Text: SF02301 Text: SF02303 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 476.97, subsection 2, Code 1997, is 1 2 amended to read as follows: 1 3 2. The board, after notice and opportunity for hearing, 1 4 may approve, modify, or reject the plan. The board shall 1 5 approve, modify, or reject the plan by no later than ninety 1 6 days after the date the plan is filed. The local exchange 1 7 carrier shall have ten days to accept or reject any board 1 8 modifications to its plan. If the local exchange carrier 1 9 rejects a modification to its plan, the board shall reject the 1 10 plan without prejudice to the local exchange carrier to submit 1 11 another plan. 1 12 Sec. 2. Section 476.97, subsection 3, paragraph a, 1 13 subparagraphs (1), (3), and (4), Code 1997, are amended to 1 14 read as follows: 1 15 (1) Establishing and changing prices, terms, and 1 16 conditions for basic communications services. The initial 1 17 plan for price regulation must include a proposal, which the 1 18 board shall approve, for reducing the local exchange carrier's 1 19 average intrastate access service rates to the local exchange 1 20 carrier's average interstate access service rates in effect as 1 21 of the last day of the calendar year immediately preceding the 1 22 date of filing of the plan, as follows: 1 23 (a) A local exchange carrier with five hundred thousand or 1 24 more access lines in this state shall reduce its average 1 25 intrastate access service rates by at leastfiftyone hundred 1 26 percent of the difference between average intrastate access 1 27 service rates and average interstate access service rates as 1 28 of the date that the planis filed and further reduce such1 29rates to the average interstate access service rates within1 30ninety days of the date that the planbecomes effective. 1 31 (b) A local exchange carrier with fewer than five hundred 1 32 thousand but seventy-five thousand or more access lines in 1 33 this state shall reduce its average intrastate access service 1 34 rates to its average interstate access service rates in 1 35 increments of at least twenty-five percent, with the initial 2 1 reduction to take effect on approval of the plan and equal 2 2 annual reductions on each anniversary of the approval during 2 3 the first three years that its plan is in effect. 2 4 (c) A local exchange carrier with fewer than seventy-five 2 5 thousand access lines in this state shall reduce its average 2 6 intrastate access service rates to its average interstate 2 7 access service rates with equal annual reductions during a 2 8 period beginning no more than two years and ending no more 2 9 than five years from the plan's inception. 2 10 (3) The plan shall also provide that the initial prices 2 11 for basic communications services shall besixthree percent 2 12 less than the rates approved and in effect at the time the 2 13 local exchange carrier files its plan. A local exchange 2 14 carrier which elects to reduce its rates bysixthree percent 2 15 shall not, at a later time, increase its rates for basic 2 16 communications services as a result of the carrier's 2 17 compliance with the board's rules relating to unbundling. In 2 18 lieu of thesixthree percent reduction, and prior to the 2 19 adoption of rules relating to unbundling pursuant to section 2 20 476.101, subsection 4, paragraph "a", subparagraph (1), the 2 21 local exchange carrier may request and the board may establish 2 22 a regulated revenue requirement in a rate proceeding under 2 23 section 476.3 or 476.6 commenced after July 1, 1995. After 2 24 the determination of the local exchange carrier's regulated 2 25 revenue requirement pursuant to the rate proceeding, the local 2 26 exchange carrier shall not immediately implement rates 2 27 designed to recover that regulated revenue requirement. 2 28 Following the adoption of rules relating to unbundling 2 29 pursuant to section 476.101, subsection 4, paragraph "a", 2 30 subparagraph (1), the local exchange carrier shall commence a 2 31 tariff proceeding for the approval of tariffs implementing 2 32 such unbundling. The board has six months to complete this 2 33 tariff proceeding and determine the local exchange carrier's 2 34 final unbundled rates. The local exchange carrier shall carry 2 35 forward the regulated revenue requirement determined by the 3 1 board pursuant to the rate proceeding and design rates that 3 2 comply with the board's rules relating to unbundling that 3 3 recover the regulated revenue requirement, and that implement 3 4 the board's approved rate design established in the tariff 3 5 proceeding. 3 6 In lieu of taking thesixthree percent reduction, a local 3 7 exchange carrier that submits a plan for price regulation 3 8 after the board adopts rules relating to unbundling may file a 3 9 rate proceeding under section 476.3 or 476.6 and the board may 3 10 approve rates designed to comply with those rules which allow 3 11 the carrier to recover the established regulated revenue 3 12 requirement and that implement the board's approved rate 3 13 design established in the tariff proceeding. 