20090506Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKNG FILE
bl)~-T-D9-03
FROM:BEVERLY BARKR AND DANIEL KLEIN
DATE:APRIL 30, 2009
RE:INTERPRETATION OF RULES 201 AND 202, TELEPHONE
CUSTOMER RELATIONS RULES (TCRR).
BACKGROUND
A Qwest customer has raised several issues tht require interpretation of Rules 201 and
202 ofthe Commission's Telephone Customer Relations Rules (TCRR), IDAPA 31.4 1.0 1.
Qwest disagrees with Stats rule interpretation, as described more fully below.
INTERPRETATION OF RULE 201, TCRR
In the course of investigating an informal complaint fied by a Qwest customer, the
Commission Staff identified a Qwest billng practice that does not comply with the Telephone
Customer Relations Rules. Rule 201.0 1 (c) requires bils for residential and small business local
exchange service to include the due date of the bil. See Attchment A. Qwests bils include
the due date except in instances where a customer has selected the option of automatic monthly
payment by credit card, debit card, or electronic funds transfer from a checking account. If a
customer selects one of those options, Qwest removes the due date from the bils. See
Attchment B. According to the Company, the due date is irrelevant because the payment
transaction wil be processed automatically by Qwest before the actual due date of the bil with
no action required of the customer.
Qwest s position is that Rule 201 does not apply to bils issued to customers who have
selected these payment options. See Attchment C. Since, in its opinion, the rule does not
apply, Qwest believes it is unecessary to seek a rue waiver because it is not violating Rule 201.
DECISION MEMORANDUM APRIL 30, 2009
Qwest points out that any customer who does not find its biling practices to be acceptable may
choose a different method of paying his or her bilL.
Stafts position is that the rule clearly requires due dates on customer bils; there are no
exceptions for certain payment options selected by the customer. Payment of bils by electronic
funds transfer, debit card, or credit card is a standard option offered by many companies, both
regulated and unegulated. If a customer chooses one of these payment options, the customer's
bil typically includes the transaction date for processing the payment and may also include the
regular due date of the bilL. It could be argued that for those customers who have selected an
automatic payment option, the inclusion of transaction dates on bils would provide more
. relevant information to customers than the due date. However, Qwests bils do not provide
either a transaction date or the due date. Instead, Qwest simply provides a statement indicating
the method of payment. Although Rule 201 does not require that bills for local exchange service
include transaction dates, Qwest is not precluded from doing so.
Staff believes there are reasonable alternatives to Qwest's curent practice that would
bring them into compliance with the rule and provide useful information to customers. One
alternative would be inclusion of a due date with a message on bils stating when automatic
payment would be processed, e.g., within 3-5 days following the bil date.
INTERPRETATION OF RULE 202, TCRR
Another issue related to biling due dates concerns the timing of transactions. Payment
transactions are processed by Qwest anywhere from 3-5 days following the customer's bil date,
which is earlier than the customer's normal due date. Affected customers who receive paper
bils sent by U.S. mail may receive their bils on or after the date of the payment transaction. For
example, in the case of one customer who recently complained, the biling date was November
25, the bil amount was posted to his credit card account on December 2, and he received the
paper bil on December 5. The customer objected to the fact that he had no opportunity to
review the bil before it was "paid". In this paricular instance, there was a biling error that he
was unable to address with the Company before the payment transaction occured. This. left him
with the choice of either refusing to pay the amount charged to his credit card bil or waiting for
his next bil from Qwest to reflect a credit for the disputed amount.
DECISION MEMORANDUM 2 APRIL 30, 2009
Rule 202 addresses the timing of due dates. It states that "the minimum specified time
after the biling date is fifteen (15) days (or twelve (12) days after mailng or delivery, if bils are
mailed or delivered more th thee (3) days after the biling date)." The rule does not address
specifically the timing of transaction dates when the customer has selected an automatic payment
option. Although Qwest has not addressed this issue in its letter, Staff assumes the Company's
position is that Rule 202 does not apply in such situations.
STAFF'S CONCLUSIONS AND RECOMMENDATIONS
Staft s conclusions are summarzed below:
· Rule 201 clearly requires that due dates be included on bils. Qwest must obtain an
exemption if it intends to continue to remove due dates from bils provided to customers
who have selected automatic payment options. Alternatively, Qwest could modify its
curent practice to comply with the rule.
· Although identification of transaction dates on bills would provide meaningful
information to customers and might even be considered a reasonable substitute for due
dates, inclusion of transaction dates on bils is not addressed in Rule 201.
· Rule 202 specifies the minimum amount of time that must be allowed for payment of
bils. Although Staff does not regard Qwests practice of processing automatic payment
transactions before customers have the opportunity to receive and review paper bils as
being consistent with good customer service, Rule 202 does not address the timing of
automatic payment transactions.
Staff recommends that:
· The Commission initiate a case by its own motion pursuant to Rule 009, Request for
Exemption, TCRR, to address whether Qwest should be granted a limited exemption to
Rule 201.0l(c) in instances where customers select the options of automatically paying
by electronic funds transfer, credit card, or debit card. IDAPA 31.41.01.009. Staf
recommends that the case be processed by modified procedure.
