Agenda Date: April 28, 1999 Item Number: Docket: UT-980083 Registration, Competitive Classification, and Price Lists of Telecommunications Companies Staff: Sondra Walsh, Policy Research Specialist Fred Ottavelli, Program Consultant Tony Cooke, Utilities Rate Research Specialist Dave Dittemore, Engineer Mary Taylor, Consumer Program Specialist Shannon Smith, Assistant Attorney General Terrence Stapleton, Director - Legal, Accounting, Policy Development Recommendation: Adopt, amend, and repeal the attached provisions in chapter 480-120 WAC governing Registration, Competitive Classification, and Price Lists of Telecommunications Companies. Rulemaking Process: Staff initiated review of the rules in chapter 480-121 WAC governing Registration, Competitive Classification, and Price Lists of Telecommunications Companies, in compliance with the Governor’s Executive Order 97-02 which requires agencies to review their rules for clarity, intent and statutory authority, need, effectiveness and efficiency, coordination, cost, and fairness. On June 17, 1998, the Commission filed a Preproposal Statement of Inquiry (CR-101) with the Office of the Code Reviser to initiate a review of the rules in chapter 480-121 WAC. Comments were received from persons interested in the subject matter on July 15, 1998. On August 7, 1998, the Commission notified interested persons of the opportunity to participate and file comments through a letter that included Commission Staff’s concerns with the current rules. An amended CR-101 was filed August 5, 1998. The amended CR-101 and letter requested a response date of August 28, 1998. A Notice of Workshop and Notice Of Opportunity To Submit Written Comments was mailed to interested persons on November 30, 1998; the workshop was held on December 16, 1998. The meeting was attended by U S WEST and Telecommunications Resellers Association (TRA), both of whom also submitted written comments. Staff incorporated those comments we believed would provide clarity, need, and effectiveness and efficiency. On February 10, 1999, the Commission directed the Secretary to file a Notice of Proposed Rulemaking (CR-102) with the Code Reviser. Written comments were received through April 12, 1999. Since the CR-102 was filed, Staff has worked with interested parties through individual discussions and written comments to further clarify the rules and resolve concerns. Staff wishes to thank those who participated in the process. Docket UT-980083 April 28, 1999 Page 2 Changes to existing rules. The current rulemaking eliminates rules that are no longer needed, adds rules that were unwritten policies, and writes the rules in clear and concise language as directed by the Governor’s Executive Order 97-02. This proposed rulemaking accomplishes placing into rule the Commission’s streamlined process for applications for registration, petitions for competitive classification, and price list filings, minimizing the burden of entry, and establishing the criteria for cancellations of registration. Docket UT-980083 April 28, 1999 Page 1 The following are the proposed changes to chapter 480-121 WAC: 1. Amend WAC 480-121-010 to include rules for processing petitions for competitive classification and price lists. 2. Amend WAC 480-121-020 from, “Number of copies” to “Requirements for registration applications, competitive classification petitions, and price lists.” This rule states the standards for filing applications for registration, petitions for competitive classification, and price lists. 3. Amend WAC 480-121-030, Additional Information. Clarifies that supplemental information may be required for registration application, competitive classification petition, and price list. 4. Amend WAC 480-121-040, Grant or denial of registration, to include conditions for registration which the Commission may impose. Staff proposes adding the following rules to chapter 480-121 WAC. 1. WAC 480-121-XX1, When a supplemental application is required. This rule lists the requirements for a telecommunications company that proposes to expand the services it offers. 2. WAC 480-121-XX2, Rejection of registration application, competitive classification petition, and price list. This rule establishes the basis for rejecting an application and returning it to the applicant. 3. WAC 480-121-XX3, Cancellations. This rule identifies what a telecommunication company must submit to the Commission before it ceases business in this state. 4. WAC 480-121-XX4, Revocation. This rule identifies reasons for revocation of a registration. 5. WAC 480-121-XX5, Petition for competitive classification. This rule establishes the requirements for filing petitions for competitive classification. Staff proposes deleting the following rule. 1. WAC 480-121-050 – Form. Staff is proposing to delete WAC 480-120-050, and instead incorporates these requirements in WAC 480-120-020 (1) (a). Staff believes that deleting the form from the rule will give the Commission greater flexibility to react to the changes in market conditions that affect the registration and competitive classification of telecommunications companies. Staff believes that the proposed rules are fair. Most of the comments received have been incorporated into the attached proposed rules. There remains one area, however, where participants and Staff did not reach agreement. A summary of the disagreement follows: U S WEST proposed adding language to WAC 480-121-XX4 “Supply at the end of the first year of service, and again each subsequent year of service, maps showing where the provider has deployed service, points of interconnection with other providers and any known future plans for deployment within the next calendar year. Applicant must also include in this annual filing, a description of the class or classes of customer (e.g. business or residential) it serves and plans to serve and the number of lines and customers served in each exchange.” The Commission staff does not agree with U S West that the maps should be required. If the Commission determines that this type of information is required in order for the Commission to monitor the status of competition, then the Commission should require all telecommunications companies to provide information about the services they provide in their annual reports to the Commission. The Commission staff does not believe that collecting this information only from applicants and new registrants would provide the Commission with useful information. Copies of all meeting notices mailed by the Commission, discussion drafts, written comments and all materials upon which staff has relied in this rulemaking process are included in the rulemaking file, which is located in the Commission’s record management section. Staff recommends the Commission adopt, amend, and repeal the rules in Chapter 480-121 WAC governing Registration, Competitive Classification, and Price Lists of Telecommunications Companies.