by the PCS and the Federal Energy Regulatory Commission if the city of Hildale provides gas across
the border to Colorado City, Arizona. He also said Questar has offered to serve Hildale and other
nearby cities.
4. Telecommunication Issues - Local Government - Mr. Roger Tew and Mr. Scott Brian, consultants - League of Cities & Towns , gave a slide presentation on rights-of-way and franchising, and distributed handouts titled "Telecommunications Rights-Of-Way Ordinance," "Proposed Mode
Excavation Permit Ordinance," a "Franchise Agreement," and a "Telecommunications Franchise
Application."
Mr. Brian also updated the committee on the adoption of model ordinances by cities in Utah.
He noted that the ordinances and agreements can be accessed on the Internet. Mr. Tew also discussed
cost, standards, and whether local government should have authority to regulate and sell rights-of-
way access.
Mr. Jerry Oldroyd, Suitter Axland for Electric Lightwave, Inc., said his company participated
in the model ordinance process and found it successful. Mr. Gary Spendlove, US West, also spoke
in support of the process.
5. Revisiting the Utah Telecommunications Act of 1995 - Mr. Ted Smith, US West, distributed a handout titled "1995 Utah Legislation & 1996 Federal Legislation _ Current Status,"
and discussed the facts as noted in the handout. He addressed the purposes of the State and Federal
Acts. He also reported on the status of competition and why residential competition is lagging. Mr.
Smith specified that regulatory parity continues to be a major issue and that all rules should apply
to all providers.
Ms. Nancy Gibbs and Mr. Eddie Cox, Independent Telephone Providers, gave a slide
presentation and distributed copies to the committee titled "Exchange Carriers of Utah." Mr. Cox
discussed the services provided by independent Utah telephone companies. He also spoke about the
cost of rural telephone service in Utah, why the costs are higher in rural Utah, how the rates are kept
affordable to rural customers, and what needs to be done to protect the rural customer.
Mr. Jerry Oldroyd, Suitter Axland for Electric Lightwave, Inc., indicated that the '95 State
law regarding deregulation is divided into four separate parts: (1) effective entry, (2) interconnection,
(3) incentives or pricing flexibility to the telecommunication companies, and (4) price regulation and
effective competition.
Mr. Oldroyd said the section in the State Act dealing with deregulation and effective
competition needs to be addressed. He also said that under Utah law, any service and any company
can be deregulated upon assuring that there is effective competition. In addition, he said there are
a number of areas that may qualify. However, the burden is on US West and the competitors. He also
said the State Act includes a provision that any qualifying service should file an application with
PSC, showing and demonstrating effective competition, before the service can be deregulated
Ms. Claire Geddes, United We Stand, distributed an article from the Deseret News titled
"Shortfall to Boost Property Taxes." She said Utah residential rate payers will be taxed in order to
make up for the shortfall due to reassessment of US West properties, causing them to pay twice. She
indicated that US West has an unfair competitor's advantage. She also read some competitive market
issues from the Spring 1997, Anti-Trust Bulletin.
Ms. Sue Ashdown, X-Mission, described DSLAM and explained how Internet service
providers can access the service. She expressed concern that US West does not want local
competitive exchange carriers to provide this service and that US West does not have to prove there
is competition before price listing a new service. She also said US West has not provisioned Internet
service providers, has not marketed it fairly, but is allowed to sell the service.
Ms. Ashdown distributed several handouts, including a Deseret News article titled "US
WEST practice questionable," a Salt Lake Tribune article titled "Quick Internet Connection Hit
Speed Bump," a document titled "Reply Comments of the Washington Utilities & Transportation
Commission." She also discussed the information as outlined in the handouts.
Mr. Parker Garlitz, Internet Technology Systems, Inc., spoke about how the inability to
obtain new DSLAM services from US West has effected his company. He said his company was
unaware that the ability to provision customers would become a challenge. He also said that his
company will not be able to offer DSLAM service as a result of US West not having enough
provisions for his company at the central office, even though they had accepted his company's order
for the service.
Mr. Dax Kelson, Internet Connect, discussed the issue of SLAMMING. He spoke about anti-
competitive behavior by US West and specified that US West refuses to allow competition by
restricting local loops. He suggested that the tariffs be rewritten.
Ms. Laurie Itkin, Sprint, indicated that the State Act appears to be fair and needs little, if any,
changes. She was concerned that the market in Utah is not fully competitive.
Mr. L. J. Godfrey, AT&T, distributed a news release titled "AT&T and TCI to Merge," and
discussed the benefits of the merger.
Mr. Jeff Fox, Crossroads, expressed concern regarding how much time will pass before
residential competition arrives. He also challenged the concept that telephone rates must raise before
there will be meaningful competition.
Chair Jones recommended that Ms. Ashdown, Mr. Garlitz, Mr. Kelson, Ms. Itkin, and any
others submit suggested legislative solutions to staff.
6. Year 2000 Report - This item was not heard at this meeting but will be heard during the August 19 meeting.
7. Adjournment -
MOTION: The meeting adjourned at 5:08 p.m.