28260.hrg.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE INVESTIGATION TO DETERMINE AN APPROPRIATE COST MODEL USING FORWARD-LOOKING ECONOMIC COSTS FOR CALCULATING THE COSTS OF BASIC TELECOMMUNICATION SERVICES IN IDAHO.
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) CASE NO. GNRT9722

NOTICE OF HEARING

NOTICE OF SCHEDULING

ORDER NO.  28260

On December 19, 1997, the Commission issued a Notice of Inquiry and Notice of Prehearing Conference to initiate this docket to analyze cost models and adopt a forward-looking cost model for the purpose of evaluating the costs of providing intrastate telecommunications services within the state in response to enactment of Idaho Code § 62-610A-F. The Commission scheduled and held a hearing on March 9-10, 1998. The attendees provided comments on various Universal Service Fund (USF) mechanisms and acknowledged that the Federal Communications Commission (FCC) was in the process of developing and implementing its own non-rural USF model.
Idaho Code § 62-610F provides that the Idaho non-rural USF mechanism shall operate “in conjunction with federal universal service support mechanism” and be established after adoption of the federal USF mechanism. Idaho Code § 62-610B makes clear that all telecommunications providers, including “municipal, cooperative or mutual telephone companies and telecommunications companies providing wireless, cellular, personal communications services and mobile radio services for compensation” may be eligible for the new Non-Rural USF support.
On November 2, 1999, the FCC issued two orders outlining its forward-looking cost model mechanism for federal high cost support for non-rural local exchange companies (LECs): In the Matter of Federal-State Joint Board on Universal Service, Ninth Report and Order and Eighteenth Order on Reconsideration, CC Docket No. 96-45, FCC 99-306 (adopted October 21, 1999 and released November 2, 1999) (Methodology Order) and In the Matter of Federal-State Joint Board on Universal Service, Forward-Looking Cost Mechanism For High Cost Support For Non-Rural LECs, Tenth Report and Order, CC Docket No. 96-45, FCC 99-304 (adopted October 21, 1999 and released November 2, 1999) (Inputs Order).
The federal USF non-rural high cost model as adopted in the FCC Orders incorporates aspects of most of the models proposed by the parties to this proceeding. The FCC noted that after a thorough review of the model and its input values, plus extensive coordination with Joint Board staff and interested outside parties, “we are convinced that it generates reasonably accurate estimates of forward-looking costs and that the model is the best basis for determining non-rural carrier’s high-cost support in a competitive environment.” FCC 99-304, paragraph 23. Pursuant to Notice and Order Nos. 28245 and 28223, the Commission convened a prehearing conference on January 7, 2000, to establish a schedule to process this case. The parties further discussed scheduling on January 12, 2000, and suggested the following schedule to the Commission.
YOU ARE HEREBY NOTIFIED that the Commission has determined that the following schedule will control the process of this case:

March 8, 2000

May 17, 2000

June 14, 2000

August 1-4, 2000
All parties file direct testimony

All parties file reply testimony.

All parties file rebuttal testimony.

Hearing.
YOU ARE HEREBY NOTIFIED that the Commission will convene a hearing in this case on AUGUST 1, 2000, AT 9:30 A.M. IN THE COMMISSION HEARING ROOM, 472 WEST WASHINGTON, BOISE, IDAHO, and continuing until completed.
YOU ARE FURTHER NOTIFIED that persons desiring to participate in this case for the purpose of receiving comments, testimony or any other documents filed by other persons or Commission Orders or further notices issued by the Commission in this case, must notify the Commission Secretary in writing that they desire to be placed on a service list to receive comments, Orders, and Notices in this proceeding. Persons desiring to participate in this case and remain on the service list must notify the Commission Secretary no later than fourteen (14) days from the service date of this Order. The Commission Secretary shall then publish a Notice of Parties.
YOU ARE FURTHER NOTIFIED that all hearings will be conducted pursuant to the Rules of Procedure adopted by the Idaho Public Utilities Commission. IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act. Persons needing the help of a sign language interpreter or other assistance of the kind that the Commission is obligated to provide under the Americans with Disabilities Act in order to participate in or to understand the testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing. The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (TELEPHONE)
[phone] (TEXT TELEPHONE)
[phone] (FAX)

ISSUES TO BE COVERED IN TESTIMONY
The Commission seeks comments on the recently adopted FCC model for calculating high cost support for non-rural LECs in Idaho and the FCC inputs. The Commission proposes to use both the FCC model and the FCC input values as a starting place for any discussion and directs the parties to make recommendations as to what input values may be more appropriate for Idaho purposes. Likewise, parties should recommend specific changes to the FCC model that they believe would better support Idaho needs. While the parties have indicated their intention to propose either new models or modifications to models already fully described in the record and the Commission does not preclude the parties from introducing such evidence, the Commission specifically directs the parties to identify what changes to the FCC model and/or its inputs should be made to accommodate Idaho needs.
Pursuant to Commission Rule 263 (IDAPA 31.01.01.263), the Commission takes official notice of the following reports, orders and associated appendices issued by the FCC regarding the cost model and makes them part of the record in this case:
1. Federal-State Joint Board on Universal Service, Second Recommended Decision, 13 FCC Rcd 24744 (1998).
2. Federal-State Joint Board on Universal Service, Fifth Report and Order, 13 FCC Rcd 21323 (1998).
3. Federal-State Joint Board on Universal Service, Forward-Looking Mechanism for High-Cost Support for Non-Rural LECs, Further Notice of Proposed Rulemaking, CC Docket Nos. 96-45, 97-160, FCC 99-120 (rel. May 28, 1999) (Inputs FNPRM).
4. Federal-State Joint Board on Universal Service, Access Charge Reform, Seventh Report & Order and Thirteenth Order on Reconsideration in CC Docket No. 96-45; Fourth Report & Order in CC Docket No. 96-262; and Further Notice of Proposed Rulemaking, CC Docket Nos. 96-45, 96-262, FCC 99-119 (rel. May 28, 1999) (Companion Order).
5. Federal-State Joint Board on Universal Service, Forward-Looking Mechanism for High Cost Support for Non-Rural LECs, Further Notice of Rulemaking, CC Docket Nos. 96-45, 97160, FCC 99-120 (rel. May 28, 1999).
6. Federal-State Joint Board on Universal Service, Ninth Report & Order and Eighteenth Order on Reconsideration, CC Docket No. 96-45, FCC 99-306 (rel. November 2, 1999) (Order Implementing A New Forward-Looking High-Cost Support Mechanism For Non-Rural Carriers).
7. Federal-State Joint Board on Universal Service, Forward-Looking Mechanism for High Cost Support for Non-Rural LECs, Order Adopting Input Values For The Forward-Looking High-Cost Model, CC Docket Nos. 96-45, 97-160, FCC 99-304 with appendices.
Copies of the above described orders, reports and appendices are available for review at the Commission offices. If other material from the FCC dockets appears relevant to the Commission’s consideration of which cost model and which inputs to adopt, the Commission will give all parties notice and an “appropriate opportunity to respond or refute such matters noticed.” Commission Rule 263.02 (IDAPA 31.01.01.263.02).
O R D E R
IT IS HEREBY ORDERED that the schedule set forth in this Notice shall control the processing of this case. The parties shall cooperate to expeditiously provide information regarding the cost models to each other in order to avoid delays in the completion of this case.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

Gnrt9722_cc3

NOTICE OF HEARING
NOTICE OF SCHEDULING
ORDER NO. 28260 -1-

Office of the Secretary
Service Date
January 18, 2000