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First Substitute S.B. 108

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
TELECOMMUNICATIONS REVISIONS

             2     
2005 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Curtis S. Bramble

             5     
             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
             18      services;
             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;


             26          .    allows the Public Service Commission to review basic residential service by an
             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:
             40          None
             41      Other Special Clauses:
             42          None
             43      Utah Code Sections Affected:
             44      AMENDS:
             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
             51      REPEALS:
             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
             54     
             55      Be it enacted by the Legislature of the state of Utah:
             56          Section 1. Section 54-3-7 is amended to read:


             57           54-3-7. Charges not to vary from schedules -- Refunds and rebates forbidden --
             58      Exceptions.
             59          Except as provided in this chapter [otherwise provided] or Chapter 8b, Public
             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) [No] Except as provided in Chapter 8b, Public Telecommunications Law, a public
             73      utility [shall,] may not:
             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[.
             76      No public utility shall]; and
             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


             88      service 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; and
             108          (l) other services as may be determined by the commission.
             109          [(2)] (3) "Certificate" means a certificate of public convenience and necessity issued by
             110      the commission authorizing a telecommunications corporation to provide specified public
             111      telecommunications services within a defined geographic service territory in the state.
             112          [(3)] (4) "Division" means the Division of Public Utilities established in Section
             113      54-4a-1 .
             114          [(4)] (5) "Essential facility or service" means any portion, component, or function of
             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


             119      quality, quantity, and price.
             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.
             123          [(5)] (7) "Federal Telecommunications Act" means the Federal Telecommunications
             124      Act of 1996, Pub. L. No. 104-104, 110 Stat. 56.
             125          [(6)] (8) "Incumbent telephone corporation" means a telephone corporation, its
             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.
             128          [(7)] (9) "Intrastate telecommunications service" means any public telecommunications
             129      service in which the information transmitted originates and terminates within the boundaries of
             130      this state.
             131          [(8)] (10) "Local exchange service" means the provision of telephone lines to
             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.
             135          [(9)] (11) "Mobile telecommunications service" means a mobile telecommunications
             136      service:
             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.
             140          [(10)] (12) (a) "New public telecommunications service" means a service offered by a
             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


             150          (C) an essential facility or an essential service .
             151          [(11)] (13) "Operator assisted services" means services which assist callers in the
             152      placement or charging of a telephone call, either through live intervention or automated
             153      intervention.
             154          [(12)] (14) "Operator service provider" means any person or entity that provides, for a
             155      fee to a caller, operator assisted services.
             156          [(13)] (15) "Price-regulated service" means any public telecommunications service
             157      governed by Section 54-8b-2.3 .
             158          [(14)] (16) "Public telecommunications service" means the two-way transmission of
             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.
             161          [(15) "Same or substitutable" with reference to a public telecommunications service
             162      means that the service is comparable to another service in terms of function, price, and quality
             163      to an end user customer.]
             164          [(16)] (17) "Substantial compliance" with reference to a rule or order of the
             165      commission means satisfaction of all material obligations in a manner consistent with the rule
             166      or order.
             167          [(17)] (18) "Telecommunications corporation" means any corporation or person, and
             168      their lessees, trustees, receivers, or trustees appointed by any court, owning, controlling,
             169      operating, managing, or reselling a public telecommunications service.
             170          [(18)] (19) (a) "Total service long-run incremental cost" means the forward-looking
             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


             181      may price any public telecommunications services it is authorized to offer, or any new public
             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 [Subsections (2)(b) and
             191      (c).] Subsection (1):
             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).
             197          [(b) (i) An incumbent telephone corporation may petition the commission for pricing
             198      flexibility in:]
             199          [(A) any proceeding in which another telecommunications corporation has petitioned
             200      the commission for a certificate to provide specified public telecommunications services in a
             201      defined geographic area that is within the incumbent telephone corporation's service territory;
             202      or]
             203          [(B) an independent proceeding after the other telecommunications corporation has
             204      been certificated to provide specified public telecommunications services in a defined
             205      geographic area that is within the incumbent telephone corporation's service territory.]
             206          [(ii) In the proceeding, the commission shall, by order, grant pricing flexibility to the
             207      incumbent telephone corporation for the same or substitutable public telecommunications
             208      services in the same defined geographic area.]
             209          [(iii) Pricing flexibility for any public telecommunications service shall become
             210      effective in accordance with the procedure in Subsection (2)(b)(iv) when the following
             211      conditions are met:]


             212          [(A) the commission has issued a certificate to the competing telecommunications
             213      corporation;]
             214          [(B) the competing telecommunications corporation has begun providing the
             215      authorized public telecommunications service in the defined geographic area;]
             216          [(C) the incumbent telephone corporation, by written agreement, stipulation, or
             217      pursuant to an order of the commission, has allowed the competing telecommunications
             218      corporation to interconnect with the essential facilities and to purchase essential services of the
             219      incumbent telephone corporation; and]
             220          [(D) the incumbent telephone corporation is in substantial compliance with the rules
             221      and orders of the commission adopted or issued under Section 54-8b-2.2 .]
             222          [(iv) (A) The commission shall enter its final order either granting or denying a petition
             223      for pricing flexibility under Subsection (2)(b) within 90 days of the date the incumbent
             224      telephone corporation files its petition seeking pricing flexibility.]
             225          [(B) If the commission has not entered an order within 90 days of the date the petition
             226      is filed, the petition shall be considered granted.]
             227          [(C) Pricing flexibility shall be effective 45 days following the granting of a petition
             228      for pricing flexibility under Subsection (2)(b) unless the commission orders an earlier effective
             229      date.]
             230          [(c) An incumbent telephone corporation may price any new public
             231      telecommunications service by means of a price list or competitive contract.]
             232          [(3) The commission may review any new public telecommunications service offered
             233      by an incumbent telephone corporation after the applicable tariff, price list, or competitive
             234      contract has taken effect.]
             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


