BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Petition of: AT&T COMMUNICATIONS OF THE PACIFIC NORTHWEST, INC., TCG SEATTLE, TCG OREGON, For Extension of Waiver of Administrative Rules ………………………………………… ) ) ) ) ) ) ) ) ) ) ) ) ) DOCKET NO. UT-000441 DOCKET NO. UT-000442 DOCKET NO. UT-000443 ORDER GRANTING, IN PART, AND DENYING, IN PART, PETITION FOR EXTENSION OF RULE WAIVER BACKGROUND 1 On March 7, 2001, AT&T Communications of the Pacific Northwest, Inc., and AT&T Local Services on behalf of TCG Seattle and TCG Oregon (collectively "AT&T") filed a petition with the Commission to extend its current waiver of WAC 480-120-139(5) pertaining to offering preferred carrier freezes to local exchange customers. 2 WAC 480-120-139(5), adopted November 30, 1999, and effective March 1, 2000, requires local exchange companies to offer a preferred carrier freeze to all of their customers for local exchange, interlata, and intralata services. On March 24, 2000, AT&T filed a petition requesting a waiver for local exchange services because it did not have the processes and technology in place to implement local carrier freezes in a consistent and cost-effective manner. The Commission approved this petition on April 26, 2000. The existing waiver covers two separate rule requirements. First, the waiver exempts AT&T from providing a preferred carrier freeze to its local exchange customers under WAC 480-120-139(5)(c) through (e). Second, the waiver exempts AT&T from the requirement to notify customers about the option of a preferred carrier freeze for local exchange customers under WAC 480-120-139(5)(a) and (b). 3 AT&T requests an extension of this waiver until September 1, 2001. The company contends that implementation of local exchange freezes is dependent upon the development of processes in the industry that will be efficient for carriers as well as customers. AT&T is developing these processes with Qwest Corporation as well as refining its internal processes to implement preferred carrier freezes. Without this extension the company must manually "flag" a customer's account to identify a local carrier freeze on the account, a process that AT&T asserts is prone to human error. 4 In addition, the company, even if it was required to provide a manual preferred carrier freeze for local exchange customers, does not wish to notify its customers that such an option exists. It contends that such a notice could produce a large number of customers choosing a preferred carrier freeze. This would over-burden the manual process, resulting in a number of errors that would preclude accurate local exchange carrier freezes. 5 In determining whether to grant the petition, the Commission considered a number of factors. First, competition is beginning for residential consumers in the local exchange market. Since September 2000, Consumer Affairs has received over 150 complaints from consumers regarding local exchange competitors. Approximately twenty of the 150 complaints were from customers stating their local exchange service was switched to another carrier without their authorization. Finally, the company has had sufficient time to develop the processes and technology necessary to implement the preferred carrier freeze for local exchange service. Fifteen months have elapsed since the date the rules were adopted. These considerations indicate that customers who wish to have a preferred carrier freeze placed on local exchange service should be afforded that option, in accordance with WAC 480-120-139(5)(c) through (e). Accordingly, the Commission denies the request for waiver of subsections (5)(c) through (e) of WAC 480-120-139. 6 However, the Commission understands AT&T's concern about mass notification to customers that the manual process exists, the burden this would place on the company, and the increased chance for error that would accompany any action where a large number of customers would request a preferred carrier freeze before an automated process is in place. These considerations lead the Commission to believe that AT&T should not be required to notify customers of their option to impose a preferred carrier freeze as required in WAC 480-120-139(5)(a) and (b) until no later August 1, 2001. Accordingly, the Commission grants the request for waiver of subsections (5)(a) and (b) of WAC 480-120-139 until no later than August 1, 2001. The Commission encourages the companies to come back to the Commission as soon as the system is in place to lift the waiver. FINDINGS THE COMMISSION FINDS: 7 1. AT&T Communications of the Pacific Northwest, Inc., TCG Seattle and TCG Oregon are public service companies subject to the jurisdiction of this Commission under the provisions of Chapter 80.36 RCW. 8 2. It appears, upon investigation, the request for waiver of Commission rules by AT&T Communications of the Pacific Northwest, Inc., TCG Seattle and TCG Oregon in WAC 480-120-139(5)(c) through (e), the requirement that a company offer a preferred carrier freeze for local exchange service, is not reasonable nor consistent with the public interest and should therefore be denied. 9 3. It further appears, upon investigation, the request for waiver of Commission rules by AT&T Communications of the Pacific Northwest, Inc., TCG Seattle and TCG Oregon in WAC 480-120-139(5)(a) and (b), notification to customers, is reasonable and consistent with the public interest and should therefore be granted until no later than August 1, 2001. ORDER THE COMMISSION ORDERS: 10 The petition of AT&T Communications of the Pacific Northwest, Inc., TCG Seattle and TCG Oregon filed with the Commission requesting an extension of the waiver of WAC 480-120-139(5) is denied in part and granted in part. The Commission denies AT&T Communications of the Pacific Northwest, Inc., TCG Seattle and TCG Oregon's request for a waiver of WAC 480-120-139(5)(c) through (e), and grants the request for a waiver of WAC 480-120-139(5)(a) and (b) until no later than August 1, 2001. DATED at Olympia, Washington, and effective this 21st day of March, 2001. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION MARILYN SHOWALTER, Chairwoman RICHARD HEMSTAD, Commissioner