LAW OFFICES GOODWIN & GOODWIN, LLP 300 SUMMERS STREET, SUITE 1500 CHARLESTON, WEST VIRGINIA

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1 LAW OFFICES GOODWIN & GOODWIN, LLP 300 SUMMERS STREET, SUITE 1500 CHARLESTON, WEST VIRGINIA P 0. Box 2107 CHARLESTON, WEST VIRGINIA THIRD STREET PARKERSBURG. WEST VIRGINIA (304) TELEPHONE (304) TELECOPIER (304) PO. Box CHURCH STREET RIPLEY. WEST VIRGINIA March 23,2007 Sandra S. Squire Executive Secretary Public Service Commission 201 Brooks Street Charleston, West Virginia Dear Ms. Squire: Re: Case No T-P VEFUZON WEST VIRGINIA INC. In the Matter of the Submission of Revisions to the Performance Assurance Plan Verizon West Virginia Inc. Enclosed for filing with the Commission in the above-referenced proceeding, please find the original and twelve (12) copies of the Joint Stipulation Regarding Revised WV Performance Assurance Plan Between Verizon West Virginia Inc., Consumer Advocate Division, Commission Staff and FiberNet, LLC ( Joint Stipulation ). Active parties of record in Case No T-P are being copied by First Class U. S. mail. As a result of this Joint Stipulation entered into among all parties to this proceeding, Verizon WV will not be filing reply comments with the Commission today, as provided for in the Commission s March 6,2007 Order. If, upon consideration of the Joint Stipulation, the Commission does not intend to enter an Order accepting in full the terms agreed to by the parties in the Joint Stipulation, Verizon WV requests an additional period of five (5) days from notice of the same within which to file its reply comments. Additionally, Verizon WV will file a Stipulated Further Revised WV PAP reflecting the revisions agreed to by all parties in the Joint Stipulation filed today in both a redline version and a plain text version on or before Friday, March 30,2007.

2 GOODWIN & GOODWIN, LLP March 23,2007 Page 2 Please do not hesitate to call me should you have any questions. Enclosure J. David Fenwick (WV State Bar ID No. 6029)

3 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON? CASE NO T-P VERIZON WEST VIRGINIA INC. Petition in the matter of Verizon s submission of New York Performance Assurance Plan revisions. JOINT STIPULATION REGARDING REVISED WV PERFORMANCE ASSURANCE PLAN AMONG VERIZON WEST VIRGINIA INC., CONSUMER ADVOCATE DIVISION, COMMISSION STAFF AND FIBERNET, LLC All parties to this proceeding, Verizon West Virginia Inc. ( Verizon W ), the Consumer Advocate Division ( CAD ), Commission Staff ( Staff ) and FiberNet, LLC ( FiberNet ) (referred to below jointly as the Parties ) do hereby enter into this Joint Stipulation Regarding Revised WV Performance Assurance Plan Among Verizon West Virginia Inc., Consumer Advocate Division, Commission Staff and FiberNet, LLC ( Joint Stipulation ). The Parties submit this Joint Stipulation as a full and complete settlement of their differences regarding Case No T-P and the issues raised therein. In support thereof, the Parties respectfully represent to the Commission as follows: 1. On November 21, 2006, Verizon WV filed proposed revisions to its Performance Assurance Plan for West Virginia ( WV PAP ) conforming to revisions adopted September 25, 2006 by the New York Public Service Commission for the Verizon PAP in that state. Verizon WV s filing was made pursuant to the requirements of the WV PAP and the Commission s January 9, 2003 order in Verizon West Virginia Inc., Case Number T-P.

