BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



In the Matter of the Petition of   ) DOCKET UT-980357
Kalama Telephone Company  )
for Approval of IntraLATA   )
Presubscription Implementation Plan. )
      )
      )
     ) GRANTING PETITION IN PART AND
        ) DENYING THE PETITION IN PART
                                 )         
      )
............................................................... 


BACKGROUND

       By petition filed September 30, 1998, Kalama Telephone Company, seeks 
approval in Docket UT-980357 of its IntraLATA Presubscription Implementation 
Plan (Plan).  The petition is filed pursuant to The Telecommunications Act of 
1996 (Telecom Act), and by agreement with Commission Staff.
   
  The Plan includes a proposal that explains how Kalama Telephone Company will 
offer intraLATA toll dialing parity in the state, a proposal for timely 
notification of its subscribers, and the methods it proposes to use to enable 
subscribers to select an intraLATA toll service provider.

           DISCUSSION

     Kalama Telephone Company, Inc. proposes to implement a modified 2-PIC 
Primary Interexchange Carrier (IXC) and a full 2-PIC methodology for intraLATA 
presubscription.  Under a modified 2-PIC system, the subscriber may 
presubscribe to have originating intraLATA calls carried either by the 
subscriber’s presubscribed interLATA IXC or by the company.  Under a full 2-PIC 
system, the subscriber may presubscribe to any available IXC to carry 
originating intraLATA toll calls, regardless of the identity of the IXC to 
which the subscriber’s interLATA toll is presubscribed.

  The petition addresses the following issues.  A PIC change charge will be 
incurred and billed to the customer for each eligible line when an intraLATA 
PIC change is made.  This charge will be waived for the initial selection 
occurring following implementation of the Plan.  Customer notification will be 
provided by direct 

   Docket UT-980357        Page 2

mailing or by bill insert.   Interexchange carriers who provide interLATA 
service will be given 30 days notice of the availability of intraLATA 
presubscription.  These issues will be reviewed when the accompanying tariff is 
filed.

  Staff believes that any deviation from a full 2-PIC methodology should be 
justified by the company.  No supporting documents were submitted by the 
company, therefore the modified 2-PIC should be denied. 


FINDINGS OF FACT
   
 1.  The Commission is an agency of the state of Washington vested by statute 
with the authority to regulate the rates, rules, regulations, practices, 
accounts,
securities, and transfers of public service companies, including 
telecommunications companies.

 2.  Section 261(c) [47 U.S.C. 261] of the Telecom Act provides that a State 
may impose requirements on a telecommunications carrier for intrastate services 
that are necessary to further competition in the provision of telephone 
exchange service or exchange access, as long as the State's requirements are 
not inconsistent with the Telecom Act or the FCC's regulations to implement the 
Telecom Act.

 3.  Section 251(b)(3) [47 U.S.C. 251] of the Telecom Act requires all local 
exchange carriers to provide dialing parity to competing providers of telephone 
exchange service and telephone toll service.

 4.  47 C.F.R. §§ 51.209-51.215 sets forth the interstate, intraLATA toll 
dialing parity requirements of all local exchange carriers.

 5.  Kalama Telephone Company is engaged in the business of furnishing 
telecommunications services, including, but not limited to, basic local 
exchange service within the state of Washington.

 6.  Kalama Telephone Company filed a petition seeking approval of its Plan to 
implement dialing parity in its operating area within the state of Washington.  
The company should implement the full 2-PIC, the modified 2-PIC proposed is 
denied.

CONCLUSIONS OF LAW

      1.  The Commission has jurisdiction over Kalama Telephone Company and the 
subject matter of this petition under RCW 80.01.040(3).  Section 261(c) [47 
U.S.C. 261].           


 2.  The petition is consistent with the public interest, convenience, and 
necessity with the exception of the modified 2-PIC proposal.  

 3.  The petition meets the requirements set forth in  47 U.S.C. Section 
251(b)(3) and 47 C.F.R. §§ 51.209-51.215.  

 4.  The requirements imposed pursuant to the petition are not inconsistent 
with the Telecom Act or the FCC's regulations to implement the Telecom Act.


ORDER

  THE COMMISSION ORDERS That the petition by for approval of its IntraLATA 
Presubscription Implementation Plan is approved with the exception of the 
modified 2-PIC.

  DATED at Olympia, Washington and effective this 16th day of November, 
1998.    
   
  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

     

     
      ANNE LEVINSON, Chair



      WILLIAM R. GILLIS, Commissioner