Text: SF00428 Text: SF00430 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 SENATE FILE 429 1 2 1 3 AN ACT 1 4 RELATING TO PRICE REGULATION FOR LOCAL EXCHANGE CARRIERS, 1 5 INCLUDING THE MODIFICATION OR ADJUSTMENT OF CERTAIN RATES, 1 6 MAKING AN APPROPRIATION, AND PROVIDING AN EFFECTIVE DATE. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 476.97, subsection 11, paragraph e, 1 11 subparagraph (1), Code 2001, is amended by striking the 1 12 subparagraph and inserting in lieu thereof the following: 1 13 (1) A price-regulated local exchange carrier shall not 1 14 increase its rates for basic communications services, for a 1 15 period of twelve months after electing to become price 1 16 regulated. To the extent necessary, rates for basic services 1 17 may be increased to carry out the purpose of any rules that 1 18 may be adopted by the board relating to the terms and 1 19 conditions of unbundled services and interconnection. A 1 20 price-regulated local exchange carrier may increase its rates 1 21 for basic communications services following the initial 1 22 twelve-month period, to the extent that the change in its 1 23 aggregate revenue weighted prices does not exceed the most 1 24 recent annual change in the gross domestic product price 1 25 index, as published by the federal government. If application 1 26 of that formula achieves a negative result, prices shall be 1 27 reduced so that the cumulative price change for basic 1 28 services, including prior price reductions in these services, 1 29 achieves the negative result. The board by rule may adopt 1 30 different measures of inflation if they are found to be more 1 31 reflective of the individual price-regulated carriers. 1 32 Sec. 2. Section 476.97, subsection 11, paragraph g, 1 33 subparagraph (4), Code 2001, is amended by striking the 1 34 subparagraph and inserting in lieu thereof the following: 1 35 (4) Rates may be adjusted by the board to reflect any 2 1 changes in revenues, expenses, and investment due to exogenous 2 2 factors beyond the control of the local exchange carrier, 2 3 including, but not limited to, the effects of local 2 4 competition. The board shall have ninety days to consider 2 5 rate changes proposed under this subparagraph, but for good 2 6 cause may grant one or more extensions in thirty-day 2 7 increments, not to exceed a total of one hundred eighty days. 2 8 Sec. 3. Section 476.97, subsection 11, paragraph h, Code 2 9 2001, is amended to read as follows: 2 10 h. The board may review a local exchange carrier's 2 11 operation under this subsection, with notice and an 2 12 opportunity for hearing, after four years of the carrier's 2 13 election to be price-regulated. The local exchange carrier, 2 14 consumer advocate, or any person may propose, and the board 2 15 may approve, any reasonable modifications to the price- 2 16 regulation requirements in this subsection as a result of the 2 17 specific carrier review,except that suchwith the following 2 18 limitations: 2 19 (1) Such modifications shall not require a reduction in 2 20 the rates for any basic communications service or a return to 2 21 rate-base, rate-of-return regulation. 2 22 (2) Such proposals for modifications under this paragraph 2 23 "h" are limited to no more than one every three years. 2 24 The board shall approve, or approve subject to 2 25 modification, a proposal for modification within one hundred 2 26 eighty days of filing, but for good cause may grant one 2 27 extension of sixty days, not to exceed a total of two hundred 2 28 forty days. Reasonable modifications may include increases 2 29 without offsetting decreases in any rate for basic and 2 30 nonbasic communications service of the carrier. In reviewing 2 31 the carrier's proposal, the board shall consider, but not be 2 32 limited to, potential rate consolidations, the impact of 2 33 competition or other external factors since election of price 2 34 regulation, the impact of the proposal on the carrier's 2 35 ability to attract capital, and the impact of the proposal on 3 1 the ability of the carrier to deploy advanced 3 2 telecommunications services. 3 3 Sec. 4. Section 476.97, subsection 11, Code 2001, is 3 4 amended by adding the following new paragraphs: 3 5 NEW PARAGRAPH. j. Upon the request of a local exchange 3 6 carrier, the board shall, when required by this subsection, 3 7 grant the carrier temporary authority to place in effect 3 8 seventy-five percent, or such lesser amount as the carrier may 3 9 request, of the requested increases in rates, charges, 3 10 schedules, or regulations by filing with the board a bond 3 11 conditioned upon the refund in a manner to be prescribed by 3 12 the board of any amounts collected from any customer class in 3 13 excess of the amounts which would have been collected under 3 14 rates, charges, schedules, or regulations finally approved by 3 15 the board. The board shall approve a request for temporary 3 16 authority within thirty days after the date of filing of the 3 17 request. The decision shall be effective immediately. 3 18 The board shall determine the rate of interest to be paid 3 19 by a public utility to persons receiving refunds. The 3 20 interest rate to be applied to refunds of moneys collected 3 21 subject to refund under this subsection is one percent per 3 22 annum plus the average quarterly interest rate at commercial 3 23 banks for twenty-four-month loans for personal expenditures, 3 24 as determined by the board, compounded annually. The board 3 25 shall consider federal reserve statistical release G.19 or its 3 26 equivalent when determining interest to be paid under this 3 27 subsection. 3 28 NEW PARAGRAPH. k. The board and the consumer advocate may 3 29 employ additional temporary staff, or may contract for 3 30 professional services with persons who are not state 3 31 employees, as the board and consumer advocate deem necessary 3 32 to review a local exchange carrier's operations, proposal for 3 33 modifications, rate change proposal, or proposed changes in 3 34 aggregate revenue weighted prices pursuant to this subsection. 3 35 Beginning July 1, 2002, there is appropriated out of any funds 4 1 in the state treasury not otherwise appropriated, such sums as 4 2 may be necessary to enable the board to hire additional staff 4 3 and contract for services under this subsection. The costs of 4 4 the additional staff and services shall be assessed to the 4 5 local exchange carrier pursuant to the procedures in sections 4 6 475A.6 and 476.10. 4 7 Sec. 5. EFFECTIVE DATE. This Act, being deemed of 4 8 immediate importance, takes effect upon enactment. 4 9 4 10 4 11 4 12 MARY E. KRAMER 4 13 President of the Senate 4 14 4 15 4 16 4 17 BRENT SIEGRIST 4 18 Speaker of the House 4 19 4 20 I hereby certify that this bill originated in the Senate and 4 21 is known as Senate File 429, Seventy-ninth General Assembly. 4 22 4 23 4 24 4 25 MICHAEL E. MARSHALL 4 26 Secretary of the Senate 4 27 Approved , 2002 4 28 4 29 4 30 4 31 THOMAS J. VILSACK 4 32 Governor
Text: SF00428 Text: SF00430 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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