*Pages 1--13 from D:\Pdf2Text\Ready4Text_in\pdf\14901.pdf* Dee May Assistant Vice President Federal Regulatory 1300 I Street, NW, Floor 400W Washington, DC 20005 Phone 202 515- 2529 Fax 202 336- 7922 dolores. a. mayQverizon. oom February 14,2002 Ex Parte William Caton Acting Secretary Federal Communications Commission 445 12th St., S. W. -Portals Washington, DC 20554 RE: Am& xxtion by Veriz, on- New Enaland Inc. for Authorization To Provide In- Region, InterLATA Services in State of Rhode Island, Docket No. 01- 324 Dear Mr. Caton: The purpose of this letter is to provide an update on a step that Verizon is voluntarily implementing to address the highly unique and unusual circumstances that have arisen during the pendency of Verizon’ s application to provide long distance service in Rhode Island. Verizon previously demonstrated in its application in this proceeding that Verizon has satisfied the requirements of section 271 of the Act, and the Rhode Island Public Utility Commission (PVC) and the United States Department of Justice have agreed based on the results of their own extensive investigations. Likewise, the Rhode Island PUC previously has adopted a full suite of rates for unbundled elements that it has concluded are TELRIC compliant. Consequently, the voluntary measures that Verizon is implementing are not in any way necessary to demonstrate compliance with section 27 1, other sections of the Act or the Federal Communications Commission’ s (FCC) rules. These voluntary steps do, however, directly address the unique situation created by changes in circumstances that occurred while the Rhode Island application was pending. Specifically, New York’ s previous rates for unbundled switching had provided a basis for comparison of the corresponding Rhode Island rates. On January 28,2002, in the midst of this proceeding, the New York PSC announced that it was adopting new unbundled switching rates in New York. While the FCC repeatedly has held that a range of rates could be set by state commissions consistent with its TELRIC rules (and correspondingly that TELRIC does not require the adoption of any single rate in all cases), neither the PUC nor the FCC has had an opportunity to consider what, if any, impact the recent change in the rates that previously provided a basis of comparison should have in Rhode Island. Given this recent change in circumstances, Verizon is voluntarily modifying its unbundled switching rates in Rhode Island to eliminate any possible argument that these rates exceed the TELRIC range. 1 Specifically, Verizon filed proposed rate reductions with the Rhode Island PUC today. Verizon proposes to reduce the analog port rate by $2.29 from its current level of $4.15 to a proposed level of $1.86. Verizon’ s filing also proposes a 53% reduction in the originating and terminating local switching rates from the current levels of $0.00292 1 and $0.002563 to $0.001358 and $0.001192, respectively. These rates are lower than those in effect in any other state in which the FCC has approved a long distance application, and, we believe, are well below the level that any reasonable measure of TELRIC costs would produce. Accordingly, these reductions remove any uncertainty about whether they comply with what a reasonable application of TELRIC would produce. These proposed rates will be in effect until the Rhode Island PUC completes its upcoming TELRIC proceeding. Under the unique circumstances presented here, consideration of these reductions in the current proceeding are fully consistent with the FCC’ s “complete as filed rule.” As the FCC has explained, it is both permissible and appropriate to rely on a mid- application rate reduction where, as here, it “will serve the public interest.” Kansas/ Okalahoma