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Senate File 2265

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 34A.7, subsection 2, Code 2003, is
  1  2 amended to read as follows:
  1  3    2.  SURCHARGE COLLECTED BY PROVIDERS.  The surcharge shall
  1  4 be collected as part of the access line service provider's
  1  5 periodic billing to a subscriber.  In compensation for the
  1  6 costs of billing and collection, the provider may retain one
  1  7 percent of the gross surcharges collected.  If the
  1  8 compensation is insufficient to fully recover a provider's
  1  9 costs for billing and collection of the surcharge, the
  1 10 deficiency shall be included in the provider's costs for
  1 11 ratemaking purposes to the extent it is reasonable and just
  1 12 under section 476.6.  The surcharge shall be remitted to the
  1 13 E911 service operating authority for deposit into the E911
  1 14 service fund quarterly by the provider.  A provider is not
  1 15 liable for an uncollected surcharge for which the provider has
  1 16 billed a subscriber but not been paid.  The surcharge shall
  1 17 appear as a single line item on a subscriber's periodic
  1 18 billing entitled, "E911 emergency telephone service
  1 19 surcharge".  The E911 service surcharge is not subject to
  1 20 sales or use tax.
  1 21    Sec. 2.  Section 476.1, Code 2003, is amended to read as
  1 22 follows:
  1 23    476.1  APPLICABILITY OF AUTHORITY.
  1 24    1.  The utilities board within the utilities division of
  1 25 the department of commerce shall regulate the rates and
  1 26 services of public utilities to the extent and in the manner
  1 27 hereinafter provided in this chapter.
  1 28    2.  As used in this chapter, "board":
  1 29    a.  "Board" or "utilities board" means the utilities board
  1 30 within the utilities division of the department of commerce.
  1 31    b.  As used in this chapter, "public "Public utility" shall
  1 32 include includes any person, partnership, business
  1 33 association, or corporation, domestic or foreign, owning or
  1 34 operating any facilities for furnishing any of the following:
  1 35    1. (1)  Furnishing gas Gas by piped distribution system or
  2  1 electricity to the public for compensation.
  2  2    2. (2)  Furnishing communications Communications services
  2  3 to the public for compensation.
  2  4    3. (3)  Furnishing water Water by piped distribution system
  2  5 to the public for compensation.
  2  6    3.  a.  The board shall not have direct or indirect rate
  2  7 regulation jurisdiction over the provision of retail telephone
  2  8 services by telephone companies to any of the following:
  2  9    (1)  Business subscribers.
  2 10    (2)  Residential customers in exchanges that include cities
  2 11 having a population of more than twenty thousand where at
  2 12 least three companies provide local exchange services.
  2 13    (3)  Residential customers in exchanges that include cities
  2 14 where another telephone company provides local exchange
  2 15 service using its own facilities.
  2 16    b.  Prior to July 1, 2008, telephone companies shall not
  2 17 increase rates for retail telephone services regulated by the
  2 18 board in an amount greater than the rate of inflation.
  2 19    c.  Rates for basic local exchange service described in
  2 20 paragraph "a" shall not be increased or decreased prior to
  2 21 January 1, 2005.  On or after January 1, 2005, rates for basic
  2 22 local exchange service described in paragraph "a" shall not be
  2 23 increased by more than ten percent per year.
  2 24    d.  This subsection is repealed July 1, 2009.
  2 25    4.  Mutual telephone companies in which at least fifty
  2 26 percent of the users are owners, co-operative telephone
  2 27 corporations or associations, telephone companies having less
  2 28 than fifteen thousand customers and less than fifteen thousand
  2 29 access lines, municipally owned utilities, and unincorporated
  2 30 villages which that own their own distribution systems are not
  2 31 subject to the rate regulation provided for in this chapter.
  2 32    5.  This chapter does not apply to waterworks having less
  2 33 than two thousand customers, municipally owned waterworks,
  2 34 joint water utilities established pursuant to chapter 389,
  2 35 rural water districts incorporated and organized pursuant to
  3  1 chapters 357A and 504A, cooperative water associations
  3  2 incorporated and organized pursuant to chapter 499, or to a
  3  3 person furnishing electricity to five or fewer customers
  3  4 either by secondary line or from an alternate energy
  3  5 production facility or small hydro facility, from electricity
  3  6 that is produced primarily for the person's own use.
  3  7    6.  A telephone company otherwise exempt from rate
  3  8 regulation and having telephone exchange facilities which that
  3  9 cross state lines may elect, in a writing filed with the
  3 10 board, to have its rates regulated by the board.  When a
  3 11 written election has been filed with the board, the board
  3 12 shall assume rate regulation jurisdiction over the company.
  3 13    7.  The jurisdiction of the board under this chapter shall
  3 14 include efforts designed to promote the use of energy
  3 15 efficiency strategies by rate or service-regulated gas and
  3 16 electric utilities.
