1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of Determining Costs ) DOCKET NO. UT-980311(a) ) for Universal Service ) AT&T’S RESPONSE TO STAFF’S MOTION FOR CLARIFICATION OF THIRD SUPPLEMENTAL ORDER AT&T Communications of the Pacific Northwest, Inc. (“AT&T”) submits this response to Commission Staff’s Motion for clarification of Third Supplemental Order. Staff’s motion seeks clarification that the testimony the Commission refused to strike in the Third Supplemental Order will only be considered “for illustrative purposes.” Staff’s motion in effect seeks the same result as would striking the testimony and simply rehashes its earlier arguments. The Commission’s stated purpose in establishing this adjudicative proceeding was to “produce an estimate of the size of the fund required” and “to produce specific universal service support to which qualifying companies will be eligible, at least initially.” Prehearing Conference Order, June 3, 1998 at 8. The size of the fund can only be determined based upon consideration of such “cost-related” issues as the use and level of a benchmark, the size of the geographic area on which the cost estimates are to be made and the number of lines to be supported. Certainly, the Commission will want to have a complete record, one that fully explores the impact of these various issues upon the size of the fund. Its report to the legislature will only be able to discuss the various options along with the Commission’s recommendations on each of these issues, if there is support in the record in this proceeding. Decisions on the “cost-related” issues which determine the size of any universal service fund were intended to made—and should be made—in this phase of the proceeding. Staff’s motion should be denied. Respectfully submitted this 13th day of August, 1998. AT&T COMMUNICATIONS OF THE PACIFIC NORTHWEST, INC. _________________________________ Susan D. Proctor Maria Arias-Chapleau 1875 Lawrence Street, Suite 1575 Denver, CO 80202 (303) 298-6164