FINAL BILL REPORT

SHB 458

                                  C 333 L 87

BYHouse Committee on Energy & Utilities (originally sponsored by Representatives Todd, Barnes, Nelson, Schmidt and Jacobsen)

Extending the moratorium on mandatory local measured telecommunications service.

House Committe on Energy & Utilities

Senate Committee on Energy & Utilities

SYNOPSIS AS ENACTED

BACKGROUND:

The two ways that a telephone company can charge for local telephone services are flat rates and measured rates.  A flat rate is a single monthly charge for local telephone service, regardless of the number of calls made or the length of the calls.  Measured rates reflect the amount the telephone is used.  Measured rates are based upon elements such as the time of day of a call, the duration of a call, the distance a call travels, and the number of calls made.

In late 1983, Pacific Northwest Bell filed a telephone rate restructuring proposal with the Washington Utilities and Transportation Commission to impose a mandatory measured service rate on business customers.  This request was later withdrawn, and in 1985 the legislature enacted a prohibition against mandatory local measured service prior to June 1, 1987.

SUMMARY:

Until June 1, 1990, the Washington Utilities and Transportation Commission (UTC) may not accept for filing nor approve a tariff filed by a telecommunications company which imposes mandatory local measured service on any customers or class of customers.  An exception is made in that the UTC may accept for filing and approve a tariff that imposes mandatory measured service for a telecommunications company's extended area service or foreign exchange service.

VOTES ON FINAL PASSAGE:

      House 93   1

      Senate    44     5

EFFECTIVE:June 1, 1987