  3 17    Sec. 3.  Section 476.1D, subsection 6, Code Supplement
  3 18 2003, is amended to read as follows:
  3 19    6.  The board may reimpose rate and service regulation on a
  3 20 deregulated service, or facility, or exchange if it determines
  3 21 the service, or facility, or exchange is no longer subject to
  3 22 effective competition only upon complaint and after a
  3 23 proceeding in which one or more complainants have the burden
  3 24 of proof.
  3 25    Sec. 4.  Section 476.3, subsection 1, Code 2003, is amended
  3 26 to read as follows:
  3 27    1.  A public utility shall furnish reasonably adequate
  3 28 service at rates and charges in accordance with tariffs filed
  3 29 with the board.
  3 30    1A.  a.  When there If a written complaint is filed with
  3 31 the board by any person or body politic, or filed by the board
  3 32 upon its own motion, a written complaint requesting the board
  3 33 to determine the reasonableness of the regulated rates,
  3 34 charges, schedules, service, regulations, or anything done or
  3 35 omitted to be done by a public utility subject to this chapter
  4  1 in contravention of this chapter, the written complaint shall
  4  2 be forwarded by the board to the public utility, which shall
  4  3 be called upon to satisfy the complaint or to answer it in
  4  4 writing within a reasonable time to be specified by the board.
  4  5    b.  Copies of the written complaint forwarded by the board
  4  6 to the public utility and copies of all correspondence from
  4  7 the public utility in response to the complaint shall be
  4  8 provided by the board in an expeditious manner to the consumer
  4  9 advocate.
  4 10    c.  If the board determines the public utility's response
  4 11 is inadequate and there appears to be any reasonable ground
  4 12 for investigating the complaint, the board shall promptly
  4 13 initiate a formal proceeding.
  4 14    d.  If the consumer advocate determines the public
  4 15 utility's response to the complaint is inadequate, the
  4 16 consumer advocate may file a petition with the board which
  4 17 shall promptly initiate a formal proceeding if the board
  4 18 determines that there is any reasonable ground for
  4 19 investigating the complaint.
  4 20    e.  The complainant or the public utility also may petition
  4 21 the board to initiate a formal proceeding which petition shall
  4 22 be granted if the board determines that there is any
  4 23 reasonable ground for investigating the complaint.
  4 24    f.  The formal proceeding may be initiated at any time by
  4 25 the board on its own motion.
  4 26    g.  If a proceeding is initiated upon petition filed by the
  4 27 consumer advocate, complainant, or the public utility, or upon
  4 28 the board's own motion, the board shall set the case for
  4 29 hearing and give notice as it deems appropriate.
  4 30    h.  When If the board, after a hearing held after
  4 31 reasonable notice, finds a public utility's rates, charges,
  4 32 schedules, service, or regulations are unjust, unreasonable,
  4 33 discriminatory, or otherwise in violation of any provision of
  4 34 law, the board shall determine just, reasonable, and
  4 35 nondiscriminatory rates, charges, schedules, service, or
  5  1 regulations to be observed and enforced.
  5  2    Sec. 5.  Section 476.3, subsection 2, unnumbered paragraph
  5  3 2, Code 2003, is amended by striking the unnumbered paragraph.
  5  4    Sec. 6.  Section 476.4, Code 2003, is amended to read as
  5  5 follows:
  5  6    476.4  TARIFFS FILED.
  5  7    1.  a.  Every public utility shall file with the board
  5  8 tariffs showing the rates and charges for its public utility
  5  9 services and the rules and regulations under which such
  5 10 services were are furnished, on April 1, 1963, which.
  5 11    b.  Regulated rates and charges shall be subject to
  5 12 investigation by the board as provided in section 476.3, and
  5 13 upon such investigation the burden of establishing the
  5 14 reasonableness of such rates and charges shall be upon the
  5 15 public utility filing the same.  These filings
  5 16    2.  a.  Filings shall be made under such rules as the board
  5 17 may prescribe within such time and in such form as the board
  5 18 may designate.
  5 19    b.  In prescribing rules and regulations with respect to
  5 20 the form of tariffs, the board shall, in the case of public
  5 21 utilities subject to regulation by any federal agency, give
  5 22 due regard to any corresponding rules and regulations of such
  5 23 federal agency, to the end that unnecessary duplication of
  5 24 effort and expense may be avoided so far as reasonably
  5 25 possible.
  5 26    3.  Each public utility shall keep copies of its tariffs
  5 27 open to public inspection under such rules as the board may
  5 28 prescribe.
