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H.B. 320 Enrolled
AN ACT RELATING TO PUBLIC UTILITIES; SPECIFYING THE DUTIES OF THE PUBLIC
SERVICE COMMISSION; CREATING AND PRESCRIBING DUTIES OF THE OFFICE OF
THE PUBLIC ADVOCATE AND THE ADVISORY BOARD; REPEALING SECTIONS
RELATING TO THE DIVISION OF PUBLIC UTILITIES AND THE COMMITTEE OF
CONSUMER SERVICES; PRESCRIBING A BALANCING TEST FOR THE
DETERMINATION OF WHAT IS JUST AND REASONABLE AND IN CARRYING OUT
DUTIES; ENACTING AND MODIFYING PROVISIONS FOR INFORMAL AND
EXPEDITIOUS RESOLUTION OF ISSUES; CLARIFYING THE COMMISSION'S USE OF
A TEST YEAR IN RATE CASES; AMENDING THE PROCEDURE FOR RECOVERING
CERTAIN FUEL AND ENERGY COSTS; REPLACING THE UTILITY GROSS PROCEEDS
FEE WITH THE UTILITY REGULATION TAX; MAKING TECHNICAL CHANGES;
PROVIDING AN EFFECTIVE DATE; AND PROVIDING A PROCEDURE FOR THE
TRANSITION PERIOD.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
13-1-2, as last amended by Chapter 313, Laws of Utah 1994
54-1-1, as last amended by Chapter 246, Laws of Utah 1983
54-1-3, as last amended by Chapter 246, Laws of Utah 1983
54-1-6, as last amended by Chapters 101 and 122, Laws of Utah 1988
54-1-6.5, as enacted by Chapter 246, Laws of Utah 1983
54-1-7, as last amended by Chapter 246, Laws of Utah 1983
54-1-10, as last amended by Chapter 246, Laws of Utah 1983
54-1-11, as enacted by Chapter 246, Laws of Utah 1983
54-3-1, as last amended by Chapter 206, Laws of Utah 1977
54-3-21, Utah Code Annotated 1953
54-4-1.1, as enacted by Chapter 50, Laws of Utah 1984
54-4-4, as last amended by Chapter 166, Laws of Utah 1975
54-7-1, as last amended by Chapter 161, Laws of Utah 1987
54-7-1.5, as enacted by Chapter 246, Laws of Utah 1983
54-7-12, as last amended by Chapter 170, Laws of Utah 1996
54-7-15, as last amended by Chapter 161, Laws of Utah 1987
54-8b-13, as enacted by Chapter 141, Laws of Utah 1990
54-8b-17, as enacted by Chapter 96, Laws of Utah 1998
54-8b-18, as enacted by Chapter 113, Laws of Utah 1999
67-1-13, as enacted by Chapter 307, Laws of Utah 1999
ENACTS:
54-1-6.7, Utah Code Annotated 1953
54-4-37, Utah Code Annotated 1953
54-5a-1, Utah Code Annotated 1953
54-5a-2, Utah Code Annotated 1953
54-5a-3, Utah Code Annotated 1953
54-5a-4, Utah Code Annotated 1953
54-7-11.5, Utah Code Annotated 1953
54-10a-1, Utah Code Annotated 1953
54-10a-2, Utah Code Annotated 1953
54-10a-3, Utah Code Annotated 1953
54-10a-4, Utah Code Annotated 1953
54-10a-5, Utah Code Annotated 1953
54-10a-6, Utah Code Annotated 1953
54-10a-7, Utah Code Annotated 1953
54-10a-8, Utah Code Annotated 1953
REPEALS:
54-4-1.5, as enacted by Chapter 246, Laws of Utah 1983
54-4a-1, as last amended by Chapter 225, Laws of Utah 1989
54-4a-2, as last amended by Chapter 225, Laws of Utah 1989
54-4a-3, as last amended by Chapter 122, Laws of Utah 1988
54-4a-4, as enacted by Chapter 246, Laws of Utah 1983
54-4a-5, as enacted by Chapter 246, Laws of Utah 1983
54-4a-6, as enacted by Chapter 246, Laws of Utah 1983
54-5-1.5, as last amended by Chapter 170, Laws of Utah 1996
54-5-2, as last amended by Chapter 214, Laws of Utah 1993
54-5-3, as last amended by Chapter 214, Laws of Utah 1993
54-5-4, Utah Code Annotated 1953
54-8b-12, as last amended by Chapter 122, Laws of Utah 1997
54-10-1, as enacted by Chapter 54, Laws of Utah 1977
54-10-2, as last amended by Chapter 243, Laws of Utah 1996
54-10-3, as last amended by Chapter 243, Laws of Utah 1996
54-10-4, as enacted by Chapter 54, Laws of Utah 1977
54-10-4.5, as enacted by Chapter 216, Laws of Utah 1981
54-10-5, as last amended by Chapters 20 and 215, Laws of Utah 1995
54-10-6, as enacted by Chapter 54, Laws of Utah 1977
54-10-7, as last amended by Chapter 20, Laws of Utah 1995
This act enacts uncodified material.
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 13-1-2 is amended to read:
13-1-2. Creation and functions of department -- Divisions created -- Fees.
(1) (a) There is created the Department of Commerce.
(b) The department shall execute and administer state laws regulating business activities and
occupations affecting the public interest.
(2) Within the department the following divisions are created:
(a) the Division of Occupational and Professional Licensing;
(b) the Division of Real Estate;
(c) the Division of Securities;
(d) the [
(e) the Division of Consumer Protection; and
(f) the Division of Corporations and Commercial Code.
(3) (a) Unless otherwise provided by statute, the department may adopt a schedule of fees
assessed for services provided by the department by following the procedures and requirements of
Section 63-38-3.2 .
(b) The department shall submit each fee established in this manner to the Legislature for its
approval as part of the department's annual appropriations request.
(c) (i) All fees collected by each division and by the department shall be deposited in a
restricted account within the General Fund known as the Commerce Service Fund.
(ii) At the end of each fiscal year, the director of the Division of Finance shall transfer into
the General Fund any fee collections that are greater than the department's legislative appropriation
for that year.
(d) The department may not charge or collect any fee nor expend monies from this fund
without approval by the Legislature.
Section 2. Section 54-1-1 is amended to read:
54-1-1. Establishment of commission -- Functions.
(1) The Public Service Commission [
[
adjudicative, and rulemaking powers committed to it by law and may sue and be sued in its own
name.
(2) In the discharge of its duties under this title, the commission shall balance the interests
of consumers of public utility services in the state and public utilities providing service in the state by
considering factors as required by law including:
(a) consumers obtaining safe, efficient, and reliable utility service at a fair price based on the
utility's cost of providing service; and
(b) reasonable opportunities for a public utility to achieve earnings that are sufficient to:
(i) assure confidence in the financial integrity and well-being of the public utility; and
(ii) yield returns to equity holders commensurate with returns on investments in other
business enterprises having corresponding risks and uncertainties.
(3) In balancing the interests of consumers and public utilities, the commission:
(a) shall resolve matters subject to its jurisdiction promptly, fairly, and, if possible, in a
nonadversarial manner; and
(b) may consider the following:
(i) promoting the safe, healthy, economic, efficient, and reliable operation of public utilities
and their services, instrumentalities, equipment, and facilities;
(ii) providing reasonable classifications, rules, regulations, practices, and service of public
utilities;
(iii) making the regulatory process as simple and understandable as possible so that it is:
(A) acceptable to the public;
(B) feasible, expeditious, and efficient to apply; and
(C) designed to minimize controversies over interpretation and application;
(iv) promoting efficient management and operation of public utilities;
(v) providing for fair apportionment of public utility charges among customer categories and
individual customers and preventing undue discrimination in rate relationships;
(vi) promoting stability in prices for customers and financial stability for utilities from year
to year;
(vii) protecting against wasteful use of public utility services;
(viii) providing methods of reducing wide periodic variations in the demand for products,
commodities, or services;
(ix) encouraging conservation of resources and energy;
(x) the cost of providing service to each category of customer;
(xi) the economic impact of charges on each category of customer; and
(xii) the well-being of the state.
