PRIOR PRINTER'S NO. 14 PRINTER'S NO. 1907
No. 4 Session of 1993
INTRODUCED BY D. R. WRIGHT, VEON, ITKIN, M. COHEN, DeWEESE,
BELARDI, STEIGHNER, COY, DURHAM AND ROBINSON,
JANUARY 27, 1993
AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 25, 1993
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for an alternative form of
3 regulation of telecommunications services.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 66 of the Pennsylvania Consolidated
7 Statutes is amended by adding a chapter to read:
8 CHAPTER 30
9 ALTERNATIVE FORM OF REGULATION
10 OF TELECOMMUNICATIONS SERVICES
11 Sec. <--
12 3001. Declaration of policy.
13 3002. Definitions.
14 3003. Local exchange telecommunications company request for
15 alternative form of regulation.
16 3004. Commission review.
17 3005. Powers and duties.
1 3006. Infrastructure plans.
2 3007. Interexchange telecommunications carriers.
3 3008. Report to Governor and General Assembly.
4 3009. Regulations.
5 § 3001. Declaration of policy.
6 The General Assembly finds and declares that it is the policy
7 of this Commonwealth to:
8 (1) Maintain universal telecommunications services at
9 affordable rates.
10 (2) Ensure that customers pay only reasonable charges
11 for local exchange telecommunications services which shall be
12 available on a nondiscriminatory basis.
13 (3) Ensure that rates for noncompetitive
14 telecommunications services do not subsidize the competitive
15 ventures of providers of telecommunications services.
16 (4) Provide diversity in the supply of
17 telecommunications services and products in
18 telecommunications markets throughout this Commonwealth.
19 (5) Ensure the efficient delivery of technological
20 advances and new services throughout this Commonwealth.
21 (6) Encourage the deployment and availability of a
22 state-of-the-art telecommunications network in rural,
23 suburban and urban areas, including schools, businesses and
24 health care facilities.
25 § 3002. Definitions.
26 The following words and phrases when used in this chapter
27 shall have the meanings given to them in this section unless the
28 context clearly indicates otherwise:
29 "Alternative form of regulation." A form of regulation of
30 telecommunications services other than the traditional rate
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1 base, rate-of-return regulation, to be determined by the
2 commission. The term includes the use of any index, formula,
3 rate stability or rate freeze plan, zone of rate freedom or
4 streamlined ratemaking plan.
5 "Basic service elements." Those telecommunications services
6 provided by the local exchange telecommunications company which
7 are necessary for any competing service provider to offer
8 services to consumers.
9 "Competitive service." A service or business activity
10 determined to be competitive under this chapter or any
11 telecommunications service determined by the commission to be
12 competitive under this chapter.
13 "Interexchange telecommunications carrier." A carrier other
14 than a local exchange telecommunications company authorized by
15 the commission to provide long-distance telecommunications
16 services. The term does not include any carrier defined by the
17 Pennsylvania Public Utility Commission or the Federal
18 Communications Commission as a reseller or alternate operator
19 service provider.
20 "LATA." A Local Access Transport Area as defined by the
21 commission in conformance with applicable Federal law.
22 "Local exchange telecommunications company." A carrier
23 authorized by the commission to provide local telecommunications
24 services.
25 "Noncompetitive service." Includes any protected telephone
26 service as defined under this chapter or a service that has been
27 defined by the commission as not a competitive service.
28 "Protected telephone service." A telecommunications service
29 provided by a local exchange telecommunications company, unless
30 the commission determines, after notice and hearing, that the
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1 service is competitive or should no longer be a protected
2 telephone service. The term includes, but is not limited to,
3 telecommunications service provided to business or residential
4 customers for the purpose of completing a local call, touch tone
5 or similar service, access service other than a service that the
6 commission has previously found to be competitive, toll service
7 provided by a local exchange telecommunications company and the
8 ordering, installation and restoration of these services.
9 "Switched access service." A service which provides for the
10 use of common terminating, switching and trunking facilities of
11 a local exchange telecommunications company's public switched
12 network. The term includes common line carrier access service.
13 "Telecommunications service." A telecommunications service
14 which is subject to regulation by the commission.
15 § 3003. Local exchange telecommunications company request for
16 alternative form of regulation.
17 When a local exchange telecommunications company seeks to be
18 regulated under an alternative form of regulation, it shall
19 submit to the commission a petition requesting the alternative
20 form of regulation. In the petition, the company shall submit
21 its plan and supporting data for an alternative form of
22 regulation. The company shall also file its petition, plan and
23 supporting data concurrently with the Office of Consumer
24 Advocate and the Office of Small Business Advocate. At the same
25 time, the company shall give notice to its ratepayers through a
26 billing insert or bill message, to its employees and to the
27 public of the filing of its petition for an alternative form of
28 regulation in accordance with the commission's rules and
29 regulations.
30 § 3004. Commission review.
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1 (a) Authorization.--In determining just and reasonable rates
2 in accordance with section 1301 (relating to rates to be just
3 and reasonable), the commission may authorize a local exchange
4 telecommunications company to set rates based on an alternative
5 form of regulation pursuant to a plan approved by the commission
6 under this chapter.
7 (b) Review and approval of plan.--The commission shall
8 review and may approve the plan or approve it with modifications
9 or deny it as not reasonably designed to meet the requirements
10 of this chapter, after notice and hearing, within one year of
11 the filing date of the petition. If the commission does not act
12 within one year of the filing date of the petition, it shall be
13 deemed to be denied. If the commission denies the petition or
14 approves it with modifications, the commission shall set forth
15 in its order each specific reason for the denial or
16 modification. The commission shall approve the plan only if it
17 finds, after notice and hearing, that the petition:
18 (1) Ensures the affordability of protected telephone
19 services.
20 (2) Assures that the rates for protected services are
21 just, reasonable and not unduly discriminatory, and do not
22 yield excessive compensation.
23 (3) Assures that the rates for noncompetitive services
24 are just, reasonable and not unduly discriminatory and do not
25 yield excessive compensation.
26 (4) Will produce just and reasonable rates for
27 telecommunications services in accordance with section 1301.
28 (5) Will not unduly or unreasonably prejudice or
29 disadvantage a customer class or providers of competitive
30 services.
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1 (6) Is in the public interest.
2 (7) Enhances economic development in this Commonwealth
3 while maintaining affordable rates.
4 (8) Contains a comprehensive program of service quality
5 standards in accordance with section 1501 (relating to
6 character of service and facilities), including procedures
7 for commission review.
8 (9) Ensures that local exchange telecommunications
9 company ratepayers continue to receive the benefit of
10 contributions historically obtained from services such as
11 yellow pages, billing and collection, unless the commission
12 shall otherwise determine for good cause.
13 (10) Specifically identifies the benefits to be derived
14 from the alternative form of regulation, including, but not
15 limited to, the reduction of regulatory delays and costs.
16 (11) For local exchange telecommunications companies
17 serving more than 250,000 access lines in this Commonwealth
18 as of the effective date of this chapter, complies with the
19 following:
20 (i) Includes an effective per minute switched access
21 service price, including both originating and terminating
22 and excluding nonrecurring, that for five years from the
23 implementation date of the plan does not exceed 12¢
24 unless justified based on the total cost of switched
25 access or that includes a revenue-neutral phasedown in
26 the price to not more than 12¢ in not more than three
27 equal annual increments, commencing with the
28 implementation of the plan but concluding within five
29 years from the implementation date. Upon the sixth year
30 from the implementation date of the plan, the commission
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1 shall review the per minute switched access service price
2 and after notice and hearing determine a just and
3 reasonable per minute switched access service price.
4 (ii) Local exchange telecommunications companies
5 with an effective per minute switched access service
6 price at or below 12¢, including both originating and
7 terminating and excluding nonrecurring, may not increase
8 switched access rates either in conjunction with the
9 years from the approval date of a petition, not to extend
10 beyond December 31, 1999, unless the company can show
11 that, absent an increase, total switched access revenues
12 would be below total switched access cost. Revenue-
13 neutral access tariff rate changes and restructures may
14 be proposed subject to commission approval.
15 (iii) Continues in effect any existing limits, by
16 tariff or otherwise, on the amount of revenue that a
17 local exchange telecommunications company may recover
18 from the common line carrier rate. At the conclusion of
19 any phasedown period as provided in subparagraph (i), the
20 annual revenues to be derived from common line carrier
21 rates shall be no more than the total common line carrier
22 revenues applicable to the final 12 months of any
23 phasedown period.
24 (12) Will permit the deployment of new voice, data and
25 video services to rural, suburban and urban areas throughout
26 the local exchange carrier's service territory to the extent
27 the deployment is deemed to be in the public interest and if
28 containing a depreciation schedule or formula, the schedule
29 or formula is based upon a just and reasonable standard.
30 (13) Assures that all customers of the local exchange
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1 telecommunications company shall be afforded the maximum
2 practicable extended area calling without application of
3 toll.
4 (14) Assures that low-income individuals are able to
5 connect to and maintain in-home access to protected telephone
6 service.
7 (c) Burden of proof.--The burden of proof shall be on the
8 local exchange telecommunications company requesting an
9 alternative form of regulation.
10 (d) Restriction.--A local exchange telecommunications
11 company may not use revenues earned or expenses incurred in
12 conjunction with noncompetitive services to subsidize or support
13 any competitive services. The commission shall establish
14 regulations which must be followed by local exchange
15 telecommunications companies for the purpose of allocating costs
16 for accounting and ratemaking among telephone services in order
17 to prevent subsidization or support for competitive services.
18 (e) Audit.--The commission shall have the power to require
19 an audit of the accounting and reporting systems of local
20 exchange telecommunications companies and their affiliates in
21 accordance with the commission's present or future rules and
22 regulations to provide a proper allocation of investments, costs
23 or expenses for all telecommunications services, competitive and
24 noncompetitive.
25 (f) Prohibition.--The commission shall not fix or prescribe
26 the rates, tolls, charges, rate structures, rate base or rate of
27 return of competitive services. The commission shall require
28 that the local exchange telecommunications company file and
29 maintain tariffs for competitive telecommunications services.
30 (g) Excessive rates.--The commission may rescind or modify
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1 any order permitting an alternative form of regulation if it
2 determines, after notice and hearing, that customer rates for
3 protected services are excessive in comparison to those rates
4 approved by the commission under rate base/rate-of-return
5 regulation or that a local telephone company is engaging in
6 practices which are harmful to fair competition or for other
7 good cause shown. Any interested party, including providers of
8 competitive services, may request the commission to take action
9 pursuant to this chapter.
10 § 3005. Powers and duties.
11 (a) Competitive service determination.--The commission is
12 authorized to determine, after notice and hearing, whether a
13 telecommunications service offered by a local exchange company
14 is a competitive service. In making the determination, the
15 commission shall consider all evidence submitted to it,
16 including evidence presented by providers of competitive
17 services.
18 (1) In determining whether a service is competitive, the
19 commission shall make findings which, at a minimum, shall
20 include evidence of ease of market entry; presence and
21 viability of other competitors; the ability of competitors to
22 offer those services at competitive prices, terms and
23 conditions; the availability of like or substitute services
24 in the relevant geographic area; the effect, if any, on
25 protected services; the overall impact of the proposed
26 regulatory change on the continued availability of existing
27 services; whether the consumers of the service would receive
28 an identifiable benefit from the provision of the service on
29 a competitive basis; the degree of regulation necessary to
30 prevent abuses or discrimination in the provision of the
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1 service and any other relevant factors which are in the
2 public interest. If a local exchange telecommunications
3 company introduces a telecommunications service that has not
4 previously been offered, the service will not be deemed
5 competitive unless it is so determined by the commission
6 under this chapter.
7 (2) The burden of proving that a telecommunications
8 service is competitive rests on the party seeking to have the
9 service classified as competitive.
10 (3) The commission shall establish regulations to
11 prevent local exchange telecommunications companies from
12 engaging in unfair competition and require that a local
13 exchange telecommunications company provide reasonable
14 nondiscriminatory access to competitors for all services and
15 facilities necessary to provide competing services to
16 consumers.
17 (b) Reports.--The commission shall determine by rule,
18 regulation or order what reports are necessary to monitor the
19 accounting for and competitiveness of a telecommunications
20 service.
21 (c) Reclassification.--The commission shall have the
22 authority to reclassify telecommunications service that it has
23 previously found to be competitive if, after notice and hearing,
24 it determines that sufficient competition is no longer present,
25 upon application of the criteria set forth in this chapter. If
26 the commission finds that a reclassification is necessary, the
27 commission must determine whether the rate for the
28 telecommunications service is just and reasonable in accordance
29 with section 1301 (relating to rates to be just and reasonable).
30 If the telecommunications service subsequently becomes
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1 competitive, the local exchange telecommunications company shall
2 petition the commission to make a determination of
3 competitiveness for the service under this chapter.
4 (d) Earnings.--Earnings from competitive services shall be
5 excluded from regulation by the commission subject to the
6 safeguards set forth in this chapter.
7 (e) Additional determinations.--The commission shall
8 determine whether local exchange telecommunications companies
9 are complying with the following provisions:
10 (1) The local exchange telecommunications company shall
11 unbundle each basic service element which is incorporated in
12 the competitive service and shall make all basic service
13 elements separately available to any customer under tariffed
14 terms and conditions, including price, that are identical to
15 those used by the local exchange telecommunications company
16 in providing its competitive service.
17 (2) The rate which a local exchange telecommunications
18 company charges itself for a basic service element necessary
19 to provide a competitive service shall not be less than the
20 rates charged to others for such basic service elements.
21 (3) The rate which a local exchange carrier charges for
22 a competitive service shall not be less than the rates
23 charged to others for the basic service elements used by the
24 local exchange carrier to provide the competitive service.
25 (4) Tariffs for competitive services filed with the
26 commission shall either be in the public records or, if the
27 commission determines that the rates are proprietary, be
28 filed under seal and made available under the terms of an
29 appropriate protective agreement, such as those used in cases
30 before the commission.
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1 (f) Discriminatory activity.--Nothing in this chapter shall
2 limit the authority of the commission to ensure that local
3 exchange telecommunications companies do not make or impose
4 unjust preferences, discriminations or classifications for
5 noncompetitive services.
6 (g) Additional requirements.--The commission shall establish
7 additional requirements and regulations as it determines to be
8 necessary to ensure the protection of consumers and to prevent
9 unfair competition.
10 (h) Safety, adequacy, reliability and privacy.--
11 Notwithstanding any other provision of this chapter, all
12 services provided by a local exchange telecommunications company
13 shall remain subject to all provisions of this title and other
14 laws of this Commonwealth regarding the safety, adequacy,
15 reliability and privacy of telecommunications services. Nothing
16 in this chapter shall affect the commission's authority to
17 regulate competitive services with respect to the ordering,
18 installation, suspension, termination and restoration of
19 services.
20 (i) Service on advocates.--At the time that a local exchange
21 telecommunications company files its petition requesting an
22 alternative form of regulation to classify any service as
23 competitive or proposing reclassification of an existing service
24 as competitive, the local exchange telecommunications company
25 shall serve a copy on all interexchange telecommunications
26 carriers as well as the Office of Consumer Advocate and the
27 Office of Small Business Advocate. At the same time, the local
28 exchange telecommunications company shall give notice to the
29 public and its ratepayers in accordance with the commission's
30 rules and regulations.
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1 (j) Resale restrictions prohibited.--The local exchange
2 telecommunications company shall not maintain or impose any
3 resale restrictions on any service which the commission finds to
4 be competitive.
5 (k) Subsidiaries.--All competitive services shall be
6 provided through a subsidiary which is fully separated from the
7 local exchange carrier unless the commission finds that the
8 provision of service on a nonseparated basis will provide
9 identifiable net benefits to consumers and will not result in
10 unfair competition.
11 § 3006. Infrastructure plans.
12 (a) Filing of plan.--Within one year after the effective
13 date of this chapter, each local exchange carrier serving more
14 than 250,000 access lines within this Commonwealth shall file
15 with the commission its future plan to construct new facilities
16 and provide new voice, data and video services to the public.
17 Local exchange telecommunications carriers serving less than
18 250,000 access lines shall have two years to file with the
19 commission its future plan to construct new facilities and
20 provide new voice, data and video services to the public. The
21 commission may order staggered filings of the deployment plan as
22 it deems necessary.
23 (b) Plan components.--The plan shall identify the local
24 exchange telecommunications company's present and projected
25 deployment of the following:
26 (1) Digital switches in central offices.
27 (2) Fiber optic trunk line capability between central
28 offices.
29 (3) Intelligent network signaling capability.
30 (4) Integrated Services Digital Network (ISDN)
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1 availability in central offices.
2 (5) The capability of providing to customers full-motion
3 video transmission in central offices.
4 (6) The capability of providing interactive switched
5 full-motion video transmission in central offices.
6 (7) The proposed deployment and location of the new
7 facilities and services to hospitals and schools.
8 (8) The proposed availability of new services and
9 facilities for business and residential uses.
10 (9) Any other services and facilities that the local
11 exchange telecommunications companies have deployed or
12 propose to deploy and desire to include in their plan.
13 (10) Any other services and facilities that the
14 commission determines should be included in the plan.
15 (c) Additional plan components.--The plan shall include the
16 capital construction program and projected costs for deployment
17 of new facilities necessary to support the future deployment,
18 the anticipated rates to be charged for new services and any
19 expected changes in rates to be charged for existing services, a
20 forecast of the revenues required to support the costs related
21 to the services and facilities set forth in the plan and a
22 schedule of deployment of the new facilities and dates when any
23 new services will be offered.
24 (d) Submission of plan.--The plans shall be submitted by
25 local exchange telecommunications companies serving 250,000
26 access lines or more at least every two years and by local
27 exchange carriers serving less than 250,000 access lines at
28 least every three years.
29 (e) Copies.--At the time that a local exchange
30 telecommunications company files its deployment plan with the
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1 commission, the company shall serve a copy on the Office of
2 Consumer Advocate and the Office of Small Business Advocate and,
3 if requested, all interexchange telecommunications companies.
4 (f) Rules and regulations.--The commission shall promulgate
5 rules and regulations for appropriate public notice of the
6 filing of the plans and for the receipt of comments on the plans
7 by any interested parties.
8 (g) Reports.--The commission shall submit a report to the
9 Governor and the General Assembly on a periodic basis
10 summarizing the plans filed by the local exchange carriers and
11 any comments on the plans submitted by interested parties.
12 Copies of this report shall be provided to the local exchange
13 carriers, the Office of Consumer Advocate, the Office of Small
14 Business Advocate and other interested parties as designated by
15 the commission.
16 (h) Rates.--Neither the submission to the commission of the
17 plan required under this section or the issuance of a report
18 regarding the plan shall be determinative as to whether the
19 costs associated with any elements of the plan may be included
20 in the rates charged by the local exchange telecommunications
21 carrier. The commission shall consider the contents of the plan
22 and any deployment of facilities in establishing rates under
23 section 1301 (relating to rates to be just and reasonable) or
24 any alternative form of regulation of this chapter.
25 (i) Review of deployment.--Within two years after the
26 effective date of this chapter, and periodically as the
27 commission shall determine, the commission shall institute a
28 proceeding to review the present and future deployment of all
29 telecommunications services by local exchange telecommunications
30 carriers in order to ensure that local exchange carriers do not
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1 unfairly discriminate against certain customers by failing to
2 evenly deploy services throughout rural, suburban and urban
3 areas of this Commonwealth. Through this proceeding, the
4 commission shall make certain determinations as follows:
5 (1) The commission shall apply a rebuttable presumption
6 that it shall be deemed unreasonably discriminatory under
7 section 1502 (relating to discrimination in service) for a
8 local exchange carrier to deploy telecommunications services
9 if the services are not evenly deployed throughout rural,
10 suburban and urban areas throughout its service territory.
11 The commission may take action required to remedy
12 unreasonable discrimination.
13 (2) The commission shall further determine whether
14 certain local exchange telecommunications carriers have not
15 deployed services in their service territory which have been
16 deployed by other local exchange carriers in other parts of
17 this Commonwealth and whether the local exchange carriers
18 should be required to deploy the services.
19 § 3007. Interexchange telecommunications carriers.
20 (a) Competitive and noncompetitive services.--Except as
21 provided in this section, telecommunications services provided
22 by interexchange telecommunications carriers shall be deemed to
23 be competitive services after January 1, 1995. The commission
24 shall not fix or prescribe the rates, tolls, charges, rate
25 structures, rate base, rate of return, operating margin or
26 earnings for competitive services or otherwise regulate
27 competitive services except as set forth in this chapter.
28 Nothing in this chapter shall limit the authority of the
29 commission to regulate privacy in connection with the services
30 provided by interexchange telecommunications carriers.