DECISION MEMORANDUM 3 APRIL 30, 2009
. The issues raised regarding inclusion of transaction dates on bils and the timing of
automatic payment transactions be addressed within the context of a rulemaking
proceeding. Since the Telephone Customer Relations Rules apply not only to Qwest but
to all regulated telephone companies, a rulemaking proceeding would provide all
interested paries the opportity to comment on any proposed changes to the existing
rules. Staff is not suggesting that a rulemaking proceeding be initiated just to address
Rules 201 and 202. Rather, these rules should be reexamined when the Commission
initiates a general review of the TCRR.
COMMISSION DECISION
Does the Commission wish to initiate a case by its own motion pursuant to Rule 009,
,
Request for Exemption, TCRR, to address whether Qwest should be granted a limited exemption
to Rule 20i.Ol(c) in instances where customers select the options of automatically paying by
electronic fuds transfer, credit card, or debit card?
Should this case be processed by modified procedure?
Does the Commission agree with Stafs recommendation that the issues raised regarding
inclusion of transaction dates on bils and the timing of automatic payment transactions be
addressed within the context of a rulemaking proceeding?
J4&t~vÇ?y~
Daniel Klein
i:udmemoslRules 201_202 interp.doc
DECISION MEMORADUM 4 APRIL 30, 2009
201. ISSUANCE OF BILLS--CONTENTS OF BILLS-RESIDENTIAL AND
SMALL BUSINESS SERVICE (Rule 201).
01. Local Exchange Service. Bils for residential and small business local exchange
service shall be issued on a regular basis. Bils must contai the followig information:
(7-1-93)
a. The biling date; (7-1-93)
b. The time period covered by the bil; (7-1-93)
c. The due date of the bil; (7-1-93)
d. Any amounts transferred from another account; (7-l-93)
e. Any amounts past due; (7-1-93)
f. Any payments or credits applied to the customer's account since the last bil; (7-1-93)
g. The total amount due; (7-1-93)
h. Names of other telephone companies or entities that are not telephone companes
whose services are also being biled, identification of the service(s) biled, and the
amount(s) of those bilings; (7-1-93)
i. The mailing addressees) or toll-free telephone number(s) available to customers in the
service territory for answering inquiries about telephone services biled; (7-1-93)
j. An itemization of all non-recurrng charges; and (7-1-93)
k. An itemization of the following recuring charges: total local exchange service bil
(mileage or zone charges and charges for extended area servce may be included in the
total rather than as separate items), touch tone capability, custom calling features,
directory listings, wire maitenance plans, equipment leases, and governentally
imposed taes, surcharges or subscriber line charges. All other recurng charges may be
included in a miscellaneous billng category if the local exchange company explains the
charges in writing pursuant to iDAPA 31.41.02.101. Charges for each element of
packaged services, local measured service, or other calling plans in which individua calls
are not biled need not be separately itemized if the local exchange company provides an
explanation of those services pursuant to iDAP A 31.41.02.1 0 1. (7-1-93)
ATlACHM A
DECISION MEMORUM
4/30/09
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INLUDED IN YOUR STATEMENTø
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ATlACHME B
DECISION MEMORAUM
4/30/09 0'
Jim Schmit
Idaho President
999 Main Slreet, 11 lIi Floor
Boise. Idaho 83702
Mack RedfordPresident lO¡\HC; ¡'!:'::_;:.:_ "'
Idaho Public Utilties Commissil1Jlr¡ L IT ;::~: c (:: :',~; ;': i:3 r~,: ,J;:
472 W. Washington St.
Boise, ID 83702
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208 385 8026 office fax
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Spirit of Service'"
April 1, 2009
Dear Mr. Redford,
A question has been raised about whether or not Qwests voluntary customer program to allow
automatic payment by credit card complies with the Commission rule regarding issuance of bils
or, more specifically, whether or not that rule applies when the customer has chosen this option.
The recurring credit card plan is a voluntary program that allows the customer to have their
monthly bill payment automatically processed approximately 3-5 days following their bill date
each month. If the customer chooses this option, versus a traditional bill, a statement is sent to
the customer, which includes the bill date and the amount to be charged to their credit card, withassociated detaiL. '
There is no "due date" on this statement, since there is nothing for the customer to do. The
purpose of a due date is to give customers time to make arrangements to pay the bilL. In
this situation, the customer has made arrangements, in advance, for automatic bil payments.
ihe rule in question (Rule 201), requiring the bil to include a "due date" does not apply here,
since these customers - at their option - have made other arrangements in advance for payment
of the bilL.
ThiS is an optional bill paying process made available to our customers at their request and for
their convenience. Should the customer not want this option, a "traditional" paper bil, sent in the
mail, with payment by a specified due date is always available. Customers can pay that bill by
check or by using a credit card.
There are over 9000 customers in Idaho currently selecting this option tl't we have been
providing for over a decade. Qwest is not offering this service to circumvent Commission rules.
Rather, Qwest is providing this option for our customers to allow them choices to best fit their
individual circumstances.
The Commission has long been an advocate for providing customers choice and options, which
we are doing in this case. Again, it is our position that Rule 201 does not apply in this situation.
Please let me know if you have any questions or concerns.
Sincerely,
o)/;/-I- i.7I1i/J;"n/l-~;/-',7 ~(..-
Jim Schmit
Qwest Idaho President
cc: Commissioner Kempton, Commissioner Smith, Beverly Barker, Weldon Stutzman,
Mary Hobson
ATlACH C
DECISION MEMORAUM
4/30/09