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First Substitute H.B. 320

Representative David Ure proposes to substitute the following bill:


             1     
PUBLIC UTILITY AMENDMENTS

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: David Ure

             5      AN ACT RELATING TO PUBLIC UTILITIES; SPECIFYING THE DUTIES OF THE PUBLIC
             6      SERVICE COMMISSION; CREATING AND PRESCRIBING DUTIES OF THE OFFICE OF
             7      THE PUBLIC ADVOCATE AND THE ADVISORY BOARD; REPEALING SECTIONS
             8      RELATING TO THE DIVISION OF PUBLIC UTILITIES AND THE COMMITTEE OF
             9      CONSUMER SERVICES; PRESCRIBING A BALANCING TEST FOR THE
             10      DETERMINATION OF WHAT IS JUST AND REASONABLE AND IN CARRYING OUT
             11      DUTIES; ENACTING AND MODIFYING PROVISIONS FOR INFORMAL AND
             12      EXPEDITIOUS RESOLUTION OF ISSUES; CLARIFYING THE COMMISSION'S USE OF A
             13      TEST YEAR IN RATE CASES; AMENDING THE PROCEDURE FOR RECOVERING
             14      CERTAIN FUEL AND ENERGY COSTS; REPLACING THE UTILITY GROSS PROCEEDS
             15      FEE WITH THE UTILITY REGULATION TAX; MAKING TECHNICAL CHANGES;
             16      PROVIDING AN EFFECTIVE DATE; AND PROVIDING A PROCEDURE FOR THE
             17      TRANSITION PERIOD.
             18      This act affects sections of Utah Code Annotated 1953 as follows:
             19      AMENDS:
             20          13-1-2, as last amended by Chapter 313, Laws of Utah 1994
             21          54-1-1, as last amended by Chapter 246, Laws of Utah 1983
             22          54-1-3, as last amended by Chapter 246, Laws of Utah 1983
             23          54-1-6, as last amended by Chapters 101 and 122, Laws of Utah 1988
             24          54-1-6.5, as enacted by Chapter 246, Laws of Utah 1983
             25          54-1-7, as last amended by Chapter 246, Laws of Utah 1983


             26          54-1-10, as last amended by Chapter 246, Laws of Utah 1983
             27          54-1-11, as enacted by Chapter 246, Laws of Utah 1983
             28          54-3-1, as last amended by Chapter 206, Laws of Utah 1977
             29          54-3-21, Utah Code Annotated 1953
             30          54-4-1.1, as enacted by Chapter 50, Laws of Utah 1984
             31          54-4-4, as last amended by Chapter 166, Laws of Utah 1975
             32          54-7-1, as last amended by Chapter 161, Laws of Utah 1987
             33          54-7-1.5, as enacted by Chapter 246, Laws of Utah 1983
             34          54-7-12, as last amended by Chapter 170, Laws of Utah 1996
             35          54-7-15, as last amended by Chapter 161, Laws of Utah 1987
             36          54-8b-13, as enacted by Chapter 141, Laws of Utah 1990
             37          54-8b-17, as enacted by Chapter 96, Laws of Utah 1998
             38          54-8b-18, as enacted by Chapter 113, Laws of Utah 1999
             39          67-1-13, as enacted by Chapter 307, Laws of Utah 1999
             40      ENACTS:
             41          54-1-6.7, Utah Code Annotated 1953
             42          54-4-37, Utah Code Annotated 1953
             43          54-5a-1, Utah Code Annotated 1953
             44          54-5a-2, Utah Code Annotated 1953
             45          54-5a-3, Utah Code Annotated 1953
             46          54-5a-4, Utah Code Annotated 1953
             47          54-7-11.5, Utah Code Annotated 1953
             48          54-10a-1, Utah Code Annotated 1953
             49          54-10a-2, Utah Code Annotated 1953
             50          54-10a-3, Utah Code Annotated 1953
             51          54-10a-4, Utah Code Annotated 1953
             52          54-10a-5, Utah Code Annotated 1953
             53          54-10a-6, Utah Code Annotated 1953
             54          54-10a-7, Utah Code Annotated 1953
             55          54-10a-8, Utah Code Annotated 1953
             56      REPEALS:


             57          54-4-1.5, as enacted by Chapter 246, Laws of Utah 1983
             58          54-4a-1, as last amended by Chapter 225, Laws of Utah 1989
             59          54-4a-2, as last amended by Chapter 225, Laws of Utah 1989
             60          54-4a-3, as last amended by Chapter 122, Laws of Utah 1988
             61          54-4a-4, as enacted by Chapter 246, Laws of Utah 1983
             62          54-4a-5, as enacted by Chapter 246, Laws of Utah 1983
             63          54-4a-6, as enacted by Chapter 246, Laws of Utah 1983
             64          54-5-1.5, as last amended by Chapter 170, Laws of Utah 1996
             65          54-5-2, as last amended by Chapter 214, Laws of Utah 1993
             66          54-5-3, as last amended by Chapter 214, Laws of Utah 1993
             67          54-5-4, Utah Code Annotated 1953
             68          54-8b-12, as last amended by Chapter 122, Laws of Utah 1997
             69          54-10-1, as enacted by Chapter 54, Laws of Utah 1977
             70          54-10-2, as last amended by Chapter 243, Laws of Utah 1996
             71          54-10-3, as last amended by Chapter 243, Laws of Utah 1996
             72          54-10-4, as enacted by Chapter 54, Laws of Utah 1977
             73          54-10-4.5, as enacted by Chapter 216, Laws of Utah 1981
             74          54-10-5, as last amended by Chapters 20 and 215, Laws of Utah 1995
             75          54-10-6, as enacted by Chapter 54, Laws of Utah 1977
             76          54-10-7, as last amended by Chapter 20, Laws of Utah 1995
             77      This act enacts uncodified material.
             78      Be it enacted by the Legislature of the state of Utah:
             79          Section 1. Section 13-1-2 is amended to read:
             80           13-1-2. Creation and functions of department -- Divisions created -- Fees.
             81          (1) (a) There is created the Department of Commerce.
             82          (b) The department shall execute and administer state laws regulating business activities
             83      and occupations affecting the public interest.
             84          (2) Within the department the following divisions are created:
             85          (a) the Division of Occupational and Professional Licensing;
             86          (b) the Division of Real Estate;
             87          (c) the Division of Securities;


             88          (d) the [Division of Public Utilities] Office of the Public Advocate;
             89          (e) the Division of Consumer Protection; and
             90          (f) the Division of Corporations and Commercial Code.
             91          (3) (a) Unless otherwise provided by statute, the department may adopt a schedule of fees
             92      assessed for services provided by the department by following the procedures and requirements
             93      of Section 63-38-3.2 .
             94          (b) The department shall submit each fee established in this manner to the Legislature for
             95      its approval as part of the department's annual appropriations request.
             96          (c) (i) All fees collected by each division and by the department shall be deposited in a
             97      restricted account within the General Fund known as the Commerce Service Fund.
             98          (ii) At the end of each fiscal year, the director of the Division of Finance shall transfer into
             99      the General Fund any fee collections that are greater than the department's legislative appropriation
             100      for that year.
             101          (d) The department may not charge or collect any fee nor expend monies from this fund
             102      without approval by the Legislature.
             103          Section 2. Section 54-1-1 is amended to read:
             104           54-1-1. Establishment of commission -- Functions.
             105          (1) The Public Service Commission [of Utah] is established as an independent agency. The
             106      [Public Service] commission is charged with discharging the duties and exercising the legislative,
             107      adjudicative, and rulemaking powers committed to it by law and may sue and be sued in its own
             108      name.
             109          (2) In the discharge of its duties under this title, the commission shall balance the interests
             110      of consumers of public utility services in the state and public utilities providing service in the state
             111      by considering factors h AS REQUIRED BY LAW h including:
             112          (a) consumers obtaining safe, efficient, and reliable utility service at a fair price h BASED
             112a      ON THE UTILITY'S COST OF PROVIDING SERVICE h ; and
             113          (b) reasonable opportunities for a public utility to achieve earnings that are sufficient to:
             114          (i) assure confidence in the financial integrity and well-being of the public utility; and
             115          (ii) yield returns to equity holders commensurate with returns on investments in other
             116      business enterprises having corresponding risks and uncertainties.
             117          (3) In balancing the interests of consumers and public utilities, the commission:
             118          (a) shall resolve matters subject to its jurisdiction promptly, fairly, and, if possible, in a


             119      nonadversarial manner; and
             120          (b) may consider the following:
             121          (i) promoting the safe, healthy, economic, efficient, and reliable operation of public
             122      utilities and their services, instrumentalities, equipment, and facilities;
             123          (ii) providing reasonable classifications, rules, regulations, practices, and service of public
             124      utilities;
             125          (iii) making the regulatory process as simple and understandable as possible so that it is:
             126          (A) acceptable to the public;
             127          (B) feasible, expeditious, and efficient to apply; and
             128          (C) designed to minimize controversies over interpretation and application;
             129          (iv) promoting efficient management and operation of public utilities;
             130          (v) providing for fair apportionment of public utility charges among customer categories
             131      and individual customers and preventing undue discrimination in rate relationships;
             132          (vi) promoting stability in prices for customers and financial stability for utilities from year
             133      to year;
             134          (vii) protecting against wasteful use of public utility services;
             135          (viii) providing methods of reducing wide periodic variations in the demand for products,
             136      commodities, or services;
             137          (ix) encouraging conservation of resources and energy;
             138          (x) the cost of providing service to each category of customer;
             139          (xi) the economic impact of charges on each category of customer; and
             140          (xii) the well-being of the state.
             141          (4) When applying a just and reasonable standard in the performance of its duties under
             142      this title, the commission shall balance the interests of consumers and the public utility as
             143      prescribed in this section.
             144          (5) If any provision relating to the balancing of interests in this section, Subsection
             145      54-1-6 (5), Subsection 54-1-6.5 (2), Subsection 54-3-1 (4), or Section 54-10a-6 conflicts with Title
             146      54, Chapter 8b, Public Telecommunications Law, then the provisions in Title 54, Chapter 8b,
             147      Public Telecommunications Law, shall control.
             148          Section 3. Section 54-1-3 is amended to read:
             149           54-1-3. Transaction of business by commissioners -- Quorum -- Proceedings by less


