20091028Comments.pdf

WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720~0074
(208) 334~0318
IDAHO BAR NO. 3283
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iunq OCT 28 Pl1 3: '6
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702~5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE AMENDMENTS TO )
THE COMMISSION'S TELEPHONE )
CUSTOMER RELATIONS RULES, IDAPA )
31.41.01.000 et seq.). )
)
)
RuL- t--oCr-O(
CASE NO. 31-0901-4101
COMMENTS OF THE
COMMISSION STAFF
The Staff of the Idaho Public Utilities Commission, by and through its attorney of record,
Weldon B. Stutzman, Deputy Attorney General, submits the following comments in support of
the rule changes proposed in the Commission's Notice of Rulemaking issued in the
Administrative Bulletin on October 3,2009.
BACKGROUND
Enactment of federal statutes (Telecommunications Act of 1996) and state statutes
(amendments to the Telecommunications Act of 1988) since the IPUC last revised its Telephone
Customer Relations Rules, IDAP A 31.41.01.000 et seq., have significantly changed the
regulatory objectives for telecommunications companies. The law changes are intended to
encourage competition in telephone services, and the proposed rule changes are consistent with
that objective by simplifying regulatory requirements and allowing companies more flexibilty to
STAFF COMMENTS 1 OCTOBER 28, 2009
respond to customers' service requests, while maintaining some service quality standards related
to basic local exchange service.
Staff held a public workshop on July 28,2009, to address possible changes to the
Telephone Customer Relations Rules (TCRR). In addition to Staff, representatives of AT&T,
Embarq, Frontier, Qwest, TDS Telecom, and Verizon were in attendance at the workshop.
Paricipants discussed the general concepts behind possible revisions to the TCRR. After
considering comments made at the workshop, Staff drafted amendments for the Commission's
review. The Commission subsequently proposed to amend its Telephone Customer Relations
Rules 000~003, 005, 009~ 012, 100~111, 200-207, 300-314, 400~404, 500-503, 600~608 and 700~
704.
Many substantive changes have been proposed and are discussed in greater detail below.
Non-substantive changes to the rules include renumbering, addition oftitles to describe rule
content, and general formatting changes to comply with the Deparment of Administration's
rulemaking requirements that improve legibilty. Staffs comments refer to the proposed rules as
renumbered and re~titled. Where necessary, Staff refers to an existing rule as curently written as
an "existing rule".
The Commission has proposed to eliminate its Telephone Customer Information Rules,
IDAPA 31.41.02.000 et seq., and its Title 62 Telephone Corporation Rules, IDAPA 31.41.01.00
et seq. The cases involving those rule sets are RUL~T~09~02 and RUL-T~09~03, respectively.
Where necessar, the text of rules from both rule sets have been incorporated into the revised
TeRR.
The proposed rule changes clarify, simplify, and modernize the TCRR in recognition of
changes over time within the telecommunications industry and to Federal and state statutes.
Detailed descriptions of procedures are replaced by references to the Commission's Rules of
Procedure. The definition of "Applicant" and "Customer" are combined so that separately
referring to "applicant" throughout the TCRR is no longer necessar. The rules are modernized
by removing references to obsolete services, antiquated terms or services that are no longer
regulated.
STAFF COMMENTS 2 OCTOBER 28, 2009
ST AFF ANALYSIS AND COMMENT
Staff supports the Commission's proposed changes to its Telephone Customer Relations
Rules for the reasons more fully articulated below. Only rules with significant substantive
changes are addressed. The Notice containing the proposed changes is attched.
Rule 001 - Title and Scope
Rule 001 is revised to reflect the change in title of this rule set. It also removes the term
"MTS/WATS" and substitutes more general terms to describe services under the Commission's
authority. A statutory reference to Title 62 is included because the eommission is incorporating
its separate Title 62 rules into the TCRR.
Rule 002 - Written Interpretations - Agency Guidelines
The proposed revision of Rule 002 removes a duplicative reference to Staff
interpretations, which is covered by Rule 009.
Rule 003 - Administrative Appeals
The proposed revision of Rule 003 simplifies and clarifies how formal complaints and
requests for exemption wil be handled. The reference to the Commission's Rules of Procedure
eliminates the need for a detailed description of the filing process in this rule. The revision
incorporates the text of existing Rule 009. Informal review of complaints by the Commission is
covered under revised Rule 401 and the Rules of Procedure and is removed from this rule.
Rule 005 - Definitions
The proposed revision of Rule 005 combines the definition of "Applicant" and
"eustomer' , giving both the same rights and responsibilties in order to simplify this rule and
other rules throughout this rule set. The text regarding minors was removed from Rule 005 and is
now addressed in Rule 301.05. The reference to "good credit" and specific credit requirements
are removed from this rule and addressed in Rule 105. Subsections .02 and .03 were revised to
simplify those definitions. Subsection .07 of existing Rule 005 is eliminated because operator
and directory assistance services are now covered under Subsection .04, which addresses "other
services." Subsection .05 of existing Rule 005 is eliminated and is now covered under the more
general definition of "telephone companies" under Subsection .07.
Rule 009 - Informal Complaints and Interpretations of Rules
The text of existing Rule 009, which addresses rule exemptions, was moved to Rule 003,
which covers Administrative Appeals. As proposed, Rule 009 now addresses informal
STAFF eOMMENTS 3 OCTOBER 28, 2009
complaints and rule interpretations and is revised to remove an obsolete reference to informal
written staff interpretations.
Rule 011 - Incorporation by Reference - Code of Federal Regulations
The proposed revision of Rule 011 removes the reference to the mailing and web address
for the Code of Federal Regulations. It also removes an obsolete reference to the Idaho State
Law Library.
Rule 100 - Deposit Requirements -- LECS
The text of existing Rule 100 was eliminated. All definitions are now found in Rule 005.
Existing Rule 101 was renumbered as Rule 100 and has been revised. As proposed, Subsection
.Ol.a is revised to remove the time limitation for collecting deposits on undisputed outstanding
balances. Under the current competitive environment, telephone companies are more likely to
pursue another course of action rather than asking for a deposit if unpaid bils are discovered.
Subsection .0 l.b.ii is removed because misrepresentation is covered by Subsection .01.d.
Subsection .01.b.iii is obsolete and therefore is eliminated. The changes to Subsection .0L.d are
made for the sake of clarification.
Rule 102 - Explanation for Denial of Service or Requirement of Deposit -- LECS
Rule 102 is revised to remove the requirement that notices must be written. Both written
and oral notices are permitted to provide regulatory flexibility to telephone companies. The
revision also clarifies the right of customers to fie complaints with the Commission. The
proposed changes to Rule 102 make it consistent with its corresponding rule found in the
Commission's Utility Customer Relations Rules IDAP A 3 i .21.01.000.
Rule 103 - Amounts of Deposits -- LECS
The proposed changes to Rule 103 remove any reference to deposits for MTS and only
cover amounts for local exchange service. Under the current competitive environment,
telephone companies are not likely to require a deposit for MTS service biled on the LEC bil.
Rule 105 - Return of Deposits -- LECS
The proposed changes to Subsection .02 simplify the rule by establishing the same terms
for returning a deposit for both residential and small business customers.
Rule 107 - Records of Deposits
Rule i 07 is revised to eliminate the requirement that telephone companies provide a
separate written deposit receipt to customers. The change gives telephone companies the
flexibility to provide deposit information in other ways.
STAFF COMMENTS 4 OCTOBER 28, 2009
Rule 110 - Deposits - MTS Companies
Existing Rule 1 10, which allowed MTS companies to collect "reasonable" deposits, was
eliminated. Given today's competitive environment, MTS companies are less likely to collect
deposits from customers.
Rule 200 - Further Definition - Biling Statement
Rule 200 was revised to add the reference to "goods" to reflect the general practice of
telephone companies billng for both goods and services on customers' bils. Electronic biling
(via email) is growing in popularity, and some customers prefer to conduct as much business as
possible electronically. The rule is revised to expand the definition of "biling statement" to
allow utilties to provide biling information in an electronic format with the customer's consent.
This change is consistent with its corresponding rule found in the Commissions Utility Customer
Relations Rules.
