DE 98-042 Bell Atlantic Request to Include East Hampstead in the Local Calling Area of the Hampstead Exchange Order Granting Relief and Requesting Additional Information O R D E R N O. 23,038 October 7, 1998 I. PROCEDURAL HISTORY On March 20, 1998, the New Hampshire Public Utilities Commission (Commission) received a letter from State Senator Richard Russman urging the Commission to expand the Plaistow local calling area to include Derry and Salem. On April 1, 1998, the Commission received a petition from Karen Solomonides and Cheryl Giaquinta, signed by 250 residents of the Plaistow (382 and 378) exchange, requesting that the local calling area be expanded to include Derry and Salem. The petition explained that central and western Hampstead are located in the Hampstead exchange, which includes Derry and Salem in the local calling area, while East Hampstead is located in the Plaistow exchange which does not include Derry and Salem in the local calling area. The petition also requested an evening hearing in the town of Hampstead. On July 20, 1998, the Commission issued an Order of Notice scheduling an evening hearing for August 4, 1998. The Order of Notice indicated that EAS petitions are subject to a standard established by Order No. 22,204 issued June 18, 1996 which includes consideration of community of interest, the effect on telecommunications competition within New Hampshire, and consistency with state and federal law. On August 4, 1998, the Commission held a duly noticed hearing for the public at the Hampstead Town Hall. The Commission heard comments from members of the public and from the New England Telephone & Telegraph Company d/b/a Bell Atlantic and hereinafter referred to as Bell Atlantic. The Commission accepted written comments and comments submitted by electronic mail after the hearing. II. POSITIONS OF THE PARTIES A. Petitioners Many East Hampstead customers asserted that as a matter of equity, they should have the same local calling area as the customers in the western and central parts of Hampstead who are able to call Derry and Salem without incurring toll charges. Hampstead children attend Pinkerton Academy in Derry and the community hospital, Parkland Medical Center, is also located in Derry. Salem is the major retail area for the Town of Hampstead. The residents argued that they pay a disproportionate amount in toll charges to schools, doctors, hospitals and retail stores compared to their neighbors in Hampstead who are located in the Hampstead exchange. They believe it is unfair that despite the fact that they live in the same town, go to the same schools and use the same retail stores as other residents of Hampstead, they incur toll charges while their neighbors do not. B. Bell Atlantic Mr. Charles Paone, on behalf of Bell Atlantic, stated that the EAS rules recently established by the Commission balance the sometimes conflicting interests of all customers within an exchange and the Company would comply with the outcome of these rules. He also pointed out that if the Commission directed Bell Atlantic to expand the local calling area, the engineering and implementation phase could take up to six months. In response to questions, Mr. Paone indicated that it is technically possible to address this problem using software, but may be very difficult. C. Written Comments After the hearing, the Commission received additional letters supporting the petition, including a letter from the Town of Hampstead Office of Selectmen. The letter reiterated a point made at the hearing that the 400 East Hampstead customers in the Plaistow exchange of approximately 8700 access lines are a small minority of the entire Plaistow exchange, but nevertheless, should have the same local calling area as other Hampstead residents. III. COMMISSION ANALYSIS This petition is before us for analysis in light of our prior decisions regarding expansion of EAS, the Telecommunications Act of 1996 (TAct) and the actual changes in telecommunications markets in New Hampshire. By Order No. 22,204, issued June 18, 1996, we found that carriers and communities retained the right to petition for EAS expansion and articulated the standard for assessing an EAS petition. The standard applies a community of interest approach as defined in FCC Docket No. 96-45, In the Matter of Federal-State Joint Board on Universal Service, Report and Order, FCC 97-157, released May 8, 1997 and hereinafter referred to as the Universal Service Order. In the FCC's opinion, a calling area which reflects the community of interest is one which "allows subscribers to call hospitals, schools and other essential services without incurring a toll charge." Further elaborating on the issue of affordability, the FCC states in its Universal Service order that "...affordability is affected by the amount of toll charges a consumer incurs to contact essential service providers such as hospitals, schools, and government offices that are located outside of the consumers local calling area...". We use the FCC definitions to facilitate examination of this petition. From the comments made by customers residing in East Hampstead at the public hearing on August 4, 1998, the Plaistow exchange does not appear to encompass their community of interest. We are convinced that the petitioners have established that a community of interest exists between the customers of East Hampstead and the towns of Derry and Salem and that those customers residing in the East Hampstead portion of the Plaistow exchange should be afforded the same local calling opportunities as those citizens residing in the westerly and central portions of Hampstead. However, we are not convinced at this point in time that it is necessary or appropriate to poll the entire Plaistow exchange on the question of whether the entire exchange should be augmented to include Salem and Derry. Accordingly, we will direct Bell Atlantic to provide the following information within 30 days of this order so that the Commission can adopt an appropriate plan for resolving this matter: 1. the cost (per customer) of rewiring the affected East Hampstead lines from the Plaistow central office to the Hampstead central office; 2. the cost (per customer) of developing a billing solution that would treat the East Hampstead customers as if they were in the Hampstead exchange; 3. a new optional calling plan and any costs/rates that would be associated with it; and, 4. any other option that Bell Atlantic believes would be appropriate to address the issues discussed above. Upon receipt of the information required above, we will determine the appropriate resolution of this petition. Prior to implementing any change that would result in increased rates we will provide residents with notice of the proposed change and an opportunity to respond either by conducting a poll or a hearing. Based upon the foregoing, it is hereby ORDERED, that within 30 days, Bell Atlantic provide the Commission with the information listed in 1 through 4 above. By order of the Public Utilities Commission of New Hampshire this seventh day of October, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary