ORDER NO. 97-481

ENTERED DEC 16 1997

This is an electronic copy. Some appendices may not be included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 873

DISPOSITION: ELIGIBLE TELECOMMUNICATIONS CARRIERS DESIGNATED.

The federal Communications Act of 1934, as amended by the Telecommunications Act of 1996 (the Act), requires state commissions to designate a common carrier that meets certain requirements as an eligible telecommunications carrier for a service area. The requirements include offering services supported by the federal universal service support mechanisms, and advertising the availability of those services in media of general distribution.

Federal rules define supported universal services. Those services include, among others, single-party access to the public switched network and toll limitation for qualifying low-income consumers. Toll limitation consists of both toll control and toll blocking. Toll blocking prevents toll calls from being made from a telephone line. Toll control allows consumers to specify a certain amount of toll usage that may be incurred on their telecommunications channels per billing cycle. The federal rules allow state commissions to grant waivers from certain requirements, including toll limitation and single-party service.

Between October 28, 1997, and November 25, 1997, incumbent local exchange carriers providing service in Oregon filed applications (and amendments) with the Commission requesting designation as eligible telecommunications carriers. All applicants request a temporary waiver of the requirement to provide toll control service. U S WEST Communications, Inc. (USWC), GTE Northwest Incorporated (GTE), and Telephone Utilities of Eastern Oregon (TU) request relief from the requirement to provide single-party service.

The Commission’s Staff analyzed the petitions and prepared a Staff Report for the Commission. The Commission considered the petitions and the Staff Report at its Public Meeting on December 2, 1997. The Commission adopted the Staff Report, attached as Appendix A to this order, at that public meeting.

We have decided to grant the requests for temporary waivers of the requirements to provide single-party service and toll control service. Currently, the petitioners do not have the technical capability to provide toll control service. As to single-party service, USWC, GTE, and TU currently are unable to provide that service to all of their customers. USWC, unable to provide single-party service to fewer than 20 customers, requests a declaration that it has substantially complied with the requirement. In the alternative, USWC requests a temporary waiver to make network upgrades. We find its inability to provide single-party service to fewer than 20 lines to be de minimis; USWC is in substantial compliance with the requirement. GTE and TU should be given until the end of 1998 to upgrade their networks to provide single-party service.

CONCLUSIONS

Applicants are qualified for designation as telecommunications carriers eligible to receive federal universal service support. Temporary waivers for toll control capability and single-party service should be granted as outlined above.

ORDER

IT IS ORDERED that:

Applicants listed on Exhibit A to Appendix A to this order are designated as telecommunications carriers eligible to receive federal universal service support;

The designated service areas for USWC are the exchanges listed on Exhibit B to Appendix A to this order;

The designated service areas for GTE are the exchanges listed on Exhibit C to Appendix A to this order;

The designated service areas for the carriers listed on Exhibit A to Appendix A of this order, except USWC and GTE, are the study areas applicable to each carrier;

GTE and TU are granted waivers until December 31, 1998, from the requirement to provide single-party service to all their customers;

All applicants in this docket are granted temporary waivers from the requirement to provide toll control service;

The eligible carrier designations listed above shall become effective on January 1, 1998.

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