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1 Notwithstanding the classification of such telecommunications
2 services as competitive, interexchange carriers shall not be
3 permitted to deaverage standard message toll service rates
4 unless authorized to do so by the commission.
5 (b) Service quality standards.--The commission may establish
6 service quality standards for interexchange telecommunications
7 carriers. Nothing in this chapter shall limit the authority of
8 the commission to promulgate service quality standards for
9 interexchange telecommunications carriers or to resolve
10 complaints regarding the quality of interexchange
11 telecommunications carrier service.
12 (c) Reclassification.--The commission shall have the
13 authority to reclassify any interexchange telecommunications
14 service in whole or in part that is classified as competitive
15 under this chapter.
16 (d) Authority of commission not limited.--Nothing in this
17 chapter shall limit the authority of the commission to determine
18 whether an interexchange telecommunications carrier should be
19 extended the privilege of operating within this Commonwealth.
20 § 3008. Report to Governor and General Assembly.
21 Not later than two years following the effective date of this
22 chapter, the commission shall submit a report to the Governor
23 and the General Assembly reviewing the implementation of this
24 chapter, which shall include, but not be limited to, an
25 evaluation of any alternative form of regulation approved by the
26 commission and the success of the deregulation of competitive
27 services permitted by this chapter. In its recommendations, the
28 commission may also propose any legislative or other changes to
29 the Governor and the General Assembly which it deems
30 appropriate.
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1 § 3009. Regulations.
2 The commission may promulgate rules and regulations to
3 administer and enforce this chapter.
4 Section 2. The provisions of this act are severable. If any
5 provision of this act or its application to any person or
6 circumstance is held invalid, the invalidity shall not affect
7 other provisions or applications of this act which can be given
8 effect without the invalid provision or application.
9 Section 3. This act shall take effect immediately.
10 SEC. <--
11 3001. DECLARATION OF POLICY.
12 3002. DEFINITIONS.
13 3003. LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY REQUEST FOR
14 ALTERNATIVE REGULATION AND NETWORK MODERNIZATION
15 IMPLEMENTATION PLAN.
16 3004. COMMISSION REVIEW AND APPROVAL OF PETITION AND PLAN.
17 3005. COMPETITIVE SERVICES.
18 3006. STREAMLINED FORM OF RATE REGULATION.
19 3007. DETERMINATION OF ACCESS CHARGES.
20 3008. INTEREXCHANGE TELECOMMUNICATIONS CARRIER.
21 3009. ADDITIONAL POWERS AND DUTIES.
22 § 3001. DECLARATION OF POLICY.
23 THE GENERAL ASSEMBLY FINDS AND DECLARES THAT IT IS THE POLICY
24 OF THIS COMMONWEALTH TO:
25 (1) MAINTAIN UNIVERSAL TELECOMMUNICATIONS SERVICE AT
26 AFFORDABLE RATES WHILE ENCOURAGING THE ACCELERATED DEPLOYMENT
27 OF A UNIVERSALLY AVAILABLE, STATE-OF-THE-ART, INTERACTIVE,
28 PUBLIC-SWITCHED BROADBAND TELECOMMUNICATIONS NETWORK IN
29 RURAL, SUBURBAN AND URBAN AREAS, INCLUDING DEPLOYMENT OF
30 BROADBAND FACILITIES IN OR ADJACENT TO THE PUBLIC RIGHTS-OF-
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1 WAY ABUTTING PUBLIC SCHOOLS, INCLUDING THE ADMINISTRATIVE
2 OFFICES SUPPORTING PUBLIC SCHOOLS, AND HEALTH CARE
3 FACILITIES, AS DEFINED IN THE ACT OF JULY 19, 1979 (P.L.130,
4 NO.48), KNOWN AS THE HEALTH CARE FACILITIES ACT.
5 (2) ENSURE THAT CUSTOMERS PAY ONLY REASONABLE CHARGES
6 FOR LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES WHICH SHALL BE
7 AVAILABLE ON A NONDISCRIMINATORY BASIS.
8 (3) ENSURE THAT RATES FOR NONCOMPETITIVE
9 TELECOMMUNICATIONS SERVICES DO NOT SUBSIDIZE THE COMPETITIVE
10 VENTURES OF PROVIDERS OF TELECOMMUNICATIONS SERVICES.
11 (4) PROVIDE DIVERSITY IN THE SUPPLY OF EXISTING AND
12 FUTURE TELECOMMUNICATIONS SERVICES AND PRODUCTS IN
13 TELECOMMUNICATIONS MARKETS THROUGHOUT THIS COMMONWEALTH BY
14 ENSURING THAT RATES, TERMS AND CONDITIONS FOR NONCOMPETITIVE
15 SERVICES, INCLUDING ACCESS SERVICES, ARE REASONABLE AND DO
16 NOT IMPEDE THE DEVELOPMENT OF COMPETITION.
17 (5) ENSURE THE EFFICIENT DELIVERY OF TECHNOLOGICAL
18 ADVANCES AND NEW SERVICES THROUGHOUT THIS COMMONWEALTH IN
19 ORDER TO IMPROVE THE QUALITY OF LIFE FOR ALL PENNSYLVANIANS.
20 (6) ENCOURAGE THE PROVISION OF TELECOMMUNICATIONS
21 PRODUCTS AND SERVICES THAT ENHANCE THE QUALITY OF LIFE OF
22 PEOPLE WITH DISABILITIES.
23 (7) PROMOTE AND ENCOURAGE THE PROVISIONS OF COMPETITIVE
24 SERVICES BY A VARIETY OF SERVICE PROVIDERS ON EQUAL TERMS
25 THROUGHOUT ALL GEOGRAPHIC AREAS OF THIS COMMONWEALTH.
26 (8) ENCOURAGE THE COMPETITIVE SUPPLY OF ANY SERVICE IN
27 ANY REGION WHERE THERE IS MARKET DEMAND.
28 (9) ENCOURAGE JOINT VENTURES BETWEEN LOCAL EXCHANGE
29 TELECOMMUNICATIONS COMPANIES AND OTHER TELECOMMUNICATIONS
30 ENTITIES WHERE SUCH JOINT VENTURES ACCELERATE, IMPROVE OR
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1 OTHERWISE ASSIST A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
2 IN CARRYING OUT ITS NETWORK MODERNIZATION IMPLEMENTATION
3 PLAN.
4 § 3002. DEFINITIONS.
5 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
6 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
7 CONTEXT CLEARLY INDICATES OTHERWISE:
8 "AGGREGATOR TELEPHONE." A TELEPHONE WHICH IS MADE AVAILABLE
9 TO THE TRANSIENT PUBLIC, CUSTOMERS OR PATRONS, INCLUDING, BUT
10 NOT LIMITED TO, COIN TELEPHONES, CREDIT CARD TELEPHONES AND
11 TELEPHONES LOCATED IN HOTELS, MOTELS, HOSPITALS AND
12 UNIVERSITIES.
13 "ALTERNATIVE FORM OF REGULATION." A FORM OF REGULATION OF
14 TELECOMMUNICATIONS SERVICES OTHER THAN THE TRADITIONAL RATE
15 BASE/RATE OF RETURN REGULATION, TO BE DETERMINED BY THE
16 COMMISSION. THE TERM INCLUDES THE USE OF ANY INDEX, FORMULA,
17 RATE STABILITY PLAN, ZONE OF RATE FREEDOM OR STREAMLINED FORM OF
18 RATE REGULATION.
19 "BASIC SERVICE FUNCTIONS." THOSE BASIC COMPONENTS OF THE
20 LOCAL EXCHANGE CARRIER NETWORK WHICH ARE NECESSARY TO PROVIDE A
21 TELECOMMUNICATIONS SERVICE AND WHICH REPRESENT THE SMALLEST
22 FEASIBLE LEVEL OF UNBUNDLING CAPABLE OF BEING TARIFFED AND
23 OFFERED AS A SERVICE.
24 "BROADBAND." A COMMUNICATION CHANNEL USING ANY TECHNOLOGY
25 AND HAVING A BANDWIDTH EQUAL TO OR GREATER THAN 1.544 MEGABITS
26 PER SECOND.
27 "COMPETITIVE SERVICE." A SERVICE OR BUSINESS ACTIVITY
28 DETERMINED TO BE COMPETITIVE UNDER THIS CHAPTER OR ANY
29 TELECOMMUNICATIONS SERVICE DETERMINED BY THE COMMISSION TO BE
30 COMPETITIVE UNDER THIS CHAPTER.
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1 "INTEREXCHANGE TELECOMMUNICATIONS CARRIER." AN ENTITY
2 AUTHORIZED BY THE COMMISSION TO PROVIDE INTEREXCHANGE
3 TELECOMMUNICATIONS SERVICE, BUT NOT AUTHORIZED TO PROVIDE LOCAL
4 EXCHANGE TELEPHONE SERVICE.
5 "LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY." A CARRIER
6 AUTHORIZED BY THE COMMISSION TO PROVIDE LOCAL TELECOMMUNICATIONS
7 SERVICES.
8 "NONCOMPETITIVE SERVICE." THE TERM INCLUDES ANY PROTECTED
9 TELEPHONE SERVICE AS DEFINED UNDER THIS CHAPTER OR A SERVICE
10 THAT HAS BEEN DEFINED BY THE COMMISSION AS NOT A COMPETITIVE
11 SERVICE.
12 "OPTIONAL CALLING PLAN." A DISCOUNT TOLL PLAN REQUIRED BY
13 THE COMMISSION TO BE OFFERED BY EITHER A LOCAL EXCHANGE CARRIER
14 OR AN INTEREXCHANGE CARRIER WHEN JUSTIFIED BY CALL USAGE FOR A
15 TELEPHONE ROUTE. THE PROVISION OF SERVICE UNDER AN OPTIONAL
16 CALLING PLAN SHALL BE CONSIDERED NONCOMPETITIVE SERVICE UNLESS
17 DETERMINED OTHERWISE BY THE COMMISSION.
18 "PROTECTED TELEPHONE SERVICE." THE TERM INCLUDES THE
19 FOLLOWING TELECOMMUNICATIONS SERVICES PROVIDED BY A LOCAL
20 EXCHANGE TELECOMMUNICATIONS COMPANY, UNLESS THE COMMISSION
21 DETERMINES, AFTER NOTICE AND HEARING, THAT THE SERVICE IS
22 COMPETITIVE OR SHOULD NO LONGER BE A PROTECTED TELEPHONE
23 SERVICE:
24 (1) TELECOMMUNICATIONS SERVICE PROVIDED TO BUSINESS OR
25 RESIDENTIAL CONSUMERS THAT IS NECESSARY FOR COMPLETING A
26 LOCAL EXCHANGE CALL.
27 (2) TOUCH TONE SERVICE.
