DE 98-048 Investigation Into Public Interest Pay Phones Order Establishing Procedural Schedule and Extending Time Limits For Intervention and Preliminary Statements of Position O R D E R N O. 22,940 May 18, 1998 On April 10, 1998, the Public Utilities Commission (Commission) issued an Order of Notice in this matter and opened this docket to investigate, pursuant to Section 276(b)(2) of the Telecommunications Act of 1996 (Tact), whether public interest pay phones should be maintained in New Hampshire and, if so, to ensure that such public interest pay phones are funded fairly and equitably. The TAct defined a public interest payphone as a payphone which 1) fulfills a public policy objective in health, safety, or public welfare, 2) is not provided for a location provider with an existing contract for the provision of a payphone, and 3) would not otherwise exist as a result of the operation of the competitive marketplace. The Federal Communication Commission (FCC) directed each state to evaluate by October 7, 1998 whether it needs to take any measures to ensure that pay phones serving important public interests will continue to exist in light of the elimination of subsidies and other competitive provisions established pursuant to 276. The FCC also determined that the states should administer and fund public interest payphone programs in a manner that is competitively neutral, and which fairly and equitably compensates entities providing public interest pay phones. States have discretion on how to fund their public interest pay phone programs, so long as the funding mechanism 1) fairly and equitably distributes the costs of such a program, and 2) does not involve the use of the subsidies prohibited by 276(b)(1)(B) of the Tact. The Order of Notice set forth certain issues which are raised by this docket, scheduled a prehearing conference for May 5, 1998, required publication of the Order of Notice no later than April 15, 1998, required the parties to summarize their positions for the record and set deadlines for intervention and objections thereto. The Order of Notice was published in the Manchester Union Leader on April 22, 1998, 7 days later than required in the Order of Notice. The prehearing conference was held on May 5, 1998. Motions to intervene were filed by Union Telephone Company, certain Independent Telephone companies (Independent Telephone Companies), the New England Public Communications Council, Inc. (NEPCC) and New Hampshire Legal Assistance (NHLA), each detailing the basis of their interest in the subject matter of the docket. At the prehearing conference on May 5, 1998, the parties in attendance discussed a procedural schedule and collectively proposed a schedule as follows: PUC Press Release to be Issued June 15, 1998 1:30 pm Public Hearing July 15, 1998 Written Comments Filed by all Parties/Staff July 28, 1998 Discussion/Technical Session with Community Action Groups August 18, 1998 Written Recommendations and Reply Comments By All Parties/Staff August 26, 1998 Settlement Discussions, 10:00 A.M. September 22-23, 1998 Hearings, 10:00 A.M. We find the proposed procedural schedule to be reasonable and, barring any change which occurs as a result of late requests for intervention, statements of position or comments on the procedural schedule, as provided below, we will order this schedule for the duration of the proceeding. At the prehearing conference the parties attending stated for the record their preliminary positions. By way of stating its preliminary position at the prehearing conference, Bell Atlantic-NH (Bell Atlantic) contended that there were limited situations where phones would not be economically self sufficient and that often those locations would be part of a profitable group of pay phone locations controlled by a city or town. Bell Atlantic suggested that public interest pay phone service could be provided on a competitive bid process basis but that it was unclear whether a need existed for such pay phones since there has been only a fairly brief period of time under deregulated pay phone service to assess such a need. NEPCC stated that deregulation was new to the pay phone world and that there was limited experience at which to look. Certain independent telephone companies stated that there was limited experience with deregulation and the receipt of compensation. The companies had not formulated a specific position and they were interested in hearing from public interest groups affected, in investigating a compensation mechanism and in looking at the competitive viability of phones in these locations. NHLA stated an interest in access to phone use by low income clients, especially those clients in the northern, rural parts of the state and those who needed affordable phone service. Specific locations were important and possible removal of phones a concern to its clientele. Union Telephone stated no position. The Office of Consumer Advocate shared the concerns of the other parties and was interested in an analysis of whether health, safety or public interest policy objectives were involved in pay phone locations. The OCA did not currently have information regarding whether there should be public interest pay phones but stated that other low-income advocates were interested in the issue. The Commission Staff (Staff) was interested in investigating the positions taken in other states and indicated that further research and input of community action groups in NH was necessary. Staff indicated that it took no position and did not make a specific recommendation at this time. The OCA provided a copy of a letter, which was also sent directly to the Commission, from the New Hampshire Coalition for the Homeless. In that letter, the Coalition indicates that it received notice too late to intervene, but nonetheless comments that homeless people throughout the state rely on pay phones in many aspects of their lives, and that being able to petition for a pay phone location would be beneficial to this group. Because of the delay in publishing the Order of Notice, the deadline for submitting motions for intervention shall be extended to June 5, 1998. Parties who request late intervention shall be permitted to file comments on or before June 5, 1998 concerning the procedural schedule as ordered herein and may submit as well a written statement of their preliminary position regarding the docket. Objections to late motions to intervene shall be filed on or before June 10, 1998. Based upon the foregoing, it is hereby ORDERED, that unless otherwise ordered following the Public Hearing scheduled for June 15, 1998, the procedural schedule as set forth above is adopted for the duration of the case; and it is FURTHER ORDERED, that the petitions to intervene filed by Union Telephone Company, certain Independent Telephone Companies, the New England Public Communications Council, Inc. and New Hampshire Legal Assistance are granted; FURTHER ORDERED, that pursuant to N.H. Admin. Rules Puc 203.01, the Executive Director of the Commission shall notify all persons desiring to intervene in this matter by publishing a copy of this Order no later than May 22, 1998, in a newspaper with statewide circulation; and it is FURTHER ORDERED, that pursuant to N.H. Admin. Rules Puc 203.02, any party seeking to intervene in this proceeding who has not previously intervened shall submit to the Commission an original and eight copies of a Petition to Intervene with copies sent to the Office of the Consumer Advocate on or before June 5, 1998, such Petition stating the facts demonstrating how its rights, duties, privileges, immunities or other substantial interests may be affected by the proceeding, as required by N.H. Admin. Rule Puc 203.02 and RSA 541-A:32,I(b); and it is FURTHER ORDERED, that any party seeking to intervene on or before June 5, 1998 may file with its petition to intervene, a written preliminary statement of its position regarding the subject matter of the docket and any comment it would like considered regarding the procedural schedule as agreed to by the parties attending the prehearing conference on May 5, 1998 and as set forth above; and it is FURTHER ORDERED, that any party objecting to a late Petition to Intervene make said Objection by filing an original and 8 copies thereof, with a copy provided to the Office of Consumer Advocate, on or before June 10, 1998. By order of the Public Utilities Commission of New Hampshire this eighteenth day of May, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Claire D. DiCicco Assistant Secretary