Rule 201 - Issuance of Biling Statements. - Contents of Bils - Residential and Small
Business Service
In December 2008, it was brought to Commission Staffs attention that Qwest bils that
are paid via automatic transactions do not list a due date or transaction date on bils. The
proposed changes to Subsection .01.c addresses customer concerns that current bils do not
reflect when automatic payment transactions wil be processed. Subsection .01.i was changed to
reflect curent industry practices favoring the provision of telephone numbers instead of mailing
addresses for the purose of responding to complaints and inquiries. Subsection.O 1.j combines
existing Subsection .0 1.j and .0 1.k to reflect curent industry marketing and biling practices for
bundled services and flat rate usage plans. Subsection .02 was revised to address the provision
of flat rate service.
The Commission previously granted rule exemptions to Qwest and Frontier to provide
less biling information and make information available in other ways if a customer so chooses.
Order Nos. 30555 and 30621, respectively. The new Subsection .04 allows all telephone
companies to provide less biling information upon customer request on terms consistent with
those rule exemptions previously approved by the Commission.
Rule 202 - Due Date of Bils - Delinquent Bils
Rule 202 was revised to allow for electronic biling and addresses automatic payments.
The revisions to the rule allow automatic payment transactions to occur before the normal due
date with customer consent.
STAFF COMMENTS 5 oeTOBER 28, 2009
Rule 203 - Biling Errors, Biling Under Incorrect Rates, or Failure to Bil
Existing Rules 203 and 204 have been combined into a single rule (Rule 203). The
proposed changes to Rule 203 make it consistent with its corresponding rule found in the
Commission's Utilty Customer Relations Rules. The threshold amount for refunds was
increased from $15 to $25 at the request of telephone companies that participated in the
workshop. Commission Staff receives complaints regarding biling under an inappropriate tariff
schedule, inaccurately biled service and failure to bilL. Staff believes that the proposed revisions
to Rule 203 comply with existing law and provide telephone companies with the appropriate
incentives to provide customers with accurate and timely biling for services rendered.
Rule 204 - Biling Prohibited - Biling Disputes
Existing Rule 204 was eliminated when existing Rules 203 and 204 were consolidated
into a single rule. The newly-revised Rule 204 addresses biling issues, incorporating text from
existing Rules 205 and 401. Rule 204 simplifies the rule and clarifes the procedures for
handling biling disputes. Text from existing Rule 205 is now Subsection .01. Subsection .02
was taken from existing Rule 401.02.
Rule 205 - Responsibilty for Payment of Residential Service Bils
Revised rule 205 was changed to clarify notification requirements in circumstances
where a telephone company intends to transfer a bil to a customer's current service. The
proposed changes to Rule 205 make it consistent with its corresponding rule found in the
Commission's Utility Customer Relations Rules.
Rule 207 - Biling for Other Services
Existing Rule 207, which dealt with required information on bils when telephone
companies biled for other services, was eliminated. Biling information requirements are now
addressed in Rule 201.
Rule 300 - Explanation for Denial of a Service to a Customer
Existing Rule 301 was renumbered and is now Rule 300. Rule 300 is revised to remove
the requirement that notices must be written. Both written and oral notices wil be permitted to
provide regulatory flexibilty to telephone companies. The revision also clarifies the right of
customers to fie complaints with the Commission. The proposed changes to Rule 300 make it
consistent with its corresponding rule found in the Commission's Utilty Customer Relations
Rules.
STAFF COMMENTS 6 OCTOBER 28, 2009
Rule 301 - Grounds for Denial or Termination of Local Exchange Service with Prior Notice
Existing Rule 302 was renumbered and is now Rule 301. Rule 301 is revised to clarify
the rule and address timely collection of bils.
Existing Subsection .04 was eliminated because misrepresentation is covered under Rule
302.05. Subsection .05 incorporates text regarding minors that was in existing Rule 005.
The proposed addition of Subsection .06, "Obligation to Connect Service", is consistent
with its corresponding rule found in the Commission's Utility Customer Relations Rules. The
proposed revision clarifies the time period when a telephone company can deny or disconnect
service for an unpaid bilL. Historically, Staff has taken the position that bils four (4) or more
years old should not be used as grounds for denial or disconnection of service.
