Mich. PSC approved enforcement mechanism to ensure continued Amer...
Mich. PSC approved enforcement mechanism to ensure continued Ameritech compliance with wholesale service performance requirements after it enters interLATA long distance market. Action would conform to FCC findings in previous Sec. 271 cases that effective remedy plan for performance…
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failures was essential to Sec. 271 compliance. PSC in Doc. U-11830 went with Ameritech proposal for performance assurance plan modeled on successful SBC program in Tex., but made some modifications. Agency rejected CLEC-sponsored alternative that included absolute parity floor not tied to Ameritech retail service levels. PSC said it would address CLEC concerns that retail service quality would decline to wholesale level through general service quality enforcement. Maximum annual penalty in fines and rebates is capped at 36% of Mich. gross revenue (about $330 million). PSC rejected variety of penalty exclusions Ameritech sought for conditions beyond its control, waiving penalty only if performance failure was caused by CLEC. PSC also rejected idea of basing penalty escalations on type of failure within each performance area, instead opting for escalation based on number of failures. It said formula in Ameritech’s plan for calculating penalty amounts owed might not produce large enough performance incentive. Rather than change formula, PSC simply said formula result should be doubled. It also said rebates to CLECs should be paid as direct checks, not bill credits.