BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Pricing proceeding for Interconnection, Unbundled Elements, Transport and Termination, and Resale .....................................................................…... .. In the Matter of the Pricing Proceeding for Interconnection, Unbundled Elements, Transport and Termination, and Resale for U S WEST COMMUNICATIONS, INC. ………………………………………………….. In the matter of the Pricing Proceeding for Interconnection, Unbundled Elements, Transport and Termination, and Resale for GTE NORTHWEST INCORPORATED ) ) ) ) ) ) ) ) ) ) ) ) ) ) PHASE II DOCKET NOS. UT-960369, UT-960370, UT-960371 U S WEST’S RESPONSE TO COMMISSION REQUEST TO CROSS REFERENCE TESTIMONY WITH ISSUES LIST AND OBJECTIONS TO CERTAIN ISSUES U S WEST Communication, Inc. (U S WEST) responds to the Commission’s Notice of Publication of Issues List; Notice of Requirement to Cross-Reference Testimony Filed July 9, 1998 in the above dockets. Following is the cross-reference of U S WEST’s testimony to the published Issues List. Issues Reference Order Section IV — Transition Costs ¶40; 41; 523 Issue IV-1 (Legal): Does the 96 Act require the Commission to provide for recovery of all “transition” costs which an ILEC incurs in complying with the Act? M. Reynolds at 9-10. D. Buhler at 1 and 23 Issue IV-2 (Legal): If the answer to Issue IV-1 is yes, does the Act allow the Commission to apply the wholesale discount to an ILEC’s transition costs? U S WEST will address on brief. Issue IV-3 (Legal): If the answer to Issue IV-1 is no, to what extent may the Commission provide for recovery of ILEC transition costs? D. Buhler, generally and specifically, at 23-24. Issue IV-4 (Policy): If the answer to Issue IV-3 is yes, to what extent should the Commission provide for recovery of ILEC transition costs in this proceeding? D. Buhler, generally and specifically, at 23-24. Issue IV-5 (Factual/Methodological): If the Commission decides under Issue IV-4 that is should provide for recovery, what are U S WEST’s and GTE’s transition costs? D. Buhler at 15-20. Issue IV-6 (Methodological): If the Commission decides under Issue IV-4 that is should provide for recovery, what is the most appropriate recovery mechanism? D. Buhler at 15-20. Order Section V — Element Costs ¶ 20; 25; 61; 148; 152; 251; 257; 491; 525 Issue V.1 (Legal): Does the 96 Act require the Commission to provide for recovery of all of an ILEC’s “actual costs” through UNE Prices? U S WEST will address this issue on brief. Issue V.2 (Legal): Does the 96 Act allow the Commission to provide for interim recovery of universal service costs through UNE prices? U S WEST will address this issue on brief. Issue V.3 (Policy): If the answer to Issue V.2 is yes, to what extent should the Commission to provide for interim recovery of universal service costs through UNE prices? U S WEST will address this issue on brief. Issue V.4 (Policy): To what extent should the Commission provide for recovery of Direct Costs through UNE prices? U S WEST’s prices are all based on and provide recovery for direct costs. See, generally, M. Reynolds testimony; specifically at 3:17-4:19. Issue V.5 (Legal): If the answer to Issue V.1 is no, does the 96 Act require the Commission to provide for recovery of all of an ILEC’s common costs through UNE Prices? M. Reynolds at 7:1-14. Issue V.6 (Policy): If the answer to Issue V.5 is no, to what extent should the Commission provide for recovery of common costs? M. Reynolds at 7:1-14. Issue V.7 (Factual/Methodological): If the Commission must or should provide for recovery of common costs, what are GTE’s common costs? Not addressed. Issue V.8 (Factual/Policy): To what extent is Staff’s 20% markup for attributable costs appropriate? M. Reynolds at 7:1-14. Issue V.9 (Policy): to what extent should the Commission provide factor market share loses, or other competitive loses, into UNE prices? Not addressed in testimony; U S WEST will address on brief. Issue V.10 (Policy): To the extent the Commission decides to provide for recovery of more than the direct cost of UNE’s, should the Commission adopt a uniform markup or a percentage that varies by UNE? M. Reynolds at 4:17 -5:25. Issue V.11 (Policy): To what extent should the Commission provide for recovery of “conditioning” (i.e. removal of load coils and bridge taps)? M. Reynolds at 11:22 -12:25. Issue V.12 (Methodology): If the Commission resolves Issue V.11 by providing for cost recovery, what is the most appropriate cost recovery mechanism? M. Reynolds at 11:22 -12:25. Order Section VIII. Avoided Costs ¶ 349 (OS/DA Avoided Costs Studies); 356; 533 Issue VIII-1 (Policy): What avoided cost discount should the Commission apply to resold operator services and directory assistance services? M. Gude testimony generally; specifically at 3 and 12. Order Section IX: Collocation ¶ 417; 418; 419; 515 Issue IX-1 (Factual): Do the collocation cost studies which U S WEST and GTE submitted comply with the FCC’s collocation orders? M. Reynolds at 15 - 17. Issue IX-2 (Policy): To what extent should the Commission authorize U S WEST and GTE to recover to following costs through collocation prices: See, generally, M. Reynolds. Further, U S WEST objects to the inclusion of these issues as set forth herein. Direct costs? See above. Directly and indirectly attributed and assigned costs? See above. Common costs? See above. Other costs? See above. Issue IX-3 (Policy): Should the Commission cap ILEC collocation charges at prevailing market rates, and if so, how should those rates be determined? U S WEST objects to the inclusion of this issue. Issue IX-4 (Policy): If the answer to Issue IX-3 is yes, how should the Commission determine the prevailing