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First Substitute S.B. 108
This document includes Senate Committee Amendments incorporated into the bill on Mon, Jan 24, 2005 at 10:35 AM by rday. -->
6 LONG TITLE
7 General Description:
8 This bill amends and repeals portions of Title 54, Public Utilities, relevant to pricing
9 and competition by telecommunications corporations.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . exempts certain activities of telecommunications corporations from compliance
14 with rate schedules;
15 . exempts certain activities of telecommunications corporations from prohibitions on
16 rate or service preferences;
17 . expands pricing flexibility for certain telecommunications corporations and
19 . addresses the methods of filing price lists;
20 . eliminates the requirement that a telecommunications corporation petition the
21 Public Service Commission for pricing flexibility;
22 . requires an incumbent telephone corporation to provide basic residential service
23 throughout its service area;
24 . requires an incumbent telephone corporation to maintain basic residential service
25 rates at July 1, 2004 levels, except under certain circumstances;
27 incumbent and others;
28 . allows the Public Service Commission to exempt an incumbent telephone
29 corporation from basic residential service provisions if comparable services exist at
30 comparable prices;
31 . provides for certain disclosures of competitive contracts;
32 . allows small incumbent telephone corporations to petition the Public Service
33 Commission for regulation by price, rather than traditional rate of return regulation;
34 . allows the Public Service Commission to exempt small incumbent telephone
35 corporations from certain pricing provisions under certain circumstances;
36 . allows the Public Service Commission to adjust rates for telephone corporations not
37 subject to price regulation; and
38 . makes technical changes.
39 Monies Appropriated in this Bill:
41 Other Special Clauses:
43 Utah Code Sections Affected:
45 54-3-7, Utah Code Annotated 1953
46 54-3-8, as last amended by Chapter 265, Laws of Utah 1998
47 54-8b-2, as last amended by Chapter 320, Laws of Utah 2002
48 54-8b-2.3, as last amended by Chapter 291, Laws of Utah 2000
49 54-8b-3.3, as last amended by Chapter 291, Laws of Utah 2000
50 54-8b-4.5, as enacted by Chapter 88, Laws of Utah 1997
52 54-8b-2.4, as last amended by Chapter 291, Laws of Utah 2000
53 54-8b-2.5, as last amended by Chapter 279, Laws of Utah 2004
55 Be it enacted by the Legislature of the state of Utah:
56 Section 1. Section 54-3-7 is amended to read:
59 Except as provided in this chapter [
60 Telecommunications Law, no public utility shall charge, demand, collect or receive a greater or
61 less or different compensation for any product or commodity furnished or to be furnished, or
62 for any service rendered or to be rendered, than the rates, tolls, rentals and charges applicable to
63 such products or commodity or service as specified in its schedules on file and in effect at the
64 time; nor shall any such public utility refund or remit, directly or indirectly, in any manner or
65 by any device, any portion of the rates, tolls, rentals and charges so specified; nor extend to any
66 person any form of contract or agreement, or any rule or regulation, or any facility or privilege
67 except such as are regularly and uniformly extended to all corporations and persons; provided,
68 that the commission may, by rule or order, establish such exceptions from the operation of this
69 prohibition as it may consider just and reasonable as to any public utility.
70 Section 2. Section 54-3-8 is amended to read:
71 54-3-8. Preferences forbidden -- Power of commission to determine facts.
72 (1) [
73 utility [
74 (a) as to rates, charges, service, facilities or in any other respect, make or grant any
75 preference or advantage to any person, or subject any person to any prejudice or disadvantage[
77 (b) establish or maintain any unreasonable difference as to rates, charges, service or
78 facilities, or in any other respect, either as between localities or as between classes of service.
79 (2) The commission shall have power to determine any question of fact arising under
80 this section.
81 Section 3. Section 54-8b-2 is amended to read:
82 54-8b-2. Definitions.
83 As used in this chapter:
84 (1) (a) "Aggregator" means any person or entity that:
85 (i) is not a telecommunications corporation;
86 (ii) in the ordinary course of its business makes operator assisted services available to
87 the public or to customers and transient users of its business or property through an operator
Senate Committee Amendments 1-24-2005 rd/crpservice provider; and
89 (iii) receives from an operator service provider by contract, tariff, or otherwise,
90 commissions or compensation for calls delivered from the aggregator's location to the operator
91 service provider.
92 (b) "Aggregator" may include any hotel, motel, hospital, educational institution,
93 government agency, or coin or coinless telephone service provider so long as that entity
94 qualifies under Subsection (1)(a).
