March 23, 1998 Notice of Meeting Universal Service Issues Docket No. UT-980311 (March 31, 1998) The Telecommunications Act of 1996, Telecommunications Act of 1996, Public law No. 104-104, 110 Stat. 56, codified at 47 U.S.C. § 151 et seq. (1996) (“the 1996 Act or “the Telecom Act”). state law, RCW 80.01.040, RCW 80.36.080, RCW 80.36.140, and RCW 80. 36.300. and sound regulatory policy (as reflected, e.g., in the Commission’s recent report to the Legislature “Preserving and Advancing Universal Service in a Competitive Environment” Washington Utilities and Transportation Commission, January 1998.) require that the Commission investigate the costs of providing basic telecommunciations service in high-cost areas, so that the Commission and the public can be made aware of the costs of providing service and so that sound judgments may be made about the means of allocating and recovering such costs. The Legislature enacted a measure, Engrossed Substitute Senate Bill 6622, which may be signed into law, that would require the Commission to conduct such an investigation. The Commission and Commission Staff want to begin the process of investigation and want to involve as many persons and interests as possible in developing suitable processes to accomplish the investigation. In this notice the agency identifies issues that may be addressed, states Commission Staff’s preliminary thoughts, and asks interested persons to attend a preliminary meeting or submit written comments. ISSUES (1) High-Cost. The main purpose of the ensuing process will be to determine the cost of supporting universal service. Determination of cost will involve the designation of the methodology or methodologies Two methodologies may be required to accommodate both rural and non-rural companies. Rural and non-rural companies are defined in 47 U.S.C. § 153(37). to be employed. Related issues may include the cost of service for a primary line for each residence and business in high-cost locations and the cost of service for additional lines for residential and business customers in high-cost locations. See ESSB6622, Section 1(2)(a) and (b) (attached). (2) Designation of Service Areas and ETCs. The Commission must determine the appropriate service areas for the purpose of designating eligible telecommunications carriers (ETCs). See 47 U.S.C. § 214(e). A service area might consist of an incumbent’s “study area,” a single exchange, or some geographic unit below the exchange level. For each service area, the Commission may designate one or more ETCs who will receive universal service support and will be required to offer all basic telecommunications services throughout the service area. FORM OF PROCEEDING Commission Staff contemplates a two-part proceeding. Because the administration of any potential universal service program would involve establishing standards and processes, Staff contemplates initiating a rulemaking proceeding with the filing of a CR-101. Because of the desirability of procedural safeguards in conducting the investigation of costs, Staff is contemplating conducting the investigation into costs of providing local service in high-cost locations as an adjudication under RCW 34.05.413(1). Doing so would also be consistent with the investigation directed by the legislation, if it becomes law. The Commission has already discussed designation of eligible telecommunications carriers in Washington Utilities and Transportation Commission Docket Nos. UT-970333-54 and UT-970356. Additional designations are contemplated. PARTICIPATION The Commission invites all incumbent local exchange carriers, wireless carriers, Public Counsel, and other interested persons, to participate. The Commission invites TRACER, whose interests may be affected by these matters, to participate. The Commission also invites any non-incumbent telecommunications carrier, including wireless and PCS companies, who may seek to be designated an ETC for one or more high-cost service areas or whose interests may otherwise be affected by these matters, to participate. NOTICE OF MEETING NOTICE IS HEREBY GIVEN That a public meeting will held in this matter at 10:00 a.m. on March 31, 1998, at 1300 S. Evergreen Park Drive S.W., Room 108, Olympia, Washington. The schedule of any evidentiary hearings or rulemaking activities will be set by appropriate notice. The purpose of the meeting set in this notice is to consider process issues, potential time schedules, issues that should be addressed, and such other matters as the participants may raise and the presiding officer may direct. The Commission’s teleconference bridge line will be available for this meeting. A limited number of teleconference ports are available and will be assigned one to an organization, first come first served. Persons wishing to attend via the teleconference bridge line must contact Shirley Burrell at 360-664-1140 no later than 3:00 p.m., Monday, March 30, 1998. The form attached to this notice may be completed and returned if any person needs an interpreter or other assistance. The Commission also invites written comments, which will be timely if received in the Commission offices, referencing Docket No. UT-980311, by noon on Monday, March 30. All commenters are asked, but not required, to file an original and 10 copies of their written comments. The Commission also requests, but does not require, that comments be provided on a 3½ inch IBM formatted high-density disk, in WordPerfect version 5.1, 6.0, or 6.1, labeled with the docket number of this proceeding and the commenter’s name and type of software used. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION PAUL CURL Acting Secretary