20031103Application.pdf

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Mary S. Hobson (ISB #2142)
Stoel Rives LLP
101 South Capitol Boulevard - Suite 1900
Boise, ill 83702
Telephone: [phone]
Facsimile: [phone]
mshobson~stoel.com
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UTILITiES CO ISSJON
Adam L. Sherr (WSBA #25291)
Qwest
1600 ih Avenue - Room 3206
Seattle, W A 98191
Telephone: [phone]
Facsimile: [phone]
asherr~qwest.com
Attorneys for Qwest Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF QWEST
CORPORATION'S REVISIONS TO ITS
STATEMENT OF GENERALLY
AVAILABLE TERMS AND CONDITIONS
(SGAT) PURSUANT TO 47 U.c. ~ 252(1)
DOCKET No. cfYaI f!- T- &3 ~ :J.
REQUEST TO OPEN NEW DOCKET
AND SUBMISSION OF REVISED
EXHIBIT K
(OP-5A Amendment)
Qwest Corporation ("Qwest") asks that the Idaho Public Utilities Commission
Commission ) open a new document for the purpose of receiving, on an ongoing basis
revisions to Qwest's Statement of Generally Available Terms and Conditions (SGAT),
providing notice of said changes to interested parties, and authorizing corresponding
amendments to affected interconnection agreements, where appropriate.
BACKGROUND
1. On June 10 2000, Qwest's predecessor1 filed an SGAT with the
Commission seeking either that the Commission approve the SGAT under 47 U.c. ~
252 (f), or allow the SGAT to go into effect without approval after 60 days under 47
C. ~ 252 (f)(3). That matter was given docket number USW-00-15. Thereafter
To facilitate the narrative Qwest will refer to Qwest Corporation and its predecessor, U S WEST
Communications, Inc. as simply "Qwest.
REQUEST TO OPEN NEW DOCKET AND SUBMISSION
OF REVISED EXHIBIT K (OP-SA Amendment) - Page I
Boise-163574.2 0029164-00004
Qwest's SGAT was allowed to go into effect without Commission approval. Over the
course of the months and years that followed, Qwest filed several revised versions of its
SGAT in that docket, all of which went into effect.2. Although docket number USW - T -00-15 has not been officially closed by
the Commission, no action has been taken in it since October 2002. Meanwhile, Qwest
has received interLATA long distance relief under 47 US.C. ~ 271 and the priorities of
many of the interested persons who first participated in the docket have changed.
Furthermore, as will be explained below, a new industry forum has arisen to
accommodate discussion of potential changes to Qwest's SGAT. As a result, Qwest
submits that it is appropriate for the Commission to close docket USW-00-15 and open
a new docket for the submission of any subsequent revisions to Qwest's Idaho SGAT.
3. The need for a continuing docket to collect and memorialize Qwest's
SGAT arises because the SGAT continues to undergo changes that reflect new
understandings between Qwest and its wholesale customers and other changes in the
industry.4. One such change has already been presented to the Commission through
Advice No. SGAT-03-2 dated October 2 2003. That change amended Exhibit B to the
SGAT to include revised Performance Indicator Definition ("PID") OP-, which
amendment was unanimously agreed to by the participants of the Long Term PID
Administration ("LTPA") in August of this year. Qwest proposes that should the
Commission agree to open a new docket, all subsequent SGA T changes will be filed
therein.
REVISED EXHIBIT K
5. With this filing Qwest submits a revised version of its Qwest Performance
Assurance Plan ("QP AP") for Idaho.2 This revision modifies the QP AP to reflect
changes stemming from the L TP A. The revised QP AP is attached to this filing as
Attachment 1.
6. As indicated in paragraph 4, a revised version of Exhibit B to the SGAT
(Version 5.0(a)) was previously submitted to the Commission under an advice letter
pursuant to Section 20 of the SGAT. Version 5.0(a) reflected the modification ofOP-
pursuant to agreement reached in the L TP
7. The modifications to OP-5 were negotiated and agreed to with
participating CLECs and State Commission State Staffs in the LTPA collaborative forum.
Discussions began in December, 2002. After 8 months and approximately 22 conference
calls, unanimous agreement was reached on August 6, 2003 , resulting in a revised OP-
The QP AP can also be found as Exhibit K to Qwest's SGA
Attachment I is a "clean" version ofrevised Exhibit K. Attachment 2 reflects the changes in
Exhibit K in legislative format.
REQUEST TO OPEN NEW DOCKET AND SUBMISSION
OF REVISED EXHIBIT K (OP-SA Amendment) - Page 2
Boise-163574.2 0029164-00004
now entitled New Service Quality 4 The revised OP-5 includes four sub-measures, A
, T and R. Similar to the previous OP-, sub-measure A to the revised OP-5 measures
the percentage of repair trouble reports, but with more exacting matches of trouble
reports to service orders. Specifically, the reporting of the measurement changed from
reporting a rolling two-month average of results to the new method where each month is
now reported separately, one month in arrears. This change allows any trouble reports
that occur within thirty (30) days of completion of the service order to be matched with
the original service order and to be reported in a more timely fashion.
The additional sub-measures (OP-, T and R) are diagnostic and focus on
provisioning trouble reports, repair trouble reports or both on a combined basis. Because
these new sub-measures are diagnostic, they do not affect the PAP.
8. With this submission, and pursuant to section 16 of the Qwest
Performance Assurance Plan (QPAP), Qwest has modified Exhibit K, Attachment 1 , to
reflect the change from OP-5 to OP-5A. The new OP-5A measurement will become
effective beginning with November 2003 data, reported in January, 2004.9. Qwest makes this submission in this docket and in another requested
docket relating to ongoing changes to the Idaho QP AP ("the QP AP docket"). By making
this submission in the QPAP docket, pursuant to section 16, OP-, as modified in
L TP A, shall be applied to its QP AP. By this submission in the present docket pursuant to
section 16 of the QP AP Exhibit K, as revised and modified, shall be applied to Qwest's
Third Revised SGAT.
10. Pursuant to section 16 of the QPAP, the changes reflected on Attachment
1 shall automatically apply to and modify the SGAT and existing interconnection
agreements that currently contain Exhibit K, the QPAP, as an exhibit.
Respectfully submitted this ~-aay of October, 2003.
AIW~/'-L---
Mary S. IffStoel Rives, LLP
Adam Sherr
Qwest Service Corporation
The existing OP-5 is titled New Service Installation Quality
REQUEST TO OPEN NEW DOCKET AND SUBMISSION
OF REVISED EXHIBIT K (OP-SA Amendment) - Page 3
Boise-163574,2 0029164-00004
CERTIFICATE OF SERVICE
I hereby certify that on this a'~ay of October, 2003 , I served the foregoing
REQUEST TO OPEN NEW DOCKET AND SUBMISSION OF REVISED
EXHIBIT K (OP-SA AMENDMENT) as follows:
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ill 83720-0074
Phone: [phone]
Fax: [phone]
11 ewell~puc. state.id.
Hand Delivery
U. S. Mail
Overnight Delivery
Facsimile
Email
Weldon Stutzman
Deputy Attorney General
Idaho Public Utilities Commission
472 West Washington Street
O. Box 83720
Boise, ill 83702
Phone: [phone]
Fax: [phone]
Hand Delivery
U. S. Mail
Overnight Delivery
Facsimile
Email
~~~
REQUEST TO OPEN NEW DOCKET AND SUBMISSION
OF REVISED EXHIBIT K (OP-5A Amendment) - Page 4
Boise-163575.2 0029164-00004
Exhibit K
PERFORMANCE ASSURANCE PLAN
Introduction
As set forth in this Agreement, Owest and CLEC voluntarily agree to the
terms of the following Performance Assurance Plan ("PAP"), prepared in conjunction
with Owest's application for approval under Section 271 of the Telecommunications
Act of 1996 (the "Act") to offer in-region long distance service.
Plan Structure
The PAP is a two-tiered , self-executing remedy plan. CLEC shall be provided
with Tier 1 payments if, as applicable , Owest does not provide parity between the
service it provides to CLEC and that which it provides to its own retail customers, orOwest fails to meet applicable benchmarks.
1 As specified in section 7., if Owest fails to meet parity and benchmark
standards on an aggregate CLEC basis, Owest shall make Tier 2 payments to a
Fund established by the state regulatory commission or, if required by existing law, to
the state general fund.
As specified in sections 6.0 and 7.0 and Attachments 1 and 2 , payment is
generally on a per occurrence basis, (i.e., a set dollar payment times the number of
non-conforming service events). For the performance measurements which do not
lend themselves to per occurrence payment, payment is on a per measurementbasis, (i.e., a set dollar payment). The level of payment also depends upon thenumber of consecutive months of non-conforming performance , (i.e., an escalating
payment the longer the duration of non-conforming performance).
Owest shall be in conformance with the parity standard when service Owest
provides to CLEC is equivalent to that which it provides to its retail customers. ThePAP relies upon statistical scoring to determine whether any difference between
CLEC and Owest performance results is significant, that is , not attributable to simplerandom variation. Statistical parity shall exist when performance results for CLEC
and for Owest retail analogue result in a z-value that is no greater than the critical z-
values listed in the Critical Z-Statistical Table in section 5.
2.4 For performance measurements that have no Owest retail analogue, agreed
upon benchmarks shall be used. Benchmarks shall be evaluated using a "stare and
compare" method. For example, if the benchmark is for a particular performance
measurement is 95% or better, Owest performance results must be at least 95% tomeet the benchmark. Percentage benchmarks will be adjusted to round the
allowable number of misses up or down to the closest integer, except when a
benchmark standard and low CLEC volume are such that a 100% performance result
would be required to meet the standard and has not been attained. In such a
Qwest Idaho SGA T Third Revised Exhibit K
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2nd Revision2003 - 1-
M3rch 120ctober 31
ATTACHMENT
Exhibit K
situation , the determination of whether Owest meets or fails the benchmark standard
will be made using performance results for the month in question, plus a sufficientnumber of consecutive months so that a 100% performance result would not be
required to meet the standard. For purposes of section 6., a meet or fail determinedby this procedure shall count as a single month.
Performance Measurements
The performance measurements included in the PAP are set forth inAttachment 1. Each performance measurement identified is defined in thePerformance Indicator Definitions ("PI Ds ) developed in the ROG OperationalSupport System ("OSS") collaborative, and which are included in the SGA T at ExhibitB. The measurements have been designated as Tier 1 , Tier 2 , or both Tier 1 andTier 2 and given a High , Medium, or Low designation.
Statistical Measurement
Owest uses a statistical test, namely the modified "test " for evaluating thedifference between two means (Le., Owest and CLEC service or repair intervals) ortwo percentages (e., Owest and GLEG proportions), to determine whether a parity
condition exists between the results for Owest and the GLEG(s). The modified z-tests shall be applicable if the number of data points are greater than 30 for a given
measurement. For testing measurements for which the number of data points are 30
or less , Owest will use a permutation test to determine the statistical significance of
the difference between Owest and GLEG.
Owest shall be in conformance when the monthly performance results forparity measurements (whether in the form of means , percents, or proportions and atthe equivalent level of disaggregation) are such that the calculated z-test statisticsare not greater than the critical z-values as listed in Table 1 , section 5.
Owest shall be in conformance with benchmark meaSUrfiments when themonthly performance result equals or exceeds the benchmark, if a higher valuemeans better performance, and when the monthly performance result equals or isless than the benchmark if a lower value means better performatlce.
, The formula for determining parity using the modified z-test is:
z = DIFF / O'DIFF
Where:
DIFF = MQwest - MCLEC
MQWEST = Owest average or proportion
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 2-March 120ctober 31
Exhibit K
MCLEC = CLEC average or proportion
crDIFF = square root Dcr awest (1/ n CLEC + 1/ n Owest))
(lOwest = calculated variance for awest
nOwest = number of observations or samples used in awestmeasurement
nCLEC = number of observations or samples used in CLECmeasurement
The modified z-tests will be applied to reported parity measurements that containmore than 30 data points.
In calculating the difference between awest and CLEC performance , the aboveformula applies when a larger awest value indicates a better level of performance. Incases where a smaller awest value indicates a higher level of performance , the orderis reversed , Le., MCLEC - MOWEST.
For parity measurements where the number of data points is 30 or lessawest will apply a permutation test to test for statistical significance. Permutationanalysis will be applied to calculate the z-statistic using the following logic:
Calculate the modified z-statistic for the actual arrangement of the data
Pool and mix the CLEC and awest data sets
Perform the following 1000 times:
Randomly subdivide the pooled data sets into two pools, one the samesize as the original CLEC data set (nCLEC) and one reflecting theremaining data points , and one reflecting the remaining data points
(which is equal to the size of the original awest data set or nOWEST).Compute and store the modified z-test score (Zs) for this sample.Count the number of times the z-statistic for a permutation of the data
greater than the actual modified z-statistic
Compute the fraction of permutations for which the statistic for the rearranged
data is greater than the statistic for the actual samples
If the fraction is greater than a, the significance level of the test, the hypothesis of no
. difference is not rejected, and the test is passed. The shall be .05 when the criticalz value is 1.645 and .15 when the critical z value is 1.04.
Critical Z-Value
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 3-
M:lrch 120ctober 31
Exhibit K
The following table shall be used to determine the critical z-value that is
referred to in section 6.0. It is based on the monthly business volume of the CLECfor the particular performance measurements for which statistic testing is being
performed.
TABLE 1: CRITICALZ-VALUE
CLEC volume LIS Trunks UDITs All Other
(Sample size)Resale, UBL-DS1 and DS-
04*645
11-150 645 645
151-300
301-600
601-3000
3001 and above
The 1.04 applies for individual month testing for performance measurements
involving LIS trunks and DS-1 and DS-3 that are UDITs , Resale , or Unbundled
Loops. The performance measurements are OP-3d/e, OP-4d/e, OP-5g, OP-4/5,
MR-5a/b, MR-7d/e, and MR-
For purposes of determining consecutive month misses, 1.645 shall be used. Where
performance measurements disaggregate to zone 1 and zone 2 , the zones shall be
combined for purposes of statistical testing.
