Text: HF00517 Text: HF00519 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 476.1D, Code 1995, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 10. The board, at the request of a long
1 4 distance telephone company, shall classify such company as a
1 5 competitive long distance telephone company if more than half
1 6 of the company's revenues from its Iowa intrastate
1 7 telecommunications services and facilities are received from
1 8 services and facilities that the board has determined to be
1 9 subject to effective competition. The board shall promptly
1 10 notify the director of revenue and finance that a long
1 11 distance telephone company has been classified as a
1 12 competitive long distance telephone company. Upon such
1 13 notification by the board, the director of revenue and finance
1 14 shall assess the property of such competitive long distance
1 15 telephone company, which property is first assessed for
1 16 taxation in this state on or after January 1, 1996, in the
1 17 same manner as all other property assessed as commercial
1 18 property by the local assessor under chapters 427, 427A, 427B,
1 19 428, and 441. As used in this section, "long distance
1 20 telephone company" means an entity that provides telephone
1 21 service and facilities between local exchanges, but does not
1 22 include a cellular service provider or a local exchange
1 23 utility holding a certificate issued under section 476.29,
1 24 subsection 12.
1 25 Sec. 2. Section 476.3, subsection 2, Code 1995, is amended
1 26 by adding the following new unnumbered paragraph:
1 27 NEW UNNUMBERED PARAGRAPH. Notwithstanding the provisions
1 28 of this subsection, the consumer advocate shall not file a
1 29 petition under this subsection that alleges a local exchange
1 30 carrier's rates are excessive while the local exchange carrier
1 31 is participating in a price regulation plan approved by the
1 32 board pursuant to section 476.30B.
1 33 Sec. 3. Section 476.10, unnumbered paragraph 4, Code 1995,
1 34 is amended to read as follows:
1 35 Whenever the board shall deem it necessary in order to
2 1 carry out the duties imposed upon it in connection with rate
2 2 regulation under section 476.6, investigations under section
2 3 476.3, or review proceedings under section 476.31, the board
2 4 may employ additional temporary or permanent staff, or may
2 5 contract with persons who are not state employees for
2 6 engineering, accounting, or other professional services, or
2 7 both. The costs of these additional employees and contract
2 8 services shall be paid by the public utility whose rates are
2 9 being reviewed in the same manner as other expenses are paid
2 10 under this section. Beginning on July 1, 1991, there is
2 11 appropriated out of any funds in the state treasury not
2 12 otherwise appropriated, such sums as may be necessary to
2 13 enable the board to hire additional staff and contract for
2 14 services under this section. The board shall increase
2 15 quarterly assessments specified in unnumbered paragraph 2, by
2 16 amounts necessary to enable the board to hire additional staff
2 17 and contract for services under this section. The authority
2 18 to hire additional temporary or permanent staff that is
2 19 granted to the board by this section shall not be subject to
2 20 limitation by any administrative or executive order or
2 21 decision that restricts the number of state employees or the
2 22 filling of employee vacancies, and shall not be subject to
2 23 limitation by any law of this state that restricts the number
2 24 of state employees or the filling of employee vacancies unless
2 25 that law is made applicable to this section by express
2 26 reference to this section. Before the board expends or
2 27 encumbers an amount in excess of the funds budgeted for rate
2 28 regulation and before the board increases quarterly
2 29 assessments pursuant to this paragraph, the director of the
2 30 department of management shall approve the expenditure or
2 31 encumbrance. Before approval is given, the director of the
2 32 department of management shall determine that the expenses
2 33 exceed the funds budgeted by the general assembly to the board
2 34 for rate regulation and that the board does not have other
2 35 funds from which the expenses can be paid. Upon approval of
3 1 the director of the department of management the board may
3 2 expend and encumber funds for the excess expenses, and
3 3 increase quarterly assessments to raise the additional funds.
3 4 The board and the office of consumer advocate may add
3 5 additional personnel or contract for additional assistance to
3 6 review and evaluate energy efficiency plans and the
3 7 implementation of energy efficiency programs including, but
3 8 not limited to, professionally trained engineers, accountants,
3 9 attorneys, skilled examiners and inspectors, and secretaries
3 10 and clerks. The board and the office of consumer advocate may
3 11 also contract for additional assistance in the evaluation and
3 12 implementation of issues relating to telecommunication
3 13 competition. The board and the office of the consumer
3 14 advocate may expend additional sums beyond those sums
3 15 appropriated. However, the authority to add additional
3 16 personnel or contract for additional assistance must first be
3 17 approved by the department of management. The additional sums
3 18 for energy efficiency shall be provided to the board and the
3 19 office of the consumer advocate by the utilities subject to
3 20 the energy efficiency requirements in this chapter. Telephone
3 21 companies shall pay any additional sums needed for assistance
3 22 with telecommunication competition issues. The assessments
3 23 shall be in addition to and separate from the quarterly
3 24 assessment.
