Text: HSB00196 Text: HSB00198 Text: HSB00100 - HSB00199 Text: HSB 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 476.98, Code 1997, is amended to read as 1 13 follows: 1 14 476.98 EARNINGS CALCULATION AND REPORT. 1 15 The consumer advocate shall calculate an estimate of the 1 16 return of a local exchange carrier operating under price 1 17 regulation pursuant to section 476.97 as if the carrier were 1 18 subject to rate-of-return regulation. The calculation shall 1 19 be based upon the annual report of such carrier and other 1 20 information provided to the consumer advocate by the carrier. 1 21 The calculation shall be made every two years beginning 1 22 following the end of the second calendar year after the year 1 23 in which the plan becomes effective. Notwithstanding section 1 24 476.1D, subsection 4, in making a calculation pursuant to this 1 25 section, the consumer advocate shall not take into account the 1 26 investment, revenues, and expenses associated with the sale of 1 27 classified directory advertising. The consumer advocate shall 1 28 provide a written report to the general assembly including the 1 29 results of this calculation on or before July 1 of the year 1 30 immediately following the two-year period for which a 1 31 calculation is made. If, after a review of the information 1 32 used to make the calculation required in this section, the 1 33 consumer advocate determines that the public interest would be 1 34 better served by a different form of rate regulation, the 1 35 consumer advocate shall provide a recommendation that the 2 1 general assembly direct the utilities board to implement a 2 2 different form of rate regulation. 2 3 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 2 4 immediate importance, takes effect upon enactment. 2 5 EXPLANATION 2 6 This bill amends Code section 476.97 to permit a local 2 7 exchange carrier with 500,000 access lines or more a second 2 8 option regarding price regulation. Currently, only local 2 9 exchange carriers with fewer than 500,000 access lines are 2 10 given the choice of the alternative option. 2 11 Pursuant to the first option, a rate-regulated local 2 12 exchange carrier may submit a plan for price regulation to the 2 13 board. The board, after notice and opportunity for hearing, 2 14 may approve, modify, or reject the plan. The carrier has 10 2 15 days to accept or reject any modifications to the plan. A 2 16 plan under this option, at a minimum, must include provisions 2 17 for establishing and changing prices, terms, and conditions 2 18 for basic communications services; establishing and changing 2 19 prices, terms, and conditions for nonbasic communications 2 20 services; reporting new service offerings to the board; 2 21 reflecting any changes in revenues, expenses, and investment 2 22 due to exogenous factors beyond the control of the local 2 23 exchange carrier in the rates to be charged by the carrier; 2 24 and providing notice to customers, the board, and the consumer 2 25 advocate of any changes in prices, terms, or conditions. 2 26 Additionally, the board is to determine the duration of any 2 27 plan under this option. 2 28 Pursuant to the second option, which is currently only 2 29 available to a rate-regulated local exchange carrier with 2 30 fewer than 500,000 access lines, such carrier is to provide 2 31 written notice to the board of such election no less than 30 2 32 days prior to the date price regulation is to commence. The 2 33 rate-regulated local exchange carrier is not required to file 2 34 a plan with the board in the manner provided under the first 2 35 option. The rate-regulated local exchange carrier is not 3 1 subject to rate-of-return regulation while operating under 3 2 price regulation, all regulated services are to be provided 3 3 pursuant to board-approved tariffs, all new regulated service 3 4 offerings are to be reported to the board, and rates may be 3 5 adjusted by the board to reflect any changes in revenues, 3 6 expenses, and investment due to exogenous factors beyond the 3 7 control of the local exchange carrier. Current law provides 3 8 the manner in which prices may be changed and requires that 3 9 the rate-regulated local exchange carrier notify customers of 3 10 a rate change under this subsection at least 30 days prior to 3 11 the effective date of the rate change. The board is 3 12 authorized to review a local exchange carrier's operation 3 13 under this option four years after the carrier's election to 3 14 be price-regulated. The local exchange carrier, consumer 3 15 advocate, or any other person may propose for the board's 3 16 approval, a reasonable modification to the price regulation 3 17 requirements in the option. 3 18 The bill also provides that the consumer advocate, in 3 19 calculating an estimate of the return of a local exchange 3 20 carrier operating under price regulation as if the carrier 3 21 were subject to rate-of-return regulation, is not to consider 3 22 the investment, revenues, and expenses associated with the 3 23 sale of classified directory advertising. 3 24 The bill would take effect upon enactment. 3 25 LSB 2372HC 77 3 26 mj/cf/24
Text: HSB00196 Text: HSB00198 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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