Tier 1 Payments to CLEC
Tier 1 payments to CLEC shall be made solely fpr the performance
measurements designated as Tier 1 on Attachment 1. The payment amount for non-
conforming service varies depending upon the designation of performance
measurements as High, Medium, and Low and the duration of the non-conforming
service condition as described below. Non-conforming service is defined in section
Determination of Non-Conforming Measurements: The number of
performance measurements that are determined to be Fran-conforming and,
therefore, eligible for Tier 1 payments, are limited according to the critical z-value
shown in Table 1, section 5.0. The critical z-values are the statistical standard that
determines for each CLEC performance measurement whether Owest has met
parity. The critical z-value is selected from Table 1 according to the monthly CLEC
volume for the performance measurement. For instance, if the CLEC sample size for
that month is 100, the critical z-value is 1.645 for the statistical testing of that parity
performance measurement.
Owest Idaho SGA T Third Revised Exhibit K, -1- 2nd Revision
2003 - 4-
M3rch 120ctober 31
Exhibit K
Determination of the Amount of Payment: Tier 1 payments to GLEG, exceptas provided for in sections 6.3 and 10.0, are calculated and paid monthly based onthe number of performance measurements exceeding the critical z-value. Payments
will be made on either a per occurrence or per measurement basis, depending uponthe performance measurement, using the dollar amounts specified in Table 2 below.
The dollar amounts vary depending upon whether the performance measurement is
designated High, Medium, or Low and escalate depending upon the number ofconsecutive months for which Qwest has not met the standard for the particularmeasu rement
The escalation of payments for consecutive months of non-conformingservice will be matched month for month with de-escalation of payments for every
month of conforming service. For example, if Qwest has four consecutive monthlymisses" it will make payments that escalate from month 1 to month 4 as shown inTable 2. If, in the next month , service meets the standard Qwest makes nopayment A payment "indicator" de-escalates down from month 4 to month 3. Qwest misses the following month , it will make payment at the month 3 level of Table
2 because that is where the payment "indicator" presently sits. If Qwest misses againthe following month , it will make payments that escalate back to the month 4 level.
The payment level will de-escalate back to the original month 1 level only uponconforming service sufficient to move the payment "indicator" back to the month level.
For those performance measurements listed on Attachment 2 Performance Measurements Subject to Per Measurement Gaps " payment to aGLEC in a single month shall not exceed the amount listed in Table 2 below for the
Per Measurement" category. For those performance measurements listed onAttachment 2 as "Performance Measurements Subject to Per MeasurementPayments" payment to a GLEC will be the amount set forth in Table 2 below under
the section labeled "per measurement"
TABLE 2: TIER-1 PAYMENTS TO CLEC
Per Occurrence
Measurement Group Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
and each
following
monthHigh$150 $250 $500 $600.$700 $800Medium$ 75 $150 $300 $400 $500 $600Low$ 25 $ 50 $100 $200 $300 $400PerMeasurement
Cap
Measurement Group Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
and each
following
month
Owest Idaho SGA T Third Revised Exhibit K
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2nd Revision2003 - 5-
March 120ct ber 31
Exhibit K
HiQh $25 000 $50 000 $75,000 $100,000 $125 000 $150 000
Medium $10 000 $20 000 $30,000 $ 40 000 $ 50 000 $ 60,000
Low $ 5 000 $10 000 $15,000 $20,000 $ 25 000 $ 30 000
For collocation , CP-2 and GP-4 performance measurements shall be relied
upon for delineation of collocation business rules. For purposes of calculating Tier
payments, collocation jobs and collocation feasibility studies that are later than the
due date will have a per day payment applied according to Table 3. The per day
payment will be applied to any collocation job in which the feasibility study is provided
or the collocation installation is completed later than the scheduled date. The
calculation of the payment amount will be performed by applying the per day
payment amounts as specified in Table 3. Thus, for days 1 through 10 , the payment
is $150 per day. For days 11 through 20 , the payment is $300 per day and so on.
TABLE 3: TIER-1 COLLOCATION PAYMENTS TO CLECS
Days Late Completion Date Feasibility Study
1 to 10 days $150/day $45/day
11 to 20 days $300/day $90/day
21 to 30 days $450/day $135/day
31 to 40 days $600/day $180/day
More than 40 days 000/day $300/day
6.4 A minimum payment calculation shall be performed at the end of each year
for each GLEG with annual order volumes of no more than 1 200. The payment shall
be calculated by multiplying $2 000 by the number of months in which at least one
payment was due to the CLEC. To the extent that the actual GLEG payment for theyear is less than the product of the preceding calculation , Owest shall make an
additional payment equal to the difference.
Tier 2 Payments to the State
Payments to the State shall be limited to the performance measurements
designated in section 7.4 for Tier 2 per measurement payments and in Attachment
for per occurrence payments and which have at least 10 data points each month for
the period payments are being calculated. Similar to the Tier 1 structure, Tier 2
measurements are categorized as High, Medium, and Low and the amount of
payments for non-conformance varies according to this categorization.
Determination of Non-Conforming Measurements: The determination of non-
conformance will be based upon the aggregate of all CLEC data for each Tier 2
performance measurement. Non-conforming service is defined in section 4.2 (for
parity measurements) and 4.3 (for benchmark measurements), except that a 1.645critical z-value shall be used for Tier 2 parity measurements that have Tier
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 6-
M3rch 120ctober 31
Exhibit K
counterparts. The critical z-value is the statistical standard that determines for each
performance measurement whether Owest has met parity.
Determination of the Amount of Payment: Except as provided in section 7.4Tier 2 payments are calculated and paid monthly based on the number performance measurements failing performance standards for a third consecutivemonth, or if two out of three consecutive months in the 12 month period have beenmissed, the second consecutive month for Tier 2 measurements with Tier counterparts. For Tier 2 measurements that do not have Tier 1 counterpartspayments are calculated and paid monthly based on the number of performancemeasurements exceeding the critical z-values, identified in section 5., in any single
month. Payment will be made on either a per occurrence or per measurement basis
whichever is applicable to the performance measurement, using the dollar amountsspecified in Table 4 or Table 5 below. Except as provided in section 7.4 , the dollaramounts vary depending upon whether the performance measurement is designated
High, Medium , or Low.
For those Tier 2 measurements listed on Attachment 2 as "PerformanceMeasurements Subject to Per Measurement Caps " payment to the State in a singlemonth shall not exceed the amount listed in Table 4 for the "Per Measurement"
category .
TABLE 4: TIER-2 PAYMENTS TO STATE FUNDS
Per Occurrence
Measurement Group
High
$500
Medium
$300
Low
$200
Per Measurement/Ca
Measurement Grou
Hi h
Medium
Low
$75 000
$30,000
$20,000
7.4 Performance Measurements Subject to Per Measurement Payment:The
following Tier 2 performance measurements shall have their performance resultsmeasured on a region-wide (14 state) basis. Failure to meet the performancestandard, therefore, will result in a per measurement payment in each of the Owestin-region 14 states adopting this PAP. The performance measurements are:
GA-1: Gateway.Avaiiability - IMA-GUI
GA-2: Gateway Availability - IMA-EDI
GA-3: Gateway Availability - EB-
GA-4: System Availability EXACT
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 7-March 120ctobeL31
Exhibit K
GA-6: Gateway Availability - GUI-RepairPO-1: Pre-Order/Order Response Times
OP-2: Call Answered within Twenty Seconds Interconnect ProvisioningCenter
MR-2: Calls Answered within Twenty Seconds -Interconnect Repair Center
GA-1 has three sub-measurements: GA-, GA-, and GA-1C. PO-1 shall have
two sub-measurements: PO-1 A and PO-1 B. PO-1 A and PO-1 B shall have theirtransaction types aggregated together. PO-20 shall have two productdisaggregations - Resale POTS / UNE-P (POTS) and Unbundled Loops (Analog and
Non-Loaded 2-Wire).
For these measurements , Owest will make a Tier 2 payment based upon monthly
performance results according to Table 5: Tier 2 Per Measurement Payments to
State Funds.
TABLE 5: TIER-2 PER MEASUREMENT PAYMENTS TO STATE FUNDS
Measuremen Performance State Payment 14 State Payment
GA-1 ,3,4,1 % or lower 000 $14 000
~1% to 3%$10 000 $140 000
~3% to 5%$20 000 $280 000
~5%$30 000 $420 000
PO-2 sec. Or less 000 $14 000
sec.000 $70 000
sec.
~5 sec. to 10 $10 000 $140 000
sec.
~1 0 sec.$15 000 $210 000
OP-2/MR-1 % or lower 000 $14 000
~1% to 3%$5,000 $70 000
~3% to 5%$10,000 $140 000
~5%$15 000 $21'0,000
PO-
Resale 1 % or lower $500 $7,000
POTS /
UNE-~1% to 3%500 $35,000
(POTS)
~3% to 5%$5,000 $70 000
~5%500 $105,000
- Unbundled 1 % or lower $500 000
Loops
(Analog ~1% to 3%$2,500 $35,000
and 2-Wire
Non-~3% to 5%000 $70,000
awest Idaho SGA T Third Revised Exhibit K
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2nd Revision
2003 - 8-
March 120ctober 31
Exhibit K
I Loaded)I $105 000I ~5%I $7 500
Step by Step Calculation of Monthly Tier 1 Payments to CLEC
Application of the Critical Z-Values: Owest shall identify the Tier 1 parityperformance measurements that measure the service provided to CLEC by Owest for
the month in question and the critical z-value from Table 1 in section 5.0 that shall be
used for purposes of statistical testing for each particular performance measurement.
The statistical testing procedures described in section 4.0 shall be applied. For the
purpose of determining the critical z-values , each disaggregated category of a
performance measurement is treated as a separate sub-measurement. The critical
z-value to be applied is determined by the CLEC volume at each level of
disaggregation or sub-measurement.
Performance Measurements for which Tier 1 Payment is Per Occurrence:
Performance Measurements that are Averages or Means:
1 Step 1: For each performance measurement, the average or the mean that
would yield the critical z-value shall be calculated. The same denominator as the one
used in calculating the z-statistic for the measurement shall be used. (Forbenchmark measurements , the benchmark value shall be used.
2 Step 2: The percentage differences between the actual averages and the
calculated averages shall be calculated. The calculation is % diff = (CLEC result
Calculated Value)/Calculated Value. The percent difference shall be capped at a
maximum of 100%. In all calculations of percent differences in sections 8.0 and 9.
the calculated percent differences is capped at 100%.
2 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the percentage calculated in the previous step and the peroccurrence dollar amounts from the Tier 1 Payment Table shall determine the
payment to the CLEC for each non-conforming performance measurement.
Performance Measurements that are Percentages:
1 Step 1: For each performance measurement, the percentage that would yield
the critical z-value shall be calculated. The same denominator as the one used in
calculating the z- statistic for the measurement shall be used. (For benchmarkmeasurements, the benchmark value shall be used.
2 Step 2: The difference between the actual percentages for the CLEC and the
calculated percentages shall be determined.
Qwest Idaho SGA T Third Revised Exhibit K
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2nd Revision
2003 - 9-
M3rch 120ctober 31
Exhibit K
3 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference in percentage calculated in the previous step,
and the per occurrence dollar amount taken from the Tier 1 Payment Table, to
determine the payment to the GLEG for each non-conforming performance
measu rement.
Performance Measurements that are Ratios or Proportions:
1 Step 1: For each performance measurement the ratio that would yield the
critical z-value shall be calculated. The same denominator as the one used in
calculating the z-statistic for the measurement shall be used. (For benchmark
measurements, the benchmark value shall be used.
2 Step 2: The absolute difference between the actual rate for the GLEG and
the calculated rate shall be determined.
3 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference calculated in the previous step, and the per
occurrence dollar amount taken from the Tier 1 Payment Table, to determine the
payment to the GLEG for each non-conforming performance measurement.
Performance Measurements for which Tier 1 Payment is Per Measure:
For each performance measurement where Qwest fails to meet the standard,
the payment to the GLEC shall be the dollar amount shown on the "per measure
portion of Table 2: Tier 1 Payments to GLEG.
Step by Step Calculation of Monthly Tier 2 Payments to State Funds
Application of the Critical Z-Value: Qwest shall identify the Tier 2 parityperformance measurements that measure the service provided by Qwest to allCLECs for the month in question. The statistical testing procedures described
section 4.0 shall be applied , except that a 1.645 critical z-value shall be used for Tier
parity measurements that have Tier 1 counterparts For Tier 2 parity
measurements that do not have Tier 1 counterparts, the statistical testing procedures
described section 4.0 shall be applied using the critical z-value~ identified in section
2" To determine if Tier 2 payments for performance measurements listed on
Attachment 1 shall be made in the current month, the 'following shall be determined.
For Tier 2 measurements that have Tier 1 counterparts, it shall be determined
whether Qwest missed the performance standard for three consecutive months, or if
Qwest has missed the standard in any two out of three consecutive months for the 12
month period and for an additional two consecutive months. For Tier 2
measurements that do not have Tier 1 counterparts, it shall be determined whether
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision
2003 - 1 0-
M3rch 120ctober 31
Exhibit K
Qwest missed the performance standard for single month. If any of these
conditions are met and there are at least 10 data points for the measurement in each
month, a Tier 2 payment will be calculated and paid as described below and will
continue in each succeeding month until Qwest's performance meets the applicable
standard. For Tier 2 measures that have Tier 1 counterparts, the most recent three
months of nonconforming performance data that results in payment liability shall be
averaged to determine payment.
Performance Measurements for which Tier 2 Payment is Per Occurrence:
Performance Measurements that are Averages or Means:
1 Step 1: The monthly average or the mean for each performance
measurement that would yield the critical z-value for each month shall be calculated.
