At a session of the Public Service Commission of West Virginia, in the City of Charleston, on the 27th day of February, 2001.

Transcription

1 ~ 7... ;* OR I GI NAL \ ENTERE 0i-G Page PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON com wpd At a session of the Public Service Commission of West Virginia, in the City of Charleston, on the 27th day of February, CASE NO T-PW WEST SIDE TELECOMMUNICATIONS Petition for waiver of the Commission s Telephone Rules and Regulations in regard to the general prohibition against providing a single bill for certain billing for non-telecommunications services and items. COMMISSION ORDER PROCEDURE AND DISCUSSION On October 25,2000, West Side Telecommunications (West Side) filed a petition for a waiver of Rule 2.1.a. 1 of the Commission s Rules and Regulations for the Government of Telephone Utilities, 150 C.S.R. Series 6 (Telephone Rules). West Side sought a waiver, effective November 1, 2000, of Telephone Rule 2.1.a. 1 to the extent it prohibits bills for telecommunication service from containing charges for non-telecommunications services or items. West Side sought a waiver of this rule in order to allow it to include the following non-telecommunication services and items on its telephone bills: (1) deregulated Internet service, (2) sales by West Side of inside wire maintenance, and (3) sales by West Side of deregulated Customer Premise Equipment (CPE) and computers. West Side Petition, at mission inia I m-

2 In support of its petition, among other things, West Side notes that it has provided a single bill for CPE and computers, as well as for Internet service, for at least four years. Id. at 2 & 6. West Side notes that it has never received a customer complaint regardmg its practice and cites a variety of reasons a single bill provides its customers with greater convenience. West Side requested Commission action on its petition by November 1,2000, to correspond to its bill mailing practices. In the event that Commission action could not be taken by the state, West Side requested a temporary waiver of Telephone Rule 2.1.a. 1 until such time as final action is taken. If its petition were denied by the Commission, West Side requested an extension of any limited waiver for a period of 60 days in order to implement alternative billing arrangements and customer notification. Id. at 2 Fn. 2. On November 2, 2000, West Side amended its petition to clarify that its use of the term inside wire maintenance included not only West Side s monthly charges for its inside wire maintenance plan, but also those charges for the installation or repair of inside wire that may be requested by a West Side customer, regardless of whether the customer is covered by its plan. When reviewing its petition, West Side requested that the Commission accept and use this clarification of its term inside wire maintenance. In addition, West Side requested that its petition be amended to allow it to continue to provide a single bill option for voice mail services that the company offers its local exchange customers. West Side noted that it has likewise not received any customer complaints or inquiries associated with its single billing practice for this service. 2 Public Se. omrnissicn nipl;inia

3 On November 6,2000, West Side filed a further amendment of its petition to include local exchange service customers who have purchased West Side s additional directory listing and other special types of listing services (ADLS) included in Section S7 of West Side s P.S.C.-W.Va. - Tariff No. 8. On December 1, 2000, Commission Staff filed its Initial and Final Joint Staff Memorandum recommending approval of West Side s petition effective on the date of the granting order. Additionally, Staff recommended that West Side be required to: 1. Within 3 billing cycles following the granting of the waiver, begin to clearly and separately list telecommunications services and nontelecommunications services, as well as the subtotals charged for each, on all bills which include both types of services; 2. Within 30 calender days of the issuance of the waiver granting order, file tariff verbiage which lists the non-telecommunications services covered by the waiver and which codifies item 1, immediately above; 3. Within 3 billing cycles following the granting of the waiver, modify its bills such that they clearly inform the bill recipient that failure to timely pay charges for non-telecommunications services provided by West Side will not jeopardize provision of telecommunications services; 4. Provide PSC Staff with a copy of the billing format showing compliance with items 1 and 3 immediately above. Thereafter, on December 8, 2000, West Side filed a letter with the Commission requesting a modification to Staffs recommendation which required West Side to subtotal and separately list charges for telecommunications and non-telecommunications services on 3 I