             243      of July 1, 2004.
             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.
             262          [(4)] (3) Each price list shall:
             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.
             271          [(5)] (4) Prices, terms, and conditions offered under price lists or competitive contracts
             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).


             274          [(6)] (5) A price list filed with the commission under this section shall take effect five
             275      days after it is filed with the commission.
             276          [(7)] (6) (a) [The] Except as provided in Subsection (6)(b), the prices, terms, and
             277      conditions of a public telecommunications service offered by a telecommunications
             278      corporation pursuant to a competitive contract with a retail customer [shall] need not be filed
             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
             283      contract.
             284          [(8)] (7) (a) [The] Subject to Subsection (7)(b), the commission may, as determined
             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.
             291          [(9)] (8) (a) The commission may revoke the authority of a telecommunications
             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 [change]
             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 [occur] be imposed shall bear the
             304      burden of proof.


             305          [(10)] (9) The commission shall establish rules or procedures to protect confidential,
             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
             314      corporation.
             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[.]; or
             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) [Notwithstanding] Except with respect to a price regulated service offered in a
             326      promotional offer, or market trial, or to meet competition and notwithstanding any other
             327      provision of this chapter:
             328          (a) [no] a telecommunications corporation with more than 30,000 access lines in the
             329      state [and which] that provides a [tariffed] public telecommunications service [or a
             330      price-regulated service shall] may not:
             331          (i) as to the pricing and provisioning of the [tariffed] public telecommunications
             332      service [or price-regulated service], make or grant any undue or unreasonable preference or
             333      advantage to any person, corporation, or locality; or
             334          (ii) in providing services [which] that utilize the local exchange network:
             335          (A) make or give any undue or unreasonable preference or advantage to any person,


             336      corporation, or locality; or
             337          (B) subject any person, corporation, or locality to any undue or unreasonable prejudice
             338      or disadvantage;
             339          (b) [tariffed] public telecommunications services [and price-regulated services]
             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;
             342      and
             343          (c) [tariffed] public telecommunications services [and price-regulated services] may be
             344      packaged with other services, so long as they are also offered on a separate, unbundled basis.
             345          [(3) An incumbent telephone corporation may not price any public telecommunications
             346      service at a level which is less than the sum of:]
             347          [(a) the total service long-run incremental cost of nonessential facilities used to provide
             348      the public telecommunications service in a particular geographic area; and]
             349          [(b) the price of essential facilities used to provide the public telecommunications
             350      service in a particular defined geographic area.]
             351          [(4) Subsection (3) does not require that the price of residential telephone service
             352      which is priced below its total service long-run incremental cost on May 1, 1995, be increased.
             353      However, the price of any service that is below its total service long-run incremental cost may
             354      be increased annually as provided in Section 54-8b-2.4 .]
             355          [(5) The commission shall examine the total service long-run incremental cost studies
             356      of an incumbent telephone corporation's public telecommunications services as needed to
             357      insure compliance with this section.]
             358          [(6)] (3) (a) In order to promote continued investment in the public
             359      telecommunications network [by incumbent telephone corporations] and to improve the quality
             360      of service for end users [in areas where competition has not developed, by September 30,
             361      2000], the commission [shall] may adopt rules governing service quality standards to end users
             362      for all [tariffed] public telecommunications services.
             363          (b) The commission shall have the authority to enforce the rules adopted under this
             364      Subsection [(6)] (3) by granting billing credits to the affected end user where the
             365      noncompliance is for reasons within the [incumbent telephone] telecommunications
             366      corporation's control.


             367          [(c) The commission shall report annually to the Legislature concerning investment by
             368      incumbent telephone corporations in the public telecommunications network in their service
             369      areas and the quality of service to end users of tariffed public telecommunications services.]
             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
             376      corporation.
             377          (d) An incumbent telephone corporation with less than 30,000 access lines in the state
             378      is exempt from this Subsection [(6)] (3).
             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 [Subsection] Section 54-8b-3.3 [(3)].
             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


             398      the service.
             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 [Subsection] Section 54-8b-3.3 [(3)];
             410          (ii) provides for adequate service at just and reasonable rates.
             411          (d) After a contract under this section has become effective, [if the incumbent
             412      telephone corporation is not subject to maximum price regulation for tariffed public
             413      telecommunications services under Section 54-8b-2.4 ,] the commission shall in the next
             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
             418      services.
             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:


             429          Section 54-8b-2.4, Price regulation -- Price index -- Maximum prices.
             430          Section 54-8b-2.5, Report to governor and Legislature.


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