19911206.docx

Minutes of Decision Meeting
December 6, 1991 - 2:00 p.m.
In attendance:
Commissioners Marsha Smith, Joe Miller and Ralph Nelson and staff members Belinda Anderson, Lynn Anderson, Jim Long, Mike Gilmore, Eileen Benner, Stephanie Miller and Myrna Walters.
*  Before consideration of items from the agenda, Commission President Marsha H. Smith reported that she had just received a phone call from Robert Servitus of Pacific Power & Light announcing the retirement of David Bollinder as President of Pacificorp, effective January 1, 1992.  It is not clear if he will be replaced.  His level of management may be eliminated.
Item 2 from Agenda was then discussed - Belinda Anderson's December 5, 1991 Decision Memorandum re:  FX Lines from Albion to Declo Schools.
Commissioner Smith asked what the companies offered?
Belinda Anderson read Hendershot's testimony in the Albion Case.
Discussed Albion's proposed charges.
Commissioner Smith said from Albion we didn't have any expenses.  They didn't say what it is going to cost them.  For U. S. West we don't know what they are saving on access so we can't do anything on that.
Belinda Anderson suggested Commission could answer the question of - do you want to reimburse the companies?
Commissioner Nelson said Commission didn't say we are not going to reimburse them for their costs, because they are going to put those into a rate case.  On U. S. West we don't know what the costs are.
**Gary Richardson and Randy Lobb were in attendance at this time.
Commissioner Miller said he assumed that the cost would be so negligible that he assumed it would not be an undue burden and didn't think about paying anyone.
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Commissioner Smith said she envisioned it as permanent.
**Birdelle Brown was in attendance at this time.
Commissioner Smith said she thought the answer has to be there is a big difference between actual charges and tariffed charges and U. S. West has to figure in access savings and Albion's is to come in in a rate case.
(A)  Don't talk about tariff charges and (B) don't come in until you tell us the difference with access savings; and
Hook it up now.
**Didn't have a problem with Albion's proposed blocking of certain services - operator handled toll, direct dialed toll, third number billing, access to 700 and 900 numbers and inward collect calls.
1.  Lori Mann's December 5, 1991 Decision Memorandum re:  Case No. GNR-T-90-T; Toll Deaveraging.
Commissioner Miller, Chairman of the Case, reviewed the matter; initially started out to answer the three questions on page 2 of the decision memo.  
Question 1 - Does it violate the 607 statute?  Thought we all agreed it did.  So the solution is to say that and allow companies to either amend their tariffs to eliminate that disparity or to apply for an exemption because the statute does allow Commission to grant exemption.  they have the choice then of conforming their tariffs or price lists or applying to us for exemption.
Commissioner Nelson said if they are going to apply they had better have a good reason.
Commissioner Miller said he thought there could be some good reasons.  
**Are all pretty unanimous on #1.
2.  Does the establishment of different residential and business MTS rates on routes of similar distance violate the provisions of Idaho Code, Section 62-607?
Commissioner Miller said it does appear possible that some companies are charging different rates for residential MTS and business MTS.  So the question was is that a violation of the statute?
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Think our choices are to say yes or no it does or doesn't or say we will defer that question until some other time a specific complaint or case comes before us.  That is the question associated with that.  We can punt or make some declaration on it even though we are not sure how wide spread it is.
Commissioner Nelson said he thought there are ways around this if you want to give discounts to your large volume customers but to distinguish between business and residential would be like giving special rates to farmers, Avon sales ladies, car salesmen, etc.
Commissioner Smith said the difference between those are they are not distinct classes.  Usually they have been on volume.
Mike Gilmore said there is no history for different rates for business or residential.
Commissioner Miller said he thought this was a discrimination problem not a deaveraging problem.  If he would answer it he would say it is not deaveraging, at is permitted discrimination.
Eileen Benner and Lynn Anderson spoke to their interpretation of Commissioner Miller's proposal.
Commissioner Smith spoke to the two classes, business and residential.
Belinda Anderson asked about the tariffs of the OSPs?
Eileen Benner said you can devise so many rate plans that you can do away with geographic.  Some companies will take those to extremes.
Commissioner Smith said she didn't want to make those kinds of decisions on speculation.  If someone has a concrete complaint to see if it discriminatory, okay.  this case isn't about this.
Commissioner Nelson said you would have to have a customer complaint.
Commissioner Miller said if one of the goals of the Telecommunications Act is to develop competition, isn't the ability of competitors to devise different price packages what this is all about?  Don't you think there was some pricing freedom contemplated?  If it was a regulated company it would be prohibited.  Competitive market discrimination is okay.
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Commissioner Nelson asked - why should my choice of long distance packages be dependent on if I am a business or residential?
Belinda Anderson said she thought in the area of WATS they would be able to do that.
Commissioner Miller said his attitude is if we aren't going to regulate 62, then we should encourage as many competitors as we can to put pressure on U. S. West to allow other companies to come up with pricing alternatives so they can succeed in the marketplace.
Mike Gilmore asked - do you want U. S. West to engage in different offerings?
Eileen Benner said you will get plenty of options.
Commissioner Miller asked if this is an unregulated market, isn't that what happens in that situation?
Eileen Benner spoke to why she thought geographic deaveraging was put in.
Commissioner Nelson said you offer different rates anticipating different useage.  Am not convinced it is not discriminatory to have different rates for business rate than residential.
Belinda Anderson said she could give Commissioners specifics.
Commissioner Miller said the point is we haven't come to an agreement or policy on #2.
Appears that they are deaveraging and they need to file appropriate tariffs or need to file for exemption.
End of discussion - meeting adjourned.
Dated at Boise, Idaho, this 17th day of December, 1991.
Myrna J. Walters
Commission Secretary
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