Casper Star-Tribune from Casper, Wyoming • 4

A4 Casper Star-Tribune Sunday, February 14, 1999 Su In Brief Lack of competition frustrates PSC, firms Legislature Rural phone subsidy bill still controversial tions Industry deregulation, preceding similar federal action by a year, It could pay a price for breaking new ground. PSC Chairman Steve Ellen-becker said if the view of the stale law held by TCT West and Tri-County prevails, "We'll effectively become the only state In the nation that Is not setting local service prices once they are above cost." If that happens, he explained, there is no incentive for another company to enter an existing provider's market. "I still have to believe in my heart that It's not Intended that we have deregulated monopolies," Ellenbecker said. "I think the intent of the Legislature is to have a model Iramework for a competitive market." Overall, he added, Wyoming has "one ol the most pro-competitive statutes in the country." But Ellenbecker said the broad consensus among regulators throughout the nation and experts who follow the telecommunications industry is that local competition "Is coming much slower than we thought would happen" under the federal deregulation act of 1996. Nationally, he said, less than 5 percent of business customers have access to competitive local phone companies.

That figure drops to less than 1 percent for residential customers. Ellenbecker said the problem Is compounded in Wyoming because the little competition that exists nationally is in urban markets that are low cost for companies to enter. Typically competitors entering a market try to "cherry pick," or take away an existing carrier's business customers. Ellenbecker said because residential customers In rural areas are the most expensive to serve, Wyoming will be among the last to see true competition. He noted and MCI, which Initially expressed much Interest In entering the Wyoming market through resale, have abandoned those plans.

A notable exception has been McLeodUSA, which is successfully reselling US West services In eight Wyoming cities and plans to eventually become a facilities-based competitor. Randy Almaguer, Wyoming-Colorado sales manager for McLeodUSA, said his company's strategy for increasing its share of the market is to build partnerships that will allow cus By KERRY DRAKE Star-Tribune capital bureau CHEYENNE Nearly four years after the Legislature passed a major telecommunications deregulation act, state regulators and telephone companies are both frustrated with the lack of progress that has been made in bringing competition to Wyoming. Lawmakers hoped deregulation and an open market would attract more companies to the state, resulting In lower prices and an improved range and quality of services. But most telecommunication companies have stayed away, and some of the Independents operating in Wyoming are testing the authority of the Public Service Commission to approve their prices even though competition does not exist. After the PSC modified the price plan of two affiliated firms TCT West and Tri-County Telephone they simply notified the commission that new prices were going into effect in the Big Horn Basin in 30 days.

Fearful that US West which controls 80 percent of the local phone market in Wyoming -might use the same strategy after the PSC rejected Its second consecutive price plan, the commission asked the Legislature to clarify the 1995 law. But instead of affirming that it intended for the PSC to still regulate the price of basic telephone service in areas that are served by a monopoly, the House rejected House Bill 30 by a vote of 50-10. Attorneys for the PSC have advised the commissioners that TCT West and Tri-County Telephone did not properly follow state law when they bypassed the agency and set their own prices. The PSC will hear arguments on the issue next month. The companies, meanwhile, have asked a state district court to order the PSC to make Universal Service Funds available Immediately to offset the high cost of providing phone service, which is more than $500 per month in the most remote areas.

Bruce Asay, attorney for the two Independent firms, said they are losing an estimated $40,000 per month without the USF support. Deregulated monopolies While Wyoming was at the forefront of the telecommunica tomers to receive one bill for both phone service and other utilities. 'A chance to work' Jacque Martin, media relations manager for US West In Wyoming, said her company opposed HB 30 because "we want to give (the 1995 state law) a chance to work." Martin noted that even though the PSC has rejected its price plan twice, the company chose to ask the commission for a rehearing Instead of following the lead of Tri-County and TCT West. But she added that a 30-day notice of Intent to change rates would still give the PSC the option to immediately file a price complaint. "Somehow we've got to speed up the process where telecommunications companies can react to the market," Martin said.

That's a minute-by-minute, day-by-day type process. With our (price) plan it's been a three-year process." But Ellenbecker said if the PSC is forced to file a price complaint, the burden of proof would shift from the company to the commission. "The company wouldn't have to present a case," he said. "It would be up to us to prove that the rates are unreasonable." While the number of long-distance companies that serve Wyoming have skyrocketed from 24 in 1995 to 312, US West's major complaint has consistently been that true competition will not exist until it Is also allowed to offer Interstate long-distance. Mike Ceballos, US West's vice president for Wyoming, said the company has lost 30 percent of its in-state long-distance market since 1995.

"If you put restrictions on what all of these companies can and cannot do, there's no way they can be competitive because they're locked into providing one service," Martin said. They need to create a level playing ground." She said deregulation has forced US West to make agreements with Its competitors so they can use the company's facilities. The rival firms then become US West customers. That sounds good, except by regulation we have to go in and put In tremendous amounts of infrastructure that they can use when we could have invested some place else," Martin said. By KERRY DRAKE Star-Tribune capital bureau CHEYENNE Speaker after speaker testified Tuesday before a Senate committee In favor of a bill that revises how the state's Universal Service Fund for high-cost rural phone service would be administered.

