ORDER NO. 97-153

ENTERED APR 24 1997

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UT 138

DISPOSITION: ADVICE NO. 1661 AUTHORIZED TO TAKE EFFECT

SUBJECT TO REFUND; DOCKET UT 138 OPENED

On November 1, 1996, the Oregon Public Utility Commission (Commission) issued Order No. 96-283 in docket UM 351. In that order, the Commission required U S WEST Communications, Inc., (USWC) to file tariffs for unbundled building blocks at the rates specified in Revised Appendix C. On December 16, 1996, USWC filed Advice No. 1661 in response to Order No. 96-283.

At its January 21, 1997, public meeting, the Commission granted USWC additional time to engage in discussions with the Commission Staff (Staff) and tele-communications carriers likely to purchase building blocks from USWC’s tariff, and to make revisions to its filing. The Commission ordered USWC to refile its compliance tariffs on March 14, 1997, with an effective date of April 2, 1997. On March 14, 1997, USWC filed a supplement to Advice No.1661 which completely replaced the earlier version.

At its April 1, 1997, public meeting, the Commission considered recommendations from Staff, USWC, and other interested persons regarding Advice No. 1661. Staff proposed that Advice No. 1661 be suspended for investigation. Other parties suggested that the tariffs be placed into effect subject to refund. The Commission decided to postpone decision on the matter until the April 15, 1997, public meeting, pending further review.

At its April 15, 1997, public meeting, the Commission approved a Staff recommendation to allow the tariffs in Advice No. 1661 to go into effect subject to refund pursuant to ORS 759.185. The Commission also initiated this proceeding, designated as docket UT 138, to investigate the reasonableness of the tariff provisions in Advice No. 1661.

The investigation in this docket shall be limited to consideration of nonrecurring charges, special construction charges, tariff terms and conditions proposed by USWC in Advice No. 1661, and other matters necessary to ensure compliance with Order Nos. 96-188 and 96-283 in docket UM 351. Building block prices shall not be considered in this docket. Any refunds authorized by the Commission at the conclusion of this investigation shall include interest accrued at USWC’s authorized rate of return.

USWC shall keep records of demand for each building block by customer until the Commission has concluded its investigation and refunds are calculated.

The decision to allow Advice No. 1661 to go into effect subject to refund is not an acknowledgment that USWC has met the interconnection and access requirements of Section 271 of the Telecommunications Act of 1996.

Made, entered, and effective ________________________.