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PAG LIN
1 1 Amend the amendment, H-3610, to House File 518 as
1 2 follows:
1 3 #1. Page 9, by inserting after line 7 the
1 4 following:
1 5 "10. a. Notwithstanding subsections 1 through 9,
1 6 a local exchange carrier with fewer than five hundred
1 7 thousand access lines in this state shall have the
1 8 option to be regulated pursuant to subsections 1
1 9 through 9 or pursuant to this subsection.
1 10 b. A local exchange carrier which elects to become
1 11 price regulated under this subsection shall give
1 12 written notice to the board of such election not less
1 13 than thirty days prior to the date such regulation is
1 14 to commence.
1 15 c. Upon election of a local exchange carrier to
1 16 become price-regulated under this subsection, the
1 17 carrier shall reduce its rates for basic local
1 18 telephone service an average of three percent. In
1 19 lieu of the three percent reduction, the local
1 20 exchange carrier may establish its rates for basic
1 21 local telephone service in a rate proceeding under
1 22 section 476.3 or 476.6 commenced after the effective
1 23 date of this Act.
1 24 d. Initial prices for basic communications
1 25 services, other than basic local telephone service,
1 26 shall be set at the rates in effect as of the first of
1 27 July prior to the date such regulation is to commence.
1 28 e. (1) A price-regulated local exchange carrier
1 29 shall not increase its rates for basic communications
1 30 services, for a period of twelve months after electing
1 31 to become price regulated. To the extent necessary,
1 32 rates for basic services may be increased to carry out
1 33 the purpose of any rules that may be adopted by the
1 34 board relating to the terms and conditions of
1 35 unbundled services and interconnection. A price-
1 36 regulated local exchange carrier may increase its
1 37 rates for basic communications services following the
1 38 initial twelve-month period, to the extent that the
1 39 change in rate does not exceed two percentage points
1 40 less than the most recent annual change in the gross
1 41 domestic product price index, as published by the
1 42 federal government. If application of such formula
1 43 achieves a negative result, prices shall be reduced so
1 44 that the cumulative price change for basic services,
1 45 including prior price reductions in these services,
1 46 achieves the negative result. After January 1, 2000,
1 47 the board by rule may adopt different measures of
1 48 inflation and productivity if they are found to be
1 49 more reflective of the individual price-regulated
1 50 carriers.
2 1 (2) Price increases for basic communications
2 2 services which are permitted under this subsection may
2 3 be deferred and accumulated for a maximum of three
2 4 years into a single price increase, provided that a
2 5 deferred and accumulated price increase under this
2 6 subsection shall not at any time exceed six percent.
2 7 A price decrease for basic communications services
2 8 shall not be deferred or accumulated, except that
2 9 price decreases of less than two percent may be
2 10 deferred by the local exchange carrier for one year.
2 11 A price decrease required under this section may be
2 12 offset by a price increase for a basic communications
2 13 service that would have been permitted under this
2 14 section in the previous twelve-month period, but which
2 15 was deferred by the local exchange carrier. A rate
2 16 change pursuant to this subsection may take effect
2 17 thirty days after the notification of the board and
2 18 consumers.
2 19 (3) A price-regulated local exchange carrier shall
2 20 not increase its aggregate revenue weighted prices for
2 21 nonbasic communications services more than six percent
2 22 in any twelve-month period.
2 23 (4) A price-regulated local exchange carrier may
2 24 reduce the price for any basic communications service,
2 25 to an amount not less than the total service long-run
2 26 incremental cost for such service on one day's notice
2 27 filed with the board. For purposes of this
2 28 subsection, "total service long-run incremental costs"
2 29 means the difference between the company's total cost
2 30 and the total cost of the company less the applicable
2 31 service, feature, or function.
2 32 (5) A price-regulated local exchange carrier may
2 33 offer new service alternatives for any basic
2 34 communications services on thirty days prior notice to
2 35 the board, provided that the preexisting basic com-
2 36 munications service rate structure continues to be
2 37 offered to customers. New telecommunications services
2 38 shall be considered nonbasic communications services
2 39 as defined in section 476.30A, subsection 6.
2 40 (6) A price-regulated local exchange carrier must
2 41 reduce the average intrastate access service rates to
2 42 the carrier's average interstate access service rates.
2 43 Such carrier shall reduce the average intrastate
2 44 access service rates by at least twenty-five percent
2 45 of the difference of such rates within ninety days of
2 46 the election to be price-regulated and twenty-five
2 47 percent each of the next three years.
2 48 f. A local exchange carrier shall notify customers
2 49 of a rate change under this subsection at least thirty
2 50 days prior to the effective date of the rate change.
3 1 g. The board may review a local exchange carrier's
3 2 operation under this subsection, with notice and an
3 3 opportunity for hearing, after four years of the
3 4 carrier's election to be price-regulated. The local
3 5 exchange carrier, consumer advocate, or any person may
3 6 propose, and the board may approve, any reasonable
3 7 modifications to the price-regulation requirements in
3 8 this subsection as a result of the specific carrier
3 9 review, except that such modifications shall not
3 10 require a reduction in the rates for any basic
3 11 communications service or a return to rate-base, rate-
3 12 of-return regulation."
3 13
3 14
3 15
3 16 DINKLA of Guthrie
3 17
3 18
3 19
3 20 RENKEN of Grundy
3 21
3 22
3 23
3 24 LAMBERTI of Polk
3 25
3 26
3 27
3 28 BELL of Jasper
3 29
3 30
3 31
3 32 CARROLL of Poweshiek
3 33 HF 518.518 76
3 34 mj/jw
Text: H03780 Text: H03782 Text: H03700 - H03799 Text: H Index Bills and Amendments: General Index Bill History: General Index
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