4 2. The revised New York PAP was proposed by the New York PSC Staff and was adopted, with some modifications, by the New York PSC on September 25, The New York PSC gave this summary of the revised New York PAP: The Proposal seeks to realign the PAP, and its at risk dollars, to reflect Verizon s wholesale market obligations going forward and to implement structural and methodological changes designed to simplify the Plan. The Proposal attempts to make these changes in a penalty neutral manner because Verizon s performance under the Plan over the past few years has, for the most part, been acceptable. 3. In revising the New York PAP, the New York PSC Staff and the New York PSC simplified the PAP and realigned it and its dollars-at-risk to reflect Verizon NY s wholesale market obligations going forward. The New York PSC Staff and the New York PSC retained the New York PAP S basic structure and core elements -the Mode of Entry ( MOE ) provisions and the Critical Measures provisions. However, within the scope of this structure and these core elements, there are many changes that the New York PSC Staff and the New York PSC believe will enhance the effectiveness of the New York PAP, including changes to the services covered by the PAP, the dollars-at- risk, and the methodology used to compute financial incentives. These changes are all reflected in the revised WV PAP filed with the Commission on November 2 1, As part of its filing, Verizon WV requested that the Commission establish a comment period for the proposed revisions to the WV PAP, as well as a proposed implementation schedule. Verizon WV recommended that initial comments should be filed by January 12,2007 and that reply comments should be due by February 13, Petition filed by Bell Atlantic-New York for Approval of a Performance Assurance Plan and Change Control Assurance Plan, filed in C 97-C-0271, Order Amending Performance Assurance Plan, Case No. 99-C-0949, at 7 (9/25/06). 2

5 5. On December 18, 2006, Verizon WV filed a letter with the Commission, advising that Verizon WV had conducted an informational meeting to discuss the proposed revisions to the WV PAP with CAD, Staff and other interested parties and that, pursuant to those discussions, Verizon WV was proposing a revised procedural schedule, whereby initial comments would be due January 22,2007 and reply comments would be due February 22, By Order entered December 22, 2006, the Commission adopted the revised comment deadlines proposed by Verizon WV, granted CAD S petition to intervene and directed that a copy of the Order be served upon all parties that actively participated in Case No T-P 7. Verizon WV, Staff, CAD and FiberNet filed initial comments with the Commission on January 22, Verizon WV s January 22,2007 comments included a further revised version of the WV PAP, which incorporated into the November 21,2006 revised WV PAP certain additional revisions to the New York PAP that had been adopted by the New York PSC on December 15, CAD S January 22,2007 comments recommended certain changes in the proposed WV PAP S allocation of dollars at risk in order to more closely reflect the current WV PAP S relative allocation of dollars at risk among the various categories in both the Mode of Entry and Critical Measures components of the WV PAP. 10. On February 20,2007, Verizon WV, CAD and Staff conducted a conference call to discuss CAD S initial comments in order to determine whether a 3

6 resolution of the differences between Verizon WV and CAD regarding the allocation of dollars-at-risk in the proposed revisions to the WV PAP could be reached. 11. Following this conference call, Verizon WV, CAD and Staff filed a motion requesting that the Commission extend the due date for reply comments on the revised WV PAP until March 2,2007 in order to permit them time to continue their discussions. On February 21,2007, the Commission issued an Order granting this extension of time to file reply comments. 12. As a result of the February 20,2007 conference call and subsequent discussions between Verizon WV and CAD, Verizon WV and CAD reached an agreement regarding changes to the allocation of dollars at risk among the various categories in both the Mode of Entry and Critical Measures components that should be made to the revised WV PAP, in addition to the revisions proposed in Verizon WV s January 22,2007 initial comments. Verizon WV and CAD also agreed to add to the Critical Measures two metrics for Enhanced Extended Links (EELS), which will benefit facilities-based service providers. The Joint Stipulation Regarding Revised WV Performance Assurance Plan Between Verizon West Virginia Inc. and Consumer Advocate Division ( Verizon WV- CAD Stipulation ) was filed with the Commission on March 2, On February 26, 2007, FiberNet filed a letter with the Commission requesting that if Verizon WV and CAD reached a stipulation, FiberNet be allowed a period of at least ten days from the date the stipulation was filed within which to review and offer comments on the stipulation. 4

