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House Journal: Page 1317: Thursday, April 6, 1995

10   date of this Act.  The plan shall provide that no
11   price increases shall be undertaken within twelve
12   months of the date of approval of the local exchange
13   carrier's plan, or within twelve months of the last
14   price change for basic communications services.
15     (4)  The plan shall provide for both increases and
16   decreases in the prices for basic communications
17   services reflecting annual changes in inflation and
18   productivity.  Prior to January 1, 1998, the board
19   shall use the gross domestic product price index, as
20   published by the federal government, for an inflation
21   measure, and two and six-tenths percentage points for
22   a productivity measure.  After January 1, 1998, the
23   board by rule may adopt current measures of inflation
24   and productivity.
25     (5)  The plan may provide that price increases for
26   basic communications services which are permitted
27   under this section may be deferred and accumulated for
28   a maximum of three years into a single price increase,
29   provided that a deferred and accumulated price
30   increase under this section shall not at any time
31   exceed six percent.  A price decrease for basic
32   communications services shall not be deferred or
33   accumulated, except that price decreases of less than
34   two percent may be deferred by the local exchange
35   carrier for one year.  A price decrease required under
36   this section may be offset by a price increase for a
37   basic communications service that would have been
38   permitted under this section in the previous twelve-
39   month period, but which was deferred by the local
40   exchange carrier.
41     b.  Establishing and changing prices, terms, and
42   conditions for nonbasic communications services.
43     c.  Reporting new service offerings to the board.
44     d.  Reflecting in rates any changes in revenues,
45   expenses, and investment due to exogenous factors
46   beyond the control of the utility.
47     e.  Encouraging modernization of the utility's
48   telecommunications infrastructure.
49     f.  Providing notice to customers, the board, and
50   the consumer advocate of changes in prices, terms, or

Page   8

 1   conditions for basic and nonbasic communications
 2   services.
 3     4.  The board shall consider the extent to which a
 4   proposed plan complies with the requirements of
 5   subsection 3 and achieves the following:
 6     a.  Just, nondiscriminatory, and reasonable rates.
 7     b.  High quality, universally available
 8   communications services.
 9     c.  Encouragement of investment in communications
10   infrastructure, efficiency improvements, and

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