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WASHINGTON, D.C. 20554`<(#BDA 982261 yx\ dddy #G\  PG;P#News media information 202/4180500 FaxOnDemand 202/4182830 Internet: http://www.fcc.gov ftp.fcc.gov #Xj\  PG;XP#`(#6 Released: November 6, 1998  "PERMITBUTDISCLOSE" EX PARTE PROCEDURES ESTABLISHED FOR FORMAL COMPLAINT FILED BY THE VIRGINIA CORPORATION COMMISSION AGAINST MCI TELECOMMUNICATIONS CORPORATION (FILE NO. E9901), AND CONTINUED BOTH FOR APRIL 3, 1998 MCI PETITION FOR DECLARATORY RULING REGARDING LAWFULNESS OF ITS UNIVERSAL SERVICE CHARGE METHODOLOGY UNDER COMMISSION ORDERS AND THE ACT (DOCKET NO. 9645), AND JULY 17, 1998 REFERRAL OF CERTAIN ISSUES TO THE FEDERALSTATE JOINT BOARD REGARDING UNIVERSAL SERVICE SUPPORT MECHANISMS PURSUANT TO SECTION 254 OF THE ACT (DOCKET NO. 9645)  * The Commonwealth of Virginia State Corporation Commission (VCC) filed a formal complaint against MCI Telecommunications Corporation (MCI) on October 7, 1998, File No. E9901. The complaint alleges, inter alia, that MCI violated Section 2(b) of the Communications Act (the Act), 47 U.S.C.  152(b), because, according to VCC, MCI determined and recovered its Universal Service support obligations and presubscribed interexchange carrier charges (PICC) in Virginia based on intrastate, as well as interstate, calling and revenues. The complaint also alleges that MCI failed to adequately disclose the foregoing practice in its Federally filed tariffs, FCC Tariff  C1.0612 and C1.0613, in violation of Section 203(a) of the Act, 47 U.S.C.  203(a). The formal complaint proceeding currently is, and ordinarily would remain, restricted for purposes of the Commission's ex parte rules. See 47 C.F.R.  1.1208. Upon review, it appears that the principal issues raised in VCC's formal complaint are similar to certain issues raised in two other pending Commission proceedings. First, on April 3, 1998, MCI filed a petition for declaratory ruling (MCI Petition) regarding the lawfulness of its Federal Universal Service tariff and the lawfulness of MCI's methodology for determining and recovering its Universal Service obligations. The proceeding initiated by the MCI Petition is "permitbutdisclose" for purposes of the Commission's ex parte rules. See 47 C.F.R.  1.1206(a)(3). Second, on July 17, 1998, the Commission issued an order referring to the FederalState Joint Board on Universal Service various issues concerning the Universal Service Order,X0ÍX0Íw#Xj\  PG;XP##X\  PG;P# Í FederalState Joint Board on Universal Service, Report and Order, CC Docket No. 9645, 12 FCC Rcd 8776, 919297 (1997) (Universal Service Order), petitions for recon. pending (subsequent history omitted). w including how providers should recover universal service contributions through rates, surcharges, or other means. In addition, the Commission referred therein certain access charge issues arising out of the Commission's Access Reform Order.X0ÍX0Í#Xj\  PG;XP##X\  P G;P# ÍAccess Charge Reform, Price Cap Performance Review for Local Exchange Carriers, Transport Rate Structure and Pricing, and End User Common Line Charges, First Report and Order, CC Docket Nos. 96262, 941, 91213, 9572, 12 FCC Rcd 15982, 1600406 (1997) (Access Reform Order), petitions for recon. pending (subsequent history omitted). See FederalState Joint Board on Universal Service, Order and Order on Reconsideration, CC Docket 9645, FCC No. 98160, 1998 WL 399982 (rel. July 17, 1998) (Joint Board Referral). The Joint Board Referral proceeding is "permitbutdisclose" for purposes of the Commission's ex parte rules. See 47 C.F.R. 1.1206(a)(8). VCC's formal complaint, the MCI Petition, and the Joint Board Referral all appear to raise, or have a strong potential for raising, some of the same issues concerning the lawfulness under the Act, as construed in the Universal Service Order and the Access Reform Order, of the method by which MCI determined and recovered its Universal Service support obligations and PICC. As a result, we must determine whether these three proceedings should be governed by the same set of ex parte rules.  Ordinarily, the VCC formal complaint proceeding would be "restricted" under the Commission's ex parte rules. See 47 C.F.R. 1.1208. If the VCC formal complaint proceeding were so restricted, however, then the MCI Petition and the Joint Board Referral proceedings would become restricted, as well, with respect to the issues common to the VCC formal complaint proceeding. We do not wish to limit the staff's ability to discuss and obtain information needed to resolve the issues in the MCI Petition and Joint Board Referral proceedings during the pendency of the VCC formal complaint proceeding. Moreover, the "permitbutdisclose" requirements preserve fairness and impartiality. We prefer, therefore, to make the VCC formal complaint proceeding more flexible than to make the two other proceedings less so. Accordingly, on a prospective basis, we shall treat all three proceedings as "permitbutdisclose" for ex parte purposes, to the extent that they address common issues. This effectively converts the formal complaint proceeding from the restricted to the "permitbutdisclose" procedures set forth in Section 1.1206. Under the modified procedures adopted today, ex parte presentations on the lawfulness under the Act of MCI's method of determining and recovering Universal Service support obligations and PICC in Virginia from January 1, 1998 to July 31, 1998 will be permissible (except during the Sunshine Agenda prohibition, if applicable) in all three proceedings. If such a presentation regarding those issues is made in one proceeding, the required disclosure of such presentation under Section 1.1206 of the Commission's rules should be made in all three proceedings. To do so, two copies of any written ex parte presentation, or, if oral, an original and one copy of a memorandum that summarizes the oral ex parte presentation, must be filed with the Secretary for each of the three proceedings. A copy must also be provided to the person or persons to whom the oral communication was made.   These memoranda must contain a summary of the substance of the ex parte presentation and not merely a listing of the subjects discussed. All such filings should be clearly captioned as ex parte presentations and should reference the appropriate file number of each proceeding. Questions relating to the formal complaint may be directed to Gerald Chakerian of the Enforcement Division, Common Carrier Bureau, at (202) 4180960. The formal complaint materials are available for inspection and copying in the Enforcement Division, Formal Complaints and Investigations Branch, Room 6120, 2025 M Street, N.W., Washington, DC 20554. Questions relating to MCI Petition and Joint Board Referral proceedings may be directed to Melissa Waksman of the Accounting Policy Division, Common Carrier Bureau, at (202) 4187400. Eligible documents in the latter proceedings will be available for public inspection during regular business hours in the FCC Reference Center, Room 239, 1919 M Street, N.W., Washington, D.C. 20554. Copies can also be obtained from ITS at 2100 M Street, N.W., Suite 140, Washington, D.C. 20037, or by calling (202) 8573800. (FCC HHHH