HomeMy WebLinkAbout19970915Decision Memo.doc DECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER NELSON
COMMISSIONER SMITH
MYRNA WALTERS
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVID SCHUNKE
JOE CUSICK
BEV BARKER
BILL EASTLAKE
BIRDELLE BROWN
CAROLEE HALL
WAYNE HART
DAVID SCOTT
WORKING FILE
FROM: DON HOWELL
DATE: SEPTEMBER 15, 1997
RE: EAS PETITION AMONG THE CITIZENS EXCHANGES OF HOMEDALE, WILDER AND PARMA, TO THE U S WEST EXCHANGES OF CALDWELL AND NAMPA, CASE NOS. CTC-T-97-3, GNR-T-93-7, AND GNR-T-93-11
On April 29, 1997, the Commission held a public hearing in Wilder which numerous customers appeared and expressed their desire for expanded local calling (i.e., EAS) as soon as possible among the communities of Homedale, Wilder, Parma, Caldwell and Nampa. Citizens Telecommunications Company of Idaho provides local exchange service in Homedale, Wilder and Parma; U S WEST provides the local exchange service to communities of Caldwell and Nampa.
CITIZENS CALLING PROPOSAL
On June 2, 1997, Citizens submitted tariff revisions that proposed a new local calling plan from the three Citizens exchanges to the two U S WEST exchanges. Citizens proposed three one-way calling options to the Caldwell exchange and the same three calling options for the Nampa exchange but at different rates.
1. To Caldwell. The premium flat rate option would allow unlimited calling from the Citizens exchanges to Caldwell for an additional payment of $8.00 per month for residential customers, and $11.00 per month for business customers. The second option (measured service) would provide calling at a measured service usage rate of $0.05 per minute with flat rate elements of $4.00 per month for residential customers and $5.50 per month for business customers. The third option would be to continue the status quocalls between these exchanges would continue to be rated as toll calls, at whatever rates are charged by the customers toll carriers.
2. To Nampa. Citizens proposed the same three options from the Citizens exchanges to the Nampa exchange. The premium flat rate option would be available at $7.00 per month for residential customers and $10.00 per month for business customers. The measured service option would be offered at $3.50 per month for residential customers and $5.00 per month for business customers at the same $0.05 per minute usage rate. The third option would be the present toll calling. Citizens proposed that the Nampa options and the Caldwell options be purchased separatelyCitizens customers could purchase both options. Calls to either U S WEST exchange would be placed using the normal seven digit dialing pattern. Billing under the measured service option would not include call detail, but this information would be available at an additional cost of $1.75 per month plus $0.10 per page.
At the decision meeting held July 8, 1997, the Commission expressed reservations concerning the one-way nature of the EAS options for the Citizens customers. U S WEST also voiced concern about the form of compensation which would be paid by Citizens to terminate calls to the Nampa or Caldwell exchanges. More specifically, U S WEST was concerned whether these calls would be considered toll or local calls for purposes of compensation. The Commissioners declined making a final determination in this case and urged Citizens and U S WEST to considered measures to rectify the Commissions concerns.
THE COMPANIES UPDATE
Following prolonged discussions between Citizens and U S WEST, they have succeeded in resolving a number of the outstanding issues. As a result of these discussions, the Companies filed a letter with the Commission on September 12, 1997 (attached). As indicated in the letter, U S WEST agreed to expand its Treasure Valley regional calling area to include the Citizens exchanges of Parma, Wilder and Homedale at no additional cost to U S WEST customers. Citizens continues to prefer EAS between its three exchanges be limited to only the Nampa and Caldwell exchanges. Although U S WEST and Citizens have not reached an agreement as to the scope of U S WEST cities which will be included in the offerings, the companies are nevertheless willing to allow the Commission to make the decision as to which U S WEST exchanges are to be included in the [Citizens-U S WEST] EAS. Joint letter at 2. U S WESTs concern is that if the Commission limits the Parma, Wilder and Homedale EAS to just Nampa and Caldwell, this may create situations for illegal EAS arbitrage for calls from the Citizens exchanges to other U S WEST exchanges in the Treasure Valley region. For example, an entity may offer to complete calls from the Citizens exchange to any other exchange in the U S WEST calling region without paying access charges, e.g., the Upper Valley case.
The letter also notes that Citizens and U S WEST are currently negotiating a local interconnection agreement that will include mutual compensation arrangements for the exchange of traffic on Commission-approved EAS routes. Pending completion of the interconnection agreement, the parties have agreed to interim terms and conditions for termination of traffic on the subject routes in order to assure that implementation of EAS is not delayed pending the ongoing negotiations. Until the negotiated agreement is finalized, calls on the routes ordered by the Commission in this case will be compensated through the payment of terminating switched access. The interim arrangement will commence on the date of implementation of EAS and continue for 180 days. Joint letter at 2. If the parties have not finalized their agreement, then all traffic after the 180-day period will terminate on a bill and keep basis until such time as the parties agree to terms for mutual compensation.
STAFF RECOMMENDATION
Given the supplemental filing of the parties today, Staff believes that it is reasonable for the Commission to approve two-way EAS calling between the three Citizens exchanges and Nampa and Caldwell. Given the community-of-interest among the exchanges, Staff believes that two-way calling is appropriate. To limit the adverse consequences to Citizens, Staff recommends that the EAS be limited to the Nampa and/or Caldwell exchanges.
COMMISSION DECISION
1. Does the Commission desire to approve Citizens three calling options:
(a) on a one-way basis as originally proposed by Citizens
(b) on a two-way basis? If so, does the Commission desire to limit the two-way EAS simply between the three Citizens exchanges and: 1) Nampa and Caldwell or, 2) to the entire U S WEST Treasure Valley region?
2. Does the Commission adopt the proposal of the parties concerning mutual compensation arrangements on an interim basis?
3. Does the Commission desire to address EAS arbitrage?
4. Does the Commission desire some other action?
Donald L. Howell, II
Deputy Attorney General
bls/M-ctct973.dh
DECISION MEMORANDUM 4