The Telephone Customer Relations Rules should encourage utilties to pursue collection
of unpaid past due bils expeditiously. It is importt to remember, however, that prior bils may
remain unpaid for a variety of reasons, including a dispute over responsibilty for payment due to
a change in martal status or disagreement among roommates, lack of knowledge on the par of
the person whose name was used without authorization to establish service (identity theft), or
failure to receive a final bil after disconnection of service due to mail delivery problems. Lack
of payment does not necessarily mean that a customer or applicant has knowingly avoided
payment of a debt. When a complaint is fied with the Commission regarding an unpaid prior
bil, the Staff must determine whether the telephone company's records are correct with respect
to both biling and payment history. The older the bil in question, the harder this process
becomes.
In addition, Idaho law specifies the time after which debts canot be collected through
litigation to avoid the inherent complications and imprecision of determining liabilty for old
debt. Idaho Code § 5-217. Debts on oral contracts canot be pursued four (4) years or more
after the date of last activity on the account. Most requests for telephone service are made over
the telephone. Placing a certain time limit encourages creditors to pursue collection in a timely
manner. It is reasonable to follow a similar course of action with respect to denial or
disconnection of telephone service for a prior bil four (4) or more years old. The Commission
Staff faces the same difficulties experienced by the Cour when trying to resolve aging biling
disputes. Under either scenario, telephone companies may pursue collection of old prior bils but
may not threaten to deny or disconnect service.
STAFF COMMENTS 7 OCTOBER 28, 2009
Rule 302 - Grounds for Denial or Termination of a Service, Without Prior Notice
Existing Rule 303 is renumbered and is now Rule 302. As revised, Rule 302.05
eliminates restrictions (dollar amount owed and deposit amounts held) that prevent a telephone
company from disconnecting service without notice in circumstances where misrepresentation
has occurred.
Rule 303 - Requirements for Notice before Termination of Local Exchange Service
The proposed changes to Rule 303 make it consistent with its corresponding rule found in
the Commissions Utilty Customer Relations Rules.
Rule 304 - Contents of Notice oflntent to Terminate Local Exchange Service
Subsection .01.f clarifies that partial payments wil go to past due local exchange service
first. It also eliminates the requirement that customers be allowed to allocate partial payments in
ways other than the normal process used by telephone companies. This change accommodates
telephone companies that have biling systems that are not suffciently flexible to honor differing
payment allocation requests from customers. Verizon has diffculty in this respect and was
previously granted a rule exemption by Commission Order No. 29321. The proposed changes to
Rule 304 make it consistent with its corresponding rule found in the Commission's Utilty
Customer Relations Rules.
Rule 306 - Serious Illness or Medical Emergency
Subsection .03 makes it optional for companies to .allow a second medical postponement
of disconnection. Making the second postponement optional alleviates the need to retain criteria
for refusing to postpone disconnection a second time. The proposed changes to Rule 306 make it
consistent with its corresponding rule found in the Commission's Utilty Customer Relations
Rules.
Rule 308 - Insuffcient Grounds for Termination of Local Exchange Service
The proposed changes to Rule 308 make it consistent with its corresponding rule found in
the Commission's Utility Customer Relations Rules. References to specific services have been
removed; some of the previously listed services such as directory advertising are no longer
regulated by the Commission. Existing Subsection .04, "Other Person Has an Unpaid Balance for
Service", was eliminated to remove reference to a paricular situation less frequently encountered
in today's telecommunications environment. To the extent that misrepresentation is involved,
other rules apply. The proposed changes to Subsection .01.d, .01.e and .01.fmake it consistent
with its corresponding rule found in the Commission's Utilty Customer Relations Rules.
STAFF COMMENTS 8 OCTOBER 28, 2009
Justification for the addition of Subsection .0 l.d was addressed in the discussion of Rule 301.06
above.
Rule 309 - Restrictions on Termination of Local Exchange Service - Opportunity to Avoid
Termination of Local Exchange Service
As proposed, Subsection .01 would prohibit denial or disconnection all day on Friday,
except for certain circumstances, i.e., where there is ilegal use of service or the premises are
unoccupied and service has been abandoned by the previous customer. eurrently, denial or
disconnection for any permissible reason is allowed until noon on Fridays. Customers who are
disconnected on Friday are placed at a disadvantage, having less opportunity to make the
financial arrangements necessary to pay a bil and have service reconnected before the weekend.
Although customers receive several notices before service is disconnected, the unfortunate
reality is that some simply are not able to pay prior to the time service is disconnected. If
disconnection on Fridays is discontinued, customers who are disconnected on Thursday wil
have the opportunity to reconnect service on Fridays and avoid not having service over the
weekend.
