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PA Bulletin, Doc. No. 01-2217

NOTICES

Tentative Order

[31 Pa.B. 6763]

Public Meeting held
November 9, 2001

Commissioners Present: Glen R. Thomas, Chairperson; Robert K. Bloom, Vice Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick

Request for Comments re:  Standard for Comparing Local Service Options for Use in a Consumer Education Program on Telephone Competition; Doc. No. M-00011580

Tentative Order

By the Commission:

   The Commission proposes to implement a consumer education program concerning telephone competition in this Commonwealth. The program would educate consumers about the choices they have among carriers for various services including, but not limited to, local and long distance. The program would also educate consumers on how to read their bills and on what questions to ask when they inquire about their services.

   Recent studies indicate that consumers' preferences are to have prices for the products and services to assist them in making a choice. We would like to accommodate those preferences in a manner that is easily readable, understandable and competitively neutral.

   In the Electric Choice program1, the ''price to compare'' became a key piece of consumer information. The ''price to compare,'' which was expressed in cents/kWh and was unique to each electric distribution company, established a baseline for customers to use to compare and to evaluate the offers of competing electric generation suppliers. Thus, the ''price to compare'' facilitated customer choice by providing customers with an easy way to consider their electric generation supply options.

   The Commission is looking to establish a similar tool in the telecommunications industry that will reduce customer confusion and will give customers the essential information that they need to do comparison shopping for local telephone service. The question is what information/standard would assist consumers and foster competition in the local telephone service market but would not be anti-competitive.

   The standard should be universal and would be used when consumers apply for residential telephone service by phone, with a local exchange carrier service (LEC) representative providing the customer with information. This information should provide consumers with the opportunity to make a comparison among the companies offering service in their area so that they can purchase the telephone service that best meets their respective needs.

   The standards for comparison that is derived as a result of this inquiry will not obfuscate the LEC's duty to comply with the Federal Communication Commission's Truth-In-Billing Rules, 15 U.S.C.A. § 1601, et seq., and our own standards and billing practices for residential customers or prior Commission orders relating to lifeline service availability.

   We seek comments from the public and industry on this matter. Those submitting comments shall provide concrete proposals in support of their suggestions. In addition, we also seek specific comment on the following questions:

   1.  Would a proposed guideline(s)/standard(s) present an illegal barrier to entry under the Telecommunications Act of 1996 (TA-96)?

   2.  Will a proposed guideline(s)/standard(s) assist consumers in making a meaningful and effective comparison of the offers of competing local telecommunications service providers?

   3.  Should LECs (Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs)) be obligated to offer customers the service package/plan represented by a ''price to compare?''

   4.  Is an approach similar to the one used in the electric choice program viable/feasible/workable in the telephone industry?

   5.  If so, what component(s) of service should be the basis for a comparison?

   6.  The FCC's Truth-In-Billing regulations, 15 U.S.C. §§ 1601, et seq., and our own regulations require a basic service to be billed separately. Would that be a viable basis for the comparison?

   7.  If the Commission would decide to do a ''price to compare,'' should information be confined only to a ''residential flat monthly rate for unlimited local calling within a calling area that is equal to, or larger than, the calling area provided by an incumbent local exchange carrier''?

   8.  What is the estimated cost of implementing these guidelines/standards establishing the ''price to compare'' and presenting the ''price to compare'' to consumers in marketing materials, web sites, billing inserts and/or in customer service telephone contacts?

   9.  What would be the best way to implement this type of program?

   In order to facilitate public comment/input on this matter, we will establish a 10-day comment period from the date of the publication of this order in the Pennsylvania Bulletin. We urge that all interested persons file comments as soon as possible. Note that reply comments will not be permitted; Therefore,

It Is Ordered that:

   1.  The requests for response and comment to the questions set forth in this Tentative Order regarding a standard for use in a consumer education program on telephone competition be issued to the public and to the industry.

   2.  This Tentative Order be published in the Pennsylvania Bulletin and that a comment period ending 10 days after publication is hereby established.

   3.  Written comments, an original and 15 copies shall be submitted to the Secretary, Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265. No reply comments will be permitted. A diskette containing the comments in electronic format must also be submitted. Comments should specifically reference the docket number of this order.

   4.  A copy of this order and any accompanying statements of the Commissioners be served upon all jurisdictional local exchange carriers, the Pennsylvania Telephone Association, the Pennsylvania Cable and Telecommunication Association, the Office of Consumer Advocate, the Office of Small Business Advocate and the Office of Trial Staff, posted on the Commission's website at http://puc.paonline.com and shall be made available to all other interested parties.

   5.  The contact persons for this matter are Lenora Best, Consumer Services, (717) 783-9090 and Patricia Krise Burket, Law Bureau (717) 787-3464.

JAMES J. MCNULTY,   
Secretary

______

1 The Electric Choice Program was the consumer education/information program that facilitated customer participation in this Commonwealth's competitive electric generation market. As such, it represents an important milestone in the transition of this Commonwealth's electric industry from a regulated monopoly to a competitive marketplace.

[Pa.B. Doc. No. 01-2217. Filed for public inspection December 7, 2001, 9:00 a.m.]


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