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HomeMy WebLinkAbout19970505Order No 26913 - Notice of Status.docBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF CITIZENS TELECOMMUNICATIONS COMPANY OF IDAHO FOR APPROVAL OF AN INTRALATA TOLL DIALING PARITY IMPLEMENTATION PLAN. ) ) ) ) ) ) CASE NO. CTCT972 NOTICE OF APPLICATION NOTICE OF STATUS CONFERENCE DEADLINE FOR INTERVENTION ORDER NO. 26913 On March 24, 1997, Citizens Telecommunications Company of Idaho (CTC-Idaho; Company) filed an Application requesting that the Commission approve an intraLATA long-distance dialing parity plan. The Company requests permission to implement dialing parity no later than August 8, 1997. CTC-Idaho serves approximately 18,000 local access lines in 30 communities scattered throughout Idaho. CTC-Idaho is a sister company of Citizens Telecommunications which is a provider of intrastate long-distance services and is also authorized to resell local telephone service in areas of Idaho. In this Order, the Commission authorizes CTC-Idaho to begin implementation of its dialing parity plan but withholds final approval pending the submission of additional data and further proceedings. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that Section 251(b)(3) of the federal Telecommunications Act of 1996, requires that local exchange companies (LECs), such as CTC-Idaho, provide dialing parity to all long-distance carriers. Dialing parity means that a customer has access to a long-distance carrier of the customers choice on an equal dialing or 1+ basis. YOU ARE FURTHER NOTIFIED that CTC-Idaho asserts that the Federal Communications Commissions (FCC) rules implementing the dialing parity requirement of the Act compels the Company to provide equal access to all interLATA and intraLATA long-distance companies. Application at 3. The Company currently provides all of its customers with interLATA equal access capability, i.e., all CTC-Idaho customers have the ability to choose an interLATA 1+ toll carrier of their choice. Because CTC-Idahos sister company (Citizens Telecommunications) is authorized to provide interLATA toll services, the FCC requires that CTC-Idaho implement both intraLATA and interLATA dialing parity in all its exchanges. If Citizens Telecommunications begins providing interLATA toll services before August 8, 1997, then FCC Rule 51.213(b) requires that CTC-Idaho offer its customers intraLATA and interLATA dialing parity by that same date. See 47 C.F.R.  51.213(b) (1996). YOU ARE FURTHER NOTIFIED that the Company proposes to provide intraLATA equal access featuring two-PIC capability. Application at 6. This will allow each CTC-Idaho customer to presubscribe to one long-distance company for all interLATA toll calls and to presubscribe to the same or another long-distance company for all intraLATA toll calls. YOU ARE FURTHER NOTIFIED that to meet the August 8, 1997 deadline, CTC-Idaho proposes the following schedule for implementing intraLATA equal access dialing. Date Action May 12, 1997 Notify interexchange carriers of date of effectiveness of intraLATA equal access conversion in each end office May 12, 1997 Business offices commence procedures for training associated with intraLATA equal access conversions June 10, 1997 All intraLATA equal access circuits (trunks and translations) in place and testing to begin June 10, 1997 File equal access recovery charge tariff July 10, 1997 Deadline for receipt of Access Service Requests from interexchange carriers July 10, 1997 Preconversion notification (one time) to customers, by billing inserts, of intraLATA equal access conversions August 8, 1997 IntraLATA equal access conversion date YOU ARE FURTHER NOTIFIED the Company proposes to recover the incremental costs of its dialing parity plan from all providers of 1+ intraLATA toll services offering such services in CTC-Idaho exchanges. Application at 5. The Companys incremental costs include dialing parity-specific switch software, any necessary hardware and signaling system upgrades, and consumer education costs that are strictly necessary to implement dialing parity. Id. at n.6. CTC-Idahos Application did not include a cost estimate. The Company proposes to recover its cost of conversion over a two-year period. YOU ARE FURTHER NOTIFIED that the Company recommends that the costs be allocated among long-distance carriers, including CTC-Idaho, on the basis of each carriers share of total intrastate (both intraLATA and interLATA) long-distance minutes of use. Id. at 9. CTC-Idaho will first forecast the total intrastate minutes of use for the first year. The Company will then develop an equal access recovery charge by dividing one-half of the total implementation costs by the total forecast minutes of use over the two-year period. This surcharge will then be applied to all intrastate originated and terminating local switching minutes in CTC-Idaho exchanges for a twelve-month period. At the end of the first year, the surcharge will be adjusted to reflect any over- or under-recovery. The adjusted surcharge will then apply to the remaining twelve-month period. At the end of the recovery period, any deficiency or surplus will be charged or returned to the interexchange carriers in proportion to the implementation costs they have paid. Id. The Application did not contain the forecasted minutes of use. YOU ARE FURTHER NOTIFIED that the Company asserts that recovering its dialing parity costs from all intrastate minutes of use of the 1+ intraLATA toll service providers is appropriate. The Company asserts that this recovery mechanism will fairly distribute the costs to a participating LEC that presently has no interLATA minutes of use and to interexchange carriers that presently have no intraLATA minutes of use. Id. at 9-10. Citizens Telecommunications fits into this latter category. The Company believes that this cost recovery proposal is competitively neutral and fully consistent with the FCCs dialing parity rules. YOU ARE FURTHER NOTIFIED that CTC-Idaho proposes a one-time notification to its customers in July 1997. The Company proposes to notify its customers by use of a billing insert and the issuances of news releases to local news media outlets. The Company recommends that the issuance and return of a customer ballot not be used because it would be unduly disruptive and expensive for all participants in the equal access conversion process. Id. at 7. The Company maintains that customers who do not make an affirmative selection of an intraLATA carrier will remain with their existing 1+ intraLATA carrier. The Company insists that FCC rules prohibit it from automatically assigning to itself