DE 98-172

                          PAETEC COMMUNICATIONS INC  

                      Petition for Authority to Provide
                      Local Telecommunications Services
                      Order Nisi Granting Authorization

                         O R D E R  N O.  23,050      

                               October 28, 1998     

    On October 1, 1998, PaeTec Communications Inc.(PCI)
filed with the New Hampshire Public Utilities Commission
(Commission) a petition for authority to provide switched and
non-switched local exchange telecommunications services, pursuant
to the policy goals set by the New Hampshire Legislature in RSA
374:22-g, effective July 23, 1995.
  The Legislature directed the Commission to adopt rules
on or before December 31, 1996, to enforce the provisions of RSA
374:22-g.  Effective December 4, 1996, the Commission adopted
N.H. Admin. Rules, Puc Chapter 1300 which governs the petition of
applicants to become competitive local exchange carriers (CLECs).
  Pursuant to Puc Chapter 1300, an applicant's petition
for certification shall be granted when the Commission finds that
(1) all information listed in Puc 1304.02 has been provided to
the Commission; (2) the applicant meets standards for financial
resources, managerial qualifications, and technical competence; 

and, (3) certification for the particular geographic area
requested is in the public good.
  The Commission Staff (Staff) has reviewed PCI's
petition for compliance with these standards.  Staff reports that 
the company has provided all the information required by Puc
1304.02.  The information provided supports PCI's assertion of
financial resources, managerial qualifications, and technical
competence sufficient to meet the standards set out in Puc
1304.01(b), (e), (f), and (g).  Staff, therefore, recommends
approval of PCI as a New Hampshire CLEC.
  PCI has provided a sworn statement and request for
waiver of the surety bond requirement in Puc 1304.02(b) stating
that they do not require advance payments or deposits of their
customers.  Staff recommends granting the waiver.  
  We find that PCI has satisfied the requirements of Puc
1304.01(a)(1) and (2).  In addition, we find that certification
of PCI in its intended service area, Bell Atlantic's current
service area, is in the public good, thus meeting the requirement
of Puc 1304.01(a)(3).  In making this finding, as directed by RSA
374:22-g, we have considered the interests of competition,
fairness, economic efficiency, universal service, carrier of last
resort, the incumbent's opportunity to realize a reasonable 
return on its investment, and recovery by the incumbent of
expenses incurred.  This finding is further supported by the
Telecommunications Act of 1996 (TAct).  Because PCI has satisfied
the requirements of Puc 1304.01(a), we will grant certification.
  As part of its application, PCI agreed to abide by Bell
Atlantic's present and future rates for intraLATA switched access
or to charge a lower rate.  If, at any point, PCI seeks to exceed
Bell Atlantic's access rates it shall first contact the Staff to
review the proposal.  The Commission will monitor access rates as
the intraLATA toll and local exchange markets develop.  CLECs
charging higher access rates than they, in turn, pay Bell
Atlantic could inhibit intraLATA toll competition which would
call into question Section 253 of the TAct.
  Based upon the foregoing, it is hereby
  ORDERED NISI, that PCI's petition for authority to
provide switched and non-switched intrastate local exchange
telecommunications services in the service territory of Bell
Atlantic, is GRANTED, subject, inter alia to the requirements of
Puc 1304.03; and it is
       FURTHER ORDERED, that request for waiver of the surety
bond requirement per Puc 1304.02(b) is granted; and it is
  FURTHER ORDERED, that the Petitioner shall cause a copy
of this Order Nisi to be published once in a statewide newspaper
of general circulation, such publication to be no later than
November 4, 1998 and to be documented by affidavit filed with
this office on or before November 11, 1998; and it is
  FURTHER ORDERED, that all persons interested in
responding to this Order Nisi shall submit their comments or file
a written request for a hearing on this matter before the
Commission no later than November 18, 1998; and it is
  FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so 
no later than November 25, 1998; and it is
  FURTHER ORDERED, that this Order Nisi shall be
effective November 27, 1998, unless the Commission provides
otherwise in a supplemental order issued prior to the effective
date; and it is 
  FURTHER ORDERED, that the Petitioner shall file, ten
days prior to commencing service, a rate schedule including the
name, description and price of each service, with the Commission
in accordance with N.H. Admin. Rules, Puc 1304.03(b).

  By order of the Public Utilities Commission of New
Hampshire this twenty-eighth day of October, 1998.

  Douglas L. Patch        Susan S. Geiger       Nancy Brockway
      Chairman             Commissioner          Commissioner

Attested by:

Thomas B. Getz
Executive Director & Secretary