HomeMy WebLinkAbout19970624Comments.docSUSAN HAMLIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
472 WEST WASHINGTON STREET
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-0300
Street Address for Express Mail:
472 W WASHINGTON
BOISE ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF TEL-SAVE, INC. D.B.A. THE PHONE ) CASE NO. TSV-T-97-1
COMPANY (TEL-SAVE) FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY TO PROVIDE LOCAL )
EXCHANGE SERVICE AS A COMPETITIVE ) COMMENTS OF THE
LOCAL CARRIER. ) COMMISSION STAFF )
_________________________________________ )
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Susan Hamlin, Deputy Attorney General, and submits the following comments for the Commissions consideration in Case No. TSV-T-97-1.
BACKGROUND
On April 29, 1997, Tel-Save, Inc. d/b/a The Phone Company (Tel-Save) filed an application for a Certificate of Public Necessity and Convenience (CPCN) in compliance with the Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. Tel-Save is currently authorized to provide telecommunications service pursuant to Title 62 of the Idaho Code. The applicant is seeking authorization to provide local exchange service pursuant toTitle 61 of the Idaho Code. Tel-Save has indicated that it plans to provide local exchange service to Idaho residences and businesses within the U S WEST and GTE service areas. It plans to offer local service through a resale arrangement with incumbent local exchange carriers (ILECs). At present, Tel-Save has not obtained an interconnection agreement with any of the ILECs.
DISCUSSION
Staff has reviewed the application submitted by Tel-Save and finds that it meets the requirements of the Commissions Procedural Order No. 26665, which sets out necessary information to be included with an application for a certificate submitted by a new local exchange provider in Idaho. Tel-Save has agreed to comply with the Commissions rules and procedures, but had requested certain waivers from the following requirements:
** Escrow account for customer deposits
** Repair Service Standards
** Press Release
** Local Exchange Directories
** Reporting Requirements
Staff has been negotiating with Tel-Saves agent and has been able to resolve three of the five waiver requests. Tel-Save has agreed to Staffs recommendations that satisfies Staffs concerns with respect to the Escrow Account, Local Exchange Directories, and Reporting Requirements. The two remaining waiver requests are as follows:
A) Repair Service Standards (Rule 503). As required by Rule 503 of the Telephone Customer Relations Rules, IDAPA 31.41.01, if a telephone company does not restore service within the times required, the telephone company must credit the customers account for an amount equal to the monthly rate for one (1) month of basic local exchange service. Tel-Save contends that it is a reseller of services of the incumbent local exchange carrier, and is not likely to have direct control of the time and manner of repair of service problems that originate on the facilities of the incumbent local service provider. The Company feels that it has no control over the network facilities and should not be held accountable for this.
Tel-Saves waiver request from Repair Service Standard is of concern to Staff. Tel-Save customers should not have to forego Commission protection and should receive the same quality of service they have experienced regardless of which local exchange carrier they use. Staff believes that telephone companies requesting Certificates to provide local exchange service should be required to employ prudent management practices and ensure that customers receive the best quality of service practicable. Repair service standard, IDAPA 31.41.01.503, is currently a requirement for incumbent local exchange carriers, and Staff maintains that it should apply to competitive local exchange carriers as well. Staff views this rule as a customer protection mechanism and with the onset of new entrants into this market, it must be upheld. Staff understands Tel-Saves request for a waiver from this rule, however it feels that Tel-Save must resolve this issue with the incumbent local exchange carriers before completing any interconnection agreements.
B) Press Release IDAPA 31.41.02.102.03 ( Rule 102.03). The rules governing Information to Customers of Telephone Companies IDAPA 31.41.02, states that all Title 61 local exchange carriers must send a press release containing information presented to its customers indicating any price increases it is implementing. Rule 102.03 states that press releases are to reflect the reasoning the company may have for such a rate increase, as reflected in the billing inserts to its customers. These press releases are to be sent to all newspapers, radios and television stations listed on the Commissions new organization list for that company.
Tel-Save contends that customer notification through billing inserts will be sufficient. It feels that it is not a large enough organization to warrant the extensive press release as required by this rule. Because of the size of its customer base, Tel-Save contends that the local media will not give it the same consideration as it would the incumbent local exchanges or the larger competitive local exchanges.
Staff has concerns about Tel-Saves waiver request from Press Releases. This rule is a requirement for all Title 61 incumbent local exchange carriers and provides customer protection through proper notification. As Tel-Save previously indicated, its size will not command local newspapers and the press to view its rate increases as an important news event and may not convey its announcement in a timely manner. Staff believes that all press releases should be conveyed with the appropriate lead time. Staff also maintains that the purpose of this rule is to afford Tel-Saves customers, at least one other source of notification. Title 61 carriers are required to provide press releases in order to comply with Public Utilities Law and the Commissions Rules of Procedure. Staff feels that consumers who have always been notified through this source in the past, should continue to have this process in the future with the new CLECs entering the marketplace.
STAFF RECOMMENDATIONS
Staff recommends the following and seeks Commission resolution for the Tel-Saves waiver requests.
First, Staff believes the Repair Service Standard is a very important customer protection mechanism and Staff contends that this issue must be addressed in Tel-Saves interconnection agreement with the incumbent local exchange carriers. Staff recommends rejecting the waiver from Rule 503, on Repair Service Standards.
Second, Staff believes that although Tel-Save may have a valid argument for their waiver request from the Commissions rule for Press Releases, Staff maintains that a press release through a local newspaper is a reasonable requirement. With bill inserts and a press release, Tel-Save customers will have two forms of notification with minimul expense to the Company. Therefore, Staff recommends rejection of the waiver from IDAPA 31.41.02.102.03 (Rule 102.03) for Press Releases.
Respectfully submitted this day of June 1997.
Susan Hamlin
Deputy Attorney General
Technical Staff:
Carolee Hall
tsvt971sh/umisc/comments/gdk:ch
STAFF COMMENTS 1 JUNE 24, 1997