(4) When applying a just and reasonable standard in the performance of its duties under this
title, the commission shall balance the interests of consumers and the public utility as prescribed in
this section.
(5) If any provision relating to the balancing of interests in this section, Subsection 54-1-6 (5),
54-1-6.5 (2), 54-3-1 (4), or Section 54-10a-6 conflicts with Title 54, Chapter 8b, Public
Telecommunications Law, then the provisions in Title 54, Chapter 8b, Public Telecommunications
Law, shall control.
Section 3. Section 54-1-3 is amended to read:
54-1-3. Transaction of business by commissioners -- Quorum -- Proceedings by less
than majority or administrative law judge -- Effect of actions.
(1) (a) A majority of the commissioners shall constitute a quorum for:
(i) the transaction of any business[
(ii) the performance of any duty; or [
(iii) the exercise of any power of the commission.
(b) Any action taken by a majority of the commission shall be [
of the commission. [
(c) A vacancy in the commission [
commissioners to exercise [
commission remains.
(d) The commission may hold hearings at any time or place within or without the state.
(2) [
heard by [
[
have annual revenues generated from Utah utility service in excess of $200,000,000; or
[
significant public interest.
(b) If a commission proceeding requiring a majority has commenced and the unavoidable
absence of one or more commissioners results in less than a majority being available to continue the
proceeding, the proceeding may continue before a single commissioner or specified administrative
law judge only upon agreement of the involved public utility and, if it is a party, the [
(3) Any other investigation, inquiry, hearing, or proceeding which the commission has power
to undertake may be conducted before less than a majority of the commission or before an
administrative law judge appointed by the commission.
(4) [
commission or before an administrative law judge shall be [
proceeding of the commission; and
(b) the findings, orders, and decisions made by less than a majority of the commission or by
an administrative law judge, when approved and confirmed by the commission and filed in its office,
shall be [
same effect as if originally made by the commission.
Section 4. Section 54-1-6 is amended to read:
54-1-6. Employment of staff -- Status and compensation -- Employees not to be parties
or witnesses and may not appeal commission decisions.
(1) (a) The annual budget of the [
for the commission to hire, develop, and organize an advisory staff to assist the commission in
performing the powers, duties, and functions committed to it by statute.
[
(i) economists, accountants, engineers, statisticians, lawyers, law clerks, and other
professional and technical experts;
(ii) court reporters, transcribers of tape recordings, clerks, secretaries, and other
administrative and support staff;
(iii) additional experts as required for a particular matter; and
(iv) administrative law judges, who shall be members of the Utah State Bar, and constitute
a separate organizational unit reporting directly to the commission.
[
electronic recording equipment to maintain a verbatim record of [
commission, any commissioner, or any administrative law judge.
(2) (a) With the exception of clerical workers in nonconfidential positions, all staff of the
[
Personnel Management Act, and serve at the pleasure of the commission.
(b) Administrative law judges are exempt employees under [
State Personnel Management Act, and may only be removed from office upon due notice and by a
unanimous vote of the commission.
(c) (i) The Department of Human Resource Management shall determine pay schedules using
standard techniques for determining compensation.
(ii) The Department of Human Resource Management may make its compensation
determinations based upon compensation practices common to utility companies throughout the
United States.
(3) (a) [
provided in this title, no member of the commission's staff or other commission employee may appear
as [
commissioner, or any administrative law judge.
(b) The commission's staff or [
rehearing of or appeal any finding, order, or decision of the commission.
(4) The commission may, with respect to consumer complaints and matters brought before
the commission under Section 54-7-11.5 , direct the commission staff to:
(a) assist the commission in facilitating the resolution of matters brought before the
commission;
(b) review proposals or complaints brought before the commission;
(c) conduct research, studies, and investigations;
(d) provide information, documents, or records to the commission; and
(e) assess the impact of proposed utility rate changes.
(5) In performing its duties, the commission staff shall balance the interests of consumers and
public utilities in the same manner as the commission is directed in Section 54-1-1 .
Section 5. Section 54-1-6.5 is amended to read:
54-1-6.5. Executive staff director -- Appointment -- Functions.
(1) The commission shall appoint an executive staff director, who shall:
(a) serve at the pleasure of the commission [
(b) supervise and coordinate staff functions[
(c) assist the [
(d) perform any other duties the commission may direct.
(2) In performing his or her duties, the executive staff director shall balance the interests of
consumers and public utilities in the same manner as the commission is directed in Section 54-1-1 .
Section 6. Section 54-1-6.7 is enacted to read:
54-1-6.7. Investigations, audits -- Notice -- Adjudicative proceeding.
(1) Any investigation, study, audit, inspection, action, or request for discovery of information
pursuant to this title, shall be preceded by reasonable advance notice to the person or entity against
whom an investigation, study, audit, inspection, enforcement, or discovery is sought.
(2) The person or entity under Subsection (1) may require that an adjudicative proceeding
be commenced prior to the initiation of an investigation, study, audit, inspection, action, or discovery
by commission staff.
Section 7. Section 54-1-7 is amended to read:
54-1-7. Secretary of commission -- Appointment -- Functions.
(1) The commission [
pleasure of the commission.
(2) It shall be the duty of the secretary to keep a full and true record of [
(a) the adjudicative proceedings of the commission [
(b) determinations, rulings, and orders made by the commission, or by any of the
commissioners[
(c) the approval and confirmation by the commission of the determinations, rulings, and
orders made by individual commissioners or administrative law judges.
(3) The secretary shall:
(a) be the custodian of the records of the commission[
(b) file and preserve at its general office [
maps [
its care[
(c) be responsible to the commission for the custody [
Subsection (3)(b).
(4) Under the direction of the commission, the secretary shall:
(a) superintend its clerical business[
(b) conduct its correspondence[
(c) give notice of [
(d) prepare for service papers and notices required by the commission[
(e) perform other duties the commission may prescribe.
(5) The secretary [
of the state in [
(a) any proceeding by or before the commissioners [
(b) in [
secretary.
(6) In the absence of the secretary, the [
to perform the secretary's duties.
Section 8. Section 54-1-10 is amended to read:
54-1-10. Conservation planning -- Annual reports.
(1) The [
utility regulatory policy in order to facilitate the well-planned development and conservation of utility
resources.
(2) (a) The commission shall make and submit to the governor and the Legislature an annual
report containing a full and complete account of the transactions of its office, together with any facts,
suggestions, and recommendations it [
(b) The [
assistance the commission may require in the preparation of the annual report.
(c) The report shall be made and submitted by October 1 of each year, or as soon after as may
be feasible, and shall be published as are the reports of other departments of the state.
Section 9. Section 54-1-11 is amended to read:
54-1-11. Prohibited interests, relationships, and actions by commissioners and
employees.
(1) No person employed as a commissioner or as personnel of the commission shall, while
so employed:
(a) have any direct pecuniary interest, whether as the holder of stock or other securities, or
otherwise have any conflict of interest with any public utility or other entity subject to the jurisdiction
of the commission;
(b) have any office, position, or relationship, or be engaged in any business or avocation
which interferes or is incompatible with the effective and objective fulfillment of the duties of office
or employment with the commission;
(c) accept any gift, gratuity, emolument, or employment in violation of Title 67, Chapter 16,
Utah Public Officers' and Employees' Ethics Act, from any public utility or other entity subject to the
jurisdiction of the commission or from any other officer, agent, or employee thereof; or
(d) solicit, suggest, request, or recommend, directly or indirectly, the appointment of any
person or entity to any office or employment with any public utility or other entity subject to the
jurisdiction of the [
(2) No officer, agent, attorney, or employee of any public utility shall directly or indirectly
solicit, request, or recommend to the governor, any state senator, the commission, or the [
or as executive director of the commission, or the appointment of any person to any commission staff
position.
Section 10. Section 54-3-1 is amended to read:
54-3-1. Charges must be just, service adequate, rules reasonable.
[
any service rendered or to be rendered, shall be just and reasonable. [
(b) Any unjust or unreasonable charge made, demanded, or received for [
[
(2) Each public utility shall furnish, provide, and maintain [
equipment, and facilities [
(a) will promote the safety, health, comfort, and convenience of its patrons, employees, and
the public[
(b) be in all respects adequate, efficient, just and reasonable. [
(3) Each rule or regulation made by a public utility affecting or pertaining to its charges or
service to the public shall be just and reasonable. [
(4) The application of a just and reasonable standard to the charges, service, instrumentalities,
equipment, facilities, rules, and regulations of a public utility shall be consistent with the balancing
of interests as prescribed in Section 54-1-1 .
Section 11. Section 54-3-21 is amended to read:
54-3-21. Commission to be furnished information and copies of records -- Adjudicative
hearings before commission to be public -- Privilege.
(1) [
(a) furnish to the commission, in [
[
by it to carry into effect any of the provisions of this title[
(b) make specific answers to [
(2) [
directions to [
answer each information request fully and correctly [
it is unable to answer any question, it shall give a good and sufficient reason for [
(3) [
to the commission:
(a) copies of any [
accounts, papers [
(i) in its possession [
(ii) in any way relating to its property; or
(iii) affecting its business[
(b) a complete inventory of [
(4) [
of any commissioner shall be open to the public[
(b) Except as provided in Subsection (4)(c), records of [
adjudicative proceedings [
commissioner shall be at all times open to the public[
(c) Any information furnished the commission by a public utility or by any officer, agent, or
employee of any public utility may be withheld from the public [
the period of time [
of the public to withhold [
(d) Any officer or employee of the commission who in violation of the provisions of this
Subsection (4) divulges any such information is guilty of a misdemeanor.
Section 12. Section 54-4-1.1 is amended to read:
54-4-1.1. Wholesale electrical cooperative exempt from rate regulation -- Requirements
for rate increase.
(1) The commission [
regulate, fix, or otherwise approve or establish the rates, fares, tolls, or charges of a wholesale
electrical cooperative.
(2) A wholesale electrical cooperative [
classification of service to any member or the public, one from the other, or from schedules of rates,
fares, tolls, or charges which schedules shall be filed at least annually with the [
(3) The prohibition of this section applies only to the rates, fares, tolls, or charges and does
not exempt wholesale electrical cooperatives from other areas of regulation under this title including,
but not limited to, regulation having an indirect effect on rates, fares, tolls, or charges but which does
not constitute an approval or establishment of them.
(4) (a) (i) A wholesale electrical cooperative must, prior to the implementation of any rate
increase after January 1, 1984, hold a public meeting for [
(ii) Notice must be mailed at least ten days prior to the meeting. [
(b) Any schedule of new rates or other change that results in new rates must be approved by
the board of directors of the wholesale electrical cooperative.
Section 13. Section 54-4-4 is amended to read:
54-4-4. Classification and fixing of rates after hearing.
(1) [
rentals, charges, or classifications[
public utility for, or in connection with, any service [
regulations, practices, or contracts[
charges, or classifications[
or [
rentals, charges, or classifications are insufficient, the commission shall determine the just, reasonable,
or sufficient rates, fares, tolls, rentals, charges, classifications, rules, regulations, practices, or
contracts to be thereafter observed and in force, and shall fix the same by order as [
provided in this section.
(2) The commission [
(a) investigate [
(i) one or more rates, fares, tolls, rentals, charges, classifications, rules, regulations, contracts,
or practices of any public utility; or
(ii) one or more schedules of rates, fares, tolls, rentals, charges, classifications, rules,
regulations, contracts [
(b) establish, after hearing, new rates, fares, tolls, rentals, charges, classifications, rules,
regulations, contracts [
(3) (a) [
demonstrated by the evidence to best reflect conditions that the public utility will encounter during
the period when the rates will be in effect.
(b) In establishing the test period, the commission may use:
(i) a future test period based on projected data not exceeding 20 months from the date of
filing[
(ii) a test period based on historic data that are adjusted for known and measurable changes;
or
(iii) a combination of future projections and historic data.
(c) If the test period is not based exclusively on future projections, the commission shall
consider recent changes outside the test period which are known in nature and measurable in amount.
Section 14. Section 54-4-37 is enacted to read:
54-4-37. Transactions with utility affiliates -- Presumptions.
(1) A public utility's transactions with an affiliate do not carry any presumption of
unreasonableness. The burden of proof in any proceeding is not affected by this provision.
(2) Nothing in this section shall affect the obligations of a telecommunications corporation
under:
(a) Federal Telecommunications Act of 1996, 47 U.S.C. Sec. 251, 252, or 253; or
(b) Title 54, Chapter 8b, Public Telecommunications Law.
Section 15. Section 54-5a-1 is enacted to read:
54-5a-1. Regulation tax.
(1) A tax is imposed upon the gross operating revenue of each public utility subject to the
jurisdiction of the commission.
(2) The tax shall be the greater of:
(a) 3/10 of 1% of the public utility's gross operating revenues for the preceding calendar year
derived from each public utility's business and operations during that period within this state; or
(b) $50.
(3) The following revenue is exempt from the tax imposed by this chapter:
(a) revenue derived from interstate business; and
(b) revenue of a wholesale electric cooperative derived from the sale of power to a rural
electric cooperative which resells that power within the state.
(4) The tax is due and payable to the Department of Commerce on or before July 1 of each
year.
(5) The Department of Commerce shall remit the tax to the state treasurer.
(6) The proceeds of the tax shall be used for:
(a) the administration, support, and maintenance of the commission and the Office of the
Public Advocate;
(b) expenditures by the Office of the Attorney General to provide legal counsel for the
commission and the Office of the Public Advocate; and
(c) the support and maintenance of any other programs, services, or functions provided by
the state, as appropriated by the Legislature.
Section 16. Section 54-5a-2 is enacted to read:
54-5a-2. Basis of the tax.
(1) The gross operating revenues of a public utility shall be determined by the executive
director of the Department of Commerce from:
(a) the annual gross revenue reports filed with the commission; and
(b) other sources of information prescribed by rule of the commission.
(2) (a) A public utility liable for the tax assessed under this chapter shall file a report with the
commission showing its gross operating revenue subject to the tax on or before April 15 of each tax
year.
(b) If the public utility fails to file the report as required under Subsection (2)(a), the
executive director of the Department of Commerce shall:
(i) compute or estimate the amount of tax due and payable; and
(ii) assess the tax against the public utility.
Section 17. Section 54-5a-3 is enacted to read:
54-5a-3. Default in payment of tax -- Procedure to collect -- Penalties.
(1) If the tax imposed under this chapter is due and the payment is in default, a lien in the
amount of the tax may be filed against the property of the utility and may be foreclosed in an action
brought by the executive director of the Department of Commerce in the district court of any county
in which property of the delinquent utility is located.
(2) (a) If the tax computed and imposed under this chapter is not paid within 60 days after
it becomes due, the rights and privileges of the delinquent utility shall be suspended.
(b) The executive director of the Department of Commerce shall transmit the name of the
utility to the commission, which may immediately enter an order suspending the operating rights of
the utility.
Section 18. Section 54-5a-4 is enacted to read:
54-5a-4. Penalties.
(1) Any utility whose operating rights have been suspended under Section 54-5a-3 which
exercises or attempts to exercise any right or privilege as a utility during the time period for which
its operating rights have been suspended is guilty of a class B misdemeanor.
(2) Each day's violation shall constitute a separate offense.
(3) Jurisdiction of the offense shall be held to be in any county in which any part of the
transaction of business occurred.
(4) Each contract made in violation of this section is unenforceable by the corporation.
Section 19. Section 54-7-1 is amended to read:
54-7-1. Settlement -- Limitation of issues.
(1) Informal resolution, by agreement of the parties, of matters before the commission is
encouraged[
(a) resolve disputes while minimizing time and expense to public utilities, the state, and
consumers;
(b) enhance administrative efficiency; and
(c) enhance the regulatory process by allowing the commission to concentrate on those issues
which adverse parties cannot otherwise resolve.
(2) The commission may [
the parties the right to maintain confidentiality in the negotiation process.