95 (2) "Basic residential service" means a local exchange service for a residential
96 customer consisting of:
97 (a) a single line with access to the public switched network;
98 (b) touch-tone or the functional equivalent;
99 (c) local flat-rate unlimited usage, exclusive of extended area service;
100 (d) single-party service;
101 (e) a free phone number listing in directories received for free;
102 (f) access to operator services;
103 (g) access to directory assistance;
104 (h) access to lifeline and telephone relay assistance;
105 (i) access to 911 and E911 emergency services;
106 (j) access to long-distance carriers;
107 (k) access to toll limitations services; S [
108 (l) other services as may be determined by the commission S [
108a (m) NO FEATURE. s
110 the commission authorizing a telecommunications corporation to provide specified public
111 telecommunications services within a defined geographic service territory in the state.
113 54-4a-1 .
115 the network or service offered by a provider of local exchange services:
116 (a) that is necessary for a competitor to provide a public telecommunications service;
117 (b) that cannot be reasonably duplicated; and
118 (c) for which there is no adequate economic alternative to the competitor in terms of
120 (6) (a) "Feature" means a custom calling service available from the central office
121 switch, including call waiting, call forwarding, three-way calling, and similar services.
122 (b) "Feature" does not include long distance calling.
124 Act of 1996, Pub. L. No. 104-104, 110 Stat. 56.
126 successors or assigns, which, as of May 1, 1995, held a certificate to provide local exchange
127 services in a defined geographic service territory in the state.
129 service in which the information transmitted originates and terminates within the boundaries of
130 this state.
132 customers with the associated transmission of two-way interactive, switched voice
133 communication within the geographic area encompassing one or more local communities as
134 described in maps, tariffs, or rate schedules filed with and approved by the commission.
137 (a) that is defined as a mobile telecommunications service in the Mobile
138 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124; and
139 (b) in which the information transmitted originates and terminates in one state.
141 telecommunications corporation which that corporation has never offered before.
142 (b) "New public telecommunications service" does not include:
143 (i) a tariff, price list, or competitive contract that involves a new method of pricing any
144 existing public telecommunications service;
145 (ii) a package of public telecommunications services that includes an existing public
146 telecommunications service; or
147 (iii) a public telecommunications service that is a direct replacement for:
148 (A) a fully regulated service;
149 (B) an existing service offered pursuant to a tariff, price list, or competitive contract; or
152 placement or charging of a telephone call, either through live intervention or automated
155 fee to a caller, operator assisted services.
157 governed by Section 54-8b-2.3 .
159 signs, signals, writing, images, sounds, messages, data, or other information of any nature by
160 wire, radio, lightwaves, or other electromagnetic means offered to the public generally.
165 commission means satisfaction of all material obligations in a manner consistent with the rule
166 or order.
168 their lessees, trustees, receivers, or trustees appointed by any court, owning, controlling,
169 operating, managing, or reselling a public telecommunications service.
171 incremental cost to a telecommunications corporation caused by providing the entire quantity
172 of a public telecommunications service, network function, or group of public
173 telecommunications services or network functions, by using forward-looking technology,
174 reasonably available, without assuming relocation of existing plant and equipment.
175 (b) The "long-run" means a period of time long enough so that cost estimates are based
176 on the assumption that all inputs are variable.
177 Section 4. Section 54-8b-2.3 is amended to read:
178 54-8b-2.3. Pricing flexibility.
179 (1) (a) A telecommunications corporation that obtains a certificate to compete with the
180 incumbent telephone corporation in a defined geographic area pursuant to Section 54-8b-2.1
182 telecommunications service, by means of a price list or competitive contract.
183 (b) Before the telecommunications corporation begins providing any authorized public
184 telecommunications service, it shall notify the commission of:
185 (i) its intent to begin providing the service; and
186 (ii) the defined geographic area in which it will provide the service.
187 (2) (a) Notwithstanding other requirements of this chapter relating to pricing flexibility,
188 beginning on May 2, 2005, an incumbent telephone corporation may offer retail end user public
189 telecommunications services by means of a price list or competitive contract in the same
190 manner as a competing telecommunications corporation as provided in [
192 (i) if the incumbent telephone corporation:
193 (A) is in substantial compliance with rules and orders of the commission issued under
194 Section 54-8b-2.2 ; and
195 (B) has more than 30,000 access lines; and
196 (ii) except as provided in Subsection (2)(b).
235 (b) (i) The incumbent telephone corporation's pricing flexibility shall be the same as a
236 competing telecommunications corporation's pricing flexibility for all public
237 telecommunications services except basic residential service.