But seldom has a bill with such universal support been the subject of so much controversy. The parties spent the next two days working nonstop to reach a compromise on one critical aspect of House Bill 66, only to fall short of an agreement. "I think this is an essential bill," said Sen. Cale Case, R-Lander, who tried to broker the deal between the Public Service Commission and industry. The PSC wanted an amendment that would require a company to have its prices for noncompetitive, basic telephone service authorized by the commission before it is eligible for USF support.

The Senate Corporations, Elections and Political Subdivisions Committee rejected the change by a vote of 3-2, but the amendment is likely to return when HB 66 hits the Senate floor this week. So will a raft of other amendments as various interests try to tweak the measure to their benefit. All parties agree that monies from both the state and federal USFs are vital to keep down the high cost of providing basic phone service in the state's most remote areas. The bill would set benchmarks of $25 for basic residential phone service and $35 for business service. The USF to which every phone customer in the state contributes at a rate of 3 percent of their monthly bill is used to subsidize rates above the bench marks.

Case suggested the benchmarks be set higher to keep Irom depleting the state USF. Phone companies serving the Big Horn Basin have already hiked prices to more than $500 per month in some rural areas in anticipation of receiving USF support. PSC Chairman Steve Ellenbecker said lie is worried that il the courts ultimately determine that companies offering noncompetitive services can bypass the commission and set their own rates, the USF would be quickly drained. Mike Ceballos, US West vice president for Wyoming, objected to the PSC amendment because it could severely Impact liis company's ability to draw USF funds. The bill has a provision that requires the federal USF be used before the state fund is tapped.

US West receives about $3.2 million per year from the federal fund, but guidelines for its use are still being developed by the Federal Communications Commission. Ceballos noted the PSC has rejected US West's past two price plans, and said if the situation continues it is vital for the company to retain the option of filing a 30-day notice of intent to implement new rates. Ceballos said passage of the PSC's amendment would be "a step backward" toward regulation. "If this is really the critical issue, allow us to work (on it) during the interim," lie said. But the chairman of the committee, Sen.

Carroll Miller, R-Shell, said the USF bill needed to move forward. Miller said the parties have been meeting (or a long time to resolve Issues "but there always seems to be a block." mm sjn aid wwe rf rs Appropriations passes House CHEYENNE-Trie million appropriations bill to run the Legislature for 18 months passed the House on Thursday 55-5 without any money In It lor constituents services. The Senate version of Senate file Included a $200 per month constituent services allowance lor legislators Irom March l'JW through June 2(X)0 at a cost ol $288,000. The purpose was to defray the expenses of legislators to travel to meetings and otherwise contact constituents In their districts. The House Rules Committee took out the allowance on grounds It did not look gtxxi for legislators to Increase spending on themselves while facing a budget deficit and possible tax Increase next year.

The House voted down attempts to restore the allowance, Including a compromise $100 per month. The bill now goes back to the Senate for a vote on the House changes. If the Senate doesn't agree with the House version, the bill will be referred to a joint Senate-I louse conference committee. Resolution honors Sullivan CHEYENNE Former Gov. Mike Sullivan will receive a legislative resolution honoring him lor his appointment as ambassador to Ireland.

The resolution said that Wyoming citizens "take great pride In a native son and former governor accepting the challenge and responsibility In such a position." The appointment "demonstrates the extraordinary confidence" the people in the U.S. have in Sullivan, the resolution said. Rep. Deborah Fleming, lCasper, said virtually all 90 legislators signed the resolution. Business worries about school costs CHEYENNE The Association Business Coalition say that increased spending for sch(xls are certain to bring major tax increases next year.

The coalition, which includes 12 major business trade organizations, said In a news release that the state may be forced to raise the state sales tax by one percent; property taxes as much as 8 mills or other taxes to begin to offset a projected deficit of up to $150 million. Money for public schools is up by more than $100 million in three years when student enrollments are declining Non-education programs are at risk of substantial cuts, the release said, and local governments risk losing substantial portions of state-shared revenue. The coalition is urging citizens to contact their legislators and insist on restraint to minimum future tax Increases. The coalition includes the Wyoming Auto Dealers Association; the Contractors Association, the Farm Bureau Federation, Lodging and Restaurant Association, Retail Merchant's association. Stock Growers Ass(xiation.

Wyoming Taxpayers Association. Trucking Assrx iation, Wool Growers. National Federation of Independent Business, the Camplx'll County CharmVr of Commerce and the Rx ky Mountain Farmers Union. Senate OK's study of fossil tax CHF.YKNNF. The Senate flproved a measure, on Thursday, to study whether to protecl or tax fossils that are Ix'ing shix-d (nit o( state.