3 25 Sec. 4. Section 476.11, Code 1995, is amended by adding
3 26 the following new unnumbered paragraph:
3 27 NEW UNNUMBERED PARAGRAPH. The board may resolve
3 28 complaints, upon notice and hearing, that a utility, operating
3 29 under section 476.29, has failed to provide just, reasonable,
3 30 and nondiscriminatory arrangements for interconnection of its
3 31 telecommunications services with another telecommunications
3 32 provider.
3 33 Sec. 5. Section 476.29, subsection 2, Code 1995, is
3 34 amended to read as follows:
3 35 2. Except as provided in subsection 12, a certificate
4 1 shall be issued by the board, after notice and opportunity for
4 2 hearing, if the board determines that the service proposed to
4 3 be rendered will promote the public convenience and necessity,
4 4 provided that an applicant other than a local exchange
4 5 carrier, as defined in section 476.30A, shall not be denied a
4 6 certificate if the board finds that the applicant possesses
4 7 the technical, financial, and managerial ability to provide
4 8 the service it proposes to render and the board finds the
4 9 service is consistent with the public interest. The board
4 10 shall make a determination within ninety days of the
4 11 submission by the applicant of evidence of its technical,
4 12 financial, and managerial ability, unless the board determines
4 13 that additional time is necessary to consider the application,
4 14 in which case the board may extend the time for making a
4 15 determination for an additional sixty days. The board may
4 16 establish reasonable conditions or restrictions on the
4 17 certificate at the time of issuance.
4 18 Sec. 6. NEW SECTION. 476.30 FINDINGS &endash; STATEMENT OF
4 19 POLICY.
4 20 The general assembly finds all of the following:
4 21 1. Communications services should be available throughout
4 22 the state at just, reasonable, and affordable rates from a
4 23 variety of providers.
4 24 2. In rendering decisions with respect to regulation of
4 25 telecommunications companies, the board shall consider the
4 26 effects of its decisions on competition in telecommunications
4 27 markets and, to the extent reasonable and lawful, shall act to
4 28 further the development of competition in those markets.
4 29 3. In order to encourage competition for all
4 30 telecommunications services, the board should address issues
4 31 relating to the movement of prices toward cost and the removal
4 32 of subsidies in the existing price structure of the incumbent
4 33 local exchange carrier.
4 34 4. Regulatory flexibility is appropriate when competition
4 35 provides customers with competitive choices in the variety,
5 1 quality, and pricing of communications services, and when
5 2 consistent with consumer protection and other relevant public
5 3 interests.
5 4 5. The board should respond with speed and flexibility to
5 5 changes in the communications industry.
5 6 6. Economic development can be fostered by the existence
5 7 of advanced communications networks.
5 8 Sec. 7. NEW SECTION. 476.30A DEFINITIONS.
5 9 As used in section 476.30, this section, and sections
5 10 476.30B through 476.30G, unless the context otherwise
5 11 requires:
5 12 1. "Basic communications service" includes at a minimum,
5 13 basic local telephone service, switched access, 911 and E-911
5 14 services, and dual party relay service. The board is
5 15 authorized to classify by rule at any time, any other two-way
5 16 switched communications services as basic communications
5 17 services consistent with community expectations and the public
5 18 interest.
5 19 2. "Basic local telephone service" means the provision of
5 20 dial tone access and usage, for the transmission of two-way
5 21 switched communications within a local exchange area,
5 22 including, but not limited to, the following:
5 23 a. Residence service and business services, including flat
5 24 rate or local measured service, private branch exchange
5 25 trunks, trunk type hunting services, direct inward dialing,
5 26 and the network access portion of central office switched
5 27 exchange service.
5 28 b. Extended area service.
5 29 c. Touch tone service when provided separately.
5 30 d. Call tracing.
5 31 e. Calling number blocking on either a per call or a per
5 32 line basis.
5 33 f. Local exchange white pages directories.
5 34 g. Installation and repair of local network access.
5 35 h. Local operator services, excluding directory
6 1 assistance.
6 2 i. Toll service blocking and 1-900 and 1-976 access
6 3 blocking.
6 4 3. "Competitive local exchange service provider" means any
6 5 person that provides local exchange services, other than a
6 6 local exchange carrier or a nonrate-regulated wireline
6 7 provider of local exchange services under an authorized
6 8 certificate of public convenience and necessity within a
6 9 specific geographic area described in maps filed with and
6 10 approved by the board as of September 30, 1992.
6 11 4. "Interim number portability" means one or more
6 12 mechanisms by which a local exchange customer at a particular
6 13 location may change the customer's local exchange services
6 14 provider without any change in the local exchange customer's
6 15 telephone number, while experiencing as little loss of
6 16 functionality as is feasible using available technology.
6 17 5. "Local exchange carrier" means any person that was the
6 18 incumbent and historical rate-regulated wireline provider of
6 19 local exchange services or any successor to such person that
6 20 provides local exchange services under an authorized
6 21 certificate of public convenience and necessity within a
6 22 specific geographic area described in maps filed with and
6 23 approved by the board as of September 30, 1992.