238 (ii) The incumbent telephone corporation shall offer basic residential service
239 throughout the area in which the incumbent telephone corporation is authorized by certificate
240 to provide basic residential service.
241 (iii) Except as provided in Subsections (2)(b)(iv) and (v), and (2)(c), the incumbent
242 telephone corporation may not increase the price of basic residential service above the price as
244 (iv) The incumbent telephone corporation may make revenue neutral adjustments to
245 the price of basic residential service to reduce or eliminate differences in the price of basic
246 residential service in different portions of its service area.
247 (v) The incumbent telephone corporation may increase the price of basic residential
248 service based:
249 (A) on changes in local calling areas approved by the commission;
250 (B) changes in access charges approved by the commission; or
251 (C) other changes affecting basic residential service approved by the commission.
252 (c) (i) Upon request by the incumbent telephone corporation, but in any event no later
253 than May 2, 2007, the commission shall review whether any person is offering a service that
254 includes the essential components of basic residential service at a price comparable to the
255 incumbent telephone corporation's price for basic residential service in the area served by a
256 central office of the incumbent telephone corporation.
257 (ii) If, under Subsection (2)(c)(i), the commission determines that any person is
258 offering a service that includes the essential components of basic residential service at a price
259 comparable to the incumbent telephone corporation's price for basic residential service in the
260 area served by a central office of the incumbent telephone corporation, Subsection (2)(b) does
261 not apply in the area served by that central office.
263 (a) be filed with the commission[
264 (i) electronically; or
265 (ii) by paper copies only if permitted by commission rule;
266 (b) describe the public telecommunications service;
267 (c) set forth the basic terms and conditions upon which the public telecommunications
268 service is offered; and
269 (d) list the prices to be charged for the public telecommunications service or the basis
270 on which the services will be priced.
272 that are different from tariff prices, terms, and conditions for the same services are not
273 considered discriminatory under Section 54-3-8 and Subsection 54-8b-3.3 (2).
275 days after it is filed with the commission.
277 conditions of a public telecommunications service offered by a telecommunications
278 corporation pursuant to a competitive contract with a retail customer [
279 with the commission.
280 (b) Notwithstanding Subsection (6)(a), a copy of a competitive contract shall be
281 provided to the commission or division of public utilities if the commission or division of
282 public utilities, pursuant to general investigatory powers, requests a copy of the competitive
285 necessary to protect the public interest, set an upper limit on the price that may be charged by
286 telecommunications corporations for public telecommunications services that may be priced by
287 means of a price list or competitive contract in a defined geographic area.
288 (b) The upper limit on price imposed under Subsection (7)(a) shall be applied to all
289 telecommunications corporations holding a certificate to provide the public
290 telecommunications services in the defined geographic area in a competitively neutral manner.
292 corporation to offer a public telecommunications service pursuant to a price list or competitive
293 contract or the commission may adopt conditions or restrictions on the telecommunications
294 corporation's pricing flexibility if the commission finds:
295 (i) (A) the telecommunications corporation has materially violated statutes or rules
296 applicable to the specific service;
297 (B) there has been or there is an imminent threat of a material and substantial [
298 diminution in the level of competition; or
299 (C) competition has not developed; and
300 (ii) revocation or conditions or restrictions on the telecommunications corporation's
301 pricing flexibility is in the public interest.
302 (b) The party asserting that revocation or conditions or restrictions on the
303 telecommunications corporation's pricing flexibility should [
304 burden of proof.
306 proprietary, and competitively sensitive information provided to the commission or the division
307 pursuant to this section.
308 (10) (a) An incumbent telephone corporation serving fewer than 30,000 access lines in
309 the state may petition the commission to be regulated under price regulation rather than
310 traditional rate of return regulation.
311 (b) In implementing price regulation for an incumbent telephone corporation serving
312 fewer than 30,000 access lines, the commission may modify the requirements of any provision
313 of this section if necessary to the individual circumstances of the incumbent telephone
315 Section 5. Section 54-8b-3.3 is amended to read:
316 54-8b-3.3. Services that must be offered on a nondiscriminatory basis -- Public
317 telecommunications to be cost-based -- Packaged services -- Quality of service standards.
318 (1) (a) As used in this section, "cost-based" means that the prices for the
319 telecommunications services shall be established after taking into consideration the total
320 service long-run incremental cost of providing the service.
321 (b) The term "cost-based" does not prevent the establishment of prices:
322 (i) that promote the universal availability of service in the state[
323 (ii) that are offered by a telecommunications corporation for a public
324 telecommunications service in a promotional offer, or market trial, or to meet competition.
