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Oregon Unbundles LEC Rates

Fortnightly Magazine - October 15 1996

The Oregon Public Utility Commission (PUC) has unbundled services offered by the state's major local exchange carriers (LECs) into a series of network building blocks, pricing the new service offerings in conformance with policies adopted in earlier cases. The ruling retains statewide average rates for local exchange service across all density and distance categories.

The PUC also required the LECs, U S WEST Communications, Inc. and GTE Northwest, Inc., to impute the price they charge to other carriers for basic network functions when setting their own prices. The incumbent LECs must also impute the cost of all nonessential functions necessary to provide the service.

The newly tariffed rates for unbundled service include a contribution to joint and common costs. The PUC rejected a proposal to increase the LECs existing residential service rates, pending a review of their current revenue requirements as well as completion of updated costs studies. Re Investiga. into the Cost of Providing Telecommunications Servs., UM 351, Order No. 96-188, July 19, 1996 (Ore.P.U.C.).


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