4. The Settlement Transition Agreement

In its investigation into existing settlement payments from Pacific to other LECs and their effect on the implementation of NRF, the Commission in D.91-07-044 decided to implement a phase-out of toll support payments from Pacific to the mid-sized LECs over a transition period ending in 1997.

Effective January 1, 1992, Roseville and Pacific entered into a Settlement Transition Agreement (STA) which provided for replacement of existing settlement arrangements, including EAS, with a different method of mutual compensation for interconnected telephone traffic. This transitional settlement agreement provided that Pacific pay Roseville $11.5 million per year for EAS. After July 1996, Pacific and Roseville were to mutually agree to continue the EAS payment or the parties could submit the EAS arrangement to the Commission for a decision.