20120531Comments.pdf

WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3283
IDAHO PLLft; TLTE$ 0MMISSI1
Street Address for Express Mail:
472 W WASHINGTON
BOISE ID 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMISSION'S )
REVIEW OF TELEPHONE CUSTOMER ) CASE NO. GNR-T-12-03
RELATIONS RULE 502, IDAPA 31,41.01.502 )
)
) COMMENTS OF THE
) COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through
its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, and in response to the
Notice of Settlement Stipulation and Notice of Modified Procedure issued in Order No. 32548
on May 10, 2012, submits the following comments.
BACKGROUND
On December 22, 2011, a Petition was filed by Qwest Corporation dba CenturyLink QC,
CenturyTel of Idaho, Inc. dba CenturyLink, and CenturyTel of the Gem State, Inc. dba
CenturyLink (the CenturyLink Companies or CenturyLink) requesting an exemption from the
Commission's Telephone Customer Relations Rule 502 (IDAPA 31.41.01.502). Rule 502
establishes standards for a telephone company to restore basic local service after an outage, and
requires payment of customer credits when standards are not met. The rule was initially adopted
in 1993, and CenturyLink asserted in its Petition that changes in the telecommunications industry
STAFF COMMENTS 1 MAY 31, 2012
since the rule was adopted make the rule obsolete, and that the rule now creates unusual and
unreasonable hardships in a competitive marketplace that did not exist when the rule was
adopted.
Rule 502, under most circumstances, requires a telephone company to restore local
service within 24 hours after an outage is reported to the company. IDAPA 31.01.41.502.01 .b.
If a telephone company does not restore service within the time required by the Rule, the
company must credit the customer's account for an amount equal to the monthly rate for one
month of local exchange service. Id. The rule requires telephone companies to keep monthly
records of out-of-service reports and to notify the Commission if the company is not able to clear
at least 90% of outages within the time required by the rule for a period of three consecutive
months. IDAPA 31.01.41.502.03.
The Commission initiated a review of Telephone Customer Relations Rule 502 and
update the rule, if appropriate, to recognize the changes that have occurred in the
telecommunications industry since 1993. The Commission Staff convened a public workshop on
April 30, 2012, to discuss Rule 502, and obtain information and expertise from industry
representatives to recommend possible changes to the rule. The Commission served notice of
the workshop on April 10, 2012, to all telecommunications providers with contact information
on file with the Commission. Representatives from CentuiyLink, Frontier Communications
Northwest Inc. and Citizens Telecommunications Company of Idaho dba Frontier
Communications of Idaho (Frontier), TDS Telecommunications Corp. (TDS), the Idaho Telecom
Alliance (ITA), and Commission Staff attended the workshop.
The parties attending the workshop agreed to revise Rule 502, simplifying the rule and
removing the reporting requirements and the credit to customers requirements. On May 4, 2012,
the parties filed a Settlement Stipulation with the Commission. The rule as revised by agreement
of the parties is the following:
502. REPAIR SERVICE STANDARDS (RULE 502).
01. Restoration of Service. When a telephone company providing local
exchange service is informed by a customer of a service outage as described
in Rule 500.02, the telephone company must restore service within forty-eight
(48) hours after the report of the outage, except (a) for outages reported on
Thursday, the company must restore service no later than the following
Monday by 6:00 pm, and (b) for outages reported on Friday, Saturday or
Sunday, the company must restore service no later than the following Tuesday
by 6:00 pm.
STAFF COMMENTS 2 MAY 31, 2012
2.Extenuating Circumstances. Following disruption of telephone
service caused by natural disaster or other causes not within the telephone
company's control and affecting large groups of customers, or in conditions
where the personal safety of an employee would be jeopardized, the telephone
company is required to use reasonable judgment and diligence to restore
service, giving due regard for the needs of various customers. When a
customer causes the customer's own service outage or does not make a
reasonable effort to arrange a repair visit within the service restoration
deadline, or when the telephone company determines that the outage is
attributable to the customer's own equipment or inside wire, the telephone
company is not required to meet the restoration timelines of Rule 502.01.
3.Compliance Standard. Each month at least eighty percent (80%) of
out-of-service trouble reports shall be cleared in accordance with Rules
502.01 and 502.02.
The parties filed the Settlement Stipulation with the Commission and requested that the
Commission approve it without alteration or modification. The parties further requested that the
Commission's consideration of the Settlement Stipulation be processed by Modified Procedure
with a 21-day comment period. The parties further recommended if the revised rule is approved
by the Commission, that it be submitted to the Rules Coordinator for publication and
promulgation as a revised rule.
