28740.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE COMMISSION STAFF’S PROPOSAL FOR INSTALLATION OF A FIBER ROUTE BETWEEN RIGGINS AND GRANGEVILLE, IDAHO
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CASE NO. GNR-T-00-40

ORDER NO. 28740

On April 9, 2001, the Commission issued Order No. 28690 approving the installation of a fiber route between Riggins and Grangeville, Idaho. Funds for construction of the fiber route would come from proceeds of the sale of Qwest Corporation’s northern Idaho exchanges to Citizens Telecommunications Company. The Commission directed that, “at the close of the sale of exchanges to Citizens, the amount of $4.94 million will be transferred to Citizens and placed in a regulatory liability account on Citizens’ books, and then used to offset the intrastate cost of the fiber route when it is actually completed.” Order No. 28690, p. 6. On April 27, 2001, Qwest filed a Motion for Clarification on three points mentioned in the Order.
The first issue identified by Qwest for clarification is “competitively neutral access” to the fiber route once it is constructed. Comments filed in the case discussed the competitive ramifications of providing funds to Citizens for construction of the fiber facilities. Accordingly, the Commission in Order No. 28690 stated that Citizens must allow access to the fiber route by competitor telecommunications providers on a non-discriminatory, competitively neutral basis. The Commission also required Citizens to “build in sufficient capacity, including a spare duct, in the fiber route to serve competitor companies.” Qwest asks the Commission to clarify this portion of the Order to further define “non-discriminatory, competitively neutral access” and to provide guidance as to how Citizens must provide this access.
The second issue identified by Qwest for clarification relates to the relationship between the contributed funds for the fiber installation and Citizens’ independent commitment to improve facilities. Qwest notes that Citizens committed to spend $27 million in the north Idaho exchanges it is purchasing within three years following the acquisition. According to Qwest, “if Citizens were permitted to count the investment in the fiber route against the total committed investment, the customers in the acquired exchanges may see less investment than was originally expected. . . .” Qwest asks the Commission to clarify this point in the Order.
The third point identified by Qwest for clarification is in regard to anticipated excess funds available from the sale proceeds beyond the cost of the proposed fiber route. Qwest notes that “the Order provides that the entire $4.94 million be placed in the regulatory liability account where it will accrue interest until the final accounting entries are audited, even though the Commission anticipates the actual construction costs will be less than the contribution.” Although the Order states that the Commission will determine the best use for any remaining funds, Qwest states that “the Order is silent as to whether there will be a forum for interested parties to comment on any such proposed uses.” Qwest asks the Commission to clarify the Order “to provide interested parties the opportunity to comment on proposed uses of any remaining portion of the $4.94 million contribution.”
We decline to further clarify Order No. 28690 as requested by Qwest in its Motion. The points for clarification identified by Qwest are issues that, in large measure, will be addressed by Citizens after the sales transaction closes. The Commission already has in place reporting requirements for Citizens during and after the close of the sale of Qwest’s northern Idaho exchanges. For example, the Order approving the sales transaction requires Citizens to file a “capital deployment plan” within six months of close and again at 18 months of the closing date. Order No. 28394, p. 4. The Order approving the use of sale proceeds to construct the fiber route requires Citizens to provide a written estimate of construction costs within 90 days of close of the sale, and Citizens “must provide written reports of actual costs at least twice – once at the approximate mid-point of construction and again at the completion of the project.” Order No. 28690, p. 6. Citizens is also required to “continue working with Staff during the transition to help ensure that the process does not unnecessarily disrupt customer service.” Order No. 28394, p. 9. This is similar to the arrangement approved by the Commission for replacement of the central office switch in Lewiston, wherein Citizens must report to the Commission “its capital expenditures for facilities improvement” and “must provide an accounting of costs to replace the central office switch.” If funds remain after the switch is replaced, Citizens is required to “work with Staff to make a recommendation for the use of funds remaining after the switch replacement cost is determined.” Order No. 28394, p. 9.
The Commission has ordered that Citizens provide access to the fiber facilities on a “non-discriminatory, competitively neutral” basis, and it remains for Citizens to ensure that such access is provided. By the reporting and monitoring requirements already in place, the Commission expects Citizens to make known its plans to construct the fiber route, including the steps it will take to comply with the requirement that it be available to competitors in a non-discriminatory manner. The existing reporting requirements, and the Staff’s auditing of the sale transaction, once it occurs, and the capital improvements by Citizens, will ensure that the clarifying information Qwest seeks will be available well before construction of the fiber facilities is complete.
O R D E R
IT IS HEREBY ORDERED that Qwest’s Motion for Clarification of Order No. 28690 is denied.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of May 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/o:GNR-T-00-40_ws4

ORDER NO. 28740 1

Office of the Secretary
Service Date
May 29, 2001