Agenda Date: December 29, 1999
Item Number: 

Docket:   UT-991573

Company Name: Utilities - General

Staff:   Betty Erdahl, Policy Research Specialist
    Glenn Blackmon, Assistant         Director-Telecommunications
    Jing Roth, Regulatory Consultant
    Mary Tennyson, Senior Assistant Attorney      General
    Bob Wallis, Review Judge   


Recommendation:

Direct the Secretary to file a Notice of Proposed Rulemaking (CR-102) with the 
Office of the Code Reviser in Docket UT-991573 proposing a new rule, WAC 
480-120-990, Toll Carrier Obligations. 

Discussion:

Background/Process

On September 22, 1999, the Commission granted a petition by U S WEST 
Communications, Inc. to end its obligation to provide local toll service in 
areas where it does not offer local exchange service.  The Commission also 
directed staff to file a statement of inquiry (CR-101) with the Office of the 
Code Reviser to investigate the need for a rule for a competitively neutral 
obligation on toll carriers.  The Commission directed staff to report by 
December 31, 1999, regarding whether a rule is needed requiring interexchange 
carriers to serve all areas of the state in a competitively neutral way.

The CR-101 was issued on October 25, 1999, and invited written comments from 
all interested persons by November 12, 1999.  The Commission received comments 
from U S WEST, GTE, AT&T, MCI and the Washington Independent Telephone 
Association (WITA). Interested parties expressed concern about the level of 
access charges and the need to avoid barriers to entry or exit of the toll 
market.  There is concern regarding whether a new rule would put up regulatory 
or economic barriers in a market that is classified as competitive.  WITA is 
the only commenter requesting a rule be adopted.

Staff believes that it is appropriate to address the possibility of inadequate 
service in limited areas, but this concern should be addressed without erecting 
any substantial barriers to entry or exit of the toll market.  Staff believes 
this can be accomplished by allowing carriers to choose which areas they offer 
service but requiring that carriers offer a complete set of toll services at 
uniform prices within the areas they choose to serve.  Staff recommends the 
attached proposed language as a new rule addressing

Docket UT-991573
December 29, 1999
Page 2

the concerns of WITA while avoiding possible problems discussed in the comments 
of the other interested parties.

Written comments on this Notice of Proposed Rulemaking may be submitted to the 
Commission Secretary by January 26, 2000.  The scheduled adoption date for this 
rulemaking is February 23, 2000.

Staff recommends that the Commission direct the Secretary to file a Notice of 
Proposed Rulemaking (CR-102) in Docket UT-991573 with the Office of the Code 
Reviser, to propose a new rule, WAC 480-120-990 WAC.


Attachment

UT-991573
December 29, 1999
Attachment



NEW SECTION

 WAC 480-120-XXX  Toll Carrier Obligations.  
 (1) Telecommunications companies offering originating toll service from an 
exchange must transmit toll calls to all other exchanges within the state and 
outside the local calling area.  This requirement does not apply to the extent 
a company is prohibited by law from offering toll service for calls between 
specified exchanges or areas.
 (2) A company may not charge different per-minute or per-unit prices for toll 
calls based on where the call terminates; however, it may charge different 
per-minute or per-unit prices based on distance if the schedule of 
distance-based charges applies to all calls from the exchange.