(3) (a) At any time before or during [
commission, the parties, between themselves or with the commission or a commissioner, may engage
in settlement conferences and negotiations.
(b) The commission may adopt [
all parties initiating a proceeding and all parties against whom a proceeding is initiated.
(c) The commission shall notify all parties to the proceeding of the terms of any proposed
settlement.
(d) The commission shall consider the significant and material facts related to the case and
may adopt settlement proposals provided that the evidence, enumerated in the record, supports a
finding that the settlement is just and reasonable in result and the commission finds that the settlement
is just and reasonable in result. If the commission finds that the settlement is just and reasonable in
result, the commission may determine if the need exists to inquire into:
(i) each party's rationale for supporting the settlement; or
(ii) each party's position regarding the individual components or aspects of the case or
settlement.
(e) The commission may adopt a settlement proposal after conducting any hearing required
by statute. However, the commission shall conduct a hearing if requested by the party initiating the
proceeding or the party against whom the proceeding is initiated.
(f) The commission may order a hearing at the request of an intervening party.
(g) The commission shall accept or reject settlement proposals within a reasonable time.
(4) In cases or procedures involving rate increases as defined in Section 54-7-12 , the
commission may limit the factors and issues to be considered in its determination of just and
reasonable rates.
Section 20. Section 54-7-1.5 is amended to read:
54-7-1.5. Communications between commission personnel and parties restricted.
(1) No member of the [
employee who is or may reasonably be expected to be involved in the decision-making process, shall
make or knowingly cause to be made to any party any communication relevant to the merits of any
matter under [
are afforded to all parties.
(2) (a) No party shall make or knowingly cause to be made to any member of the
commission, administrative law judge, or commission employee who is or may reasonably be
expected to be involved in the decision-making process, an ex parte communication relevant to the
merits of any matter under [
(b) Any member of the commission, administrative law judge, or commission employee who
receives an ex parte communication shall place the communication into the public record of the
proceedings and afford all parties an opportunity to comment on the information.
Section 21. Section 54-7-11.5 is enacted to read:
54-7-11.5. Initial conferences.
(1) (a) Before filing a request for agency action, a potential party or parties are encouraged
to confer with the commission and its staff concerning a contemplated request. The commission shall
hold an initial conference with the potential party or parties requesting the conference. For any
subsequent conferences, the commission shall invite to participate the Office of the Public Advocate
and other potential parties with a substantial interest in the contemplated request and may invite other
potential parties to participate.
(b) Requests for conferences described in Subsection (1)(a):
(i) are not requests for agency action under Subsection 63-46b-3 (b); and
(ii) do not require notice of the conferences.
(c) The commission or a designated administrative law judge, and such staff as the
commission or administrative law judge shall determine, shall offer advice and assistance and, in
accordance with Section 63-46b-1 , seek to:
(i) encourage settlement;
(ii) clarify the issues;
(iii) simplify the evidence;
(iv) facilitate discovery; and
(v) expedite the proceedings.
(2) During the conferences described in Subsection (1), the commission or the administrative
law judge and staff are encouraged to seek resolution of the issues presented. If a resolution
requiring commission action is achieved, the commission shall:
(a) issue an initial order reflecting the resolution; and
(b) initiate an adjudicative proceeding in accordance with Subsection 63-46b-3 (1)(a) to
implement the resolution.
(3) Nothing in this section precludes the initiation of an adjudicative proceeding by any party
requesting a conference before the commission issues an initial order.
(4) (a) When an adjudicative proceeding is commenced by anyone other than the Office of
the Public Advocate, the Office of the Public Advocate shall, except as provided in Subsections (4)(c)
and (d), before intervening in the proceeding:
(i) make a bonafide effort to confer with the party initiating the request; or
(ii) if the adjudicative proceeding is commenced by the commission, make a bonafide effort
to confer with the commission and any public utility directly affected by the commission action.
(b) The Office of the Public Advocate is directed at the conference to:
(i) encourage settlement;
(ii) clarify the issues;
(iii) simplify the evidence;
(iv) facilitate discovery; and
(v) expedite the proceedings.
(c) In any proceeding where the commission is required by statute to issue tentative or final
orders in less than 30 days, the Office of the Public Advocate may intervene. If further proceedings
follow, the Office of the Public Advocate shall confer as provided in Subsections (4)(a) and (b) as
soon as practicable.
(d) If the commission has discretion, and intends, to issue a final or tentative order in less than
30 days, the commission shall notify the Office of Public Advocate of its intention to issue the order,
and the Office of the Public Advocate may intervene. If further proceedings follow, the Office of the
Public Advocate shall confer as provided in Subsections (4)(a) and (b) as soon as practicable.
Section 22. Section 54-7-12 is amended to read:
54-7-12. Rate increase or decrease -- Procedure -- Effective dates -- Electrical or
telephone cooperative.
(1) As used in this section:
(a) "Rate increase" means any direct increase in a rate, fare, toll, rental, or other charge of
a public utility or any modification of a classification, contract, practice, or rule that increases a rate,
fare, toll, rental, or other charge of a public utility.
(b) "Rate decrease" means any direct decrease in a rate, fare, toll, rental, or other charge of
a public utility or any modification of a classification, contract, practice, or rule that decreases a rate,
fare, toll, rental, or other charge of a public utility.
(2) (a) Any public utility or other party that proposes to increase or decrease rates shall file
appropriate schedules with the commission setting forth the proposed rate increase or decrease.
(b) The commission shall, after reasonable notice, hold a hearing to determine whether the
proposed rate increase or decrease, or some other rate increase or decrease, is just and reasonable.
If a rate decrease is proposed by a public utility, the commission may waive a hearing unless it seeks
to suspend, alter, or modify the rate decrease.
(c) Except as otherwise provided in Subsections (3) and (4), no proposed rate increase or
decrease is effective until after completion of the hearing and issuance of a final order by the
commission concerning the proposed increase or decrease.
(3) (a) [
proposed rate increase or decrease filed by a utility or proposed by any other party, or the commission
in an initial order under Section 54-7-11.5 , and to the implementation of any other increase or
decrease in lieu of that proposed by a utility [
[
party, the commission, after a hearing, may allow any proposed rate increase or decrease[
which is just or reasonable, or a just and reasonable part of the rate increase or decrease, to take
effect, subject to the commission's right to order a refund or surcharge, upon the filing of the utility's
schedules or at any time during the pendency of its [
(ii) The evidence presented in the hearing held pursuant to this Subsection (3)(b) need not
encompass all issues that may be considered in a rate case hearing held pursuant to Subsection (2)(b),
but shall establish an adequate prima facie showing that the interim rate increase or decrease is
justified.
[
before the expiration of 240 days from the date the rate increase or decrease proposal is filed, it may
issue a final order within that period establishing the utility's revenue requirement and fixing its interim
allowable rates before it determines the allocation of the increase or decrease among categories of
customers and classes of service.
(ii) If the commission in its final order on a utility's revenue requirement finds that the interim
increase order under Subsection (3)[
utility to refund the excess to customers.
(iii) If the commission in its final order on a utility's revenue requirement finds that the interim
decrease order under Subsection (3)[
surcharge to customers to recover the excess decrease.
[
within 240 days after the [
by a public utility or an increase proposed by an initial order of the commission, the rate increase
proposed by the utility or the commission is final and the commission may not order a refund of any
amount already collected by the utility under its filed rate increase.
[
cost to the utility for fuel [
or energy, other than transportation by the public utility on its local distribution system, and the fuel,
energy, or services are purchased or obtained from [
an independent contractor or independent source of supply or any supplier whose prices are regulated
by a governmental agency, the requested increase shall take effect 20 days after the filing of the
request with the commission or at any earlier time after the filing of the request as the commission
may by order permit.
(ii) The commission shall [
within 20 days only after a showing has been made by the public utility to the commission that the
increase is justified.
(iii) If the commission issues an interim order under Subsection (3)(e)(ii), the commission
shall complete the hearing and issue a final order before the expiration of 240 days after the utility's
proposed rate increase is filed. If the commission fails to enter its final order within the 240 days, the
interim order becomes a final order and the commission may not refund any amount already collected
by the utility under the interim order.
