PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission

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Public Utilities Commission Annual Report 2004-05State of Hawaii Page 20network element-platform) lines in service in the State as of March 10, 2005.MCImetro is an authorized provider of telecommunications services in the State.8. COMMISSION APPROVES TARIFF CHANGES.During the Fiscal Year, the Commission approved the following tariff changes for VerizonHawaii:Local Package Plus (“LPP”). In August 2004, the Commission approvedVerizon Hawaii’s request to make LPP (now known as Verizon RegionalPackage Extra (“VRPE”)) a permanent offering. In May 2003, the Commissioninitially approved Verizon Hawaii’s LPP offering on a one-year promotional basis.LPP telecommunications services includes residential line, touch call, unlimiteddirectory assistance (“DA”), up to 14 custom calling features, optional residentialhome voice mail, and unlimited inter-island toll.Wireless E911 Service. In March 2005, the Commission approved VerizonHawaii’s tariff proposal to establish wireless E911 service throughout the State.Verizon Hawaii proposes to establish wireless E911 service in accordance withPhases I and II of Title 47, Part 20, Code of Federal Regulations, CommercialMobile Radio Services. Phases I and II addresses the problem of identifying thelocation of wireless telephones by enabling the transfer of location informationfrom the wireless service providers to a Public Safety Answering Point (“PSAP”).A PSAP routes a 911 telephone call to the appropriate emergency responseteam (i.e., police, fire department, ambulance).9. COMMISSION OVERTURNS POOLING ADMINISTRATOR’S(“PA’s”) DENIAL.In August 2004, the Commission overturned the PA’s denial of MCImetro’s June 16, 2004request for numbering resources, provided that MCImetro is only authorized to receive and/orretain 1,000 numbers from each of the six (6) central office code thousands-block codes to servethe six (6) rate centers of Honolulu, Hilo, Lihue, Wailuku, Kaunakakai, and Lanai City on theislands of Oahu, Hawaii, Kauai, Maui, Molokai, and Lanai, respectively. MCImetro’s new Hawaiiswitch will be used to provide voice service to customers in these rate centers.10. COMMISSION ESTABLISHES TRS CONTRIBUTION FACTORAND FUND SIZE.In May 2003, the Commission required every telecommunications carrier in Hawaii tocontribute to the intrastate TRS fund. A carrier’s contribution to the TRS fund is a product of itsgross operating revenues from the retail provision of intrastate telecommunications service duringthe preceding calendar year and a contribution factor determined annually by the Commission.For the period July 1, 2004 to June 30, 2005, the contribution factor was 0.0010.In April 2005, the Commission initiated a proceeding to examine whether to modify theTRS carrier contribution factor and fund size for the period July 1, 2005 to June 30, 2006. InMay 2005, the Commission adopted its proposal to continue the existing carrier contributionfactor and TRS fund size. The contribution factor for the period July 1, 2005 to June 30, 2006is 0.0010. The projected TRS fund size for the same period is approximately $680,000.
Public Utilities Commission Annual Report 2004-05State of Hawaii Page 2111. COMMISSION APPROVES TIME WARNER TELECOM OF HAWAIIDBA OCEANIC COMMUNICATIONS (“OCEANIC”) FINANCING.In April 2005, the Commission approved the issuance by Time Warner Telecom,Holdings, Inc. (“TWTH”), Oceanic’s general partner, of a proposed debt financing. In the firstquarter of 2004, TWTH closed on the debt financing approved by the Commission during lastfiscal year and, as part of the debt financing, offered $200 million in the 2014 unsecured notes.TWTH intends to follow up on the 2004 offering by an additional offering of the 2014 unsecurednotes. In the proposed debt financing, the additional offering, when combined with the 2004offering, may result in the total issuance of up to $600 million of the 2014 unsecured notes. Theproceeds will be used to redeem a significant portion, or all, of Time Warner Telecom, Inc.’ssenior notes that are due in 2008.12. COMMISSION APPROVES CAPITAL EXPENDITURES.Prior to July 1, 2004, telecommunications carriers were required by the Commission’sadministrative rules to obtain approval for all CIP expenditures over $500,000. Similar to thethreshold applicable to electric utilities, effective July 1, 2004, the threshold fortelecommunications utilities increased from $500,000 to $2.5 million. Accordingly, beginning thisFiscal Year, only those applications requesting approval for CIP expenditures over $2.5 millionmust be submitted to the Commission for review. In the Fiscal Year, the Commission approvedexpenditures totaling over $17 million for Verizon Hawaii’s CIPs.Verizon Hawaii was authorized to expend $15.5 million for the Alakea fire sprinklerproject, $0.9 million for the construction of feeder facilities in lower Mapunapuna and airportareas, and $0.7 million for the E911 service replacement project. Figure 3 shows the total dollarvalue of Commission-approved telecommunications utility CIPs during the past five (5) years.
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PUC Annual ReportâFiscal Year 2004-05 - Public Utilities Commission