20030822Final Order No 29321.pdf

Office of the Secretary
Service Date
August 22, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF
VERIZON NORTHWEST, INc. FOR A
WAIVER FROM THE COMMISSION'
TELEPHONE CUSTOMER RELATIONS
RULES REGARDING PARTIAL PAYMENT
APPLICATION.
CASE NO. VZN-OI-
ORDER NO. 29321
On August 5, 2003, Verizon Northwest, Inc. filed a request with the Commission seeking
a continued, indefinite waiver from the partial payment rules contained in the Commission
Telephone Customer Relations Rules. IDAPA 31.41.01.306.06 and 312.03. On September 19
2001 , the Commission granted the Company a two-year exemption from the above Rules. Order No.
28857. After reviewing the record in this matter the Commission grants the Company s Application.
BACKGROUND
Verizon s billing system cannot accommodate customers' requests to allocate partial
payments in a way that differs from its automatic processes. This inability to manually allocate
payments as directed by customers causes Verizon to not be in compliance with Rules 306.06 and
312.03 of the Telephone Customer Relations Rules (TCRR). In June 2001 , Verizon requested a
temporary exemption from the rules, stating that the Company was considering modifying or
replacing its billing system and did not find it cost-effective or advisable to do so. In Order No.
28857, Case No. VZN-01-, the Commission granted Verizon s request for a two-year exemption
from these Rules. This exemption expires on September 19, 2003. The Company was ordered to
report back to the Commission on its progress towards being able to comply with these Rules.
Staff reviewed its records and determined that no complaints had been filed regarding this
issue since September 2001. However, a few complaints touched on the issue tangentially. In
response, Verizon agreed to modify its automatic allocation system so that partial payments will first
be applied to all amounts due for local exchange service. This modification will guarantee that
customers will not lose local exchange service as long as a customer s payment is sufficient to cover
charges for that service. Based on the lack of complaints, the system modification coupled with
procedures in place to address customers' billing disputes and payment allocation issues , Staff
believed V erizon' s proposal would be an adequate interim solution to the Company s billing system
ORDER NO. 29321
problem. However, Staff continued to believe that allowing customers to direct how their payments
will be allocated as required by the Commission s Rules is the best course of action.
On August 5, 2003, the Commission received a letter from the Company indicating that
Verizon "has put any major system modifications on hold." The Company maintains that making the
necessary changes to the existing billing system to allow for customer-directed payment allocation
remains cost-prohibitive. Therefore, the Company requests that the waiver continue to remain in
place indefinitely until such time as the Company undertakes a major upgrade of its billing system.
STAFF RECOMMENDATION
Staff recommended that the Company be granted a continuing exemption from Rules
306.06 and 312.03 until such time as the Company either replaces its current billing system or
undertakes major modifications of its billing system. Staff also recommended that Verizon be
required to file a report with the Commission regarding the status of its billing system if the
Company has not made such changes by September 19 2006.
COMMISSION FINDINGS
After reviewing the record in this matter the Commission finds it appropriate to grant the
Company s request. Although we desire that Verizon comply fully with the Commission s Rules
we also believe that the Company has shown that it would be costly to change its billing system at
this time. Therefore, Verizon s request for exemptions from Telephone Customer Relations Rules
306.06 and 312.03 are granted. However, this grant is subject to the following conditions: 1)
Verizon is directed to continue to make progress towards fully complying with Rules 306.06 and
312.03 of the Telephone Customer Relations Rules; and 2) Verizon shall file a report with the
Commission regarding the status of its billing system and whether it complies with the
Commission s Telephone Customer Relations Rules 306.06 and 312., by September 19 2006.
ORDER
IT IS HEREBY ORDERED that Verizon Northwest, Inc.s request for exemption from
the Commission s Telephone Customer Relations Rules 306.06 and 312.03 is granted indefinitely
until such time as the Company replaces or undertakes a major modification of its billing system.
IT IS FURTHER ORDERED that the Commission s granting of the Company
Application is subject to two conditions: 1) Verizon is directed to continue to make progress towards
fully complying with Rules 306.06 and 312.03 of the Telephone Customer Relations Rules; and 2)
ORDER NO. 29321
Verizon shall file a report with the Commission regarding the status of its billing system and whether
it complies with the Commission s Telephone Customer Relations Rules 306.06 and 312., by
September 19, 2006.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory
Orders previously issued in this Case No. VZN-01-8 may petition for reconsideration within
twenty-one (21) days ofthe service date ofthis Order with regard to any matter decided in this Order
or in interlocutory Orders previously issued in this Case No. VZN-01-8. Within seven (7) days
after any person has petitioned for reconsideration, ':illy 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 .;L/ sr
day of August 2003.
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ATTEST:
Commission Secretary
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ORDER NO. 29321