             150      than majority or administrative law judge -- Effect of actions.
             151          (1) (a) A majority of the commissioners shall constitute a quorum for:
             152          (i) the transaction of any business[, for];
             153          (ii) the performance of any duty; or [for]
             154          (iii) the exercise of any power of the commission.
             155          (b) Any action taken by a majority of the commission shall be [deemed] considered the
             156      action of the commission. [Any]
             157          (c) A vacancy in the commission [shall] does not impair the right of the remaining
             158      commissioners to exercise [all] the powers of the commission [so long as] if a majority of the
             159      commission remains.
             160          (d) The commission may hold hearings at any time or place within or without the state.
             161          (2) [The] (a) Except as provided in Subsection (2)(b), the following proceedings shall be
             162      heard by [at least] a majority of the commissioners:
             163          [(a) General] (i) general rate proceedings to establish rates for public utilities [which] that
             164      have annual revenues generated from Utah utility service in excess of $200,000,000; or
             165          [(b) Any] (ii) any proceeding which the commission determines involves an issue of
             166      significant public interest.
             167          (b) If a commission proceeding requiring a majority has commenced and the unavoidable
             168      absence of one or more commissioners results in less than a majority being available to continue
             169      the proceeding, the proceeding may continue before a single commissioner or specified
             170      administrative law judge only upon agreement of the involved public utility and, if it is a party, the
             171      [Division of Public Utilities] Office of the Public Advocate.
             172          (3) Any other investigation, inquiry, hearing, or proceeding which the commission has
             173      power to undertake may be conducted before less than a majority of the commission or before an
             174      administrative law judge appointed by the commission.
             175          (4) [All proceedings] (a) Any proceeding conducted before less than a majority of the
             176      commission or before an administrative law judge shall be [deemed proceedings] considered a
             177      proceeding of the commission; and
             178          (b) the findings, orders, and decisions made by less than a majority of the commission or
             179      by an administrative law judge, when approved and confirmed by the commission and filed in its
             180      office, shall be [deemed] considered findings, orders, and decisions of the commission and shall


             181      have the same effect as if originally made by the commission.
             182          Section 4. Section 54-1-6 is amended to read:
             183           54-1-6. Employment of staff -- Status and compensation -- Employees not to be
             184      parties or witnesses and may not appeal commission decisions.
             185          (1) (a) The annual budget of the [Public Service] commission shall provide sufficient
             186      funds for the commission to hire, develop, and organize an advisory staff to assist the commission
             187      in performing the powers, duties, and functions committed to it by statute.
             188          [(a)] (b) The commission may hire:
             189          (i) economists, accountants, engineers, statisticians, lawyers, law clerks, and other
             190      professional and technical experts;
             191          (ii) court reporters, transcribers of tape recordings, clerks, secretaries, and other
             192      administrative and support staff;
             193          (iii) additional experts as required for a particular matter; and
             194          (iv) administrative law judges, who shall be members of the Utah State Bar, and constitute
             195      a separate organizational unit reporting directly to the commission.
             196          [(b)] (c) The commission may provide for funds in the annual budget to acquire suitable
             197      electronic recording equipment to maintain a verbatim record of [proceedings] hearings before the
             198      commission, any commissioner, or any administrative law judge.
             199          (2) (a) With the exception of clerical workers in nonconfidential positions, all staff of the
             200      [Public Service] commission are exempt employees under [the] Title 67, Chapter 19, Utah State
             201      Personnel Management Act, and serve at the pleasure of the commission.
             202          (b) Administrative law judges are exempt employees under [the] Title 67, Chapter 19,
             203      Utah State Personnel Management Act, and may only be removed from office upon due notice and
             204      by a unanimous vote of the commission.
             205          (c) (i) The Department of Human Resource Management shall determine pay schedules
             206      using standard techniques for determining compensation.
             207          (ii) The Department of Human Resource Management may make its compensation
             208      determinations based upon compensation practices common to utility companies throughout the
             209      United States.
             210          (3) (a) [The staff or other employees of the commission may not] Except as otherwise
             211      provided in this title, no member of the commission's staff or other commission employee may


             212      appear as [parties] a party or [witnesses] witness in any proceeding before the commission, any
             213      commissioner, or any administrative law judge.
             214          (b) The commission's staff or [other] employees [of the commission] may not apply for
             215      a rehearing of or appeal any finding, order, or decision of the commission.
             216          (4) The commission may, with respect to consumer complaints and matters brought before
             217      the commission under Section 54-7-11.5 , direct the commission staff to:
             218          (a) assist the commission in facilitating the resolution of matters brought before the
             219      commission;
             220          (b) review proposals or complaints brought before the commission;
             221          (c) conduct research, studies, and investigations;
             222          (d) provide information, documents, or records to the commission; and
             223          (e) assess the impact of proposed utility rate changes.
             224          (5) In performing its duties, the commission staff shall balance the interests of consumers
             225      and public utilities in the same manner as the commission is directed in Section 54-1-1 .
             226          Section 5. Section 54-1-6.5 is amended to read:
             227           54-1-6.5. Executive staff director -- Appointment -- Functions.
             228          (1) The commission shall appoint an executive staff director, who shall:
             229          (a) serve at the pleasure of the commission [and shall];
             230          (b) supervise and coordinate staff functions[,];
             231          (c) assist the [chairman of the commission] chair with administrative duties[,]; and
             232          (d) perform any other duties the commission may direct.
             233          (2) In performing his or her duties, the executive staff director shall balance the interests
             234      of consumers and public utilities in the same manner as the commission is directed in Section
             235      54-1-1 .
             236          Section 6. Section 54-1-6.7 is enacted to read:
             237          54-1-6.7. Investigations, audits -- Notice -- Adjudicative proceeding.
             238          (1) Any investigation, study, audit, inspection, action, or request for discovery of
             239      information pursuant to this title, shall be preceded by reasonable advance notice to the person or
             240      entity against whom an investigation, study, audit, inspection, enforcement, or discovery is sought.
             241          (2) The person or entity under Subsection (1) may require that an adjudicative proceeding
             242      be commenced prior to the initiation of an investigation, study, audit, inspection, action, or


             243      discovery by commission staff.
             244          Section 7. Section 54-1-7 is amended to read:
             245           54-1-7. Secretary of commission -- Appointment -- Functions.
             246          (1) The commission [may] shall appoint a secretary of the commission, who shall serve
             247      at the pleasure of the commission.
             248          (2) It shall be the duty of the secretary to keep a full and true record of [all]:
             249          (a) the adjudicative proceedings of the commission [and of all];
             250          (b) determinations, rulings, and orders made by the commission, or by any of the
             251      commissioners[,]; and [of]
             252          (c) the approval and confirmation by the commission of the determinations, rulings, and
             253      orders made by individual commissioners or administrative law judges.
             254          (3) The secretary shall:
             255          (a) be the custodian of the records of the commission[, and shall];
             256          (b) file and preserve at its general office [all] any books, profiles, tariffs, schedules,
             257      reports, maps [and], documents, and [all] papers [whatsoever] filed with [it] the commission or
             258      entrusted to its care[,]; and [the secretary shall]
             259          (c) be responsible to the commission for the custody [thereof] of the items specified in
             260      Subsection (3)(b).
             261          (4) Under the direction of the commission, the secretary shall:
             262          (a) superintend its clerical business[,];
             263          (b) conduct its correspondence[,];
             264          (c) give notice of [all] hearings, determinations, rulings, and orders of the commission[,];
             265          (d) prepare for service papers and notices required by the commission[,]; and
             266          (e) perform other duties the commission may prescribe.
             267          (5) The secretary [shall have power to] may administer [oaths] an oath in [all parts] any
             268      part of the state in [all proceedings]:
             269          (a) any proceeding by or before the commissioners [and]; or
             270          (b) in [all cases] any case or [matters] matter pertaining to the duties of the office of
             271      secretary.
             272          (6) In the absence of the secretary, the [commission] chair may designate another
             273      individual to perform the secretary's duties.


             274          Section 8. Section 54-1-10 is amended to read:
             275           54-1-10. Conservation planning -- Annual reports.
             276          (1) The [Public Service] commission shall engage in long-range planning regarding public
             277      utility regulatory policy in order to facilitate the well-planned development and conservation of
             278      utility resources.
             279          (2) (a) The commission shall make and submit to the governor and the Legislature an
             280      annual report containing a full and complete account of the transactions of its office, together with
             281      any facts, suggestions, and recommendations it [may deem] considers necessary.
             282          (b) The [Division of Public Utilities] Office of the Public Advocate shall provide any
             283      assistance the commission may require in the preparation of the annual report.
             284          (c) The report shall be made and submitted by October 1 of each year, or as soon after as
             285      may be feasible, and shall be published as are the reports of other departments of the state.
             286          Section 9. Section 54-1-11 is amended to read:
             287           54-1-11. Prohibited interests, relationships, and actions by commissioners and
             288      employees.
             289          (1) No person employed as a commissioner or as personnel of the commission shall, while
             290      so employed:
             291          (a) have any direct pecuniary interest, whether as the holder of stock or other securities,
             292      or otherwise have any conflict of interest with any public utility or other entity subject to the
             293      jurisdiction of the commission;
             294          (b) have any office, position, or relationship, or be engaged in any business or avocation
             295      which interferes or is incompatible with the effective and objective fulfillment of the duties of
             296      office or employment with the commission;
             297          (c) accept any gift, gratuity, emolument, or employment in violation of Title 67, Chapter
             298      16, Utah Public Officers' and Employees' Ethics Act, from any public utility or other entity subject
             299      to the jurisdiction of the commission or from any other officer, agent, or employee thereof; or
             300          (d) solicit, suggest, request, or recommend, directly or indirectly, the appointment of any
             301      person or entity to any office or employment with any public utility or other entity subject to the
             302      jurisdiction of the [Public Service] commission.
             303          (2) No officer, agent, attorney, or employee of any public utility h [ or other entity subject to
             304      the jurisdiction of the commission] shall [ [ ] directly or indirectly solicit, request, or recommend
             304a      to the h


             305      h governor, any state senator, the commission, or the h [ Division of Public Utilities ] OFFICE OF
             305a      THE PUBLIC ADVOCATE h the appointment
             306      of any person as a commissioner or as executive director of the commission, or the
             306a      appointment
            
307      of any person to any commission staff position [ ] ] [ offer to any member of the commission or its
             308      personnel, any gift, gratuity, emolument, or employment that the member of the commission or
            
309      its personnel are prohibited from accepting under Title 67, Chapter 16, Utah Public Officers' and
             310      Employees' Ethics Act
] h .
             311          Section 10. Section 54-3-1 is amended to read:
             312           54-3-1. Charges must be just, service adequate, rules reasonable.
             313          [All charges] (1) (a) Each charge made, demanded, or received by any public utility[, or
             314      by any two or more public utilities,] for any product or commodity furnished or to be furnished,
             315      or for any service rendered or to be rendered, shall be just and reasonable. [Every]
             316          (b) Any unjust or unreasonable charge made, demanded, or received for [such] a product
             317      [or], commodity, or service specified in Subsection (1)(a) is [hereby] prohibited [and declared
             318      unlawful. Every].
             319          (2) Each public utility shall furnish, provide, and maintain [such] service,
             320      instrumentalities, equipment, and facilities [as] that:
             321          (a) will promote the safety, health, comfort, and convenience of its patrons, employees,
             322      and the public[, and as will]; and
             323          (b) be in all respects adequate, efficient, just and reasonable. [All rules and regulations]
             324          (3) Each rule or regulation made by a public utility affecting or pertaining to its charges
             325      or service to the public shall be just and reasonable. [The scope of definition "just and reasonable"
             326      may include, but shall not be limited to, the cost of providing service to each category of customer,
             327      economic impact of charges on each category of customer, and on the well-being of the state of
             328      Utah; methods of reducing wide periodic variations in demand of such products, commodities or
             329      services, and means of encouraging conservation of resources and energy.]
             330          (4) The application of a just and reasonable standard to the charges, service,
             331      instrumentalities, equipment, facilities, rules, and regulations of a public utility shall be consistent
             332      with the balancing of interests as prescribed in Section 54-1-1 .
             333          Section 11. Section 54-3-21 is amended to read:
             334           54-3-21. Commission to be furnished information and copies of records --
             335      Adjudicative hearings before commission to be public -- Privilege.


