HomeMy WebLinkAbout19970606Decision Memo.doc DECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER NELSON
COMMISSIONER SMITH
MYRNA WALTERS
TONYA CLARK
STEPHANIE MILLER
DAVE SCHUNKE
JOE CUSICK
BILL EASTLAKE
DAVID SCOTT
WORKING FILE
FROM: DON HOWELL
DATE: JUNE 6, 1997
RE: CITIZENS COMMUNICATIONS COMPANY OF IDAHO REQUEST TO IMPLEMENT AN INTRALATA DIALING PARITY PLAN, CASE NO. CTC T 97 2
On March 24, 1997, Citizens Communications Company of Idaho (CTC-Idaho) filed an Application requesting that the Commission approve an intraLATA toll dialing parity plan. Section 251(b)(3) of the federal Telecommunications Act of 1996 requires that LECs provide 1+ dialing parity to long distance carriers. Because CTC-Idahos sister company (Citizens Communications) has been authorized by this Commission to provide interLATA toll services, the FCC requires that CTC-Idaho implement intraLATA and interLATA toll dialing parity no later than August 8, 1997. CTC-Idahos Application contains the methodology and proposed schedule to implement the toll dialing plan no later than August 8, 1997.
BACKGROUND
On May 5, 1997, the Commission issued Order No. 26913 establishing a deadline for intervention in this matter and scheduling a status conference for May 27, 1997. AT&T, U S WEST, and the Idaho Telephone Association (ITA) were granted intervention. The purpose of the status conference was for Citizens to provide data concerning the estimated costs of implementing the toll dialing parity plan and for the parties to apprise the Commission concerning the status of other unresolved issues. In its Order, the Commission encouraged Citizens and the other parties to discuss and resolve their concerns prior to the status conference.
Both before and after the status conference, the parties held a number of settlement negotiations. As a result of these settlement discussions, the parties entered into a Settlement Agreement on June 6, 1997. CTC-Idaho also filed a Motion to Approve Settlement Agreement urging the Commission to approve the Agreement because it meets the requirements of the FCC rules and adopts consensus positions advanced by the parties. Approval of the Settlement Agreement will allow the Company to implement its dialing parity plan by August 8, 1997. The Settlement Agreement and Motion are attached for your review.
THE SETTLEMENT AGREEMENT
Pursuant to the terms of the Settlement Agreement, CTC-Idaho shall implement 2-PIC intraLATA equal access thereby allowing its customers to presubscribe to one long-distance carrier for all interLATA calls and to the same or another carrier for all intraLATA toll calls. The Settlement Agreement at 2. The Company has agreed to provide individual notice to each of its customer by means of a one-time postcard mailing. The parties (as well as the Staff) have agreed to the language of the customer notice. Existing CTC-Idaho customers who do not select a new intraLATA carrier will remain with their current carrier. Id. at 4. New CTC-Idaho customers who do not select an intraLATA carrier will not be able to make 1+ intraLATA toll calls but will be able to reach intraLATA long-distance carriers by other means (10XXX, 800+, etc.). Id. at 6. Customers will be allowed one intraLATA PIC change free of charge during the first six months of the conversion (beginning August 8, 1997). Id. at 10.
Paragraph 11 of the Settlement Agreement sets out the various conversion costs that the Company will recover. The Company shall recover its equal access conversion costs over a two-year period. The surcharge shall be applied to Citizens originating intrastate (intraLATA and interLATA) switched toll and other carriers intrastate (intraLATA and interLATA) switched access minutes originating in CTC-Idahos local exchanges. Based upon a forecast number of originating minutes of use for the first year, the parties calculate that the surcharge will be $.00137 per minute which does not include the PIC change cost. Once calculated the PIC change cost will be included with the surcharge when CTC-Idaho files its surcharge tariff. Id. at 11.
Although U S WEST and AT&T were parties to the Settlement Agreement, they conditioned their approval in Footnote 1 on page 5. U S WEST suggested that the conversion surcharge should be applied to both originating and terminating access minutes. AT&T suggested that the surcharge be placed only on originating intraLATA access minutes of use. Despite these concerns, US WEST and AT&T consented to the Settlement Agreement only for this particular case. The parties to the Settlement Agreement recommend that the Commission issue a Notice of Modified Procedure requesting comments on the toll dialing parity plan. The parties request that the Commission request comments in 14 days so that Citizens might still meet the FCC implementation date of August 8, 1997.
Commission Decision
What is the Commissions pleasure? Does the Commission desire to issue a Notice of Modified Procedure soliciting comments on the Settlement Agreement?
Does the Commission agree to the 14-day comment period?
Don Howell
vld/M:CTC-T-97-2.dh2
MCIs late Petition to Intervene and Citizens opposition to the intervention is a separate subject to be considered at the Commissions decision meeting scheduled for June 10, 1997.
DECISION MEMORANDUM 1