6 24 6. "Nonbasic communications services" means all
6 25 communications services subject to the board's jurisdiction
6 26 which are not deemed either by statute or by rule to be basic
6 27 communications services, including any service offered by the
6 28 local exchange carrier for the first time after the effective
6 29 date of this Act. A service is not considered new if it
6 30 constitutes the bundling, unbundling, or repricing of an
6 31 already existing service. Consistent with community
6 32 expectations and the public interest, the board may reclassify
6 33 by rule as nonbasic those two-way switched communications
6 34 services previously classified by rule as basic.
6 35 7. "Provider number portability" means the capability of a
7 1 local exchange customer to change the customer's local
7 2 exchange services provider at the customer's same location
7 3 without any change in the local exchange customer's telephone
7 4 number, while preserving the full range of functionality that
7 5 the customer currently experiences. "Provider number
7 6 portability" includes the equal availability of information
7 7 concerning the local exchange provider serving the number to
7 8 all carriers, and the ability to deliver traffic directly to
7 9 that provider without having first to route traffic to the
7 10 local exchange carrier or otherwise use the services,
7 11 facilities, or capabilities of the local exchange carrier to
7 12 complete the call, and without the dialing of additional
7 13 digits or access codes.
7 14 Sec. 8. NEW SECTION. 476.30B PRICE REGULATION.
7 15 1. Notwithstanding contrary provisions of this chapter
7 16 relating to rate regulation, the board may approve a plan for
7 17 price regulation submitted by a rate-regulated local exchange
7 18 carrier. The plan for price regulation is not effective until
7 19 the approval by the board of tariffs implementing the
7 20 unbundling of essential facilities pursuant to section
7 21 476.30F, subsection 4, except for a local exchange carrier
7 22 with less than seventy-five thousand access lines whose plan
7 23 for price regulation will be effective concurrent with the
7 24 approval of its plan. The board may approve a plan for price
7 25 regulation prior to the adoption of rules related to the
7 26 unbundling of essential facilities or concurrent with a rate
7 27 proceeding under section 476.3, 476.6, or 476.7. During the
7 28 term of the plan, the board shall regulate the prices of the
7 29 local exchange carrier's basic and nonbasic communications
7 30 services pursuant to the requirements of the price regulation
7 31 plan approved by the board. The local exchange carrier shall
7 32 not be subject to rate of return regulation during the term of
7 33 the plan.
7 34 2. The board, after notice and opportunity for hearing,
7 35 may approve, modify, or reject the plan. The local exchange
8 1 carrier shall have ten days to accept or reject any board
8 2 modifications to its plan. If the local exchange carrier
8 3 rejects a modification to its plan, the board shall reject the
8 4 plan without prejudice to the local exchange carrier to submit
8 5 another plan.
8 6 3. A price regulation plan, at a minimum, shall include
8 7 provisions, consistent with the provisions of this section and
8 8 any rules adopted by the board, for the following:
8 9 a. (1) Establishing and changing prices, terms, and
8 10 conditions for basic communications services. The initial
8 11 plan for price regulation must include a proposal, which the
8 12 board shall approve, for reducing the local exchange carrier's
8 13 average intrastate access service rates to the local exchange
8 14 carrier's average interstate access service rates in effect as
8 15 of the last day of the calendar year immediately preceding the
8 16 date of filing of the plan, as follows:
8 17 (a) A local exchange carrier with five hundred thousand or
8 18 more access lines in this state shall reduce its average
8 19 intrastate access service rates by at least fifty percent of
8 20 the difference between average intrastate access service rates
8 21 and average interstate access service rates as of the date
8 22 that the plan is filed and further reduce such rates to the
8 23 average interstate access service rates within ninety days of
8 24 the date that the plan becomes effective.
8 25 (b) A local exchange carrier with fewer than five hundred
8 26 thousand but seventy-five thousand or more access lines in
8 27 this state shall reduce its average intrastate access service
8 28 rates to its average interstate access service rates in
8 29 increments of at least twenty-five percent, with the initial
8 30 reduction to take effect on approval of the plan and equal
8 31 annual reductions on each anniversary of the approval during
8 32 the first three years that its plan is in effect.
8 33 (c) A local exchange carrier with fewer than seventy-five
8 34 thousand access lines in this state shall reduce its average
8 35 intrastate access service rates to its average interstate
9 1 access service rates with equal annual reductions during a
9 2 period beginning no more than two years and ending no more
9 3 than five years from the plan's inception.
9 4 (2) This section shall not be construed to do either of
9 5 the following:
9 6 (a) Prohibit an additional decrease in a carrier's average
9 7 intrastate access service rate during the term of the plan.
9 8 (b) Permit any increase in a carrier's average intrastate
9 9 access service rates during the term of the plan.