             336          (1) [Every] Each public utility shall:
             337          (a) furnish to the commission, in [such] the form and [such] with the detail as the
             338      commission [shall] may prescribe [all], any tabulations [and], computations, and [all] other
             339      information required by it to carry into effect any of the provisions of this title[,]; and [shall]
             340          (b) make specific answers to [all questions] any question submitted by the commission.
             341          (2) [Every] Each public utility receiving from the commission any [blanks] document with
             342      directions to [fill the same] provide information shall [cause the same to be properly filled so as
             343      to] answer each information request fully and correctly [each question propounded therein; in
             344      case]. If it is unable to answer any question, it shall give a good and sufficient reason for [such]
             345      the failure.
             346          (3) [Whenever] When required by the commission [every], each public utility shall deliver
             347      to the commission:
             348          (a) copies of any [or all] maps, profiles, contracts, agreements, franchises, reports, books,
             349      accounts, papers [and], or records:
             350          (i) in its possession [or];
             351          (ii) in any way relating to its property; or
             352          (iii) affecting its business[, and also]; or
             353          (b) a complete inventory of [all] its property in [such] the form as the commission may
             354      direct.
             355          (4) [Hearings] (a) Adjudicative hearings or adjudicative proceedings of the commission
             356      or of any commissioner shall be open to the public[, and all].
             357          (b) Except as provided in Subsection (4)(c), records of [all] adjudicative hearings [or],
             358      adjudicative proceedings [or], and orders, rules [or], and investigations by the commission or any
             359      commissioner shall be at all times open to the public[; provided, that any].
             360          (c) Any information furnished the commission by a public utility or by any officer, agent,
             361      or employee of any public utility may be withheld from the public [whenever] when and during
             362      [such] the period of time [as] the commission [may determine] determines that it is [for] in the best
             363      interests of the public to withhold [such] the information.
             364          (d) Any officer or employee of the commission who in violation of the provisions of this
             365      Subsection (4) divulges any such information is guilty of a misdemeanor.
             366          Section 12. Section 54-4-1.1 is amended to read:


             367           54-4-1.1. Wholesale electrical cooperative exempt from rate regulation --
             368      Requirements for rate increase.
             369          (1) The commission [does] may not [have the authority under the provisions of this title
             370      to] regulate, fix, or otherwise approve or establish the rates, fares, tolls, or charges of a wholesale
             371      electrical cooperative.
             372          (2) A wholesale electrical cooperative [shall] may not vary its charges within any type or
             373      classification of service to any member or the public, one from the other, or from schedules of
             374      rates, fares, tolls, or charges which schedules shall be filed at least annually with the [Division of
             375      Public Utilities] Office of the Public Advocate for informational purposes only.
             376          (3) The prohibition of this section applies only to the rates, fares, tolls, or charges and does
             377      not exempt wholesale electrical cooperatives from other areas of regulation under this title
             378      including, but not limited to, regulation having an indirect effect on rates, fares, tolls, or charges
             379      but which does not constitute an approval or establishment of them.
             380          (4) (a) (i) A wholesale electrical cooperative must, prior to the implementation of any rate
             381      increase after January 1, 1984, hold a public meeting for [all] its customers and members.
             382          (ii) Notice must be mailed at least ten days prior to the meeting. [In addition, any]
             383          (b) Any schedule of new rates or other change that results in new rates must be approved
             384      by the board of directors of the wholesale electrical cooperative.
             385          Section 13. Section 54-4-4 is amended to read:
             386           54-4-4. Classification and fixing of rates after hearing.
             387          (1) [Whenever] If the commission [shall find] finds after a hearing that the rates, fares,
             388      tolls, rentals, charges, or classifications[, or any of them] demanded, observed, charged, or
             389      collected by any public utility for, or in connection with, any service [or], product, or commodity,
             390      [or in connection therewith,] including the rates or fares for excursion or commutation tickets, or
             391      that the rules, regulations, practices, or contracts[, or any of them,] affecting [such] the rates, fares,
             392      tolls, rentals, charges, or classifications[, or any of them,] are unjust, unreasonable, discriminatory
             393      [or], preferential, or [in anywise] otherwise in violation of any provisions of law, or that [such] the
             394      rates, fares, tolls, rentals, charges, or classifications are insufficient, the commission shall
             395      determine the just, reasonable, or sufficient rates, fares, tolls, rentals, charges, classifications, rules,
             396      regulations, practices, or contracts to be thereafter observed and in force, and shall fix the same
             397      by order as [hereinafter] provided in this section.


             398          (2) The commission [shall have power to] may:
             399          (a) investigate [a single rate, fare, toll, rental, charge, classification, rule, regulation,
             400      contract or practice, or any number thereof, or the entire schedule or]:
             401          (i) one or more rates, fares, tolls, rentals, charges, classifications, rules, regulations,
             402      contracts, or practices of any public utility; or
             403          (ii) one or more schedules of rates, fares, tolls, rentals, charges, classifications, rules,
             404      regulations, contracts [and], or practices[, or any number thereof,] of any public utility[, and to];
             405      and
             406          (b) establish, after hearing, new rates, fares, tolls, rentals, charges, classifications, rules,
             407      regulations, contracts [or], practices, or [schedule or] schedules in lieu [thereof] of them.
             408          (3) (a) [The commission, in] In its determination of just and reasonable rates, [may
             409      consider recent changes in the utility's financial condition or changes reasonably expected, but not
             410      speculative, in the utility's revenues, expenses or investments and may adopt an appropriate future
             411      test period, not exceeding twelve] if the commission uses a test period, it shall select a test period
             412      that is demonstrated by the evidence to best reflect conditions that the public utility will encounter
             413      during the period when the rates will be in effect.
             414          (b) In establishing the test period, the commission may use:
             415          (i) a future test period based on projected data not exceeding 20 months from the date of
             416      filing[, including projections or projections together with a period of actual operations in
             417      determining the utility's test year for rate-making purposes.];
             418          (ii) a test period based on historic data that are adjusted for known and measurable
             419      changes; or
             420          (iii) a combination of future projections and historic data.
             421          (c) If the test period is not based exclusively on future projections, the commission shall
             422      consider recent changes outside the test period which are known in nature and measurable in
             423      amount.
             424          Section 14. Section 54-4-37 is enacted to read:
             425          54-4-37. Transactions with utility affiliates -- Presumptions.
             426          (1) A public utility's transactions with an affiliate do not carry any presumption of
             427      unreasonableness. h THE BURDEN OF PROOF IN ANY PROCEEDING IS NOT AFFECTED BY THIS
             427a      PROVISION. h
             428          (2) Nothing in this section shall affect the obligations of a telecommunications corporation


             429      under:
             430          (a) Federal Telecommunications Act of 1996, 47 U.S.C. Sec. 251, 252, or 253; or
             431          (b) Title 54, Chapter 8b, Public Telecommunications Law.
             432          Section 15. Section 54-5a-1 is enacted to read:
             433     
CHAPTER 5a. PUBLIC UTILITY REGULATION TAX

             434          54-5a-1. Regulation tax.
             435          (1) A tax is imposed upon the gross operating revenue of each public utility subject to the
             436      jurisdiction of the commission.
             437          (2) The tax shall be the greater of:
             438          (a) 3/10 of 1% of the public utility's gross operating revenues for the preceding calendar
             439      year derived from each public utility's business and operations during that period within this state;
             440      or
             441          (b) $50.
             442          (3) The following revenue is exempt from the tax imposed by this chapter:
             443          (a) revenue derived from interstate business; and
             444          (b) revenue of a wholesale electric cooperative derived from the sale of power to a rural
             445      electric cooperative which resells that power within the state.
             446          (4) The tax is due and payable to the Department of Commerce on or before July 1 of each
             447      year.
             448          (5) The Department of Commerce shall remit the tax to the state treasurer.
             449          (6) The proceeds of the tax shall be used for:
             450          (a) the administration, support, and maintenance of the commission and the Office of the
             451      Public Advocate;
             452          (b) expenditures by the Office of the Attorney General to provide legal counsel for the
             453      commission and the Office of the Public Advocate; and
             454          (c) the support and maintenance of any other programs, services, or functions provided by
             455      the state, as appropriated by the Legislature.
             456          Section 16. Section 54-5a-2 is enacted to read:
             457          54-5a-2. Basis of the tax.
             458          (1) The gross operating revenues of a public utility shall be determined by the executive
             459      director of the Department of Commerce from:


             460          (a) the annual gross revenue reports filed with the commission; and
             461          (b) other sources of information prescribed by rule of the commission.
             462          (2) (a) A public utility liable for the tax assessed under this chapter shall file a report with
             463      the commission showing its gross operating revenue subject to the tax on or before April 15 of
             464      each tax year.
             465          (b) If the public utility fails to file the report as required under Subsection (2)(a), the
             466      executive director of the Department of Commerce shall:
             467          (i) compute or estimate the amount of tax due and payable; and
             468          (ii) assess the tax against the public utility.
             469          Section 17. Section 54-5a-3 is enacted to read:
             470          54-5a-3. Default in payment of tax -- Procedure to collect -- Penalties.
             471          (1) If the tax imposed under this chapter is due and the payment is in default, a lien in the
             472      amount of the tax may be filed against the property of the utility and may be foreclosed in an action
             473      brought by the executive director of the Department of Commerce in the district court of any
             474      county in which property of the delinquent utility is located.
             475          (2) (a) If the tax computed and imposed under this chapter is not paid within 60 days after
             476      it becomes due, the rights and privileges of the delinquent utility shall be suspended.
             477          (b) The executive director of the Department of Commerce shall transmit the name of the
             478      utility to the Public Service Commission, which may immediately enter an order suspending the
             479      operating rights of the utility.
             480          Section 18. Section 54-5a-4 is enacted to read:
             481          54-5a-4. Penalties.
             482          (1) Any utility whose operating rights have been suspended under Section 54-5a-3 which
             483      exercises or attempts to exercise any right or privilege as a utility during the time period for which
             484      its operating rights have been suspended is guilty of a class B misdemeanor.
             485          (2) Each day's violation shall constitute a separate offense.
             486          (3) Jurisdiction of the offense shall be held to be in any county in which any part of the
             487      transaction of business occurred.
             488          (4) Each contract made in violation of this section is unenforceable by the corporation.
             489          Section 19. Section 54-7-1 is amended to read:
             490           54-7-1. Settlement -- Limitation of issues.


