Text: HF00695 Text: HF00697 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.97, subsection 11, paragraph a, 1 2 Code 1997, is amended to read as follows: 1 3 a. Notwithstanding subsections 1 through 10, a local 1 4 exchange carrierwith fewer than five hundred thousand access1 5lines in this stateshall have the option to be regulated 1 6 pursuant to subsections 1 through 10 or pursuant to this 1 7 subsection. A local exchange carrier which elects to become 1 8 price regulated under this subsection shall also be subject to 1 9 subsections 5 through 8 and subsection 10 in the same manner 1 10 as a local exchange carrier which operates under an approved 1 11 plan of price regulation submitted pursuant to subsection 1. 1 12 Sec. 2. Section 476.97, subsection 11, paragraph e, Code 1 13 1997, is amended by adding the following new subparagraph: 1 14 NEW SUBPARAGRAPH. (7) (a) Notwithstanding subparagraph 1 15 (6), a local exchange carrier with five hundred thousand or 1 16 more access lines which enters into a plan on or after July 1, 1 17 1997, shall immediately reduce its average intrastate access 1 18 service rates by at least fifty percent of the difference 1 19 between average intrastate access service rates and average 1 20 interstate access service rates as of the date the plan is 1 21 filed, and further reduce such rates by the remaining amount 1 22 of the difference in equal annual reductions on the 1 23 anniversary of the filing of the plan during the first two 1 24 years that its plan is in effect. 1 25 (b) Notwithstanding subparagraph subdivision (a), any 1 26 further reduction of the local exchange carrier's average 1 27 intrastate rates after the initial reduction at the time of 1 28 filing of the plan is mandatory only if the utilities board 1 29 finds that long distance carriers whose access charges are 1 30 reduced have reduced the rates charged to its customers, 1 31 including both residential and business in proportion to the 1 32 percentage of business each class of customer represents to 1 33 the long distance carrier, by a total amount at least equal to 1 34 the total amount of the reduction in such access charges. 1 35 Sec. 3. Section 476.97, subsection 11, Code 1997, is 2 1 amended by adding the following new paragraph: 2 2 NEW PARAGRAPH. j. Notwithstanding paragraph "c", a local 2 3 exchange carrier with five hundred thousand or more access 2 4 lines which elects to become regulated under this subsection 2 5 shall also be subject to subsection 3, paragraph "a", 2 6 subparagraph (3). 2 7 Sec. 4. Section 476.98, Code 1997, is amended to read as 2 8 follows: 2 9 476.98 EARNINGS CALCULATION AND REPORT. 2 10 The consumer advocate shall calculate an estimate of the 2 11 return of a local exchange carrier operating under price 2 12 regulation pursuant to section 476.97 as if the carrier were 2 13 subject to rate-of-return regulation. The calculation shall 2 14 be based upon the annual report of such carrier and other 2 15 information provided to the consumer advocate by the carrier. 2 16 The calculation shall be made every two years beginning 2 17 following the end of the second calendar year after the year 2 18 in which the plan becomes effective. Notwithstanding section 2 19 476.1D, subsection 4, the consumer advocate shall make two 2 20 calculations pursuant to this subsection with one calculation 2 21 taking into account the investment, revenues, and expenses 2 22 associated with the sale of classified directory advertising, 2 23 and one calculation not taking into account such investment, 2 24 revenues, and expenses. The consumer advocate shall provide a 2 25 written report to the general assembly including the results 2 26 of this calculation on or before July 1 of the year 2 27 immediately following the two-year period for which a 2 28 calculation is made. If, after a review of the information 2 29 used to make the calculation required in this section, the 2 30 consumer advocate determines that the public interest would be 2 31 better served by a different form of rate regulation, the 2 32 consumer advocate shall provide a recommendation that the 2 33 general assembly direct the utilities board to implement a 2 34 different form of rate regulation. 2 35 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 3 1 immediate importance, takes effect upon enactment. 