Minn. PUC found Qwest guilty of knowingly and intentionally viola...

Minn. PUC found Qwest guilty of knowingly and intentionally violating federal and state laws by failing to file certain local agreements it made with CLECs, and will consider penalties next month. Agency agreed with last month’s findings by administrative law judge that Qwest knew what it was doing when it didn’t file 25 pacts with CLECs that implemented or modified interconnection agreements. ALJ said agreements in question clearly should have been filed with PUC. Ruling came on complaint by Minn. Dept. of Commerce in Feb., alleging Qwest had made secret preferential agreements to buy off CLEC opposition to its long distance entry and other regulatory initiatives. PUC asked for briefs from parties on potential penalties by Nov. 8 and replies by Nov. 15, with oral hearing Nov. 19. Dept. of Commerce has called for $50 million fine and structural separation of Qwest into independent retail and wholesale business units. Commerce suggested PUC might consider tying penalties to Qwest long distance entry. In PUC meeting, Chmn. Gregory Scott indicated deep disgust with what he called Qwest’s deliberate violations of law, saying its fitness to hold state certificate could be called into question. Qwest said it was disappointed with PUC’s ruling. It said it had adopted internal controls in spring to ensure all agreements were filed for PUC review and approval, and would propose creation of formal monitoring mechanism under PUC auspices to ensure compliance. Qwest said structural separation or revoking its state certificate would be “extraordinary and unwarranted” punishment. AT&T, which has brought unfiled agreement issue up in other Qwest states, applauded PUC decision as “affirming its commitment to the state’s consumers and to honest, forthright phone competition.” Minn. action follows on heels of decision last week by Colo. PUC to open formal investigation on unfiled Qwest-CLEC agreements. That proceeding is being conducted separately from Qwest’s long distance entry, which PUC supports.