28 (3) SWITCHED ACCESS SERVICE.
29 (4) SPECIAL ACCESS SERVICE.
30 (5) ORDERING, INSTALLATION, RESTORATION AND
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1 DISCONNECTION OF THESE SERVICES.
2 "SPECIAL ACCESS SERVICE." SERVICE PROVIDED OVER DEDICATED,
3 NONSWITCHED FACILITIES BY LOCAL EXCHANGE TELECOMMUNICATIONS
4 COMPANIES TO INTEREXCHANGE CARRIERS OR OTHER LARGE VOLUME USERS
5 WHICH PROVIDE CONNECTION BETWEEN AN INTEREXCHANGE OR PRIVATE
6 NETWORK AND THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES'
7 SYSTEM.
8 "STREAMLINED FORM OF RATE REGULATION." A SIMPLIFIED METHOD
9 OF RATE REGULATION OF SMALL LOCAL EXCHANGE TELECOMMUNICATIONS
10 COMPANIES SERVING LESS THAN 50,000 ACCESS LINES WHICH UTILIZES A
11 METHODOLOGY OTHER THAN TRADITIONAL RATE BASE/RATE OF RETURN
12 REGULATION AND PROCEDURES OTHER THAN THOSE PROVIDED IN CHAPTER
13 13 (RELATING TO RATES AND RATE MAKING). FORMS OF SIMPLIFIED
14 REGULATION MAY INCLUDE, BUT ARE NOT LIMITED TO, THE USE OF AN
15 INDEX, FORMULA, RATE STABILITY PLAN, ZONE OF RATE FREEDOM OR
16 OTHER ABBREVIATED RATE MAKING PROCEDURES.
17 "SWITCHED ACCESS SERVICE." A SERVICE WHICH PROVIDES FOR THE
18 USE OF COMMON TERMINATING, SWITCHING AND TRUNKING FACILITIES OF
19 A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY'S PUBLIC SWITCHED
20 NETWORK. THE TERM INCLUDES THE RATES FOR LOCAL SWITCHING, COMMON
21 AND DEDICATED TRANSPORT AND THE CARRIER COMMON LINE CHARGE.
22 "TELECOMMUNICATIONS SERVICE." A UTILITY SERVICE, INVOLVING
23 THE TRANSMISSION OF MESSAGES, WHICH IS SUBJECT TO THIS TITLE.
24 "UNIVERSAL BROADBAND AVAILABILITY." ACCESS TO BROADBAND
25 SERVICE BY EACH BONA FIDE TELEPHONE CUSTOMER OF A LOCAL EXCHANGE
26 TELECOMMUNICATIONS COMPANY WITHIN FIVE DAYS AFTER A REQUEST FOR
27 BROADBAND SERVICE IS RECEIVED BY ANY TELECOMMUNICATIONS COMPANY.
28 § 3003. LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY REQUEST FOR
29 ALTERNATIVE REGULATION AND NETWORK MODERNIZATION
30 IMPLEMENTATION PLAN.
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1 (A) PETITION.--WHEN A LOCAL EXCHANGE TELECOMMUNICATIONS
2 COMPANY SEEKS TO BE REGULATED UNDER AN ALTERNATIVE FORM OF
3 REGULATION, IT SHALL SUBMIT TO THE COMMISSION A PETITION
4 REQUESTING THE ALTERNATIVE FORM OF REGULATION. IN THE PETITION,
5 THE COMPANY SHALL SUBMIT ITS PROPOSAL AND SUPPORTING DATA FOR AN
6 ALTERNATIVE FORM OF REGULATION. THE PETITION SHALL ALSO IDENTIFY
7 ALL COMPETITIVE SERVICES WHICH THE LOCAL EXCHANGE
8 TELECOMMUNICATIONS COMPANY PROPOSES AT THAT TIME.
9 (B) NETWORK MODERNIZATION IMPLEMENTATION PLAN.--THE PETITION
10 SHALL ALSO INCLUDE THE COMPANY'S NETWORK MODERNIZATION
11 IMPLEMENTATION PLAN UNDER WHICH:
12 (1) EACH LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
13 COMMIT TO A GOAL OF UNIVERSAL BROADBAND AVAILABILITY AND
14 SHALL COMMIT TO A GOAL OF CONVERTING 100% OF ITS INTEROFFICE
15 AND DISTRIBUTION TELECOMMUNICATIONS NETWORK TO BROADBAND
16 CAPABILITY BY DECEMBER 31, 2015.
17 (2) EACH LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
18 REASONABLY BALANCE DEPLOYMENT OF ITS BROADBAND NETWORK
19 BETWEEN RURAL, URBAN AND SUBURBAN AREAS WITHIN ITS SERVICE
20 TERRITORY.
21 (3) THE DEPLOYMENT OF BROADBAND FACILITIES SHALL BE IN
22 OR ADJACENT TO PUBLIC RIGHTS-OF-WAY ABUTTING PUBLIC SCHOOLS,
23 INCLUDING THE ADMINISTRATIVE OFFICES SUPPORTING PUBLIC
24 SCHOOLS, AND HEALTH CARE FACILITIES, AS DEFINED IN THE ACT OF
25 JULY 19, 1979 (P.L.130, NO.48), KNOWN AS THE HEALTH CARE
26 FACILITIES ACT.
27 (4) A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
28 FILE A NETWORK MODERNIZATION IMPLEMENTATION PLAN WITH ITS
29 PETITION FOR ALTERNATIVE FORM OF REGULATION WITH THE
30 COMMISSION WHICH IDENTIFIES AND DESCRIBES IN DETAIL THE
19930H0004B1907 - 23 -
1 COMPANY'S IMPLEMENTATION PLAN FOR COMPLYING WITH PARAGRAPHS
2 (1), (2) AND (3). THE PLAN SHALL SPECIFY INTERIM TARGET DATES
3 AT NOT MORE THAN FIVE-YEAR INTERVALS FOR DEPLOYMENT OF ITS
4 BROADBAND NETWORK.
5 (5) JOINT VENTURES BETWEEN LOCAL EXCHANGE
6 TELECOMMUNICATIONS COMPANIES AND OTHER TELECOMMUNICATIONS
7 ENTITIES MAY BE INCLUDED AS PART OF A LOCAL EXCHANGE
8 TELECOMMUNICATIONS COMPANY'S NETWORK MODERNIZATION
9 IMPLEMENTATION PLAN WHERE THE JOINT VENTURES ACCELERATE,
10 IMPROVE OR OTHERWISE ASSIST A LOCAL EXCHANGE
11 TELECOMMUNICATIONS COMPANY IN CARRYING OUT ITS NETWORK
12 MODERNIZATION IMPLEMENTATION PLAN. THE JOINT VENTURES MAY BE
13 PROPOSED BY ANY INTERESTED PARTY.
14 (6) THE NETWORK MODERNIZATION IMPLEMENTATION PLAN SHALL
15 BE UPDATED AND FILED WITH THE COMMISSION BIENNIALLY. THE
16 COMMISSION SHALL REVIEW AND APPROVE THE PLAN UPDATES AS LONG
17 AS THE UPDATES ARE FOUND TO BE CONSISTENT WITH AND IN
18 FURTHERANCE OF THE LOCAL EXCHANGE TELECOMMUNICATIONS
19 COMPANY'S CURRENTLY EFFECTIVE IMPLEMENTATION PLAN.
20 (C) FILING.--THE COMPANY SHALL FILE ITS PETITION, PLAN AND
21 SUPPORTING DATA CONCURRENTLY WITH THE OFFICE OF CONSUMER
22 ADVOCATE, THE OFFICE OF SMALL BUSINESS ADVOCATE AND ANY
23 INTEREXCHANGE TELECOMMUNICATIONS CARRIER THAT HAS REQUESTED
24 NOTICE OF THE FILINGS FROM THE LOCAL EXCHANGE TELECOMMUNICATIONS
25 COMPANY. AT THE SAME TIME, THE COMPANY SHALL GIVE NOTICE TO ITS
26 RATEPAYERS THROUGH A BILLING INSERT OR BILL MESSAGE, TO ITS
27 EMPLOYEES AND TO THE PUBLIC OF THE FILING OF ITS PETITION FOR AN
28 ALTERNATIVE FORM OF REGULATION AND NETWORK MODERNIZATION
29 IMPLEMENTATION PLAN IN ACCORDANCE WITH THE COMMISSION'S RULES
30 AND REGULATIONS.
19930H0004B1907 - 24 -
1 (D) UPDATING.--THE COMMISSION SHALL REQUIRE ANY LOCAL
2 EXCHANGE TELECOMMUNICATIONS COMPANY WHICH HAS NOT FILED A
3 PETITION AND PLAN WITHIN FIVE YEARS OF THE EFFECTIVE DATE OF
4 THIS CHAPTER TO SHOW CAUSE WHY IT HAS NOT DONE SO.
5 § 3004. COMMISSION REVIEW AND APPROVAL OF PETITION AND PLAN.
