Agenda Date: November 25, 1998 Item No: Docket: UT-981165 Company: U S WEST Communications, Inc. Staff: Roger Kouchi, Consumer Program Specialist Pam Smith, Consumer Program Specialist Vicki Elliott, Consumer Affairs Manager Glenn Blackmon, Assistant Director-Telecommunications Recommendations: Issue a formal complaint against U S WEST Communications, Inc. (U S WEST), pursuant to RCW 80.04.110 and other relevant statutes and regulations to compel U S WEST to comply with its obligation to adhere to service quality, consumer protection and notice requirements imposed by rule and by Commission order in Docket UT-970766. Background: Since early September, the Commission has been investigating U S WEST’s performance during a labor strike in late August. Of particular concern was whether the company had provided customers with credits for delays in installing or repairing service. In preparation for the Commission's November 16 meeting, staff developed a recommendation that the Commission issue a complaint alleging that U S WEST failed to provide credits to customers whose orders for primary service were not filled within five days, as required by tariff and Commission order. Staff also reported that its investigation revealed the company did provide credits for missed appointments and service interruptions outside of the strike timeframe. However, at the meeting Staff asked that the Commission defer consideration of the complaint recommendation until the November 25 meeting. Staff believed that there was a reasonable chance that it could reach a resolution with the company on the remaining issue of credits for held orders. Staff believed that such a resolution would be in the public interest, because it would provide customers with proper compensation more quickly and it would allow the Commission, the company, and Public Counsel to devote their resources to other issues. Discussion: Immediately after the November 16 meeting, staff and the company met and engaged in a full and frank discussion of the interests and concerns of each side. The parties discussed the various issues that would likely be addressed in any settlement. These included: (1) whether customers would receive credits for held orders, (2) whether the company's tariffs should be revised to modify the credit provisions during any future strike, (3) whether the company should be penalized, and (4) whether other service quality issues should be addressed. Staff also discussed the disputed issues and the components of a possible settlement with Public Counsel. Based on those discussions, staff submitted a settlement offer to the company on November 17. Staff gave the company until close of business on Friday, November 20, to respond. Staff subsequently responded to questions from both the company and Public Counsel about the settlement offer. U S WEST and staff continued to negotiate up until the day prior to the open meeting. No agreement was reached. Need for Formal Complaint: U S WEST failed to provide the customer service guarantee provisions that were ordered by the Commission in Dockets UT-950200 and UT-970766. U S WEST stated in its October 5 supplemental response to the Commission’s request WUTC-01-021 that there were 1,567 orders for new service from August 17 through September 18, 1998, which were delayed at least seven calendar days past the initial order date. It is staff’s position that all customers meeting the Commission’s criteria are entitled to service guarantees provided for under the Commission’s order in Docket UT-970766. Interim service for primary lines not installed within five business days. U S WEST was ordered in Docket UT-950200 to offer customers alternative service options if an order for a primary line could not be filled within 30 days. In Docket UT-970766 the Commission ordered that the interval before interim service was required be reduced from 30 days to five business days. Customers are to be offered a choice of: (1) wireless telephone service paid for by U S WEST, (2) a credit of $100 per month (or partial month) for wireless, (3) voice mail service, or (4) paging service. In addition, the company must waive installation charges and, except for those who choose option 1 above, credit customers for the first month’s basic local service charge. Service credit of $50 for missed appointments or missed commitments. The Commission ordered in Docket UT-970766 that U S WEST give a $50 credit if it failed to keep an appointment with a customer or if it failed to complete a service order by the promised date. Restoration of service within 48 hours after it is reported. WAC 480-120-520 requires that all local exchange companies, including U S WEST, restore service within 48 hours after the customer reports an interruption, “except interruptions caused by emergency situations, unavoidable catastrophes, and force majeure.” Mr. Scott McClellan, Vice President of U S WEST, stated in his September 8, 1998, letter to the Commission that the company was not required to offer the customer service guarantee program when there is a work stoppage. Staff disagrees. The Commission staff has complaint information that substantiates the company did not provide all the guarantees which are required. A total of 326 strike-related complaints investigated by Consumer Affairs staff thus far, confirmed that the company refused to provide the required customer service guarantees. The Commission has the right, at any and all times, to inspect the accounts, books, papers and documents of any public service company with reference to the affairs of such company as stated in RCW 80.04.070. Staff believes that U S WEST is in violation of the following statutes and regulations: RCW 80.04.380 - failure to obey, observe and comply with every order, rule, direction or requirement made by the commission under the authority of title 80. RCW 80.36.170 - subjecting persons to unreasonable prejudice and disadvantage. WAC 480-120-520 - failure to restore service within 2-business days. Conclusions: Based on the results of the investigation, staff is recommending that the Commission issue a formal complaint against U S WEST Communications, Inc., pursuant to RCW 80.04.110 and other relevant statutes and regulations to compel U S WEST to comply with the Commission order in Docket UT-970766 and issue appropriate penalties.