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PAG LIN 1 1 Section 1. Section 476.97, subsection 3, paragraph a, Code 1 2 1997, is amended by adding the following new subparagraph: 1 3 NEW SUBPARAGRAPH. (1A) (a) Notwithstanding subparagraph 1 4 (1), a local exchange carrier which enters into a plan on or 1 5 after July 1, 1997, shall immediately reduce its average 1 6 intrastate access service rates by at least fifty percent of 1 7 the difference between average intrastate access service rates 1 8 and average interstate access service rates as of the date the 1 9 plan is filed, and further reduce such rates by the remaining 1 10 amount of the difference in equal annual reductions on the 1 11 anniversary of the filing of the plan during the first two 1 12 years that its plan is in effect. 1 13 (b) Notwithstanding subparagraph subdivision (a), any 1 14 further reduction of the local exchange carrier's average 1 15 intrastate rates after the initial reduction at the time of 1 16 filing of the plan is mandatory only if the utilities board 1 17 finds that long distance carriers whose access charges are 1 18 reduced have reduced the rates charged to its customers, 1 19 including both residential and business in proportion to the 1 20 percentage of business each class of customer represents to 1 21 the long distance carrier, by a total amount at least equal to 1 22 the total amount of the reduction in such access charges. 1 23 Sec. 2. Section 476.97, subsection 3, paragraph a, 1 24 subparagraph (3), Code 1997, is amended to read as follows: 1 25 (3) The plan shall also provide that the initial prices 1 26 for basic communications services shall besixthree percent 1 27 less than the rates approved and in effect at the time the 1 28 local exchange carrier files its plan. A local exchange 1 29 carrier which elects to reduce its rates bysixthree percent 1 30 shall not, at a later time, increase its rates for basic 1 31 communications services as a result of the carrier's 1 32 compliance with the board's rules relating to unbundling. In 1 33 lieu of thesixthree percent reduction, and prior to the 1 34 adoption of rules relating to unbundling pursuant to section 1 35 476.101, subsection 4, paragraph "a", subparagraph (1), the 2 1 local exchange carrier may request and the board may establish 2 2 a regulated revenue requirement in a rate proceeding under 2 3 section 476.3 or 476.6 commenced after July 1, 1995. After 2 4 the determination of the local exchange carrier's regulated 2 5 revenue requirement pursuant to the rate proceeding, the local 2 6 exchange carrier shall not immediately implement rates 2 7 designed to recover that regulated revenue requirement. 2 8 Following the adoption of rules relating to unbundling 2 9 pursuant to section 476.101, subsection 4, paragraph "a", 2 10 subparagraph (1), the local exchange carrier shall commence a 2 11 tariff proceeding for the approval of tariffs implementing 2 12 such unbundling. The board has six months to complete this 2 13 tariff proceeding and determine the local exchange carrier's 2 14 final unbundled rates. The local exchange carrier shall carry 2 15 forward the regulated revenue requirement determined by the 2 16 board pursuant to the rate proceeding and design rates that 2 17 comply with the board's rules relating to unbundling that 2 18 recover the regulated revenue requirement, and that implement 2 19 the board's approved rate design established in the tariff 2 20 proceeding. 2 21 In lieu of taking thesixthree percent reduction, a local 2 22 exchange carrier that submits a plan for price regulation 2 23 after the board adopts rules relating to unbundling may file a 2 24 rate proceeding under section 476.3 or 476.6 and the board may 2 25 approve rates designed to comply with those rules which allow 2 26 the carrier to recover the established regulated revenue 2 27 requirement and that implement the board's approved rate 2 28 design established in the tariff proceeding. 2 29 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 2 30 immediate importance, takes effect upon enactment. 2 31 EXPLANATION 2 32 This bill provides that a local exchange carrier with 2 33 500,000 or more access lines which enters into a plan for 2 34 price regulation on or after July 1, 1997, must immediately 2 35 reduce its average intrastate access service rates by at least 3 1 50 percent of the difference between average intrastate access 3 2 service rates and average interstate access service rates as 3 3 of the date the plan is filed, and further reduce such rates 3 4 by equal annual reductions on the anniversary of the filing of 3 5 the plan during the first two years of the plan. The 3 6 subsequent reductions are not mandated only if the utilities 3 7 board finds that long distance carriers are reducing their 3 8 rates to their customers by an amount at least equal to the 3 9 amount of the reduction in the access charges charged to such 3 10 long distance carriers. 3 11 The bill also provides that the initial prices for basic 3 12 communications services provided by the local exchange carrier 3 13 entering into the plan must be 3 percent less than the rates 3 14 approved and in effect at the time the local exchange carrier 3 15 files a plan. Currently, a local exchange carrier with 3 16 500,000 or more access lines which enters into a plan must 3 17 reduce such prices by 6 percent. 3 18 The bill would take effect upon enactment. 3 19 LSB 2372SV 77 3 20 mj/cf/24
Text: SF00526 Text: SF00528 Text: SF00500 - SF00599 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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