(iv) The commission may, after a hearing, suspend, alter, or modify the increase.
(v) (A) The commission is not precluded from otherwise using mechanisms, such as a
pass-through account or energy-balancing account, but the procedural mechanisms for expedited
orders described in Subsections (3)(e)(i) and (ii) do not apply.
(B) Whenever the commission changes the method of recovery of expenses by removing
them from mechanisms such as the pass-through or energy-balancing account, such change shall
operate prospectively after the utility is afforded a reasonable opportunity to have its
prudently-incurred expenses that were previously recovered in such mechanisms recovered by some
other means.
(4) (a) Notwithstanding [
classification, practice, or rule filed by a public utility with the commission that does not result in any
rate increase shall take effect 30 days after the date of filing or within any lesser time the commission
may grant, subject to its authority after a hearing to suspend, alter, or modify that schedule,
classification, practice, or rule.
(b) [
hold a hearing on the schedule, classification, practice, or rule before issuing its final order.
(c) For purposes of this Subsection (4), any schedule, classification, practice, or rule that
introduces a service or product not previously offered may not result in a rate increase.
(5) [
schedule, classification, practice, or rule [
by initial order under Section 54-7-11.5 may be adopted by the commission as its final order without
a hearing if:
[
[
[
(a) the commission mails notice of its initial order to each person who has requested notice
of the initial orders and the commission provides other notice it considers appropriate; and
(b) there is no objection to the initial order within 20 days from the service of notice.
(6) Any person receiving notice under Subsection (5)(a) who has not objected to the
commission's order under Subsection (5)(b) may not seek judicial review of the commission's order
under Title 63, Chapter 46b, Administrative Procedures Act.
(7) To the extent that time frames provided for the issuance of orders or for the effective date
of schedules, classifications, practices, rules, or rate increases in Subsections (2) through (5) are
inconsistent with any otherwise applicable time frames under Title 63, Chapter 46b, Administrative
Procedures Act, the time frames provided in Subsections (2) through (5) shall supercede the time
frames provided in Title 63, Chapter 46b, Administrative Procedures Act.
[
cooperative that meets [
[
providing telecommunication services to its members and the public at cost. "At cost" includes
interest costs and a reasonable rate of return as determined by the cooperative's board of directors.
[
government have approved the rate increase or other rate change and all necessary tariff revisions
reflecting the increased rate or rate change.
[
for all its customers and members. The cooperative shall mail a notice of the meeting to all of the
cooperative's customers and members not less than ten days prior to the date that the meeting is held.
[
change with the commission, who shall make the tariffs available for public inspection.
[
corporation having less than 5,000 subscriber access lines are as follows:
(a) (i) The proposed rate increase may become effective upon the filing of the proposed tariff
revisions and necessary information to support a determination by the commission that the proposed
rate increase is just and reasonable.
(ii) The telephone corporation shall provide 30 days' notice to the commission and all
potentially affected access line subscribers of the proposed rate increase.
(b) (i) The commission may investigate whether the proposed rate increase is just and
reasonable.
(ii) If the commission determines, after notice and hearing, that the rate increase is unjust or
unreasonable in whole or in part, the commission may establish the rates, charges, or classifications
that it finds to be just and reasonable.
(c) The commission shall investigate and hold a hearing to determine whether any proposed
rate increase is just and reasonable if 10% or more of the telephone corporation's potentially affected
access line subscribers file a request for agency action requesting an investigation and hearing.
Section 23. Section 54-7-15 is amended to read:
54-7-15. Review or rehearing by commission -- Application -- Procedure --
Prerequisite to court action -- Effect of commission decisions.
(1) Before seeking judicial review of the commission's action, any party, stockholder,
bondholder, or other person pecuniarily interested in the public utility who is dissatisfied with an
order of the commission shall meet the requirements of this section.
(2) (a) After any order or decision, except an initial order and decision issued pursuant to
Section 54-7-11.5 , has been made by the commission, any party to the action or proceeding, or any
stockholder [
apply for rehearing of any [
(b) No applicant may urge or rely on any ground not set forth in the application in an appeal
to any court.
(c) Any application for rehearing not granted by the commission within 20 days is denied.
(d) (i) If the commission grants any application for rehearing without suspending the order
involved, the commission shall issue its decision on rehearing within 20 days after final submission.
(ii) If the commission fails to render its decision on rehearing within 20 days, the order
involved is affirmed.
(e) Unless an order of the commission directs that an order is stayed or postponed, an
application for review or rehearing does not excuse any corporation or person from complying with
and obeying any order or decision of the commission.
(3) Any order or decision on rehearing that abrogates, changes, or modifies an original order
or decision has the same force and effect as an original order or decision, but does not affect any
right, or the enforcement of any right, arising from the original order or decision unless so ordered
by the commission.
(4) Any order of the commission, including decisions on rehearing, shall have binding force
and effect only with respect to public utilities that were actual parties to the proceeding, and do not
determine any rights, privileges, obligations, duties, constraints, burdens, or responsibilities with
respect to public utilities that were not party to the proceeding in which the order or decision was
rendered unless the commission enacts a rule in compliance with Section 63-46a-3 of the Utah
Administrative Rulemaking Act that incorporates the principles of law not already in its rules that are
established by the order.
Section 24. Section 54-8b-13 is amended to read:
54-8b-13. Rules governing operator assisted services.
(1) The commission shall make rules to implement the following requirements pertaining to
the provision of operator assisted services:
(a) Rates, surcharges, terms, or conditions for operator assisted services shall be provided
to customers upon request without charge.
(b) A customer shall be made aware, prior to incurring any charges, of the identity of the
operator service provider handling the operator assisted call by a form of signage placed on or near
the telephone or by verbal identification by the operator service provider.
(c) Any contract between an operator service provider and an aggregator shall contain
language which assures that any person making a telephone call on any telephone owned or controlled
by the aggregator or operator service provider can access:
(i) where technically feasible, any other operator service provider operating in the relevant
geographic area; and
(ii) the public safety emergency telephone numbers for the jurisdiction where the aggregator's
telephone service is geographically located.
(d) No operator service provider shall transfer a call to another operator service provider
unless that transfer is accomplished at, and billed from, the call's place of origin. If such a transfer
is not technically possible, the operator service provider shall inform the caller that the call cannot be
transferred as requested and that the caller should hang up and attempt to reach another operator
service provider through the means provided by that other operator service provider.
(2) (a) The [
for enforcing any rule adopted by the commission under this section.
(b) If the [
person, or any officer or employee of any person, is violating any rule adopted under this section, the
[
(i) specifies the violation;
(ii) alleges the facts constituting the violation; and
(iii) specifies the corrective action to be taken.
(c) After serving notice as required in Subsection (2)(b), the [
Advocate may request the commission to issue an order to show cause. After a hearing, the
commission may impose penalties and, if necessary, may request the attorney general to enforce the
order in district court.
(3) (a) Any person who violates any rule made under this section or fails to comply with any
order issued pursuant to this section is subject to a penalty not to exceed $2,000 per violation.
(b) In the case of a continuing violation, each day that the violation continues constitutes a
separate and distinct offense.
(4) A penalty assessment under this section does not relieve the person assessed from civil
liability for claims arising out of any act which was a violation of any rule under this section.
Section 25. Section 54-8b-17 is amended to read:
54-8b-17. Procedures for enforcement of interconnection service quality -- Penalties
for violation -- Funds collected.
(1) Proceedings under Subsection 54-8b-2.2 (1)(e) shall be conducted in accordance with the
following procedure:
(a) The complaint shall be served upon the defendant telecommunications corporation and
filed with the commission. A copy of the complaint shall also be served upon the [
(b) An answer or other responsive pleading to the complaint shall be filed with the
commission not more than ten days after receipt of service of the complaint. Copies of the answer
or responsive pleading shall be served on the complainant and the [
of the Public Advocate.
(c) A prehearing conference shall be held not later than ten days after the complaint is filed.
(d) (i) The commission shall commence a hearing on the complaint not later than 25 days
after the complaint is filed, unless the commission finds that extraordinary conditions exist that
warrant postponing the hearing date, in which case the commission shall commence the hearing as
soon as practicable.
(ii) Parties shall be entitled to present evidence as provided by the commission's rules.
(e) The commission shall take final action on a complaint not more than 45 days after the
complaint is filed unless:
(i) the commission finds that extraordinary conditions exist that warrant extending final
action, in which case the commission shall take final action as soon as practicable; or
(ii) the parties agree to an extension of final action by the commission.
(2) The commission shall have the enforcement powers listed in Subsection (3) if, in the
proceeding, the commission finds that:
(a) the telecommunications corporation has violated the terms of the commission's
interconnection service quality rules;
(b) the telecommunications corporation has breached its obligations under the provisions of
the Federal Telecommunications Act;
(c) either party to an approved interconnection agreement has violated the terms of the
agreement; or
(d) either party has violated the terms of a statement of generally available terms.
(3) If the commission makes any of the findings described in Subsection (2), the commission
shall:
(a) order the telecommunications corporation to:
(i) remedy the violation; and
(ii) comply, as applicable, with the terms of the commission's interconnection service quality
rules, the interconnection agreement, or statement of generally available terms;
(b) if considered appropriate by the commission, prescribe the specific actions that the
telecommunications corporation must take to remedy its violation, including a time frame for
compliance and the submission of a plan to prevent future violations;
(c) if considered appropriate by the commission, impose a penalty on the defendant
telecommunications corporation subject to the following:
(i) if the violation is of the duties imposed under Section 54-8b-2.2 or 54-8b-16 , the
commission may impose a penalty for such violation as provided in Section 54-7-25 ; or
(ii) if the violating telecommunications corporation is other than an incumbent telephone
corporation with fewer than 50,000 access lines in this state, and the violation is of a duty imposed
under an interconnection agreement, a statement of generally available terms, or the obligations of
Section 251 of the Federal Telecommunications Act, the commission may impose a penalty subject
to the following:
(A) if the commission finds that the violation was willful or intentional, the penalty may be
in an amount of up to $5,000 per day and the period for which the penalty is levied shall commence
on the date the commission finds the violation to have first occurred through and including the date
the violation is corrected; or
(B) if the commission finds that the violation was not willful or intentional, the penalty may
be in an amount prescribed by Section 54-7-25 and the period for which the penalty is levied shall
commence on the day after the deadline for compliance in the commission's order.
(4) (a) The commission shall have the authority, on its own or at the request of the injured
telecommunications corporation, to investigate a party's compliance with the commission's order
under Subsection (3)(c)(ii).
(b) If corrective or remedial action acceptable to the commission is not completed:
(i) 45 days after the deadline set by the commission, the commission may increase the penalty
up to $10,000 per violation per day for a willful or intentional violation; or
(ii) 90 days after the deadline set by the commission, the commission may increase the penalty
up to $4,000 per violation per day for a violation that is not willful or intentional.
(5) (a) The penalty under Subsection (3)(c) shall be in addition to, and not in lieu of, civil
damages or other remedies that may be available to the injured party.
(b) In determining the amount of the penalty or the amount agreed to in compromise, the
commission shall consider:
(i) the appropriateness of the penalty to the size of the violating party;
(ii) the gravity of the violation;
(iii) the good faith of the defendant telecommunications corporation in attempting to achieve
compliance after notification of the violation;
(iv) the impact of the violation to the establishment of competition; and
(v) the actual economic harm incurred by the plaintiff telecommunications corporation.
(c) Each day of a continuing violation or a failure to comply is a separate offense for purposes
of levying a penalty under this section.
(6) All funds collected under this section shall go into the Universal Public
Telecommunications Service Support Fund established under Section 54-8b-15 , and shall be in
addition to any contributions required of a telecommunications corporation under that section.
Section 26. Section 54-8b-18 is amended to read:
54-8b-18. Definitions -- Unauthorized change of telecommunications provider --
Unauthorized charges -- Procedures for verification -- Penalties -- Authority of commission.
(1) For purposes of this section:
(a) "Agents" includes any person, firm, or corporation representing a telecommunications
corporation for purposes of requesting a change in a subscriber's telecommunications provider, but
does not include a local service provider when executing a request submitted by another service
provider or its agents.
(b) "Freeze" means a directive from a subscriber to retain the provider of public
telecommunications services selected by the subscriber until the subscriber provides authorization for
a change to another provider of public telecommunications services through any means by which a
freeze is implemented.
(c) "Small commercial subscriber" is a person or entity conducting a business, agriculture,
or other enterprise in the state having less than five telecommunications lines.
(d) "Subscriber" means a corporation, person, or government, or a person acting legally on
behalf of a corporation, person, or government who has purchased public telecommunications
services from a telecommunications corporation.
(2) No telecommunications corporation or its agents shall make any change or authorize a
different telecommunications corporation to make any change in the provider of any public
telecommunications service to a subscriber unless it complies, at a minimum, with Subsections (2)(a)
through (e). This Subsection (2) does not apply to a telecommunications corporation that effectuates
a change in service provider pursuant to a change authorization submitted or requested by another
telecommunications corporation.
(a) The telecommunications corporation or its agents shall, at a minimum, inform the
subscriber of the nature, extent, and rates of the service being offered and any charges associated with
the change.
(b) Notwithstanding Section 13-26-4 , changes in provider of telecommunication service
accomplished through telephone solicitation shall comply with the Telephone Fraud Prevention Act,
Sections 13-26-2 , 13-26-8 , 13-26-10 , and 13-26-11 .
(c) For sales of residential service or small commercial subscriber service, the
telecommunications corporation or its agents shall confirm that the subscriber is aware of any charges
that the subscriber must pay associated with the change and that the subscriber authorizes the change
of provider. The subscriber's authorization to change the provider shall be confirmed by any one of
the following methods:
(i) obtaining the subscriber's written authorization;
(ii) having the subscriber's oral authorization verified by an independent third party; or
(iii) any means provided by rule of the Federal Communications Commission or the
commission.
(d) If the subscriber is not an individual, an authorization shall be valid only if given by an
authorized representative of the subscriber.
(e) (i) The written authorization to change the provider shall be signed by the subscriber and
shall contain a clear, conspicuous, and unequivocal request by the subscriber for a change of
telecommunications provider.
(ii) A written authorization is not valid if it is presented to the subscriber for signature in
connection with a sweepstakes, game of chance, or any other means prohibited by commission rule.
(iii) Nothing in this section shall be construed to prohibit any person from offering a premium,
incentive, or a thing of value to another as consideration for authorizing a change of
telecommunications service provider, provided that no element of chance or skill is associated with
the offer of the premium, incentive, or thing of value or its receipt.
(3) The confirmation by a third-party verifier shall, at a minimum:
(a) confirm the subscriber's identity with information unique to the customer, unless the
customer refuses to provide identifying information, then that fact shall be noted;
(b) confirm that the subscriber agrees to the requested change in telecommunications service
providers; and
(c) confirm that the subscriber has the authority to select the provider as the provider of that
service.
(4) A third-party verifier shall meet each of the following criteria:
(a) any criteria for third-party verifiers set by the Federal Communications Commission;
(b) not be directly or indirectly managed, controlled, directed, or owned wholly or in part:
(i) by the telecommunications corporation or its agents that seek to provide the
telecommunications service or by any corporation, firm, or person who directly or indirectly manages,
controls, directs, or owns more than 5% of the telecommunications corporation; or
(ii) by the marketing entity that seeks to market the telecommunications service or by any
corporation, firm, or person who directly or indirectly manages, controls, directs, or owns more than
5% of the marketing entity;
(c) operate from facilities physically separated from:
(i) those of the telecommunications corporation or its agents that seek to provide the
subscriber's telecommunications service; or
(ii) those of the marketing entity that seeks to market a telecommunications service to the
subscriber; and
(d) not derive commissions or compensation based upon the number of change authorizations
verified.
(5) A telecommunications corporation or its agents seeking to verify the change authorization
shall connect the subscriber to the third-party verifier or arrange for the third-party verifier to call the
subscriber to verify the change authorization.
(6) A third-party verifier that obtains the subscriber's oral verification regarding the change
shall record that verification by obtaining appropriate verification data.
(7) (a) The record verifying a subscriber's change of provider shall be available to the
subscriber upon request.
(b) Information obtained from the subscriber through verification may not be used for any
other purpose.
(c) Any intentional unauthorized release of the information in Subsection (7)(b) is grounds
for penalties or other action by the commission or remedies provided by law to the aggrieved
subscriber against the telecommunications corporation, third-party verifier, their agents, or their
employees who are responsible for the violation.
(8) The third-party verification shall occur in the same language as that in which the change
was solicited.
(9) The verification requirements described in this section shall apply to all changes in the
provider of any public telecommunications service.
(10) The commission may promulgate rules:
(a) necessary to implement this section;
(b) consistent with any rules promulgated by the Federal Communications Commission; and
(c) in a nondiscriminatory and competitively neutral manner.
(11) (a) Each subscriber may elect to require the telecommunications corporation providing
the subscriber's local exchange service to implement a freeze until the subscriber provides
authorization for a change to another provider of public telecommunications services.
(b) Once a subscriber has elected the freeze option under Subsection (11)(a), the
telecommunications corporation providing the subscriber's local exchange service may not process
a request to change the subscriber to another provider of telecommunications services without prior
authorization directly from the subscriber.
(12) (a) Whenever the subscriber's provider of a telecommunications service changes, the new
provider shall:
(i) retain a record of the verified change authorization consistent with requirements of the
Federal Communications Commission or rules issued by the commission; and
(ii) be responsible for providing a conspicuous notice of the change within 30 days of the
effective date of the change of service.
(b) At a minimum, the notice in Subsection (12)(a)(ii) shall identify the new provider, contain
a general description of the service and price, and provide information necessary for the subscriber
to have questions answered or to rescind the change.
(13) Any bill shall identify each telecommunications service provider of telecommunication
service for which billing is rendered.
(14) (a) Any person or provider of telecommunications service inadvertently or knowingly
designating or changing the subscriber's telecommunications service provider in violation of this
section shall refund to the subscriber any amounts required by the rules of the Federal
Communications Commission and the commission.
(b) The unauthorized provider in Subsection (14)(a) additionally shall:
(i) bear all costs of restoring the customer to the service of the subscriber's original service
provider; and
(ii) pay to any other telecommunications provider any fees set by the commission for the
designation or change.
(15) Proceedings for violations of this section may be commenced by request for agency
action filed with the commission by a subscriber, a telecommunications corporation, the [
(16) Any telecommunications corporation, its agents, or a third-party verifier who violates
this section or rules adopted to implement this section shall be subject to the provisions of Sections
54-7-23 through 54-7-29 .
(17) The commission is granted authority to enforce provisions relating to an unauthorized
telecommunication service provider change in interstate and intrastate telecommunication service
involving telecommunications corporations operating in the state.
Section 27. Section 54-10a-1 is enacted to read:
54-10a-1. Establishment of Office of the Public Advocate -- Functions.
(1) There is established within the Department of Commerce the Office of the Public
Advocate which may:
(a) initiate and participate in initial conferences pursuant to Section 54-7-11.5 , commence
original proceedings, file complaints, appear as a party, present factual information and evidence,
examine witnesses, advocate policy recommendations, commence appeals, otherwise participate in
proceedings before the commission, and engage in all other activities consistent with its statutory
responsibilities;
(b) commence original proceedings, file complaints, appear as a party, appeal, and otherwise
represent the public interest in matters and proceedings involving regulation of a public utility pending
before any officer, department, board, agency, commission, governmental authority, or court of Utah,
of another state, or of the United States, and may intervene in, protest, resist, or advocate the
granting, denial, or modification of any petition, application, complaint, or other proceeding, or any
decision or order of any of those governmental authorities;
(c) investigate or study, upon complaint, upon order of the commission, or upon its own
initiative, any matter within the jurisdiction of the commission;
(d) conduct audits and inspections, or take enforcement actions regarding any matter within
the jurisdiction of the commission in order to insure compliance with decisions, orders, and policies
of the commission, either upon order of the commission or upon its own initiative;
(e) require any person or entity subject to the jurisdiction of the commission to:
(i) provide information, reports, and other data compilations relevant to matters within the
jurisdiction of the commission;
(ii) provide access to inspect and copy records and other data compilations relevant to
matters within the jurisdiction of the commission;
(iii) permit inspection of properties and tangible things used in providing public utility service;
and
(iv) engage in other methods of discovery authorized by the commission;
(f) review applications filed with the commission and present recommendations to the
commission on the disposition of those applications;
(g) make recommendations regarding public utility regulatory policy and long-range planning
on matters within the jurisdiction of the commission;
(h) after balancing the interests of consumers and the public utility as outlined in Section
54-1-1 , take a position in a matter before the commission, but may not specifically appear on behalf
of any individual, organization, or entity;
(i) assess the impact of utility rate changes and other regulatory actions;
(j) assist residential consumers, agricultural consumers, and those engaged in small
commercial enterprises in appearing before the commission; and
(k) engage in settlement negotiations and make stipulations or agreements regarding matters
within the jurisdiction of the commission.
(2) (a) Any investigations, studies, audits, inspections, enforcement actions, or requests for
discovery of information pursuant to Subsection (1)(c), (d), or (e), shall be preceded by reasonable
advance notice to the person or entity against whom investigation, study, audit, inspection,
enforcement, or discovery is sought.
(b) The targeted person or entity may require that a complaint or an adjudicative proceeding
be instituted with the commission prior to the commencement of the investigation, study, audit,
inspection, enforcement, or discovery by the Office of the Public Advocate pursuant to Subsection
(1)(c), (d), or (e).
Section 28. Section 54-10a-2 is enacted to read:
54-10a-2. Director of Office of the Public Advocate -- Appointment -- Authority and
responsibility.
(1) The director of the Office of the Public Advocate shall be appointed by the executive
director of the Department of Commerce and shall serve at the pleasure of the executive director.
(2) The director of the Office of the Public Advocate is subject to the administrative authority
of the executive director of the Department of Commerce and is responsible for the administration
and supervision of the division.
(3) The director of the Office of the Public Advocate shall have authority to adopt internal
organizational measures to effectuate efficiency and economy in the management and operation of
the Office of the Public Advocate.
Section 29. Section 54-10a-3 is enacted to read:
54-10a-3. Budget of Office of the Public Advocate -- Employment of personnel.
(1) The annual budget of the Office of the Public Advocate shall provide sufficient funds for
the Office of the Public Advocate to hire, develop, and organize a technical and professional staff to
perform the duties, powers, and responsibilities committed to it by statute.
(2) The director of the Office of the Public Advocate may:
(a) hire economists, accountants, engineers, inspectors, statisticians, and other technical and
professional experts as may be required;
(b) retain additional experts as required for a particular matter, but only to the extent that it
is necessary to supplement staff of the Office of the Public Advocate in order to fulfill its duties; and
(c) employ necessary administrative and support staff.
(3) (a) The Department of Human Resource Management shall determine pay schedules using
standard techniques for determining compensation.
(b) The Department of Human Resource Management may make its compensation
determinations based upon compensation common to utility companies throughout the United States.
Section 30. Section 54-10a-4 is enacted to read:
54-10a-4. Legal counsel.
The attorney general shall appoint sufficient full-time legal counsel to assist, advise, and
represent the Office of the Public Advocate and its staff in the discharge of its duties and in all
proceedings before the commission, and in all other proceedings.
Section 31. Section 54-10a-5 is enacted to read:
54-10a-5. Interests, relationships, and actions by employees prohibited.