Order m 22. Like the rate reductions on which the Commission has relied in the past, a reduction in the Rhode Island switching elements would be “quite limited in nature” and would not affect Verizon’ s “rate structure.” Moreover, the reductions address a change in circumstances that was not within Verizon’ s control. Thus, this is an “instance in which an applicant has responded to criticism in the record by taking positive action that will clearly foster the development of competition.” Finally, this application is “otherwise generally persuausive,” and “demonstrates a commitment to opening local markets to competition as required by the 1996 Telecommunications Act.” Id. I¶ 23- 24. Indeed,. for the first time -in a section 27 1 proceeding, no party has disputed that Verizon is offering everything under the checklist in the manner that it is required to, or that Verizon’ s performance in providing access to the various checklist items is excellent across the board. And the record established beyond dispute the enormous public interest benefits that would follow from Verizon’ s entry. In New York, for example, Verizon’ s entry has benefited consumers to the tune of up to $700 million per year in savings from increased long distance and local competition. There is no reason to deny Rhode Island consumers those same benefits. Please let me know if you have any questions. The twenty- page limit does not apply as set forth in DA 0 l- 2746. Sincerely, cc: J. Veach J. Stanley G. Remondino D. Attwood R. Lerner T. Preiss D. Shetler M. Carey 2 Bruce P. Beausejour Vice President and General Counsel - New England Room 1403 le5 Franklin Street Boston, MA 02110 Phone 617 743.2415 Fax 617 7370648 bruce. p. beauseiour@ verizon. com February 14,2002 Luly E. Massaro, Commission Clerk Rhode Island Public Utilities Commission 89 Jefferson Boulevard Warwick, RI 02888 RE: Proposed Modifications to RI WC Tariff No. 18 Dear Ms. Massaro: On December 14,2001, Verizon New England Inc.; d/ b/ a Verizon Rhode Island (“ Verizon RI”), submitted a tariff filing in compliance with the Commission’ s Order in Docket No. 2681, issued on December 3,2001, and the Commission’ s Order in Docket No. 3363, issued on November 28,200l. The PUC No. 18 Tariff pages were filed with an effective date of February 1,2002, and were approved by the Commission at Open Meeting on January 29,2002. Verizon RI is hereby filing as of February 14,2002, for effect February 20,2002, tariff material consisting of the following: PUC- RI- NO. 18 Part Section Revision of Pwe( sl M 2 9,11, and 12 Verizon RI proposes in this filing to substantially reduce the Commission approved rates for analog line ports and local switching. The Company is proposing to reduce the analog port rate by $2.29 from its current level of $4.15 to a proposed level of $1.86. In addition, Verizon RI is proposing a 53% reduction in the originating and terminating local switching rates from the current levels of $0.002921 and $0.002563 to 3 $0.001358 and $0.001192, respectively. Finally, Verizon is also proposing a reduction to Unbundled Telephone Company Reciprocal Compensation and Unbundled TC Reciprocal Compensation that is equivalent to the proposed decrease in the terminating local switching rate. Attachment A provides a comparison of the present and proposed rates. Although the analog port and local switching rates approved by this Commission in Docket Nos. 2681 and 3363 were set in accordance with the FCC’ s TELIUC methodology, the Company is revising those rates in this filing by approximately 50% - well below any reasonable measure of TELRIC - to address the unique circumstances created by changes in New York’ s UNE rates while the Rhode Island application was pending before the