The same denominator as the one used in calculating the z-statistic for the
measurement shall be used. (For benchmark measurements, the benchmark value
shall be used.
2 Step 2: The percentage difference between the actual averages and the
calculated averages for the relevant month(s) shall be calculated. The calculation
for parity measurements is % diff = (actual average - calculated average)/calculated
average. The percent difference shall be capped at a maximum of 100%. In allcalculations of percent differences in section 8.0 and section 9., the calculated
percent difference is capped at 100%.
3 Step 3: For each performance measurement, the total number of data points
for the relevant month(s) shall be multiplied by the percentage calculated in the
previous step. The amount (average amount, if more than one month) (rounded to
the nearest integer) is then multiplied by the result of the per occurrence dollar
amount taken from the Tier 2 Payment Table to determine the payment to the State
for each non-conforming performance measurement.
Performance Measurements that are Percentages:
Step 1: For each performance measurement, the monthly percentage thatwould yield the critical z-value for each month shall be calculated. The same
denominator as the one used in calculating the z-statistic for the measurement shall
be used. (For benchmark measurements , the benchmark value shall be used.
2 Step 2: The difference between the actual percentages and the calculated
percentages for the relevant month(s) shall be calculated. The calculation for parity
measurement is diff = (GLEC result - calculated percentage). This formula shall be
applicable where a high value is indicative of poor performance. The formula shall be
reversed where high performance is indicative of good performance.
owest Idaho SGA T Third Revised Exhibit K
, -+
2nd Revision2003 - 11-
March 120ctober 31
Exhibit K
3 Step 3: For each performance measurement, the total number of data pointsfor the relevant month(s) shall be multiplied by the difference in percentage
calculated in the previous step. The amount (average amount, if more than one
month)(rounded to the nearest integer) is then multiplied by the result of the per
occurrence dollar amounts taken from the Tier 2 Payment Table to determine the
payment to the State.
9.4 Performance Measurements that are Ratios or Proportions:
9.4.Step 1: For each performance measurement, the ratio that would yield the
critical z-value for each month shall be calculated. The same denominator as the
one used in calculating the z-statistic for the measurement shall be used. (For
benchmark measurements, the benchmark value shall be used.
9.4.1 Step 2: The difference between the actual rate for the GLEG and the
calculated rate for the relevant month(s) shall be calculated. The calculation is: diff =
(GLEG rate calculated rate). This formula shall apply where a high value isindicative of poor performance. The formula shall be reversed where high
performance is indicative of good performance.
9.4.2 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference calculated in the previous step for each month.
The amount (average amount, if more than one month)(rounded to the nearest
integer) is then multiplied by the result of the per occurrence dollar amounts taken
from the Tier 2 Payment Table to determine the payment to the State.
Performance Measurements for which Tier 2 Payment is Per Measure:
For each performance measurement where Qwest fails to meet the standard
the payment to the State Fund shall be the dollar amount ' shown on the "per
measure" portion of the Tier 2 Payment Table.
10.Low Volume, Developing Markets
10.For certain qualifying performance standards, if the aggregate monthlyvolumes of GLECs participating in the PAP are more than 10, but less than 100,
Qwest will make Tier 1 payments to GLEGs for failure to meet the parity or
benchmark standard for the qualifying performance sub-measurements. The
qualifying sub-measurements are the UNE-P (POTS), megabit resale, and ADSL
qualified loop product disaggregation of OP-3, OP-4, OP-5g, MR-3, MR-5, MR-, and I
MR-8. If the aggregate monthly GLEG volume is greater than 100, the provisions of
this section shall not apply to the qualifying performance sub-measurement.
10.The determination of whether Qwest has met the parity or benchmark
standards will be made using aggregate volumes of GLEGs participating in the PAP.
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 12-
M3rch 120ctober 31
Exhibit K
In the event awest does not meet the applicable performance standards, a total
payment to affected CLECs will be determined in accordance with the high, medium
low designation for each performance measurement (see Attachment 1) and as
described in section 8., except that CLEC aggregate volumes will be used. In the
event the calculated total payment amount to CLECs is less than $5,000, a minimum
payment of $5 000 shall be made. The resulting total payment amount to CLECs will
be apportioned to the affected CLECs based upon each CLEC's relative share of the
number of total service misses.
10.At the six (6)-month reviews, awest will consider adding to the above list of
qualifying performance sub-measurements, new products disaggregation
representing new modes of CLEC entry into developing markets.
11.Payment
11.Payments to CLEC, the State, or the Special Fund shall be made one month
following the due date of the performance measurement report for the month for
which payment is being made. awest will pay interest on any late payment and
underpayment at the prime rate as reported in the Wall Street Journal. On any
overpayment, awest is allowed to offset future payments by the amount of the
overpayment plus interest at the prime rate.
11.Payment to CLEC shall be made via bill credits. Bill credits shall be identified
on a summary format substantially similar to that distributed as a prototype to the
CLECs and the Commissions. To the extent that a monthly payment owed to CLEC
under this PAP exceeds the amount owed to awest by CLEC on a monthly bill
awest will issue a check or wire transfer to CLEC in the amount of the overage.
Payment to the State shall be made via check or wire transfer.
11.3 A Special Fund shall be created for the purpose of payment of an
independent auditor and audit costs as specified in section 15.0 and payment of
other expenses incurred by the participating Commissions in the regional
administration of the PAP.
11.1 awest shall establish the Special Fund as an interest bearing escrow account
upon the first FCC section 271 approval of the PAP applicable to a participating state'
Commission. awest shall be authorized to withhold and deposit into the Special
Fund one-half of all Tier 2 payments. The cost of the escrow account will be paid
for from account funds.
11.2 Commissions participating in the Special Fund shall appoint a person
designated to administer and authorize disbursement of funds. All claims against the
fund shall be presented to the Commissions' designates and shall be the
responsibility of the participating Commissions.
Qwest Idaho SGA T Third Revised Exhibit K
, -+
2nd Revision
2003 - 13-
March 120ctober 31
Exhibit K
11.3 Owest shall advance funds to meet initial claims against the Special Fund to
the extent Tier 2 contributions are insufficient. Such funds shall not exceed $500 000
and shall be reduced appropriately in the event that at least six states in which the
OPAP is in effect do not agree to participate in the Special Fund. Upon a
determination by the participating Commissions that the Special Fund has become
self-sustaining or is no longer required Owest shall be allowed to recover any such
advances plus interest at the rate that the escrow account would have earned.
11.3.4 Upon the execution of a memorandum of understanding with the Idaho
Commission Owest shall establish an Idaho Discretionary Fund as a separate
interest bearing escrow account. Owest shall deposit into the Discretionary Fund the
remaining balance of Tier 2 payments after disbursement of Tier 2 payments to the
Special Fund pursuant to section 13.1. The Commission shall appoint a person
designated to administer and authorize disbursements of funds from the
Discretionary Fund. Disbursements from the Discretionary Fund shall be limited to
competitively neutral Idaho telecommunications initiatives. The costs of the
Discretionary Fund will paid for from the account's funds.
12.Cap on Tier 1 and Tier 2 Payments
12.There shall be a cap on the total payments made by Owest for a 12 month
period beginning with the effective date of the PAP for the State of Idaho. The
annual cap for the State of Idaho shall be 36% of ARMIS Net Return , recalculated
each year based upon the prior year s Idaho ARMIS results , subject to any
applicable adjustment permitted pursuant to section 12.2. Owest shall submit to the
Commission the calculation of each year s cap no later than 30 days after submission
of ARMIS results to the FCC. CLEC agrees that this amount constitutes a maximum
annual cap that shall apply to the aggregate total of Tier 1 liquidated damages
including any such damages paid pursuant to this Agreement, any other
interconnection agreement, or any other payments made for the same underlying
activity or omission under any other contract, order or rule and Tier 2 assessments or
payments made by Owest for the same underlying activity or omission under any
other contract, order or rule.
12.The 36% annual cap may be increased to 44% or decreased to 30% ofARMIS Net Return as follows:
12.1 An increase in the cap of a maximum of 4 percentage points at anyone time
(Le., first to 40 percent) shall occur upon order by the Commission if the cap has
been exceeded for any consecutive period of 24 months by that same 4 percent or
more, provided that: (a) the Commission has determined that the preponderance of
the evidence shows Owest could have remained beneath the cap through
reasonable and prudent effort, and (b) the Commission has made that determination
after having available to it on the record the results of audits and root cause
analyses , and provided an opportunity for Owest to be heard.
Qwest Idaho SGA T Third Revised Exhibit K
, -+ g:j:
2nd Revision2003 - 14-
M3rch 120ctober 31
Exhibit K
12.2 A decrease in the cap of a maximum of 4 percentage paints at any ane time
shall accur upan arder by the Cammissian after performance far any cansecutive
periad af 24 manths in which total payments are 8 ar mare percentage paints belaw
the cap amaunt, pravided that: (a) the Cammissian has determined that the
prepanderance af the evidence shaws the perfarmance results underlying thase
payments results fram an adequate Owest cammitment to. meeting its respansibilities
to. provide adequate whalesale service and to. keeping apen its lacal markets and (b)
the Cammissian shall have made that determinatian after providing all interested
parties an appartunity to. be heard.
12.3 The provisians af 12.1 and 12.2 shall be in effect for the next 24 manth
periad cammencing with the end af the 24 manth periad upan which the
Cammissian s arder is based.
12.If the annual cap is reached , each CLEC shall , as af the end af the year, be
entitled to. receive the same percentage af its tatal calculated Tier 1 payments. In
order to. preserve the aperatian af the annual cap, the percentage equalizatian shall
take place as fallaws:
12.1 The amaunt by which any manth'tatal year-ta-date Tier 1 and Tier 2
payments exceeds the cumulative manthly cap (defined as 1/1ih af the annual cap
times the cumulative number af manths to. date) shall be calculated and appartianed
between Tier 1 and Tier 2 according to. the percentage that each bore af tatal
payments far the year-ta-date. The Tier 1 appartianment resulting af this calculatian
shall be knawn as the "Tracking Accaunt"
12.2 The Tier 1 appartianment shall be debited against the manthly payment due
to. each CLEC , by applying to. the year-ta-date payments received by each the
percentage necessary to. generate the required tatal Tier 1 amaunt
12.3 The Tracking Amaunt shall be appartianed amang all CLECs so. as to. provide
each with payments equal in percentage af its tatal year to. date Tier 1 payment
calculatians.
12.3.4 This calculatian shall take place in the first manth that the year-ta-date tatal
Tier 1 and Tier 2 payments are expected to. exceed the cumulative manthly cap and
far each manth af that year thereafter. Owest shall recaver an~ debited amaunts by
reducing payments due to. any CLEC far that manth and any succeeding manths,
necessary.
13.Limitations
13.The PAP shall nat became available in the State unless and until Owest
receives effective sectian 271 autharity from the FCC far that State.
Owest Idaho. SGA T Third Revised Exhibit K, 4-&+ 2nd Revisio.n2003 - 15-
M3rch 120ctober 31
Exhibit K
13.Owest will not be liable for Tier 1 payments to CLEC in an FCC approved
state until the Commission has approved an interconnection agreement between
CLEC and Owest which adopts the provisions of this PAP.
13.Owest shall not be obligated to make Tier 1 or Tier 2 payments for any
measurement if and to the extent that non-conformance for that measurement was
the result of any of the following: 1) with respect to performance measurements with
a benchmark standard, a Force Majeure event as defined in section 5.7 of the SGAT.
Owest will provide notice of the occurrence of a Force Majeure event within 72 hours
of the time Owest learns of the event or within a reasonable time frame that Owest
should have learned of it; 2) an act or omission by a CLEC that is contrary to any of
its obligations under its interconnection agreement with Owest or under federal
state law; an act or omission by CLEC that is in bad faith. Examples of bad faith
conduct include , but are not limited to: unreasonably holding service orders and/or
applications
, "
dumping " orders or applications in unreasonably large batches
dumping" orders or applications at or near the close of a business day, on a Friday
evening or prior to a holiday, and failing to provide timely forecasts to Owest for
services or facilities when such forecasts are explicitly required by the SGAT; 3)
problems associated with third-party systems or equipment, which could not have
been avoided by Owest in the exercise of reasonable diligence, provided, however
that this third party exclusion will not be raised in the State more than three times
within a calendar year. If a Force Majeure event or other excusing event recognized
in this section merely suspends Owest's ability to timely perform an activity subject to
a performance measurement that is an interval measure, the applicable time frame in
which Owest's compliance with the parity or benchmark criterion is measured will be
extended on an hour-for-hour or day-for-day basis, as applicable, equal to the
duration of the excusing event.
13.1 Owest will not be excused from Tier 1 or Tier 2 payments for any reason
except as described in Section 13.0. Owest will have the burden of demonstrating
that its non-conformance with the performance measurement was excused on one of
the grounds described in this PAP. A party may petition the Commission to require
Owest to deposit disputed payments into an escrow account when the requesting
party can show cause, such as grounds provided in the Uniform Commercial Code
for cases of commercial uncertainty.
13.2 Notwithstanding any other provision of section 13 of this OPAP
, ,
Owest shall
not be excused for failing to provide such performance that Owest could reasonably
have been expected to deliver assuming that it had designed, implemented, staffed,
provisioned, and otherwise provided for resources reasonably required to meet
foreseeable volumes and patterns of demands upon its resources by CLECs.
Owest Idaho SGA T Third Revised Exhibit K, .:t- 2nd Revision2003 - 16-
March 120ctober 31
Exhibit K
13.4 Owest's agreement to implement these enforcement terms, and specifically
its agreement to pay any "liquidated damages" or "assessments" hereunder, will not
be considered as an admission against interest or an admission of liability in any
legal , regulatory, or other proceeding relating in whole or in part to the same
performance.
13.4.1 CLEC may not use: 1) the existence of this enforcement plan; or 2) Qwest's
payment of Tier -1 "liquidated damages" or Tier 2 "assessments" as evidence that
Owest has discriminated in the provision of any facilities or services under Sections
251 or 252 , or has violated any state or federal law or regulation. Owest's conduct
underlying its performance measures, however are not made inadmissible by its
terms.