STAFF REVIEW
The competitive character of the telecommunications industry has changed dramatically
since the out-of-service rule was established in 1993. In 1993, the wireless industry was a
nascent industry, considered more of a luxury item by most. Today that has changed
significantly. According to FCC data, at the end of 2009 Idaho had 1.2 million wireless
connections, far more than the wireline connections in the state. In addition to wireless
competition, traditional telephone companies are seeing increased competition for VoIP
providers such as cable television. Because this is a new and growing source of competition,
good numbers are not available for Idaho but it is clearly a growing service.
Increased competition in Idaho telecommunication markets has had an adverse effect on
Incumbent Local Exchange Carriers line counts and access minutes of use. According to the
Idaho Universal Service Administrator's report, last year residential line counts decreased
STAFF COMMENTS 3 MAY 31, 2012
approximately 11% and business lines increased by 1%.1 There was approximately an 11%
decrease in minutes of use from 2010 to 2011 •2 The five year average percentage changes have
shown an 8% decline in residential lines and 1% increase in business lines, and the billed
minutes of use for the same period has decreased by 4%.
It is against the backdrop that staff looked at the need to modify the Rule 502 given
CenturyLink's petition. Idaho statute 62(605)(5b) gives the Commission authority over service
quality for Title 62 companies and directs that such "requirements shall be technologically and
competitively neutral." Given that the Commission has no authority over wireless and VoIP
providers this is not an easy task.
In its negotiations, Staff attempted to reach a compromise that allowed the companies
regulatory latitude while still providing consumer protection. Although the proposed rule does
not provide for customers to be credited when there is an out-of-service condition, Staff believes
that the current competitive pressure is sufficient incentive to drive quality service from the
LECs. If a LEC fails to meet customer expectations, they may go to a competitive service as so
many have recently.
Staff also realizes that some customers have no choice; they live in any area where
neither wireless service nor VoIP is available. These areas are isolated and difficult to determine
and it is impractical to try to develop a rule that addresses those areas alone.
The Commission received seven comments from customer's regarding the Settlement
Stipulation. The customers are from Soda Springs, Idaho Falls, Saint Anthony, Hammett and
Rigby. Of the seven comments received, two were not customers of CenturyLink, two were
former employees and the rest were current customers who had similar concerns: the elimination
of the credit for service outages and the extension of time to repair the outages. The main
argument for the credit was to motivate companies to repair service outages in a timely manner.
The customers are concerned that when service goes out there are no penalties and the Company
may simply take its time to repair the outage, which could adversely affect the customers' ability
1 2011 Annual Idaho Universal Service Administrator Report. Commission Order No. 32336 2 2011 Idaho Universal Service Fund Administrator Report.
STAFF COMMENTS 4 MAY 31, 2012
to call emergency services and/or loss of business revenues. One customer in Hammett voiced
concern that his cell service was spotty and he frequently lost power, which is necessary to keep
a cell phone charged. Therefore, he is very dependent upon his landline service. Staff would
like to remind the customers who experience service outages that this Commission will continue
to take and investigate service quality complaints.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Stipulation and grant an exemption
to the existing Rule 502 to the companies that are parties to the Settlement Stipulation, and to
any other company that subsequently requests an exemption, pending completion of the
rulemaking process and the effectiveness of the revised Rule 502. The parties agreed, and the
Commission may order, that any company granted an exemption will be bound by the terms of
the revised Rule 502 during pendency of its enactment.
Respectfully submitted this day of May 2012.
Weldon B. Stutzman
Deputy Attorney General
Technical Staff: Carolee Hall
Bev Barker
chall/ comments/gnrtl 2.3wschbab comments
STAFF COMMENTS 5 MAY 31, 2012
CERTIFICATE OF SERVICE
THAT I HAVE THIS 31ST DAY OF MAY 2012,
COMMENTS OF THE COMMISSION STAFF, IN
MAILING A COPY THEREOF, POSTAGE PREPAID,
I HEREBY CERTIFY
SERVED THE FOREGOING
CASE NO. GNR-T-12-03, B
TO THE FOLLOWING:
MARY S HOBSON ESQ
QWEST CORPORATION
999 MAIN ST STE 1103
BOISE ID 83702
E-MAIL: [e-mail]
CYNTHIA A. MELILLO
IDAHO TELECOM ALLIANCE
8385 W EMERALD STREET
BOISE ID 83704
E-MAIL: [e-mail]
RENEE M WILLER MGR
FRONTIER COMMUNICATIONS
NORTHWEST INC
SUITE 150
20575 NW VON NEUMANN DR
BEAVERTON OR 97006
E-MAIL: [e-mail]
GAIL LONG
MANAGER STATE GOVERNMENT
AFFAIRS
TDS TELECOMMUNICATIONS CORP
P0 BOX 1566
OREGON CITY OR 97045
E-MAIL: Gai1.1ong(tdste1ecom.com
SECRETAI
CERTIFICATE OF SERVICE