Beautiful exhilits of Wyoming tossils are IxHng shown in Tokyo. Iit Is unknown how they iided up there, said -n Mark Hints. IX irmi River cosixmsor "Fossils are one of our very rcvxirces." lie svikI "We krxm tix-y're leavim; the state Horse tripping bill dies Time to review State senator Tex Boggs looks Senate in Cheyenne. Passed bills CHEYENNE (API A list of how bills fared or tird and mal reading in the Legislature on Friday HOUSE Sf 5 4 guest ranches to dispose alcoTol at more than one kxaVjr or Miches Passed 508 Sf 6 Auows secretary state to Store ffo'ds other locations Pasvd SFH Requires Department of Empioyme- io submit uched state pvr COrr (l anr. with 'pdrval Art Passed 58 0 12 'rr-duces companies to pa irterest or pijticies date dea'h Passed 580 A'kjws state tfr -s to at.

i epf credt cards to pay ta.es pen -s and asses.vTe-s Ps'sfd By KERRY DRAKE Star-Tribune capital bureau CHEYENNE -For the second time a bill to outlaw horse tripping in Wyoming has died in the Legislature. The Senate Agriculture, Public Lands and Water Resources Committee voted 3-1 against House Bill 79 late Thursday, killing the measure after it had been approved by the House. Horse tripping is an event in Mexican rodeos that involves hazing a horse while either on foot or horseback and causing the animal to trip. Points are rewarded based upon the spectacular nature of the fall. In 1995 a Mexican rodeo that included horse tripping was scheduled to appear at Laramie County Community College, but public opposition to the event led its cancellation.

A bill to outlaw horse tripping failed by two votes in the (louse in 1997, when opponents claimed it was an attempt to eventually ban traditional West- HB55 Requires daily use or overnighl camping fees and raises nonresident fees at spec ified state partes. Passed 77 8 HB1 16 Enhances penalty for distributing meth.imprietflinine to children. Passed 29 1 HB123 Sets up trust fund from tobacco settlement money Passed 28 2 H0 1 24 lempts certain medn al and dental equipment from sak tan Passed 19 10 HB1 30 Fiemrrts transportable hfirrte frames from motor vehw registration requirements Passed 291 HB1 Provides appropriation $244,000 for state parvs cap-tal roost rurtior pro" fs Passed 75 4 ern rodeo In the slate. House members this year, however, approved the bill 38-22. The sponsors of 71 Rep.

Tony Ross, R-Cheyenne, and Sen. Mike Massie, I) Laramie, lined up support from the Wyoming Rodeo Association, Wyoming Veterinary Medicine Association, and the Wyoming Livestock Board. State Veterinarian Jim Logan, who endorsed the bill when he testified before the House Agriculture Committee, said he has seen horse tripping occur at several non-sanctioned rodeos in Wyoming. Logan said the practice leads to many severe injuries and often the destruction of the animals used. "There's widespread support for this bill.

It's very disappointing," Massie said. "I don't know what has to happen before we pass this type of animal cruelty law in this state. The o-position to it confounds inc." Bryce Recce, director of the Wyoming Wool Growers Association, told the Senate panel the bill could later be amended to outlaw calf roping, steer roping and other rodeo events. Bui Ross maintained I IB 79 was written to spe i(i( ally prohibit the intentional act of triv ping a horse "lor entertainment or sxrt." He said il anyone tried to amend the bill to ban rodeo events "I would be the first one to oppose it Only Sen Bill Vasey. I Rawlins.

siipwirted the bill in committee. It was optsed by the chairman. Sen Jerry fieis. Worlarid; Sen Ri Cathcart. I) Carpenter; and Sen Bill liar-ton.

I'pton The fifth meinlMT ol the panel, Sen Curt Meier, lit was not at the meeting over his notes during a recent 4gl0. Sf33 Authorizes state Employment Department to set rules to conform wth federal worVer training act. Passed 57 1 Sf42 Redistributes bighorn sheep and moose hunting licenses to include individuals not at top of waiting list. Passed 34 24 Sf 52 Allows public entities to ice'S owned by other ager -s P-issed t6 2 Sf 3 records rf driver license suspension's to be enpurged a pe'sor turns 21 it a 'ee is paid Passed ST 63 Allows state to invest tn development bonds Passed 4S10 Sff5 Create cnmm'svor to dvr-; Por educes coKting DAN ClPEDAtr Triftun session in the Wyoming State state business electronically Passed 580. SM28 Oirects state attorney general to intervene in lawsuits which threaten Second Amendment right of residents Passed 54 3 SENATE HB9 Requires payment of court costs and attorney fees 'of damage caused by railroads Passed 3O-0 HB 5 Modifies fees paid by corporations to secretary of state.

Hi'ij 15 15. H6J6 Amends procedure for foCeitu'e rf limited liabii'ty companies organization Passed 291 HC40 Authonr-s tws to in add vmai activities Passed Hfs4 Authorizes statewide ban tiari-ng passed 235.