market rates? U S WEST objects to the inclusion of this issue. Issue IX-5 (Factual): If the answer to Issue IX-3 is yes, what are the prevailing market rates? U S WEST objects to the inclusion of this issue. Issue IX-6 (Policy): To what extent should the Commission require ILECs to allow requesting carriers to self-provision or to arrange for a mutually acceptable third party to provide collocation site preparation and nonrecurring collocation facilities construction services? M. Reynolds at 17:22. Issue IX-7 (Policy): To what extent should the Commission require, or allow requesting carriers to require, ILECs to solicit bids from outside contractors for site preparation work? M. Reynolds at 17:22. X. Local Number Portability ¶ 435 Issue X-1 (Policy): What is the most appropriate cost recovery method for recovering interim local number portability (INP)? U S WEST will address this issue in subsequent rounds of testimony. Issue X-2 (Policy): If the Commission resolves Issue X-1 by requiring or allowing LEC’s to charge other LECs for INP, to what extent should the Commission require the LEC providing INP to pay any interexchange access charges for the call to the LEC paying for INP? U S WEST objects to the inclusion of this issue. XI. Transport & Termination ¶ 443; 518; 536 Issue XI-1 (Policy): What is the most appropriate recovery mechanism for unbundled interoffice transport? U S WEST has addressed this issue in comments previously filed in this docket, and discusses it in M. Reynolds testimony at 8:16-26 and 9:1-2. U S WEST proposes prices for transport in accordance with Exh. MSR-2. XII. Nonrecurring Costs ¶ 461; 478; 481; 519; 538 Issue XII-1 (Factual): Do the UNE nonrecurring cost studies which U S WEST filed on May 18, and revised on June 19, 1998, and GTE filed on May 19, and revised on June 5, 1998, comply with the Commission’s Eighth and Ninth Supplemental Orders? M. Reynolds at 12:26 - 13:24. Issue XII-2 (Policy): To what extent should the Commission facilitate competitive entry by requiring ILECs to recover nonrecurring UNE costs on a recurring basis? U S WEST objects to the inclusion of this issue. Issue XII-3 (Policy): To what extent should an ILEC recover the costs of “turning up” additional channels once a transport facility is in place? M. Reynolds at 13:25 - 14:3. Issue XII-4 (Policy): To the extent the Commission resolves Issue XII-3 by requiring or allowing cost recovery, what is the best cost recovery mechanism? M. Reynolds at 13:25 - 14:3. Issue XII-5 (Factual): What nonrecurring costs do U S WEST and GTE incur in separating an unbundled port from unbundled switching? M. Reynolds at 14. Issue XII-6 (Policy): What is the appropriate cost recovery mechanism for the cost of separating the loop and the switch? M. Reynolds at 14. Issue XII-7 (Policy): Should the Commission require separate charges for connection and disconnection? U S WEST proposes a single charge and will address this issue in subsequent rounds of testimony. XIV. Findings Section ¶ 510 Issue XIV-1 (Factual): Are U S WEST’s and GTE’s resale customer transfer cost estimates reasonable? M. Reynolds at 11:2-21; D. Buhler at 21 and 22. Issue XIV-2 (Policy): Should the Commission allow ILECs to recover customer transfer costs through a non-recurring charge? M. Reynolds at 11:2-21; D. Buhler at 21 and 22. Compliance Filings Issue CF-1 (Factual/Legal): Are the terms and conditions for in the tariffs U S WEST and GTE in compliance with the Commission’s 8th and 9th Supplemental Orders in this proceeding consistent with those orders, federal law, and state law? U S WEST has stated its position on these issues in its Petition for Reconsideration filed earlier in this docket and did not file testimony on these issues. Issue CF-2 (Legal/Policy): What relationship, if any, exists between the terms and conditions in these tariffs and negotiated or arbitrated interconnection agreements? U S WEST has stated its position on these issues in its Petition for Reconsideration filed earlier in this docket and did not file testimony on these issues. OBJECTIONS TO CERTAIN ISSUES U S WEST objects to the inclusion of certain of the above issues in this proceeding, as noted in the table. U S WEST had no meaningful opportunity to participate in the preparation of this Issues List and therefore believes it is inappropriate to move forward with this designation of the Issues for purposes of this proceeding. U S WEST, in compliance with the Commission’s direction, filed its Issues List on June 24, 1998. U S WEST received a copy of GTE’s Issues List on or about that same date. U S WEST did not receive a copy of the CLEC’s Issues List and was entirely unaware that the CLECs had filed an Issues List until after the Administrative Law Judge published his Issues List referencing CLEC issues. Subsequent investigation revealed that U S WEST had not been served with the CLEC Issues List. This is reflected by the Certificate of Service. U S WEST did not receive a copy of that list until it was requested on July 20, 1998. Thus, U S WEST had no opportunity to comment on the CLEC proposed issues and to explain prior to the publication of the Issues List why many of the CLEC issues were not appropriate for inclusion in this docket. Specifically, as set forth in U S WEST’s objections to various discovery requests and the pleadings which will be filed concerning that issue on July 22, 1998, U S WEST believes that the inclusion of collocation issues as set forth by the CLECs is entirely inappropriate for this stage of the proceeding. Respectfully submitted this 21st day of July, 1998. U S WEST Communications, Inc. By:_______________________________ Lisa A. Anderl, WSBA No. 13236