Senate File 2265
SENATE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO SSB 3035)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to equitable rate regulation of wholesale and
2 retail telephone services, including jurisdiction of the Iowa
3 utilities board, written complaints filed with the utilities
4 board regarding the reasonableness of an act of a public
5 utility, provision of free directory assistance to blind
6 consumers, and related provisions.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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.
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