6 (A) AUTHORIZATION.--IN DETERMINING JUST AND REASONABLE RATES
7 IN ACCORDANCE WITH SECTION 1301 (RELATING TO RATES TO BE JUST
8 AND REASONABLE), THE COMMISSION MAY AUTHORIZE A LOCAL EXCHANGE
9 TELECOMMUNICATIONS COMPANY TO SET RATES BASED ON AN ALTERNATIVE
10 FORM OF REGULATION PURSUANT TO A PLAN APPROVED BY THE COMMISSION
11 UNDER THIS CHAPTER.
12 (B) REVIEW AND APPROVAL OF PETITION AND PLAN.--THE
13 COMMISSION SHALL, AFTER NOTICE AND HEARING, REVIEW THE PETITION
14 AND PLAN FOR AN ALTERNATIVE FORM OF REGULATION, AND APPROVE THE
15 PETITION AND PLAN, APPROVE THEM WITH MODIFICATIONS, OR DENY THEM
16 AS NOT REASONABLY DESIGNED TO MEET THE REQUIREMENTS OF THIS
17 CHAPTER. IF THE COMMISSION DENIES THE PETITION AND PLAN OR
18 APPROVES THEM WITH MODIFICATIONS, THE COMMISSION SHALL SET FORTH
19 IN ITS ORDER EACH SPECIFIC REASON FOR THE DENIAL OR
20 MODIFICATION. IF THE COMMISSION DOES NOT ACT WITHIN NINE MONTHS
21 OF THE FILING DATE OF THE PETITION AND PLAN, THEY SHALL BE
22 DEEMED APPROVED. IF THE COMMISSION APPROVES THE PETITION AND
23 PLAN WITH MODIFICATIONS, THE LOCAL EXCHANGE TELECOMMUNICATIONS
24 COMPANY MAY, AT ITS OPTION, WITHDRAW ITS PETITION AND PLAN AND
25 CONTINUE TO BE REGULATED UNDER ITS EXISTING FORM OF REGULATION
26 OR A STREAMLINED FORM OF REGULATION FOR WHICH IT QUALIFIES. IF A
27 LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY'S PETITION AND PLAN
28 ARE DENIED OR WITHDRAWN AND A SUBSEQUENT PETITION AND PLAN ARE
29 NOT SUBMITTED WITHIN FIVE YEARS FROM THE EFFECTIVE DATE OF THIS
30 CHAPTER, THE COMMISSION SHALL REQUIRE THE LOCAL EXCHANGE
19930H0004B1907 - 25 -
1 TELECOMMUNICATIONS COMPANY TO SHOW CAUSE WHY IT HAS NOT DONE SO.
2 (C) COMMISSION REVIEW OF NETWORK MODERNIZATION
3 IMPLEMENTATION PLAN.--THE COMMISSION SHALL REVIEW EACH LOCAL
4 EXCHANGE TELECOMMUNICATIONS COMPANY'S NETWORK MODERNIZATION
5 IMPLEMENTATION PLAN TO DETERMINE IF THE PLAN IS CONSISTENT WITH
6 THE PROVISIONS OF THIS CHAPTER AND IN THE PUBLIC INTEREST. IN
7 REVIEWING A NETWORK MODERNIZATION IMPLEMENTATION PLAN, THE
8 COMMISSION MAY REQUIRE A LOCAL EXCHANGE TELECOMMUNICATIONS
9 COMPANY TO SHOW CAUSE WHY A SPECIFIC JOINT VENTURE OPPORTUNITY
10 HAS NOT BEEN INCLUDED IN THE PLAN.
11 (D) CRITERIA FOR COMMISSION REVIEW.--THE COMMISSION SHALL
12 APPROVE THE PETITION, AFTER NOTICE AND HEARING, ONLY IF IT FINDS
13 THAT THE PETITION MEETS THE FOLLOWING CRITERIA:
14 (1) ENSURES THE CONTINUED AFFORDABILITY OF PROTECTED
15 TELEPHONE SERVICE.
16 (2) ASSURES THAT THE RATES FOR NONCOMPETITIVE SERVICES
17 ARE JUST, REASONABLE AND NOT UNDULY DISCRIMINATORY THROUGH
18 THE USE OF A PRICE STABILITY MECHANISM OR OTHER ALTERNATIVE
19 FORM WHICH MAY INCLUDE INDICES, FORMULAS, RATE STABILITY
20 PLANS, ZONES OF RATE FREEDOM OR STREAMLINED RATE MAKING
21 PLANS. IF A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
22 INCLUDES AN INDEX OR FORMULA IN ITS PETITION FOR AN
23 ALTERNATIVE FORM OF REGULATION, THE INDEX OR FORMULA SHALL BE
24 DEEMED JUST AND REASONABLE AND NOT UNDULY DISCRIMINATORY FOR
25 PURPOSES OF THIS CHAPTER IF IT ALLOWS TOTAL ANNUAL REVENUES
26 FROM NONCOMPETITIVE SERVICES TO INCREASE OR DECREASE FROM THE
27 PREVIOUS YEAR'S TOTAL REVENUES FROM NONCOMPETITIVE SERVICES
28 AS A RESULT OF TARIFF RATE CHANGES BY NOT MORE THAN THE
29 ANNUAL CHANGE IN THE GROSS DOMESTIC PRODUCT PRICE INDEX (AS
30 CALCULATED BY THE UNITED STATES DEPARTMENT OF COMMERCE) MINUS
19930H0004B1907 - 26 -
1 TWO PERCENTAGE POINTS. TARIFFS TO RECOVER THE ADDITIONAL
2 REVENUES SHALL BE SUBJECT TO COMMISSION APPROVAL UNDER
3 SECTION 1308 (RELATING TO VOLUNTARY CHANGES IN RATES). THE
4 MONTHLY LOCAL EXCHANGE RATE AND THE MONTHLY TOUCH TONE
5 SERVICE RATE SHALL NOT BE INCREASED BY ANY AMOUNT FOR ANY
6 CUSTOMER FOR THREE YEARS FROM THE EFFECTIVE DATE OF THIS
7 CHAPTER AND THEREAFTER SHALL NOT BE RAISED FOR ANY PERSON WHO
8 IS DETERMINED TO BE AN "ELIGIBLE CLAIMANT" BY THE DEPARTMENT
9 OF AGING UNDER CHAPTER 3 OF THE ACT OF AUGUST 14, 1991
10 (P.L.342, NO.36), KNOWN AS THE LOTTERY FUND PRESERVATION ACT,
11 OR FOR ANY PERSON ELIGIBLE FOR MEDICAL ASSISTANCE UNDER
12 SECTION 1902 OF THE SOCIAL SECURITY ACT (49 STAT. 620, 42
13 U.S.C. § 1396A). THE COMMISSION SHALL BE AUTHORIZED TO
14 PROMULGATE RULES AND REGULATIONS WHICH ESTABLISH AN
15 ACCOUNTING PROCEDURE UNDER WHICH THE TOTAL ANNUAL REVENUES
16 RECEIVED BY A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY FROM
17 NONCOMPETITIVE SERVICES UNDER THE FORMULA IN THIS PARAGRAPH
18 ARE USED EXCLUSIVELY FOR CONVERTING 100% OF ITS INTEROFFICE
19 AND DISTRIBUTION TELECOMMUNICATIONS NETWORK TO BROADBAND
20 CAPABILITY IN ACCORDANCE WITH SECTION 3003 (RELATING TO LOCAL
21 EXCHANGE TELECOMMUNICATIONS COMPANY REQUEST FOR ALTERNATIVE
22 REGULATION AND NETWORK MODERNIZATION IMPLEMENTATION PLAN).
23 (3) PROVIDES FOR THE RATE DEREGULATION OF ALL
24 COMPETITIVE SERVICES INCLUDING THE DEREGULATION OF RATES,
25 TOLLS, CHARGES, RATE STRUCTURES, RATE BASE, RATE OF RETURN OR
26 EARNINGS OF COMPETITIVE SERVICES.
27 (4) WILL NOT UNDULY OR UNREASONABLY PREJUDICE OR
28 DISADVANTAGE A CUSTOMER CLASS OR PROVIDERS OF COMPETITIVE
29 SERVICES.
30 (5) IS IN THE PUBLIC INTEREST.
19930H0004B1907 - 27 -
1 (6) ENHANCES ECONOMIC DEVELOPMENT IN THIS COMMONWEALTH
2 WHILE MAINTAINING AFFORDABLE RATES.
3 (7) CONTAINS A COMPREHENSIVE PROGRAM OF SERVICE QUALITY
4 STANDARDS IN ACCORDANCE WITH SECTION 1501 (RELATING TO
5 CHARACTER OF SERVICE AND FACILITIES), INCLUDING PROCEDURES
6 FOR COMMISSION REVIEW.
7 (8) SPECIFICALLY IDENTIFIES THE BENEFITS TO BE DERIVED
8 FROM THE ALTERNATIVE FORM OF REGULATION, INCLUDING, BUT NOT
9 LIMITED TO, THE REDUCTION OF REGULATORY DELAYS AND COSTS.
10 (9) COMPLIES WITH SECTION 3007 (RELATING TO
11 DETERMINATION OF ACCESS CHARGES) UNDER THIS CHAPTER.
12 (10) WILL PERMIT THE DEPLOYMENT OF NEW VOICE, DATA AND
13 VIDEO SERVICES TO RURAL, SUBURBAN AND URBAN AREAS THROUGHOUT
14 THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SERVICE
15 TERRITORY.
16 (11) ASSURES THAT ALL CUSTOMERS OF THE LOCAL EXCHANGE
17 TELECOMMUNICATIONS COMPANY SHALL BE AFFORDED THE MAXIMUM
18 PRACTICABLE EXTENDED AREA SERVICE WITHOUT APPLICATION OF
19 TOLL, WHEN JUSTIFIED BY USAGE.
20 (12) ASSURES THAT LOW-INCOME INDIVIDUALS ARE ABLE TO
21 CONNECT TO AND MAINTAIN IN-HOME ACCESS TO PROTECTED TELEPHONE
22 SERVICES.
23 (13) ASSURES THAT THE PROVISION OF TELECOMMUNICATIONS
24 PRODUCTS AND SERVICES ENHANCES THE QUALITY OF LIFE OF PEOPLE
25 WITH DISABILITIES.
26 (E) BURDEN OF PROOF.--THE BURDEN OF PROOF SHALL BE ON THE
27 LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY REQUESTING AN
28 ALTERNATIVE FORM OF REGULATION.
29 § 3005. COMPETITIVE SERVICES.
