DT 99-037
Bell Atlantic
Special Contract with Easter Seal Society
Order Denying the Special Contract without Prejudice
O R D E R N O. 23,174
March 25, 1999
On December 22, 1998, Bell Atlantic - New Hampshire
(BA-NH) filed with the New Hampshire Public Utilities Commission
(Commission) pursuant to RSA 378:18, a petition seeking approval
for a Centrex Special Contract with the Easter Seal Society .
See Docket No. DR 98-222. The proposed Special Contract would
provide Centrex line systems comprised of Analog and Integrated
Services Digital Network (ISDN) lines. Along with the Special
Contract, BA-NH filed contract overviews and cost study details
in support of the filing. BA-NH's cost study avers that the
Special Contracts' proposed rates exceed the incremental costs of
the services being provided, pursuant to the requirements of RSA
378:18-b.
On January 21, 1999, the Commission issued Order No.
23,109 denying without prejudice the request for approval. On
February 26, 1999, Bell Atlantic filed a letter requesting that
the Commission reconsider its treatment of the Easter Seal
Society contract and a limited number of additional contracts.
Along with the letter, Bell Atlantic refiled the cost study
details that were filed with the original December 22, 1998
petition.
Staff's review of the proposed Special Contract raised
questions as to whether the proposed rates meet the requirement
of RSA 378:18-b. The questions arise in the context of the
current evolution of the telecommunications industry to a
competitive industry after passage of the Telecommunications Act
of 1996 (TAct). BA-NH's filing follows the incremental cost
calculation methodology which was heretofore accepted as
adequate. However, as required by the Federal Communications
Commission (FCC) in implementing the TAct, the Commission must
employ a Total Element Long Run Incremental Cost (TELRIC)
methodology for calculating the costs of unbundled network
elements (UNEs) that BA-NH offers for sale to Competitive Local
Exchange Carriers (CLECs). When the rates under this contract
are compared to the TELRIC prices that Bell Atlantic has sought
our approval of in docket DE 97-171, it is not clear that the
requirements of RSA 378:18-b have been met. Furthermore, there
are outstanding concerns that approval of this special contract
at the proposed rates will have the effect of being
anti-competitive and subsidized by other captive ratepayers.
Accordingly, we believe it is appropriate to move ahead with
Docket DT 99-018 to explore the issues raised by Bell Atlantic's
employment of an incremental cost methodology for purposes of
meeting its obligation under RSA 378:18-b and using another
methodology for setting wholesale prices charged to competitors.
Bell Atlantic refiled the original cost study details
which Staff raised concerns about in DR 98-221. Nothing in the
current request persuades us to reconsider Order No. 23,109 at
this time. Therefore, we will deny the request to reconsider
approval of this contract. Bell Atlantic may refile the petition
after resolution of docket DT 99-018, our investigation into the
questions outlined above.
Based upon the foregoing, it is hereby
ORDERED, that Bell Atlantic's petition for approval of
the Special Contract is hereby DENIED without prejudice.
By order of the Public Utilities Commission of New
Hampshire this twenty-fifth day of March, 1999.
Douglas L. Patch Susan S. Geiger Nancy Brockway
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary