20030218Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKIN G FILE
FROM:JOE CUSICK
DATE:FEBRUARY 18, 2003
RE:QWEST PROPOSAL FOR UPGRADING FACILITIES IN SOUTHERN
IDAHO THROUGH THE USE OF REVENUE SHARING FUNDS. CASE
NO. QWE-03-04.
BACKGROUND
On December 30, 2002, Qwest filed a proposal for the disposition of funds generated
from the S WEST Revenue Sharing Program. In its letter, the Company proposes to match the
approximately $4 million remaining from the Revenue Sharing Program for the purpose of
upgrading outside plant facilities throughout the southern Idaho area. Qwest proposes to use the
funds for four components:
1. Replacement of lead sheath cabling in the local exchange network in selected
wire centers.
2. Replacement or rehabilitation of air core cabling in the local exchange network
in selected wire centers.
3. Replacement of control points or access points (i.e. terminal boxes or
enclosures) in selected wire centers.
4. Replacement of Anaconda analog carrier systems across southern Idaho.
These proposed improvements represent areas that experience higher incidents of trouble
reports from customers. The Company believes that implementation of this program will result
in improved service quality and has proposed this program take place over a three-year period.
DECISION MEMORANDUM FEBRUARY 18 2003
On January 17, 2003, Qwest provided additional information regarding the proposal and the
specific improvements it recommends.
On January 24 2003, the Commission issued a Notice of Modified Procedure and
established a twenty-one day comment period, ending February 14, 2003, to allow interested
persons or parties an opportunity to comment on this matter.
SUMMARY OF COMMENTS
Owest Comments - In support of its proposal, Qwest points out that Title 61 customers will
realize improved service functionality and reliability sooner than otherwise as a result of the plant
replacements. The Company believes its proposal will protect Idaho jobs and provide a lasting
benefit while maintaining competitive neutrality.
Staff Comments - Staff generally supports Qwest's proposal to use Revenue Sharing funds
to improve service for Title 61 customers. Staff acknowledges that the proposed improvements
would be made much sooner than otherwise under Qwest's proposal and, given Qwest's matching
dollars, that customers would receive $8 million in improvements for essentially half the price.
However, Staff is concerned that some of the projects will be expensive and benefit few Title 61
customers. Staff recommends that projects such as the Anaconda systems be pushed to later in the
project period and that other projects be reviewed quarterly to allow the Commission to consider
cost effectiveness and alternatives.
Citizens Telecommunications Company Comments - Citizens believes Qwest's proposal is
an inappropriate use of Revenue Sharing funds because other Idaho companies have made similar
improvements to their networks without the benefit of special funding. Citizens goes on to propose
that the Revenue Sharing funds be used to build a north-south fiber route between Riggins and
Grangeville as was previously considered in Case No. USW-99-25/CTC-99-
Comments were received in support of Qwest' s proposal from network engineering
directors at Qwest and from Idaho members of the Communications Workers of America union.
Three Qwest customers submitted comments that, to the extent it would improve their service
supported the current proposal.
DECISION MEMORANDUM FEBRUARY 18 2003
COMMISSION DECISION
Does the Commission wish to approve Qwest's proposal for network improvements
using Revenue Sharing funds as submitted or with modifications?
Joe
DECISION MEMORANDUM FEBRUARY 18 2003