30 (A) IDENTIFICATION OF COMPETITIVE SERVICE.--THE COMMISSION
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1 IS AUTHORIZED TO DETERMINE, AFTER NOTICE AND HEARING, WHETHER A
2 TELECOMMUNICATIONS SERVICE OFFERED BY A LOCAL EXCHANGE COMPANY
3 IS A COMPETITIVE SERVICE. A LOCAL EXCHANGE TELECOMMUNICATIONS
4 COMPANY MAY PETITION THE COMMISSION FOR A DETERMINATION OF
5 WHETHER A TELECOMMUNICATIONS SERVICE IS COMPETITIVE, EITHER IN
6 CONJUNCTION WITH A PETITION TO BE REGULATED UNDER AN ALTERNATIVE
7 FORM OF REGULATION OR AT ANY TIME AFTER THE GRANTING OF THE
8 PETITION. REQUESTS FOR A COMPETITIVE CLASSIFICATION NOT FILED AS
9 PART OF A PETITION FOR AN ALTERNATIVE REGULATORY FRAMEWORK SHALL
10 HAVE AN EFFECTIVE DATE OF NOT LESS THAN 60 DAYS FROM THE FILING
11 DATE. THE COMMISSION SHALL ENTER AN ORDER APPROVING OR
12 DISAPPROVING THE PETITION WITHIN 120 DAYS OF THE FILING DATE. IN
13 MAKING THE DETERMINATION, THE COMMISSION SHALL CONSIDER ALL
14 RELEVANT EVIDENCE SUBMITTED TO IT, INCLUDING EVIDENCE PRESENTED
15 BY PROVIDERS OF COMPETITIVE SERVICES. IN A PROCEEDING TO
16 DETERMINE WHETHER A TELECOMMUNICATIONS SERVICE IS A COMPETITIVE
17 SERVICE, THE FOLLOWING SHALL APPLY:
18 (1) THE COMMISSION SHALL MAKE FINDINGS WHICH, AT A
19 MINIMUM, SHALL INCLUDE EVIDENCE OF EASE OF MARKET ENTRY;
20 PRESENCE AND VIABILITY OF OTHER COMPETITORS; THE ABILITY OF
21 COMPETITORS TO OFFER THOSE SERVICES AT COMPETITIVE PRICES,
22 TERMS AND CONDITIONS; THE AVAILABILITY OF LIKE OR SUBSTITUTE
23 SERVICES IN THE RELEVANT GEOGRAPHIC AREA; THE EFFECT, IF ANY,
24 ON PROTECTED SERVICES; THE OVERALL IMPACT OF THE PROPOSED
25 REGULATORY CHANGES ON THE CONTINUED AVAILABILITY OF EXISTING
26 SERVICES; WHETHER THE CONSUMERS OF THE SERVICE WOULD RECEIVE
27 AN IDENTIFIABLE BENEFIT FROM THE PROVISION OF THE SERVICE ON
28 A COMPETITIVE BASIS; THE DEGREE OF REGULATION NECESSARY TO
29 PREVENT ABUSES OR DISCRIMINATION IN THE PROVISION OF THE
30 SERVICE AND ANY OTHER RELEVANT FACTORS WHICH ARE IN THE
19930H0004B1907 - 29 -
1 PUBLIC INTEREST. IF A LOCAL EXCHANGE TELECOMMUNICATIONS
2 COMPANY INTRODUCES A TELECOMMUNICATIONS SERVICE THAT HAS NOT
3 PREVIOUSLY BEEN OFFERED, THE SERVICE WILL NOT BE DEEMED
4 COMPETITIVE UNLESS IT IS SO DETERMINED BY THE COMMISSION
5 UNDER THE PROVISIONS OF THIS CHAPTER.
6 (2) THE BURDEN OF PROVING THAT A TELECOMMUNICATIONS
7 SERVICE IS COMPETITIVE RESTS ON THE PARTY SEEKING TO HAVE THE
8 SERVICE CLASSIFIED AS COMPETITIVE.
9 (B) REGULATIONS.--THE COMMISSION SHALL ESTABLISH REGULATIONS
10 TO PREVENT LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES FROM
11 ENGAGING IN UNFAIR COMPETITION AND REQUIRE THAT LOCAL EXCHANGE
12 TELECOMMUNICATIONS COMPANIES PROVIDE REASONABLE
13 NONDISCRIMINATORY ACCESS TO COMPETITORS FOR ALL SERVICES AND
14 FACILITIES NECESSARY TO PROVIDE COMPETING SERVICES TO CONSUMERS.
15 (C) REPORTS.--THE COMMISSION SHALL DETERMINE, BY RULE,
16 REGULATION OR ORDER, WHAT REPORTS ARE NECESSARY TO MONITOR THE
17 ACCOUNTING FOR, AND COMPETITIVENESS OF, A COMPETITIVE SERVICE.
18 (D) RECLASSIFICATION.--THE COMMISSION SHALL HAVE THE
19 AUTHORITY TO RECLASSIFY A TELECOMMUNICATIONS SERVICE THAT IT HAS
20 PREVIOUSLY FOUND TO BE COMPETITIVE IF, AFTER NOTICE AND HEARING,
21 IT DETERMINES THAT SUFFICIENT COMPETITION IS NO LONGER PRESENT,
22 UPON APPLICATION OF THE CRITERIA SET FORTH IN THIS CHAPTER. IF
23 THE COMMISSION FINDS THAT A RECLASSIFICATION IS NECESSARY, THE
24 COMMISSION MUST DETERMINE WHETHER THE RATE FOR THE
25 TELECOMMUNICATIONS SERVICE IS JUST AND REASONABLE IN ACCORDANCE
26 WITH SECTION 1301 (RELATING TO RATES TO BE JUST AND REASONABLE).
27 IF THE TELECOMMUNICATIONS SERVICE SUBSEQUENTLY BECOMES
28 COMPETITIVE, THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
29 PETITION THE COMMISSION TO MAKE A DETERMINATION OF
30 COMPETITIVENESS FOR THE SERVICE UNDER THE PROVISIONS OF THIS
19930H0004B1907 - 30 -
1 CHAPTER.
2 (E) ADDITIONAL DETERMINATIONS.--THE COMMISSION SHALL
3 DETERMINE WHETHER LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES
4 ARE COMPLYING WITH THE FOLLOWING PROVISIONS:
5 (1) THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
6 UNBUNDLE EACH BASIC SERVICE FUNCTION ON WHICH THE COMPETITIVE
7 SERVICE DEPENDS AND SHALL MAKE THE BASIC SERVICE FUNCTIONS
8 SEPARATELY AVAILABLE TO ANY CUSTOMER UNDER TARIFFED TERMS AND
9 CONDITIONS, INCLUDING PRICE, THAT ARE IDENTICAL TO THOSE USED
10 BY THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY IN PROVIDING
11 ITS COMPETITIVE SERVICE.
12 (2) THE PRICE WHICH A LOCAL EXCHANGE TELECOMMUNICATIONS
13 COMPANY CHARGES FOR A COMPETITIVE SERVICE SHALL NOT BE LESS
14 THAN THE RATES CHARGED TO OTHERS FOR ANY BASIC SERVICE
15 FUNCTIONS USED BY THE LOCAL EXCHANGE TELECOMMUNICATIONS
16 COMPANY TO PROVIDE THE COMPETITIVE SERVICE. REVENUES FROM THE
17 RATES FOR ACCESS SERVICES REFLECTED IN THE PRICE OF
18 COMPETITIVE SERVICES SHALL BE INCLUDED IN THE TOTAL REVENUES
19 PRODUCED BY THE NONCOMPETITIVE SERVICES.
20 (3) TARIFFS OR PRICE LISTS FOR COMPETITIVE SERVICES
21 FILED WITH THE COMMISSION SHALL EITHER BE IN THE PUBLIC
22 RECORDS OR, IF THE COMMISSION DETERMINES THAT THE RATES ARE
23 PROPRIETARY, BE FILED UNDER SEAL AND MADE AVAILABLE UNDER THE
24 TERMS OF AN APPROPRIATE PROTECTIVE AGREEMENT OF THE TYPE USED
25 IN CASES BEFORE THE COMMISSION.
26 (F) SERVICE AND NOTICE.--AT THE TIME A LOCAL EXCHANGE
27 TELECOMMUNICATIONS COMPANY FILES A PETITION FOR AN ALTERNATIVE
28 FORM OF REGULATION TO CLASSIFY ANY SERVICE AS COMPETITIVE OR TO
29 RECLASSIFY AN EXISTING SERVICE AS COMPETITIVE OR FOR THE
30 TRANSFER OF ANY ASSETS OF SERVICES CLASSIFIED AS COMPETITIVE BY
19930H0004B1907 - 31 -
1 THE COMMISSION, THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
2 SHALL SERVE A COPY ON ALL INTEREXCHANGE TELECOMMUNICATIONS
3 CARRIERS WHO HAVE REQUESTED NOTICE OF THE FILINGS FROM THE LOCAL
4 EXCHANGE TELECOMMUNICATIONS COMPANY AS WELL AS THE OFFICE OF
5 CONSUMER ADVOCATE AND THE OFFICE OF SMALL BUSINESS ADVOCATE. AT
6 THE SAME TIME, THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
7 MUST GIVE NOTICE TO THE PUBLIC, ITS EMPLOYEES AND ITS RATEPAYERS
8 THROUGH A BILLING INSERT OR BILL MESSAGE IN ACCORDANCE WITH THE
9 COMMISSION'S RULES AND REGULATIONS.
10 (G) PROHIBITIONS.--THE LOCAL EXCHANGE TELECOMMUNICATIONS
11 COMPANY SHALL BE PROHIBITED FROM ENGAGING IN THE FOLLOWING:
12 (1) THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY SHALL
13 NOT MAINTAIN OR IMPOSE ANY RESALE RESTRICTIONS ON ANY SERVICE
14 WHICH THE COMMISSION FINDS TO BE COMPETITIVE.
15 (2) A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY MAY NOT
16 USE REVENUES EARNED OR EXPENSES INCURRED IN CONJUNCTION WITH
17 NONCOMPETITIVE SERVICES TO SUBSIDIZE OR SUPPORT ANY
18 COMPETITIVE SERVICES. THE COMMISSION SHALL ESTABLISH
19 REGULATIONS WHICH MUST BE FOLLOWED BY LOCAL EXCHANGE
20 TELECOMMUNICATIONS COMPANIES FOR THE PURPOSE OF ALLOCATING
21 COSTS FOR ACCOUNTING AND RATE MAKING AMONG TELEPHONE SERVICES
22 IN ORDER TO PREVENT SUBSIDIZATION OR SUPPORT FOR COMPETITIVE
23 SERVICES.
24 § 3006. STREAMLINED FORM OF RATE REGULATION.
