S.B. 92 Enrolled

TELECOMMUNICATIONS DEREGULATION AMENDMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: David H. Steele
AN ACT RELATING TO PUBLIC UTILITIES; ENACTING AND AMENDING LANGUAGE
REGARDING CONTRACTS PREVIOUSLY REPEALED; AMENDING PROVISIONS
REGARDING DISCRIMINATION; PROVIDING THAT THE TERRITORY OF THE
COMPETITOR BE MATCHED BY THE INCUMBENT FOR PRICING FLEXIBILITY;
AND MAKING TECHNICAL AMENDMENTS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
54-8b-2.3, as enacted by Chapter 269, Laws of Utah 1995
ENACTS:
54-8b-4.5, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 54-8b-2.3 is amended to read:
54-8b-2.3. Pricing flexibility.
(1) (a) A telecommunications corporation that obtains a certificate to compete with the
incumbent telephone corporation in a defined geographic area pursuant to Section 54-8b-2.1 may
price any public telecommunications services it is authorized to offer, or any new public
telecommunications service, by means of a price list or competitive contract.
(b) Before the telecommunications corporation begins providing any authorized public
telecommunications service, it shall notify the commission of its intent to begin providing the
service.
(2) (a) Notwithstanding other requirements of this chapter relating to pricing flexibility,
an incumbent telephone corporation may offer retail end user public telecommunications services
by means of a price list or competitive contract as provided in Subsections (b) and (c).
(b) (i) An incumbent telephone corporation may petition the commission for pricing
flexibility in any proceeding in which another telecommunications corporation has petitioned the

commission for a certificate to provide specified public telecommunications services in a defined
geographic area that is within the incumbent telephone corporation's service territory.
(ii) In the proceeding, the commission shall, by order, grant pricing flexibility to the
incumbent telephone corporation for the same or substitutable public telecommunications services
in the same defined geographic area.
(iii) Pricing flexibility for any public telecommunications service shall become effective
when the following conditions are met:
(A) the commission has issued a certificate to the competing telecommunications
corporation;
(B) the competing telecommunications corporation has begun providing the authorized
public telecommunications service in the defined geographic area;
(C) the incumbent telephone corporation, by written agreement, stipulation, or pursuant to
an order of the commission, has allowed the competing telecommunications corporation to
interconnect with the essential facilities and to purchase essential services of the incumbent
telephone corporation; and
(D) the incumbent telephone corporation is in compliance with the rules and orders of the
commission adopted or issued under Section 54-8b-2.2.
(c) An incumbent telephone corporation may price any new public telecommunications
service by means of a price list or competitive contract.
(3) The commission may review any new public telecommunications service offered by an
incumbent telephone corporation after the applicable tariff, price list, or competitive contract has
taken effect.
(4) Each price list shall:
(a) be filed with the commission;
(b) describe the public telecommunications service;
(c) set forth the basic terms and conditions upon which the public telecommunications
service is offered; and
(d) list the prices to be charged for the public telecommunications service or the basis on

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which the services will be priced.
(5) Prices, terms, and conditions offered under price lists or competitive contracts that are
different from tariff prices, terms, and conditions for the same services are not considered
discriminatory under Section 54-3-8 and Subsection 54-8b-3.3(2).
[(5)] (6) A price list filed with the commission under this section shall take effect five days
after it is filed with the commission.
[(6)] (7) The prices, terms, and conditions of a public telecommunications service offered
by a telecommunications corporation pursuant to a competitive contract with a retail customer shall
be filed with the commission.
[(7)] (8) The commission may, as determined necessary to protect the public interest, set an
upper limit on the price that may be charged by telecommunications corporations for public
telecommunications services that may be priced by means of a price list or competitive contract.
[(8)] (9) (a) The commission may revoke the authority of a telecommunications corporation
to offer a public telecommunications service pursuant to a price list or competitive contract if the
commission finds:
(i) (A) the telecommunications corporation has violated statutes or rules applicable to the
specific service;
(B) there has been a material and substantial change in the level of competition; or
(C) competition has not developed; and
(ii) revocation is in the public interest.
(b) The party asserting that revocation should occur shall bear the burden of proof.
Section 2. Section 54-8b-4.5 is enacted to read:
54-8b-4.5. Commission order -- Negotiated provisions of services -- Contracts under
this section.
(1) (a) The commission may enter an order partially or wholly exempting any public
telecommunications service from any requirement of this title relating to rates, tariffs, or fares.
(b) The commission may authorize the provision of all or any portion of a public
telecommunications service under stated or negotiated terms to any person that is committed to the

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acquisition of comparable telecommunications services from an alternative source of supply through
construction, lease, or any other form of acquisition.
(2) An incumbent telephone corporation may negotiate with the person or entity within the
incumbent telephone corporation's service territory for the provision of retail end user public
telecommunications services without regard to the provisions of any tariffs on file and approved by
the commission, or any price list or competitive contract filed under Section 54-8b-2.3 with the
commission but any rate, toll, fare, rental, charge, or classification of service in such contracts shall
comply with Subsection 54-8b-3.3(3).
(3) (a) Within ten days after the conclusion of the negotiations and prior to the execution of
a contract under this section, the incumbent telephone corporation shall file with the commission the
proposed final agreements and other evidence of the public telecommunications services to be
provided, together with the charges and other conditions of the service.
(b) (i) The commission may approve or deny an application, or begin adjudicative
proceedings to consider approval of a contract under this section within 30 days of the filing of the
application by the incumbent telephone corporation.
(ii) If the commission begins adjudicative proceedings, the contract is effective when the
commission orders that it is effective.
(iii) If the commission fails to approve a contract under this section, or fails to begin
adjudicative proceedings within 30 days, the final contract is effective.
(c) In determining whether or not to approve a contract under this section, the commission
shall consider all relevant factors, including, whether or not the contract for any rate, toll, fare, rental,
charge, or classification of service:
(i) complies with Subsection 54-8b-3.3(3);
(ii) provides for adequate service at just and reasonable rates.
(d) After a contract under this section has become effective, if the incumbent telephone
corporation is not subject to maximum price regulation for tariffed public telecommunications
services under Section 54-8b-2.4, the commission shall in the next general rate case for that
incumbent telephone corporation:

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(i) review the contract for consistency with the factors stated in this subsection; and
(ii) make any adjustment in its rate order, including retroactive adjustments, that are
necessary to avoid cross subsidization from other regulated intrastate telecommunications services.
(4) Any incumbent telephone corporation that provides public telecommunications services
pursuant to a contract under this section may not offer the services under contract in a manner that
unfairly discriminates between similarly situated customers.
(5) Subject to Subsection (4), terms and conditions offered in contracts under this section
that are different from tariff terms and conditions for the same services are not considered
discriminatory under Section 54-3-8 and Subsection 54-8b-3.3(2).

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