ORDER NO. 97-446

ENTERED NOV 19 1997

This is an electronic copy. Appendicies may not be included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 539/UA 47

DISPOSITION: CERTIFICATE OF AUTHORITY GRANTED;

TARIFF APPROVED.

BACKGROUND AND PROCEDURAL HISTORY

In 1983, Nevada Bell Telephone Company (Nevada Bell) began serving a few customers in southern Malheur County, Oregon, from its central office in the McDermitt exchange in Nevada. Nevada Bell charged its Oregon customers standard Nevada Bell rates, but did not file tariffs with the Oregon Public Utility Commission. The area in Oregon served under that arrangement, informally known as Quinn, was not allocated and no exchange map had been filed with the Oregon Commission.

Oregon-Idaho Utilities, Inc., (OIU) is a telecommunications utility that serves about 610 customers in eastern Oregon and 70 customers in southwestern Idaho. On December 4, 1992, Nevada Bell and OIU, d.b.a. Humboldt Telephone Company (HTC), filed with the Public Service Commission of Nevada (Nevada Commission) a joint application to transfer six exchanges in northern Nevada from Nevada Bell to HTC. McDermitt was one of the six exchanges.

On February 2, 1993, Nevada Bell and OIU filed a joint petition with the Federal Communications Commission (FCC) seeking waiver of certain FCC rules. FCC approval of the waiver would have the practical effect of approving the proposed transfer of telephone exchanges and making the transfer a viable business transaction.

On December 31, 1992, HTC filed an application with the Oregon Commission seeking:

Issuance of a Certificate of Authority to provide local exchange telephone service in the Quinn area;

Entry of an order under ORS 759.535 allocating service area; and

Entry of an order exempting HTC from participation in Oregon Exchange Carrier Association proceedings.

On March 24, 1993, this Commission issued Order No. 93-384, which provisionally granted HTC’s application with conditions. The conditions stated that the applicant, HTC, must file satisfactory proof that the FCC and the Nevada Commission had approved the acquisition of service territory by HTC. We further stated that when such proof was filed, then we would issue an order granting HTC’s application. See Order No. 93-384 at pages 3-4.

On September 5, 1997, HTC filed with the Oregon Commission the following items:

An order from the Nevada Commission, Docket No. 92-12008, dated May 19, 1993, granting the joint application to transfer six exchanges from Nevada Bell to HTC.

An order from the FCC, Order DA 94-996, Docket AAD 93-20, released September 14, 1994, approving the joint petition of Nevada Bell and HTC to waive certain FCC’s rules.

A Bill of Sale, dated May 31, 1995, by which Nevada Bell sold buildings, plant and equipment to HTC.

A proposed tariff for HTC service to customers in Oregon.

At the request of the Commission staff, HTC filed a revised tariff for service to customers in Oregon on October 3, 1997. The revised tariff replaced, in its entirety, the proposed tariff filed on September 5, 1997. The revised tariff included a map of the proposed Quinn exchange, which would be HTC’s local exchange service territory in Oregon. In the revised filing, HTC also specifically withdrew its request for exclusive territory allocation.

Based on the record in this matter, we enter the following:

FINDINGS OF FACT

HTC serves six exchanges in northern Nevada, including the McDermitt exchange. HTC serves approximately 563 customers in Nevada and 15 customers in Oregon. Oregon customers are served from the central office switch in McDermitt, Nevada, which is immediately south of the Oregon-Nevada state line.

Thirteen of HTC’s Oregon customers are located in the proposed Quinn exchange. The proposed exchange consists of Sections 18 and 19, T41S, R43E, of the Willamette Meridian, in Malheur County. The state line between Oregon and Nevada truncates township 41 South (T41S). HTC will provide local exchange service to the thirteen customers in the Quinn exchange over company owned facilities.

Two of HTC’s Oregon customers are located outside Sections 18 and 19, but are located within the twelve townships that constituted the informal Quinn area once served by Nevada Bell. HTC will continue to serve those customers by Farmer Line service, whereby the customer provides his/her own line or loop facilities from the exchange to the customer’s premises.

The proposed Quinn exhange, as well as HTC’s service area in Nevada, is in the Nevada LATA. However, OIU’s service area in Oregon and Idaho is in the Boise LATA.

HTC’s revised tariff is attached to this order as Appendix A. The tariff essentially adopts the terms and conditions of service as described in the Oregon tariff of OIU. HTC, however, does not adopt OIU’s Oregon tariffed rates for the services shown below. Instead, OIU proposes to use rates currently charged to its Nevada customers.

CONCLUSIONS

Oregon-Idaho Utilities, Inc., and its operating division Humboldt Telephone Company are telecommunications utilities as defined in ORS 759.005(1).

"Local Exchange Telecommunications Service" is defined as "service provided within the boundaries of exchange maps filed with and approved by the commission." ORS 759.050(2)(c). No person or corporation "shall provide intrastate telecommunications service on a for-hire basis without a certificate of authority issued by the commission under this section." ORS 759.020(1).

HTC has filed satisfactory proof that its acquisition of service territory from Nevada Bell has been approved the Nevada Commission and by the FCC.

As stated in Order No. 93-384, this Commission retains jurisdiction over rates and conditions of service in the affected territory, that is the Quinn exchange now served by HTC. HTC’s tariff filed on October 3, 1997, for service in Oregon is reasonable. The exchange map shown on Sheet 102 of the filed tariff clearly depicts the Quinn exchange.

Since HTC and OIU together serve fewer than 15,000 lines in Oregon, ORS 759.040 applies to HTC.

Conditions of the Certificate of Authority

1. HTC shall comply with all applicable laws, Commission rules, and Commission orders related to provision of telecommunications service in Oregon.

2. HTC shall not take any action that impairs the ability of other certified telecommunications service providers to meet service standards specified by the Commission.

Designation as a Telecommunications Utility

HTC shall be designated as a telecommunications utility as defined in ORS 759.005(1).

ORDER

IT IS ORDERED that:

1. Oregon-Idaho Utilities, Inc., d.b.a. Humboldt Telephone Company (HTC), is granted a Certificate of Authority under ORS 759.020 authorizing service as a telecommunications utility within the territory known as the Quinn exchange, which is identified and described in Appendix A to this order at page 3.

2. Allocation of territory under ORS 759.500 to 759.570 is not granted.

3. HTC is exempted from participation in Oregon Exchange Carrier Association proceedings.

4. The tariff filed by HTC on October 3, 1997, for service in Oregon, including the map of the Quinn exchange, is approved.

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 service of this order. The request must comply with the requirements in OAR 860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070(2). A party may appeal this order pursuant to a court pursuant to ORS 756.580.