new customers who do not affirmatively choose a toll provider. The Company proposes that new customers who do not make an affirmative selection of an intraLATA carrier, will not be provided 1+ intraLATA dialing capability until an affirmative selection is made. Id. at 7-8. YOU ARE FURTHER NOTIFIED that CTC-Idahos presently tariffed PIC change charge is $5.00. The Company suggests that customers not be charged for PIC changes during the initial six-month implementation period. Following the implementation period, it proposes that each intraLATA toll carrier decide whether to collect or waive the PIC change charge. YOU ARE FURTHER NOTIFIED that CTC-Idahos Application is available for public inspection during regular business hours at the Commission offices. YOU ARE FURTHER NOTIFIED that the Company has asked the Commission to approve this plan in a timely manner so that the Company can comply with the FCC deadline. Id. at 10. DISCUSSION Having reviewed CTC-Idahos Application and the applicable federal regulations, we preliminarily find that it is reasonable to permit the Company to begin implementing its toll dialing parity plan. In particular, the first three steps (informing interexchange carriers, training and providing intraLATA equal access circuits) do not affect other interested persons. Although CTC-Idaho may begin its dialing parity plan, we have (and we anticipate other interested persons may have) questions and concerns regarding subsequent steps of the plan. Without addressing the merits of the plan, we note that CTC-Idahos Application does not contain information concerning the costs of implementing the plan nor an estimate of the total intrastate minutes of use. We anticipate that parties will raise additional concerns. Given the federal requirement that the dialing parity plan should be implemented no later than August 8, 1997, we find it is reasonable to allow CTC-Idaho to begin implementing the plan. We further find it is reasonable to schedule a status conference in this matter to allow CTC-Idaho to provide additional information, to allow timely intervention by other interested persons, and to provide an opportunity for the parties to discuss the merits of the plan. We encourage CTC-Idaho and the other parties to discuss and resolve their concerns prior to the status conference. NOTICE OF STATUS CONFERENCE YOU ARE FURTHER NOTIFIED that a status conference has been scheduled in this matter to commence at 2:30 P.M. ON TUESDAY, MAY 27, 1997, IN THE GOLD ROOM, 4TH FLOOR, STATEHOUSE, BOISE, IDAHO. The purpose of the status conference is for CTC-Idaho to provide data concerning the estimated cost for implementing the toll dialing parity plan; the manner in which it will forecast the total intrastate minutes of use (both intraLATA and interLATA); and copies of the actual notification to be provided to CTC-Idaho customers. In addition, interested parties will have an opportunity to further delineate the issues for the Commissions consideration. Finally, the parties are encouraged to discuss and resolve their concerns for implementing CTC-Idahos dialing parity plan. YOU ARE FURTHER NOTIFIED that all hearings will be conducted pursuant to the Rules of Procedure adopted by the Idaho Public Utilities Commission. IDAPA 31.01.01.000 et seq. YOU ARE FURTHER NOTIFIED that all hearings and status conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act. Persons needing the help of a sign language interpreter or other assistance of the kind that the Commission is obligated to provide under the Americans with Disabilities Act in order to participate in or to understand the testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing. The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at: IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0338 (TELEPHONE) (208) 334-3151 (TEXT TELEPHONE) (208) 334-3762 (FAX) YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 and Title 62 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Titles 61 and 62. YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. DEADLINE FOR INTERVENTION YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter for the purpose of participating in the status conference must file a Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073. Persons intending to participate at the status conference must file a Petition to Intervene on or before May 14, 1997. Persons desiring to present their views without parties' rights of participation and cross-examination are not required to intervene and may present their comments without prior notification to the Commission or the parties. O R D E R IT IS HEREBY ORDERED that CTC-Idaho may begin its schedule for the intraLATA dialing parity plan. This Order does not constitute final approval. IT IS FURTHER ORDERED that a status conference be convened as set out in the body of this Order. Persons desiring to participate at the status conference must file a Petition to Intervene pursuant to the Commissions Rules of Procedures, IDAPA 31.01.01.000 et seq. IT IS FURTHER ORDERED that CTC-Idaho be prepared to present additional information such as cost data and the forecasted minutes of use. Parties are encouraged to discuss among themselves areas of concern and to settle any disputes before the status conference. DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this day of May 1997. DENNIS S. HANSEN, PRESIDENT RALPH NELSON, COMMISSIONER MARSHA H. SMITH, COMMISSIONER ATTEST: Myrna J. Walters Commission Secretary Vld/O:CTC-T-97-2.dh In Order No. 26775 the Commission issued a certificate of public convenience and necessity to Citizens Telecommunications to provide local exchange service in U S WEST and GTE service areas. A LATA (local access and transport area) is a geographic area designated by the United States District Court in the Modification of Final Judgment in the divestiture of AT&T and the Bell Operating Companies (BOCs). LATAs were created to mark the boundaries within which the BOCs could transport long-distance or toll calls. All of the U S WEST Communications exchanges south of the Salmon River are included in the Idaho LATA. The eight exchanges served by U S WEST in northern Idaho are included in the Spokane LATA. The Coeur d'Alene market area (a LATA equivalent) is served by GTE Northwest and is not associated with either the Spokane or Idaho LATA. PIC means preferred interexchange carrier or the carrier to whom the customers toll call is automatically routed to by dialing 1+ the called telephone number. NOTICE OF APPLICATION NOTICE OF STATUS CONFERENCE DEADLINE FOR INTERVENTION ORDER NO. 26913 -1- Office of the Secretary Service Date May 5, 1997