13.4.2 By accepting this performance remedy plan CLEC agrees that Qwest's
performance with respect to this remedy plan may not be used as an admission of
liability or culpability for a violation of any state or federal law or regulation. (Nothing
herein is intended to preclude Owest from introducing evidence of any Tier 1
liquidated damages" under these provisions for the purpose of offsetting the
payment against any other damages or payments a CLEC might recover.) The terms
of this paragraph do not apply to any proceeding before the Commission or the FCC
to determine whether Owest has met or continues to meet the requirements of
section 271 of the Act.
13.5 By incorporating these liquidated damages terms into the PAP, Owest and
CLEC accepting this PAP agree that proof of damages from any non-conforming
performance measurement would be difficult to ascertain and, therefore, liquidated
damages are a reasonable approximation of any contractual damages that may
result from a non-conforming performance measurement. Owest and CLEC further
agree that Tier 1 payments made pursuant to this PAP are not intended to be a
penalty. The application of the assessments and damages provided for herein is not
intended to foreclose other noncontractual legal and non-contractual regulatory
claims and remedies that may be available to a CLEC.
13.This PAP contains a comprehensive set of performance measurements
statistical methodologies, and payment mechanisms that are designed to function
together, and only together, as an integrated whole. To elect the PAP, CLEC must
adopt the PAP in its entirety, in its interconnection agreement with Owest.
electing remedies under the PAP, CLEC waives any causes of action based on a
contractual theory of liability, and any right of recovery under any other theory of
liability (including but not limited to a state utility regulatory commission or Federal
Communications Commission rule or order) to the extent such recovery is related to
harm compensable under a contractual theory of liability (even though it is sought
through a noncontractual claim , theory, or cause of action).
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 17-
M3rch 120ctober 31
Exhibit K
13.
If for any reason a CLEC agreeing to this QPAP is awarded compensation for the
same harm for which it received payment under the QPAP , the court or other
adjudicatory body hearing such a claim may offset the damages resulting from such
claim against payments made for the same harm.
13.Qwest shall not be liable for both Tier 2 payments under the PAP and
assessments , sanctions , or other payments for the same underlying activity or
omission pursuant to any Commission order or service quality rules.
13.Whenever a Qwest Tier 1 payment to an individual CLEC exceeds $3 million
in a month, Qwest may commence a proceeding to demonstrate why it should not be
required to pay any amount in excess of the $3 million. Upon timely commencement
of the proceeding, Qwest must pay the balance of payments owed in excess of $3
million into escrow, to be held by a third-party pending the outcome of the
proceeding. To invoke these escrow provisions, Qwest must file, not later than the
due date of the Tier 1 payments, its application. Qwest will have the burden of proof
to demonstrate why, under the circumstances, it would be unjust to require it to make
the payments in excess of $3 million. If Qwest reports non-conforming performanceto CLEC for three consecutive months on 20% or more of the measurements
reported to CLEC and has incurred no more than $1 million in liability to CLEC, then
CLEC may commence a similar proceeding. In any such proceeding CLEC will have
the burden of proof to demonstrate why, under the circumstances, justice requires
Qwest to make payments in excess of the amount calculated pursuant to the terms of
the PAP. The disputes identified in this section shall be resolved in a manner
specified in the Dispute Resolution section of the SGA T with the CLEC.
14.Reporting
14.Upon receiving effective section 271 authority from the FCC for a state,
Qwest will provide CLEC that has an approved interconnection agreement with
Qwest, a monthly report of Qwest's performance for the measurements identified in
the PAP by the last day of the month following the month for which performance
results are being reported. However Qwest shall have a grace period of five
business days, so that Qwest shall not be deemed out or compliance with its
reporting obligations before the expiration of the five business day grace period.
Qwest will collect, analyze, and report performance data for the measurements listed
on Attachment 1 in accordance with the most recent version of the PIDs. Upon
CLEC's request, data files of the CLEC's raw data, or any subset thereof, will be
transmitted, without charge, to CLEC in a mutually acceptable format, protocol , and
transmission medium.
Owest Idaho SGAT Third Revised Exhibit K, +:0;+ 2nd Revision2003 - 18-
March 120ctober 31
Exhibit K
14.Owest will also provide the Commission a monthly report of aggregate CLEC
performance results pursuant to the PAP by the last day of the month following the
month for which performance results are being reported. However, Owest shall have
a grace period of five business days, so that Owest shall not be deemed out of
compliance with its reporting obligations before the expiration of the five business day
grace period. Individual CLEC reports of participating CLECs will also be available to
the Commission upon request. By accepting this PAP , CLEC consents to Owest
providing CLEC's report and raw data to the State Commission. Pursuant to the
terms of an order of the Commission, Owest may provide GLEe-specific data that
relates to the PAP , provided that Owest shall first initiate any procedures necessary
to protect the confidentiality and to prevent the public release of the information
pending any applicable Commission procedures and further provided that Owest
provides such notice as the Commission directs to the CLEC involved, in order to
allow it to prosecute such procedures to their completion. Data files of participating
CLEC raw data , or any subset thereof, will be transmitted, without charge , to the
Commission in a mutually acceptable format, protocol, and transmission form.
14.In the event Owest does not provide CLEC and the Commission with a
monthly report by the last day of the month following the month for which
performance results are being reported, Owest will pay to the State a total of $500 for
each business day for which performance reports are 6 to 10 business days past the
due date; $1 000 for each business day for which performance reports are 11 to 15
business days past the due date; and $2 000 for each business day for which
performance results are more than 15 business days past the due date. If reports '
are on time but are missing performance results , Owest will pay to the State a total of
one-fifth of the late report amount for each missing performance measurement
subject to a cap of the full late report amount. These amounts represent the total
payments for omitting performance measurements or missing any report deadlines
rather thana payment per report. Prior to the date of a payment for late reports
Owest may file a request for a waiver of the payment, which states the reasons for
the waiver. The Commission may grant the waiver, deny the waiver, or provide any
other relief that may be appropriate.
14.4 To the extent that Owest recalculates payments mad~ under this PAP, such
recalculation shall be limited to the preceding three years (measured from the later of
the provision of a monthly credit statement or payment due date). Owest shall retain
sufficient records to demonstrate fully the basis for its calculatiot)s for long enough to
meet this potential recalculation obligation. CLEC verification or recalculation efforts
should be made reasonably contemporaneously with Owest measurements. In any
event, Owest shall maintain the records in a readily useable format for one year. For
the remaining two years, the records may be retained in archived format. Any
payment adjustments shall be subject to the interest rate provisions of section 11.
Owest Idaho SGA T Third Revised Exhibit K
, -+
2nd Revision2003 - 19-
M3rch 120ctober 31
Exhibit K
15.Integrated Audit Programllnvestigations of Performance Results
15.Audits of the PAP shall be conducted in a two-year cycle under the auspices
of the participating Commissions in accordance with a. detailed audit plan developedby an independent auditor retained for a two-year period. The participating
Commissions shall select the independent auditor with input from Qwest and CLECs.
15.1 The participating Commissions shall form an oversight committee of
Commissioners who will choose the independent auditor and approve the audit plan.
Any disputes as to the choice of auditor or the scope of the audit shall be resolved
through a vote of the chairs of the participating commissions pursuant to Section
15.1.4.
15.2 The audit plan shall be conducted over two years. The audit plan will identifythe specific performance measurements to be audited , the specific tests to
conducted, and the entity to conduct them. The audit plan will give priority to auditing
the higher risk areas identified in the ass report. The two-year cycle will examine
risks likely to exist across that period and the past history of testing, in order to
determine what combination of high and more moderate areas of risk should be
examined during the two-year cycle. The first year of a two-year cycle will
concentrate on areas most likely to require follow-up in the second year.
15.3 The audit plan shall be coordinated. with other audit plans that may be
conducted by other state commissions so as to avoid duplication, shall not impede
Qwest's ability to comply with the other provisions of the PAP and should be of a
nature and scope that can be conducted in accordance with the reasonable course of
Qwest's business operations.
15.1.4 Any dispute arising out of the audit plan , the conduct of the audit, or audit
results shall be resolved by the oversight committee of Commissioners. Decisions of
the oversight committee of Commissioners may be appealed to a committee of the
chairs of the participating Commissions.
15.Qwest may make management processes more accurate or more efficient to
perform without sacrificing accuracy. These changes are at Qwest's discretion but
will be reported to the independent auditor in quarterly meetings in which the auditor
may ask questions about changes made in the Qwest measurement regimen. The
meetings, which will be limited to Qwest and the independent auditor, will permit an
independent assessment of the materiality and propriety of any Qwest changes,
including, where necessary, testing of the change details by the independent auditor.
The information gathered by the independent auditor may be the basis for reports bythe independent auditor to the participating Commissions and, where the
Commissions deem it appropriate, to other participants.
Owest Idaho SGA T Third Revised Exhibit K
, -+ &+
2nd Revision
2003 - 20-
M3rch 120ctober 31
Exhibit K
15.In the event of a disagreement between awest and CLEC as to any issue
regarding the accuracy or integrity of data collected , generated , and reported
pursuant to the PAP, awest and the CLEC shall first consult with one another and
attempt in good faith to resolve the issue. If an issue is not resolved within 45 days
after a request for consultation, CLEC and awest may, upon a demonstration of goodcause, (e., evidence of material errors or discrepancies) request an independent
audit to be conducted , at the initiating party s expense. The independent auditor will
assess the need for an audit based upon whether there exists a material deficiency in
the data or whether there exists an issue not otherwise addressed by the audit plan
for the current cycle. The dispute resolution provision of section 18.0 is available to
any party questioning the independent auditor s decision to conduct or not conduct a
CLEC requested audit and the audit findings, should such an audit be conducted. An
audit may not proceed until dispute resolution is completed. Audit findings willinclude: (a) general applicability of findings and conclusions (Le., relevance to
CLECs or jurisdictions other than the ones causing test initiation), (b) magnitude of
any payment adjustments required and , (c) whether cost responsibility should be
shifted based upon the materiality and clarity of any awest non-conformance with
measurement requirements (no pre-determined variance is appropriate, but should
be based on the auditor s professional judgment). CLEC may not request an audit ofdata more than three years from the later of the provision of a monthly credit
statement or payment due date.
15.4 Expenses for the audit of the PAP and any other related expenses , except
that which may be assigned under section 15., shall be paid first from the Tier 2
funds in the Special Fund. For Idaho , the remainder of the audit expenses will be
paid by awest.
15.awest will investigate any second consecutive Tier 2 miss to determine the
cause of the miss and to identify the action needed in order to meet the standard set
forth in the performance measurements. To the extent an investigation determines
that a CLEC was responsible in whole or in part for the Tier 2 misses , awest shall
receive credit against future Tier 2 payments in an amount equal to the Tier 2
payments that should not have been made. The relevant portion of subsequent Tier
2 payments will not be owed until any responsible CLEC problems are corrected. Forthe purposes of this sub-section, Tier 1 performance measurements that have not
been designated as Tier 2 will be aggregated and the aggregate results will be
investigated pursuant to the terms of this Agreement.
16.Reviews
16. 1 Every six (6) months, beginning six months after the effective date of section
271 approval by the FCC for the state of Idaho, awest, CLECs, or the Idaho Public
Utilities Commission may initiate a review of the performance measurements todetermine whether measurements should be added , deleted, or modified; whetherthe applicable benchmark standards should be modified or replaced by parity
Owest Idaho SGA T Third Revised Exhibit K
, -+;;+
2nd Revision
2003 - 21-
M3rch 120ctober 31
Exhibit K
standards; and whether to move a classification of a measurement to High , Medium
or Low, Tier 1 or Tier 2. The criterion for reclassification of a measurement shall be
whether the actual volume of data. points was less or greater than anticipated.
Criteria for review of performance measurements, other than for possible
reclassification , shall be whether there exists an omission or failure to capture
intended performance, and whether there is duplication of another measurement. Any
disputes regarding adding, deleting, or modifying performance measurements shall
be resolved pursuant to a proceeding before the Commission and subject to judicial
review. No new performance measurements shall be added to this PAP that have
not been subject to observation as diagnostic measurements for a period of 6
months. Any changes made at the six-month review pursuant to this section shall
apply to and modify this agreement between Qwest and CLEC, subject to a stay,
modification or reversal upon appeal or judicial review.
16.Notwithstanding section 16., if any agreements on adding, modifying
or deleting performance measurements as permitted by section 16.1 are reached
between Qwest and CLECs participating in an industry Regional Oversight
Committee (ROC) PID administration forum, those agreements shall be incorporated
into the QPAP and modify the agreement between CLEC and Qwest at any time
those agreements are submitted to the Commission , whether before or after a six-
month review.
16.For the first twelve months that any changes made pursuant to paragraphs
16.1 or 16.1 are in effect, Qwest's liability for such changes shall be limited to 10%
of the monthly payments that Qwest would have made absent the effect of such
changes as a whole. This provision shall be referred as "the 10% payment collar.
Such payment limitation shall be accomplished by factoring the payments resulting
from the changes to ensure that such payments remain within 10% of the payments
Qwest would have made absent such changes.
16.In the event that the Commission adds , modifies, or reclassifies a
performance measurement that has not been agreed upon in the ROC PID
administration forum process in 16., the 10% payment coll9r shall remain in effect
unless removed by the Commission pursuant to this section. If, after a minimum of 6
months of payments to a CLEC, Qwest's payments have been limited by the 10%
payment collar to 80% or less of what the total payments would have been absent
the collar for the preceding 6-month period, the Commission may, upon motion by an
affected CLEC, conduct a record proceeding to determine whether the 10% payment
collar should be removed from any such performance measure. The Commission
can prospectively remove the 10% collar for Tier 1 payments to affected CLEC(s) for
any such performance measure upon a demonstration through a record proceeding
and a Commission determination that the total payments to the CLEC(s) under the
QPAP were inadequate to compensate CLEC(s) for actual harm incurred during the
same period and upon a determination that such change is otherwise necessary and
appropriate and in the public interest.
