BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION WASHINGTON UTILITIES AND ) TRANSPORTATION COMMISSION, ) DOCKET NO. UT-950200 ) Complainant, ) ) v. ) ) U S WEST COMMUNICATIONS, INC. ) ) Respondent. ) RESPONSE OF AT&T AND MCI AT&T Communications of the Pacific Northwest, Inc. ("AT&T) and MCI Telecommunications Corporation ("MCI") submit the following comments in response to the Washington Utilities and Transportation Commission's ("the Commission") Request for Comments dated December 24, 1997. In order to implement its decision, the following needs to occur: 1. Rates must be established. The Commission should accordingly direct U S WEST to file within ten (10) calendar days, tariffs that fully comply with the Fifteenth Supplemental Order. While the Order established specific rates for certain services, appropriate rates for switched access and toll services have to be calculated. The Commission should further direct that such filing must use the appropriate demand and revenue assumptions utilized by the Commission in its Order. As stated in the Comments of the Interexchange Carriers on Compliance Filing for Fifteenth Supplemental Order dated April 30, 1996, and Comments of Sprint Communications Company L.P., U S WEST's Advice Nos. 2762T and 2763L, dated April 24, 1996, did not calculate the correct rate for switched access as required by the Commission. U S WEST's Attachment B to its Advice Nos. 2762T and 2763L, which sets forth a revenue impact summary, describes an $18,356,603 difference between the Commission's and U S WEST's calculations for the annual revenue effect. U S WEST stated that this amount was then added to switched access revenues, resulting in a switching rate of over 3 cents per minute when the Order set the rate at 2 cents. U S WEST withdrew these tariffs on April 30, 1996, after the Superior Court granted its stay of the Order. The Commission's determinations of the revenue effect are summarized on page 129. Thus, switched access revenues should be reduced $34.3 million, and message toll services would be reduced $26.9 million. 2. Rate changes should be coordinated. Once rates have been established for switched access, In anticipation of controversy, the Commission may wish to establish a short period for interested parties to comment upon the U S WEST rate calculations. AT&T and MCI will be able to file price lists implementing their commitments to reduce their Washington State toll prices. In addition, if the Commission approves increases for basic residential customers in Docket No. UT 970766, consideration should be given to assuring that toll reductions take effect at the same time as any increases Customer confusion would also be minimized if reductions to business rates were coordinated with the proposed increase of $2.00 from Docket No. UT-970766. by mandating these vary significant reductions in Docket No. UT 950200 in a timely manner with the Commission's decisions in UT 970766, Washington consumers would find their total telecommunications bill easier to understand as well as potentially unchanged or even reduced. 3. Refunds will be decided by the Superior Court. At U S WEST's request over the objections of all the other parties (to this case), the Superior and Supreme Court stayed the Commission's Order pending U S WEST's appeals. As a result of the Court's Stay orders, U S WEST has been collecting revenues from Washington ratepayers substantially in excess of revenues permitted by the Commission's Order. The Supreme Court will issue its mandate to the Superior Court which has jurisdiction to order the refunds due as a result of the courts' stays of the Commission's Order. Any Commission action must await the remand from the Superior Court. AT&T and MCI suggest the schedule as set forth above and do not believe that a prehearing conference is necessary. Washington consumers have been overpaying for telephone service almost $100 million annually since mid-1996. The Commission should give U S WEST specific directions in order to assure that this situation is now, at last, remedied. Respectfully submitted this 2nd day of January, 1998. MCI TELECOMMUNICATIONS CORPORATION Rogelio E. Peņa Senior Attorney 707 17th Street, Suite 3600 Denver, Colorado 80202 888-475-7218, ext. 91 Clyde D. McIver Miller, Nash, Weiner, Hager & Carlsen 4400 Two Union Square 601 Union Street Seattle, Washington 98101-2352 206-622-8484 AT&T COMMUNICATIONS OF THE PACIFIC NORTHWEST, INC. ______________________________ Maria Arias-Chapleau Susan D. Proctor 1875 Lawrence Street, Suite 1575 Denver, Colorado 80202 (303) 298-6164