ORDER NO. 97-461

ISSUED: DEC 02 1997

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

CP 277

DISPOSITION: APPLICATION FOR REHEARING GRANTED;

CONFERENCE TO BE HELD

On October 2, 1997, the Beaver Creek Cooperative Telephone Company (Beaver Creek) filed an application for reconsideration or rehearing of Commission Order No. 97-298. Beaver Creek challenges the Commission’s determination in that order requiring it to file tariffs for interexchange toll services offered to its local exchange customers.

Based on a review of Beaver Creek’s application, the Commission believes that good cause exists for further examination of matters essential to our prior decision. In its request, Beaver Creek has provided additional information regarding its proposed service. Although Beaver Creek has not explained why such evidence was not submitted prior to the issuance of the prior order, the Commission is interested in reexamining our decision in light of this new information.

Furthermore, the Commission takes official notice of two recent decisions by the Federal Communications Commission (FCC) in CC Dockets 96-149 and 96-61. In those decisions, the FCC established regulations requiring an independent local exchange company to provide interstate toll services to local exchange customers through a separate affiliate. Although the application in this proceeding involves only intrastate toll services, the FCC reasoning for requiring the separate subsidiary is identical to that used by this Commission in requiring the filing of tariffs. Furthermore, Beaver Creek’s compliance with the FCC rules with regard to its interstate toll services is a relevant consideration in determining whether granting the application is in the public interest.

Accordingly, Beaver Creek’s application for rehearing is granted. A prehearing conference is scheduled for this matter as follows:

DATE: December 17, 1997

TIME: 9:30 a.m.

PLACE: Small Hearings Room (2^nd Floor)

Public Utility Commission

550 Capitol Street NE

Salem, Oregon

ALJ: Michael Grant

The purpose of the prehearing conference will be to adopt a procedural schedule, identify issues, and to discuss matters identified in this order. The conference will be delayed only if good cause is shown.

ORDER

IT IS ORDERED that the application for rehearing, filed by Beaver Creek Cooperative Telephone Company, is approved. A prehearing conference shall be held as noticed above.

Made, entered, and effective ________________________.

A party may appeal this order to a court pursuant to ORS 756.580.