Qwest Idaho SGA T Third Revised Exhibit K
, -+::;+
2nd Revision2003 - 22-
M~rch 120ctober 31
Exhibit K
16.Two years after the effective date of the first FCC 271 approval of the PAPthe participating Commissions may conduct a joint review by a independent thirdparty to examine the continuing effectiveness of the PAP as a means of inducing
compliant performance. This review shall not be used to open the PAP generally to
amendment, but would serve to assist Commissions in determining existing
conditions and reporting to the FCC on the continuing adequacy of the PAP to serve
its intended functions. The expense of the reviews shall be paid from the Special
Fund.
16.Qwest will make the PAP available for CLEC interconnection agreements
until such time as Qwest eliminates its Section 272 affiliate. At that time , the
Commission and Qwest shall review the appropriateness of the PAP and whether its
continuation is necessary. However, in the event Qwest exits the interLATA market
that State PAP shall be rescinded immediately.
17.Voluntary Performance Assurance Plan
This PAP represents Qwest's voluntary offer to provide performance assurance.
Nothing in the PAP or in any conclusion of non-conformance of Qwest's service
performance with the standards defined in the PAP shall be construed to be, of itself
non-conformance with the Act.
18.Dispute Resolution
For the purpose of resolving disputes over the meaning of the provisions of the PAP
and how they should be applied , the dispute resolution provisions of the SGAT
section 5., shall apply whether the CLEC uses the SGA T in its entirety or elects tomake the PAP part of its interconnection agreements (i.e.' the unique dispute
resolution provisions of interconnection agreements should not apply).
Owest Idaho SGA T Third Revised Exhibit K, -+ S+ 2nd Revision2003 - 23-
March 120ctober 31
Exhibit K
Attachment 1: Tier 1 and Tier 2 Performance Measurements Subject to Per Occurrence
Payment
Performance Measurement Tier 1 Payments Tier 2 Payments
Low Med Low Med High
HiQh
GATEWAY
Timely OutaQe Resolution GA-
PRE-ORDER/ORDERS
LSR Rejection Notice Interval PO-
Firm Order Confirmations On Time PO-
Work Completion Notification Timeliness PO-
BillinQ Completion Notification Timeliness PO- 70
Jeopardy Notice Interval PO-
Timely Jeopardy Notices PO-
Release Notifications PO-
ORDERING AND PROVISIONING
Installation Commitments Met OP-
Installation Intervals OP-4u
New Service Installation Quality OP-
Delayed Days OP-
Number Portability Timeliness OP-
. Coordinated Cuts On Time -Unbundled OP-13a
Loops
LNP Disconnect Timeliness OP-
MAINTENANCE AND REPAIR
Out of Service Cleared within 24 hours MR-
All Troubles Cleared within 4 hours MR-
Mean time to Restore MR-
6a,
Repair Repeat Report Rate MR-
Trouble Rate MR-
LNP Trouble Reports Cleared within 24 MR-
Hours
LNP Trouble Reports-Mean Time MR-
Restore
BILLING
Time to Provide Recorded UsaQe Records BI-
BillinQ Accuracy-Adjustments for Errors BI-
BillinQ Completeness BI-4
NEnNORK PERFORMANCE
Trunk BlockinQ NI-
NXX Code Activation NP-
Qwest Idaho SGA T Third Revised Exhibit K,
-+ &+
2nd Revision
- 24-
MClrch 120ctober 31 , 2003
Exhibit K
a. PO-3 is limited to PO-3a-, PO-3b-, and PO-3c.
b. PO-6 is included with PO-7 as two "families:" PO-6a/PO-7a and PO-6b/PO-7b. Measurements within
each family share a single payment opportunity with only the measurements with the highest payment being
paid.
COO OP-4 is included with OP-6 as five "families:" OP-4a/OP-, OP-4b/OP-2, OP-4c/OP-, OP-4d/OP-
, and OP-4e/OP-5. Measurements within each family share a single payment opportunity with only the
measurement with the highest payment being paid.
d. For purposes of the PAP, OP-6a and OP-6b will be combined and treated as one. The combined OP-
breaks down to OP-1 (within MSA), OP-2 (outside MSA), OP-3 (no dispatch), OP-6-4 (zone 1), and
OP-5 (zone 2).
Qwest Idaho SGA T Third Revised Exhibit K
, -+:;+
2nd Revision
- 25-
March 120ctober 31 , 2003
Exhibit K
Attachment 2: Performance Measurements Subject to Per Measurement Caps
Billing
Time to Provide Recorded Usage Records - BI-1 (Tier 1/Tier 2)
Billing Accuracy - Adjustments for Errors - BI-(Tier 1)
Billing Completeness - BI-(Tier 1/Tier 2)
Owest Idaho SGA T Third Revised Exhibit K,
-+
2nd Revision
- 26-
March 120ctober 31 2003
Exhibit K
PERFORMANCE ASSURANCE PLAN
Introduction
As set forth in this Agreement, Owest and GLEe voluntarily agree to the
terms of the following Performance Assurance Plan ("PAP"), prepared in conjunction
with Owest's application for approval under Section 271 of the Telecommunications
Act of 1996 (the "Act") to offer in-region long distance service.
Plan Structure
The PAP is a two-tiered, self-executing remedy plan. eLEe shall be provided
with Tier 1 payments if, as applicable, Owest does not provide parity between the
service it provides to GLEe and that which it provides to its own retail customers, or
awest fails to meet applicable benchmarks.
As specified in section 7.0, if Owest fails to meet parity and benchmark
standards on an aggregate eLEC basis, awest shall make Tier 2 payments to a
Fund established by the state regulatory commission or, if required by existing law, to
the state general fund.
As specified in sections 6.0 and 7.0 and Attachments 1 and 2, payment is
generally on a per occurrence basis, (Le., a set dollar payment times the number of
non-conforming service events). For the performance measurements which do not
lend themselves to per occurrence payment, payment is on a per measurement
basis
, "
(Le., a set dollar payment). The level of payment also depends upon the
number of consecutive months of non-conforming performance, (Le., an escalating
payment the longer the duration of non-conforming performance).
awest shall be in conformance with the parity standard when service Owest
provides to CLEC is equivalent to that which it provides to its retail customers. The
PAP relies upon statistical scoring to determine whether any difference between
GLEe and awest performance results is significant, that is, not attributable to simple
random variation. Statistical parity shall exist when performance results for eLEe
and for awest retail analogue result in a z-value that is no greater than the critical z-
values listed in the Critical Z-Statistical Table in section 5.
2.4 For performance measurements that have no awest retail analogue, agreed
upon benchmarks shall be used. Benchmarks shall be evaluated lJsing a "stare and
compare" method. For example, if the benchmark is for a particular performance
measurement is 95% or better, awest performance results must be at least 95% to
meet the benchmark. Percentage benchmarks will be adjusted to round the
allowable number of misses up or down to the closest integer, except when a
benchmark standard and low eLEe volume are such that a 100% performance result
would be required to meet the standard and has not been attained. In such a
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 2003 - 1-
ATTACH~lENT 2
Exhibit K
situation , the determination of whether Qwest meets or fails the benchmark standard
will be made using performance results for the month in question , plus a sufficient
number of consecutive months so that a 100% performance result would not be
required to meet the standard. For purposes of section 6., a meet or fail determined
by this procedure shall count as a single month.
Performance Measurements
The performance measurements included in the PAP are set forth in
Attachment 1. Each performance measurement identified is defined in the
Performance Indicator Definitions ("PIDs ) developed in the ROC Operational
Support System ("OSS") collaborative , and which are included in the SGA T at Exhibit
B. The measurements have been designated as Tier 1 , Tier 2, or both Tier 1 and
Tier 2 and given a High, Medium, or Low designation.
Statistical Measurement
Qwest uses a statistical test, namely the modified li test " for evaluating the
difference between two means (Le., Qwest and CLEC service or repair intervals) or
two percentages (e., Qwest and CLEC proportions), to determine whether a parity
condition exists between the results for Qwest and the CLEC(s). The modified z-
tests shall be applicable if the number of data points are greater than 30 for a given
measurement. For testing measurements for which the number of data points are 30
or less, Qwest will use a permutation test to determine the statistical significance of
the difference between Qwest and CLEC.
Qwest shall be in conformance when the monthly performance results for
parity measurements (whether in the form of means, percents, or proportions and at
the equivalent level of disaggregation) are such that the calculated z-test statistics
are not greater than the critical z-values as listed in Table 1 , section 5.
Qwest shall be in conformance with benchmark measurements when the
monthly performance result equals or exceeds the benchmark, if a higher value
means better performance, and when the monthly performance result equals or is
less than the benchmark if a lower value means better performacce.
The formula for determining parity using the modified z-test is:
z = DIFF O'DIFF
Where:
DIFF = Mawest - MCLEC
MaWEST = Qwest average or proportion
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision -October 31 , 2003 - 2-
Exhibit K
MCLEC = CLEC average or proportion
crOIFF = square root ocr Qwest (1/ n CLEC + 1/ n Owest))
0west = calculated variance for Qwest
nOwest = number of observations or samples used in Qwest
measurement
nCLEC = number of observations or samples used in CLEC
measurement
The modified z-tests will be applied to reported parity measurements that contain
more than 30 data points.
In calculating the difference between Qwest and CLEC performance, the above
formula applies when a larger Qwest value indicates a better level of performance. In
cases where a smaller Qwest value indicates a higher level of performance, the order
is reversed , i.e., MCLEC - MOWEST.
For parity measurements where the number of data points is 30 or less
Qwest will apply a permutation test to test for statistical significance. Permutation
analysis will be applied to calculate the z-statistic using the following logic:
Calculate the modified z-statistic for the actual arrangement of the data
Pool and mix the CLEC and Qwest data sets
Perform the following 1000 times:
Randomly subdivide the pooled data sets into two pools , one the same
size as the original CLEC data set (nCLEC) and one reflecting the
remaining data points , and one reflecting the remaining data points,
(which is equal to the size of the original Qwest data set or nOWEST).
Compute and store the modified z-test score (Zs) for this sample.
Count the number of times the z-statistic for a permutation of the data
greater than the actual modified z-statistic
Compute the fraction of permutations for which the statistic for the rearranged
data is greater than the statistic for the actual samples
If the fraction is greater than a, the significance level of the test, the hypothesis of no
difference is not rejected, and the test is passed. The a shall be .05 when the critical
z value is 1.645 and .15 when the critical z value is 1.04.
Critical Z-Value
The following table shall be used to determine the critical z-value that is
referred to in section 6.0. It is based on the monthly business volume of the CLEC
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003 - 3-
Exhibit K
for the particular performance measurements for which statistic testing is beingperformed.
TABLE 1: CRITICAL Z-ALUE
CLEC volume LIS Trunks,UDITs All Other
(Sample size)Resale, UBL-DS1 and DS-
04*645
11-150 645 645
151-300
301-600
601-3000
3001 and above
* The 1.04 applies for individual month testing for performance measurements
involving LIS trunks and DS-1 and DS-3 that are UDITs, Resale, or Unbundled
Loops. The performance measurements are OP-3d/e, OP-4d/e OP-5a, OP-6-4/5
MR-5a/b, MR-7d/e, and MR-8.
For purposes of determining consecutive month misses, 1.645 shall be used. Where
performance measurements dis~ggregate to zone 1 and zone 2 , the zones shall be
combined for purposes of statistical testing.
Tier 1 Payments to CLEC
Tier 1 payments to CLEC shall be made solely for the performance
measurements designated as Tier 1 on Attachment 1. The payment amount for non-
conforming service varies depending upon the designati,on of performance
measurements as High , Medium , and Low and the duration of the non-conforming
service condition as described below. Non-conforming service is defined in section
Determination of Non-Conforming Measurements: The number of
performance measurements that are determined to be non-conforming and,
therefore, eligible for Tier 1 payments , are limited according to the critical z-value
shown in Table 1 , section 5.0. The critical z-values are the statistical standard that
determines for each CLEC performance measurement whether Owest has met
parity. The critical z-value is selected from Table 1 according to the monthly CLEC
volume for the performance measurement. For instance , if the GLEC sample size for
that month is 100, the critical z-value is 1.645 for the statistical testing of that parity.
performance measurement.
Determination of the Amount of Payment: Tier 1 payments to CLEC , except
as provided for in sections 6.3 and 10., are calculated and paid monthly based on
the number of performance measurements exceeding the critical z-value. Payments
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision Octoqer 31 , 2003 - 4-
Exhibit K
will be made on either a per occurrence or per measurement basis, depending upon
the performance measurement, using the dollar amounts specified in Table 2 below.
The dollar amounts vary depending upon whether the performance measurement is
designated High , Medium , or Low and escalate depending upon the number of
consecutive months for which awest has not met the standard for the particular
measu rement
The escalation of payments for consecutive months of non-conforming
service will be matched month for month with de-escalation of payments for every
month of conforming service. For example, if awest has four consecutive monthly
misses" it will make payments that escalate from month 1 to month 4 as shown in
Table 2. If, in the next month , service meets the standard, awest makes no
payment A payment "indicator" de-escalates down from month 4 to month 3.
awest misses the following month, it will make payment at the month 3 level of Table
2 because that is where the payment "indicator" presently sits. If awest misses again
the following month , it will make payments that escalate back to the month 4 level.
The payment level will de-escalate back to the original month 1 level only upon
conforming service sufficient to move the payment "indicator" back to the month
level.
