2000225_ws.doc

February 25, 2000

Mary S. Hobson
Stoel Rives LLP
101 S. Capitol Blvd, Suite 1900
Boise ID 83702-5958

Morgan Richards
Moffatt Thomas Et Al
PO Box 829
Boise, ID 83701-0829

Molly O’Leary
Richardson & O’Leary
PO Box 1849
Eagle, ID 83616

Re: The Remaining Procedural Schedule in Case No. USW-T-99-25/CTC-T-99-2

Dear Ms. Hobson, Mr. Richards & Ms. O’Leary:

This correspondence will confirm the procedural schedule to conclude Case Nos. USW-T-99-25 and CTC-T-99-2, the case considering U S WEST’s proposed sale of its north Idaho exchanges to Citizens Telecommunications Company of Idaho. Additionally, I will use this as an opportunity to update the parties on the status of settlement discussions between Staff and U S WEST and Staff and Citizens.

The technical hearing will take place on April 13, 2000, in the Commission’s Boise hearing room, and the public hearing will be held in Lewiston on April 27, 2000, in the evening. The location and time for the public hearing has not been finally determined, but the Commission will issue a formal notice for both hearings sometime soon.

All parties have agreed that the prefiling date for testimony by the Staff and remaining intervenor will be March 13, 2000. U S WEST and Citizens may file rebuttal testimony on or before March 30, 2000. This schedule is the same as agreed to in the Stipulation of the parties filed with the Commission on February 3, 2000, except that the prefiling date for Staff and intervenors is changed from March 3 to March 13. This additional time for Staff and Avista to file testimony will enable the parties to explore the possibility of settlement.

Regarding settlement discussions, Staff as you know has been contacted by U S WEST and Citizens on separate occasions to explore the possibility of reaching a settlement on relevant issues. Recently conference calls were held between Staff and U S WEST and Staff and Citizens. Based on the initial discussions, Staff is optimistic that it is possible to reach settlement agreements with both U S WEST and Citizens. I will circulate drafts of any proposed settlement agreements prior to their acceptance by Staff.

Please contact me if you have any questions or concerns regarding this correspondence.

Sincerely yours,

Weldon B. Stutzman
Deputy Attorney General

Cc: Myrna Walters, Commission Secretary

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