HomeMy WebLinkAbout19980414Comments.docWELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0318
Street Address for Express Mail:
472 W WASHINGTON
BOISE ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF LCI INTERNATIONAL TELECOM ) CASE NO. LCI-T-97-1
CORP. FOR A CERTIFICATE OF PUBLIC )
CONVENIENCE AND NECESSITY TO )
PROVIDE LOCAL EXCHANGE SERVICE ) COMMENTS OF THE
AS A COMPETITIVE LOCAL CARRIER. ) COMMISSION STAFF
_________________________________________ )
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Weldon Stutzman, Deputy Attorney General, and submits the following comments for the Commissions consideration in Case No. LCI-T-97-1.
BACKGROUND
On June 9, 1997, LCI International Telecom Corp. (LCI) filed an application for a Certificate of Public Convenience and Necessity (CPCN) in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. LCI filed a number of amendments to its application, to better comport with applicable Idaho law and Commission Rules. LCI currently is authorized to provide telecommunications service pursuant to Title 62 of the Idaho Code and is seeking authorization to provide local exchange service pursuant to
Title 61 to Idaho residences and businesses within the U S WEST and GTE service areas through a resale arrangement. At present, LCI has not obtained an interconnection agreement with
U S WEST or GTE.
DISCUSSION
Staff has reviewed the application submitted by LCI and believes that it meets the requirements of the Commissions Rules and Procedural Order No. 26665, which sets out necessary information to be included with an application for a certificate submitted by a new local exchange provider in Idaho. LCI had requested certain waivers from Commission rules, but has since withdrawn all requests except for that portion of Rule 31.41.02.102, Notices to Customers of Proposed Changes in Rates (Rule 102). LCI has requested that a waiver be granted for that portion of the rule that requires television and radio announcements of proposed rate increases. Staff believes that this is a reasonable request and recommends approval of this request. With the exception of television and radio announcements for rate increases, LCI has agreed to comply with the Commissions rules and procedures.
Staff would like to note, however, that possible slamming practices by LCI are of concern. Staff has examined the Commissions records of a total of 22 informal complaints and inquiries regarding LCIs interexchange and operator service for 1996, 12 for 1997, and 1 from January 1 to March 31, 1998. The records consist of the Commissions Consumer Assistance Staffs electronic documentation of conversations with LCIs customers and various telecommunications companies representatives as well as correspondence, bills, and other written materials. Staff does not know the total number of LCIs interexchange customers and thus cannot fully evaluate the total extent of consumer problems. However, in Staffs experience, the total number of complaints received by the Commission normally do not accurately reflect the total magnitude of consumer problems.
The primary areas of concern expressed by Idaho consumers involve billing disputes. Since January 1996 to March 31, 1998, there have been 5 allegations of slamming, the unauthorized switching of interexchange carriers. Four instances occurred in southeastern Idaho in 1996. There was only one slamming allegation in 1997 and none for the first quarter of 1998.
LCI had 145 consumer complaints filed against it with the Federal Communications Commission regarding allegations of slamming in 1996 (Common Carrier Scorecard Report, December 1997). Appendix B of that FCC report (included with Staff comments as Attachment A) shows the number of slamming complaints filed against carriers, resellers, and billing agents.
According to TR Daily (September 25, 1996 issue) LCI entered into a consent decree with the Enforcement Division of the FCCs Common Carrier Bureau to resolve a slamming allegation against the carrier. Last fall, the bureau found LCI apparently liable for a $40,000 fine for violating the FCCs rules against unauthorized changes to customers presubscribed interexchange carriers. According to a copy of the consent decree released, LCI did not admit any alleged violations of the slamming rules, but did agree to make a voluntary contribution of $15,000 to the U.S. Treasury. In addition, LCI agreed to send a written advisory to sales agents and modify its sales manuals to make clear that sales representatives may not sign letters of agency authorizing PIC changes on customers behalf.
STAFF RECOMMENDATIONS
Because of LCIs alleged slamming practices, Staff recommends approval of LCIs application, with the condition that no slamming complaints are received by the Commission for the remainder of 1998. In Order No. 27356, the Commission noted:
.....it would be dilatory in its duty if it did not take strong action where slamming is alleged. It is not in the publics interest to issue any new carrier a Certificate of Public Convenience and Necessity to provide local telecommunications service where that carrier already has a strong history of slamming consumers in Idaho . . .
Staff recognizes that the number of slamming allegations by Idaho consumers against LCI have decreased over time. It is possible that actions taken by LCI after entering into its consent agreement with the FCC have had the desired effect of decreasing slamming. It may be too soon to tell whether the practice has been eliminated altogether in Idaho.
Staff recommends that LCI be granted a Certificate of Public Convenience and Necessity, conditioned on no slamming complaints lodged with the Commission for the remainder of 1998.
Respectfully submitted this day of April 1998.
Weldon Stutzman
Deputy Attorney General
Technical Staff: Carolee Hall
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STAFF COMMENTS 1 April 14, 1998