BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the Matter of the Application ) for Sale and Transfer of Assets, ) DOCKET UT-991582 from ) ) U S WEST Communications, Inc. ) ) Order Approving Stipulation to ) and Granting Application ) Citizens Telecommunications Company ) of Idaho ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) On October 18, 1999, Citizens Telecommunications Company of Idaho (CTC-Idaho) and U S WEST Communications, Inc., (U S WEST) filed with the Commis sion a joint application for an order authorizing the transfer of property related to the Clarkston, Washington exchange. CTC-Idaho seeks an order approving the transfer to CTC-Idaho of the telecommunications assets used to provide local exchange service in the Clarkston exchange. U S WEST seeks an order from the Commission approving the transfer of the exchange and associated facilities from U S WEST to CTC-Idaho. CTC B Idaho was registered as a telecommunications company in the State of Washington in Docket UT-991581. CTC-Idaho's application asserts that it is technically and financially qualified to operate the Clarkston exchange, and was supported with exhibits demonstrating its financial condition and its ability to operate that exchange. On June 27, 2000, U S WEST, CTC-Idaho and the Commission Staff entered a Stipulation in which they agree on all issues raised by this joint application. The Stipulation is attached to this order and is incorporated herein by this reference. Pursuant to the Stipulation, CTC-Idaho agrees to adopt applicable U S WEST intrastate rates which are in effect on the closing date for the Clarkston exchange. A rate cap will be in effect for the Clarkston exchange for a period of 24 months following the closing date of the sale. CTC-Idaho also will negotiate interconnection agreements with all telecommunications service providers that currently have interconnection agreements with U S WEST and currently provide services in the Clarkston exchange. CTC-Idaho expects to reach agreement with all such providers before closing. FINDINGS THE COMMISSION FINDS: 1. The Washington Utilities and Transportation Commission is an agency of the state of Washington vested by statute with authority to regulate rates, services, facilities, practices, rules, accounts, and transfers of public service companies, including telecommunications companies. 2. U S WEST Communications, Inc. and Citizens Telecommunications Company of Idaho, are public service companies subject to the jurisdiction of this Commission under the provisions of Chapter 80.12 RCW. 3. As to form, the application herein meets the requirements of Chapter 80.12 RCW and the rules and regulations of the Commission adopted pursuant thereto. 4. The Stipulation resolves the issues pending in this proceeding including the ultimate issue of whether the proposed transfer is "inconsistent with the public interest" under WAC 480-143-170. 5. Subject to the terms of the Stipulation, the proposed transfer is not inconsistent with the public interest. 6. The Commission does not object to the FCC granting study area waiver nor to any configuration of study area boundaries involving the Clarkston exchange. O R D E R THE COMMISSION ORDERS: 1. The Stipulation is approved and adopted as part of this Order as if set forth fully in the body of this Order; and 2. The joint application of Citizen Telecommunications Company of Idaho and U S WEST Communications, Inc., for approval of the sale and transfer of the exchange property is approved, subject to the terms of the Stipulation. 3. The Commission retains jurisdiction to effectuate the provisions of this Order, including the terms and conditions of the Stipulation. DATED at Olympia, Washington, and effective this day of June, 2000. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION MARILYN SHOWALTER, Chairwoman RICHARD HEMSTAD, Commissioner WILLIAM R. GILLIS, Commissioner