FOR RECORD ONLY

$// Public Notice Inviting Comment, DA 95-1390 //$

$/ 1.41 Informal Requests for Commission Action /$


                                             DA 95-1390

                                             Releaased:  June 20, 1995

     COMMISSION SETS PLEADING SCHEDULE IN SHOW CAUSE
                         PROCEEDINGS


     On March 3, 1995, the Commission issued Orders to Show Cause ("Orders") 
directed at various Bell Operating Companies ("BOCs"), deriving from an independent audit
of carrier-reported adjustments to the Common Line revenue pool for 1988 and the first
quarter of 1989. These Orders directed the BOCs to file responses, which the companies 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 proceedings.  Responding to this letter, Southwestern Bell Telephone  filed a letter,
on May 11, 1995, objecting to MCI's participation and stating that MCI is not a party and
has not filed a formal petition to intervene.  The Bureau will allow MCI and other interested
persons to participate in the Show Cause proceedings, 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 earlier enforcement actions stemming from facts related to the facts at issue
here, the Bureau permitted Allnet Communications Services, Inc. ("Allnet") to "intervene" in
the Show Cause aspects of those investigations. 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 the BOCs
that are the subjects of these Orders, to file comments in the Show Cause proceedings.  Such
participation is limited to the Show Cause proceedings 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.  See 47
C.F.R. 1.1200(a) and 1.1206.  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 11, 1995.  Reply comments shall be
filed no later than September 11, 1995.  Comments should reference the appropriate AAD
file number(s) as set out in the original Orders to Show Cause.  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, or John C.K.
Hays at (202) 418-0875.

By the Chief, Common Carrier Bureau