4 its customer s bills by the third billing cycle after the Commission grants West Side s waiver request. West Side requested that the implementation date for subtotaling charges be extended to May 1,2001. In support of its requested modification, West Side noted that it is currently converting its end user billing system, which, absent unanticipated delays, this should be completed in March, Also after Staffs final memorandum was filed, the Commission directed Staff to clarify what West Side meant when it referred to billing for equipment. The Commission sought clarification whether West Side is selling such items, whether charges for such items appear on telephone bills, and whether West Side charges interest for such items. In response to Staffs inquiries, West Side filed a letter with the Commission on December 21,2000, clarifying its petition. West Side advised that it used customer premises equipment (CPE) consistent with that term s use in the telecommunications industry and therefore did not specifically list the CPE that it may want to sell or lease. However, West Side advised that the following are examples of the types of CPE it currently offers to its customers: telephones, key systems and Caller ID devices. With respect to computers, West Side stated that it also offers to sell computers to customers of its Internet division, and that it listed computers separately from CPE in light of computers multiple uses. In addition, West Side stated that the prices it charges reflect its experience regarding collection and therefore no interest charges are assessed. Finally, West Side stated that it does not sell or 4 mission inia

5 lease CPE for third parties. In a Staff memorandum entered on January 24, 2001, Staff indicated that it has reviewed West Side s December 8 and December 21, 2000, filings and now offers the following additional recommendations. First, Staff stated it has no objection to the requested extension of the deadline for implementing Staffs condition regarding subtotaling telecommunications and non-telecommunications charges until May 1,2001. Second, Staff stated it does not object to West Side s inclusion of charges associated with CPE and computers. West Side s interpretation of CPE is consistent with industry usage. Newton s Telecom Dictionarv (16* Ed. 2000), at 227. Local exchange carriers have traditionally provided, for a fee, such CPE. Staff also stated it has no objection to West Side offering computers to its Internet customers and including charges for such computers on its telephone bills to such customers. Staff indicated that this practice is consistent with industry trends toward bundling traditional telecommunications services and products. Finally, West Side s response to Staffs questions indicates that it does not charge interest for the sale or lease of CPE. This is acceptable to Staff. Accordingly, Staff reiterated its original recommendation that West Side s petition for a waiver should be granted, subject to the conditions set forth in Staffs December 1,2000, memorandum, and subject to the proviso that West Side has until May 1,2001, to modify its billing system to comply with Staffs recommendation regarding subtotaling of charges 5

6 for telecommunications and non-telecommunications services. On January 30,2001, West Side filed a letter responding to Staffs January 24,2001 memorandum requesting the petition be granted effective November 1,2000, subject to the modified conditions as suggested in Staffs memorandum. DISCUSSION Upon review of West Side s petition and Staffs recommendations pertaining thereto, the Commission fmds it reasonable to grant West Side s request for an extension of the deadline for implementing Staffs condition regarding subtotaling telecommunications and non-telecommunications charges until May 1,2001. Further, the Commission does not find West Side s inclusion of charges associated with CPE to be objectionable. However, the Commission is reluctant to grant West Side s request to offer computers to its Internet customers, for which West Side could then include charges for such computers on its telephone bills, without further investigation into the implications of this practice. Even though Staff has indicated that this practice is consistent with industry trends toward bundling traditional telecommunications services and products, the Commission would like more time to explore the issue before granting its consent and approval. Therefore, the Commission shall approve West Side s petition, with the exception of that portion which requests that the inclusion of charges associated with computers be permitted on a telephone 6 R Public ServiceCcinmksion

7 bill. With this exception the Commission shall approve West side s petition subject to Staffs recommendations as stated in its December 1,2000 memorandum. FINDINGS OF FACT 1. On October 27, 2000,West Side Telecommunications (West Side) filed a petition for a waiver of Rule 2.1.a. 1 of the Commission s Rules and Remlations for the Government of Telephone Utilities, 150 C.S.R. Series 6 (Telephone Rules). West Side Petition, at West Side sought a waiver of this rule in order to allow it to include the following non-telecommunication services and items on its telephone bills: ( 1) deregulated Internet service, (2) sales by West Side of inside wire maintenance, and (3) sales by West Side of deregulated Customer Premise Equipment (CPE) and computers. West Side Petition, at In support of its petition, among other things, West Side noted that it has provided single billing for some time and never received a customer complaint regarding its practice. Id. at West Side requested Commission action on its petition by November 1,2000, 7 u Public Service-Ganmission

