S.B. 92

1

TELECOMMUNICATIONS DEREGULATION
2 AMENDMENTS
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: David H. Steele
6 AN ACT RELATING TO PUBLIC UTILITIES; ENACTING AND AMENDING LANGUAGE
7 REGARDING CONTRACTS PREVIOUSLY REPEALED; AMENDING PROVISIONS
8 REGARDING DISCRIMINATION; PROVIDING THAT THE TERRITORY OF THE
9 COMPETITOR BE MATCHED BY THE INCUMBENT FOR PRICING FLEXIBILITY; AND
10 MAKING TECHNICAL AMENDMENTS.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 54-8b-2.3, as enacted by Chapter 269, Laws of Utah 1995
14 ENACTS:
15 54-8b-4.5, Utah Code Annotated 1953
16 Be it enacted by the Legislature of the state of Utah:
17 Section 1. Section 54-8b-2.3 is amended to read:
18 54-8b-2.3. Pricing flexibility.
19 (1) (a) A telecommunications corporation that obtains a certificate to compete with the
20 incumbent telephone corporation in a defined geographic area pursuant to Section 54-8b-2.1 may
21 price any public telecommunications services it is authorized to offer, or any new public
22 telecommunications service, by means of a price list or competitive contract.
23 (b) Before the telecommunications corporation begins providing any authorized public
24 telecommunications service, it shall notify the commission of its intent to begin providing the
25 service.
26 (2) (a) Notwithstanding other requirements of this chapter relating to pricing flexibility,
27 an incumbent telephone corporation may offer public telecommunications services by means of

1 a price list or competitive contract as provided in Subsections (b) and (c).
2 (b) (i) An incumbent telephone corporation may petition the commission for pricing
3 flexibility in any proceeding in which another telecommunications corporation has petitioned the
4 commission for a certificate to provide specified public telecommunications services in a defined
5 geographic area that is within the incumbent telephone corporation's service territory.
6 (ii) In the proceeding, the commission shall, by order, grant pricing flexibility to the
7 incumbent telephone corporation for the same or substitutable public telecommunications services
8 in the same defined geographic area.
9 (iii) Pricing flexibility for any public telecommunications service shall become effective
10 when the following conditions are met:
11 (A) the commission has issued a certificate to the competing telecommunications
12 corporation;
13 (B) the competing telecommunications corporation has begun providing the authorized
14 public telecommunications service in the defined geographic area;
15 (C) the incumbent telephone corporation, by written agreement, stipulation, or pursuant
16 to an order of the commission, has allowed the competing telecommunications corporation to
17 interconnect with the essential facilities and to purchase essential services of the incumbent
18 telephone corporation; and
19 (D) the incumbent telephone corporation is in compliance with the rules and orders of the
20 commission adopted or issued under Section 54-8b-2.2.
21 (c) An incumbent telephone corporation may price any new public telecommunications
22 service by means of a price list or competitive contract.
23 (3) The commission may review any new public telecommunications service offered by
24 an incumbent telephone corporation after the applicable tariff, price list, or competitive contract
25 has taken effect.
26 (4) Each price list shall:
27 (a) be filed with the commission;
28 (b) describe the public telecommunications service;
29 (c) set forth the basic terms and conditions upon which the public telecommunications
30 service is offered; and
31 (d) list the prices to be charged for the public telecommunications service or the basis on

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1 which the services will be priced.
2 (5) Prices, terms, and conditions offered under price lists or competitive contracts that are
3 different from tariff prices, terms, and conditions for the same services are not considered
4 discriminatory under Section 54-3-8 and Subsection 54-8b-3.3(2).
5 [(5)] (6) A price list filed with the commission under this section shall take effect five days
6 after it is filed with the commission.
7 [(6)] (7) The prices, terms, and conditions of a public telecommunications service offered
8 by a telecommunications corporation pursuant to a competitive contract with a retail customer
9 shall be filed with the commission.
10 [(7)] (8) The commission may, as determined necessary to protect the public interest, set
11 an upper limit on the price that may be charged by telecommunications corporations for public
12 telecommunications services that may be priced by means of a price list or competitive contract.
13 [(8)] (9) (a) The commission may revoke the authority of a telecommunications
14 corporation to offer a public telecommunications service pursuant to a price list or competitive
15 contract if the commission finds:
16 (i) (A) the telecommunications corporation has violated statutes or rules applicable to the
17 specific service;
18 (B) there has been a material and substantial change in the level of competition; or
19 (C) competition has not developed; and
20 (ii) revocation is in the public interest.
21 (b) The party asserting that revocation should occur shall bear the burden of proof.
22 Section 2. Section 54-8b-4.5 is enacted to read:
23 54-8b-4.5. Commission order -- Negotiated provisions of services -- Contracts under
24 this section.
25 (1) (a) The commission may enter an order partially or wholly exempting any public
26 telecommunications service from any requirement of this title relating to rates, tariffs, or fares.
27 (b) The commission may authorize the provision of all or any portion of a public
28 telecommunications service under stated or negotiated terms to any person that is committed to
29 the acquisition of comparable telecommunications services from an alternative source of supply
30 through construction, lease, or any other form of acquisition.
31 (2) An incumbent telephone corporation may negotiate with the person or entity within

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1 the incumbent telephone corporation's service territory for the provision of public
2 telecommunications services without regard to the provisions of any tariffs on file and approved
3 by the commission, or any price list or competitive contract filed under Section 54-8b-2.3 with the
4 commission but any rate, toll, fare, rental, charge, or classification of service in such contracts shall
5 comply with Subsection 54-8b-3.3(3).
6 (3) (a) Within ten days after the conclusion of the negotiations and prior to the execution
7 of a contract under this section, the incumbent telephone corporation shall file with the
8 commission the proposed final agreements and other evidence of the public telecommunications
9 services to be provided, together with the charges and other conditions of the service.
10 (b) (i) The commission may approve or deny an application, or begin adjudicative
11 proceedings to consider approval of a contract under this section within 30 days of the filing of the
12 application by the incumbent telephone corporation.
13 (ii) If the commission begins adjudicative proceedings, the contract is effective when the
14 commission orders that it is effective.
15 (iii) If the commission fails to approve a contract under this section, or fails to begin
16 adjudicative proceedings within 30 days, the final contract is effective.
17 (c) In determining whether or not to approve a contract under this section, the commission
18 shall consider all relevant factors, including, whether or not the contract for any rate, toll, fare,
19 rental, charge, or classification of service:
20 (i) complies with Subsection 54-8b-3.3(3);
21 (ii) provides for adequate service at just and reasonable rates.
22 (d) After a contract under this section has become effective, if the incumbent telephone
23 corporation is not subject to maximum price regulation for tariffed public telecommunications
24 services under Section 54-8b-2.4, the commission shall in the next general rate case for that
25 incumbent telephone corporation:
26 (i) review the contract for consistency with the factors stated in this subsection; and
27 (ii) make any adjustment in its rate order, including retroactive adjustments, that are
28 necessary to avoid cross subsidization from other regulated intrastate telecommunications services.
29 (4) Any incumbent telephone corporation that provides public telecommunications
30 services pursuant to a contract under this section may not offer the services under contract in a
31 manner that unfairly discriminates between similarly situated customers.

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1 (5) Subject to Subsection (4), terms and conditions offered in contracts under this section
2 that are different from tariff terms and conditions for the same services are not considered
3 discriminatory under Section 54-3-8 and Subsection 54-8b-3.3(2).




Legislative Review Note
as of 11-20-96 8:36 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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