SENATE BILL REPORT

SHB 1756

BYHouse Committee on Energy & Utilities (originally sponsored by Representatives Sprenkle, S. Wilson, Rector, Fuhrman, Hargrove, K. Wilson, Haugen, Jacobsen and Scott)

Providing for extended area service by telecommunications companies.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

Senate Hearing Date(s):March 21, 1989; March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Benitz, Chairman; Bluechel, Vice Chairman; Metcalf, Owen, Stratton, Sutherland, Williams.

Senate Staff:Paul Ahern (786-7449)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON ENERGY & UTILITIES, MARCH 31, 1989

BACKGROUND:

Extended area service (EAS) is the extension of toll-free service to nearby exchange areas.  Urban areas tend to have a wide geographic base for EAS.  For example, calling from Seattle to Bellevue incurs no additional toll charge.  The base for rural communities is smaller.  Monroe in southern Snohomish County must pay a toll to call the neighboring towns of Snohomish and Everett.  EAS has not always been consistent with growth patterns experienced by a community and as a result some communities are quite displeased with their service.  A pilot program is proposed under this bill that may more closely align toll charges with calling patterns.

SUMMARY:

Any telephone customer, within the boundaries of a single telephone company, may petition to have EAS to a certain community.  First, the petitioner must collect signatures of 15 percent of the affected customers.  Once the signatures are collected, the Utilities and Transportation Commission (UTC) authorizes a study to determine if there is a "community of interest."  A "community of interest" is established if the average number of calls from the petitioning community to the location to which EAS is desired is five.

The commission shall then calculate any increase rate that would be applied to the area which would have EAS service granted to it.  The telecommunications company affected may propose an alternative plan.  The UTC then notifies the subscribers of the increased increment and the alternative plan and they are polled.  If a majority votes in favor, the commission shall order the EAS.  If no community of interest is found, the UTC shall order the telecommunications company to offer an optional plan.  Finally, if the community of interest requirement cannot be met and government offices in the community provide essential services, the petitioners may apply for, and the UTC may grant a waiver for EAS to those offices.  The residents, businesses, or community that are eligible for the program are ones that have petitions on file with the UTC as of January 1, 1989.  Petitions subsequent to January 1, 1989 are subject to terms and conditions of the UTC.  The program expires on December 1, 1990.  However, EAS granted under this legislation will remain in place.  The UTC is to report to the Legislature about EAS by December 1, 1990.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The section requiring the UTC to order an exchange company to offer an optional alternative plan is stricken.

The section requiring an extended area service to essential services is stricken.

Language clarifying that this is an experimental pilot program is added.

Language clarifying that costs of this program cannot be passed on to intralata and interlata interexchange carriers is added.

Senate Committee - Testified: Thomas MacIntyre, Catholic Community Services of Snohomish County (pro); Gordon Tserne, Mayor, City of Monroe (pro); Joe O'Sullivan, Sultan Senior Center, Monroe (pro); John Walker, Mayor, Town of Sultan (pro); Jack Doyle, Washington Independent Telephone Association (con); Don Britton, Snohomish County Council (pro); John Blake, United Telephone (con); Ken Brown, CONTEL (con); Steve McLellan, UTC; Mike Woodin, AT&T; Bob Bratton, GTE; Tom Gorman, Yelm Telephone Company