9 10 (3) The plan shall also provide that the initial prices
9 11 for basic communications services shall be six percent less
9 12 than the rates approved and in effect at the time the local
9 13 exchange carrier files its plan. A local exchange carrier
9 14 which elects to reduce its rates by six percent shall not, at
9 15 a later time, increase its rates for basic communications
9 16 services as a result of the carrier's compliance with the
9 17 board's rules relating to unbundling. In lieu of the six
9 18 percent reduction, and prior to the adoption of rules relating
9 19 to unbundling pursuant to section 476.30F, subsection 4,
9 20 paragraph "a", subparagraph (1), the local exchange carrier
9 21 may request and the board may establish a regulated revenue
9 22 requirement in a rate proceeding under section 476.3 or 476.6
9 23 commenced after the effective date of this Act. After the
9 24 determination of the local exchange carrier's regulated
9 25 revenue requirement pursuant to the rate proceeding, the local
9 26 exchange carrier shall not immediately implement rates
9 27 designed to recover that regulated revenue requirement.
9 28 Following the adoption of rules relating to unbundling
9 29 pursuant to section 476.30F, subsection 4, paragraph "a",
9 30 subparagraph (1), the local exchange carrier shall commence a
9 31 tariff proceeding for the approval of tariffs implementing
9 32 such unbundling. The board has six months to complete this
9 33 tariff proceeding and determine the local exchange carrier's
9 34 final unbundled rates. The local exchange carrier shall carry
9 35 forward the regulated revenue requirement determined by the
10 1 board pursuant to the rate proceeding and design rates that
10 2 comply with the board's rules relating to unbundling that
10 3 recover the regulated revenue requirement, and that implement
10 4 the board's approved rate design established in the tariff
10 5 proceeding.
10 6 In lieu of taking the six percent reduction, a local
10 7 exchange carrier that submits a plan for price regulation
10 8 after the board adopts rules relating to unbundling may file a
10 9 rate proceeding under section 476.3 or 476.6 and the board may
10 10 approve rates designed to comply with those rules which allow
10 11 the carrier to recover the established regulated revenue
10 12 requirement and that implement the board's approved rate
10 13 design established in the tariff proceeding.
10 14 (4) The plan shall provide for both increases and
10 15 decreases in the prices for basic communications services
10 16 reflecting annual changes in inflation and productivity.
10 17 Prior to January 1, 1998, the board shall use the gross
10 18 domestic product price index, as published by the federal
10 19 government, for an inflation measure, and two and six-tenths
10 20 percentage points for a productivity measure. After January
10 21 1, 1998, the board by rule may adopt current measures of
10 22 inflation and productivity.
10 23 (5) The plan may provide that price increases for basic
10 24 communications services which are permitted under this section
10 25 may be deferred and accumulated for a maximum of three years
10 26 into a single price increase, provided that a deferred and
10 27 accumulated price increase under this section shall not at any
10 28 time exceed six percent. A price decrease for basic
10 29 communications services shall not be deferred or accumulated,
10 30 except that price decreases of less than two percent may be
10 31 deferred by the local exchange carrier for one year. A price
10 32 decrease required under this section may be offset by a price
10 33 increase for a basic communications service that would have
10 34 been permitted under this section in the previous twelve-month
10 35 period, but which was deferred by the local exchange carrier.
11 1 b. Establishing and changing prices, terms, and conditions
11 2 for nonbasic communications services.
11 3 c. Reporting new service offerings to the board.
11 4 d. Reflecting in rates any changes in revenues, expenses,
11 5 and investment due to exogenous factors beyond the control of
11 6 the local exchange carrier.
11 7 e. Providing notice to customers, the board, and the
11 8 consumer advocate of changes in prices, terms, or conditions
11 9 for basic and nonbasic communications services.
11 10 4. The board shall consider the extent to which a proposed
11 11 plan complies with the requirements of subsection 3 and
11 12 achieves the following:
11 13 a. Just, nondiscriminatory, and reasonable rates.
11 14 b. High quality, universally available communications
11 15 services.
11 16 c. Encouragement of investment in communications
11 17 infrastructure, efficiency improvements, and technological
11 18 innovation.
11 19 d. The introduction of new communications products and
11 20 services from a variety of sources.
11 21 e. Regulatory efficiency including reduction of regulatory
11 22 costs and delays. A plan shall not provide for waiver of,
11 23 release from, or delay in implementing the provisions of this
11 24 section, section 476.30F or 476.30G or any rules adopted by
11 25 the board pursuant to those sections.
11 26 5. Notwithstanding an approved plan for price regulation,
11 27 the board shall continue to have regulatory authority over the
11 28 following:
11 29 a. The level, extent, and timing of the unbundling of
11 30 essential facilities offered by a local exchange carrier.
11 31 b. Ensuring against cross-subsidization between nonbasic
11 32 communications services and basic communications services.
11 33 6. Any person, including the consumer advocate, a body
11 34 politic, or the board on its own motion, may file a written
11 35 complaint pursuant to section 476.3, subsection 1, regarding a
12 1 local exchange carrier's implementation, operation under, or
12 2 satisfaction of the purposes of its price regulation plan.
