Docket No. UT-970325 March 13, 1998 Page 1 March 13, 1998 OPPORTUNITY TO FILE REPLY COMMENTS AND OPPORTUNITY TO RESPOND TO COMMISSION STAFF’S REVISED PROPOSAL (April 8, 1998) Re: Petition for Investigation into the Cost of Universal Service and to Reform Intrastate Carrier Access Charges Docket UT-970325 TO ALL INTERESTED PERSONS: On January 21, 1998, the Commission issued a “Notice of Opportunity to File Comments” in this rule making proceeding. Written comments were received by eleven parties Copies of the comments of other parties may be obtained through the Commission’s Records Center by calling 360-664-1234, or by accessing the Commission’s web site at < http://www.wutc.wa.gov/telecom/access_reform>.. Two parties had requested the opportunity to file reply comments. The Commission agrees that such an opportunity would be worthwhile and authorizes all interested persons to file reply comments. Additionally (and concurrently), the Commission would like all parties to respond to the Staff’s revised access charge reform proposal as outlined below: (1) Terminating access charge(s) should be priced at total service long-run incremental cost (TSLRIC), and no greater than local interconnection termination charge(s). (2) Explicit high-cost support should be collected, and, in the interim (until a competitively neutral funding mechanism is developed), as an additional rate element on terminating access charge traffic. (3) Any reduction in revenues resulting from implementation of items (1) and (2) above can be offset by increasing originating access charges or other rates as the Commission may approve. Obligation to Serve Issue The obligation to serve issue See, Fourth Supplemental Order Rejecting Tariff Filing, Docket No. UT-961638 (January 16, 1998), for a discussion of the tariff revisions proposed by U S WEST Communications, Inc., purporting to relieve it of its obligation to serve pursuant to RCW 80.36.090. will be explicitly added to this rule making proceeding through a supplemental Preproposal Statement of Inquiry (CR-101). Formal Commission notice of the opportunity to file comments and to participate in a workshop dedicated to the “obligation to serve” issue will be forthcoming and will be outlined in the supplemental CR-101. The Commission anticipates calling for written comments on this issue to be filed April 17, 1998, and scheduling a workshop to be conducted at 9:30 a.m., Tuesday, April 21, 1998, in the Hearing Room at the Commission’s office in Olympia. However, parties should reference the actual supplemental CR-101 for formal notice of these events which will follow shortly. Revised Rule Making Schedule (Enclosure) The revised rule making schedule is enclosed with this letter. Changes have been made in order to accommodate issues, events, and the Commission Staff’s revised proposal regarding access charges. This revised schedule also will be posted to the Commission’s web site. NOTICE is given of the opportunity to file written reply comments and to respond to Commission Staff’s revised proposal regarding access charges in this rule making proceeding. Both reply comments and written responses to Commission Staff’s revised proposal should be filed with the Commission not later than 5:00 p.m., Wednesday, April 8, 1998. If you are filing on behalf of a telecommunications company or formal organization, we ask that your cover letter identify a single point of contact for this rule making at your company or organization and provide voice and facsimile telephone numbers and e-mail address for that individual. All other interested persons are likewise invited to supply this information at your discretion. In light of the critical importance and widespread interest in this proceeding, we ask that commenters file an original and ten written copies of your comments, and an electronic copy on a 3½-inch IBM formatted high-density disk, preferably in WordPerfect version 5.1, 6.0, or 6.1, labeled with the party's name and type of software used, and the docket number of this proceeding. The electronic files will be posted to the Commission's web site at: . Once again, the Commission thanks you for your participation in this process. If you have any questions or comments regarding this letter, please contact Tim Zawislak, Policy Research Specialist (Telecommunications Analyst), at 360-664-1294, or via e-mail at . Sincerely, PAUL CURL Acting Secretary Enclosure Rulemaking Schedule (Revised March 11, 1998) Petition for Investigation into the Cost of Universal Service and to Reform Access Charges; Docket No. UT-970325 08/08/97 - AT&T Filed Petition 10/08/97 - Open Meeting that commenced Rulemaking 10/22/97 - Filed CR-101 (“Preproposal Statement of Inquiry”) at the Code Reviser’s Office 11/21/97 - Initial Written Comments Filed at the Commission 12/12/97 - Workshop Letter Mailed to Interested Parties (including Draft Staff Report) 01/01/98 - Staff Report on Access Charge Reform Options posted to the Commission’s website * 01/13/98 - Workshop at the Commission’s Main Hearing Room (all day) 02/13/98 - Subsequent Written Comments Filed at the Commission * * * * * 03/11/98 - Open Meeting to initiate Supplemental CR-101 (obligation to serve), and Open Meeting to update Commission with Staff’s REVISED Proposal. 03/13/98 - Letter mailed to Interested Parties. 03/18/98 - Not later than, to file “obligation to serve” CR-101 with Code Reviser. 04/01/98 - Expected Publication Date of Supplemental CR-101 in the State Register. 04/08/98 - Reply Comments Due and Comments Due on Staff’s REVISED Proposal 04/17/98 - Comments Due on Obligation to Serve Issue 04/21/98 - Workshop for Obligation to Serve Issue - 9:30am (morning only) 05/13/98 - Open Meeting to Initiate CR-102 (“Proposed Rulemaking”) 06/24/98 - Open Meeting Adoption Hearing 09/01/98 - Proposed Effective Date of New Rules 10/15/98 - File Tariffs (issue date of 45 days after rules effective) 12/01/98 - Effective Date of Tariffs (45 days after tariffs issued) - (1 month to work out unresolved issues) - 01/01/99 - Implementation Date of Tariffs (consistent with the implementation of a new federal universal service fund, state access charge regime, and obligation to serve expectations)