20051017Decision memo begins case.pdf

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DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
c t-C - '-05 ,,0
FROM:WAYNE HART
DATE:SEPTEMBER 29, 2005
RE:CITIZENS TARIFF ADVICE INTRODUCING ELECTRONIC BILL
PRESENTMENT AND PAYMENT; ADVICE NO. 05-
On August 29 2005, Citizens Telecommunications Company of Idaho d/b/a Frontier
Communications of Idaho submitted a tariff advice introducing a new service, Electronic Bill
Presentment and Payment. This product provides customers with the option to receive and pay
their Frontier bills online. Customers would receive an e-mail notifying them when the bill is
available to be viewed on Frontier s website. The electronic bills would include the same
information as paper bills, including inserts and bill messages. Customers would be able to
make payments via credit card or electronic withdrawals from checking accounts. Customers
would receive both paper and electronic bills for two billing cycles after registering for the
service. After two billing cycles, customers who replace their mailed paper bills with online
statements will not be charged for the service. Customers that elect to continue to receive both
electronic and paper bills would incur a charge of $2.00 per month.
The Company provided cost studies to demonstrate that the service is expected to
ultimately increase revenues and would not involve a subsidy from other services.
STAFF RECOMMENDATION
Staff supports providing customers the option of viewing and paying for services online.
Not only is this option an added convenience and service for the customer, it should provide
long-term savings for the Company by reducing the costs of preparing and mailing bills. While
Staff questions the amount of the charge for receiving both written and electronic bills, the
DECISION MEMORANDUM - 1 -SEPTEMBER 29, 2005
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service is optional, and the charge will encourage customers to reduce the printing and mailing of
bills. Staff recommends that the Commission approve this Advice.
COMMISSION DECISION
Does the Commission wish to approve Citizens Tariff Advice No. 05-
udmemoslCitizens Advice No. 05-
DECISION MEMORANDUM - 2-SEPTEMBER 29 , 2005