SENATE BILL REPORT

SB 5077

BYSenators Saling, Stratton and Benitz

Extending and modifying the prohibition on measured telecommunications service.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 17, 1987

Senate Staff:Deborah Senn (786-7450)

AS OF FEBRUARY 18, 1987

BACKGROUND:

There are two ways that a telephone company charges for local telephone services, flat rates and measured rates.  Under flat rates, there is a single monthly charge for local telephone service, regardless of the number of calls made or the length of these calls.  Under measured rates, the cost reflects the amount the telephone is used.  Rates are based upon elements such as:  1) time of day; 2) duration of call; 3) the distance a call travels; and 4) number of calls made.

In late 1983, Pacific Northwest Bell (PNB) filed a telephone rate restructuring proposal with the Washington Utilities and Transportation Commission (UTC) to impose a mandatory measured service rate on business customers.  This request was later withdrawn, and in the 1985 legislative session HB 1625 was passed which prohibits the UTC from allowing a telephone company to impose mandatory local measured service (LMS) on any customer prior to June 1, 1987.  The measure will expire June 1, 1987.

SUMMARY:

The ban on mandatory measured service continues permanently for residential service, and is extended until 1990 for business customers.  There is an exception for extended area service (EAS) and foreign exchange (FX) service.  The Commission may approve measured service for EAS or FX service if it is in the public interest.

Fiscal Note:      none requested