HomeMy WebLinkAboutprjt991_cc.docCHERI C. COPSEY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0314
Idaho Bar No. 5142
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF THE PROJECT MUTUAL TELEPHONE COOPERATIVE ASSOCIATION, INC. FOR APPROVAL OF ITS PLAN TO IMPLEMENT INTRASTATE, INTRALATA DIALING PARITY. )
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CASE NO. PRJ-T-99-1
COMMISSION STAFF COMMENTS
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COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Cheri C. Copsey, Deputy Attorney General, and submits the following comments for the Commissions consideration in Case No. PRJ-T-99-1 for the dialing parity plans of Project Mutual Telephone Cooperative Association, Inc.
BACKGROUND
Following the implementation of the Telecommunications Act of 1996, many states challenged the jurisdictional authority of the Federal Communications Commission (“FCC”) to implement the Act. In 1997, the Eighth Circuit Court of Appeals held that the FCC had exceeded its authority when it promulgated rules to implement various sections of the Act. Among other things, the Eighth Circuit held that the FCC lacked jurisdiction to promulgate its dialing parity rules 47 CFR §51.205-51.217. The FCC appealed to the United States Supreme Court. On January 25, 1999, the United States Supreme Court reversed, in part, the Eighth Circuit and held, inter alia, that the FCC has jurisdiction to implement the Act’s local competition provisions, including those rules addressing dialing parity. AT&T v. Iowa Utilities Board, 119 S.Ct. 721 (1999).
In response, the FCC issued Order 99-54 revising the schedule for implementation of dialing parity. Order 99-54 established new deadlines for all local exchange carriers (“LECs”) to implement intraLATA dialing parity. Specifically, all local exchange carriers are required to submit dialing parity plans to the respective state commissions by April 22, 1999. State commissions were given until June 22, 1999, to review and approve those plans. Approved intraLATA toll dialing parity plans were directed to be implemented within 30 days of approval.
Toll dialing parity, also referred to as “1 plus equal access” or carrier presubscription, allows a customer to pre-select a carrier for intrastate, intraLATA toll calls and then access his chosen carrier simply by dialing 1 plus the telephone number. Without dialing parity, a customer wishing to use a specific toll carrier may be required to dial a series of numbers before dialing the telephone number. Currently, intrastate, intraLATA toll traffic for the customers of each of these companies is carried by U S WEST Communications, unless a customer dials around to reach a different toll carrier.
On April 22, 1999, Project Mutual Telephone Cooperative Association, Inc. (Project Mutual) filed an Application with the Commission for an Order approving its intraLATA toll dialing parity implementation plan. Project Mutual offers local telephone exchange service in the Idaho exchanges of Minidoka, Norland, Oakley, Paul, and Rupert. While the Idaho Public Utilities Commission has limited jurisdiction over mutual cooperative companies such as Project Mutual, Staff believes FCC Order 99-54 did give the state commissions the authority to review and approve intraLATA toll dialing parity plans within this state.
PROJECT MUTUALS PROPOSAL AND STAFF RECOMMENDATION
Project Mutual has submitted an intraLATA toll dialing parity plan and has indicated that its exchange offers local exchange service within the southern Idaho LATA (see 47 CFR 51.213). Upon implementation of toll dialing parity, customers will be able to presubscribe to a carrier for both their interLATA and intraLATA toll calls. This means that originating customers will be able to dial toll calls without having to use any extra digits or access codes (other than the prefatory 1 or 0). This is often referred to as full 2-PIC capability. In addition, originating customers will continue to be able to use dial-around 101-XXXX to route their specific calls to a carrier other than their presubscribed carrier if they so choose.
A. Implementation Schedule
FCC Order 99-54 requires that intraLATA toll dialing parity plans be submitted to state commissions by April 22, 1999, and approved by those state commissions by June 22, 1999. Those plans are required to be implement(ed) no later than 30 days after the date on which the plan is approved. Project Mutual has proposed the following sequence of events to outline their implementation schedule:
Notification to IXCs July1, 1999
Informational letter sent to customers August 1, 1999
Deadline for PIC change request September 15, 1999
IntraLATA Conversion date September 16, 1999
Free PIC change grace period ends September 15, 1999
Staff Recommendation. Project Mutual will begin this conversion process in July 1999, but will not complete the programmed cut-over until September 16, 1999. Pending a June 22, 1999 Commission approval, the conversion process will follow as outlined above.