For those performance measurements listed on Attachment 2
Performance Measurements Subject to Per Measurement Caps " payment to a
GLEC in a single month shall not exceed the amount listed in Table 2 below for the
Per Measurement" category. For those performance measurements listed on
Attachment 2 as "Performance Measurements Subject to Per Measurement
Payments " payment to a GLEC will be the amount set forth in Table 2 below under
the section labeled "per measurement"
TABLE 2: TIER-1 PAYMENTS TO CLEC
Per Occurrence
Measurement Group Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
and each
following
month
High $150 $250 $500 $600 $700 $800
Medium $ 75 $150 $300 $400 $500 $600
Low $ 25 $ 50 $100 $200 $300 $400
Per Measurement
Cap
Measurement Group Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
and each
following
month
High $25 000 $50 000 $75 000 $100,000 $125 000 $150 000
Medium $10 000 $20 000 $30 000 $ 40 000 $ 50 000 $ 60 000
Low $ 5 000 $10 000 $15 000 $20,000 $ 25 000 $ 30,000
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003 - 5-
Exhibit K
For collocation , CP-2 and CP-4 performance measurements shall be relied
upon for delineation of collocation business rules. For purposes of calculating Tier
payments, collocation jobs and collocation feasibility studies that are later than the
due date will have a per day payment applied according to Table 3. The per day
payment will be applied to any collocation job in which the feasibility study is provided
or the collocation installation is completed later than the scheduled date. The
calculation of the payment amount will be performed by applying the per day
payment amounts as specified in Table 3. Thus, for days 1 through 10, the payment
is $150 per day. For days 11 through 20, the payment is $300 per day and so on.
TABLE 3: TIER-1 COLLOCATION PAYMENTS TO CLECS
Days Late Completion Date Feasibility Study
1 to 10 days $150/day $45/day
11 to 20 days $300/day $90/day
21 to 30 days $450/day $135/day
31 to 40 days $600/day $180/day
More than 40 days 000/day $300/day
6.4 A minimum payment calculation shall be performed at the end of each year
for each CLEC with annual order volumes of no more than 1 200. The payment shall
be calculated by multiplying $2 000 by the number of months in which at least one
payment was due to the CLEC. To the extent that the actual CLEC payment for the
year is less than the product of the preceding calculation , Owest shall make an
additional payment equal to the difference.
Tier 2 Payments to the State
Payments to the State shall be limited to the performance measurements
designated in section 7.4 for Tier 2 per measurement payments and in Attachment
for per occurrence payments and which have at least 1 0 dat~ points each month for
the period payments are being calculated. Similar to the Tier 1 structure, Tier 2
measurements are categorized as High, Medium, and Low and the amount of
payments for non-conformance varies according to this categorization.
Determination of Non-Conforming Measurements: The determination of non-
conformance will be based upon the aggregate of all CLEC data for each Tier 2
performance measurement. Non-conforming service is defined in section 4.2 (for
parity measurements) and 4.3 (for benchmark measurements), except that a 1.645
critical z-value shall be used for Tier 2 parity measurements that have Tier
counterparts. The critical z-value is the statistical standard that determines for each
performance measurement whether Owest has met parity.
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003 - 6-
Exhibit K
Determination of the Amount of Payment: Except as provided in section 7.4
Tier 2 payments are calculated and paid monthly based on the number
performance measurements failing performance standards for a third consecutive
month, or if two out of three consecutive months in the 12 month period have been
missed , the second consecutive month for Tier 2 measurements with Tier
counterparts. For Tier 2 measurements that do not have Tier 1 counterparts
payments are calculated and paid monthly based on the number of performance
measurements exceeding the critical z-values, identified in section 5., in any single
month. Payment will be made on either a per occurrence or per measurement basis
whichever is applicable to the performance measurement, using the dollar amounts
specified in Table 4 or Table 5 below. Except as provided in section 7.4, the dollar
amounts vary depending upon whether the performance measurement is designated
High, Medium , or Low:
For those Tier 2 measurements listed on Attachment 2 as "Performance
Measurements Subject to Per Measurement Caps " payment to the State in a single
month shall not exceed the amount listed in Table 4 for the "Per Measurement"
category.
TABLE 4: TIER-2 PAYMENTS TO STATE FUNDS
Per Occurrence
Measurement Group
High
$500
Medium
$300
Low
$200
Per Measurement/Ca
Measurement Grou
Hi h
Medium
Low
$75,000
$30 000
$20,000
7.4 Performance Measurements Subject to Per Measurement Payment:The
following Tier 2 performance measurements shall have their performance results
measured on a region-wide (14 state) basis. Failure .to meet the performance
standard, therefore, will result in a per measurement payment in each of the Owest
in-region 14 states adopting this PAP. The performance measurements are:
GA-1: Gateway Availability - IMA-GUI
GA-2: Gateway Availability - IMA-EDI
GA-3: Gateway Availability - EB-
GA-4: System Availability EXACT
GA-6: Gateway Availability - GUI-Repair
PO-1: Pre-Order/Order Response Times
OP-2: Call Answered within Twenty Seconds Interconnect Provisioning
Center
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003 - 7-
Exhibit K
MR-2: Calls Answered within Twenty Seconds - Interconnect Repair Center
GA-1 has three sub-measurements: GA-, GA-, and GA-1C. PO-1 shall have
two sub-measurements: PO-1A and PO-1B. PO-1A and PO-1B shall have theirtransaction types aggregated together. PO-20 shall have two product
disaggregations - Resale POTS / UNE-P (POTS) and Unbundled Loops (Analog and
Non-Loaded 2-Wire).
For these measurements, Qwest will make a Tier 2 payment based upon monthly
performance results according to Table 5: Tier 2 Per Measurement Payments to
State Funds.
TABLE 5: TIER-2 PER MEASUREMENT PAYMENTS TO STATE FUNDS
Measuremen Performance State Payment 14 State Payment
GA-1 ,3,4,1 % or lower 000 $14 000
:::-1 % to 3%$10 000 $140,000
:::-3% to $20 000 $280 000
:::-5%$30 000 $420,000
PO-2 sec. Or less 000 $14 000
:::-2 sec.000 $70 000
sec.
:::-5 sec. to 10 $10 000 $140,000
sec.
:::-10 sec.$15 000 $210 000
OP-2/MR-1 % or lower 000 $14 000
:::-1 % to 3%000 $70 000
:::-3% to $10 000 $140 000
:::-5%$15 000 $210 000
PO-
Resale 1 % or lower $500 000
POTS /
UNE-:::-1% to 500 $35,000
(POTS)
:::-3% to $5,000 $70,000
:::-5%500 $105,UOO
- Unbundled 1 % or lower $500 $7,000
Loops
(Analog :::-1 % to 3%$2,500 $35 000
and 2-Wire
Non-:::-3% to $5,000 $70,000
Loaded)
:::-5%500 $105,000
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003 - 8-
Exhibit K
Step by Step Calculation of Monthly Tier 1 Payments to CLEC
Application of the Critical Z-Values: Qwest shall identify the Tier 1 parity
performance measurements that measure the service provided to CLEC by Qwest for
the month in question and the critical z-value from Table 1 in section 5.0 that shall be
used for purposes of statistical testing for each particular performance measurement.
The statistical testing procedures described in section 4.0 shall be applied. For the
purpose of determining the critical z-values, each disaggregated category of a
performance measurement is treated as a separate sub-measurement. The critical
z-value to be applied is determined by the CLEC volume at each level of
disaggregation or sub-measurement.
Performance Measurements for which Tier 1 Payment is Per Occurrence:
Performance Measurements that are Averages or Means:
1 Step 1: For each performance measurement, the average or the mean that
would yield the critical z-value shall be calculated. The same denominator as the oneused in calculating the z-statistic for the measurement shall be used. (For
benchmark measurements, the benchmark value shall be used.
2 Step 2: The percentage differences between the actual averages and the
calculated averages shall be calculated. The calculation is % diff = (CLEC result
Calculated Value)/Calculated Value. The percent difference shall be capped at a
maximum of 100%. In all calculations of percent differences in sections 8.0 and 9.
the calculated percent differences is capped at 100%.
2 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the percentage calculated in the previous step and the per
occurrence dollar amounts from the Tier 1 Payment Table 'shall determine the
payment to the CLEC for each non-conforming performance measurement.
8.2.Performance Measurements that are Percentages:
1 Step 1: For each performance measurement, the percentage that would yield
the critical z-value shall be calculated. The same denominator as the one used in
calculating the z- statistic for the measurement shall be used. (For benchmark
measurements, the benchmark value shall be used.
2 Step 2: The difference between the actual percentages for the CLEC and the
calculated percentages shall be determined.
3 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference in percentage calculated in the previous step,
and the per occurrence dollar amount taken from the Tier 1 Payment Table, to
awest Idaho SGA T Third Revised Exhibit K , 2nd Revision October 31 , 2003 - 9-
Exhibit K
determine the payment to the CLEC for each non-conforming performance
measurement.
Performance Measurements that are Ratios or Proportions:
1 Step 1: For each performance measurement the ratio that would yield the
critical z-value shall be calculated. The same denominator as the one used
calculating the z-statistic for the measurement shall be used. (For benchmark
measurements, the benchmark value shall be used.
2 Step 2: The absolute difference between the actual rate for the CLEC and
the calculated rate shall be determined.
3 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference calculated in the previous step, and the per
occurrence dollar amount taken from the Tier 1 Payment Table, to determine the
payment to the CLEC for each non-conforming performance measurement.
Performance Measurements for which Tier 1 Payment is Per Measure:
For each performance measurement where Qwest fails to meet the standard,
the payment to the CLEC shall be the dollar amount shown on the "per measure
portion of Table 2: Tier 1 Payments to CLEC.
Step by Step Calculation of Monthly Tier 2 Payments to State Funds
Application of the Critical Z-Value: Qwest shall identify the Tier 2 parity
performance measurements that measure the service provided by Qwest to all
CLECs for the month in question. The statistical testing procedures described in
section 4.0 shall be applied, except that a 1.645 critical z-value shall be used for Tier
parity measurements that have Tier 1 counterparts For Tier 2 parity
measurements that do not have Tier 1 counterparts , the statistical testing procedures
described section 4.0 shall be applied using the critical z-values identified in section
To determine if Tier 2 payments for performance me~surements listed on
Attachment 1 shall be made in the current month, the following shall be determined.
For Tier 2 measurements that have Tier 1 counterparts, it shall be determined
whether Owest missed the performance standard for three consecutive months, or if
Qwesthas missed the standard in any two out of three consecutive months for the 12
month period and for an additional two consecutive months. For Tier 2
measurements that do not have Tier 1 counterparts, it shall be determined whether
Qwest missed the performance standard for single month. If any of these
conditions are met and there are at least 10 data points for the measurement in each
month , a Tier 2 payment will be calculated and paid as described below and will
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision
10-
October 31 2003
Exhibit K
continue in each succeeding month until Qwest's performance meets the applicable
standard. For Tier 2 measures that have Tier 1 counterparts , the most recent three
months of nonconforming performance data that results in payment liability shall be
averaged to determine payment.
Performance Measurements for which Tier 2 Payment is Per Occurrence:
Performance Measurements that are Averages or Means:
1 Step 1: The monthly average or the mean for each performance
measurement that would yield the critical z-value for each month shall be calculated.
The same denominator as the one used in calculating the z-statistic for the
measurement shall be used. (For benchmark measurements, the benchmark value
shall be used.
2 Step 2: The percentage difference between the actual averages and the
calculated averages for the relevant month(s) shall be calculated. The calculation
for parity measurements is % diff = (actual average - calculated average)/calculated
average. The percent difference shall be capped at a maximum of 100%. In all
calculations of percent differences in section 8.0 and section 9.0, the calculated
percent difference is capped at 100%.
3 Step 3: For each performance measurement, the total number of data points
for the relevant month(s) shall be multiplied by the percentage calculated in the
previous step. The amount (average amount, if more than one month) (rounded to
the nearest integer) is then multiplied by the result of the per occurrence dollar
amount taken from the Tier 2 Payment Table to determine the payment to the State
for each non-conforming performance measurement.
Performance Measurements that are Percentages:
Step 1: For each performance measurement, the monthly percentage that
would yield the critical z-value for each month shall be calculated. The same
denominator as the one used in calculating the z-statistic for lhe measurement shall
be used. (For benchmark measurements, the benchmark value shall be used.
2 Step 2: The difference between the actual percentages and the calculated
percentages for the relevant month(s) shall be calculated. The calculation for parity
measurement is diff = (CLEC result - calculated percentage). This formula shall be
applicable where a high value is indicative of poor performance. The formula shall be
reversed where high performance is indicative of good performance.
3 Step 3: For each performance measurement, the total number of data pointsfor the relevant month(s) shall be multiplied by the difference in percentage
calculated in the previous step. The amount (average amount, if more than one
month)(rounded to the nearest integer) is then multiplied by the result of the per
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision
11-
October 31 , 2003
Exhibit K
occurrence dollar amounts taken from the Tier 2 Payment Table to determine the
payment to the State.
9.4 Performance Measurements that are Ratios or Proportions:
9.4.Step 1: For each performance measurement, the ratio that would yield the
critical z-value for each month shall be calculated. The same denominator as the
one used in calculating the z-statistic for the measurement shall be used. (For
benchmark measurements, the benchmark value shall be used.
9.4.1 Step 2: The difference between the actual rate for the GLEG and the
calculated rate for the relevant month(s) shall be calculated. The calculation is: diff =
(CLEC rate calculated rate). This formula shall apply where a high value is
indicative of poor performance. The formula shall be reversed where high
performance is indicative of good performance.
9.4.2 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference calculated in the previous step for each month.
The amount (average amount, if more than one month)(rounded to the nearest
integer) is then multiplied by the result of the per occurrence dollar amounts taken
from the Tier 2 Payment Table to determine the payment to the State.
Performance Measurements for which Tier 2 Payment is Per Measure:
For each performance measurement where Owest fails to meet the standard
the payment to the State Fund shall be the dollar amount shown on the "per
measure" portion of the Tier 2 Payment Table.
