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Text: SSB00159                          Text: SSB00161
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Senate Study Bill 160

Bill Text

  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 carrier with fewer than five hundred thousand access
  1  5 lines in this state shall 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 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 2372SC 77
  3 26 mj/cf/24

Text: SSB00159                          Text: SSB00161
Text: SSB00100 - SSB00199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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