OR99-239

ORDER NO. 99-239

ENTERED MAR 31 1999

This is an electronic copy.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 930

In the Matter of the Investigation into U S WEST COMMUNICATIONS, INC.'s Construction Budgets.

)
)
)

ORDER

DISPOSITION: INVESTIGATION OPENED

At its March 16, 1999, public meeting, the Commission opened an investigation on its own motion into U S WEST Communications, Inc.’s (USWC) construction budgets. ORS 756.515. These budgets are filed annually with the Commission to specify the amount of money that USWC will require in the following year for purchases of equipment. ORS 759.100(1)(e) and (2). Our rules further require USWC to file, annually, information on new construction, extensions, and additions to its property. OAR 860-027-0015.

At the public meeting, the Commission Staff reported that several Oregon communities were experiencing service quality problems because USWC had not followed through on planned construction projects that were included in the 1998 construction budget. Staff noted that at least $4 million worth of projects had been left undone. Had the projects been completed, Staff believes that the service problems reported by customers along the route between Pendleton and Baker City and in Oakridge would not have occurred.

The Commission is opening this investigation to determine:

What construction projects did USWC plan for 1998? What construction projects are planned for 1999?
Which projects listed in the 1998 budget were completed?
Which projects listed in the 1998 budget were not completed?
Which projects in the 1998 budget were not completed and were deleted from the 1999 budget?
Which projects in the 1998 budget were completed but not listed in the budget submitted to the Commission on February 15, 1998?
What is the impact of the uncompleted projects on USWC's ability to provide reliable and adequate service?
What criteria did USWC use to develop the 1998 and the 1999 construction budgets?
Why did USWC depart from the 1998 construction budget when it made its actual construction decisions?
What criteria will USWC be using to develop its 2000 construction budget?
What other considerations or data should the Commission take into account when reviewing USWC's construction budgets?

At the public meeting, USWC indicated that the construction budget information is confidential. We will allow USWC ten days from the date of this order to move for a protective order.

IT IS SO ORDERED.

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 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.