20030904_606.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:SEPTEMBER 2, 2003
RE:SIX MONTH REVIEW OF QWEST PERFORMANCE ASSURANCE
PLAN.
BACKGROUND
An integral part of Qwest's 271 application was the Qwest Performance Assurance Plan
(QP AP), which included incentives to encourage Qwest to maintain the service quality it
provides wholesale customers, and to prevent any backsliding in the market opening steps the
Company had taken in order to obtain 271 approval. A key element of that plan is a periodic
review by the Commission of the operation of the plan. The Plan indicates the first review is to
occur after six months of plan operation, and therefore a review is now appropriate.
Staff has participated in discussions with other state commission staff members in the
Qwest region to discuss conducting all or part of the six-month review via a multi-state
collaboration. It became clear that a single collaboration to address all the review issues was not
acceptable to Qwest or a number of the states. There are enough differences between the QP APs
implemented in each of the states, and in the manner in which the competitive market is
developing in the different states, that led a number of states to prefer their own proceedings.
PID REVIEWS
A clear consensus was reached in using a multi-state collaboration to consider changes to
the Performance Indicator Definitions (Pills) that are a key element of the QP AP. Agreement on
the scope and structure for such collaboration has also been developed.
DECISION MEMORANDUM SEPTEMBER 2, 2003
Staff from the participating states solicited proposals from parties interested in facilitating
this effort, and those proposals have been reviewed. John Kern, who has performed the same
role for two similar reviews in the Ameritech states, was selected to lead this effort. Qwest is
now in the process of negotiating a contract for his services.
The cost of the Pill collaboration is expected to be paid by the participating states, using
funds originally provided by Qwest in the form of Tier 2 penalty payments made by Qwest to the
states. The total cost of these services is expected to be no more than $50 000, with the amount
to be paid by each state dependent upon the number of states that participate. Some
Commissions have already indicated they will participate, and Staff expects that no fewer than
10 states will join in the effort. If so, Idaho s share of the costs should be less than $5 000.
Idaho has already received approximately $29 000 in Tier 2 payments that have been earmarked
for review costs.
Now that the scope and structure of the collaboration has been agreed upon, staff from
each state is seeking formal approval from their respective Commissions for participation in this
limited collaborative effort, and for authorization to reimburse Qwest for the funds to pay the
facilitator. Staff recommends the Commission authorize Staff to participate in this collaboration
as well as authorize the independent administrator of the Tier 2 Fund, Alyson Anderson, to
reimburse Qwest for the payments to the facilitator. Staff anticipates reimbursements will be
made using the same procedures developed for disbursement from the universal service fund
which require the signature of both Staff and the fund Administrator.
COMMISSION DECISION
Does the Commission wish to authorize Staff participation in the Pill collaboration?
Does the Commission wish to authorize the use of Tier 2 funds for reimbursement of
Qwest's payments for the services of the facilitator of the PID collaborative effort?
wayne k(
CbM'1-
WH:jo/udmemos/qwest six month review dm
DECISION MEMORANDUM SEPTEMBER 2, 2003