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Home My WebLink About20031224Comments.pdfWELDON B. STUTZMAN DEPUTY ATTORNEY GENERAL IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720':0074 (208) 334-0318 IDAHO BAR NO. 3283 iLED RECEIVED znO3 DEC 24 Ai"1 9: i "j f'Ji3liC UTILI r \ES COr"~MISSION 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 DETERMINING PRICES FOR UNBUNDLES NETWORK ELEMENTS (UNE) IN QWEST CORPORATION' STATEMENT OF GENERALLY AVAILABLE TERMS (SGA T). CASE NO. QWE-Ol- COMMENTS OF THE COMMISSION STAFF COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, in response to the Notice of Request for Approval of Negotiated Rates and Notice of Modified Procedure in Case No. QWE-01-11 issued on December 4 2003, and submits the following comments. On June 12 2001 the Commission approved a Motion by Qwest Corporation for a procedural Order to adopt a proceeding to establish prices for Qwest's unbundled network elements (UNEs). The federal Telecommunications Act of 1996 provides for State Commissions to set non-discriminatory prices for UNEs, based on a total element long-run incremental cost (TELRIC) methodology. The Commission approved Qwest's Motion in Order No. 28748 , and established a proceeding, which included informal workshops to facilitate discussions and, if possible, agreement on rates for specific UNEs. An initial workshop convened on June 23 2001 STAFF COMMENTS DECEMBER 24, 2003 and since the workshop the Commission Staff and Qwest continued their discussions on cost model results and possible UNE prices. On November 12, 2003 , Qwest filed a Motion for Approval of Negotiated Rates. Qwest states in its Motion that, as the informal workshop process continued, it became clear that only a portion of the UNEs that are reflected in Qwest's Statement of Generally Available Terms (SGAT) were the subject of significant controversy, mainly the UNEs most often purchased by competing carriers and that make up the product known as unbundled network element platform, or UNE-P. Qwest states that for the majority of the other UNEs, those that are not controversial, Qwest and Staff were able to reach a negotiated price founded on Qwest's cost studies, but which were modified by changing inputs in the models or, in some cases, were reduced to bring them closer to results ordered in other Qwest jurisdictions. Qwest identified the negotiated rates for the specific UNEs in Attachment A filed with its Motion. Qwest has asked the Commission to approve the UNE rates identified in Attachment A to its Motion and Staff recommends approval of the rates for the specific UNEs identified in Attachment A. The proceedings through which these rates were developed were properly noticed and open to all parties, although, after the initial workshop, the only parties to participate in the lengthy negotiations were Staff and Qwest. Staff agrees with Qwest's description of the specific UNEs identified in Attachment A as being "not controversial". They do not generate controversy because they are typically products that are either not frequently ordered, or products with rates that are consistent with the rates charged by Qwest and other Bell Operating Companies in other states. All of these rates were based on a total element long-run incremental cost (TELRIC) methodology, using inputs to the models that Staff considers to be within an acceptable range of reasonableness. Staff has compared these rates to those that have been approved by Commissions in other states served by Qwest and any significant differences in the rates can be explained by conditions that can reasonably be expected to lead to differences in Qwest's costs to provide the services. Staff believes approval of these rates is in the public interest, as it will allow the Commission and Qwest to use their respective finite resources to concentrate on the remaining elements and products, which are more significant in terms of assisting the development of competition in Idaho. STAFF COMMENTS DECEMBER 24, 2003 Respectfully submitted this '2- q.ft..- Technical Staff: Wayne Hart WS:WH.uumisc/comments/qwetOl, 11 wswh STAFF COMMENTS day of December 2003. Weldon B. Stutzman Deputy Attorney General DECEMBER 24, 2003 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 24TH DAY OF DECEMBER 2003 SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. QWE-01-, BY MAILING A COpy THEREOF, POSTAGE PREPAID TO THE FOLLOWING: MARY S HOBSON STOEL RIVES LLP STE 1900 101 S CAPITAL BLVD BOISE ID 83702-5958 MORGAN W RICHARDS JR MOFFATT THOMAS ET AL PO BOX 829 BOISE ID 83701-0829 TIMOTHY H PETERS ELECTRIC LIGHTWAVE INC 4400 NE 77TH AVE VANCOUVER W A 98662 RAY HENDERSHOT GVNW INC/ MANAGEMENT PO BOX 25969 COLORADO SPRINGS CO 80936 LISE K STROM DAVIS WRIGHT TREMAINE LLP 1300 SW 5TH AVE SUITE 2300 PORTLAND OR 97201 CONLEY WARD GIVENS PURSLEY LLP 277 N 6TH ST, SUITE 200 BOISE ID 83702 MARY B TRIBBY DAVID S HARMON AT &T COMMUNICATIONS 1875 LAWRENCE ST SUITE 1401 DENVER CO 80202 ~~. SECRETARY CERTIFICATE OF SERVICE