325 (2) [
326 promotional offer, or market trial, or to meet competition and notwithstanding any other
327 provision of this chapter:
328 (a) [
329 state [
331 (i) as to the pricing and provisioning of the [
332 service [
333 advantage to any person, corporation, or locality; or
334 (ii) in providing services [
335 (A) make or give any undue or unreasonable preference or advantage to any person,
337 (B) subject any person, corporation, or locality to any undue or unreasonable prejudice
338 or disadvantage;
339 (b) [
340 provided by a telecommunications corporation with more than 30,000 access lines in the state
341 shall be nondiscriminatory, cost-based, and subject to resale as determined by the commission;
343 (c) [
344 packaged with other services, so long as they are also offered on a separate, unbundled basis.
359 telecommunications network [
360 of service for end users [
362 for all [
363 (b) The commission shall have the authority to enforce the rules adopted under this
364 Subsection [
365 noncompliance is for reasons within the [
366 corporation's control.
370 (c) Rules adopted under this Subsection (3) on or after January 1, 2005, shall impose
371 no greater requirements or obligations on any telecommunications corporation:
372 (i) than were applicable to that telecommunications corporation under rules adopted
373 before January 1, 2005; or
374 (ii) than were imposed on telecommunications corporations that were not incumbent
375 telephone corporations, if the telecommunications corporation is not an incumbent telephone
377 (d) An incumbent telephone corporation with less than 30,000 access lines in the state
378 is exempt from this Subsection [
379 Section 6. Section 54-8b-4.5 is amended to read:
380 54-8b-4.5. Commission order -- Negotiated provisions of services -- Contracts
381 under this section.
382 (1) (a) The commission may enter an order partially or wholly exempting any public
383 telecommunications service from any requirement of this title relating to rates, tariffs, or fares.
384 (b) The commission may authorize the provision of all or any portion of a public
385 telecommunications service under stated or negotiated terms to any person that is committed to
386 the acquisition of comparable telecommunications services from an alternative source of
387 supply through construction, lease, or any other form of acquisition.
388 (2) An incumbent telephone corporation may negotiate with the person or entity within
389 the incumbent telephone corporation's service territory for the provision of retail end user
390 public telecommunications services without regard to the provisions of any tariffs on file and
391 approved by the commission, or any price list or competitive contract filed under Section
392 54-8b-2.3 with the commission but any rate, toll, fare, rental, charge, or classification of service
393 in such contracts shall comply with [
394 (3) (a) Within ten days after the conclusion of the negotiations and prior to the
395 execution of a contract under this section, the incumbent telephone corporation shall file with
396 the commission the proposed final agreements and other evidence of the public
397 telecommunications services to be provided, together with the charges and other conditions of
399 (b) (i) The commission may approve or deny an application, or begin adjudicative
400 proceedings to consider approval of a contract under this section within 30 days of the filing of
401 the application by the incumbent telephone corporation.
402 (ii) If the commission begins adjudicative proceedings, the contract is effective when
403 the commission orders that it is effective.
404 (iii) If the commission fails to approve a contract under this section, or fails to begin
405 adjudicative proceedings within 30 days, the final contract is effective.
406 (c) In determining whether or not to approve a contract under this section, the
407 commission shall consider all relevant factors, including, whether or not the contract for any
408 rate, toll, fare, rental, charge, or classification of service:
409 (i) complies with [
410 (ii) provides for adequate service at just and reasonable rates.
411 (d) After a contract under this section has become effective, [
414 general rate case for that incumbent telephone corporation:
415 (i) review the contract for consistency with the factors stated in this Subsection (3); and
416 (ii) make any adjustment in its rate order, including retroactive adjustments, that are
417 necessary to avoid cross subsidization from other regulated intrastate telecommunications
419 (e) Subsection (3) does not apply to an incumbent telephone corporation subject to
420 price regulation for public telecommunications services under Section 54-8b-2.3 .
421 (4) Any incumbent telephone corporation that provides public telecommunications
422 services pursuant to a contract under this section may not offer the services under contract in a
423 manner that unfairly discriminates between similarly situated customers.
424 (5) Subject to Subsection (4), terms and conditions offered in contracts under this
425 section that are different from tariff terms and conditions for the same services are not
426 considered discriminatory under Section 54-3-8 and Subsection 54-8b-3.3 (2).
427 Section 7. Repealer.
428 This bill repeals:
430 Section 54-8b-2.5, Report to governor and Legislature.
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