U S WEST Applauds Public Right-of-Way Order Issued by the Minnesota Public Utilities Commission

Business Wire, July 26, 1996

MINNEAPOLIS--(BUSINESS WIRE)--July 26, 1996--U S WEST Communications said it was pleased with the order released by the Minnesota Public Utilities Commission in which the Commission assesses the scope of its authority over the public right-of-way.

In its order, the Commission declared that Minnesota law (Chapter 237) gives it "centralized, exclusive control over the construction of telephone lines, exchanges, and service delivery."

The Commission further declared its commitment to "nurturing competition throughout the state" and said "all potential market entrants must have ready and effective access to the public right-of-way on economical and non-discriminatory terms." The Commission found that competitors "cannot face construction permit fees exceeding the costs they impose" nor a "hodgepodge of conflicting local requirements."

U S WEST Attorney Victoria Aguilar said, "We agree with the Commission's reading of Minnesota law. The law clearly delegates to the Commission exclusive jurisdiction to substantively regulate the public right-of-way. The Commission's order will provide for statewide uniformity which will benefit the telecommunications industry at large and Minnesota consumers."

Aguilar also stated, "U S WEST does not dispute the authority of cities to exercise control over the public right-of-way given to them by law. However, Minnesota law limits the authority of municipalities to the "location of poles and wires...so as to prevent any interference with the safe and convenient use of the streets."

U S WEST said that throughout its 100-year history of doing business in Minnesota, the company has entered into countless permit agreements with cities without issue. However, in several situations over the past few years, permit ordinances have included provisions that exceed the lawful exercise of municipal police powers and encroach upon the area of authority delegated to the Commission by the Legislature under Chapter 237.

"In effect, adhering to certain municipal ordinances would put us in violation of Chapter 237 of Minnesota statutes which govern telecommunications providers, including U S WEST," said Aguilar. "As such, we filed a petition with the Commission on February 23 to seek Commission clarification of its jurisdiction over public right-of-way."

"On a parallel track, we also filed a complaint against the City of Redwood Falls seeking to bar enforcement of an ordinance that contains provisions which infringe on the authority of the Commission," Aguilar explained. "We were disappointed that the court dismissed the case. Now that we have the Commission's assessment that it has control over the terms and conditions of the right-of-way, we will move ahead with consideration of an appeal to a higher court."

The following parties supported U S WEST's petition urging action by the Commission: the Minnesota Independent Coalition, Frontier, GTE, AT&T, the Minnesota Telephone Association, Metropolitan Fiber Systems of Minneapolis/St. Paul (MFS), the Minnesota Business Utility Council, and the Minnesota Cable Communications Association.

U S WEST Communications Group (NYSE: USW) provides telecommunications services to more than 25 million customers in 14 western and midwestern states. The company is one of two major groups that make up U S WEST, a company in the connections business, helping customers share information, entertainment and communications services in local markets worldwide. U S WEST's other major group U S WEST Media Group, is involved in domestic and international cable and telephony, wireless communications, and directory and information services.

CONTACT: U S West Communications

Mary Hisley, 612/663-5992