7 14. On March 1,2007, the Commission entered an Order noting that FiberNet was not then a party to this proceeding and ordering that, if FiberNet wished to attain party status, it must file a petition to intervene no later than March 8, On March 2,2007, FiberNet filed with the Commission its Petition to Intervene in this proceeding. 16. On March 2,2007, Staff filed with the Commission a Motion Requesting An Extension Of The Staff Reply Comment Due Date. That Motion indicated that although it had participated in talks about a stipulation with Verizon WV and CAD, Staff believed it should review all filings, including those by FiberNet, in order to make comprehensive reply comments. Staff requested an extension until March 22,2007 to file its reply comments. 17. On March 6,2007, the Commission entered an Order that granted FiberNet s Motion to Intervene. That Order also provided that no later than March 16, 2007, Staff and FiberNet were to advise the Commission if they joined in the settlement proposed by Verizon WV and CAD. If Staff or FiberNet did not join in the settlement proposed by Verizon WV and CAD, they were to file their concerns, as well as any alternative proposals. Finally, the Order allowed Verizon WV and CAD until March 23, 2007 to file a reply to any comments filed by Staff and/or FiberNet. 18. On March 9,2007, Verizon WV filed a fwther revised WV PAP (the Stipulated Revised WV PAP ) that reflected the revisions agreed to in the Verizon WV- CAD Stipulation. 19. On March 16,2007, FiberNet filed the joint Reply Comments of FiberNet and Staff. In their Reply Comments, FiberNet and Staff indicated they did not object to 5

8 the changes to the WV PAP to the extent that those changes sought to incorporate the New York Public Service Commission s implementation of the FCC s Triennial Review Remand Order. FiberNet and Staff indicated that they did not, however, believe that the implementation of these changes justified a 65% reduction of the total dollars-at-risk under the WV PAP. In this regard, FiberNet and Staff expressed their belief that a reallocation rather than a reduction in the total dollars-at-risk in the WV PAP was the appropriate course of action. 20. FiberNet and Staff also stated that because of the importance of unbundled loops to competition, certain metrics regarding unbundled loops that were proposed for removal from the WV PAP should be maintained, and certain other metrics that were maintained, but weakened, should be preserved in their current state. Under the Loop- Based MOE category, FiberNet and Staff requested that two Billing Completion Notifier ( BCN ) metrics, Metrics OR ( YO Completed Orders with Neither a PCN nor BCN Sent ) and OR-4-17 ( YO Billing Completion Notifiers sent on Time ) not be deleted. FiberNet and Staff also noted that the Stipulated Revised WV PAP would reduce from 20 to 5 the weight assigned to Metric PR ( % Missed Appointment - Verizon Dispatch - UNE Loop New ). FiberNet and Staff indicated they disagreed with this change. 21. FiberNet and Staff also expressed their disagreement with several proposed Loop Critical Measures modifications in the Stipulated Revised WV PAP. FiberNet and Staff noted that Metric MR-5-01 ( % Repeat Reports within 30 Days- UNE Loop ) had been excluded and indicated that they believed this metric should be retained. FiberNet and Staff also expressed their disagreement with elimination of a 6

9 metric regarding EELS, PR ( Percent Open Orders in a Hold Status > 30 Days - UNE - EEL ). With respect to the Other category of Critical Measures, FiberNet and Staff expressed their disagreement with elimination of Metrics OR ( YO of PON Exceptions Resolved Within Three (3) Business Days ) and OR ( % of PON Exceptions Resolved Within Ten (10) Business Days ), as well as Metrics BI-3-04 ( % CLEC Billing Claims Acknowledged within Two (2) Business Days ) and BI-3-05 ( % CLEC Billing Claims Resolved within 28 Calendar Days After Acknowledgment ). 22. On March 21,2007, Verizon WV, Staff and FiberNet participated in a conference call to discuss whether these parties could resolve the differences between the Stipulated Revised WV PAP and the Reply Comments filed by FiberNet and Staff. During the March 2 1,2007 conference call, Verizon WV, Staff and FiberNet came to an agreement upon all issues in this proceeding. 23. Specifically, Verizon WV, Staff and FiberNet agreed that the Stipulated Revised WV PAP should be further revised as follows: In the Loop-Based MOE category, Metric OR ( % Completed Orders with Neither a PCN Nor BCN Sent ) will be added with a weight of 2. In the Loop-Based MOE category, Metric OR ( YO Billing Completion Notifiers Sent On Time ) will be added with a weight of 2. In the Loop-Based MOE category, the weight for Metric PR ( % Missed Appointment - Verizon - Dispatch) will be increased from 5 to 10. In the Critical Measures Specials category, Metric PR ( Percent Open Orders in a Hold Status > 30 Days-EEL ) will be added with a weight of 2. In the Critical Measures Specials category, Metric MR ( % Repeat Reports w/in 30 days - UNE/Resale ) will be added with a weight of 5. In the Critical Measures Other category, Metric OR ( % of PON Exceptions Resolved w/in 3 Bus Days ) will be added with a weight of 5. 7