3 14 (4) The plan shall provide for both increases and 3 15 decreases in the prices for basic communications services 3 16 reflecting annual changes in inflation and productivity. 3 17 Prior to January 1,19982000, the board shall use the gross 3 18 domestic product price index, as published by the federal 3 19 government, for an inflation measure, and two and six-tenths 3 20 percentage points for a productivity measure.AfterOn or 3 21 after January 1,19982000, the board by rule may adopt 3 22 current measures of inflation and productivity. 3 23 Sec. 3. Section 476.98, Code 1997, is amended to read as 3 24 follows: 3 25 476.98 EARNINGS CALCULATION AND REPORT. 3 26 The consumer advocate shall calculate an estimate of the 3 27 return of a local exchange carrier operating under price 3 28 regulation pursuant to section 476.97 as if the carrier were 3 29 subject to rate-of-return regulation. The calculation shall 3 30 be based upon the annual report of such carrier and other 3 31 information provided to the consumer advocate by the carrier. 3 32 The calculation shall be made every two years beginning 3 33 following the end of the second calendar year after the year 3 34 in which the plan becomes effective. Notwithstanding section 3 35 476.1D, subsection 4, the consumer advocate shall make two 4 1 calculations pursuant to this section with one calculation 4 2 taking into account the investment, revenues, and expenses 4 3 associated with the sale of classified directory advertising, 4 4 and one calculation not taking into account such investment, 4 5 revenues, and expenses. The consumer advocate shall provide a 4 6 written report to the general assembly including the results 4 7 of this calculation on or before July 1 of the year 4 8 immediately following the two-year period for which a 4 9 calculation is made. If, after a review of the information 4 10 used to make the calculation required in this section, the 4 11 consumer advocate determines that the public interest would be 4 12 better served by a different form of rate regulation, the 4 13 consumer advocate shall provide a recommendation that the 4 14 general assembly direct the utilities board to implement a 4 15 different form of rate regulation. 4 16 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 4 17 immediate importance, takes effect upon enactment. 4 18 EXPLANATION 4 19 This bill amends portions of Code section 476.97 applicable 4 20 to a local exchange carrier with 500,000 or more access lines 4 21 electing to operate under price regulation. The bill provides 4 22 that the utility board must approve, modify, or reject the 4 23 plan of any local exchange carrier to elect price regulation 4 24 by no later than 90 days after such plan is filed with the 4 25 board. The bill provides that a price regulation plan for a 4 26 local exchange carrier with 500,000 or more access lines must 4 27 provide for the reduction of its average intrastate access 4 28 service rates by at least 100 percent of the difference 4 29 between average intrastate access service rates and average 4 30 interstate access service rates as of the date the plan 4 31 becomes effective. Currently, such rates must be reduced by 4 32 50 percent of such difference between intrastate and 4 33 interstate access service rates with a further reduction to 4 34 the average interstate access service rates within 90 days of 4 35 the date the plan becomes effective. 5 1 The bill also provides that initial prices for basic 5 2 communications services shall be three percent less than rates 5 3 in effect at the time a local exchange carrier with 500,000 or 5 4 more access lines files its plan. Currently, such reduction 5 5 in prices is to be six percent less than such rates. 5 6 The bill provides that the board, for purposes of 5 7 determining increases and decreases in prices for basic 5 8 communications services under the plan reflecting annual 5 9 changes in inflation and productivity, is to use the gross 5 10 domestic product price index until January 1, 2000, after 5 11 which the board is to adopt current measures of inflation and 5 12 productivity. Currently, the board is to use the gross 5 13 domestic product price index for such determinations until 5 14 January 1, 1998. 5 15 The bill also provides that the consumer advocate, in 5 16 calculating an estimate of the return of a local exchange 5 17 carrier operating under price regulation as if the carrier 5 18 were subject to rate-of-return regulation, is to make two 5 19 calculations with one calculation considering the investment, 5 20 revenues, and expenses associated with the sale of classified 5 21 directory advertising, and one calculation not considering 5 22 such investment, revenues, and expenses. 5 23 The bill takes effect upon enactment. 5 24 LSB 3668XS 77 5 25 mj/jl/8.1
Text: SF02301 Text: SF02303 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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