10.Low Volume, Developing Markets
10.For certain qualifying performance standards, if the aggregate monthly
volumes of CLEGs participating in the PAP are more than 10, but less than 100,
Owest will make Tier 1 payments to CLECs for failure to meet the parity or
benchmark standard for the qualifying performance sub-measurements. The
qualifying sub-measurements are the UNE-P (POTS), megabit resale, and ADSL
qualified loop product disaggregation of OP-, OP-4, OP-5a, M~3, MR-5, MR-7, and
MR-8. If the aggregate monthly CLEC volume is greater than 100, the provisions of
this section shall not apply to the qualifying performance sub-measurement.
10.The determination of whether Owest has met the parity or benchmark
standards will be made using aggregate volumes of CLEGs participating in the PAP.
In the event Owest does not meet the applicable performance standards, a total
payment to affected CLEGs will be determined in accordance with the high , medium,
low designation for each performance measurement (see Attachment 1) and as
described in section 8., except that GLEG aggregate volumes will be used. In the
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 2003
Exhibit K
event the calculated total payment amount to CLECs is less than $5 000, a minimum
payment of $5 000 shall be made. The resulting total payment amount to CLECs will
be apportioned to the affected CLECs based upon each CLEC's relative share of the
number of total service misses.
10.At the six (6)-month reviews, Owest will consider adding to the above list of
qualifying performance sub-measurements new products disaggregation
representing new modes of CLEC entry into developing markets.
11.Payment
11.Payments to CLEC, the State, or the Special Fund shall be made one month
following the due date of the performance measurement report for the month for
which payment is being made. Owest will pay interest on any late payment and
underpayment at the prime rate as reported in the Wall Street Journal. On any
overpayment, Owest is allowed to offset future payments by the amount of the
overpayment plus interest at the prime rate.
11.Payment to CLEC shall be made via bill credits. Bill credits shall be identified
on a summary format substantially similar to that distributed as a prototype to the
CLECs and the Commissions. To the extent that a monthly payment owed to CLEC
under this PAP exceeds the amount owed to Owest by CLEC on a monthly bill
Owest will issue a check or wire transfer to CLEC in the amount of the overage.
Payment to the State shall be made via check or wire transfer.
11.3 A Special Fund shall be created for the purpose of payment of an
independent auditor and audit costs as specified in section 15.0 and payment of
other expenses incurred by the participating Commissions in the regionaladministration of the PAP.
11.1 Owest shall establish the Special Fund as an interest bearing escrow account
upon the first FCC section 271 approval of the PAP applicable to a participating state
Commission. Owest shall be authorized to withhold and deposit into the Special
Fund one-half of all Tier 2 payments. The cost of the escrow account will be paid
for from account funds.
11.2 Commissions participating in the Special Fund shall appoint a person
designated to administer and authorize disbursement of funds. All claims against the
fund shall be presented to the Commissions' designates and shall be the
responsibility of the participating Commissions.
11.3 Owest shall advance funds to meet initial claims against the Special Fund to
the extent Tier 2 contributions are insufficient. Such funds shall not exceed $500,000
and shall be reduced appropriately in the event that at least six states in which the
OPAP is in effect do not agree to participate in the Special Fund. Upon a
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
determination by the participating Commissions that the Special Fund has become
self-sustaining or is no longer required Owest shall be allowed to recover any such
advances plus interest at the rate that the escrow account would have earned.
11.3.4 Upon the execution of a memorandum of understanding with the Idaho
Commission Owest shall establish an Idaho Discretionary Fund as a separate
interest bearing escrow account. Owest shall deposit into the Discretionary Fund the
remaining balance of Tier 2 payments after disbursement of Tier 2 payments to the
Special Fund pursuant to section 13.1. The Commission shall appoint a person
designated to administer and authorize disbursements of funds from the
Discretionary Fund. Disbursements from the Discretionary Fund shall be limited
competitively neutral Idaho telecommunications initiatives. The costs of the
Discretionary Fund will paid for from the account's funds.
12.Cap on Tier 1 and Tier 2 Payments
12.There shall be a cap on the total payments made by Owest for a 12 month
period beginning with the effective date of the PAP for the State of Idaho. The
annual cap for the State of Idaho shall be 36% of ARMIS Net Return, recalculated
each year based upon the prior year s Idaho ARMIS results , subject to any
applicable adjustment permitted pursuant to section 12.2. Owest shall submit to the
Commission the calculation of each year s cap no later than 30 days after submission
of ARMIS results to the FCC. CLEC agrees that this amount constitutes a maximum
annual cap that shall apply to the aggregate total of Tier 1 liquidated damages,
including any such damages paid pursuant to this Agreement, any other
interconnection agreement, or any other payments made for the same underlying
activity or omission under any other contract, order or rule and Tier 2 assessments or
payments made by Owest for the same underlying activity or omission under any
other contract, order or rule.
12.The 36% annual cap may be increased to 44% or decreased to 30% of
ARMIS Net Return as follows:
12.1 An increase in the cap of a maximum of 4 percentage' points at anyone time
(Le., first to 40 percent) shall occur upon order by the Commission if the cap has
been exceeded for any consecutive period of 24 months by that same 4 percent or
more, provided that: (a) the Commission has determined that tl-1e preponderance of
the evidence shows Owest could have remained beneath the cap through
reasonable and prudent effort, and (b) the Commission has made that determination
after having available to it on the record the results of audits and root cause
analyses, and provided an opportunity for Owest to be heard.
12.2 A decrease in the cap of a maximum of 4 percentage points at anyone time
shall occur upon order by the Commission after performance for any consecutive
period of 24 months in which total payments are 8 or more percentage points below
the cap amount, provided that: (a) the Commission has determined that the
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
preponderance of the evidence shows the performance results underlying those
payments results from an adequate Owest commitment to meeting its responsibilities
to provide adequate wholesale service and to keeping open its local markets and (b)
the Commission shall have made that determination after providing all interested
parties an opportunity to be heard.
12.3 The provisions of 12.1 and 12.2 shall be in effect for the next 24 month
period commencing with the end of the 24 month period upon which the
Commission s order is based.
12.If the annual cap is reached, each CLEC shall , as of the end of the year, be
entitled to receive the same percentage of its total calculated Tier 1 payments.
order to preserve the operation of the annual cap, the percentage equalization shall
take place as follows:
12.1 The amount by which any month'total year-to-date Tier 1 and Tier 2
payments exceeds the cumulative monthly cap (defined as 1/12th of the annual cap
times the cumulative number of months to date) shall be calculated and apportioned
between Tier 1 and Tier 2 according to the percentage that each bore of total
payments for the year-to-date. The Tier 1 apportionment resulting of this calculation
shall be known as the "Tracking Account"
12.2 The Tier 1 apportionment shall be debited against the monthly payment due
to each CLEC, by applying to the year-to-date payments received by each the
percentage necessary to generate the required total Tier 1 amount
12.3 The Tracking Amount shall be apportioned among all CLECs so as to provide
each with payments equal in percentage of its total year to date Tier 1 payment
calculations.
. 12.3.4 This calculation shall take place in the first month that the year-to-date total
Tier 1 and Tier 2 payments are expected to exceed the cumulative monthly cap and
for each month of that year thereafter. Owest shall recover any debited amounts by
reducing payments due to any CLEC for that month and any succeeding months, as
necessary.
13.Limitations
13.The PAP shall not become available in the State unless and until Owest
receives effective section 271 authority from the FCC for that State.
13.Owest will not be liable for Tier 1 payments to CLEC in an FCC approved
state until the Commission has approved an interconnection agreement between
CLEC and Owest which adopts the provisions of this PAP.
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31, 2003
Exhibit K
13.Qwest shall not be obligated to make Tier 1 or Tier 2 payments for any
measurement if and to the extent that non-conformance for that measurement was
the result of any of the following: 1) with respect to performance measurements with
a benchmark standard , a Force Majeure event as defined in section 5.7 of the SGAT.
Qwest will provide notice of the occurrence of a Force Majeure event within 72 hours
of the time Qwest learns of the event or within a reasonable time frame that Qwest
should have learned of it; 2) an act or omission by a CLEC that is contrary to any of
its obligations under its interconnection agreement with Qwest or under federal or
state law; an act or omission by CLEC that is in bad faith. Examples of bad faith
conduct include, but are not limited to: unreasonably holding service orders and/or
applications
, "
dumping" orders or applications in unreasonably large batches
dumping" orders or applications at or near the close of a business day, on a Friday
evening or prior to a holiday, and failing to provide timely forecasts to Qwest for
services or facilities when such forecasts are explicitly required by the SGAT; 3)
problems associated with third-party systems or equipment, which could not have
been avoided by Qwest in the exercise of reasonable diligence provided, however
that this third party exclusion will not be raised in the State more than three times
within a calendar year. If a Force Majeure event or other excusing event recognized
in this section merely suspends Qwest's ability to timely perform an activity subject to
a performance measurement that is an interval measure, the applicable time frame in
which Qwest's compliance with the parity or benchmark criterion is measured will be
extended on an hour-for-hour or day-for-day basis, as applicable, equal to the
duration of the excusing event.
13.1 Qwest will not be excused from Tier 1 or Tier 2 payments for any reason
except as described in Section 13.0. Qwest will have the burden of demonstrating
that its non-conformance with the performance measurement was excused on one of
the grounds described in this PAP. A party may petition the Commission to require
Qwest to deposit disputed payments into an escrow account when the requesting
party can show cause, such as grounds provided in the Uniform Commercial Code
for cases of commercial uncertainty.
13.2 Notwithstanding any other provision of section 13 of this QPAP, Qwest shall
not be excused for failing to provide such performance -that Qwest could reasonably
have been expected to deliver assuming that it had designed, implemented, staffed,
provisioned, and otherwise provided for resources reasonably required to meet
foreseeable yolumes and patterns of demands upon its resources by CLECs.
13.4 Qwest's agreement to implement these enforcement terms , and specifically
its agreement to pay any "liquidated damages" or "assessments" hereunder, will not
be considered as an admission against interest or an admission of liability in any
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
legal , regulatory, or other proceeding relating in whole or in part to the same
performance.
13.4.1 CLEC may not use: 1) the existence of this enforcement plan; or 2) Owest's
payment of Tier -1 "liquidated damages" or Tier 2 "assessments" as evidence that
Owest has discriminated in the provision of any facilities or services under Sections
251 or 252, or has violated any state or federal law or regulation. Owest's conduct
underlying its performance measures, however are not made inadmissible by its
terms.
13.4.2 By accepting this performance remedy plan CLEC agrees that Owest's
performance with respect to this remedy plan may not be used as an admission of
liability or culpability for a violation of any state or federal law or regulation. (Nothing
herein is intended to preclude Owest from introducing evidence of any Tier 1
liquidated damages" under these provisions for the purpose of offsetting the
payment against any other damages or payments a CLEC might recover.) The terms
of this paragraph do not apply to any proceeding before the Commission or the FCC
to determine whether Owest has met or continues to meet the requirements of
section 271 of the Act.
13.By incorporating these liquidated damages terms into the PAP, Owest and
CLEC accepting this PAP agree that proof of damages from any non-conforming
performance measurement would be difficult to ascertain and , therefore, liquidated
damages are a reasonable approximation of any contractual damages that may
result from a non-conforming performance measurement. Owest and CLEC further
agree that Tier 1 payments made pursuant to this PAP are not intended to be a
penalty. The application of the assessments and damages provided for herein is not
intended to foreclose other noncontractual legal and non-contractual regulatory
claims and remedies that may be available to a CLEC.
13.This PAP contains a comprehensive set of performance measurements
statistical methodologies , and payment mechanisms that are designed to function
together, and only together, as an integrated whole. To elect the PAP, CLEC must
adopt the PAP in its entirety, in its interconnection agreement with Owest.
electing remedies under the PAP, CLEC waives any causes of action based on a
contractual theory of liability, and any right of recovery under any other theory of
liability (including but not limited to a state utility regulatory commission or Federal
Communications Commission rule or order) to the extent such recovery is related to
harm compensable under a contractual theory of liability (even though it is sought
through a noncontractual claim, theory, or cause of action).
13.
Qwest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
If for any reason a CLEC agreeing to this OPAP is awarded compensation for the
same harm for which it received payment under the OPAP , the court or other
adjudicatory body hearing such a claim may offset the damages resulting from such
claim against payments made for the same harm.
13.Owest shall not be liable for both Tier 2 payments under the PAP and
assessments, sanctions, or other payments for the same underlying activity or
omission pursuant to any Commission order or service quality rules.
13.Whenever a Owest Tier 1 payment to an individual CLEC exceeds $3 million
in a month , Owest may commence a proceeding to demonstrate why it should not be
required to pay any amount in excess of the $3 million. Upon timely commencement
of the proceeding, Owest must pay the balance of payments owed in excess of $3
million into escrow, to be held by a third-party pending the outcome of the
proceeding. To invoke these escrow provisions, Qwest must file , not later than the
due date of the Tier 1 payments , its application. Qwest will have the burden of proof
to demonstrate why, under the circumstances, it would be unjust to require it to make
the payments in excess of $3 million. If Owest reports non-conforming performanceto CLEC for three consecutive months on 20% or more of the measurements
reported to CLEC and has incurred no more than $1 million in liability to CLEC, then
CLEC may commence a similar proceeding. In any such proceeding CLEC will have
the burden of proof to demonstrate why, under the circumstances, justice requires
Owest to make payments in excess of the amount calculated pursuant to the terms of
the PAP. The disputes identified in this section shall be resolved in a manner
specified in the Dispute Resolution section of the SGA T with the CLEC.
14.Reporting
14.Upon receiving effective section 271 authority from the FCC for a state
Qwest will provide CLEC that has an approved interconnection agreement with
Qwest, a monthly report of Qwest's performance for the measurements identified in
the PAP by the last day of the month following the month'for which performance
results are being reported. However, Owest shall have a grace period of five
business days, so that Qwest shall not be deemed out. of compliance with its
reporting obligations before the expiration of the five business day grace period.
