House Resolution 175 - Introduced

PAG LIN





  1  1                HOUSE RESOLUTION NO. ___
  1  2                       BY  BAUDLER
  1  3 A Resolution requesting the Legislative Council to
  1  4    establish an interim committee to conduct a study of
  1  5    issues related to competition in rural telephone
  1  6    exchanges.
  1  7    WHEREAS, during the 2005 Legislative Session, the
  1  8 General Assembly passed and the Governor signed a bill
  1  9 deregulating most telephone rates in the state of
  1 10 Iowa; and
  1 11    WHEREAS, on December 23, 2004, the Iowa Utilities
  1 12 Board deregulated local rates in the following rural
  1 13 exchanges:  Laurens, Mapleton, Spencer, Storm Lake,
  1 14 Whiting, Armstrong, Coon Rapids, Delmar, Forest City,
  1 15 Harlan, Lowden, Oxford, Oxford Junction, Primghar,
  1 16 Saint Ansgar, Solon, Stacyville, Stanwood, and Tiffin;
  1 17 and
  1 18    WHEREAS, on December 4, 2005, the Iowa Utilities
  1 19 Board deregulated the single line flat=rates in the
  1 20 following rural exchanges:  Alta, Belle Plaine,
  1 21 Bennett, Cambridge, Carter Lake, Greene, Grundy
  1 22 Center, Guthrie Center, Hartley, Manning, Marble Rock,
  1 23 Marengo, Onawa, Orange City, Osage, Oyens, Paullina,
  1 24 Reinbeck, Slater, and Wapello; and
  1 25    WHEREAS, the Iowa Utilities Board, in the order
  1 26 deregulating the rates in these areas, stated that it
  1 27 intended to monitor the rates in the deregulated areas
  1 28 and would act appropriately for any attempt by one
  1 29 provider to determine or control prices; and
  1 30    WHEREAS, a petition filed with the Iowa Utilities
  2  1 Board specifically alleged that a company offering
  2  2 local exchange service was engaging in pricing service
  2  3 far below prices charged in regulated areas and was
  2  4 improperly subsidizing deregulated services; and
  2  5    WHEREAS, the Iowa Utilities Board dismissed the
  2  6 complaint, stating it lacked jurisdiction because the
  2  7 exchanges had been deregulated; and
  2  8    WHEREAS, price predation is harmful to consumer
  2  9 choice and to the ability of rural Iowans to receive
  2 10 quality telecommunications services at a reasonable
  2 11 price in the long run; and
  2 12    WHEREAS, it should be determined whether an
  2 13 affordable forum exists for small rural independent
  2 14 telephone utilities to challenge price predation; and
  2 15    WHEREAS, it should be determined whether the
  2 16 deregulation of rural telephone exchange services is
  2 17 leading to price predation; NOW THEREFORE,
  2 18    BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES,
  2 19 That the Legislative Council is requested to create an
  2 20 interim committee to study the issues related to
  2 21 competition in rural telephone exchanges that have
  2 22 been deregulated since December 23, 2004, including
  2 23 any issue raised but not resolved in complaints made
  2 24 to the Iowa Utilities Board regarding alleged price
  2 25 predation in rural exchanges described in this
  2 26 Resolution; and
  2 27    BE IT FURTHER RESOLVED, That the interim committee
  2 28 should be directed to submit its findings to the
  2 29 Governor and the General Assembly, which findings may
  2 30 include recommendations for legislation to address
  3  1 predatory pricing and other anticompetitive behavior.
  3  2 LSB 6713HH 81
  3  3 kk:nh/gg/14