20170320final_order_no_33728.pdf

Office of the Secretary
Service Date
March 20.2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE LETTER )
REQUEST OF QWEST CORPORATION DBA )CASE NO.PAP-T-14-Ol
CENTURYLINK QC TO DISCO1TINUE )
FILING THE IDAHO PERFORMANCE )ORDER NO.33728
ASSURANCE PLAN REPORTS )
On November 10,2016,Qwest Corporation dba CenturyLink QC (the Company)
filed a letter asking that the Commission permit the Company to stop submitting the Qwest
Performance Assurance Plan (QPAP)reports that the Company has been submitting each month
under Commission Order No.32899.Case No.QWE-T-08-04.
BACKGROUND
Section 271 of the federal Telecommunications Act of 1996 established procedures
for the Company to obtain authorization from the Federal Communications Commission (FCC)
to provide in-region interLATA’and interstate telecommunications services..47 U.S.C.§271.
In particular,Section 271 (c)(2)(B)contained a “competitive checklist”that generally provided
that the Company provide access and interconnection to competitors.Before allowing the
Company to offer telecommunications services in its region,the FCC was also required to find
that allowing the Company to compete in its region against competitors “is consistent with the
public interest,convenience and necessity.”47 U.S.C.§271(d)(3)(C).To ensure continued
compliance with the competitive checklist,the FCC determined that the Company should
develop and implement a “Performance Assurance Plan”(PAP).As this Commission noted in
February 2003,“[the Companyj’s PAP provides specific standards for the Company’s delivery
of services to competitor telecommunications providers and automatic penalties if the standards
are not met.”Notice of Modified Procedure,Case No.USW-T-00-03.2
‘A LATA (local access and transport area)is a geographic area designed by the United States District Court in the
Modification of Final Judgment in the divestiture of AT&T and the Bell Operating Companies (BOCs).The LATAs
were created to facilitate the division of assets between AT&T and the BOCs,and to mark the boundaries within
which the BOCs could transport calls.As approved by the Court,all of the Qwest local exchanges south of the
Salmon River are included in a single LATA,called the Idaho LATA.The eight local exchanges served by Qwest
(formerly Pacific Northwest Bell)in northern Idaho are included in the Spokane LATA.The Coeur d’Alene market
area exchanges served by Verizon Northwest (now Frontier Communications Northwest)are not associated with
either the Spokane or Idaho LATA.
2 The Commission approved a revised QPAP in Order No.32899,Case No.QWE-T-l 3-05.
ORDER NO.33728 1
The QPAP was intended to provide economic incentives (i.e.,penalties)to encourage
the Company to provide non-discriminatory service to competitive local exchange carriers
(CLECs).Order No.32106 at 1.In the event the Company failed to meet the performance
standards in its QPAP,the Company would have to make remedial payments to either the
affected CLEC or to the State of Idaho fund established by the applicable state regulatory
commission.These payments were divided into two self-executing types.First,Tier 1 payments
were made to a particular CLEC if the Company did not meet the service standards when
providing service or access to that CLEC.QPAP §2.1.Second,if the Company failed to meet
certain other service standards that did not directly impact a particular CLEC,the Company was
required to make Tier 2 payments to two accounts established by state commissions.QPAP §
2.1.1;Order No.30461 at 3.Funds from the Tier 2 “special fund”account were used to defray
audit and oversight expenses incurred by this Commission in reviewing Qwest’s Section 271
compliance.The Tier 2 “discretionary fund”account was comprised of remedial payments and
intended to be used for “competitively neutral Idaho telecommunications initiatives.”QPAP §
11.3.4.
In order for the Commission to track and monitor the QPAP performance standards
and payments,the Commission ordered the Company to file monthly QPAP reports with the
Commission.See Order No.32899,Case No.QWE-T-13-05.The Company has filed the
monthly reports since April 2014.
STAFF RECOMMENDATION
After reviewing the Company’s letter,Staff filed a memorandum recommending that
the Company discontinue filing monthly QPAP reports.However,Staff also recommended that
the Company advise Staff in writing if the Company has to make a QPAP Tier 1 payment to a
CLEC because the Company failed to satisfy a QPAP performance standard.Staff asked that the
Company be required to report the nature of the missed performance standard,and the date and
amount of the resulting payment.
Staff noted that,in June 2016,after the Company had not been required to pay any
Tier 2 penalties for a significant length of time,the Commission closed the Tier 2 payment
account.See Commission Order No.33532,Case No.GNR-T-16-04.The Commission then
allocated remaining Tier 2 monies to the Idaho Department of Health and Welfare’s Suicide
ORDER NO.33728 2
Prevention Action Network,and to the E-9 11 emergency dispatch training and certification
program at POST,both competitively neutral Idaho telecommunications initiatives.
While the Company has continued to file monthly QPAP reports,which dealt with
both Tier 1 and Tier 2 standards and penalties,Commission Staff and the Company have
discussed whether the Company should continue to submit those reports now that the
Commission has closed the Tier 2 payment account.As part of these discussions,Staff asked the
Company to explain whether it had made any Tier 1 payments to CLECs in 2016.The Company
explained that,in August of 2016,it paid a significant penalty to a CLEC after it failed to meet a
performance standard.
As the Commission has closed the Tier 2 account and the Company only paid one
Tier 1 penalty in 2016,Staff recommended that the Commission close Case No.PAP-T-14-01
and no longer require the Company to submit monthly Tier 1 and Tier 2 payment reports.
However,as Tier 1 payments still occasionally occur,Staff believes the Company should
continue to alert the Commission to these payments when they occur.Staff thus recommended
that the Commission direct the Company to report Tier 1 payments as they occur.Staff
suggested that the report identify the penalty amount,when the penalty was paid,and what
performance standard was not achieved.Staff believes this reporting requirement will continue
to promote service performance parity from the Company,ensure that network elements are
available to competitors,and promote competition for Idaho consumers.
COMMISSION FINDINGS
Based upon our review of this case,the Commission finds it reasonable and
appropriate to approve CenturyLink’s request to discontinue the filing of its Performance
Assurance Plan reports.However,as Tier 1 payments may still occur,CenturyLink shall report
these Tier 1 payments to the Commission within 30 days of occurrence.The report will identify
the penalty amount,when the penalty was paid,and what performance standard was missed.The
Commission further finds that any reports shall continue to be provided to the Commission,with
reference to Case No.PAP-T-14-01,and notice to Commission Staff.
ORDER
IT IS HEREBY ORDERED that Qwest Corporation dba CenturyLink QC’s request
to discontinue the filing of its Performance Assurance Plan is approved,and Case No.PAP-T
14-0 1 is hereby closed.
ORDER NO.33728 3
IT IS FURTHER ORDERED that CenturyLink shall continue to report Tier 1
payments as they occur according to the terms of this Order.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626,62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March 2017.
ATTEST:
Diane M.Hanian
Commission Secretary
O:PAP-T-14-Olsc
KRI INE RAPER,C MMISSIONERzz
ERIC ANDERSON,COMMISSIONER
PAUL KJEL.PRESIDENT
ORDER NO.33728 4