12 3 7. The consumer advocate may represent consumers before
12 4 the board regarding any rule, order, or proceeding pertaining
12 5 to price regulation. The consumer advocate may act as
12 6 attorney for and represent consumers generally before any
12 7 state or federal court concerning a board rule, order, or
12 8 proceeding pertaining to price regulation.
12 9 8. In implementing price regulation, the board shall
12 10 consider competitively neutral methods to assist lower-income
12 11 Iowans to secure and retain telephone services.
12 12 9. The board shall determine the duration of any plan.
12 13 The board shall review a local exchange carrier's operation
12 14 under its plan, with notice and an opportunity for hearing,
12 15 within four years of the initiation of the plan and prior to
12 16 the termination of the plan. The local exchange carrier,
12 17 consumer advocate, or any person may propose, and the board
12 18 may approve, any reasonable modifications to a local exchange
12 19 carrier's plan as a result of the review, except that such
12 20 modifications shall not require a reduction in the rates for
12 21 any basic communications service.
12 22 10. The board, in determining whether to file a written
12 23 complaint pursuant to subsection 6 or prior to reviewing a
12 24 local exchange carrier's operation pursuant to subsection 9,
12 25 may request that such carrier provide any information which
12 26 the board deems necessary to make such determination or
12 27 conduct such review. The carrier shall provide the requested
12 28 information upon receipt of the request from the board.
12 29 11. a. Notwithstanding subsections 1 through 10, a local
12 30 exchange carrier with fewer than five hundred thousand access
12 31 lines in this state shall have the option to be regulated
12 32 pursuant to subsections 1 through 10 or pursuant to this
12 33 subsection. A local exchange carrier which elects to become
12 34 price regulated under this subsection shall also be subject to
12 35 subsections 5 through 8 and subsection 10 in the same manner
13 1 as a local exchange carrier which operates under an approved
13 2 plan of price regulation submitted pursuant to subsection 1.
13 3 b. A local exchange carrier which elects to become price
13 4 regulated under this subsection shall give written notice to
13 5 the board of such election not less than thirty days prior to
13 6 the date such regulation is to commence.
13 7 c. Upon election of a local exchange carrier to become
13 8 price-regulated under this subsection, the carrier shall
13 9 reduce its rates for basic local telephone service an average
13 10 of three percent. In lieu of the three percent reduction, the
13 11 local exchange carrier may establish its rates for basic local
13 12 telephone service in a rate proceeding under section 476.3 or
13 13 476.6 commenced after the effective date of this Act.
13 14 d. Initial prices for basic communications services, other
13 15 than basic local telephone service, shall be set at the rates
13 16 in effect as of the first of July prior to the date such
13 17 regulation is to commence.
13 18 e. (1) A price-regulated local exchange carrier shall not
13 19 increase its rates for basic communications services, for a
13 20 period of twelve months after electing to become price
13 21 regulated. To the extent necessary, rates for basic services
13 22 may be increased to carry out the purpose of any rules that
13 23 may be adopted by the board relating to the terms and
13 24 conditions of unbundled services and interconnection. A
13 25 price-regulated local exchange carrier may increase its rates
13 26 for basic communications services following the initial
13 27 twelve-month period, to the extent that the change in rate
13 28 does not exceed two percentage points less than the most
13 29 recent annual change in the gross domestic product price
13 30 index, as published by the federal government. If application
13 31 of such formula achieves a negative result, prices shall be
13 32 reduced so that the cumulative price change for basic
13 33 services, including prior price reductions in these services,
13 34 achieves the negative result. After January 1, 2000, the
13 35 board by rule may adopt different measures of inflation and
14 1 productivity if they are found to be more reflective of the
14 2 individual price-regulated carriers.
14 3 (2) Price increases for basic communications services
14 4 which are permitted under this subsection may be deferred and
14 5 accumulated for a maximum of three years into a single price
14 6 increase, provided that a deferred and accumulated price
14 7 increase under this subsection shall not at any time exceed
14 8 six percent. A price decrease for basic communications
14 9 services shall not be deferred or accumulated, except that
14 10 price decreases of less than two percent may be deferred by
14 11 the local exchange carrier for one year. A price decrease
14 12 required under this section may be offset by a price increase
14 13 for a basic communications service that would have been
14 14 permitted under this section in the previous twelve-month
14 15 period, but which was deferred by the local exchange carrier.
14 16 A rate change pursuant to this subsection may take effect
14 17 thirty days after the notification of the board and consumers.
14 18 (3) A price-regulated local exchange carrier shall not
14 19 increase its aggregate revenue weighted prices for nonbasic
14 20 communications services more than six percent in any twelve-
14 21 month period.
14 22 (4) A price-regulated local exchange carrier may reduce
14 23 the price for any basic communications service, to an amount
14 24 not less than the total service long-run incremental cost for
14 25 such service on one day's notice filed with the board. For
14 26 purposes of this subsection, "total service long-run
14 27 incremental costs" means the difference between the company's
14 28 total cost and the total cost of the company less the
14 29 applicable service, feature, or function.