To balance the general "no disconnection on Friday" provision, the rule is changed to
expand by one hour the time period during which denial or disconnection can take place, with
the deadline changed from 4 p.m. to 5 p.m. This provides telephone companies a full day, 8 a.m.
to 5 p.m., Monday through Thursday, to perform disconnections for any permissible reason. The
rule also provides a full day on Friday to perform disconnections if there is ilegal use of service
or where the premises are unoccupied and service has been abandoned. This change allows
utilties more hours in a workweek to perform disconnections than allowed under the existing
rules, where disconnection for only a half day on Friday is allowed. Staff does not believe this
change will impose a significant hardship on customers. Customers stil wil have the
opportunity to make financial arrangements and have service reconnected either on the same day
or the next day.
Subsection .02.d allows denial or disconnection from 5 p.m. and 9 p.m., Monday through
Thursday, if the telephone company is unable to gain access to its equipment during normal
business hours or for ilegal use of service. The proposed changes to Subsection .05 make it
consistent with its corresponding rule found in the Commission's Utility Customer Relations
Rules.
STAFF COMMENTS 9 OCTOBER 28, 2009
Rule 310 - Payment Arrangements
Rule 310.03 was revised to be consistent with Rule 304.01.f. Existing Subsection .04
was combined with Subsection .03. The notice requirements in existing Subsection .04 were
removed and are now covered in Rule 600.
Rule 312 - Cessation of Service in a Service Area
The addition of new Rule 312 prescribes actions that need to be taken by telephone
companies that intend to disconnect all services to all customers.
Rule 400 - Complaint to Telephone Company
The text from existing Rule 400.02 regarding biling disputes was moved to Rule 204.02.
Rule 401 - Review by Commission
Rule 401 was revised to explicitly state the Commission's authority to investigate and
resolve complaints.
Rule 601 - Directories and Customer Listings
Existing Rule 601 contains obsolete provisions and was eliminated. Telephone
directories are no longer regulated by the Commission. In many instaces, directories are printed
and distributed by unelated third paries.
Rule 600 - Information to Customers
Existing Rule 602 is renumbered as Rule 600 and underwent substantial revisions. It
now incorporates subject matter currently contained in Rule 602 of the Telephone Customer
Relations Rules as well as Rules 101 and 104 ofthe Telephone Customer Information Rules.
Revised Rule 600 covers what, when, and how telephone companies need to provide information
to customers. Given the fact that directories no longer are the appropriate vehicle for providing
critical information to customers, this rule prescribes other methods for communicating with
customers.
Subsection .01.b.iii adds the requirement that early termination fees be disclosed to
customers. With increasing frequency, customers have alleged that companies failed to disclose
early termination fees at the time the customers signed up for service.
Rule 602 - Request for Telephone Company Records
Rule 602 was revised to simplify the rule by eliminating the detailed discussion of cour
orders and subpoenas.
STAFF COMMENTS 10 OCTOBER 28, 2009
Rule 604 - Public Notice
Rule 604 incorporates the notification requirements of Rule 102 of the TCIR. Reference
to telephone directories is retained in this rule because that mirrors the statutory requirement
found in Idaho eode §48-1 009.
Rule 605 - Telephone Solicitations
Rule 605 incorporates existing provisions of Rule 105 of the TCIR.
Rule 606 - Information, Price Lists or Tariffs for Non-Local Exchange Service
Rule 606 incorporates existing provisions of Rule 202 of the Title 62 Telephone
Corporation Rules.
Rule 607 -- Price Lists or Tariff Filngs
Rule 607 incorporates existing provisions of Rule 203 of the Title 62 Telephone
Corporation Rules.
Rule 608 - Form and Number of Copies of Price List or Tariff
Revised Rule 608 incorporates existing provisions of Rule 204 of the Title 62 Telephone
Corporation Rules.
STAFF RECOMMENDATION
Staff recommends adoption of the proposed changes to the Telephone Customer
Relations Rules.
Respectfully submitted this i.i~ day of October 2009.
ß~
Deputy Attorney General
Technical Staff: Beverly Barker
Daniel Klein
WS:umiscicomments/3 i -090 i -4 i 0 I.wsbabdk comments
STAFF COMMENTS 11 OCTOBER 28, 2009