             491          (1) Informal resolution, by agreement of the parties, of matters before the commission is
             492      encouraged[.] as a means to:
             493          (a) resolve disputes while minimizing time and expense to public utilities, the state, and
             494      consumers;
             495          (b) enhance administrative efficiency; and
             496          (c) enhance the regulatory process by allowing the commission to concentrate on those
             497      issues which adverse parties cannot otherwise resolve.
             498          (2) The commission may [approve any agreement after considering the interests of the
             499      public and other affected persons] use settlement proposals to resolve disputed matters, while
             500      reserving to the parties the right to maintain confidentiality in the negotiation process.
             501          (3) (a) At any time before or during [a hearing or] an adjudicative proceeding before the
             502      commission, the parties, between themselves or with the commission or a commissioner, may
             503      engage in settlement conferences and negotiations.
             504          (b) The commission may adopt [any settlement proposal of the parties and may enter an
             505      order based upon the proposal.] settlement proposals entered into by one or more of the parties,
             506      including all parties initiating a proceeding and all parties against whom a proceeding is initiated.
             507          (c) The commission shall notify all parties to the proceeding of the terms of any proposed
             508      settlement.
             509          (d) The commission shall consider the significant and material facts related to the case and
             510      may adopt settlement proposals provided that the evidence, enumerated in the record, supports a
             511      finding that the settlement is just and reasonable in result and the commission finds that the
             512      settlement is just and reasonable in result. If the commission finds that the settlement is just and
             513      reasonable in result, the commission may determine if the need exists to inquire into:
             514          (i) each party's rationale for supporting the settlement; or
             515          (ii) each party's position regarding the individual components or aspects of the case or
             516      settlement.
             517          (e) The commission may adopt a settlement proposal after conducting any hearing required
             518      by statute. However, the commission shall conduct a hearing if requested by the party initiating
             519      the proceeding or the party against whom the proceeding is initiated.
             520          (f) The commission may order a hearing at the request of an intervening party.
             521          (g) The commission shall accept or reject settlement proposals within a reasonable time.


             522          (4) In cases or procedures involving rate increases as defined in Section 54-7-12 , the
             523      commission may limit the factors and issues to be considered in its determination of just and
             524      reasonable rates.
             525          Section 20. Section 54-7-1.5 is amended to read:
             526           54-7-1.5. Communications between commission personnel and parties restricted.
             527          h [ (1) For purposes of this section, "ex parte communications" do not include:
             528          (a) discussions with the commission and its staff during initial settlement conferences
             529      established under Section 54-7-11.5 ; or
             530          (b) communications between parties or their counsel and the commission regarding:
             531          (i) the form and content of draft orders; or
             532          (ii) findings of fact or conclusions of law made by the commission
.] h

             533           h [ (2) ] (1) h No member of the [Public Service] commission, administrative law judge, or
             534      commission employee who is or may reasonably be expected to be involved in the
             535      decision-making process, shall make or knowingly cause to be made to any party any
             536      communication relevant to the merits of any matter under [adjudication] adjudicative proceedings,
             537      unless notice and an opportunity to be heard are afforded to all parties.
             538           h [ (3) ] (2) h (a) No party shall make or knowingly cause to be made to any member of the
             539      commission, administrative law judge, or commission employee who is or may reasonably be
             540      expected to be involved in the decision-making process, an ex parte communication relevant to
             541      the merits of any matter under [adjudication] adjudicative proceedings.
             542          (b) Any member of the commission, administrative law judge, or commission employee
             543      who receives an ex parte communication shall place the communication into the public record of
             544      the proceedings and afford all parties an opportunity to comment on the information.
             545          Section 21. Section 54-7-11.5 is enacted to read:
             546          54-7-11.5. Initial conferences.
             547          (1) (a) Before filing a request for agency action, a potential party or parties are encouraged
             548      to confer with the commission and its staff concerning a contemplated request. The commission
             549      shall hold an initial conference with the potential party or parties requesting the conference. For
             550      any subsequent conferences, the commission shall invite to participate the Office of the Public
             551      Advocate and other potential parties with a substantial interest in the contemplated request and
             552      may invite other potential parties to participate.


             553          (b) Requests for conferences described in Subsection (1)(a):
             554          (i) are not requests for agency action under Subsection 63-46b-3 (b); and
             555          (ii) do not require notice of the conferences.
             556          (c) The commission h [ and staff ] OR A DESIGNATED ADMINISTRATIVE LAW JUDGE, AND
             556a      SUCH STAFF AS THE COMMISSION OR ADMINISTRATIVE LAW JUDGE SHALL DETERMINE, h shall
             556b      offer advice and assistance and, in accordance with
             557      Section 63-46b-1 , seek to:
             558          (i) encourage settlement;
             559          (ii) clarify the issues;
             560          (iii) simplify the evidence;
             561          (iv) facilitate discovery; and
             562          (v) expedite the proceedings.
             563          (2) During the conferences described in Subsection (1), the commission h OR THE
             563a      ADMINISTRATIVE LAW JUDGE h and staff are
             564      encouraged to seek resolution of the issues presented. If a resolution requiring commission action
             565      is achieved, the commission shall:
             566          (a) issue an initial order reflecting the resolution; and
             567          (b) initiate an adjudicative proceeding in accordance with Subsection 63-46b-3 (1)(a) to
             568      implement the resolution.
             569          (3) Nothing in this section precludes the initiation of an adjudicative proceeding by any
             570      party requesting a conference before the commission issues an initial order.
             571          (4) (a) When an adjudicative proceeding is commenced by anyone other than the Office
             572      of the Public Advocate, the Office of the Public Advocate shall, except as provided in Subsections
             573      (4)(c) and (d), before intervening in the proceeding:
             574          (i) make a bonafide effort to confer with the party initiating the request; or
             575          (ii) if the adjudicative proceeding is commenced by the commission, make a bonafide
             576      effort to confer with the commission and any public utility directly affected by the commission
             577      action.
             578          (b) The Office of the Public Advocate is directed at the conference to:
             579          (i) encourage settlement;
             580          (ii) clarify the issues;
             581          (iii) simplify the evidence;
             582          (iv) facilitate discovery; and
             583          (v) expedite the proceedings.
             584          (c) In any proceeding where the commission is required by statute to issue tentative or final
             585      orders in less than 30 days, the Office of the Public Advocate may intervene. If further
             586      proceedings follow, the Office of the Public Advocate shall confer as provided in Subsections
             587      (4)(a) and (b) as soon as practicable.
             588          (d) If the commission has discretion, and intends, to issue a final or tentative order in less
             589      than 30 days, the commission shall notify the Office of Public Advocate of its intention to issue
             590      the order, and the Office of the Public Advocate may intervene. If further proceedings follow, the
             591      Office of the Public Advocate shall confer as provided in Subsections (4)(a) and (b) as soon as
             592      practicable.
             593          Section 22. Section 54-7-12 is amended to read:
             594           54-7-12. Rate increase or decrease -- Procedure -- Effective dates -- Electrical or
             595      telephone cooperative.
             596          (1) As used in this section:
             597          (a) "Rate increase" means any direct increase in a rate, fare, toll, rental, or other charge of
             598      a public utility or any modification of a classification, contract, practice, or rule that increases a
             599      rate, fare, toll, rental, or other charge of a public utility.
             600          (b) "Rate decrease" means any direct decrease in a rate, fare, toll, rental, or other charge
             601      of a public utility or any modification of a classification, contract, practice, or rule that decreases
             602      a rate, fare, toll, rental, or other charge of a public utility.
             603          (2) (a) Any public utility or other party that proposes to increase or decrease rates shall file
             604      appropriate schedules with the commission setting forth the proposed rate increase or decrease.
             605          (b) The commission shall, after reasonable notice, hold a hearing to determine whether the
             606      proposed rate increase or decrease, or some other rate increase or decrease, is just and reasonable.
             607      If a rate decrease is proposed by a public utility, the commission may waive a hearing unless it
             608      seeks to suspend, alter, or modify the rate decrease.
             609          (c) Except as otherwise provided in Subsections (3) and (4), no proposed rate increase or
             610      decrease is effective until after completion of the hearing and issuance of a final order by the
             611      commission concerning the proposed increase or decrease.
             612          (3) (a) [The following rules apply] This Subsection (3) applies to the implementation of
             613      any proposed rate increase or decrease filed by a utility or proposed by any other party, or the
             614      commission in an initial order under Section 54-7-11.5 , and to the implementation of any other


             615      increase or decrease in lieu of that proposed by a utility [or], other party [that is determined to be
             616      just and reasonable by], or the commission[:].
             617          [(a)] (b) (i) On its own initiative or in response to an application by a public utility or other
             618      party, the commission, after a hearing, may allow any proposed rate increase or decrease[, or a]
             619      which is just or reasonable, or a just and reasonable part of the rate increase or decrease, to take
             620      effect, subject to the commission's right to order a refund or surcharge, upon the filing of the
             621      utility's schedules or at any time during the pendency of its [hearing proceedings] adjudicative
             622      proceeding.
             623          (ii) The evidence presented in the hearing held pursuant to this Subsection (3)(b) need not
             624      encompass all issues that may be considered in a rate case hearing held pursuant to Subsection
             625      (2)(b), but shall establish an adequate prima facie showing that the interim rate increase or
             626      decrease is justified.
             627          [(b)] (c) (i) If the commission completes a hearing concerning a utility's revenue
             628      requirement before the expiration of 240 days from the date the rate increase or decrease proposal
             629      is filed, it may issue a final order within that period establishing the utility's revenue requirement
             630      and fixing its interim allowable rates before it determines the allocation of the increase or decrease
             631      among categories of customers and classes of service.
             632          (ii) If the commission in its final order on a utility's revenue requirement finds that the
             633      interim increase order under Subsection (3)[(a)](b) exceeds the increase finally ordered, it shall
             634      order the utility to refund the excess to customers.
             635          (iii) If the commission in its final order on a utility's revenue requirement finds that the
             636      interim decrease order under Subsection (3)[(a)](b) exceeds the decrease finally ordered, it shall
             637      order a surcharge to customers to recover the excess decrease.
             638          [(c)] (d) If the commission fails to enter its order granting or revising a revenue increase
             639      within 240 days after the [utility's schedules are filed] commencement of a request for a rate
             640      increase by a public utility or an increase proposed by an initial order of the commission, the rate
             641      increase proposed by the utility or the commission is final and the commission may not order a
             642      refund of any amount already collected by the utility under its filed rate increase.
             643          [(d)] (e) (i) [When] If a public utility files a proposed rate increase based upon an increased
             644      cost to the utility for fuel [or], energy, or services related to the production or transportation of fuel
             645      or energy, other than transportation by the public utility on its local distribution system, and the