14 30 (5) A price-regulated local exchange carrier may offer new
14 31 service alternatives for any basic communications services on
14 32 thirty days prior notice to the board, provided that the
14 33 preexisting basic communications service rate structure
14 34 continues to be offered to customers. New telecommunications
14 35 services shall be considered nonbasic communications services
15 1 as defined in section 476.30A, subsection 6.
15 2 (6) A price-regulated local exchange carrier must reduce
15 3 the average intrastate access service rates to the carrier's
15 4 average interstate access service rates. Such carrier shall
15 5 reduce the average intrastate access service rates by at least
15 6 twenty-five percent of the difference of such rates within
15 7 ninety days of the election to be price-regulated and twenty-
15 8 five percent each of the next three years.
15 9 f. A local exchange carrier shall notify customers of a
15 10 rate change under this subsection at least thirty days prior
15 11 to the effective date of the rate change.
15 12 g. A local exchange carrier which elects to become price
15 13 regulated under this subsection shall also be subject to the
15 14 following:
15 15 (1) The local exchange carrier shall not be subject to
15 16 rate-of-return regulation while operating under price
15 17 regulation.
15 18 (2) All regulated services shall be provided pursuant to
15 19 board-approved tariffs.
15 20 (3) All new regulated service offerings shall be reported
15 21 to the board.
15 22 (4) Rates may be adjusted by the board to reflect any
15 23 changes in revenues, expenses, and investment due to exogenous
15 24 factors beyond the control of the local exchange carrier.
15 25 h. The board may review a local exchange carrier's
15 26 operation under this subsection, with notice and an
15 27 opportunity for hearing, after four years of the carrier's
15 28 election to be price-regulated. The local exchange carrier,
15 29 consumer advocate, or any person may propose, and the board
15 30 may approve, any reasonable modifications to the price-
15 31 regulation requirements in this subsection as a result of the
15 32 specific carrier review, except that such modifications shall
15 33 not require a reduction in the rates for any basic
15 34 communications service or a return to rate-base, rate-of-
15 35 return regulation.
16 1 i. This subsection shall not be construed to prohibit an
16 2 additional decrease or to permit any increase in a local
16 3 exchange carrier's average intrastate access service rates
16 4 during the term of the local exchange carrier's operation
16 5 under price regulation.
16 6 Sec. 9. NEW SECTION. 476.30C EARNINGS CALCULATION AND
16 7 REPORT.
16 8 1. The consumer advocate shall calculate an estimate of
16 9 the return of a local exchange carrier operating under price
16 10 regulation pursuant to section 476.30B as if the carrier were
16 11 subject to rate-of-return regulation. The calculation shall
16 12 be based upon the annual report of such carrier and other
16 13 information provided to the consumer advocate by the carrier.
16 14 The calculation shall be made every two years beginning
16 15 following the end of the second calendar year after the year
16 16 in which the plan becomes effective. The consumer advocate
16 17 shall provide a written report to the general assembly
16 18 including the results of this calculation on or before July 1
16 19 of the year immediately following the two-year period for
16 20 which a calculation is made. If, after a review of the
16 21 information used to make the calculation required in this
16 22 section, the consumer advocate determines that the public
16 23 interest would be better served by a different form of rate
16 24 regulation, the consumer advocate shall provide a
16 25 recommendation that the general assembly direct the utilities
16 26 board to implement a different form of rate regulation.
16 27 Sec. 10. NEW SECTION. 476.30D ADDITIONAL PRICE
16 28 REGULATION PLAN PROVISIONS.
16 29 In addition to the provisions required in section 476.30B,
16 30 a local exchange carrier, prior to operating under price
16 31 regulation, shall make provision for the following:
16 32 1. Reflecting in rates any changes due to changes in the
16 33 average cost of the local exchange carrier resulting from the
16 34 sale of an exchange in this state.
16 35 2. Encouraging modernization of the local exchange
17 1 carrier's telecommunications infrastructure. This provision
17 2 shall include a requirement that the local exchange carrier
17 3 develop and file with the board an increased modernization
17 4 plan.
17 5 Sec. 11. NEW SECTION. 476.30E PROHIBITED ACTS.
17 6 A local exchange carrier shall not do any of the following:
17 7 1. Discriminate against another provider of communications
17 8 services by refusing or delaying access to the local exchange
17 9 carrier's services.
17 10 2. Discriminate against another provider of communications
17 11 services by refusing or delaying access to essential
17 12 facilities on terms and conditions no less favorable than
17 13 those the local exchange carrier provides to itself and its
17 14 affiliates. A local telecommunications facility, feature,
17 15 function, or capability of the local exchange carrier's
17 16 network is an essential facility if all of the following
17 17 apply:
17 18 a. Competitors cannot practically or economically
17 19 duplicate the facility, feature, function, or capability, or
17 20 obtain the facility, feature, function, or capability from
17 21 another source.
17 22 b. The use of the facility, feature, function, or
17 23 capability by potential competitors is technically and
17 24 economically feasible.