  5 29    Every rate, charge, rule and regulation contained in any
  5 30 filing made with the commission on or prior to July 4, 1963,
  5 31 shall be effective as of such date, subject, however, to
  5 32 investigation as herein provided.  If any such filing is made
  5 33 prior to the time the commission prescribes rules as
  5 34 aforesaid, and if such filing does not comply as to form or
  5 35 substance with such rules, then the public utility which filed
  6  1 the same shall within a reasonable time after the adoption of
  6  2 such rules make a new filing or filings complying with such
  6  3 rules, which new filing or filings shall be deemed effective
  6  4 as of July 4, 1963.
  6  5    Sec. 7.  Section 476.4A, unnumbered paragraph 3, Code 2003,
  6  6 is amended to read as follows:
  6  7    The board shall consider the revenues, expenses and
  6  8 investment related to telephone utility services offered
  6  9 without a filed tariff in proceedings under section sections
  6 10 476.3, 476.6 and 476.7.
  6 11    Sec. 8.  Section 476.6, subsection 1, Code Supplement 2003,
  6 12 is amended to read as follows:
  6 13    1.  FILING WITH BOARD.  A public utility subject to rate
  6 14 regulation shall not make effective a new or changed rate,
  6 15 charge, schedule or regulation until the rate, charge,
  6 16 schedule, or regulation has been approved by the board, except
  6 17 as provided in subsections 8 and 10.  A subscriber of a
  6 18 telephone exchange or service, who is declared to be legally
  6 19 blind under section 422.12, subsection 1, paragraph "e", is
  6 20 exempt from any charges for telephone directory assistance
  6 21 that may be approved by the board.
  6 22    Sec. 9.  Section 476.6, subsection 9, Code Supplement 2003,
  6 23 is amended by striking the subsection.
  6 24    Sec. 10.  Section 476.29, subsection 3, Code 2003, is
  6 25 amended to read as follows:
  6 26    3.  A certificate is transferable, subject to approval of
  6 27 the board pursuant to section 476.20, subsection 1, and for
  6 28 purposes of a rate-regulated local exchange utility shall be
  6 29 treated by the board in the same manner as a reorganization
  6 30 pursuant to sections 476.76 and 476.77.
  6 31    Sec. 11.  Section 476.72, subsections 4 and 5, Code 2003,
  6 32 are amended to read as follows:
  6 33    4.  "Public utility" includes only gas or electric rate-
  6 34 regulated public utilities and rate-regulated telephone
  6 35 utilities providing local exchange telecommunication service.
  7  1    5.  "Utility business" means the generation or transmission
  7  2 of electricity or furnishing of gas or furnishing electricity
  7  3 or furnishing rate-regulated communications services to the
  7  4 public for compensation.
  7  5    Sec. 12.  Section 476.96, unnumbered paragraph 1, Code
  7  6 2003, is amended to read as follows:
  7  7    As used in section 476.95, this section, and sections
  7  8 476.97 476.100 through 476.102, unless the context otherwise
  7  9 requires:
  7 10    Sec. 13.  Section 476.97, Code Supplement 2003, is
  7 11 repealed.
  7 12    Sec. 14.  Sections 476.98 and 476.99, Code 2003, are
  7 13 repealed.  
  7 14                           EXPLANATION
  7 15    This bill modifies several provisions in Code chapter 476,
  7 16 regarding utilities, specifically as it relates to the
  7 17 regulation of telephone service rates by the utilities board
  7 18 of the department of commerce.
  7 19    With a sunset provision of July 1, 2009, the bill modifies
  7 20 Code section 476.1 to provide that the utilities board does
  7 21 not have jurisdiction over certain retail telephone services
  7 22 provided by telephone companies and to restrict the ability of
  7 23 telephone companies to raise certain regulated rates.  The
  7 24 bill provides that the board may reimpose rate and service
  7 25 regulation on an exchange after a complainant has met the
  7 26 burden of proof in a proceeding regarding the reimposition of
  7 27 regulation.  The bill also divides the existing Code language
  7 28 into subsections.
  7 29    The bill modifies Code sections 476.3 and 476.4 to provide
  7 30 that the procedure provided for determining the reasonableness
  7 31 of rates applies to only regulated rates.  The bill also
  7 32 divides the existing Code language into paragraphs.
  7 33    Code section 476.6 is amended to provide that a blind
  7 34 customer is exempt from directory assistance charges and
  7 35 strikes language related to the rate regulation of telephone
  8  1 services.
  8  2    Code sections 34A.7, 476.4A, 476.29, 476.72, and 476.96 are
  8  3 amended to delete a reference to rate-regulated telephone
  8  4 utilities.
  8  5    Code sections 476.97, 476.98, and 476.99, dealing with rate
  8  6 regulation, are repealed.  
  8  7 LSB 5437SV 80
  8  8 kk/sh/8
     

Text: SF02264                           Text: SF02266
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Bills and Amendments: General Index     Bill History: General Index

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