Agenda Date:           June 28, 2000
Item Number:                   2-A
                                                                                
Docket :                            UT-991581 and UT-991582 
Company Name:   U S WEST Communications, Inc.
                             Citizens Telecommunications Company of Idaho
Staff:     Sondra Walsh, Policy Research Specialist 
                             Jacob Wexler, Telecommunication Policy Specialist
Recommendation 
1. Approve the registration application filed by Citizens Telecommunications 
Company of Idaho on October 18, 1999, in Docket UT-991581. 
2. Approve the Stipulation entered into by U S WEST Communications, Inc., 
Citizens Telecommunications Company of Idaho and Commission Staff.
3. Issue an Order approving the applications of U S WEST Communications, Inc. 
and Citizens Telecommunications Company of Idaho for the transfer of property 
located in Clarkston, Washington, from U S WEST Communications, Inc. to 
Citizens Telecommunications Company of Idaho to become effective June 28, 2000. 
Discussion 
On October 18, 1999, Citizens Telecommunications Company of Idaho (CTC-Idaho) 
filed with the Commission an application for registration as a 
Telecommunications Company and a joint application by U S WEST Communications, 
Inc. (U S WEST) and CTC-Idaho for Transfer of Property. The purchase and sale 
agreement addresses eight exchanges in Northern Idaho and the Clarkston 
exchange in Eastern Washington. Because the greatest part of the sale existed 
in Idaho, staff worked with and waited for the Idaho Commission to complete its 
findings. Those findings have been completed and the Idaho Commission order was 
issued on June 2, 2000. 
U S WEST serves approximately 10,000 customers in Clarkston. These customers 
are served by the central office switch which is located in Lewiston, Idaho. 
Staff has reviewed and analyzed the transfer of property application and the 
purchase and sales agreement and believes that the Transfer of Property is in 
the public interest. Therefore, Staff has entered into a stipulation with U S 
WEST and CTC-Idaho. The conditions of the stipulation are as follows: 

CTC-Idaho Conditions of Settlement
Tariffs and Rates:
CTC-Idaho will adopt applicable U S WEST intrastate rates which are in effect 
on the closing date for the Clarkston exchange. A rate cap will be in effect 
for the Clarkston exchange for a period of 24 months following the closing date 
of the sale, and during that period CTC-Idaho will not increase rates affected 
by the rate cap. The rate cap applies to all intrastate tariffed rates. 
Interconnection Agreements:
CTC-Idaho will negotiate interconnection agreements with all telecommunications 
service providers that currently have interconnection agreements with U S WEST 
and currently provide services in the Clarkston exchange. These agreements are 
expected to be negotiated prior to the closing of the sale. If an agreement is 
not reached prior to the closing of the sale CTC-Idaho will provide 
interconnection service to that provider according to the existing 
interconnection agreement. 
CTC-Idaho will not assert a claim for rural exemption to avoid interconnection 
pursuant to 47 U.S.C. sections 251(b) or (c) of the Telecommunication Act of 
1996 for the Clarkston exchange.
Capital Deployment Plan:
CTC-Idaho will provide the Commission a capital deployment plan in two phases. 
Phase I of the plan will be submitted 6 months after the closing date and will 
show the first two years of capital expenditures. Replacement of the Lewiston 
switch is the priority of the Phase I plan. Phase II of the plan will be 
submitted eighteen months after the closing date and will detail the first year 
of completed projects and two years of projected expenditures. Status reports 
will also be submitted at the end of years 1, 2, and 3. 
Telecommunication Plant Adjustment:
CTC-Idaho has agreed to record the plant adjustment as a below-the-line item 
and to defer ratemaking consideration to a future proceeding. 
U S WEST Conditions of Settlement
U S West will spend approximately $4 Million to upgrade analog carrier systems 
to digital carrier systems in southeast Washington. 
U S WEST will credit $4 Million to intrastate depreciation reserves. 
Joint U S WEST and CTC Idaho Conditions of Settlement
Rate Center Consolidation: U S WEST and CTC-Idaho agree to proceed with the 
rate center consolidation of Clarkston and Pomeroy as soon as feasible but no 
later than September 30, 2002.
U S WEST agrees to waive the right to recover Clarkston and Pomeroy toll and 
access charge revenues, no longer realized upon the implementation of the rate 
center consolidation until January 1, 2004.
Notice and Public Comment 
The proposed transfer was noticed to Clarkston customers in October, 1999. 
Public meetings were held on October 12, 1999 and again on April 27, 2000. To 
date, the Commission has received 2 comments opposing the transfer of property. 
Conclusion 
Approve the registration application filed by Citizens Telecommunications 
Company of Idaho on October 18, 1999, in Docket UT-991581. Approve the 
Stipulation entered into by U S WEST Communications, Inc., Citizens 
Telecommunications Company of Idaho and Commission Staff. Issue an Order 
approving the applications of U S WEST Communications, Inc. and Citizens 
Telecommunications Company of Idaho for the transfer of property located in 
Clarkston, Washington, from U S WEST Communications, Inc. to Citizens 
Telecommunications Company of Idaho to become effective June 28, 2000.