17 25 c. Denial of the use of the facility, feature, function,
17 26 or capability by competitors is unreasonable.
17 27 d. The facility, feature, function, or capability will
17 28 enable competition.
17 29 3. Degrade the quality of access or service provided to
17 30 another provider of communications services.
17 31 4. Fail to disclose in a timely manner, upon reasonable
17 32 request and pursuant to a protective agreement concerning
17 33 proprietary information, all information reasonably necessary
17 34 for the design of network interface equipment, network
17 35 interface services, or software that will meet the
18 1 specifications of the local exchange carrier's local exchange
18 2 network.
18 3 5. Unreasonably refuse or delay interconnections or
18 4 provide inferior interconnections to another provider.
18 5 6. Use basic exchange service rates, directly or
18 6 indirectly, to subsidize or offset the costs of other products
18 7 or services offered by the local exchange carrier.
18 8 7. Discriminate in favor of itself or an affiliate in the
18 9 provision and pricing of, or extension of credit for, any
18 10 telephone service.
18 11 Sec. 12. NEW SECTION. 476.30F LOCAL EXCHANGE
18 12 COMPETITION.
18 13 1. A certificate of public convenience and necessity to
18 14 provide local telephone service shall not be interpreted as
18 15 conveying a monopoly, exclusive privilege, or franchise. A
18 16 competitive local exchange service provider shall not be
18 17 subject to the requirements of this chapter, except that a
18 18 competitive local exchange service provider shall obtain a
18 19 certificate of public convenience and necessity pursuant to
18 20 section 476.29, file tariffs, notify affected customers prior
18 21 to any rate increase, file reports, information, and pay
18 22 assessments pursuant to section 476.2, subsection 4, and
18 23 sections 476.9, 476.10, 476.16, 476.30G, and 477C.7, and shall
18 24 be subject to the board's authority with respect to adequacy
18 25 of service, interconnection, discontinuation of service, civil
18 26 penalties, and complaints. If, after notice and opportunity
18 27 for hearing, the board determines that a competitive local
18 28 exchange service provider possesses market power in its local
18 29 exchange market or markets, the board may apply such other
18 30 provisions of chapter 476 to a competitive local exchange
18 31 service provider as it deems appropriate.
18 32 2. The duty of a local exchange carrier includes the duty,
18 33 in accordance with requirements prescribed by the board
18 34 pursuant to subsection 3 and other laws, to provide equal
18 35 access to, and interconnection with, its facilities so that
19 1 its network is fully interoperable with the telecommunications
19 2 services and information services of other providers, and to
19 3 offer unbundled essential facilities.
19 4 3. A local exchange carrier shall provide reasonable
19 5 access to ducts, conduits, rights-of-way, and other pathways
19 6 owned or controlled by the local exchange carrier to which
19 7 reasonable access is necessary to a competitive local exchange
19 8 service provider in order for a competitive local exchange
19 9 service provider to provide service and is feasible for the
19 10 local exchange carrier.
19 11 Upon application of a local exchange carrier or a
19 12 competitive local exchange service provider, the board shall
19 13 determine any matters concerning reasonable access to ducts,
19 14 conduits, rights-of-way, and other pathways owned or
19 15 controlled by the local exchange carrier upon which agreement
19 16 cannot be reached, including but not limited to, matters
19 17 regarding valuation, space, and capacity restraints, and
19 18 compensation for access.
19 19 4. a. Prior to September 1, 1995, the board shall
19 20 initiate a rule-making proceeding to adopt rules that satisfy
19 21 the requirements enumerated in subparagraphs (1) through (4).
19 22 The rule-making proceeding shall be completed as promptly as
19 23 possible. The board, upon petition or on its own motion, may
19 24 conduct a separate evidentiary hearing on the same or related
19 25 subjects. The evidence from a hearing may be considered by
19 26 the board during the rule-making proceeding, provided that the
19 27 board announces its intention to do so prior to the oral
19 28 presentation in the rule-making proceeding. The rules shall
19 29 do the following:
19 30 (1) Require a local exchange carrier to provide unbundled
19 31 essential facilities of its network, and allow reasonable and
19 32 nondiscriminatory equal access to, use of, and interconnection
19 33 with, those unbundled essential facilities on reasonable,
19 34 cost-based, and tariffed terms and conditions. The board's
19 35 rules must require a local exchange carrier, including those
20 1 operating under a plan of price regulation, to file tariffs
20 2 implementing the unbundled essential facilities within ninety
20 3 days of the board's final order adopting such rules, except
20 4 for local exchange carriers with less than seventy-five
20 5 thousand access lines which must file such tariffs within two
20 6 years of the effective date of this Act. Such access, use,
20 7 and interconnection shall be on terms and conditions no less
20 8 favorable than those the local exchange carrier provides to
20 9 itself and its affiliates for the provision of local exchange,
20 10 access, and toll services. This subsection shall not be
20 11 construed to establish a presumption as to the level of
20 12 interconnection charges, if any, to be determined by the board
20 13 pursuant to subparagraph (2).
