Agenda date:  April 9, 1997
Item No.:

Docket:  UT-970545
   Possible rulemaking to seek improved means to     redefine local calling 
areas and to provide for more     flexible interexchange call pricing

Staff:   Bethany Weidner, Policy Advisor
   Tim Zawislak, Policy and Rate Research Specialist 
   Lori Kanz & Pam Smith, Consumer Affairs
   Bob Wallis, Review Judge

Recommendation:   
Direct the Secretary to file a preproposal statement of inquiry (CR 101) in 
Docket No. UT-970545.


Discussion:  
  
This rulemaking will explore better ways to redefine local calling areas and to 
provide telephone companies with more flexibility to meet customer demand for 
lower-priced interexchange calling.

Existing rules that govern the expansion of local calling areas were based on a 
statewide standard that focussed on the “local calling capability” for each 
exchange.  The process for achieving the standard was to create “extended area 
service” (EAS) routes between two or more exchanges.  Implementation of the 
existing rule greatly reduced disparities in the scope and price of local 
service across the state.

New rules may be needed because there were difficulties in applying the rule in 
certain situations that were clearly within its intent; and because the 
existing rule does not address the diversity of interest in interexchange 
calling at rates less than toll.

New rules or policy directives that emerge from this proceeding should answer 
and respond to these two fundamental policy questions:

1.  When should subscribers in a telephone exchange have the opportunity to 
call locations in other exchanges (i.e., to make interexchange calls) without 
paying otherwise applicable statewide per-minute toll rates?

2.  What should be reflected in the calculation of the rates for such 
interexchange calls?



Docket UT-970545
April 9, 1997
Page 2

The staff will call for written comments, then set up a workgroup to explore 
the issue and make a preliminary recommendation on whether and how to change 
existing rules and policy.  Consumer and company representatives, policy makers 
and others will be invited to participate in the workgroup.  

The working group will coordinate with the FCC and Federal-State Joint Board to 
make sure any recommendations are consistent with actions in these 
proceedings:  Access Charge Reform (WUTC Staff Investigation UT-960380 and FCC 
Docket No. 96-262); numerous interconnection proceedings before the WUTC 
(deriving from FCC Docket No. 96-123 and CC 96-61 Policy and Rules Re: 
Interstate and Interexchange Marketplace, and including FCC 96-325 CC Dockets 
96-98 and 95-185, the FCC’s Local Competition Order); and Universal Service 
(FCC Docket No. 96-45 and WUTC Staff Investigation UT-960301).  

A set of recommended alternatives will be presented to interested parties and 
members of the public; and will be circulated in draft form for broad public 
comment.  Final evaluation of and recommendations regarding any proposals will 
be developed in light of public comments.

Summary

New or revised rules may be needed to answer the question of when subscribers 
in a telephone exchange should have the opportunity to call locations in other 
exchanges (i.e., to make interexchange calls) without paying otherwise 
applicable statewide per-minute toll rates; and how such calls should be priced.

The Commission should direct the Secretary to file a preproposal statement of 
inquiry into the nature of such rules in Docket No. UT-970545.

Attachment