Qwest will collect, analyze, and report performance data for the '"'measurements listed
on Attachment 1 in accordance with the most recent version of the PIDs. Upon
CLEC's request, data files of the CLEC's raw data, or any subset thereof, will be
transmitted, without charge, to CLEC in a mutually acceptable format, protocol, and
transmission medium.
14.Qwest will also provide the Commission a monthly report of aggregate CLEC
performance results pursuant to the PAP by the last day of the month following the
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003
18-
Exhibit K
month for which performance results are being reported. However, Owest shall have
a grace period of five business days , so that Owest shall not be deemed out of
compliance with its reporting obligations before the expiration of the five business day
grace period. Individual CLEC reports of participating CLECs will also be available to
the Commission upon request. By accepting this PAP, CLEC consents to Owest
providing CLEC's report and raw data to the State Commission. Pursuant to the
terms of an order of the Commission, Owest may provide GLEe-specific data that
relates to the PAP, provided that Owest shall first initiate any procedures necessary
to protect the confidentiality and to prevent the public release of the information
pending any applicable Commission procedures and further provided that Owest
provides such notice as the Commission directs to the CLEC involved , in order to
allow it to prosecute such procedures to their completion. Data files of participating
CLEC raw data, or any subset thereof, will be transmitted , without charge, to the
Commission in a mutually acceptable format, protocol, and transmission form.
14.In the event Owest does not provide CLEC and the Commission with a
monthly report by the last day of the month following the month for which
performance results are being reported , Owest will pay to the State a total of $500 for
each business day for which performance reports are 6 to 10 business days past the
due date; $1 000 for each business day for which performance reports are 11 to 15
business days past the due date; and $2 000 for each business day for which
performance results are more than 15 business days past the due date. If reports
are on time but are missing performance results , Owest will pay to the State a total of
one-fifth of the late report amount for each missing performance measurement
subject to a cap of the full late report amount. These amounts represent the total
payments for omitting performance measurements or missing any report deadlines
rather than a payment per report. Prior to the date of a payment for late reports,
Owest may file a request for a waiver of the payment, which states the reasons for
the waiver. The Commission may grant the waiver, deny the waiver, or provide anyother relief that may be appropriate.
14.4 To the extent that Owest recalculates payments made under this PAP, such
recalculation shall be limited to the preceding three years (measured from the later of
the provision of a monthly credit statement or payment due date). Owest shall retain
sufficient records to demonstrate fully the basis for its calculations for long enough to
meet this potential recalculation obligation. CLEC verification or recalculation efforts
should be made reasonably contemporaneously with Owest measurements. In any
event, Owest shall maintain the records in a readily useable format for one year. For
the remaining two years, the records may be retained in archived format. Any
payment adjustments shall be subject to the interest rate provisions of section 11.
15.Integrated Audit Program/Investigations of Performance Results
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
15.Audits of the PAP shall be conducted in a two-year cycle under the auspices
of the participating Commissions in accordance with a detailed audit plan developed
by an independent auditor retained for a two-year period. The participating
Commissions shall select the independent auditor with input from Qwest and CLECs.
15.1 The participating Commissions shall form an oversight committee of
Commissioners who will choose the independent auditor and approve the audit plan.
Any disputes as to the choice of auditor or the scope of the audit shall be resolvedthrough a vote of the chairs of the participating commissions pursuant to Section
15.1.4.
15.2 The audit plan shall be conducted over two years. The audit plan will identifythe specific performance measurements to be audited , the specific tests to
conducted, and the entity to conduct them. The audit plan will give priority to auditing
the higher risk areas identified in the ass report. The two-year cycle will examine
risks likely to exist across that period and the past history of testing, in order to
determine what combination of high and more moderate areas of risk should beexamined during the two-year cycle. The first year of a two-year cycle will
concentrate on areas most likely to require follow-up in the second year.
15.3 The audit plan shall be coordinated with other audit plans that may be
conducted by other state commissions so as to avoid duplication , shall not impede
Qwest's ability to comply with the other provisions of the PAP and should be of a
nature and scope that can be conducted in accordance with the reasonable course of
Qwest's business operations.
15.1.4 Any dispute arising out of the audit plan, the conduct of the audit, or audit
results shall be resolved by the oversight committee of Commissioners. Decisions of
the oversight committee of Commissioners may be appealed to a committee of thechairs of the participating Commissions.
15.Owest may make management processes more accurate or more efficient to
perform without sacrificing accuracy. These changes are at Qwest's discretion but
will be reported to the independent auditor in quarterly meetings in which the auditor
may ask questions about changes made in the Qwest measurement regimen. The
meetings, which will be limited to Owest and the independent auditor, will permit an
independent assessment of the materiality and propriety of any Owest changes
including, where necessary, testing of the change details by the independent auditor.
The information gathered by the independent auditor may be the basis for reports bythe independent auditor to the participating Commissions and, where the
Commissions deem it appropriate, to other participants.
15.In the event of a disagreement between Qwest and CLEC as to any issue
regarding the accuracy or integrity of data collected, generated , and reported
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
pursuant to the PAP , Owest and the CLEC shall first consult with one another and
attempt in good faith to resolve the issue. If an issue is not resolved within 45 days
after a request for consultation , CLEC and Owest may, upon a demonstration of good
cause, (e., evidence of material errors or discrepancies) request an independent
audit to be conducted , at the initiating party s expense. The independent auditor will
assess the need for an audit based upon whether there exists a material deficiency in
the data or whether there exists an issue not otherwise addressed by the audit plan
for the current cycle. The dispute resolution provision of section 18.0 is available to
any party questioning the independent auditor s decision to conduct or not conduct a
CLEC requested audit and the audit findings, should such an audit be conducted. An
audit may not proceed until dispute resolution is completed. Audit findings will
include: (a) general applicability of findings and conclusions (Le., relevance to
CLECs or jurisdictions other than the ones causing test initiation), (b) magnitude of
any payment adjustments required and, (c) whether cost responsibility should be
shifted based upon the materiality and clarity of any Owest non-conformance with
measurement requirements (no pre-determined variance is appropriate, but should
be based on the auditor's professional judgment). CLEC may not request an audit of
data more than three years from the later of the provision of a monthly credit
statement or payment due date.
15.4 Expenses for the audit of the PAP and any other related expenses, except
that which may be assigned under section 15.3, shall be paid first from the Tier 2
funds in the Special Fund. For Idaho , the remainder of the audit expenses will be
paid by Owest.
15.Owest will investigate any second consecutive Tier 2 miss to determine the
cause of the miss and to identify the action needed in order to meet the standard set
forth in the performance measurements. To the extent an investigation determines
that a CLEC was responsible in whole or in part for the Tier 2 misses, Owest shall
receive credit against future Tier 2 payments in an amount 'equal to the Tier 2
payments that should not have been made. The relevant portion of subsequent Tier
2 payments will not be owed until any responsible CLEC problems are corrected. For
the purposes of this sub-section, Tier 1 performance measurements that have not
been designated as Tier 2 will be aggregated and the aggregate results will beinvestigated pursuantto the terms of this Agreement.
16.Reviews
16. 1 Every six (6) months, beginning six months after the effective date of section
271 approval by the FCC for the state of Idaho, Owest, CLECs, or the Idaho Public
Utilities Commission may initiate a review of the performance measurements to
determine whether measurements should be added, deleted, or modified; whetherthe applicable benchmark standards should be modified or replaced by parity
standards; and whether to move a classification of a measurement to High, Medium
or Low, Tier 1 or Tier 2. The criterion for reclassification of a measurement shall be
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31, 2003
Exhibit K
whether the actual volume of data points was less or greater than anticipated.
Criteria for review of performance measurements , other than for possible
reclassification , shall be whether there exists an omission or failure to capture
intended performance, and whether there is duplication of another measurement. Any
disputes regarding adding, deleting, or modifying performance measurements shall
be resolved pursuant to a proceeding before the Commission and subject to judicial
review. No new performance measurements shall be added to this PAP that have
not been subject to observation as diagnostic measurements for a period of 6
months. Any changes made at the six-month review pursuant to this section shall
apply to and modify this agreement between Qwest and CLEC, subject to a stay,
modification or reversal upon appeal or judicial review.
16.Notwithstanding section 16., if any agreements on adding, modifying
or deleting performance measurements as permitted by section 16.1 are reached
between Qwest and CLECs participating in an industry Regional Oversight
Committee (ROC) PID administration forum, those agreements shall be incorporated
into the QPAP and modify the agreement between CLEC and Qwest at any time
those agreements are submitted to the Commission, whether before or after a six-
month review.
16.For the first twelve months that any changes made pursuant to paragraphs
16.1 or 16.1 are in effect, Qwest's liability for such changes shall be limited to 10%
of the monthly payments that Qwest would have made absent the effect of such
changes as a whole. This provision shall be referred as "the 10% payment collar.
Such payment limitation shall be accomplished by factoring the payments resulting
from the changes to ensure that such payments remain within 10% of the payments
Qwest would have made absent such changes.
16.In the event that the Commission adds , modifi~s, or reclassifies a
performance measurement that has not been agreed upon in the ROC PID
administration forum process in 16., the 10% payment collar shall remain in effect
unless removed by the Commission pursuant to this section. If, after a minimum of 6
months of payments to a CLEC, Qwest's payments have be.en limited by the 10%
payment collar to 80% or less of what the total payments would have been absent
the collar for the preceding 6-month period, the Commission may, upon motion by an
affected CLEC, conduct a record proceeding to determine whether the 1 0% payment
collar should be removed from any such performance measure. The Commission
can prospectively remove the 10% collar for Tier 1 payments to affected CLEC(s) for
any such performance measure upon a demonstration through a record proceeding
and a Commission determination that the total payments to the CLEC(s) under the
QPAP were inadequate to compensate CLEC(s) for actual harm incurred during the
same period and upon a determination that such change is otherwise necessary and
appropriate and in the public interest.
16.Two years after the effective date of the first FCC 271 approval of the PAPthe participating Commissions may conduct a joint review by a independent third
Owest Idaho SGAT Third Revised Exhibit K, 2nd Revision October 31 , 2003
22-
Exhibit K
party to examine the continuing effectiveness of the PAP as a means of inducing
compliant performance. This review shall not be used to open the PAP generally to
amendment, but would serve to assist Commissions in determining existing
conditions and reporting to the FCC on the continuing adequacy of the PAP to serve
its intended functions. The expense of the reviews shall be paid from the Special
Fund.
16.Qwest will make the PAP available for CLEC interconnection agreements
until such time as Qwest eliminates its Section 272 affiliate. At that time, the
Commission and Qwest shall review the appropriateness of the PAP and whether its
continuation is necessary. However, in the event Qwest exits the interLA T A market
that State PAP shall be rescinded immediately.
17.Voluntary Performance Assurance Plan
This PAP represents Qwest's voluntary offer to provide performance assurance.
Nothing in the PAP or in any conclusion of non-conformance of Qwest's service
performance with the standards defined in the PAP shall be construed to be , of itself
non-conformance with the Act.
18.Dispute Resolution
For the purpose of resolving disputes over the meaning of the provisions of the PAP
and how they should be applied , the dispute resolution provisions of the SGAT
section 5., shall apply whether the CLEC uses the SGA T in its entirety or elects to
make the PAP part of its interconnection agreements (Le., the unique dispute
resolution provisions of interconnection agreements should not apply).
Owest Idaho SGA T Third Revised Exhibit K, 2nd Revision
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October 31 , 2003
Exhibit K
Attachment 1: Tier 1 and Tier 2 Performance Measurements Subject to Per Occurrence
Payment
Performance Measurement Tier 1 Payments Tier 2 Payments
low Med low Med High
Hiqh
GATEWAY
Timely Outaqe Resolution GA-
PRE-ORDER/ORDERS
lSR Rejection Notice Interval PO-
Firm Order Confirmations On Time PO-
Work Completion Notification Timeliness PO-
Billinq Completion Notification Timeliness PO-
Jeopardy Notice Interval PO-
Timely Jeopardy Notices PO-
Release Notifications PO-
ORDERING AND PROVISIONING
Installation Commitments Met OP-
Installation Intervals OP-
New Service Quality OP-
Delayed Days OP-
Number Portability Timeliness OP-
Coordinated Cuts On Time Unbundled OP-13a
loops
lNP Disconnect Timeliness OP-
MAINTENANCE AND REPAIR
Out of Service Cleared within 24 hours MR-
All Troubles Cleared within 4 hours MR-
Mean time to Restore MR-
Repair Repeat Report Rate MR-
Trouble Rate MR-lNP Trouble Reports Cleared within 24 MR-
Hours
lNP Trouble Reports-Mean Time MR-
Restore
BilLING
Time to Provide Recorded Usaqe Records BI-
Billinq Accuracy-Adjustments for Errors BI-
Billinq Completeness BI-4
NElWORK PERFORMANCE
Trunk Blockinq NI-
NXX Code Activation NP-
Owest Idaho SGAT Third Revised Exhibit K, 2nd Revision October 31,2003 - 24-
Exhibit K
a. PO-3 is limited to PO-3a-, PO-3b-, and PO-3c.
b. PO-6 is included with PO-7 as two "families:" PO-6a/PO-7a and PO-6b/PO-7b. Measurements withineach family share a single payment opportunity with only the measurements with the highest payment being
paid.
COO OP-4 is included with OP-6 as five "families:" OP-4a/OP-, OP-4b/OP-, OP-4c/OP-, OP-4d/OP-, and OP-4e/OP-5. Measurements within each family share a single payment opportunity with only themeasurement with the highest payment being paid.
d. For purposes of the PAP, OP-6a and OP-6b will be combined and treated as one. The combined OP-breaks down to OP-1 (within MSA), OP-2 (outside MSA), OP-3 (no dispatch), OP-4 (zone 1), andOP-5 (zone 2).
awest Idaho SGA T Third Revised Exhibit K, 2nd Revision October 31 , 2003 - 25-