             646      fuel, energy, or services are purchased or obtained from [independent contractors, other
             647      independent suppliers, or any supplier whose prices are regulated by a governmental agency, the
             648      commission shall issue a tentative order with respect to the proposed increase within ten days after
             649      the proposal is filed, unless it issues a final order with respect to the rate increase within 20 days
             650      after the proposal is filed] an independent contractor or independent source of supply or any
             651      supplier whose prices are regulated by a governmental agency, the requested increase shall take
             652      effect 20 days after the filing of the request with the commission or at any earlier time after the
             653      filing of the request as the commission may by order permit.
             654          (ii) The commission shall [hold a public hearing within 30 days after it issues the tentative
             655      order to determine if the proposed rate increase is just and reasonable] issue a final or interim order
             656      within 20 days only after a showing has been made by the public utility to the commission that the
             657      increase is justified.
             658          (iii) If the commission issues an interim order under Subsection (3)(e)(ii), the commission
             659      shall complete the hearing and issue a final order before the expiration of 240 days after the
             660      utility's proposed rate increase is filed. If the commission fails to enter its final order within the
             661      240 days, the interim order becomes a final order and the commission may not refund any amount
             662      already collected by the utility under the interim order.
             663          (iv) The commission may, after a hearing, suspend, alter, or modify the increase.
             664           h [ (v) ] (A) h The commission is not precluded from otherwise using mechanisms, such as a
             665      pass-through account or energy-balancing account, h [ for the recovery by a public utility of an
             666      increased cost for fuel or energy purchased, or other cost or expense items,
] h
but the procedural
             667      mechanisms for expedited orders described in Subsections (3)(e)(i) h [ through (v) ] AND (ii) h do not
             667a      apply.
             667b           h (B) WHENEVER THE COMMISSION CHANGES THE METHOD OF RECOVERY OF EXPENSES
             667c      BY REMOVING THEM FROM MECHANISMS SUCH AS THE PASS-THROUGH OR ENERGY BALANCING
             667d      ACCOUNT, SUCH CHANGE SHALL OPERATE PROSPECTIVELY AFTER THE UTILITY IS AFFORDED A
             667e      REASONABLE OPPORTUNITY TO HAVE ITS PRUDENTLY-INCURRED EXPENSES THAT WERE
             667f      PREVIOUSLY RECOVERED IN SUCH MECHANISMS RECOVERED BY SOME OTHER MEANS. h
             668          (4) (a) Notwithstanding [any other provisions of this title] Subsection (3), any schedule,
             669      classification, practice, or rule filed by a public utility with the commission that does not result in
             670      any rate increase shall take effect 30 days after the date of filing or within any lesser time the
             671      commission may grant, subject to its authority after a hearing to suspend, alter, or modify that
             672      schedule, classification, practice, or rule.
             673          (b) [When] If the commission suspends a schedule, classification, practice, or rule, it shall
             674      hold a hearing on the schedule, classification, practice, or rule before issuing its final order.
             675          (c) For purposes of this Subsection (4), any schedule, classification, practice, or rule that
             676      introduces a service or product not previously offered may not result in a rate increase.


             677          (5) [(a)] Notwithstanding [any other provision of this title, whenever a public utility files
             678      with the commission any] Subsections (2) through (4), any rate or price change or any change to
             679      a schedule, classification, practice, or rule [that does not result in an increase in any rate, fare, toll,
             680      rental, or charge, the schedule, classification, practice, or rule shall take effect 30 days after the
             681      date of filing or at any earlier time the commission may grant, subject to the authority of the
             682      commission, after a hearing, to suspend, alter, or modify the schedule, classification, practice, or
             683      rule.] determined by initial order under Section 54-7-11.5 may be adopted by the commission as
             684      its final order without a hearing if:
             685          [(b) (i) Notwithstanding any other provision of this title, whenever a public utility files
             686      with the commission a request for an increase in rates, fares, tolls, rentals, or charges based solely
             687      upon cost increases to the public utility of fuel supplied by an independent contractor or
             688      independent source of supply, the requested increase shall take effect ten days after the filing of
             689      the request with the commission or at any earlier time after the filing of the request as the
             690      commission may by order permit.]
             691          [(ii) The commission shall order the increase to take effect only after a showing has been
             692      made by the public utility to the commission that the increase is justified.]
             693          [(iii) The commission may, after a hearing, suspend, alter, or modify the increase.]
             694          (a) the commission mails notice of its initial order to each person who has requested notice
             695      of the initial orders and the commission provides other notice it considers appropriate; and
             696          (b) there is no objection to the initial order within 20 days from the service of notice.
             697          (6) Any person receiving notice under Subsection (5)(a) who has not objected to the
             698      commission's order under Subsection (5)(b) may not seek judicial review of the commission's
             699      order under Title 63, Chapter 46b, Administrative Procedures Act.
             700          (7) To the extent that time frames provided for the issuance of orders or for the effective
             701      date of schedules, classifications, practices, rules, or rate increases in Subsections (2) through (5)
             702      are inconsistent with any otherwise applicable time frames under Title 63, Chapter 46b,
             703      Administrative Procedures Act, the time frames provided in Subsections (2) through (5) shall
             704      supercede the time frames provided in Title 63, Chapter 46b, Administrative Procedures Act.
             705          [(6)] (8) (a) This section does not apply to any rate changes of an electrical or telephone
             706      cooperative that meets [all of] the [following] requirements[:] of Subsections (8)(b) through (e).
             707          [(a)] (b) The cooperative is organized for the purpose of either distributing electricity or


             708      providing telecommunication services to its members and the public at cost. "At cost" includes
             709      interest costs and a reasonable rate of return as determined by the cooperative's board of directors.
             710          [(b)] (c) The cooperative's board of directors and any appropriate agency of the federal
             711      government have approved the rate increase or other rate change and all necessary tariff revisions
             712      reflecting the increased rate or rate change.
             713          [(c)] (d) Before implementing any rate increases, the cooperative has held a public meeting
             714      for all its customers and members. The cooperative shall mail a notice of the meeting to all of
             715      the cooperative's customers and members not less than ten days prior to the date that the meeting
             716      is held.
             717          [(d)] (e) The cooperative has filed its tariff revisions reflecting the rate increase or other
             718      rate change with the commission, who shall make the tariffs available for public inspection.
             719          [(7)] (9) Procedures for the implementation of a proposed rate increase by a telephone
             720      corporation having less than 5,000 subscriber access lines are as follows:
             721          (a) (i) The proposed rate increase may become effective upon the filing of the proposed
             722      tariff revisions and necessary information to support a determination by the commission that the
             723      proposed rate increase is just and reasonable.
             724          (ii) The telephone corporation shall provide 30 days' notice to the commission and all
             725      potentially affected access line subscribers of the proposed rate increase.
             726          (b) (i) The commission may investigate whether the proposed rate increase is just and
             727      reasonable.
             728          (ii) If the commission determines, after notice and hearing, that the rate increase is unjust
             729      or unreasonable in whole or in part, the commission may establish the rates, charges, or
             730      classifications that it finds to be just and reasonable.
             731          (c) The commission shall investigate and hold a hearing to determine whether any
             732      proposed rate increase is just and reasonable if 10% or more of the telephone corporation's
             733      potentially affected access line subscribers file a request for agency action requesting an
             734      investigation and hearing.
             735          Section 23. Section 54-7-15 is amended to read:
             736           54-7-15. Review or rehearing by commission -- Application -- Procedure --
             737      Prerequisite to court action -- Effect of commission decisions.
             738          (1) Before seeking judicial review of the commission's action, any party, stockholder,


             739      bondholder, or other person pecuniarily interested in the public utility who is dissatisfied with an
             740      order of the commission shall meet the requirements of this section.
             741          (2) (a) After any order or decision, except an initial order and decision issued pursuant to
             742      Section 54-7-11.5 , has been made by the commission, any party to the action or proceeding, or any
             743      stockholder [or], bondholder, or other party pecuniarily interested in the public utility affected may
             744      apply for rehearing of any [matters] matters determined in the action or proceeding.
             745          (b) No applicant may urge or rely on any ground not set forth in the application in an
             746      appeal to any court.
             747          (c) Any application for rehearing not granted by the commission within 20 days is denied.
             748          (d) (i) If the commission grants any application for rehearing without suspending the order
             749      involved, the commission shall issue its decision on rehearing within 20 days after final
             750      submission.
             751          (ii) If the commission fails to render its decision on rehearing within 20 days, the order
             752      involved is affirmed.
             753          (e) Unless an order of the commission directs that an order is stayed or postponed, an
             754      application for review or rehearing does not excuse any corporation or person from complying with
             755      and obeying any order or decision of the commission.
             756          (3) Any order or decision on rehearing that abrogates, changes, or modifies an original
             757      order or decision has the same force and effect as an original order or decision, but does not affect
             758      any right, or the enforcement of any right, arising from the original order or decision unless so
             759      ordered by the commission.
             760          (4) Any order of the commission, including decisions on rehearing, shall have binding
             761      force and effect only with respect to public utilities that were actual parties to the proceeding, and
             762      do not determine any rights, privileges, obligations, duties, constraints, burdens, or responsibilities
             763      with respect to public utilities that were not party to the proceeding in which the order or decision
             764      was rendered unless the commission enacts a rule in compliance with Section 63-46a-3 of the Utah
             765      Administrative Rulemaking Act that incorporates the principles of law not already in its rules that
             766      are established by the order.
             767          Section 24. Section 54-8b-13 is amended to read:
             768           54-8b-13. Rules governing operator assisted services.
             769          (1) The commission shall make rules to implement the following requirements pertaining


             770      to the provision of operator assisted services:
             771          (a) Rates, surcharges, terms, or conditions for operator assisted services shall be provided
             772      to customers upon request without charge.
             773          (b) A customer shall be made aware, prior to incurring any charges, of the identity of the
             774      operator service provider handling the operator assisted call by a form of signage placed on or near
             775      the telephone or by verbal identification by the operator service provider.
             776          (c) Any contract between an operator service provider and an aggregator shall contain
             777      language which assures that any person making a telephone call on any telephone owned or
             778      controlled by the aggregator or operator service provider can access:
             779          (i) where technically feasible, any other operator service provider operating in the relevant
             780      geographic area; and
             781          (ii) the public safety emergency telephone numbers for the jurisdiction where the
             782      aggregator's telephone service is geographically located.
             783          (d) No operator service provider shall transfer a call to another operator service provider
             784      unless that transfer is accomplished at, and billed from, the call's place of origin. If such a transfer
             785      is not technically possible, the operator service provider shall inform the caller that the call cannot
             786      be transferred as requested and that the caller should hang up and attempt to reach another operator
             787      service provider through the means provided by that other operator service provider.
             788          (2) (a) The [Division of Public Utilities] Office of the Public Advocate shall be responsible
             789      for enforcing any rule adopted by the commission under this section.
             790          (b) If the [Division of Public Utilities] Office of the Public Advocate determines that any
             791      person, or any officer or employee of any person, is violating any rule adopted under this section,
             792      the [division] Office of the Public Advocate shall serve written notice upon the alleged violator
             793      which:
             794          (i) specifies the violation;
             795          (ii) alleges the facts constituting the violation; and
             796          (iii) specifies the corrective action to be taken.
             797          (c) After serving notice as required in Subsection (2)(b), the [division] Office of the Public
             798      Advocate may request the commission to issue an order to show cause. After a hearing, the
             799      commission may impose penalties and, if necessary, may request the attorney general to enforce
             800      the order in district court.


