BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Petition of
Z-TEL COMMUNICATIONS, INC.
For Waiver of WAC 480-120-540
Terminating Access Charges
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	)	        DOCKET UT-001257
		        
		         ORDER GRANTING WAIVER OF WAC 480-120-540, TERMINATING ACCESS CHARGES 

                                                                                
                   


BACKGROUND 
                  By petition filed August 18, 2000, in Docket UT-001257, Z-Tel 
Communications, Inc., (Z-Tel) requests a waiver of WAC 480-120-540, Terminating 
Access Charges. The waiver request was brought before the Commission at its 
regularly scheduled open public meeting of August 30, 2000. 
                 
DISCUSSION
                   Z-Tel is a facilities-based telecommunications company. In 
Docket UT-980837, Z-Tel was registered, classified as a competitive 
telecommunications company, and authorized to provide local and interexchange 
telecommunications services throughout the state of Washington.
                  WAC 480-120-540 only permits a local exchange company to 
include in its terminating switched access rates a charge for recovery of any 
costs for support of universal access to basic telecommunications service when 
authorized by the Commission. Z-Tel is not currently authorized to do so, nor 
has it ever demonstrated any universal access costs of the type solicited and 
examined in Docket UT-980311(a).
                  In Docket UT-990307 the Commission granted a waiver of WAC 
480-120-540 to five competitively classified local exchange carriers subject to 
conditions. Therefore, Z-Tel is also requesting a waiver of WAC 480-120-540, at 
this time. 
        
                  The Commission has the authority to impose conditions on our 
waiver of WAC 480-120-540 for Z-Tel, and we find it reasonable and appropriate 
to do so in this instance. We will require Z-Tel to file price lists for 
terminating access service at rates not to exceed those charged by Qwest 
Corporation, f/k/a U S WEST Communications, Inc., and Verizon Northwest 
Incorporated, f/k/a GTE Northwest Incorporated in their respective service 
territories. The Commission notes that RCW 80.36.320(4) authorizes the 
Commission to "revoke any waivers it grants" and to "reclassify any competitive 
telecommunications company if the revocation or reclassification would protect 
the public interest." Our action granting waiver of  WAC 480-120-540 is an 
interim step, and we may revisit waiver of the rule upon consideration of any 
new universal service funding measures or programs. 
                                                                                
                  The Commissioners, having been fully advised in the matter, 
and having determined the following order to be consistent with the public 
interest, directed the Secretary to enter the following order and related 
provisions. 
                                                                               
ORDER
                  THE COMMISSION ORDERS That the request for waiver of  WAC 
480-120-540, Terminating Access Charges, by Z-Tel Communications, Inc., is 
granted as conditioned in the text of this Order.
                  DATED at Olympia, Washington, and effective this 30th day of 
August, 2000.
                  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
                                                              CAROLE J. 
WASHBURN, Secretary