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UTC enters final order approving and adopting, subject to conditions, five multiparty settlement agreements, on a Joint Application of Verizon Communications Inc. and Frontier Communications Corporation for Transfer of Property.

The Commission on April 16, 2010, entered Order 06, Final Order Approving and Adopting, Subject to Conditions, Multiparty Settlement Agreements and Authorizing Transaction.

Synopsis: The Washington Utilities and Transportation Commission approves and adopts, subject to conditions, five multiparty settlement agreements proposed by all parties, except Public Counsel and the Broadband Communications Association of Washington, and authorizes Frontier Communications Corporation to acquire indirect control of Verizon Northwest, Inc. The five agreements include commitments to ensure a smooth transition to replicated back-office and operations support systems, expand access to broadband service, and protect the financial integrity of Washington operations. The commitments also preserve Commission access to information necessary to perform its regulatory duties, protect service quality to retail and wholesale customers, protect customers, including low-income customers, from rate impacts, and preserve service offerings. The commitments, together with the settlement modifications and additional conditions imposed in this Order, reasonably assure that Frontier Communications Corporation’s proposed acquisition of Verizon Northwest, Inc., will not harm the public interest.

BACKGROUND OF PROCEEDING:

The commission held a prehearing conference on July 7, 2009, at 10:00 a.m., on a joint application of Verizon Communications Inc. (Verizon) and Frontier Communications Corporation (Frontier) for an order declining to assert jurisdiction over the indirect transfer of control of Verizon Northwest Inc. from Verizon to Frontier or, in the alternative, approve the Application under the "Transfer of Property" statute and rules set forth in RCW 80.12, WAC 480-143 and any other authority as may be deemed necessary to effect the Transaction.

On July 28, 2009, the commission issued Order 02 - Prehearing Conference Order, setting a Public Comment Hearing in Everett for October 15, 2009 at 6:00 p.m. (Docket UT-090842, see "Documents" link below for more information).

The commission reschedules the hearing in this matter to convene beginning on February 2, 2010, at 9:30 a.m. and continuing thereafter, as necessary, on February 3 and 4, 2010, in Room 206 of the commission's headquarters. The commission also gives notice that simultaneous post-hearing briefs are rescheduled to February 26, 2010.

On December 7, 2009, the commission received electronic notification that Comcast Phone of Washington, LLC had reached a settlement agreement with Verizon Communications, Inc., and Frontier Communications Corporation (collectively referred to as the Joint Applicants). Also on December 7, the commission received electronic notification that the Joint CLECs had reached a separate settlement agreement with the Joint Applicants. 360networks (USA), Inc. joined in the Joint CLECs' settlement with the Joint Applicants. On December 11, the commission received electronic notification that the Commission Staff reached a separate settlement agreement with the Joint Applicants.

Given the fact that there are four multiparty settlement agreements in this case, none of which has yet to be filed with the commission, the commission determines that the hearings scheduled to begin on December 15, 2009, should be rescheduled.

For additional information, please contact Jing Roth at <jroth@utc.wa.gov> or by calling (360) 664-1291.

Posted/updated: 04/16/2010
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