8 to correspond to its mailing practices. 5. On December 8,2000, Commission Staff filed its Initial and Final Joint Staff Memorandum recommending approval of West Side s petition effective on the date of the granting order. Additionally, Staff recommended that West Side be required to: 1. Within 3 billing cycles following the granting of the waiver, begin to clearly and separately list telecommunications services and nontelecommunications services, as well as the subtotals charged for each, on all bills which include both types of service; 2. Within 30 calender days of the issuance of the waiver-granting order, file tariff verbiage which lists the non-telecommunications services covered by the waiver and which codifies item 1, immediately above; 3. Within 3 billing cycles following the granting of the waiver, modify its bills such that they clearly inform the bill recipient that failure to timely pay charges for non-telecommunications services provided by West Side will not jeopardize provision of telecommunications services; 4. Provide PSC Staff with a copy of the billing format showing compliance with items 1 and 3 immediately above. 6. On December 8, 2000, West Side filed a letter with the Commission requesting a modification to Staffs recommendation which required West Side to subtotal and separately list charges for telecommunications and non-telecommunications services on its customer s bills by the third billing cycle after the Commission grants West Side s waiver request. West Side requested that the implementation date for subtotaling charges be extended to May 1,

9 7. In a Staff memorandum entered on January 24,2001, Staff indicated that it has reviewed West Side s December 8 and December 21, 2000, filings offered additional recommendations. 8. Staff reiterated its original recommendation that West Side s petition for a waiver should be granted, subject to the conditions set forth in Staffs December 1, 2000, memorandum, and subject to the proviso that West Side has until May 1, 2001, to modify its billing system to comply with Staffs recommendation regarding subtotaling of charges for telecommunications and non-telecommunications services. 9. On January 30, 2001, West Side filed a letter responding to Staffs January 24, 2001 memorandum requesting the petition be granted effective November 1, 2000, subject to the modified conditions as suggested in Staffs memorandum. CONCLUSIONS OF LAW 1. It is reasonable to grant West Side s request for an extension of the deadline for implementing Staffs condition regarding subtotaling telecommunications and non- telecommunications charges until May 1,

10 2. It is reasonable to grant West Side s request and permit West Side to include charges associated with CPE on its telecommunications services bill. 3. It is reasonable to deny West Side s request to offer computers to its Internet customers, for which it would then bill such customers for related charges on its telephone bills, until the Commission has explored the implications of such a practice. ORDER IT IS THEREFORE ORDERED that West Side Telecommunication s petition for a waiver of Rule 2.1.a. 1 of the Commission s Rules and Redations for the Government of Teleuhone Utilities, 150 C.S.R. Series 6 (Teleuhone Rules), filed on November 4, 2000, regarding Telephone Rule 2.1.a. 1 s prohibition against bills for telecommunications service containing charges for non-telecommunications services and/or items is hereby granted, effective as of November 1,2000. IT IS FURTHER ORDERED that West Side Telecommunication may include the following non-telecommunication services and items on its telephone bills:( 1) deregulated Internet service, (2) sales by West Side of inside wire maintenance, and (3) sales by West Side of deregulated Customer Premise Equipment (CPE). 10

11 IT IS FURTHER ORDERED that West Side Telecommunication may not include following non-telecommunication services and items on its telephone bills: sales by West Side of deregulated computers. IT IS FURTHER ORDERED that West Side Telecommunication s request for an extension of the deadline to implement Staffs aforementioned condition regarding subtotaling telecommunications charges and non-telecommunications charges until May 1, 2001 is hereby granted. to: IT IS FURTHER ORDERED that West Side Telecommunication is hereby required 1. Within 3 billing cycles following the granting of the waiver, begin to clearly and separately list telecommunications services and nontelecommunications services, as well as the subtotals charged for each, on all bills which include both types of services; 2. Within 30 calender days of the issuance of the waiver granting order, file tariff verbiage which lists the non-telecommunications services covered by the waiver and which codifies item 1, immediately above; 3. Within 3 billing cycles following the granting of the waiver, modifl its bills such that they clearly inform the bill recipient that failure to timely pay charges for non-telecommunications services provided by West Side will not jeopardize provision of telecommunications services; 4. Provide PSC Staff with a copy of the billing format showing compliance with items 1 and 3 immediately above. mission pub ig!!!ij inia 11

12 . IT IS FURTHER ORDERED that West Side Telecommunications is hereby reminded that TeleDhone Rule 2.4.e which prohibits the termination of basic local exchange service for non-payment of charges relating to services other than basic local exchange service still applies. IT IS FURTHER ORDERED that upon entry of this order this matter shall be removed from the Commission s docket of active cases. IT IS FURTHER ORDERED that the Commission s Executive Secretary shall serve. a copy of this order upon all parties of record by United States First Class Mail, and upon Commission Staff by hand delivery. Otis D.zast< Chairman Marda Y. Walker, tommissioner BFE/sek c.wpd 12 Charleston