ORDER NO. 98-235

ENTERED JUN 12 1998

Thisis an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

ARB 26

DISPOSITION: AMENDMENT APPROVED

On September 5, 1997, the Oregon Public Utility Commission (Commission) approved the Exchange Carrier Services Local Interconnection Agreement between GTE Northwest Incorporated (GTE) and U S WEST Communications, Inc. (USWC), in Order No. 97-343. On April 17, 1998, the parties filed an amendment to the agreement replacing Appendix B, identifying the A-Location and Z-Location for Extended Area Service Exchanges in Oregon, with the following tariffs: GTE Northwest Incorporated, Tariff P.U.C. OR. No. 11, Sheets 318 through 328 and U S WEST Price List, Oregon, Section 5.1.1 [Extended Area Service (EAS)] C2 (Local Exchange, EAS Rate Band Designation and Extended Area.).

Under the Act, the Commission must approve or reject an agreement reached through voluntary negotiation within 90 days of filing. The Commission may reject an agreement only if it finds that:

the agreement (or portion thereof) discriminates against a telecommunications carrier not a party to the agreement; or

the implementation of such agreement or portion thereof is not consistent with the public interest, convenience, and necessity.

On April 21, 1998, the Commission issued a Notice of Opportunity to Comment on the agreement to all interested persons. The only comments received were from Commission Staff.

Staff submitted its comments on May 21, 1998. Staff notes that the April 17, 1998 filing replaces Appendix B to the initial agreement in its entirety. The initial agreement set forth the terms, conditions, and prices under which USWC and GTE agree to provide interconnection and reciprocal compensation for the exchange of local traffic in local service areas. Appendix B to the initial agreement identified the local service areas covered by the agreement by listing pairs of GTE and USWC wire centers in the Portland metropolitan area and vicinity. The Commission approved the initial agreement in Order No. 97-343.

The replacement version of Appendix B eliminates the list of wire center pairs and substitutes a reference to sections in GTE’s and USWC’s Oregon intrastate tariffs. The referenced tariff sections list all exchanges that GTE and USWC serve as telecommunications utilities in Oregon. These tariff sections also list current EAS routes for each GTE and USWC exchange. The effect of the amendment is to extend the geographic scope of the reciprocal compensation agreement beyond the Portland metropolitan area to include all EAS arrangements between GTE and USWC.

After reviewing the amendment to the agreement according to the standards established by the Telecommunications Act of 1996, Staff recommended that the Commission approve the amendment. As amended, the agreement between USWC and GTE does not appear to discriminate against telecommunications carriers that are not parties to the agreement. Implementation of the agreement does not appear to be inconsistent with the public interest, convenience, and necessity.

Staff recommended approval of the amendment even though the agreement deviates from Commission policies regarding cost recovery for EAS. Commission policy favors bill and keep arrangements among utilities and cooperatives for EAS. See Order No. 89-815. The GTE/USWC agreement replaces bill and keep with mutual compensation between the parties. When the Commission approved the initial agreement in Order No. 97-2343, the Commission effectively granted GTE and USWC a waiver from its bill and keep policy for the EAS traffic the parties exchange in the Portland metropolitan area. Now, with their amendment to the initial agreement, the parties are proposing to extend the scope of the waiver to the remainder of the state. Extending the geographic scope of the waiver does not appear to be inconsistent with the public interest, convenience, and necessity. Staff recommends that the Commission extend the bill and keep waiver by approving the amendment to the agreement.

Commission Conclusion

We have reviewed the amendment and Staff’s comments. We conclude that there is no basis under the Telecommunications Act of 1996 to reject the amendment. There is no basis for finding that the amendment discriminates against any telecommunications carrier not a party to the agreement, and there is no basis for finding that implementation of the agreement is not consistent with the public interest, convenience, and necessity. We conclude that the amendment should be approved.

ORDER

IT IS ORDERED that the First Amendment to the Exchange Carrier Services Local Interconnection Agreement between U S WEST Communications, Inc., and GTE Northwest Incorporated 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 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(2). A party may appeal this order to a court pursuant to applicable law.