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HomeMy WebLinkAbout20031020_656.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY COMMISSION STAFF LEGAL WORKING FILE FROM:BIRDELLE BROWN DATE:OCTOBER 17,2003 RE:VERIZON NORTHWEST, INC. TARIFF ADVICE 03-15 TO ELIMINATE SOME CENTRANET AND CUSTOP AK NONRECURRING CHARGES, EFFECTIVE OCTOBER 22, 2003 Verizon Northwest, Inc. filed this tariff advice to eliminate some nonrecurring charges in order to provide a more competitive business service offering with an incentive for customers to commit to a term plan. Verizon s proposal will eliminate nonrecurring charges for the initial installation of CentraNet Service or CentraNet CustoP AK service. More specifically, the charges will be waived for the initial installation of Central Office Located Trunk, Initial Order and Subsequent Order. Nonrecurring Charges for Station Lines and Feature Packages 1000, 2000, or 3000 associated with the initial installation of CentraNet Service will be eliminated when these services are installed at tariffed rates under a term commitment. The nonrecurring charges for Access Line Connection and Feature Change Charge will not apply for the initial installation of CentraNet CustoP AK service under a term commitment. Verizon submitted considerable data to show that when it amortized its current revenue from these waived charges and spread it over the monthly costs of their products, the total revenue would continue to cover costs. By inference we can assume that the Company s current revenue will continue to recover the costs of the product. The Company has also shown that even with the growth in sales anticipated from this customer stimulation, the Company s chum in CentraNet products will result in reduced sales. DECISION MEMORANDUM - 1 -OCTOBER 17 2003 STAFF RECOMMENDATION Staff recommends approval of this tariff advice effective October 22 2003. Staff will continue to work with Verizon on ways to improve its cost support data. Does the Commission agree? ColTesp/dmemos/2003/advO315.ver DECISION MEMORANDUM - 2 -OCTOBER 17 2003