ORDER NO. 99-401

ENTERED JUN 28 1999

This is an electronic copy. Appendices and Footnotes may not appear.

OF OREGON

UM 928

DISPOSITION: PLANS ACKNOWLEDGED;

ADDITIONAL COMMITMENT REQUIRED

On March 2, 1999, the Public Utility Commission of Oregon issued Order No. 99-187 initiating an investigation under ORS 756.515(4) into the service quality provided by U S WEST Communications, Inc. (USWC) in Roseburg, Sutherlin, and Winston, Oregon. In addition, the Commission ordered USWC to submit a report concerning the future of the remaining analog 1AESS switches in Oregon. This order addresses the reports submitted by USWC and acknowledges USWC’s written commitment to upgrade its switches.

Pursuant to the Commission's order, USWC filed reports on March 24, April 1, and April 29, 1999, detailing its commitments regarding the 1AESS switches. In addition, USWC submitted a letter to the Commission on June 18, 1999, indicating its intention to replace the switches serving its exchanges in Roseburg, Grants Pass, and Albany by the end of 2000. USWC stated that it "has plans to replace the switches, has committed the funds for the switch replacements, has contracted to replace the switches, and fully intends to replace the switches by the end of next year." The only caveat is that USWC "will undertake a commitment to promptly inform its customers and the Commission of any unforeseeable or uncontrollable events that occur, if any, which would threaten the timing of the switch replacements."

USWC's letter further reiterates its representation in its third report that it plans "to place a digital presence in all Oregon wire centers by 2002, with the majority planned to be completed by the end of 2001." Although USWC's construction budgets for 2001 and 2002 have not been approved, the company notes that it has contracted with a vendor, which will enable it to place a digital presence in all Oregon exchanges by the end of 2002. USWC committed to keeping its customers and the Commission informed of its plans as soon as they develop.

We acknowledge USWC's commitment to replace the 1AESS switches in Oregon with digital switches. USWC's plans appear to be reasonable. We are particularly encouraged that USWC has made these representations for the Roseburg, Grants Pass, and Albany replacements without the caveat that postponements are possible due to "exigencies of higher priorities" that appeared in the second and third reports. USWC should provide a similar commitment for the remaining 1AESS switches in Oregon.

We are aware that there are elements of USWC's switch replacement plans that may be beyond the company’s control. USWC noted in its second report that difficulties due to availability of technicians and vendor delivery of equipment are potential problems. However, we do not believe that a caveat regarding reordered priorities is appropriate for the remaining switch replacements. If any unforeseeable or uncontrollable events occur that might delay installation of the new equipment, USWC's commitment to keep its customers and us informed will allow us to consider future uncertainties.

ORDER

IT IS ORDERED that:

USWC’s commitment to replace 1AESS analog switches in Oregon, as follows, is acknowledged:

Springfield by year end 1999;

Roseburg, Grants Pass, and Albany by year end 2000; and

Corvallis, Klamath Falls, Medford, Oregon City, Portland-Butler, Portland-Cherry, Portland-Prospect by year end 2002, with the majority to be completed by year end 2001.

USWC shall provide milestone dates by August 1, 1999, followed by firm installation dates as soon as the information is available;

By August 1, 1999, USWC shall provide a commitment to replace the switches identified in ordering paragraph 1. c) on the same terms as it has committed to replace the switches listed in paragraphs 1. a) and b), that is, without caveats regarding delays due to a reordering of priorities;

USWC shall inform its customers and the Commission if unforeseeable or uncontrollable events occur that might delay installation of the new equipment.

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.