19990630.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
TONYA CLARK
LYNN ANDERSON
DON HOWELL
STEPHANIE MILLER
JOE CUSICK
DOUG COOLEY
BEV BARKER
DAVID SCOTT
WORKING FILE

FROM: CHERI C. COPSEY

DATE: JUNE 30, 1999

RE: CENTURYTEL OF THE GEM STATE, INC. TARIFF ADVICE NO. 99-3 –intraLATA DIALING PARITY TARIFF.

On June 23, 1999, CenturyTel of the Gem State, Inc. filed Tariff Advice No. 99-3 adding the terms, conditions and rates for providing intraLATA toll dialing parity in Idaho pursuant to the Commission’s Order No. 28067. Gem State proposes that incremental expenses relating to intraLATA toll dialing implementation (Equal Access Recovery Charges) be recovered through a surcharge of $0.007485 per originating intraLATA access minute imposed on the participating intraLATA interexchange (IXC) companies over a 24-month period beginning July 13, 1999.
BACKGROUND
Section 251(b)(3) of the Telecommunications Act of 1996 requires all LECs to provide dialing parity. By order dated March 23, 1999, in FCC Docket No. 96-98, the FCC requires all LECs to file their dialing parity plans with state commissions by April 22, 1999. Toll dialing parity, also referred to as “1 plus equal access” or carrier presubscription, allows a customer to pre-select a carrier for intraLATA 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 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”). This is often referred to as “full 2-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. On April 22, 1999, CenturyTel filed an Application with the Commission for an Order approving its intraLATA toll dialing parity implementation plan and on June 8, 1999, the Commission approved CenturyTel’s plan. Order No. 28067.
There are costs associated with implementing dialing parity and local exchange carriers are allowed to recover those costs, called Equal Access Recovery Charges (EARC), from the participating interexchange carriers. The Commission did not address the amount of the EARC in Order No. 28067. Tariff Advice No. 99-3 sets forth the proposed EARC in conformance with Order No. 28067.
STAFF RECOMMENDATION:
Staff recommends the Commission open a case and process consideration of the Tariff Advice by Modified Procedure with a twenty-one (21) day comment period. Staff further recommends suspending the Tariff Advice pursuant to Idaho Code  61301, -307, -315, -222 and -623 to suspend this Tariff Advice for thirty (30) days pending approval by the Commission.
Commission Decision
Should this Tariff Advice be processed by Modified Procedure? Should the Commission suspend the Tariff Advice for thirty (30) days pending approval by the Commission?

Cheri C. Copsey

M:cgst993_cc.doc

DECISION MEMORANDUM 2