of approval.
Toll dialing parity, also referred to as "1 plus equal access" or carrier presubscription, allows
a customer to pre-select a carrier for intrastate, intraLA T A toll calls and then access his chosen
carrier simply by dialing 1 plus the telephone number. Without dialing parity, a customer wishing
to use a specific toll carrier may be required to dial a series of numbers before dialing the telephone
number. Upon implementation of toll dialing parity, customers will be able to presubscribe to a
carrier for both their interLA T A and intraLA T A 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 "). This is often referred to as "fu1l2-PIC" capability. 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.
GEM STATE'S DIALING PARITY PLAN
Gem State s exchanges are Grand View, Bruneau and Grasmere located in the southern
Idaho LATA (see 47 CFR ~51.213). Pursuant to 47 U.C. ~ 251(b)(3), Gem State submitted an
ORDER NO. 28067
intraLA T A toll dialing parity plan for Commission approval. Gem State proposed the following
implementation schedule:
Notification to IXCs
Paperwork due from IXCs
Informational letter sent to customers
Second letter sent by separate mailer
IntraLA T A Conversion date
Free PIC change grace period ends
A. Customer Notification
April 16, 1999
May 5 , 1999
June 1 , 1999
June 10, 1999
July 13, 1999
November 13, 1999
In its plan, Gem State proposes to contact all carriers currently offering interLATA toll
service to customers in Gem State s exchanges and request the carriers indicate whether they intend
to offer intraLA T A service. The request was mailed out April 16, 1999, and responses are due by
May 5, 1999. Any other carrier that requests to offer intraLATA service by June 1, 1999 will be
added to the list of available intraLA T A carriers.
Gem State proposes that on June 1 , 1999, a notice will be sent to customers in a bill insert
to inform them of the coming opportunity they will have to choose an intraLATA carrier. A
proposed customer notice was included with the Application. The notice will list the available
carrier choices and address what will happen for those customers who do not respond by making a
carrier selection. A second separate mailer will be sent out during the second week of June.
Those customers, who respond to the customer notifications before July 13 , 1999, will have
their intraLATA presubscription choice programmed into the switch on that cut-over date.
Gem State s implementation plan also proposes a 120-day "grace period" after the cut-over
date wherein customers may change their intraLA T A carrier choice two additional times free of
charge. The grace period would end November 13, 1999. Thereafter, each intraLATA PIC change
will result in a five dollar ($5.00) PIC change fee.
B. Customers Who Do Not Actively Choose An IntraLATA Toll Carrier
In Gem State s original plan, current customers who do not affirmatively choose an
intraLATA carrier would have defaulted to their existing carrier -- US WEST. However, Gem State
was recently notified by U S WEST that it does not wish to be the default company or to carry Gem
State toll. In light of this, Gem State, Staff and AT&T entered into a stipulation on June 1 , 1999
agreeing that all existing Gem State local exchange customers, other than multi-party line customers
ORDER NO. 28067
who do not choose an intraLATA carrier will default to CenturyTel Long Distance, Inc. Multi-party
line customers will default to U S WEST.
Gem State proposes that new customers who do not designate an intraLA T A toll carrier will
have to "dial around" using 10l-XXXX carrier access codes until they choose their presubscribed
carrieres).
C. Cost Recovery
Gem State proposes that incremental expenses relating to intraLA T toll dialing
implementation (Equal Access Recovery Charges) be recovered through a surcharge imposed on the
participating intraLA T A IXC companies over a 48-month period.
Gem State also proposed to include an Unauthorized IPIC (intraLATA PIC) Change Charge
in its tariffto be applied in the event that a disputed change is made in a customer s intraLATA PIC
assignment - slamming.
AT&T COMMENTS
AT&T generally agreed with Gem State s implementation schedule and l20-day "grace
period" after the cut-over date wherein customers may change their intraLATA carrier choice two
additional times free of charge. AT&T urged the Commission to order Gem State to send customers
notice in a separate mailing, written on neutral letterhead and sent first-class mail. AT&T also
requested that where a customer chooses to simultaneously change or select both an intraLA T A and
interLATA carrier, only one PIC charge should apply.
Finally, AT&T requested the Commission rule that Gem State s Unauthorized IPIC
(intraLATA PIC) Change Charge should not be included in Gem State s intraLATA dialing parity
plan.