25 (A) STREAMLINED FORM OF RATE REGULATION PETITION.--IN
26 ACCORDANCE WITH SECTIONS 3003 (RELATING TO LOCAL EXCHANGE
27 TELECOMMUNICATIONS COMPANY REQUEST FOR ALTERNATIVE REGULATION
28 AND NETWORK MODERNIZATION IMPLEMENTATION PLAN) AND 3004
29 (RELATING TO COMMISSION REVIEW AND APPROVAL OF PETITION AND
30 PLAN), LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES SERVING LESS
19930H0004B1907 - 32 -
1 THAN 50,000 ACCESS LINES WITHIN THIS COMMONWEALTH MAY PETITION
2 THE COMMISSION TO ESTABLISH A STREAMLINED FORM OF RATE
3 REGULATION TO BE APPLICABLE TO THEIR OPERATIONS. THE STREAMLINED
4 FORM OF RATE REGULATION SHALL BE DESIGNED TO DECREASE REGULATORY
5 DELAYS AND COSTS AND MAY INCLUDE, BUT IS NOT LIMITED TO, USE OF
6 AN INDEX FORMULA, PRICE STABILITY PLAN, ZONE OF RATE FREEDOM OR
7 A COMBINATION THEREOF. THE STREAMLINED FORM OF RATE REGULATION
8 MAY BE PROPOSED TO REVISE OR DECREASE NOTICE PERIODS, SUSPENSION
9 PERIODS AND OTHER PROCEDURES CURRENTLY REQUIRED BY CHAPTER 13
10 (RELATING TO RATES AND RATE MAKING) CONSISTENT WITH DUE PROCESS
11 REQUIREMENTS. THE STREAMLINED FORM OF RATE REGULATION SHALL BE
12 PROPOSED TO BE APPLICABLE TO ALL OF THE LOCAL EXCHANGE
13 COMPANIES' RATES AND SERVICES WITHIN THE COMMISSION'S
14 JURISDICTION.
15 (B) REQUIRED SERVICE.--PETITIONS FOR A STREAMLINED FORM OF
16 RATE REGULATION SHALL BE SERVED ON THE OFFICE OF CONSUMER
17 ADVOCATE, THE OFFICE OF SMALL BUSINESS ADVOCATE AND ANY
18 INTEREXCHANGE CARRIER THAT HAS REQUESTED NOTICE OF THE FILINGS
19 FROM THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY. AT THE SAME
20 TIME, THE COMPANY SHALL GIVE NOTICE TO ITS RATEPAYERS AND THE
21 PUBLIC OF THE FILING OF ITS PETITION.
22 (C) COMMISSION REVIEW.--THE COMMISSION SHALL REVIEW A
23 STREAMLINED FORM OF RATE REGULATION FOR A LOCAL EXCHANGE
24 TELECOMMUNICATIONS COMPANY WITHIN NINE MONTHS OF THE FILING OF
25 THE PETITION. IF THE COMMISSION DOES NOT ACT WITHIN NINE MONTHS
26 OF THE FILING OF THE PETITION, THE PLAN SHALL BE DEEMED
27 APPROVED. THE COMMISSION SHALL APPROVE A STREAMLINED FORM OF
28 RATE REGULATION FOR A LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY
29 UPON REACHING THE FOLLOWING FINDINGS:
30 (1) THE PROPOSAL REDUCES REGULATORY DELAYS AND COSTS.
19930H0004B1907 - 33 -
1 (2) THE PROPOSAL IS CONSISTENT WITH GENERAL DUE PROCESS
2 REQUIREMENTS.
3 (3) THE PROPOSAL IS CONSISTENT AND IN COMPLIANCE WITH
4 ALL OF THE PROVISIONS OF THIS CHAPTER.
5 (4) THE PROPOSAL IS IN THE PUBLIC INTEREST.
6 (D) FILING REQUIREMENTS.--FOR LOCAL EXCHANGE
7 TELECOMMUNICATIONS COMPANIES SERVING LESS THAN 50,000 ACCESS
8 LINES IN THIS COMMONWEALTH, FILING REQUIREMENTS AND AUDIT
9 REQUIREMENTS ARE LIMITED TO AN ANNUAL FINANCIAL REPORT,
10 INCLUDING RATE OF RETURN DATA FOR SURVEILLANCE PURPOSES; AN
11 ANNUAL DEAF, SPEECH-IMPAIRED AND HEARING-IMPAIRED RELAY
12 INFORMATION REPORT; AN ANNUAL SERVICE REPORT; AN ANNUAL ACCESS
13 LINE REPORT; AN ANNUAL STATE TAX ADJUSTMENT COMPUTATION FOR
14 YEARS IN WHICH A TAX CHANGE HAS OCCURRED; A BIENNIAL EXTENDED
15 AREA SERVICE TRAFFIC STUDY; AND ANY ADDITIONAL SPECIAL REPORTS
16 OR STUDIES FOR WHICH THE COMMISSION DETERMINES THAT THE BENEFITS
17 GENERATED WILL JUSTIFY THE ATTENDANT EXPENSE AND ADMINISTRATIVE
18 TIME REQUIREMENTS OF PREPARING THEM.
19 (E) IMPLEMENTATION.--UPON COMMISSION APPROVAL OF A
20 STREAMLINED FORM OF RATE REGULATION, THE STREAMLINED FORM OF
21 REGULATION SHALL BE IMPLEMENTED AND SHALL GOVERN THE REGULATION
22 OF THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY AND SHALL,
23 CONSISTENT WITH THE PROVISIONS OF THIS CHAPTER, SUPERSEDE ANY
24 CONFLICTING PROVISIONS OF THIS TITLE OR OTHER LAWS OF THIS
25 COMMONWEALTH.
26 (F) RATE INCREASES.--FOR LOCAL EXCHANGE TELECOMMUNICATIONS
27 COMPANIES SERVING LESS THAN 50,000 ACCESS LINES IN THIS
28 COMMONWEALTH, A FORMAL COMPLAINT TO DENY RATE INCREASES FOR
29 PROTECTED SERVICES, UNLESS SIGNED BY AT LEAST 20 CUSTOMERS OF
30 THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY, SHALL NOT STOP
19930H0004B1907 - 34 -
1 THE IMPLEMENTATION OF THE RATE INCREASES, PENDING THE
2 ADJUDICATION OF THE FORMAL COMPLAINT BY THE COMMISSION.
3 § 3007. DETERMINATION OF ACCESS CHARGES.
4 LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES SERVING MORE THAN
5 125,000 ACCESS LINES IN THIS COMMONWEALTH AS OF THE EFFECTIVE
6 DATE OF THIS CHAPTER SHALL COMPLY WITH THE FOLLOWING PROVISIONS:
7 (1) LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES SHALL
8 HAVE AN EFFECTIVE PER-MINUTE SWITCHED ACCESS SERVICE PRICE
9 THAT SHALL NOT EXCEED 12¢ FOR THE FIRST FIVE YEARS FROM THE
10 IMPLEMENTATION DATE OF THE PETITION AND PLAN, UNLESS THE
11 COMPANY CAN JUSTIFY A HIGHER RATE BASED ON THE TOTAL COST OF
12 SWITCHED ACCESS SERVICES. THE PER-MINUTE SWITCHED ACCESS
13 SERVICE PRICE INCLUDES BOTH ORIGINATING AND TERMINATING RATES
14 AND EXCLUDES NONRECURRING RATES. A LOCAL EXCHANGE
15 TELECOMMUNICATIONS COMPANY WITH AN EFFECTIVE PER-MINUTE
16 SWITCHED ACCESS SERVICE PRICE GREATER THAN 12¢ ON THE
17 IMPLEMENTATION DATE OF THE PETITION AND PLAN, SHALL PHASEDOWN
18 TO NOT MORE THAN 12¢ IN NOT MORE THAN THREE EQUAL ANNUAL
19 INCREMENTS COMMENCING WITH THE IMPLEMENTATION OF THE PETITION
20 AND PLAN. UPON THE SIXTH YEAR FROM THE IMPLEMENTATION DATE OF
21 THE PLAN, THE COMMISSION SHALL REVIEW THE PER-MINUTE SWITCHED
22 ACCESS SERVICE PRICE AND, AFTER NOTICE AND HEARING, DETERMINE
23 A JUST AND REASONABLE PER-MINUTE SWITCHED ACCESS SERVICE
24 PRICE.
25 (2) LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES WITH AN
26 EFFECTIVE PER-MINUTE SWITCHED ACCESS SERVICE PRICE AT OR
27 BELOW 12¢, INCLUDING BOTH ORIGINATING AND TERMINATING RATES
28 AND EXCLUDING NONRECURRING RATES, MAY NOT INCREASE SWITCHED
29 ACCESS PRICES EITHER IN CONJUNCTION WITH THE YEARS FROM THE
30 APPROVAL DATE OF A PETITION OR PRIOR TO DECEMBER 31, 1999,
19930H0004B1907 - 35 -
1 UNLESS THE COMPANY CAN SHOW THAT, ABSENT AN INCREASE, TOTAL
2 SWITCHED ACCESS REVENUES WOULD BE BELOW TOTAL SWITCHED ACCESS
3 COST. REVENUE-NEUTRAL ACCESS TARIFF RATE CHANGES AND
4 RESTRUCTURES MAY BE PROPOSED SUBJECT TO COMMISSION APPROVAL.
5 (3) UPON THE COMMISSION'S EVALUATION OF THE CONSISTENCY
6 OF TARIFF RATES AND STRUCTURES WITH THE INTERSTATE ACCESS
7 SERVICE TARIFF, REVENUE-NEUTRAL TARIFF RATE CHANGES AND
8 RESTRUCTURES MAY BE PROPOSED BY LOCAL EXCHANGE
9 TELECOMMUNICATIONS COMPANIES IN ORDER TO IMPLEMENT THE
10 RESULTS OF THE COMMISSION EVALUATION. RATE CHANGES AND
11 RESTRUCTURES FOR ACCESS SERVICES SUBMITTED IN ACCORDANCE WITH
12 THIS PARAGRAPH ARE SUBJECT TO COMMISSION APPROVAL.
13 (4) ANY EXISTING LIMITS, BY TARIFF OR OTHERWISE, ON THE
14 AMOUNT OF REVENUE THAT A LOCAL EXCHANGE TELECOMMUNICATIONS
15 COMPANY MAY RECOVER FROM THE CARRIER COMMON LINE RATE SHALL
16 CONTINUE AT THE EFFECTIVE DATE OF THIS CHAPTER. AT THE
17 CONCLUSION OF ANY PHASEDOWN PERIOD PROVIDED IN PARAGRAPH (1),
18 THE ANNUAL REVENUES TO BE DERIVED FROM CARRIER COMMON LINE
19 RATES SHALL BE NO MORE THAN THE TOTAL CARRIER COMMON LINE
20 REVENUES APPLICABLE TO THE FINAL 12 MONTHS OF ANY PHASEDOWN
21 PERIOD.
22 § 3008. INTEREXCHANGE TELECOMMUNICATION CARRIER.
