BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Petition of ) U S WEST Communications, Inc., ) DOCKET UT-971514 GTE Northwest, Inc., and the ) Washington Independent Telephone ) FIRST SUPPLEMENTAL Association for ) ORDER GRANTING Waiver of Washington ) WAIVER OF RULES Administrative Code ) WAC 480-120-139(5)(a) ORDER GRANTING WAIVER OF WAC 480-120-139(5)(a). On October 22, 1997, pursuant to WAC 480-120-011, U S WEST Communications, Inc. (U S WEST), GTE Northwest, Inc. (GTE), and the Washington Independent Telephone Association (WITA), filed an amended petition for a waiver of WAC 480-120-139 (5)(a) which was adopted by the Commission and scheduled to take effect on October 30, 1997. The Commission considered the Petition at its regular open meeting on October 29, 1997. At that meeting, the Commission Staff recommended approval of the Petition and the extension of the waiver to all telecommunications companies subject to the rule at issue. Public Counsel did not oppose the granting of the waiver. The presentations of the Staff and the companies on October 29, 1997, indicated that strict compliance with the rule as adopted could inhibit certain marketing activities of the companies which were unintended in the rule adoption process. Further, the companies’ use of customer proprietary network information (CPNI) would be limited by provision of federal law in a manner to protect the public interest during the period of the waiver. The Commission approved the waiver as requested, to allow for a period of study and to see what federal regulations might be adopted. The waiver was approved for a period expiring January 31, 1998. On November 21, 1997, the Commission filed a Preproposal Statement of Inquiry (CR-101) with the Code Reviser (Docket UT-971514) to consider possible amendment to WAC 480-120-139(5)(a) addressing the topics of privacy protections and implementation of restrictions on the use of CPNI. On January 21, 1998, the Commission Staff, Public Counsel and representatives of TRACER, WITA, GTE, AT&T, MCI, and U S WEST met in a workshop under Docket UT-971514 to address the potential rulemaking, comments that some of the participants had filed, and activities at the federal level related to CPNI and privacy. The Federal Communications Commission is expected to serve an order clarifying Section 222 of the Telecommunications Act of 1996, concerning privacy issues and CPNI by the end of the first quarter of 1998. Final resolution of that order is anticipated during second quarter of 1998. The federal order is expected to guide industry and states regarding those subjects. Based on the initial Petition, the filed comments and discussions with DOCKET UT-971514 Page 1 participants, the rulemaking at the federal level, the progress of the proposed rulemaking in UT-971514, and the need for consideration of federal requirements in establishing state standards, the Commission issues the following: FINDINGS 1. U S WEST and GTE are telecommunications companies regulated by the Utilities and Transportation Commission. WITA is an association of telecommunications companies regulated by the Commission. 2. WAC 480-120-139 was adopted in accordance with the requirements of the Administrative Procedure Act. 3. On November 21, 1997, the Commission filed a CR 101 Preproposal Statement of Intent in Docket No. UT-971514 to consider an amendment to WAC 480-120-139(5)(a). This proposal remains under consideration. 4. The Federal Communications Commission is currently considering the issues of customer proprietary network information and privacy at the federal level that is under consideration in this docket at the state level. Resolution at the federal level is not expected until second quarter of 1998. 5. There is good cause for extending the granting of the waiver of WAC 480-120-139(5)(a) through July 31, 1998. 6. The companies will be subject to current federal law limiting the use of customer proprietary network information and WAC 480-120-139 (5) (b) and (c), thus the public interest will not be harmed by the granting of the waiver for a limited period of time. ORDER IT IS HEREBY ORDERED: 1. After the effective date of this order and subject to the conditions hereof, the Petition for a waiver of WAC 480-120-139(5)(a) is granted through July 31, 1998. 2. This waiver shall extend to all companies subject to this rule. 3. This waiver may be revoked by the Commission at any time. DATED at Olympia, Washington, and effective this 28th day of January, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION PAUL CURL, Acting Secretary