872 Monitoring and enforcement of network modernization plans

Monitoring and Enforcement of Network Modernization Plans

[35 Pa.B. 2708]

Public Meeting held
March 23, 2005

Commissioners Present: Wendell F. Holland, Chairperson; Robert K. Bloom, Vice Chairperson; Kim Pizzingrilli

Monitoring and Enforcement of Network Modernization Plans; M-00051872

Verizon Pennsylvania Inc. Petition and Plan for Alternative Form of Regulation under Chapter 30; 2000 Biennial Update to Network Modernization Plan (Amendment to NMP); P-00930715F0002

Verizon Pennsylvania Inc. Petition and Plan for Alternative Form of Regulation Under Chapter 30; 2000 Biennial Update to Network Modernization Plan (Petition For Reconsideration of May 15, 2002 Order); P-00930715

Order

By the Commission:

   At our Public Meeting of March 23, 2005, the Commission had before it a proposed Tentative Order setting forth the details for an audit of the Network Modernization Plan (NMP) of Verizon Pennsylvania Inc. (Verizon). This proposed order was in response to our previous directive to Commission Staff to prepare a recommendation ''detailing the nature and scope of an appropriate audit plan related to the network modernization plans of Verizon Pennsylvania Inc. and other Chapter 30 companies.'' Verizon Pennsylvania Inc. Petition and Plan for Alternative Form of Regulation under Chapter 30; 2000 Biennial Update to Network Modernization Plan, Docket No. P-00930715F0002 et al., Ordering Paragraph No. 16 (Order entered September 17, 2003) (September Order).¹

   Effective December 1, 2004, Act of 2004, P. L. 1398, No. 183 (Act 183), became the new Chapter 30 to Title 66 of the Pennsylvania Consolidated Statutes. Prior to Act 183, ILECs who submitted NMPs were able to seek an alternate form of regulation. 66 Pa.C.S. § 3003 (repealed 2004). Act 183 continues the NMPs that are currently in effect but also allows ILECs to amend them to accelerate broadband deployment.²

   Act 183 also requires that the Commission ''monitor and enforce companies' compliance with their interim and final 100% commitments for broadband availability in their amended network modernization plans.''³ ILECs failing to meet their NMP commitments may be required to provide refunds and may also be subject to civil or other penalties pursuant to the Commission's general authority under Chapter 33. 66 Pa.C.S. §§ 3301--3316.

   This statutory change, which occurred since we first announced our intent to audit Verizon's NMP, requires us to further evaluate the best way to fulfill our statutory role of monitoring and enforcing companies' compliance with the NMP provisions of Act 183. To ensure that the Commission has the information needed to develop a useful, comprehensive and appropriate NMP monitoring and enforcement program in accordance with Act 183, the Commission needs further input from interested parties on all relevant issues relating to such an undertaking. For example, commenters should address the nature, extent and funding of any monitoring and enforcement program that may be needed to verify independently, based on a review of company records and on-site inspections, each company's network deployment as reported in its NMP updates. Additionally, commenters should address the appropriate timing of embarking upon such a program in consideration of the time lapse between the Commission's decision to implement an NMP audit program and the passage of Act 183 allowing ILECs to amend their NMPs. Finally, commenters are invited to address other related matters that would assist in our deliberation of this matter.

   Due to the complexity of the issues raised, we direct that comments be due within 30 days of the publication of this Order in the Pennsylvania Bulletin with replies due 20 days thereafter.

   By building on the solid foundations we have already established as a result of our September Order in combination with Act 183 and the input of interested parties, the Commission will be better positioned to fulfill its statutory responsibility of monitoring and enforcing ILECs' NMP commitments. In this way, the Commission will be able to ensure that all Pennsylvanians have the opportunity to receive the benefit of the advanced broadband services contemplated by both the previous version of Chapter 30 as well as Act 183; Therefore,

It Is Ordered That:

   1.  The Secretary serve a copy of this order on all incumbent local exchange telecommunications carriers, the Office of Consumer Advocate, the Office of Small Business Advocate and the Pennsylvania Telephone Association. Notice of this Order shall be published in the Pennsylvania Bulletin.

   2.  An original and 15 copies of any comments by interested parties shall be filed with the Secretary within 30 days of publication in the Pennsylvania Bulletin. Reply comments shall be filed within 20 days thereafter.

   3.  The contact persons for this matter are Dennis Hosler, Bureau of Audits, [phone], Lou Samsel, Bureau of Fixed Utility Services, [phone], and Carl S. Hisiro, Law Bureau, [phone].

JAMES J. MCNULTY,   
Secretary

[Pa.B. Doc. No. 05-872. Filed for public inspection April 29, 2005, 9:00 a.m.]

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¹  A Secretarial Letter dated April 21, 2004, was thereafter issued noticing our intent to ''commence the NMP audit program envisioned by the September Order'' to ensure that the progress of each NMP ''can be adequately tracked and independently verified.'' After setting forth the specific areas targeted for the audit, the Secretarial Letter indicated that a Request for Proposal (RFP) would be released in the first quarter of 2005 ''in order to commence the audit program in a timely manner upon receipt of Verizon's 2004 Biennial Update which is due by June 30, 2005.'' Finally, while the initial audit would be limited to Verizon, the Secretarial Letter stated that the NMP audit program ''may extend to other Incumbent Local Exchange Carriers (ILECs) in subsequent years,'' and it was served on all ILECs with Chapter 30 plans.

²  See Act 2004, P. L. 1398, No. 183, § 3014(a)--(b). Since the effective date of Act 183, the Commission has received petitions to amend from all 33 ILECs with NMPs currently in effect. On February 17, 2005, Verizon filed its Petition to Amend.

³  See Act 2004, P. L. 1398, No. 183, § 3015(a)(2).