Federal Communications Commission. New York’ s previous rates had provided a basis for comparison of the Rhode Island rates. While the FCC has repeatedly made clear that it is the role of individual state commissions to set rates for their states and that its TELRIC rules do not require the adoption of the same rates in every case, neither this Commission nor the FCC has had an opportunity to consider what impact, if any, the change in the rates that previously provided a basis for comparison should have in Rhode Island. Accordingly, Veriron is voluntarily modifying its rates to eliminate every possible argument that those rates exceed the TELRIC range. These rates will remain in effect until the Commission establishes new rates for unbundled network elements. Verizon RI, of course, reserves its right to submit new cost studies in the context of any future proceedings convened by the Commission for purposes of establishing such rates. Enclosed are an original and nine (9) copies of the revised tariff pages. Since the filing provides only for rate reductions and prejudices no carrier, Verizon RI respectfully requests that the Commission approve these tariff changes in less than the 30 day statutory notice period. Thank you for your attention to this matter Sincerely, Bruce P. Beausejour Enclosure cc: Docket No. 3363 Service List Docket No. 2681 Service List 4 Attachment A Rate Element Analog Port Originating Local Switching Terminating Local Switching Unbundled Tel. Co. Recip Comp. Unbundled TC Recip. Comp. Current Rate Proposed Rate $4.15 $1.86 $0.00292 1 $0.001358 $0.002563 $0.001192 $0.003241 $0.001870 $0.005919 $0.004548 5 PUC RI No. 18 Verizon New England Inc. Miscellaneous Network Services Part M Section 2 Page 9 First Revision Canceling Original 2. Rates and Charges 2.6 Local Switching Channel Activation Subsequent to Port Line Port Features Line Port Features 03 Issued: February 14,2002 Effective: February 20,2002 Theresa L O’ Brien Vice President Regulatory- RI 6 PUC RI No. 18 Verizon New England Inc 2. Rates and Charges 2.6 Local Switching Miscellaneous Nehrvork Services Part M Section 2 Page 11 First Revision Canceling Original CR) (R) Unbundled Toll Common 63 (R) Issued: February 14,2002 Theresa L. O’ Brien Effective: February 20,2002 Vice President Regulatory- RI 7 PUC RI No. 18 Verizon New England Inc. 2. Rates and Charges 2.6 Local Switching Miscellaneous Network Services Part M Section 2 Page 12 First Revision Canceling Original (R) CR) Issued: February 14,2002 Theresa L O’ Brien Effective: February 20,2002 Vice President RegulatorpRI 8 RIPUC SERVICE LIST DOCKET NO. 3363 - Verizon RI 271 STATE FILING (12/ 03/ 01) Theresa O’ Brien, Vice President Verizon Rhode Island 234 Washington Street Providence, RI 02903 T: 401- 525- 3060 F: 401- 525- 3064 e- mail: theresa. obrien@ verizon. com Judyann Campbell Verizon Rhode Island 125 High Street, Room 1141 Boston, MA 02110- 1585 T: 6 17- 743- 4659 F: 617- 743- 4833 e- mail: judyann. campbell@ verizon. com Mary E. Burgess, Esquire AT& T Communications of NE, Inc. 32 Avenue of the Americas, Room 2700 New York, NY 10013 T: 5 18- 463- 3 148 F: 5 18- 463- 5943 e- mail: meburgess@ att. com Kenneth Salinger, Esquire Palmer & Dodge LLP 111 Huntington Avenue Boston, MA 02199- 7613 T: 617- 573- 0561 F: 617- 227- 4420 e- mail: ksalin, oer@ palmerdodge. com Craig D. Dingwall, Esquire Sprint Communications Co. LP 401 gth Street, NW, Suite 400 Washington, DC 20004 T: 202- 585- 1941 T: 202- 585- 1936 F: 202- 585- 1894 e- mail: craia. d. dingwall@ mail. sprint. com Bruce Beausejour, Esquire Vice President and General Counsel Keefe Clemons, Esquire Verizon Rhode Island 185 Franklin Street Boston, MA 02110- 1585 T: 617- 743- 2445 T: 617- 743- 6744 F: 6 17- 737- 0648 e- mail: bruce. p. beauseiour@ verizon. com keefe. b. clemons@ verizon. com Paul Hartman Hartman Associates 39435 West 167’ h Street Edgerton, KA 6602 1 T: 913- 893- 6900, ext. 9722 F: 913- 893- 6903 e- mail: hartman. associates. inc@ worldnet. att. com Bonnie J. Watson, Esquire AT& T Communications of NE, Inc. 41 Kay Street Newport, RI 02840 T: 401- 846- 1793 F: 401- 846- 1725 e- mail: bjwatson@ att. com Nancy Clay Sprint Communications Co. LP 240 N. 3rd Street Harrisburg, PA 17101 e- mail: nancv. a. clay@ mail. sprint. com Craig L. Eaton, Esquire Adler Pollock & Sheehan 2500 BankBoston Plaza Providence, RI 02903- 2443 T: 40 l- 274- 7200 F: 40 l- 75 l- 0604 e- mail: ceaton@ apslaw. com 1 9 John 0. Postl, Esquire Assistant General Counsel Global NAPS, Inc. 89 Access Road, Suite B Norwood, MA 02062 T: 781- 551- 9715 F: 781- 551- 9984 e- mail: jpostl@ gnaps. com Jay Goodman, Esquire (for WorldCorn) 86 Weybosset Street Providence, RI 02903 T: 401- 273- 6444 F: 401- 831- 0440 e- mail: jgoodman @ sprynet. com Jennifer A. Marrapese, Esquire Cox RI Telcom, Inc. 70 Comstock Parkway Cranston, RI 02921 T: 401- 821- 1919, ext. 104 F: 401- 383- 2204 e- mail: jennifer. marranese@ cox. com Susan Wittenberg, Esquire Antitrust Division - TTF U. S. Department of Justice 1401 H Street, NW, Suite 8000 Washington, DC 20530 T: 202- 307- 2327 F: 202- 5 14- 638 1 e- mail: susan. wittenbera@ usdoi. Pov David Graham Conversent Communications Two Bedford Farms, Kilton Road Bedford, NH 03 110 T: 603- 606- 6360 F: 603- 606- 5917 e- mail: dgraham@ conversent. com Thomas Weiss Weiss Consulting, Inc. 405 Crossway Lane Holly Springs, NC 27540 T: 919- 557- 8116 F: 919- 557- 8117 e- mail: weisst@ ix. netcom. com Christopher J. McDonald, Esquire WorIdCom, Inc. 200 Park Avenue, Sixth Floor New York, NY 10166- 0099 T: 212- 519- 4164 F: 212- 519- 4569 e- mail: christonher. mcdonald@ wcom. com Patricia M. French, Esquire LeBoeuf, Lamb, Greene & MacRae, L. L. P. 260 Franklin Street Boston, MA 02 110 T: 617- 439- 9500 F: 617- 439- 0341 e- mail: pfrench@ llgm. com Dr. Francis Collins CCL Corporation 176 Rangeley Road Chestnut Hill, MA 02167 T: 617- 277- 8585, ext. 11 F: 617- 277- 2132 e- mail: ccl corp@ msn. com Scott A. Sawyer, Esquire Conversent Communications of Rhode Island, LLC 222 Richmond Street, Suite 206 Providence, RI 02903 T: 40 l- 490.- 6377 F: 40 l- 272- 975 1 e- mail: ssawyer@ conversent. com Leo Weld, Esquire Department of Attorney General 150 South Main Street Providence, RI 02903 T: 401- 222- 2424 ext. 2299 T: 401- 273- 4270 F: 401- 222- 2995 e- mail: lwold@ riag. state. ri. us Brian Kent Division of Public Services 89 Jefferson Boulevard Warwick, RI 02888 T: 401- 941- 4500, ext 143 F: 401- 222- 2099 e- mail: brian. kent@ ripuc. org 2 10 Eric J. Branfman, Esquire (for Covad & CTC) Antony Richard Petrilla, Esquire Ronald W. DelSesto, Jr., Esquire Covad Communications Company Swidler, Berlin, Shereff, Friedman, LLP Hamilton Square 3000 K Street, NW, Suite 300 600 141h Street, NW, Suite 750 Washington, DC 20007 Washington, DC 200052088 T: 202- 424- 7500 F: 202- 424- 7645 T: 202- 220- 04 18 F: 202- 220- 0401 e- mail: eibranfman@ swidlaw. com e- mail: apetrilla@ covad. com rwdelsesto@ swidlaw. com Pamela L. Hintz Robert Mayer CTC Communications, Inc. KPMG 360 Second Avenue 7620 Old Georgetown Road, Apt. No. 1012 Waltham, MA 0245 1 Bethesda, MD 208 14 T: 781- 466- 1242 F: 781- 466- 1306 T: (215) 405- 6849 F: (215) 405- 6590 e- mail: hintzp@ ctcnet. com rhmaver@ kpmg. com Julie Veach Steven Frias, Esquire e- mail: jveach@ fcc. gov Cindy Wilson, Esquire Luly E. Massaro, Secretary RI Public Utilities Commission 89 Jefferson Boulevard Warwick, RI 02888 T: 401- 941- 4500 F: 401- 941- 1691 e- mail: sfrias@ gwia. ripuc. org cwilson@ gwia. ripuc. or. g lmassaro@ gwia. ripuc. org 3 11 Service List for Dkt. 2681: Verizon Rhode Island - TELRIC Studies: Last updated on 12/ 03/ 01 Keefe B. Clemons, Esquire Teri O’ Brien, Vice President Verizon Rhode Island Verizon Rhode Island 185 Franklin Street, Room 1403 234 Washington Street Boston, MA 02110 Providence, RI 02903 T: 617- 743- 6744 F: 617- 737- 0648 T: 401- 525- 3060 F: 401- 525- 3064 Paul Roberti, Esquire Chief, Regulatory Unit Department of the Attorney General 150 South Main Street Providence, RI 02903 T: 401- 222- 2424, ext. 2231 F: 401- 273- 4270 Scott Sawyer, Esquire Conversent Communications of Rhode Island, L: 222 Richmond Street, Ste. 206 Providence, RI 02903 T: 401- 490- 6377 F: 401- 272- 9751 Christopher J. McDonald, Esquire WorldCorn, Inc. 200 Park Avenue, Sixth Floor New York, NY 10166- 0099 T: 212- 519- 4164 F: 212- 519- 4569 Craig D. Dingwall, Esquire Sprint Communications Co. LP 4019” Street, NW, Suite 400 Washington, DC 20004 T: 202- 585- 1941 F: 202- 585- 1894 T: 202- 585- 1936 Patricia M. French, Esquire LeBoeuf, Lamb, Greene & MacRae, L. L. P. 260 Franklin Street Boston, MA 02119- 3173 T: 617- 439- 9500 F: 617- 439- 0341 Jennifer A. Marrapese, Esquire Cox RI Telecom, L. L. C. 70 Comstock Parkway Cranston, RI 02921 T: 401- 383- 2036 F: 401- 383- 2204 Kenneth W. Salinger, Esquire Palmer & Dodge LLP 111 Huntington Avenue Boston, MA 02199- 7613 T: 617- 573- 0651 F: 617- 227- 4420 Mary Burgess, Esquire AT& T Communications of New England, Inc. 32 Avenue of the Americas, Room 2700 New York, NY 10013 T: 212- 387- 4046 F: 212- 387- 5613 Thomas Weiss Dr. Francis Collins Weiss Consulting, Inc. CCL Corporation 405 Crossway Lane 176 Rangeley Road Holly Springs, NC 27540 Chestnut Hill, MA 02167 T: 919- 557- 8116 F: 919- 557- 8117 David Chessler, Ph. D. David Chessler and Associates 7732 Old Chester Road Bethesda, MD 20817 T: 301- 229- 9514 F: 301- 229- 3984 12 Service List for Dkt. 2681: Verizon Rhode Island - TELRIC Studies: Last updated on 12/ 03/ 01 Keefe B. Clemons, Esquire Teri O’ Brien, Vice President Verizon Rhode Island Verizon Rhode Island 185 FranMin Street, Room 1403 234 Washington Street Boston, MA 02110 Providence, RI 02903 T: 617- 743- 6744 F: 617- 737- 0648 T: 4015253060 F: 401- 525- 3064 Paul Roberti, Esquire Chief, Regulatory Unit Department of the Attorney General 150 South Main Street Providence, RI 02903 T: 401- 222- 2424, ext. 2231 F: 401- 273- 4270 Scott Sawyer, Esquire Conversent Communications of Rhode Island, L: 222 Richmond Street, Ste. 206 Providence, RI 02903 T: 401- 490- 6377 F: 401- 272- 9751 Christopher J. McDonald, Esquire WorldCorn, Inc. 200 Park Avenue, Sixth Floor New York, NY 10166- 0099 T: 212- 519- 4164 F: 212- 519- 4569 Craig D. Dingwail, Esquire Sprint Communications Co. LP 4019” Street, NW, Suite 400 Washington, DC 20004 T: 202- 585- 1941 F: 202- 585- 1894 T: 202585- 1936 Patricia M. French, Esquire LeBoeuf, Lamb, Greene & MacRae, L. L. P. 260 Franklin Street Boston, MA 02110- 3173 T: 617- 439- 9500 F: 617- 439- 0341 Jennifer A. Marrapese, Esquire Cox RI Telecom, L. L. C. 70 Comstock Parkway Cranston, RI 02921 T: 401- 383- 2036 F: 401- 383- 2204 Kenneth W. Salinger, Esquire Palmer & Dodge LLP 111 Huntington Avenue Boston, MA 02199- 7613 T: 617- 573- 0651 F: 617- 227- 4420 Mary Burgess, Esquire AT& T Communications of New England, Inc. 32 Avenue of the Americas, Room 2700 New York, NY 10013 T: 212- 387- 4046 F: 212- 387- 5613 Thomas Weiss Dr. Francis Collins Weiss Consulting, Inc. CCL Corporation 405 Crossway Lane 176 Rangeley Road Holly Springs, NC 27540 Chestnut Hill, MA 02167 T: 919- 557- 8116 F: 919- 557- 8117 David Chessler, Ph. D. David Chessler and Associates 7732 Old Chester Road Bethesda, MD 20817 T: 301- 229- 9514 F: 301- 229- 3984 13