             801          (3) (a) Any person who violates any rule made under this section or fails to comply with
             802      any order issued pursuant to this section is subject to a penalty not to exceed $2,000 per violation.
             803          (b) In the case of a continuing violation, each day that the violation continues constitutes
             804      a separate and distinct offense.
             805          (4) A penalty assessment under this section does not relieve the person assessed from civil
             806      liability for claims arising out of any act which was a violation of any rule under this section.
             807          Section 25. Section 54-8b-17 is amended to read:
             808           54-8b-17. Procedures for enforcement of interconnection service quality -- Penalties
             809      for violation -- Funds collected.
             810          (1) Proceedings under Subsection 54-8b-2.2 (1)(e) shall be conducted in accordance with
             811      the following procedure:
             812          (a) The complaint shall be served upon the defendant telecommunications corporation and
             813      filed with the commission. A copy of the complaint shall also be served upon the [Division of
             814      Public Utilities] Office of the Public Advocate.
             815          (b) An answer or other responsive pleading to the complaint shall be filed with the
             816      commission not more than ten days after receipt of service of the complaint. Copies of the answer
             817      or responsive pleading shall be served on the complainant and the [Division of Public Utilities]
             818      Office of the Public Advocate.
             819          (c) A prehearing conference shall be held not later than ten days after the complaint is
             820      filed.
             821          (d) (i) The commission shall commence a hearing on the complaint not later than 25 days
             822      after the complaint is filed, unless the commission finds that extraordinary conditions exist that
             823      warrant postponing the hearing date, in which case the commission shall commence the hearing
             824      as soon as practicable.
             825          (ii) Parties shall be entitled to present evidence as provided by the commission's rules.
             826          (e) The commission shall take final action on a complaint not more than 45 days after the
             827      complaint is filed unless:
             828          (i) the commission finds that extraordinary conditions exist that warrant extending final
             829      action, in which case the commission shall take final action as soon as practicable; or
             830          (ii) the parties agree to an extension of final action by the commission.
             831          (2) The commission shall have the enforcement powers listed in Subsection (3) if, in the


             832      proceeding, the commission finds that:
             833          (a) the telecommunications corporation has violated the terms of the commission's
             834      interconnection service quality rules;
             835          (b) the telecommunications corporation has breached its obligations under the provisions
             836      of the Federal Telecommunications Act;
             837          (c) either party to an approved interconnection agreement has violated the terms of the
             838      agreement; or
             839          (d) either party has violated the terms of a statement of generally available terms.
             840          (3) If the commission makes any of the findings described in Subsection (2), the
             841      commission shall:
             842          (a) order the telecommunications corporation to:
             843          (i) remedy the violation; and
             844          (ii) comply, as applicable, with the terms of the commission's interconnection service
             845      quality rules, the interconnection agreement, or statement of generally available terms;
             846          (b) if considered appropriate by the commission, prescribe the specific actions that the
             847      telecommunications corporation must take to remedy its violation, including a time frame for
             848      compliance and the submission of a plan to prevent future violations;
             849          (c) if considered appropriate by the commission, impose a penalty on the defendant
             850      telecommunications corporation subject to the following:
             851          (i) if the violation is of the duties imposed under Section 54-8b-2.2 or 54-8b-16 , the
             852      commission may impose a penalty for such violation as provided in Section 54-7-25 ; or
             853          (ii) if the violating telecommunications corporation is other than an incumbent telephone
             854      corporation with fewer than 50,000 access lines in this state, and the violation is of a duty imposed
             855      under an interconnection agreement, a statement of generally available terms, or the obligations
             856      of Section 251 of the Federal Telecommunications Act, the commission may impose a penalty
             857      subject to the following:
             858          (A) if the commission finds that the violation was willful or intentional, the penalty may
             859      be in an amount of up to $5,000 per day and the period for which the penalty is levied shall
             860      commence on the date the commission finds the violation to have first occurred through and
             861      including the date the violation is corrected; or
             862          (B) if the commission finds that the violation was not willful or intentional, the penalty


             863      may be in an amount prescribed by Section 54-7-25 and the period for which the penalty is levied
             864      shall commence on the day after the deadline for compliance in the commission's order.
             865          (4) (a) The commission shall have the authority, on its own or at the request of the injured
             866      telecommunications corporation, to investigate a party's compliance with the commission's order
             867      under Subsection (3)(c)(ii).
             868          (b) If corrective or remedial action acceptable to the commission is not completed:
             869          (i) 45 days after the deadline set by the commission, the commission may increase the
             870      penalty up to $10,000 per violation per day for a willful or intentional violation; or
             871          (ii) 90 days after the deadline set by the commission, the commission may increase the
             872      penalty up to $4,000 per violation per day for a violation that is not willful or intentional.
             873          (5) (a) The penalty under Subsection (3)(c) shall be in addition to, and not in lieu of, civil
             874      damages or other remedies that may be available to the injured party.
             875          (b) In determining the amount of the penalty or the amount agreed to in compromise, the
             876      commission shall consider:
             877          (i) the appropriateness of the penalty to the size of the violating party;
             878          (ii) the gravity of the violation;
             879          (iii) the good faith of the defendant telecommunications corporation in attempting to
             880      achieve compliance after notification of the violation;
             881          (iv) the impact of the violation to the establishment of competition; and
             882          (v) the actual economic harm incurred by the plaintiff telecommunications corporation.
             883          (c) Each day of a continuing violation or a failure to comply is a separate offense for
             884      purposes of levying a penalty under this section.
             885          (6) All funds collected under this section shall go into the Universal Public
             886      Telecommunications Service Support Fund established under Section 54-8b-15 , and shall be in
             887      addition to any contributions required of a telecommunications corporation under that section.
             888          Section 26. Section 54-8b-18 is amended to read:
             889           54-8b-18. Definitions -- Unauthorized change of telecommunications provider --
             890      Unauthorized charges -- Procedures for verification -- Penalties -- Authority of commission.
             891          (1) For purposes of this section:
             892          (a) "Agents" includes any person, firm, or corporation representing a telecommunications
             893      corporation for purposes of requesting a change in a subscriber's telecommunications provider, but


             894      does not include a local service provider when executing a request submitted by another service
             895      provider or its agents.
             896          (b) "Freeze" means a directive from a subscriber to retain the provider of public
             897      telecommunications services selected by the subscriber until the subscriber provides authorization
             898      for a change to another provider of public telecommunications services through any means by
             899      which a freeze is implemented.
             900          (c) "Small commercial subscriber" is a person or entity conducting a business, agriculture,
             901      or other enterprise in the state having less than five telecommunications lines.
             902          (d) "Subscriber" means a corporation, person, or government, or a person acting legally
             903      on behalf of a corporation, person, or government who has purchased public telecommunications
             904      services from a telecommunications corporation.
             905          (2) No telecommunications corporation or its agents shall make any change or authorize
             906      a different telecommunications corporation to make any change in the provider of any public
             907      telecommunications service to a subscriber unless it complies, at a minimum, with Subsections
             908      (2)(a) through (e). This Subsection (2) does not apply to a telecommunications corporation that
             909      effectuates a change in service provider pursuant to a change authorization submitted or requested
             910      by another telecommunications corporation.
             911          (a) The telecommunications corporation or its agents shall, at a minimum, inform the
             912      subscriber of the nature, extent, and rates of the service being offered and any charges associated
             913      with the change.
             914          (b) Notwithstanding Section 13-26-4 , changes in provider of telecommunication service
             915      accomplished through telephone solicitation shall comply with the Telephone Fraud Prevention
             916      Act, Sections 13-26-2 , 13-26-8 , 13-26-10 , and 13-26-11 .
             917          (c) For sales of residential service or small commercial subscriber service, the
             918      telecommunications corporation or its agents shall confirm that the subscriber is aware of any
             919      charges that the subscriber must pay associated with the change and that the subscriber authorizes
             920      the change of provider. The subscriber's authorization to change the provider shall be confirmed
             921      by any one of the following methods:
             922          (i) obtaining the subscriber's written authorization;
             923          (ii) having the subscriber's oral authorization verified by an independent third party; or
             924          (iii) any means provided by rule of the Federal Communications Commission or the


             925      commission.
             926          (d) If the subscriber is not an individual, an authorization shall be valid only if given by
             927      an authorized representative of the subscriber.
             928          (e) (i) The written authorization to change the provider shall be signed by the subscriber
             929      and shall contain a clear, conspicuous, and unequivocal request by the subscriber for a change of
             930      telecommunications provider.
             931          (ii) A written authorization is not valid if it is presented to the subscriber for signature in
             932      connection with a sweepstakes, game of chance, or any other means prohibited by commission
             933      rule.
             934          (iii) Nothing in this section shall be construed to prohibit any person from offering a
             935      premium, incentive, or a thing of value to another as consideration for authorizing a change of
             936      telecommunications service provider, provided that no element of chance or skill is associated with
             937      the offer of the premium, incentive, or thing of value or its receipt.
             938          (3) The confirmation by a third-party verifier shall, at a minimum:
             939          (a) confirm the subscriber's identity with information unique to the customer, unless the
             940      customer refuses to provide identifying information, then that fact shall be noted;
             941          (b) confirm that the subscriber agrees to the requested change in telecommunications
             942      service providers; and
             943          (c) confirm that the subscriber has the authority to select the provider as the provider of
             944      that service.
             945          (4) A third-party verifier shall meet each of the following criteria:
             946          (a) any criteria for third-party verifiers set by the Federal Communications Commission;
             947          (b) not be directly or indirectly managed, controlled, directed, or owned wholly or in part:
             948          (i) by the telecommunications corporation or its agents that seek to provide the
             949      telecommunications service or by any corporation, firm, or person who directly or indirectly
             950      manages, controls, directs, or owns more than 5% of the telecommunications corporation; or
             951          (ii) by the marketing entity that seeks to market the telecommunications service or by any
             952      corporation, firm, or person who directly or indirectly manages, controls, directs, or owns more
             953      than 5% of the marketing entity;
             954          (c) operate from facilities physically separated from:
             955          (i) those of the telecommunications corporation or its agents that seek to provide the