No employee of the Office of the Public Advocate shall, while so employed:
(1) have any direct pecuniary interest, whether as the holder of stock or other securities, or
otherwise have any conflict of interest with any public utility or other entity subject to the jurisdiction
of the commission;
(2) have any office, position, or relationship, or be engaged in any business or avocation
which interferes or is incompatible with the effective and objective fulfillment of the duties of office
or employment with the Office of the Public Advocate;
(3) accept any gift, gratuity, emolument, or employment in violation of Title 67, Chapter 16,
Utah Public Officers' and Employees' Ethics Act, from any public utility or any other entity subject
to the jurisdiction of the commission or from any officer, agent, or employee thereof; or
(4) solicit, suggest, request, or recommend, directly or indirectly, the appointment of any
person or entity to any office or employment with any public utility or other entity subject to the
jurisdiction of the commission.
Section 32. Section 54-10a-6 is enacted to read:
54-10a-6. Objectives.
(1) After balancing the interests of consumers and the public utility as outlined in Section
54-1-1 , the Office of the Public Advocate:
(a) shall, in the performance of its duties, powers, and responsibilities under this title, provide
the commission with objective and comprehensive information, evidence, and recommendations; and
(b) may take a position which it determines to be:
(i) in the interest of consumers, including residential, agricultural, industrial, and commercial
consumers;
(ii) in the interest of the utility; or
(iii) a reasonable compromise of the interests in Subsections (b)(i) and (b)(ii).
(2) (a) As used in this Subsection 54-10a-6 (2), "small commercial consumer" means a person
or entity conducting a business, agricultural, or other enterprise in the state having less than 25
employees or a gross income less than $1,000,000 annually.
(b) Notwithstanding the requirement of Subsection (1) to balance the interests of consumers
and the public utility, the director of the Office of the Public Advocate:
(i) shall designate one or more members of the staff of the Office of the Public Advocate to
take positions and testify for the interests of residential or small commercial consumers in:
(A) any conference in which the Office of the Public Advocate participates pursuant to
Section 54-7-11.5 , if the conference is on a matter in which residential or small commercial
consumers have a substantial interest; and
(B) each adjudicatory proceeding in which residential or small commercial consumers have
a substantial interest; and
(ii) shall provide adequate resources described in Subsections 54-10a-3 (2)(a) and (b) and
Section 54-10a-4 to members of the staff of the Office of the Public Advocate to perform their duties
under this Subsection (2).
Section 33. Section 54-10a-7 is enacted to read:
54-10a-7. Notice by commission.
The commission shall automatically provide notice to the Office of the Public Advocate of all
requests for agency action or notices of agency action.
Section 34. Section 54-10a-8 is enacted to read:
54-10a-8. Establishment of advisory board.
(1) There is established an advisory board for the Office of the Public Advocate.
(2) (a) The advisory board shall consist of eight members, six of which shall be appointed by
the governor to represent the following interests, as follows:
(i) large industrial users of public utility services;
(ii) small industrial or commercial users of public utility services;
(iii) agricultural users of public utility services;
(iv) residential public utility consumers;
(v) low-income residents; and
(vi) retired persons.
(b) The remaining members of the board shall be:
(i) the executive director of the Department of Commerce; and
(ii) the director of the Office of the Public Advocate.
(c) All members of the advisory board shall maintain their principal abode within Utah.
(d) In serving as a member of the advisory board, the director of the Office of the Public
Advocate:
(i) may not vote; and
(ii) shall report on the activities of the Office of the Public Advocate.
(e) The advisory board shall annually select a member to serve as chair.
(3) (a) Except as required by Subsection (3)(b), as terms of current advisory board members
expire, the governor shall appoint each new member or reappointed member to a four-year term.
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time
of appointment or reappointment, adjust the length of terms to ensure that the terms of advisory
board members are staggered so that approximately half of the advisory board is appointed every two
years.
(c) When a vacancy occurs in the membership for any reason, the replacement shall be
appointed for the unexpired term.
(4) No more than four members of the advisory board shall be from the same political party.
(5) (a) Members of the advisory board shall receive no compensation or benefits for their
services, but may receive per diem and expenses incurred in the performance of the member's official
duties at the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
(b) Members may decline to receive per diem and expenses for their service.
(6) The advisory board may:
(a) set agendas and hold monthly meetings, and may hold other meetings, at the times and
places as the chair or a majority of the advisory board may determine; and
(b) advise the office in the performance of the office's duties, powers, and responsibilities.
Section 35. Section 67-1-13 is amended to read:
67-1-13. Rural Telecommunications Task Force -- Creation -- Membership -- Quorum
-- Compensation -- Staff -- Duties -- Reports and recommendations.
(1) There is created within the governor's office the Rural Telecommunications Task Force
consisting of the following 11 members:
(a) one representative from state government appointed by the governor who shall serve as
chair;
(b) one member of the Senate appointed by the president of the Senate;
(c) one member of the House of Representatives appointed by the speaker of the House of
Representatives;
(d) the chair of the Public Service Commission or the chair's designee;
[
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representing cities and one representing counties, appointed by the governor; and
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appointed by the governor.
(2) A majority of the members of the task force constitute a quorum. The action of a
majority of a quorum constitutes the action of the task force.
(3) (a) Salaries and expenses of the members of the task force who are legislators shall be
paid in accordance with Section 36-2-2 and Legislative Joint Rule 15.03.
(b) Members of the task force who are not legislators may not receive compensation for their
work associated with the task force, but may receive per diem and expenses incurred as a member
of the task force at the rates established by the Division of Finance under Sections 63A-3-106 and
63A-3-107 .
(4) The governor's office shall provide staff support to the task force.
(5) The task force shall review and make recommendations on the following issues:
(a) identify appropriate eligibility criteria for Universal Service Fund Support for capital
investment in broadband data services in rural areas of the state so that:
(i) such support is limited to areas lacking those services;
(ii) an appropriate fund balance is maintained;
(iii) such support begins January 1, 2000; and
(iv) increases in surcharges to support the fund are minimal;
(b) identify areas of the state where state government should assume liability for the costs of
relocating facilities in the case of right-of-way realignments in order to encourage deployment of
digital infrastructure to those areas; and
(c) other possible solutions to aid in the deployment of advanced telecommunications services
in rural areas of the state.
(6) The task force shall provide:
(a) recommendations on rule changes to the Public Service Commission by October 1, 1999;
and
(b) a report, including any proposed legislation, to the Public Utilities and Technology Interim
Committee before November 30, 1999.
Section 36. Repealer.
This act repeals:
Section 54-4-1.5, Investigations, providing information, audits and recommendations
by director.
Section 54-4a-1, Establishment of division -- Functions.
Section 54-4a-2, Director of division -- Appointment -- Authority and responsibility.
Section 54-4a-3, Budget of division -- Employment of personnel.
Section 54-4a-4, Legal counsel.
Section 54-4a-5, Interests, relationships and actions by employees prohibited.
Section 54-4a-6, Objectives.
Section 54-5-1.5, Special regulation fee -- Supplemental Levy Committee --
Supplemental fee.
Section 54-5-2, How gross operating revenue is determined.
Section 54-5-3, Default in payment of fee -- Procedure to collect -- Penalties.
Section 54-5-4, Penalties.
Section 54-8b-12, Trust fund established -- Requirements -- Expiration -- Transfer of
balance.
Section 54-10-1, Definitions.
Section 54-10-2, Committee of Consumer Services created -- Members -- Terms --
Qualifications -- Appointment -- Organization.
Section 54-10-3, Per diem and expenses of members -- Meetings.
Section 54-10-4, Duties and responsibilities of committee.
Section 54-10-4.5, Representation of electric power utility by committee prohibited.
Section 54-10-5, Residential and small commercial representative -- Duties.
Section 54-10-6, Review of public utility accounting procedures and expenditures.
Section 54-10-7, Attorney from attorney general's office to represent committee.
Section 37. Effective date.
This act takes effect on July 1, 2001.
Section 38. Transition clause.
(1) Effective July 1, 2001, the Office of the Public Advocate shall assume all rights, duties,
and powers of the former Division of Public Utilities and the Committee of Consumer Services with
respect to actions filed prior to July 1, 2001.
(2) In order to avoid a conflict with its duties under Section 54-1-1 , in proceedings
commenced prior to July 2001, the Office of the Public Advocate shall retain the services of any
person or entity to represent the public interests in those actions until completed.
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