SENATE BILL REPORT

SB 5577

BYSenator Bluechel

Describing how area exchange boundaries may be determined by the commission.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 7, 1989

Senate Staff:Paul Ahern (786-7449)

AS OF FEBRUARY 13, 1989

BACKGROUND:

There is some concern that service in a local exchange area may be best provided by an alternative telecommunication company.  During last year's legislative session, a bill was proposed that provided for conditions under which a telecommunication company service territory could be changed or transferred.  That bill grew out of a situation at Ames Lake, a community in west central King County.  Residents of this area are served by Telephone Utilities and have complained of chronic quality and service problems.  During the last year, Telephone Utilities has installed new digital equipment in the area in an attempt to address these concerns.  Although the residents of Ames Lake have expressed a desire to be incorporated into the GTE service area, the Utilities and Transportation Commission lacks authority to transfer franchise territory.  This proposed legislation allows a transfer of service territory pursuant to the application of specific standards.

SUMMARY:

RCW 80.36.230 is amended to expand the powers of the Utilities and Transportation Commission in setting territorial boundaries for telecommunication companies.  The commission may initiate proceedings on its own motion or at the request of a majority of the affected exchange area subscribers.  The change does not exclude the services of the current provider, and the new supplier is required to specify in writing its ability and willingness to accept new customers.  Additionally, the exchange area must not have been altered for the last seven years and must not create a noncontiguous exchange area.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 6, 1989