20050614Final Order No 29799.pdf

Office of the Secretary
Service Date
June 14 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
QWEST CORPORATION FOR THE
FURTHER CONSOLIDATION OF RATE
CENTERS IN SOUTHERN IDAHO
CASE NO. QWE-O5-
ORDER NO. 29799
On April 29, 2005 Qwest filed a Petition requesting an Order authorizing the
consolidation of its Meridian and Boise rate centers. The rate centers do not have identical local
calling areas, and consolidation of the two centers would require the Commission to approve
expansion of the local calling areas of the Kuna, Meridian, Middleton and Star exchanges.
Customers in the Boise and Idaho City exchanges have toll-free extended area service (EAS) to
the Lowman exchange, while customers in the Meridian rate center do not. Service is provided
in Lowman by Cambridge Telephone Company.Qwest in its Petition proposed that the
Commission grant one-way EAS between its exchanges and the Lowman exchange, but also
asserted it would implement two-way EAS without compensation for lost access and toll
revenues if Cambridge Telephone decided to expand the Lowman EAS to include the Meridian
exchanges. The Commission, on May 11 , 2005, issued a Notice of Petition and Notice of
Modified Procedure to establish a process for Qwest's Petition.
The Commission previously investigated consolidation of rate centers as a way to
conserve NXX prefixes. In February 2001 , the Commission issued Order No. 28943 , which
consolidated rate centers in Qwest's service area. The Boise rate center approved in that
proceeding includes the Boise and Idaho City exchanges, and the Meridian rate center includes
the Kuna, Meridian, Middleton and Star exchanges. Qwest's Petition asserts that consolidation
of the Boise and Meridian exchanges is necessary for it to port local numbers between Boise and
Meridian for its customers.
The Notice issued by the Commission invited written comments and provided a time
period for filing comments. Staff filed comments recommending the Commission approve
Qwest's Petition for consolidation of the Boise and Meridian rate centers.Staff also
recommended that two-way EAS be implemented between Cambridge Telephone s Lowman
exchange and the Qwest exchanges in the Meridian rate center, with each company bearing any
cost to implement EAS. Cambridge Telephone also filed written comments. Cambridge stated
ORDER NO. 29799
is willing to extend two-way EAS from its Lowman exchange to the Meridian rate center.
Cambridge stated it would not seek reimbursement for its immediate costs of implementing EAS
but did request reimbursement from the state Universal Service Fund (USF) for lost access
revenues in the amount of $1 ,404 per year.
Based on the record presented, the Commission has determined it is appropriate to
approve Qwest's Petition for consolidation of the Boise and Meridian rate centers.The
Commission previously determined that rate center consolidation will help preserve NXX
prefixes, and we would expect consolidation of the Boise and Meridian rate centers to assist in
achieving that objective. It is also undisputed that consolidating the Boise and Meridian rate
centers is necessary to enable Qwest to port local numbers between the Boise and Meridian
exchanges.
Finally, the Commission has determined it is appropriate to approve the resulting
EAS between Lowman ana the Meridian exchanges where both Qwest and Cambridge
Telephone expressed a willingness to implement the EAS. Both companies agreed to bear the
immediate costs of implementing the EAS, and the only cost issue is Cambridge s request for
compensation of lost access revenue from the state USF. The Commission in other cases has
approved USF funds to compensate lost access revenue, and it may be appropriate to do so in
this case. The Commission Staff currently is conducting an audit of Cambridge Telephone, and
so long as the audit does not indicate Cambridge is earning a larger rate of return than authorized
by the Commission, Cambridge can receive compensation for its lost access revenue from the
state USF. The Company identified that amount as $1 404 per year.
The Commission issues this Order approving consolidation of Qwest's Boise and
Meridian rate centers; and expanding the local calling area of the Kuna, Meridian, Middleton and
Star exchanges to include Lowman by implementing two-way EAS between the Qwest
exchanges and the Cambridge Telephone Lowman exchange. The Commission approves
recovery of lost access revenue and authorizes Cambridge to be reimbursed from the state USF
in the amount of $1 404 per year; conditioned on the results of an audit currently underway by
Staff.
ORDER
IT IS HEREBY ORDERED that the Petition of Qwest Corporation for consolidation
of the Boise and Meridian rate centers is approved. As part of the consolidation, the
ORDER NO. 29799
Commission further orders implementation of two-way EAS between Qwest's Meridian, Star
Middleton and Kuna exchanges with the Lowman exchange served by Cambridge Telephone.
The Commission approves recovery of lost access revenue for Cambridge Telephone and
authorizes Cambridge to be reimbursed from the state USF in the amount of $1 404 per year
conditioned on the results of an audit currently underway by Staff.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1'-1
f'4
day of June 2005.
~~
(1
RSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
Je . Jewell
Co mission Secretary
bls/O:QWET05 1 0 ws2
ORDER NO. 29799