ORDER NO. 98-390

ENTERED SEP 28 1998

This is an electronic copy. Appendices and footnotes may not be available.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 859 

In the Matter of the Petition for Extended Area Service by the MADRAS TELEPHONE EXCHANGE. ) ORDER

) AND

) NOTICE OF HEARING

 DISPOSITION: ORDER NO. 97-440 RESCINDED;

DEMOGRAPHIC HEARING SCHEDULED.

Background

On June 26, 1997, the customers of the Madras telephone exchange (petitioners) filed a petition with the Commission seeking extended area service (EAS) to the Prineville, Redmond, and Bend telephone exchanges. In an EAS investigation, the Commission first determines whether a community of interest exists between the telephone exchanges to warrant the elimination of toll calling. The Commission first attempts to make this determination by an analysis of geographic information and calling pattern data. If a petition fails to meet these criteria, petitioners are then given the opportunity to request a hearing to present other evidence of a community of interest.

A review of geographic and telephone usage information revealed that none of the requested interexchange routes satisfied the Commission’s objective criteria. Accordingly, Staff filed testimony and recommended that the Madras EAS petition be dismissed.

On October 1, 1997, an Administrative Law Judge (ALJ) issued a proposed order adopting Staff’s testimony. Based on that testimony, the ALJ recommended that the petition be dismissed, unless the petitioners requested an opportunity to establish, through demographic, economic, financial, and other evidence, that a community of interest exists. The proposed order advised the petitioners that such a request had to be filed within 15 days from the date of service.

Petitioners did not request a demographic hearing within that time period. Accordingly, the Commission entered Order No. 97-440, adopting the proposed order and denying the Madras EAS petition.

Petitioners’ Request

On September 8, 1998, petitioners filed a letter with the Commission requesting reconsideration of Order No. 97-440. Petitioners state that notice of the ALJ’s proposed order was sent locally to only two members of the Madras/Jefferson County Chamber of Commerce (Chamber). The Chamber initiated the EAS petition and served as lead petitioners throughout the process. Unfortunately, right at the time of the ruling and appeal period, both Chamber members were either leaving office or had already gone. Thus, petitioners explain, there was no one employed by the Chamber who would have been able to respond to any Commission action.

Given the circumstances surrounding Commission action on this case, petitioners ask that the decision to deny the petition be reviewed, with consideration given to either allowing the existing petition to be re-filed, or to proceed to hearing.

Discussion

Pursuant to ORS 756.561, a party must request reconsideration or rehearing of a Commission decision within 60 days from the date of service of the order. The time for such a request has passed. Nonetheless, under ORS 756.568, the Commission may rescind, suspend, or amend any order at any time. The Commission finds good cause to rescind Order No. 97-440 and allow the petitioners an opportunity to establish, through demographic, economic, financial and other evidence, that a community of interest exists between the Madras exchange and the Prineville, Redmond, and Bend telephone exchanges.

Accordingly, notice is hereby given that a hearing shall be held as follows:

DATE: October 27, 1998

TIME: 7:00 p.m.

PLACE: Jefferson County Fair Complex

Maccie-Conroy Building

430 SW Fairgrounds Road

Madras, Oregon

ADMINISTRATIVE

LAW JUDGE: Michael Grant

At the hearing, petitioners need to present demographic evidence intended to establish that a community of interest exists between the Madras exchange and the Prineville, Redmond, and Bend telephone exchanges. The Commission has adopted the following test for community of interest in cases where petitioners rely on demographic evidence:

A community of interest exists where there is social, economic, or political dependence or interdependence between the petitioning and requested exchange(s) sufficient to justify conversion to EAS. In making this determination, the Commission will review the following factors: (1) geographic and demographic information; (2) location of schools; (3) governmental and jurisdictional issues; (4) emergency services; (5) social services; (6) medical and dental providers; (7) employment and commuting patterns; (8) business and commercial dependence or interdependence; (9) transportation patterns; (10) the results of the objective criteria test; and (11) other factors deemed relevant by the Commission. The record need not contain evidence on each factor so long as the Commission can conclude that the record as a whole establishes sufficient interdependence or dependence between the exchanges.

Petitioners may submit written and oral comments on these factors as they relate to the Madras and Prineville, Redmond, and Bend telephone exchanges.

ORDER

IT IS ORDERED that Order No. 97-440 is rescinded. A hearing shall be held to allow petitioners an opportunity to establish through demographic, economic, financial, or other evidence that a community of interest exists between the Madras and the Prineville, Redmond, and Bend telephone exchanges.

Made, entered, and effective ________________________.

______________________________

Ron Eachus

Chairman

____________________________

Roger Hamilton

Commissioner

____________________________

Joan H. Smith

Commissioner

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.