20030421_444.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:BIRDELLE BROWN
DATE:APRIL 17, 2003
RE:VERIZON NORTHWEST INC. LOCAL TARIFF TARIFF ADVICE 03-
TO PROPOSE LOWER RATES FOR NONRECURRING CHARGES FOR
CENTRANET SERVICE
Verizon Northwest, Inc. filed this tariff advice to propose two new rates for the
nonrecurring charges incurred by customers of CentraNet Service for the connection of central
office located trunks. Customers currently pay two nonrecurring charges for CentraNet Service:
1) the CentraNet line charge ($30.00 per line) and 2) the multi-line business charge ($50 per
installation of trunk). According to Verizon customers perceive that these nonrecurring charges
are expensive in comparison to the installation of residential and business single line
nonrecurring charges ($30.00 and $45., respectively).
Verizon s proposal is to reduce the current $50.00 nonrecurring charge for the initial
order of one or two CentraNet trunks to $10.00 and to reduce the $50.00 subsequent order charge
to $30., making them comparable to the charges for residential single-line local access service.
Verizon believes that customers with fewer lines will then purchase more CentraNet
installations.
Verizon projects that these reductions will result in an increase of nearly 200 CentraNet
customers by year five and annual nonrecurring revenue will be reduced by about $10 000.
Verizon will continue to recover its costs for these new installations.
DECISION MEMORANDUM - 1 -APRIL 17, 2003
STAFF RECOMMENDATION
Staff recommends approval. Does the Commission agree?
~elle Brown
Corresp/dmemos/2003/AdvO301.ver
DECISION MEMORANDUM - 2 -APRIL 17, 2003