             956      subscriber's telecommunications service; or
             957          (ii) those of the marketing entity that seeks to market a telecommunications service to the
             958      subscriber; and
             959          (d) not derive commissions or compensation based upon the number of change
             960      authorizations verified.
             961          (5) A telecommunications corporation or its agents seeking to verify the change
             962      authorization shall connect the subscriber to the third-party verifier or arrange for the third-party
             963      verifier to call the subscriber to verify the change authorization.
             964          (6) A third-party verifier that obtains the subscriber's oral verification regarding the change
             965      shall record that verification by obtaining appropriate verification data.
             966          (7) (a) The record verifying a subscriber's change of provider shall be available to the
             967      subscriber upon request.
             968          (b) Information obtained from the subscriber through verification may not be used for any
             969      other purpose.
             970          (c) Any intentional unauthorized release of the information in Subsection (7)(b) is grounds
             971      for penalties or other action by the commission or remedies provided by law to the aggrieved
             972      subscriber against the telecommunications corporation, third-party verifier, their agents, or their
             973      employees who are responsible for the violation.
             974          (8) The third-party verification shall occur in the same language as that in which the
             975      change was solicited.
             976          (9) The verification requirements described in this section shall apply to all changes in the
             977      provider of any public telecommunications service.
             978          (10) The commission may promulgate rules:
             979          (a) necessary to implement this section;
             980          (b) consistent with any rules promulgated by the Federal Communications Commission;
             981      and
             982          (c) in a nondiscriminatory and competitively neutral manner.
             983          (11) (a) Each subscriber may elect to require the telecommunications corporation
             984      providing the subscriber's local exchange service to implement a freeze until the subscriber
             985      provides authorization for a change to another provider of public telecommunications services.
             986          (b) Once a subscriber has elected the freeze option under Subsection (11)(a), the


             987      telecommunications corporation providing the subscriber's local exchange service may not process
             988      a request to change the subscriber to another provider of telecommunications services without
             989      prior authorization directly from the subscriber.
             990          (12) (a) Whenever the subscriber's provider of a telecommunications service changes, the
             991      new provider shall:
             992          (i) retain a record of the verified change authorization consistent with requirements of the
             993      Federal Communications Commission or rules issued by the commission; and
             994          (ii) be responsible for providing a conspicuous notice of the change within 30 days of the
             995      effective date of the change of service.
             996          (b) At a minimum, the notice in Subsection (12)(a)(ii) shall identify the new provider,
             997      contain a general description of the service and price, and provide information necessary for the
             998      subscriber to have questions answered or to rescind the change.
             999          (13) Any bill shall identify each telecommunications service provider of
             1000      telecommunication service for which billing is rendered.
             1001          (14) (a) Any person or provider of telecommunications service inadvertently or knowingly
             1002      designating or changing the subscriber's telecommunications service provider in violation of this
             1003      section shall refund to the subscriber any amounts required by the rules of the Federal
             1004      Communications Commission and the commission.
             1005          (b) The unauthorized provider in Subsection (14)(a) additionally shall:
             1006          (i) bear all costs of restoring the customer to the service of the subscriber's original service
             1007      provider; and
             1008          (ii) pay to any other telecommunications provider any fees set by the commission for the
             1009      designation or change.
             1010          (15) Proceedings for violations of this section may be commenced by request for agency
             1011      action filed with the commission by a subscriber, a telecommunications corporation, the [Division
             1012      of Public Utilities] Office of the Public Advocate, or by the commission on its own motion.
             1013          (16) Any telecommunications corporation, its agents, or a third-party verifier who violates
             1014      this section or rules adopted to implement this section shall be subject to the provisions of Sections
             1015      54-7-23 through 54-7-29 .
             1016          (17) The commission is granted authority to enforce provisions relating to an unauthorized
             1017      telecommunication service provider change in interstate and intrastate telecommunication service


             1018      involving telecommunications corporations operating in the state.
             1019          Section 27. Section 54-10a-1 is enacted to read:
             1020     
CHAPTER 10a. OFFICE OF THE PUBLIC ADVOCATE

             1021          54-10a-1. Establishment of Office of the Public Advocate -- Functions.
             1022          (1) There is established within the Department of Commerce the Office of the Public
             1023      Advocate which may:
             1024          (a) initiate and participate in initial conferences pursuant to Section 54-7-11.5 , commence
             1025      original proceedings, file complaints, appear as a party, present factual information and evidence,
             1026      examine witnesses, advocate policy recommendations, commence appeals, otherwise participate
             1027      in proceedings before the commission, and engage in all other activities consistent with its
             1028      statutory responsibilities;
             1029          (b) commence original proceedings, file complaints, appear as a party, appeal, and
             1030      otherwise represent the public interest in matters and proceedings involving regulation of a public
             1031      utility pending before any officer, department, board, agency, commission, governmental authority,
             1032      or court of Utah, of another state, or of the United States, and may intervene in, protest, resist, or
             1033      advocate the granting, denial, or modification of any petition, application, complaint, or other
             1034      proceeding, or any decision or order of any of those governmental authorities;
             1035          (c) investigate or study, upon complaint, upon order of the commission, or upon its own
             1036      initiative, any matter within the jurisdiction of the commission;
             1037          (d) conduct audits and inspections, or take enforcement actions regarding any matter
             1038      within the jurisdiction of the commission in order to insure compliance with decisions, orders, and
             1039      policies of the commission, either upon order of the commission or upon its own initiative;
             1040          (e) require any person or entity subject to the jurisdiction of the commission to:
             1041          (i) provide information, reports, and other data compilations relevant to matters within the
             1042      jurisdiction of the commission;
             1043          (ii) provide access to inspect and copy records and other data compilations relevant to
             1044      matters within the jurisdiction of the commission;
             1045          (iii) permit inspection of properties and tangible things used in providing public utility
             1046      service; and
             1047          (iv) engage in other methods of discovery authorized by the commission;
             1048          (f) review applications filed with the commission and present recommendations to the


             1049      commission on the disposition of those applications;
             1050          (g) make recommendations regarding public utility regulatory policy and long-range
             1051      planning on matters within the jurisdiction of the commission;
             1052          (h) after balancing the h [ interest ] INTERESTS OF CONSUMERS AND THE PUBLIC UTILITY
             1052a      AS OUTLINED h in Section 54-1-1 , take a position in a matter before the
             1053      commission, but may not specifically appear on behalf of any individual, organization, or entity;
             1054          (i) assess the impact of utility rate changes and other regulatory actions;
             1055          (j) assist residential consumers, agricultural consumers, and those engaged in small
             1056      commercial enterprises in appearing before the commission; and
             1057          (k) engage in settlement negotiations and make stipulations or agreements regarding
             1058      matters within the jurisdiction of the commission.
             1059          (2) (a) Any investigations, studies, audits, inspections, enforcement actions, or requests
             1060      for discovery of information pursuant to Subsection (1)(c), (d), or (e), shall be preceded by
             1061      reasonable advance notice to the person or entity against whom investigation, study, audit,
             1062      inspection, enforcement, or discovery is sought.
             1063          (b) The targeted person or entity may require that a complaint or an adjudicative
             1064      proceeding be instituted with the commission prior to the commencement of the investigation,
             1065      study, audit, inspection, enforcement, or discovery by the Office of the Public Advocate pursuant
             1066      to Subsection (1)(c), (d), or (e).
             1067          Section 28. Section 54-10a-2 is enacted to read:
             1068          54-10a-2. Director of Office of the Public Advocate -- Appointment -- Authority and
             1069      responsibility.
             1070          (1) The director of the Office of the Public Advocate shall be appointed by the executive
             1071      director of the Department of Commerce and shall serve at the pleasure of the executive director.
             1072          (2) The director of the Office of the Public Advocate is subject to the administrative
             1073      authority of the executive director of the Department of Commerce and is responsible for the
             1074      administration and supervision of the division.
             1075          (3) The director of the Office of the Public Advocate shall have authority to adopt internal
             1076      organizational measures to effectuate efficiency and economy in the management and operation
             1077      of the Office of the Public Advocate.
             1078          Section 29. Section 54-10a-3 is enacted to read:
             1079          54-10a-3. Budget of Office of the Public Advocate -- Employment of personnel.


             1080          (1) The annual budget of the Office of the Public Advocate shall provide sufficient funds
             1081      for the Office of the Public Advocate to hire, develop, and organize a technical and professional
             1082      staff to perform the duties, powers, and responsibilities committed to it by statute.
             1083          (2) The director of the Office of the Public Advocate may:
             1084          (a) hire economists, accountants, engineers, inspectors, statisticians, and other technical
             1085      and professional experts as may be required;
             1086          (b) retain additional experts as required for a particular matter, but only to the extent that
             1087      it is necessary to supplement staff of the Office of the Public Advocate in order to fulfill its duties;
             1088      and
             1089          (c) employ necessary administrative and support staff.
             1090          (3) (a) The Department of Human Resource Management shall determine pay schedules
             1091      using standard techniques for determining compensation.
             1092          (b) The Department of Human Resource Management may make its compensation
             1093      determinations based upon compensation common to utility companies throughout the United
             1094      States.
             1095          Section 30. Section 54-10a-4 is enacted to read:
             1096          54-10a-4. Legal counsel.
             1097           h [ The attorney general shall appoint legal counsel to the Office of the Public Advocate upon
             1098      request.
] THE ATTORNEY GENERAL SHALL APPOINT SUFFICIENT FULL TIME LEGAL COUNSEL TO

