20040123_735.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:JANUARY 14, 2004
RE:VERIZON TARIFF ADVICE REGARDING OPERATOR SERVICE
CHARGES AND NEW RATES FOR COLLECT CALLS PLACED FROM
CORRECTIONAL FACILITIES NOS. 02-14 AND 02-15.
BACKGROUND
Verizon filed two tariff advices implementing a new operator service charge for collect
calls from correctional facilities in the Company s intraLA T A toll tariff (IPUC No.7) and the
Company s local tariff (IPUC No.8). The tariff advices also impose new per minute rates for
intraLA T A calls from institutions of confinement. The new charge effectively increases the cost
for such calls from $1.25 to $1.75 per call. The intraLATA tariffinc1udes a new per minute
price of20 cents ($0.20) per minute for all intraLATA calls from prison facilities, regardless of
the distance. This rate would apply instead of the existing distance sensitive rates that would still
apply to non-prison calls.
The Company provided a cost study that indicated an increase in annual revenue that
would rapidly increase to nearly $40 000 per year within five years, based upon current and
projected call volumes.
ST AFF ANALYSIS
The proposed operator services charges are at the low end of the spectrum for such
charges, and are comparable to the current charges imposed by many carriers for collect calls
from non-prison locations. Therefore, Staff finds the charges to be reasonable.
DECISION MEMORANDUM - 1 -JANUARY 2004
The proposed per-minute charges on intraLATA toll calls are comparable to the low end
of the spectrum for such charges that have been filed with the Commission by other providers of
such service to institutions of confinement, and lower than the rates of many providers of
intraLATA toll from non-institutional settings. According to the financial data provided by the
Company, the new rate would actually be below the weighted composite of the distance sensitive
rate that is now in effect. Staff finds these rates to be reasonable as well.
STAFF RECOMMENDATION
Staff recommends the approval of these two Tariff Advices, 02-14 and 02-15.
COMMISSION DECISION
Does the Commission wish to approve Verizon Tariff Advice Nos. 02-14 and 02-15?
i:udmemos/Verizon prison asp TAs
DECISION MEMORANDUM - 2 -JANUARY 14, 2004