ORDER NO. 96-054

ENTERED MAR 04 1996

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 384

DISPOSITION: REVISED PETITION FOR WAIVER OF TRANSITION COST FACTORS APPROVED

On November 15, 1995, U S WEST Communications (USWC or Company) filed Advice No. 1625 in its intrastate Access Services tariff to be effective January 1, 1996. The company also filed a Petition for Waiver of Transition Cost Factors and Adherence to Part 69 Access Elements in Docket UM 384. The company extended the filing to February 1 and again to February 21, 1996, to allow time to address staff's cost, demand and rate design concerns. On February 8, 1996, USWC revised its filing and petition.

At its public meeting on February 20, 1996, PUC staff presented a memorandum recommending that the February 8, 1996, revised filing be allowed to go into effect and that the revised petition for waiver be granted. The Commission adopted staff's report, which is attached as Appendix A and is incorporated in this order by reference.

Based upon the application and the Commission's records, the Commission makes the following:

FINDINGS OF FACT

Order No. 93-1133 adopted the 1994 Oregon Customer Access Plan (OCAP). The OCAP anticipates a four year transition time frame; however, a company can petition to accelerate the transition period. USWC was granted a waiver to accelerate the Subscriber Plant Factor (SPF) to Subscriber Line Usage (SLU) transition by one year in Order No. 94-318.

Order No. 94-2075 continued the waiver granted in Order No. 94-318 and granted USWC's revised filing of December 13, 1994, to be effective January 1, 1995.

The current filing seeks continuation of the waiver from the FCC Part 69 rules regarding development of the Local Switching rate. USWC wants to continue the current rate until the conclusion of Docket UM 351. The proposed access rates would reflect the fourth and final year of the transition. In addition, USWC proposes to implement local transport restructure in accordance with FCC Part 69, but is seeking waivers from FCC Part 69.108, Transport Rate Benchmark; Part 69.111(2)(g) Tandem Switching Charge; and, Part 69.124, Interconnection Charge. The difference between the revenues collected at the proposed local switching and transport rates versus the respective Part 69 revenue requirement for those elements will be recovered through the Carrier Common Line rate.

Appendix A gives a detailed explanation of the revised petition and Advice

No. 1626 filing. The annual revenue effect of this filing is a reduction in intrastate access revenues, however, not all customers will experience a decrease.

OPINION

Order No. 93-1133 established the procedure by which a local exchange carrier may petition for a waiver of the transitional cost factors. The Commission concludes that USWC has submitted the information required in that procedure. The Commission has examined the petition and staff's memorandum recommending approval and concludes that the filing meets requirements set out in Order No. 93-1133. The petition for waiver should be granted.

ORDER

IT IS ORDERED that the revised filing (Advice No. 1626) of February 8, 1996, to be effective February 21, 1996, and the revised Petition for Waiver of Transition Cost Factors and Adherence to Part 69 Access Elements are granted.

Made, entered, and effective______________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of this order. The request must comply with the requirements of OAR 860-14-095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-13-070(2)(a). A party may appeal this order to a court pursuant to ORS 756.580.