             1098a      ASSIST, ADVISE, AND REPRESENT THE OFFICE OF THE PUBLIC ADVOCATE AND ITS STAFF IN THE
             1098b      DISCHARGE OF ITS DUTIES AND IN ALL PROCEEDINGS BEFORE THE PUBLIC SERVICE
             1098c      COMMISSION, AND IN ALL OTHER PROCEEDINGS. h
             1099          Section 31. Section 54-10a-5 is enacted to read:
             1100          54-10a-5. Interests, relationships, and actions by employees prohibited.
             1101          No employee of the Office of the Public Advocate shall, while so employed:
             1102          (1) have any direct pecuniary interest, whether as the holder of stock or other securities,
             1103      or otherwise have any conflict of interest with any public utility or other entity subject to the
             1104      jurisdiction of the commission;
             1105          (2) have any office, position, or relationship, or be engaged in any business or avocation
             1106      which interferes or is incompatible with the effective and objective fulfillment of the duties of
             1107      office or employment with the Office of the Public Advocate;
             1108          (3) accept any gift, gratuity, emolument, or employment in violation of Title 67, Chapter
             1109      16, Utah Public Officers' and Employees' Ethics Act, from any public utility or any other entity
             1110      subject to the jurisdiction of the commission or from any officer, agent, or employee thereof; or
             1111          (4) solicit, suggest, request, or recommend, directly or indirectly, the appointment of any
             1112      person or entity to any office or employment with any public utility or other entity subject to the
             1113      jurisdiction of the commission.
             1114          Section 32. Section 54-10a-6 is enacted to read:
             1115          54-10a-6. Objectives.
             1116           h (1) h After balancing the interests of consumers and the public utility as outlined in Section
             1117      54-1-1 , the Office of the Public Advocate:
             1118           h [ (1) ] (a) h shall, in the performance of its duties, powers, and responsibilities under this
             1118a      title,
             1119      provide the commission with objective and comprehensive information, evidence, and
             1120      recommendations; and
             1121           h [ (2) ] (b) h may take a position which it determines to be:
             1122           h [ (a) ] (i) h in the interest of consumers, including residential, agricultural, industrial, and
             1123      commercial consumers;
             1124           h [ (b) ] (ii) h in the interest of the utility; or
             1125           h [ (c) ] (iii) h a reasonable compromise of the interests in Subsections h [ (2)(a) and (b) ] (b)(i)
             1125a      AND (b)(ii) h .
             1125b          h (2)(a) AS USED IN THIS SUBSECTION 54-10a-6(2), "SMALL COMMERCIAL CONSUMER"
             1125c      MEANS A PERSON OR ENTITY CONDUCTING A BUSINESS, AGRICULTURAL, OR OTHER
             1125d      ENTERPRISE IN THE STATE HAVING LESS THAN 25 EMPLOYEES OR A GROSS INCOME LESS THAN
             1125e      $1,000,000 ANNUALLY.
             1125f          (b) NOTWITHSTANDING THE REQUIREMENT OF SUBSECTION (1) TO BALANCE THE
             1125g      INTERESTS OF CONSUMERS AND THE PUBLIC UTILITY, THE DIRECTOR OF THE OFFICE OF THE
             1125h      PUBLIC ADVOCATE:
             1125i          (i) SHALL DESIGNATE ONE OR MORE MEMBERS OF THE STAFF OF THE OFFICE OF THE
             1125j      PUBLIC ADVOCATE TO TAKE POSITIONS AND TESTIFY FOR THE INTERESTS OF RESIDENTIAL OR
             1125k      SMALL COMMERCIAL CONSUMERS IN:
             1125l          (A) ANY CONFERENCE IN WHICH THE OFFICE OF THE PUBLIC ADVOCATE PARTICIPATES
             1125m      PURSUANT TO SECTION 54-7-11.5, IF THE CONFERENCE IS ON A MATTER IN WHICH RESIDENTIAL
             1125n      OR SMALL COMMERCIAL CONSUMERS HAVE A SUBSTANTIAL INTEREST; AND
             1125o          (B) EACH ADJUDICATORY PROCEEDING IN WHICH RESIDENTIAL OR SMALL COMMERICIAL
             1125p      CONSUMERS HAVE A SUBSTANTIAL INTEREST; AND
             1125q          (ii) h [MAY] SHALL h PROVIDE h ADEQUATE h RESOURCES DESCRIBED IN
             1125q1      SUBSECTIONS 54-10a-3(2)(a) AND (b) AND
             1125r      SECTION 54-10a-4 TO MEMBERS OF THE STAFF OF THE OFFICE OF THE PUBLIC ADVOCATE TO
             1125s      PERFORM THEIR DUTIES UNDER THIS SUBSECTION (2). h
             1126          Section 33. Section 54-10a-7 is enacted to read:


             1127          54-10a-7. Notice by commission.
             1128          The commission shall automatically provide notice to the Office of the Public Advocate
             1129      of all requests for agency action or notices of agency action.
             1130          Section 34. Section 54-10a-8 is enacted to read:
             1131          54-10a-8. Establishment of advisory board.
             1132          (1) There is established an advisory board for the Office of the Public Advocate.
             1133          (2) (a) The advisory board shall consist of h [ seven ] EIGHT h members, six of which shall
             1133a      be appointed
             1134      by the governor to represent the following interests, as follows:
             1135          (i) large industrial users of public utility services;
             1136          (ii) small industrial or commercial users of public utility services;
             1137          (iii) agricultural users of public utility services;
             1138          (iv) residential public utility consumers;
             1139          (v) low-income residents; and
             1140          (vi) retired persons.
             1141           h [ (b) The seventh member shall be the executive director of the Department of Commerce ] h


             1142      h [ who shall serve as chair of the advisory board. ]
             1142a          (b) THE REMAINING MEMBERS OF THE BOARD SHALL BE:
             1142b          (i) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF COMMERCE; AND
             1142c          (ii) THE DIRECTOR OF THE OFFICE OF THE PUBLIC ADVOCATE. h
             1143          (c) All members of the advisory board shall maintain their principal abode within Utah.
             1143a          h (d) IN SERVING AS A MEMBER OF THE ADVISORY BOARD, THE DIRECTOR OF THE OFFICE
             1143b      OF THE PUBLIC ADVOCATE:
             1143c          (i) MAY NOT VOTE; AND
             1143d          (ii) SHALL REPORT ON THE ACTIVITIES OF THE OFFICE OF THE PUBLIC ADVOCATE.
             1143e          (e) THE ADVISORY BOARD SHALL ANNUALLY SELECT A MEMBER TO SERVE AS CHAIR. h
             1144          (3) (a) Except as required by Subsection (3)(b), as terms of current advisory board
             1145      members expire, the governor shall appoint each new member or reappointed member to a
             1146      four-year term.
             1147          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time
             1148      of appointment or reappointment, adjust the length of terms to ensure that the terms of advisory
             1149      board members are staggered so that approximately half of the advisory board is appointed every
             1150      two years.
             1151          (c) When a vacancy occurs in the membership for any reason, the replacement shall be
             1152      appointed for the unexpired term.
             1153          (4) No more than four members of the advisory board shall be from the same political
             1154      party.
             1155          (5) (a) Members of the advisory board shall receive no compensation or benefits for their
             1156      services, but may receive per diem and expenses incurred in the performance of the member's
             1157      official duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             1158      63A-3-107 .
             1159          (b) Members may decline to receive per diem and expenses for their service.
             1160          (6) The advisory board may:
             1161           h [ (a) hold meetings at the request of the chair or any four members; and ]
             1161a          (a) SET AGENDAS AND HOLD MONTHLY MEETINGS, AND MAY HOLD OTHER MEETINGS, AT
             1161b      THE TIMES AND PLACES AS THE CHAIR OR A MAJORITY OF THE ADVISORY BOARD MAY
             1161c      DETERMINE; AND h
             1162          (b) advise the office in the performance of the office's duties, powers, and responsibilities
             1163      h [ consistent with Subsection 54-1-1 (2) ] h .
             1164          Section 35. Section 67-1-13 is amended to read:
             1165           67-1-13. Rural Telecommunications Task Force -- Creation -- Membership --


             1166      Quorum -- Compensation -- Staff -- Duties -- Reports and recommendations.
             1167          (1) There is created within the governor's office the Rural Telecommunications Task Force
             1168      consisting of the following 11 members:
             1169          (a) one representative from state government appointed by the governor who shall serve
             1170      as chair;
             1171          (b) one member of the Senate appointed by the president of the Senate;
             1172          (c) one member of the House of Representatives appointed by the speaker of the House


             1173      of Representatives;
             1174          (d) the chair of the Public Service Commission or the chair's designee;
             1175          [(e) the administrative secretary of the Committee of Consumer Services or the
             1176      administrative secretary's designee;]
             1177          [(f) the director] (e) two members of the [Division of Public Utilities or the director's
             1178      designee] Office of the Public Advocate, one of which shall be the director;
             1179          [(g)] (f) two representatives from a local government organization in rural Utah, one
             1180      representing cities and one representing counties, appointed by the governor; and
             1181          [(h)] (g) three representatives from telecommunications providers in rural Utah to be
             1182      appointed by the governor.
             1183          (2) A majority of the members of the task force constitute a quorum. The action of a
             1184      majority of a quorum constitutes the action of the task force.
             1185          (3) (a) Salaries and expenses of the members of the task force who are legislators shall be
             1186      paid in accordance with Section 36-2-2 and Legislative Joint Rule 15.03.
             1187          (b) Members of the task force who are not legislators may not receive compensation for
             1188      their work associated with the task force, but may receive per diem and expenses incurred as a
             1189      member of the task force at the rates established by the Division of Finance under Sections
             1190      63A-3-106 and 63A-3-107 .
             1191          (4) The governor's office shall provide staff support to the task force.
             1192          (5) The task force shall review and make recommendations on the following issues:
             1193          (a) identify appropriate eligibility criteria for Universal Service Fund Support for capital
             1194      investment in broadband data services in rural areas of the state so that:
             1195          (i) such support is limited to areas lacking those services;
             1196          (ii) an appropriate fund balance is maintained;
             1197          (iii) such support begins January 1, 2000; and
             1198          (iv) increases in surcharges to support the fund are minimal;
             1199          (b) identify areas of the state where state government should assume liability for the costs
             1200      of relocating facilities in the case of right-of-way realignments in order to encourage deployment
             1201      of digital infrastructure to those areas; and
             1202          (c) other possible solutions to aid in the deployment of advanced telecommunications
             1203      services in rural areas of the state.


             1204          (6) The task force shall provide:
             1205          (a) recommendations on rule changes to the Public Service Commission by October 1,
             1206      1999; and
             1207          (b) a report, including any proposed legislation, to the Public Utilities and Technology
             1208      Interim Committee before November 30, 1999.
             1209          Section 36. Repealer.
             1210          This act repeals:
             1211          Section 54-4-1.5, Investigations, providing information, audits and recommendations
             1212      by director.
             1213          Section 54-4a-1, Establishment of division -- Functions.
             1214          Section 54-4a-2, Director of division -- Appointment -- Authority and responsibility.
             1215          Section 54-4a-3, Budget of division -- Employment of personnel.
             1216          Section 54-4a-4, Legal counsel.
             1217          Section 54-4a-5, Interests, relationships and actions by employees prohibited.
             1218          Section 54-4a-6, Objectives.
             1219          Section 54-5-1.5, Special regulation fee -- Supplemental Levy Committee --
             1220      Supplemental fee.
             1221          Section 54-5-2, How gross operating revenue is determined.
             1222          Section 54-5-3, Default in payment of fee -- Procedure to collect -- Penalties.
             1223          Section 54-5-4, Penalties.
             1224          Section 54-8b-12, Trust fund established -- Requirements -- Expiration -- Transfer of
             1225      balance.
             1226          Section 54-10-1, Definitions.
             1227          Section 54-10-2, Committee of Consumer Services created -- Members -- Terms --
             1228      Qualifications -- Appointment -- Organization.
             1229          Section 54-10-3, Per diem and expenses of members -- Meetings.
             1230          Section 54-10-4, Duties and responsibilities of committee.
             1231          Section 54-10-4.5, Representation of electric power utility by committee prohibited.
             1232          Section 54-10-5, Residential and small commercial representative -- Duties.
             1233          Section 54-10-6, Review of public utility accounting procedures and expenditures.
             1234          Section 54-10-7, Attorney from attorney general's office to represent committee.


             1235          Section 37. Effective date.
             1236          This act takes effect on July 1, h [ 2000 ] 2001 h .
             1237          Section 38. Transition clause.
             1238          (1) Effective July 1, h [ 2000 ] 2001 h , the Office of the Public Advocate shall assume all
             1238a      rights, duties,
             1239      and powers of the former Division of Public Utilities and the Committee of Consumer Services
             1240      with respect to actions filed prior to July 1, h [ 2000 ] 2001 h .
             1241          (2) In order to avoid a conflict with its duties under Section 54-1-1 , in proceedings
             1242      commenced prior to July h [ 2000 ] 2001 h , the Office of the Public Advocate shall retain the
             1242a      services of any
             1243      person or entity to represent the public interests in those actions until completed.


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