STAFF RECOMMENDATION
Staff recommended the final Order be made effective June 22, 1999. Staff reviewed Gem
State s proposed implementation schedule, interexchange carrier notification, and customer
notification process and found that all were adequate and should be approved. In addition, Staff
recommended the customer notice and the proposed July 13, 1999 cut-over date, be approved.
Although Gem State s proposal did not address it, Staff recommends that existing interLATA PIC
freezes" do not automatically transfer to the intraLATA PICs and are only extended to the
intraLATA selection upon affirmative request from the customer.Staff recommended the
ORDER NO. 28067
Commission approve Gem State s proposal for new customers who do not designate an intraLATA
toll carrier.
Finally, Staff recommended the Commission generally approve Gem State s proposed
method of recovery for dialing parity costs. Staff stated it cannot ascertain what the amounts will
be until those costs are incurred and submitted by Gem State in a separate tariff filing. Staff also
recommended that Gem State include any waived PIC change charges in its cost recovery.
SETTLEMENT AGREEMENT
At the settlement conference, AT&T, Staff and Gem State agreed to settle their differences.
After negotiations, each party made certain concessions and agreed that Gem State s dialing parity
plan, including the implementation schedule, should be approved as filed with the following specific
changes to the proposed plan:
1. Gem State s tariff will not include an Unauthorized IPIC Change Charge.
2. Gem State will charge one five dollar ($5.00) PIC change fee if a customer selects both
an intraLA T A and interLA T A toll carrier at the same time.
3. Gem State will process all PIC change requests within five (5) business days.
4. Waived PIC charges will be billed to the participating carrier as a one time bulk bill and
not recovered from the end user.
5. Gem State s customer notice will be written on neutral letterhead with Gem State s logo
on the envelope.
Tr. pp. 23-27.
In addition, the parties agreed to enter into a stipulation concerning how existing customers
who did not choose an intraLATA carrier would be treated. Tr. pp. 26-27. A stipulation was entered
into the record on June 2, 1999. In that stipulation, Gem State, Staff and AT&T agreed that all
existing Gem State local exchange customers, other than multi-party line customers, who do not
choose an intraLA T A carrier will default to CenturyTel Long Distance, Inc. Because of technical
problems, multi-party line customers will default to U S WEST Communications, Inc.
ORDER NO. 28067
COMMISSION FINDINGS
The Commission finds that it has authority to approve and order modifications to Gem
State s dialing parity plan pursuant to Idaho Code ~ 62-615(1),1 47 U.C. ~~ 251(b)(3) and
251(f)(2) and 47 CFR ~~ 51.205-51.217.The Commission finds that it approved those
modifications offered by the parties at the settlement conference as described above. Tr. pp. 27-30.
The Commission further finds that the stipulation filed by the parties, Gem State, Staff and AT&T
on June 2, 1999, is in the public interest and hereby approves the stipulation.
The Commission further finds that the dialing parity plan, as modified by settlement and
described above, is in the public interest, competitively neutral, and consistent with the
Telecommunications Act of 1996.
ORDER
IT IS HEREBY ORDERED that Gem State s dialing parity plan is approved as modified by
settlement of the parties and as more fully described above.
THIS IS A FINAL ORDER effective June 22, 1999. Any person interested in this Order (or
in issues fmally decided by this Order) or in interlocutory Orders previously issued in this Case No.
CGS-99-1 may petition for reconsideration within twenty-one (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. CGS- T -99-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration in response to issues raised
in the petition for reconsideration. See section 61-626, Idaho Code.
Idaho Code 9 62-615 Authority to implement the telecommunications act -- Suspension of obligations of rural
carriers -- Promulgation of rules or procedures.
(1) The commission shall have full power and authority to implement the federal telecommunications act of 1996
including, but not limited to, the power to establish unbundled network element charges in accordance with the act.
ORDER NO. 28067
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this .?adayof
June 1999.
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MARSHA H. SMITH, COMMISSIONER
JJd4u~
PAUL KJELLAND ,, COMMISSIONER
ATTEST:
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Myrna J. Walters
Commission Secretary
O:cgst991 cc2.doc
ORDER NO. 28067