3 2 EXPLANATION 3 3 This bill amends Code section 476.97 to permit a local 3 4 exchange carrier with 500,000 access lines or more a second 3 5 option regarding price regulation. Currently, only local 3 6 exchange carriers with fewer than 500,000 access lines are 3 7 given the choice of the alternative option. 3 8 Pursuant to the first option, a rate-regulated local 3 9 exchange carrier may submit a plan for price regulation to the 3 10 board. The board, after notice and opportunity for hearing, 3 11 may approve, modify, or reject the plan. The carrier has 10 3 12 days to accept or reject any modifications to the plan. A 3 13 plan under this option, at a minimum, must include provisions 3 14 for establishing and changing prices, terms, and conditions 3 15 for basic communications services; establishing and changing 3 16 prices, terms, and conditions for nonbasic communications 3 17 services; reporting new service offerings to the board; 3 18 reflecting any changes in revenues, expenses, and investment 3 19 due to exogenous factors beyond the control of the local 3 20 exchange carrier in the rates to be charged by the carrier; 3 21 and providing notice to customers, the board, and the consumer 3 22 advocate of any changes in prices, terms, or conditions. 3 23 Additionally, the board is to determine the duration of any 3 24 plan under this option. 3 25 Pursuant to the second option, which is currently only 3 26 available to a rate-regulated local exchange carrier with 3 27 fewer than 500,000 access lines, such carrier is to provide 3 28 written notice to the board of such election no less than 30 3 29 days prior to the date price regulation is to commence. The 3 30 rate-regulated local exchange carrier is not required to file 3 31 a plan with the board in the manner provided under the first 3 32 option. The rate-regulated local exchange carrier is not 3 33 subject to rate-of-return regulation while operating under 3 34 price regulation, all regulated services are to be provided 3 35 pursuant to board-approved tariffs, all new regulated service 4 1 offerings are to be reported to the board, and rates may be 4 2 adjusted by the board to reflect any changes in revenues, 4 3 expenses, and investment due to exogenous factors beyond the 4 4 control of the local exchange carrier. Current law provides 4 5 the manner in which prices may be changed and requires that 4 6 the rate-regulated local exchange carrier notify customers of 4 7 a rate change under this subsection at least 30 days prior to 4 8 the effective date of the rate change. The board is 4 9 authorized to review a local exchange carrier's operation 4 10 under this option four years after the carrier's election to 4 11 be price-regulated. The local exchange carrier, consumer 4 12 advocate, or any other person may propose for the board's 4 13 approval, a reasonable modification to the price regulation 4 14 requirements in the option. 4 15 The bill provides that a local exchange carrier with 4 16 500,000 or more access lines which enters into a plan under 4 17 the second option on or after July 1, 1997, must immediately 4 18 reduce its average intrastate access service rates by at least 4 19 50 percent of the difference between average intrastate access 4 20 service rates and average interstate access service rates as 4 21 of the date the plan is filed, and further reduce such rates 4 22 by equal annual reductions on the anniversary of the filing of 4 23 the plan during the first two years of the plan. The 4 24 subsequent reductions are not mandated only if the utilities 4 25 board finds that long distance carriers are reducing their 4 26 rates to their customers by an amount at least equal to the 4 27 amount of the reduction in the access charges charged to such 4 28 long distance carriers. 4 29 The bill also provides that the consumer advocate, in 4 30 calculating an estimate of the return of a local exchange 4 31 carrier operating under price regulation as if the carrier 4 32 were subject to rate-of-return regulation, is to make two 4 33 calculations with one calculation considering the investment, 4 34 revenues, and expenses associated with the sale of classified 4 35 directory advertising and one calculation without considering 5 1 such factors. 5 2 The bill would take effect upon enactment. 5 3 LSB 2372HV 77 5 4 mj/cf/24
Text: HF00695 Text: HF00697 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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