FOR RECORD ONLY

$// Public Notice SWBT:  Public Notice Inviting Comment,  DA 95-1389 //$

$/ 1.41  Informal Requests for Commission Action /$



                                             DA 95-1389

                                             Released:  June 20, 1995

     COMMON CARRIER BUREAU SETS PLEADING SCHEDULE IN SHOW
                    CAUSE PROCEEDING    


     On March 3, 1995, the Commission issued an Order to Show Cause ("Order") 
directed at Southwestern Bell Telephone ("Southwestern"), deriving from a federal-state joint 
audit of affiliate transactions between Southwestern and various nonregulated affiliates. The
Order directed Southwestern to file its response, which the company did on May 2, 1995. 
Meanwhile, on May 1, 1995, MCI Telecommunications Corporation ("MCI") filed a letter
with the Commission announcing its intention to intervene in the Show Cause proceeding. 
The Bureau will allow MCI and other interested persons to participate in the Show Cause
proceeding, subject to certain limitations.

     Notwithstanding that Show Cause proceedings may include enforcement matters, the
Bureau has, in the past, permitted other persons to participate  pursuant to 47 C.F.R.  1.41. 
For example, in a 1991 decision, the Bureau permitted Allnet Communications Services, Inc.
("Allnet") to "intervene" in the Show Cause aspects of investigations relating to Common
Line adjustments reported to National Exchange Carriers Association by certain local
exchange carriers. In that case, the Bureau found that Allnet, as a customer of the local
exchange carriers, had an interest in the investigations and "[its] participation may assist the
Commission in resolving the issues in question."  The Bureau, however, excluded Allnet
from the forfeiture aspects of those proceedings.   After Allnet filed comments, the
Commission resolved the investigations by entering into consent decrees with the carriers. 

     For the same reasons that persuaded the Bureau to allow Allnet's participation in
those earlier proceedings, the Bureau will allow MCI, and all other customers of
Southwestern, to file comments in the Show Cause proceeding.  Such participation is limited
to the Show Cause proceeding and will not be extended to include participation in any
subsequent forfeiture or other penalty proceedings.  Because of the broad policy and
ratemaking issues involved in these proceedings, for purposes of these proceedings, our non-
restricted "permit but disclose" ex parte rules will apply.   These rules generally allow ex
parte presentations in non-restricted proceedings subject to a public disclosure requirement. 
Responses to Commission and staff inquiries that are designed to clarify or adduce evidence,
or to resolve issues, are considered exempt ex parte presentations  pursuant to 47 C.F.R. 
1.1204(b)(7), provided that any new information is disclosed pursuant to the Note to that
section and section 1.1206(a).  In this regard, we note that the Bureau may request settlement
discussions; in the absence of any new information, no disclosure would be required. 

     All comments shall be filed no later than August 1, 1995.  Reply comments shall be
filed no later than September 1, 1995.  Comments should reference file number AAD 95-32. 
Two copies of each pleading should be sent to Thomas J. Beers, Attorney Adviser, FCC,
Common Carrier Bureau, 2000 L Street, N.W., Suite 257, Washington, D.C. 20554, and
one copy of each pleading to the International Transcription Service (ITS), 2100 M Street
N.W., Suite 140, Washington, D.C. 20037. Copies are available for public inspection in the
Accounting and Audits Division public reference room 2000 L Street N.W., Room 812,
Washington, D.C.  Copies are available from ITS.

     For further information, contact Thomas J. Beers at (202) 418-0872.

By the Chief, Common Carrier Bureau