3. History of EAS Arrangements between Pacific and Roseville

Service territories of local telephone companies are divided into local exchanges. Each local exchange has a point designated as a rate center, which is used to measure the distance of calls for billing purposes. If the rate centers for two local exchanges are within a prescribed number of miles of one another, or the Commission has determined that calls between two exchanges should be rated as local, all calls between those exchanges are local calls. Otherwise, they are toll calls. In Roseville's case, EAS extends the local calling area of its exchanges into Pacific's exchanges.

Roseville's EAS arrangement with Pacific goes back many years. On April 9, 1958, Case No. 6087 was filed by a group of Roseville's subscribers residing in the Citrus Heights area seeking EAS between that exchange and Pacific's Sacramento, Folsom, Rio Linda and Fair Oaks exchanges. Subsequently, the Commission instituted an investigation (Case No. 6339) to determine whether EAS was in the public interest. In 1961, the Commission issued D. 62949 which concluded that the public interest required the introduction of EAS between Roseville's Citrus Heights district and Pacific's Fair Oaks, Rio Linda, and Folsom exchanges as well as the North Sacramento area of Pacific's Sacramento exchange. Roseville and Pacific instituted this EAS service on December 15, 1963.

The Commission held further hearings with respect to EAS issues and the intercompany settlements related to EAS and in February 1963, ordered Pacific and Roseville to attempt to negotiate an EAS settlement agreement. On August 2, 1963, Roseville filed Application (A.) 45640 alleging that Roseville and Pacific had been unsuccessful in their negotiations and asking the Commission to prescribe and impose a method of settlement and division of revenues. In D. 67172, the Commission adopted Roseville's proposed form of Extended Service Traffic Agreement as the basis for intercarrier compensation for the exchange of EAS traffic.

ZUM replaced EAS as the term used to describe these routes when ZUM was implemented in much of Sacramento County in 1984. In D. 84-06-111, the Commission authorized Roseville to continue to recover the costs of implementing ZUM with Pacific through the EAS Settlement Agreement.

ZUM calling areas are divided into zones, which form concentric circles around the point from which a customer's call is rated. Each call goes over a route between the caller's serving central office and the called party's serving central office. Rate centers generally coincide with central offices from which the mileage of call routes is determined. As originally established, calls from 0-8 miles were ZUM Zone 1 local calls, calls from 8-12 miles were ZUM Zone 2 calls, and calls from 13 to 16 miles were ZUM Zone 3 calls.

In 1989, the Commission ordered the expansion of the local calling area for all LECs to include all routes of 0-12 miles, which meant that ZUM Zone 2 was subsumed into the local calling area. According to Pacific this resulted in the conversion to local of all EAS and ZUM routes between Roseville and Pacific, with the exception of the Citrus Heights to Lincoln and Citrus Heights to Pleasant Grove ZUM Zone 3 routes. In 1996, the Commission converted the Citrus Heights to Lincoln and Citrus Heights to Pleasant Grove routes to local. (D.96-12-074 [70 CPUC2d 88, 150].) Thus, states Pacific, all of the inter-company traffic covered under the current EAS settlement agreement is now classified as local calling.