ORDER NO. 97-493

ENTERED DEC 19 1997

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

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UX 19

DISPOSITION: FILING SUSPENDED

Background: On October 22, 1997, GTE Northwest Incorporated (GTE) filed a petition to exempt Automated Information Service (AIS) from regulation. Cost support was provided on November 13, 1997. Under ORS 759.030(7), the Commission has 60 days from the filing date to determine the appropriateness of the filing or determine that further investigation is necessary. If the Commission determines that further investigation is necessary, the Commission may suspend operation of the filing for a period not longer than five months from the end of the initial 60-day period. For this petition, the 60-day period expires on December 21, 1997.

AIS is a service that offers the following subservices: Information Bulletin Board, Overflow Attendant, and Automated Attendant. Information Bulletin Board delivers a prerecorded audio message to a caller dialing the customer’s phone number. This service provides routine, repetitive information to callers when human intervention is not required. Overflow Attendant and Automated Attendant answer incoming calls with a prerecorded menu and direct each call to a predesignated number, information box, or voice mailbox. These features provide: 1) a menu to direct callers; 2) an announcement mailbox to provide callers with information; and 3) call routing to allow a caller to be directed to another number.

Applicable Law: ORS 759.030 allows the Commission to exempt a telecommunications service from regulation if price and service competition exist. Prior to making these findings, the Commission shall consider:

The extent to which services are available from alternative providers in the relevant market;

The extent to which the services of alternative providers are functionally equivalent or substitutable at comparable rates, terms, and conditions;

Existing economic or regulatory barriers to entry;

Any other factors deemed relevant by the Commission.

OAR 860-032-0025 provides, in relevant part:

Upon petition by a public utility and, except as provided in section (7) of this rule, upon notice and hearing, the Commission shall exempt in whole or in part from regulation a service, if the Commission finds the rate the public utility proposes for the service covers its full long range incremental cost:

Price and service competition exists; or

The service is subject to competition.

[Not relevant in this case]

Prior to making a finding under sections (1) or (2) of this rule, the Commission shall consider:

The extent to which services are available from alternative providers in the relevant market;

The extent to which the services of alternative providers are functionally equivalent or substitutable at comparable rates, terms, and conditions;

Existing economic or regulatory barriers to entry;

Any other factors deemed relevant by the Commission.

Petitions filed under sections (1) and (2) of this rule shall contain:

The name and address of the petitioner;

A copy of the petitioner’s certificate of authority, if any;

The service or portion of a service proposed to be exempted from regulation;

Documentation which demonstrates that the petition meets the requirements set forth in sections (1), (2), and (3) of this rule;

The public utility’s revenues from and costs of providing the service, the long-range incremental cost of the service, the cost allocation to regulated and unregulated activities for future ratemaking treatment, and supporting documentation. The information submitted under this paragraph may be submitted in confidence;

(A) A statement from each joint provider of the service that it agrees to the exemption; or

A statement from the petitioner indicating how the exemption will affect the rates and services of all affected joint providers of the service.

OAR 860-027-0052 provides requirements for the allocation of costs between regulated and nonregulated utility operations. The company must be convincing with respect to the propriety of its proposed treatment of interoperation transactions.

Staff Recommendations: Staff recommends suspending the filing for five months, until May 21, 1998. During that time, Staff will conduct a comprehensive investigation. Since there has been no previous investigation on deregulating this service, Staff believes is not only necessary but presupposed by the statutes governing deregulation.

Commission Disposition: At its December 16, 1997, public meeting, the Commission voted to adopt Staff’s recommendation and suspend the filing. Staff will expedite the docket.

ORDER

IT IS ORDERED that:

GTE’s filing to exempt AIS from regulation is suspended for a period not to exceed five months from December 21, 1997.

GTE shall serve notice of its filing on the telecommunications service list and the service list from GTE’s most recent rate case.

Notice should give members of the public 20 days to notify the Commission of any objections they might have to GTE’s filing.

GTE shall supply a copy of its petition to any person requesting it.

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 to a court pursuant to applicable law.