The state Utilities and Transportation Commission decided this past week to start gathering comments and questions so they can discuss the matter at a July 12 meeting.

The American Civil Liberties Union of Washington has asked the commission to investigate whether the NSA is routinely getting information about who calls whom. The state attorney general's office is also urging the commission to look into the issue.

However, it's unclear whether the state can make the phone companies or the federal government reveal customer calling data.

"I'm quite sure there's no way the commission can collect the relevant information," David Carpenter, a Chicago lawyer representing AT&T Inc., told commissioners at a hearing Wednesday. "There are federal prohibitions on the disclosure of classified state secrets."

The number-tracking program was first mentioned in a New York Times article in December, then again in a USA Today story last month. Since then, more than 20 lawsuits have been filed against phone companies, most alleging that they violated privacy and telecommunications laws. Nearly two dozen utility commissions have also been asked to look into the allegations.

In the first lawsuit, filed in federal court in San Francisco in January, the government is seeking to intervene and have the case dismissed, citing the "military and state secrets privilege," which is designed to prevent private lawsuits from revealing information that harms the country or its intelligence-gathering.

"This is a privilege that can only be invoked in extraordinary situations," Carpenter told commissioners. "We can't waive the state secrets provision that's been asserted by the United States. And it's a felony for us to provide classified information to third parties."

The Federal Communications Commission has been unable to investigate the allegations because federal law prohibits access to the classified information that would be required, Carpenter said. The same law would apply to the Utilities and Transportation Commission, he said.

Doug Klunder, director of the state ACLU's privacy project, said there's a way around the state-secrets issue. He said the commission should simply ask phone companies whether they have provided calling records to any third party.

Gregory Romano, general counsel for Verizon Communications Inc., said the company cannot confirm or deny participation in a classified NSA program.

Yet in a statement issued May 16, Verizon listed the company's major businesses - wireless, landline phones, long-distance service, Internet and directories - and said: "None of these companies - wireless or wire-line - provided customer records or call data."

Verizon's statement also disputed allegations that even simple cross-town calls are being tracked.

"In fact, phone companies do not even make records of local calls in most cases, because the vast majority of customers are not billed per call for local calls," the company said.

Mark Sidran, the commission's chairman, called the issue one of "broad interest and concern to the people of Washington," but said he wants more information before the commission discusses its options.