Staff believes that the proposed September 16, 1999, cut-over date is adequate. Staff also recommends the final Order be made effective June 22, 1999. Finally, Staff recommends that the Commission exercise its Section 251(f)(2) authority and modify the FCC requirement for a September 16, 1999, cut-over for Project Mutual. Staff asserts that such a modification is necessary for Project Mutual to “avoid imposing a requirement that is technically infeasible.” Modification is clearly “consistent with the public interest, convenience, and necessity.”
B. Notification to IXCs
Under the plan submitted on behalf of Project Mutual, all carriers that currently offer interLATA toll service to the customers in the Project Mutual exchanges will be requested to confirm whether or not they intend to offer intraLATA service. This notification to IXCs will be mailed out July 1, 1999. Any other carrier that requests to offer intraLATA service will be added to the list of available intraLATA carriers.
Staff Recommendation. Staff believes this process and time frame for interexchange carrier notification is adequate and recommends approval.
C. Notification to Customers
On August 1, 1999, a notice will be sent to customers as a bill insert to inform them of the coming opportunity they will have to choose an intraLATA carrier. Project Mutual has proposed that this notification will be competitively neutral and will list the available carrier options.
Those customers who respond to the customer notification before September 15, 1999, will have their intraLATA presubscription choice programmed into the switch on the cut-over date of September 16, 1999. Project Mutuals implementation plan describes a 45-day grace period during which customers can select or change their intraLATA PIC free of charge. Thereafter, each intraLATA PIC change will result in a $5 PIC change fee.
Staff Recommendation. Staff accepts Project Mutuals customer notification process and recommends approval.
D. Existing Customers Who Do Not Actively Choose
In recent conversations with Staff, Project Mutual has indicated that Project Mutual is and will be the default intraLATA toll carrier for those customers who do not actively choose a carrier during the selection period. Project Mutuals customer notification explains that this will be the case.
Staff Recommendation. There are other options for dealing with those customers who do not make a choice. Because the FCC has not clearly defined the requirements regarding existing customers who do not affirmatively choose a carrier, (see FCC Order No. 99-54, footnote 22), Staff believes that, given the customers opportunity to choose and the LEC status that Project Mutual Cooperative enjoys, Project Mutuals proposal is adequate and recommends approval. It is also relatively less confusing than some of the other options listed.
E. New Customers
Project Mutual proposes that new customers who do not designate an intraLATA toll carrier will have to dial around using 101-XXXX carrier access codes until they choose their presubscribed carrier(s).
Staff Recommendation. Staff recommends the Commission approve this proposed plan.
F. Business Office Practices
With regard to the processing of intraLATA PIC requests, Project Mutual’s plan states that its employees will comport themselves in a “competitively neutral manner” and that all requests for intraLATA PIC changes will be processed without undue delay.
Staff Recommendation. Staff recommends the Commission approve Project Mutual’s plan and, in addition, recommends that it be required to process PIC change requests within 5 business days.
G. Cost Recovery
Project Mutual proposes that incremental expenses relating to toll dialing parity implementation will be recovered through a one-time surcharge imposed on the participating intraLATA IXC companies.
Staff Recommendation. Staff recommends the Commission generally approve Project Mutuals proposed method of recovery. Because dialing parity creates equal access to intraLATA toll, Staff believes that cost recovery aimed at those companies who participate in that market is reasonable. Staff cannot ascertain what the amounts will be until those costs are derived and submitted by the Company in a separate filing. Once that data is submitted, Staff will review the cost recovery data to determine its appropriateness. Staff does not believe the intraLATA dialing parity costs will be very significant.
H. Recovery of Waived Charges
Although Project Mutuals proposal does not address it, Staff is of the opinion that the LECs should be allowed to include in their recovery the waived PIC change charges during the free PIC period via the issuance of a one time bulk bill to each participating carrier. This bill will assess the $5.00 PIC change charge for the total number of lines changed to those carriers’ PIC. The competing interexchange carriers will experience a growth in their respective customer base thereby allowing those one-time charges to be recovered over time. Staff recommends that the IXCs not pass those fees on to the end user.
Respectfully submitted this day of May 1999.
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Cheri C. Copsey
Deputy Attorney General
Technical Staff: Doug Cooley
Consumer Staff: Carol Cooper
STAFF COMMENTS 1 MAY 18, 1999