20060120Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:JANUARY 9, 2006
RE:OREGON-IDAHO UTILITIES COMPLIANCE FILING FOR THE
PRIMARY INTEREXCHANGE CARRIER ("PIC") CHARGES IN
COMPLIANCE WITH COMMISSION ORDER NO. 29916;
CASE NO. GNR-05-
BACKGROUND
On December 30 2005 , Oregon-Idaho Utilities, Inc., filed Tariff Advice No.5 in
compliance with Commission Order 29916 issued in Case No. GNR-05-
DISCUSSION
On November 23 2005 , the Commission issued Order No. 29916 in Case No. GNR-
05-, wherein it adopted the intrastate/intraLA T A primary interexchange carrier (LPIC) change
charge. The Commission stated that the LPIC change charges "shall coincide with the FCC'
PIC change charge safe harbor pricing structure
The FCC issued a Report and Order (47 C.R. Chapter I, CC Docket No. 02-, FCC
05-32) revising its PIC charge policies. PIC change charges are federally tariffed charges
imposed by Incumbent Local Exchange Carriers ("ILECs ) on end-user subscribers when these
subscribers change their long distance carriers. The Report and Order requires ILECs to create
separate PIC change charges based on the method used to process the request. Based on cost
information submitted in the record of the proceeding, the Report and Order adopts safe harbors
below which PIC change charges will be considered reasonable. These safe harbors are $1.25
for electronically processed PIC changes and $5.50 for manually processed PIC changes.
Additionally, ILECs must also revise their federal tariffs to reflect a rate that is equal to 50
DECISION MEMORANDUM - 1 -JANUARY 9, 2006
percent of the full PIC change charge rate when a customer requests a PIC change in conjunction
with an LPIC change.
STAFF ANALYSIS AND RECOMMENDATION
The Company is requesting an effective date of January 1 2006. Because this is a
compliance filing as a result ofthe Commission s Order, Staff recommends approval.
COMMISSION DECISION
Does the Commission agree?
Carolee Hall
u/chall/decision memos/Oregon-Idaho PIC change charges Advice 5
DECISION MEMORANDUM - 2 -JANUARY 9 , 2006