10 In the Critical Measures Other category, Metric OR ( % of PON Exceptions Resolved wiin 10 Bus Days ) will be added with a weight of 2. In the Critical Measures Other category, Metric BI ( % CLEC Billing Claims Acknowledged within Two Business Days ) will be added with a weight of 2. In the Critical Measures Other category, Metric BI ( % CLEC Billing Claims Resolved w/in 28 Calendar Days after Ack. ) will be added with a weight of These changes to the Stipulated Revised WV PAP are set forth in the attached Exhibit 1, 25. Further, to reflect the addition of metrics to the Loop-Based MOE category, Appendix A, Table A-7: Loop Based MOE, and Appendix A, Table A-5: Minimum/Maximum Performance Scores, will be revised to read as set out in the attached Exhibit CAD has been informed of and agrees to the changes set forth in paragraphs 23 through 25, above, and the attached Exhibits 1 and The Parties acknowledge that other changes will need to be made to the Stipulated Revised WV PAP to reflect the changes agreed to above. 28. The Parties have agreed that the total dollars-at-risk under the revised WV PAP will be $19,836,322 annually, as set out in the attached Exhibit On or before March 30,2007, Verizon WV will file with the Commission a Stipulated Further Revised WV PAP reflecting the revisions to the Stipulated Revised WV PAP agreed to in this Joint Stipulation, including, but not limited to, the revisions set out in the attached Exhibits 1 and The Parties agree to support adoption by the Commission of the Stipulated Further Revised WV PAP, as agreed to in this Joint Stipulation. 8

11 31. If the Stipulated Further Revised WV PAP is approved by the Commission by July 15,2007, Verizon WV proposes to implement the Stipulated Further Revised WV PAP for the November 2007 data month, the performance report for which will be issued at the end of December If the Stipulated Further Revised WV PAP is not approved by July 15,2007, its implementation will be delayed until after the November 2007 data month. 32. If the Commission orders modifications to the Stipulated Further Revised WV PAP that require systems or process changes in addition to those already contemplated by Verizon WV for implementing the Stipulated Further Revised WV PAP, its implementation may be delayed until after the November 2007 data month. If Verizon WV is not able to implement the Stipulated Further Revised WV PAP for the November 2007 data month, Verizon WV will notify the Commission as to when the Stipulated Further Revised WV PAP will be implemented. 33. After a final revised WV PAP is adopted by the Commission, each Party shall have the right to propose future changes to the final revised WV PAP in accordance with the procedures set out in the final revised WV PAP and applicable Commission rules and orders. 34. If the Commission fails to adopt a revised WV PAP within one year of the date of this Joint Stipulation or if the Commission adopts a revised WV PAP that differs from the Stipulated Further Revised WV PAP, any Party may elect to withdraw, in whole or in part, from this Joint Stipulation, upon written notice to the Commission and the other Parties. In that event, the Parties shall have all legal rights that they may have waived by entering into this Joint Stipulation and the Joint Stipulation between Verizon 9

