28617.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 NOS. GNR-T-97-22
GNR-T-00-2

ORDER TO VACATE HEARING AND MODIFY PROCEDURAL SCHEDULE

ORDER NO.  28617
IN THE MATTER OF THE INVESTIGATION TO ESTABLISH THE IDAHO HIGH COST FUND AS REQUIRED BY IDAHO CODE § 62-610A THROUGH F.
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On January 8, 2001, Qwest Corporation filed by facsimile an expedited Motion for Modification of Procedural Schedule. Qwest also filed a Notice of Withdrawal from Stipulation and partial withdrawal of testimony. Qwest’s Notice stated that it was withdrawing from the Stipulation because “it realized that it might not have reached a meeting of minds with the Staff regarding a critical issue: specific IHCF [high cost fund] per line support for wire centers served by Qwest and Verizon.” Qwest Motion p. 2. By its Motion, Qwest asks the Commission to vacate the current procedural schedule and allow Qwest an additional 30 days “to either attempt to meet a mutually acceptable agreement with Staff or offer another independent alternative for the parties’ consideration.” Qwest Motion p. 4. The current procedural schedule provided for the filing of rebuttal testimony on January 12, 2001, and a hearing was scheduled to commence January 29, 2001.
On January 9, 2001, the Commission Staff filed its response to Qwest’s Motion for Modification of Procedural Schedule. Staff stated it does not oppose Qwest’s Motion to Vacate the Procedural Schedule, and noting the date for prefiling rebuttal testimony, stated “it seems nearly impossible that the Commission could rule on Qwest’s Motion. . .in time for the parties to respond and file rebuttal testimony by January 12, 2001.” Staff Response p. 3. A response to Qwest’s Motion also was filed by Verizon Northwest, Inc. and Verizon Wireless, stating its support of Qwest’s Motion. In fact, Verizon stated its preference that the Commission suspend the procedural schedule indefinitely. AT&T Communications of the Mountain States, Inc. filed a response on January 16, 2001, also voicing support for suspending the case indefinitely to allow “non-rural local exchange carriers to rebalance their rates in a revenue neutral manner.” AT&T Response p. 2.
The Commission has determined to grant Qwest’s Motion to Modify the Procedural Schedule. Given the uncertainty created by Qwest’s Notice of Withdrawal from the Stipulation and its Motion, the parties did not have a fair opportunity to prepare and file rebuttal testimony by January 12, 2001. In addition, the purpose for Qwest’s Motion to Modify the Procedural Schedule is to provide an opportunity for it to clear up its misunderstanding of the Stipulation and file, if appropriate, objections or alternatives to the proposed Stipulation. Because the Commission has determined to grant Qwest’s Motion to Modify the Procedural Schedule, it is not necessary to convene an oral argument on Qwest’s Motion.
The Commission will grant Qwest’s Motion to Modify the Procedural Schedule and provide Qwest an opportunity to refile its direct testimony. Because Qwest supported the Stipulation on the date direct testimony was filed and subsequently withdrew from the Stipulation, Qwest will be given an opportunity to refile direct testimony before rebuttal testimony is due for all parties.
The Commission will reset the hearing that was to convene on January 29, 2001 to consider the reasonableness of the Stipulation and whether it is just, fair and in the public interest. See IPUC Rule of Procedure 274, IDAPA 31.01.01.274. The hearing will convene on March 20-21, 2001. Qwest may file its revised direct testimony on February 5, 2001. Rebuttal testimony shall be filed by all parties on February 28, 2001.
O R D E R
IT IS HEREBY ORDERED that the Commission grants Qwest’s Motion to Modify the Procedural Schedule as set forth above. The hearing set for January 29, 2001, is vacated and reset to convene March 20-21, 2001.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2001.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O: GNR-T-97-22_GNR-T-00-2_ws6

ORDER TO VACATE HEARING AND
MODIFY PROCEDURAL SCHEDULE
ORDER NO.  28617 1

Office of the Secretary
Service Date
January 22, 2001