20 14 (2) Establish reciprocal cost-based compensation for
20 15 termination of telecommunications services between local
20 16 exchange carriers and competitive local exchange service
20 17 providers.
20 18 (3) Require local exchange carriers to make interim number
20 19 portability available on request of a competitive local
20 20 exchange service provider, and to implement provider number
20 21 portability as soon as the availability of necessary
20 22 technology makes provider number portability economically and
20 23 technically feasible, as determined by the board. The rules
20 24 shall also devise a reasonable and nondiscriminatory mechanism
20 25 for the recovery of all recurring and nonrecurring costs of
20 26 interim and provider number portability.
20 27 (4) Develop the cost methodology appropriate for a
20 28 competitive telecommunications environment.
20 29 b. The rules adopted in paragraph "a", subparagraphs (2)
20 30 and (3), do not apply to local exchange carriers with less
20 31 than seventy-five thousand access lines until a competitive
20 32 local exchange service provider has filed for a certificate to
20 33 provide basic communications services in an exchange or
20 34 exchanges of the local exchange carrier, or the board
20 35 determines that competitive necessity requires the
21 1 implementation of the rules in paragraph "a", subparagraphs
21 2 (2) and (3), by the local exchange carrier.
21 3 5. Local exchange carriers shall file tariffs or price
21 4 lists in accordance with board rules with respect to the
21 5 services, features, functions, and capabilities offered to
21 6 comply with board rules on unbundling of essential facilities
21 7 and interconnection. Local exchange carriers shall submit
21 8 with the tariffs or price lists for basic communications
21 9 services and toll services supporting information that is
21 10 sufficient for the board to determine the relationship between
21 11 the proposed charges and the costs of providing such services,
21 12 features, functions, or capabilities, including the imputed
21 13 cost of intrastate access service rates in toll service rates
21 14 pursuant to existing board orders. The board shall review the
21 15 tariffs or price lists to ensure that the charges are cost-
21 16 based and that the terms and conditions contained in the
21 17 tariffs or price lists unbundle any essential facilities in
21 18 accordance with the board's rules and any other applicable
21 19 laws.
21 20 6. This section shall not be construed to prohibit the
21 21 board from enforcing rules or orders entered in contested
21 22 cases pending on the effective date of this Act to the extent
21 23 that such rules and orders are consistent with the provisions
21 24 of this section.
21 25 7. Except as provided under section 476.29, subsection 2,
21 26 and this section, the board shall not impose or allow a local
21 27 exchange carrier to impose restrictions on the resale of local
21 28 exchange services, functions, or capabilities. The board may
21 29 prohibit residential service from being resold as a different
21 30 class of service.
21 31 8. Any person may file a written complaint with the board
21 32 requesting the board to determine compliance by a local
21 33 exchange carrier with the provisions of sections 476.30A
21 34 through 476.30E, 476.30G, and this section, or any board rules
21 35 implementing those sections. Upon the filing of such
22 1 complaint, the board may promptly initiate a formal complaint
22 2 proceeding and give notice of the proceeding and the
22 3 opportunity for hearing. The formal complaint proceeding may
22 4 be initiated at any time by the board on its own motion. The
22 5 board shall render a decision in the proceeding within ninety
22 6 days after the date the written complaint was filed.
22 7 Sec. 13. NEW SECTION. 476.30G UNIVERSAL SERVICE.
22 8 1. The board shall initiate a proceeding to preserve
22 9 universal service such that it shall be maintained in a
22 10 competitively neutral fashion. As a part of this proceeding,
22 11 the board shall determine the difference between the cost of
22 12 providing universal service and the prices determined to be
22 13 appropriate for such service.
22 14 2. The board shall base policies for the preservation of
22 15 universal service on the following principles:
22 16 a. A plan adopted by the board should ensure the continued
22 17 viability of universal service by maintaining quality services
22 18 at just and reasonable rates.
22 19 b. The plan should define the nature and extent of the
22 20 service encompassed within any entities' universal service
22 21 obligations.
22 22 c. The plan should establish specific and predictable
22 23 mechanisms to provide competitively neutral support for
22 24 universal service. Those mechanisms shall include a
22 25 nondiscriminatory mechanism by which funds to support
22 26 universal service shall be collected, and a mechanism for
22 27 disbursement of support funds to eligible subscribers, either
22 28 directly to those subscribers, or to the subscriber's provider
22 29 of local exchange services chosen by the subscriber.
22 30 d. The plan should be based on other principles as the
22 31 board determines are necessary and appropriate for the
22 32 protection of the public interest, convenience, and necessity
22 33 and consistent with the purposes of sections 476.30 through
22 34 476.30F and this section.
22 35 Sec. 14. REPORT. The utilities board shall submit a
23 1 report to the general assembly no later than January 15, 1999,
23 2 concerning the implementation of price regulation for local
23 3 exchange carriers furnishing communications services.
23 4 HF 518
23 5 mj/pk/25
Text: HF00517 Text: HF00519 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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