LYONS.docx

October 26, 1998
Mr. James F.  Lyons, Esq.
830 Ridenbaugh
Boise, ID 83702
RE: Flat Rate Long Distance Plans
Dear Mr. Lyons:
Your letter of October 13, 1998, inquired about flat rate long-distance plans.  You generally asked why flat rate or unlimited time calling plans are not available in Idaho.  Some carriers (e.g., AT&T) do offer flat rate calling by selling “blocks” or hours of calling for a monthly flat rate.  However, the simple reason more such plans are not available is that the more than 200 long distance companies operating in Idaho have chosen not to offer these plans.  Under the 1988 Idaho Telecommunications Act (Idaho Code §§ 62-601 et seq.), the Commission no longer has the authority to establish the rates or the types of calling plans that long-distance carriers offer to Idaho customers.  Although more flat rate calling plans may be offered in the future, long-distance carriers continue to offer plans on a per call basis.
Turning to your comments about the internet, you are correct that some Internet service providers (ISPs) do offer Internet access plans of unlimited duration for a monthly flat fee.  These ISPs typically transmit data over the public telephone network.  Congress and the Federal Communications Commission have thus far excluded ISPs from traditional telecommunications regulation even though the ISP traffic uses the telephone network.  Some ISPs are now or will soon offer long-distance calling plans that proportedly use the Internet to transport the telephone calls.  At least two major telephone companies (one of which is U S WEST) have notified these ISPs and the FCC that they intend to treat this Internet calling traffic as regular long distance service.  In other words, U S WEST intends to assess per-minute charges on this type of traffic.
Your assertion that older copper systems have been fully depreciated is partly accurate.  Given recent technological advances, state-of-the-art digital communication services are able to use the existing copper facilities, and given the inexpensiveness of copper, it continues to be deployed in the telephone network.  Consequently, the “old” wire is fully depreciated but newly installed copper wire is not.  As of 1997, U S WEST’s southern Idaho rate base (including its copper distribution facilities) was approximately $129 million for its regulated services.
Finally, you asked why Idaho does not have a consumers’ advocate office.  You are correct that several states have entities specifically designated to advocate on behalf of utility consumers.  These entities take several forms: specific offices within the Public Utilities Commissions; self operating entities; or units in the state Attorneys General’s offices.  Idaho does not have a specific unit although the PUC has a Consumer Assistance unit to help consumers with utility inquiries and complaints.  In addition, the Legislature has enacted a statute that allows intervenors in utility cases (consumers or others) to defray their costs of participation.  Idaho Code § 61-617A provides that $25,000 in intervenor funding shall be available in certain utility cases “to encourage participation at all stages of all proceedings before the commission so that all affected customers receive full and fair representation in those proceedings.”  Several consumer groups (Idaho Citizens Coalition and Idaho Consumer Affairs) regularly participate in cases before the Commission and have received such funding in the past.
I hope you find this information useful.  If I can provide further information, please contact me at 334-0312.
Sincerely yours,
Donald L.  Howell, II
Deputy Attorney General
DLH/vld:L:Lyons
Enclosure
cc:Commissioners
MR. JAMES F.  LYONS, ESQ.
830 RIDENBAUGH
BOISE, ID 83702