12 WV and CAD dated March 2,2007, including, but not limited to, the right to seek approval of their original proposals for the WV PAP. 35. The Parties believe that adoption of the Stipulated Further Revised WV PAP is in the public interest because it: (a) Will realign the current WV PAP, and its financial incentives, to reflect Verizon's wholesale market obligations going forward and will implement structural and methodological changes designed to simplify the WV PAP; (b) Deletes metrics for services that Verizon WV is no longer required to provide pursuant to 47 U.S.C and retains or adds metrics that should be significant to competitive local exchange carriers and others; (c) Modifies the total dollars-at-risk and the allocation of these dollars-at-risk to reflect current and anticipated conditions in West Virginia; (d) Contains changes in computational methodologies that will simplify the operation of the WV PAP and reporting under it; (e) Contains additional metrics requested by CAD, Staff and FiberNet that they believe will better protect CLECs; and (f) Continues to enable the Commission to continue to modify the WV PAP in the future, to assure that it serves the needs of West Virginia. For the reasons explained above, the Parties request that the Commission enter an Order adopting the Stipulated Further Revised WV PAP as the final approved WV PAP in this proceeding. Stipulated to the 6)J.,d day of March, 2007 by: 10

13 Goodwin & Goodwin, LLP 300 Summers Street - Suite 1500 Charleston, WV (T) (F) Counsel for Verizon West Virginia Inc. * Patrick W. Pearlman (WV Bar No. 5755) Consumer Advocate Division Public Service Commission of WV 723 Kanawha Blvd., E. Union Building, 7fh Floor Charleston, WV (T) (F) Commission StafrAttorney Public Service Commission of West Virginia P.O. Box 812 Charleston, WV (T) (F)

14 Director of Regulatory Affairs FiberNet,LLC 21 1 Leon Sullivan Way Charleston, WV Counsel for FiberNet, LLC 12

15 EXHIBIT 1

16 Stipulated Further Revised WV PAP Exhibit 1 Page 1 of 4 Verizon West Virginia $ Millions -Annual Dollars at Risk Mode of Entry Resale UNE Loop Trunks UNE Platform DSL MOE - Total $ - Base MOE -Total $ - Doubling Critical Measures Resale UNE Loop Trunks Specials Other UNE Platform DSL Critical Measures - Total $ Total at Risk Stipulated Plan $ I % $244,996 $3,919,942 $761,575 $5,031,834 $1,387,154 $1,523,150 $1,332,756 Exhibit 1.XIS Summary

17 Exhibit 1 Page 2 of 4 I- b c 5 LL u) E In 8

18 Exhibit 1 Page 3 of4

19 Stipulated Further Revised!JW PAP Exhibit 1 Page 4 of 4 Loop-Based Mode of Entry West Virginia Exhibit 1.XIS LOOD MOE

20 EXHIBIT 2

21 Exhibit 2 Table A-5: MinimumMaximum Performance Scores Loop Based Resale POTS Interconnection Trunks I Minimum 1 Maximum I YO Market Adj % % oooo 10% Monthly Maximum Amount: $326,662 Table A-7: Loop Based MOE Minimum/Midpoint/Maximum I Score Range I Percentages 1 Amounts Upper Threshold: < And 2 I I 0.00% $0 One-quarter: Midpoint: Lower Threshold:

22 CERTIFICATE OF SERVICE I, David Fenwick, Counsel for Defendant Verizon West Virginia Inc., do hereby certify that I have served the foregoing Joint Stipulation Regarding Revised WV Performance Assurance Plan Between Verizon West Virginia Inc., Consumer Advocate Division, Commission Staff and FiberNet, LLC upon the parties of record in Case No T-P, via First Class U.S Mail, this 23rd day of March, 2007, addressed as follows: Thomas N. Hanna, Esq. Sprint Communications Co., L.P. P. 0. Box 3967 Charleston, WV Patrick Pearlman, Esq. Consumer Advocate Division Public Service Commission Union Building - 7* Floor Charleston, WV Robert R. Rodecker, Esq. AT&T Communications of WV, Inc. P. 0. Box 3713 Charleston, WV Steven Hamula, Esq. FiberNet, LLC 21 1 Leon Sullivan Way Charleston, WV H. Russell bin, III Stratuswave Communications Mull Center - Suite Main Street Wheeling, WV Mark A. Keffer, Esq. AT&T Communications of WV, Inc Chain Bridge Road Oakton, VA James V. Kelsh, Esq. North County Communications 300 Summers Street - Suite 1230 Charleston, WV Mark E. Kauffelt, Esq. Kauffelt & Kauffelt Gateway Telecom d/b/a Stratuswave P. 0. Box 3082 Charleston, WV