23 (A) COMPETITIVE AND NONCOMPETITIVE SERVICES.--
24 TELECOMMUNICATIONS SERVICES PROVIDED BY INTEREXCHANGE
25 TELECOMMUNICATIONS CARRIERS SHALL BE DEEMED TO BE COMPETITIVE
26 SERVICES AFTER JANUARY 1, 1994, EXCEPT FOR THE PROVISION OF THE
27 FOLLOWING INTEREXCHANGE SERVICES WHICH WILL BE DEEMED TO BE
28 NONCOMPETITIVE SERVICES UNLESS DETERMINED OTHERWISE BY THE
29 COMMISSION.
30 (1) INTEREXCHANGE SERVICE TO AGGREGATOR TELEPHONES.
19930H0004B1907 - 36 -
1 (2) OPTIONAL CALLING PLANS REQUIRED BY THE COMMISSION TO
2 BE OFFERED WHEN JUSTIFIED BY USAGE OVER AN INTEREXCHANGE
3 ROUTE.
4 (B) RATE REGULATIONS.--THE COMMISSION SHALL NOT FIX OR
5 PRESCRIBE THE RATES, TOLLS, CHARGES, RATE STRUCTURES, RATE BASE,
6 RATE OF RETURN, OPERATING MARGIN OR EARNINGS FOR INTEREXCHANGE
7 COMPETITIVE SERVICES OR OTHERWISE REGULATE INTEREXCHANGE
8 COMPETITIVE SERVICES EXCEPT AS SET FORTH IN THIS CHAPTER. THE
9 COMMISSION MAY REQUIRE THAT THE INTEREXCHANGE TELECOMMUNICATIONS
10 CARRIERS FILE AND MAINTAIN TARIFFS OR PRICE LISTS FOR
11 COMPETITIVE TELECOMMUNICATIONS SERVICES. NOTHING IN THIS CHAPTER
12 SHALL LIMIT THE AUTHORITY OF THE COMMISSION TO REGULATE THE
13 PRIVACY OF INTEREXCHANGE SERVICE AND THE ORDERING, INSTALLATION,
14 RESTORATION AND DISCONNECTION OF INTEREXCHANGE SERVICE TO
15 CUSTOMERS.
16 (C) RECLASSIFICATION.--THE COMMISSION SHALL HAVE THE
17 AUTHORITY TO RECLASSIFY TELECOMMUNICATIONS SERVICES PROVIDED BY
18 AN INTEREXCHANGE TELECOMMUNICATIONS CARRIER AS NONCOMPETITIVE
19 IF, AFTER NOTICE AND HEARING, IT DETERMINES, UPON APPLICATION OF
20 THE CRITERIA SET FORTH IN THIS CHAPTER, THAT SUFFICIENT
21 COMPETITION IS NO LONGER PRESENT.
22 (D) SERVICE QUALITY STANDARDS.--THE COMMISSION MAY ESTABLISH
23 SERVICE QUALITY STANDARDS FOR INTEREXCHANGE TELECOMMUNICATIONS
24 CARRIERS. NOTHING IN THIS CHAPTER SHALL LIMIT THE AUTHORITY OF
25 THE COMMISSION TO PROMULGATE SERVICE QUALITY STANDARDS FOR
26 INTEREXCHANGE TELECOMMUNICATIONS CARRIERS OR TO RESOLVE
27 COMPLAINTS REGARDING THE QUALITY OF INTEREXCHANGE
28 TELECOMMUNICATIONS CARRIER SERVICE. NOTWITHSTANDING THE
29 CLASSIFICATION OF TELECOMMUNICATIONS SERVICES AS COMPETITIVE,
30 INTEREXCHANGE CARRIERS SHALL NOT BE PERMITTED TO DEAVERAGE
19930H0004B1907 - 37 -
1 STANDARD MESSAGE TOLL SERVICE RATES UNLESS AUTHORIZED TO DO SO
2 BY THE COMMISSION.
3 (E) AUTHORITY OF COMMISSION NOT LIMITED.--NOTHING IN THIS
4 CHAPTER SHALL LIMIT THE AUTHORITY OF THE COMMISSION TO DETERMINE
5 WHETHER AN INTEREXCHANGE TELECOMMUNICATIONS CARRIER SHOULD BE
6 EXTENDED THE PRIVILEGE OF OPERATING WITHIN THIS COMMONWEALTH OR
7 TO ORDER THE FILING OF SUCH REPORTS, DOCUMENTS AND INFORMATION
8 AS MAY BE NECESSARY TO MONITOR THE MARKET FOR AND
9 COMPETITIVENESS OF INTEREXCHANGE TELECOMMUNICATIONS SERVICES.
10 § 3009. ADDITIONAL POWERS AND DUTIES.
11 (A) GENERAL RULE.--AS LONG AS A LOCAL EXCHANGE
12 TELECOMMUNICATIONS COMPANY IS IN COMPLIANCE WITH SECTIONS 3003
13 (RELATING TO LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY REQUEST
14 FOR ALTERNATIVE REGULATION AND NETWORK MODERNIZATION
15 IMPLEMENTATION PLAN) AND 3004 (RELATING TO COMMISSION REVIEW AND
16 APPROVAL OF PETITION AND PLAN), THE COMMISSION, IF IT DEEMS
17 NECESSARY, SHALL HAVE THE AUTHORITY TO INCREASE RATES CHARGED BY
18 THE LOCAL EXCHANGE TELECOMMUNICATIONS COMPANY FOR NONCOMPETITIVE
19 SERVICES AS PROVIDED UNDER SECTION 3004(D)(2).
20 (B) POWERS AND DUTIES RETAINED.--THE COMMISSION SHALL RETAIN
21 THE FOLLOWING POWERS AND DUTIES RELATING TO THE REGULATION OF
22 ALL LOCAL EXCHANGE TELECOMMUNICATIONS COMPANIES AND
23 INTEREXCHANGE TELECOMMUNICATIONS CARRIERS:
24 (1) THE COMMISSION SHALL HAVE THE POWER TO AUDIT THE
25 ACCOUNTING AND REPORTING SYSTEMS OF LOCAL EXCHANGE
26 TELECOMMUNICATIONS COMPANIES AND THEIR AFFILIATES AND THEIR
27 TRANSACTIONS IN ACCORDANCE WITH THIS TITLE AND THE
28 COMMISSION'S PRESENT OR FUTURE RULES AND REGULATIONS TO
29 PROVIDE A PROPER ALLOCATION OF INVESTMENTS, COSTS OR EXPENSES
30 FOR ALL TELECOMMUNICATIONS SERVICES, COMPETITIVE AND
19930H0004B1907 - 38 -
1 NONCOMPETITIVE.
2 (2) NOTHING IN THIS CHAPTER SHALL LIMIT THE AUTHORITY OF
3 THE COMMISSION TO ENSURE THAT LOCAL EXCHANGE
4 TELECOMMUNICATIONS COMPANIES DO NOT MAKE OR IMPOSE UNJUST
5 PREFERENCES, DISCRIMINATIONS OR CLASSIFICATIONS FOR PROTECTED
6 TELEPHONE SERVICE AND OTHER NONCOMPETITIVE SERVICES.
7 (3) THE COMMISSION SHALL ESTABLISH SUCH ADDITIONAL
8 REQUIREMENTS AND REGULATIONS AS IT DETERMINES TO BE NECESSARY
9 TO ENSURE THE PROTECTION OF CONSUMERS.
10 (4) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
11 CHAPTER, ALL SERVICES PROVIDED BY A LOCAL EXCHANGE
12 TELECOMMUNICATIONS COMPANY OR INTEREXCHANGE
13 TELECOMMUNICATIONS CARRIER SHALL REMAIN SUBJECT TO ALL
14 PROVISIONS OF THIS TITLE AND OTHER LAWS OF THIS COMMONWEALTH
15 REGARDING THE SAFETY, ADEQUACY, RELIABILITY AND PRIVACY OF
16 TELECOMMUNICATIONS SERVICES. NOTHING IN THIS CHAPTER SHALL
17 AFFECT THE COMMISSION'S AUTHORITY TO REGULATE WITH RESPECT TO
18 THE ORDERING, INSTALLATION, SUSPENSION, TERMINATION AND
19 RESTORATION OF ANY SERVICE.
20 (C) RULES AND REGULATIONS.--THE COMMISSION MAY PROMULGATE
21 RULES AND REGULATIONS TO ADMINISTER AND ENFORCE THIS CHAPTER.
22 (D) REPORT.--NOT LATER THAN TWO YEARS FOLLOWING THE
23 EFFECTIVE DATE OF THIS CHAPTER, THE COMMISSION SHALL SUBMIT A
24 REPORT TO THE GOVERNOR AND THE GENERAL ASSEMBLY REVIEWING THE
25 IMPLEMENTATION OF THE PROVISIONS OF THIS CHAPTER. THE REPORT
26 WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, AN EVALUATION OF ANY
27 ALTERNATIVE OR STREAMLINED FORM OF REGULATION APPROVED BY THE
28 COMMISSION, THE PROGRESS OF LOCAL EXCHANGE TELECOMMUNICATIONS
29 COMPANIES IN IMPLEMENTING THEIR NETWORK MODERNIZATION
30 IMPLEMENTATION PLANS, AND THE SUCCESS OF THE DEREGULATION OF
19930H0004B1907 - 39 -
1 COMPETITIVE SERVICES PERMITTED BY THIS CHAPTER. IN ITS
2 RECOMMENDATIONS, THE COMMISSION MAY ALSO PROPOSE ANY LEGISLATIVE
3 OR OTHER CHANGES, WHICH IT DEEMS APPROPRIATE, TO THE GOVERNOR
4 AND THE GENERAL ASSEMBLY.
5 (E) METHOD FOR FIXING RATES.--THE COMMISSION SHALL NOT FIX
6 OR PRESCRIBE THE RATES, TOLLS, CHARGES, RATE STRUCTURES, RATE
7 BASE, RATE OF RETURN OR EARNINGS OF COMPETITIVE SERVICES OR
8 OTHERWISE REGULATE COMPETITIVE SERVICES EXCEPT AS SET FORTH IN
9 THIS CHAPTER. THE COMMISSION MAY REQUIRE THAT THE LOCAL EXCHANGE
10 TELECOMMUNICATIONS COMPANY FILE AND MAINTAIN TARIFFS OR PRICE
11 LISTS FOR COMPETITIVE TELECOMMUNICATIONS SERVICES.
12 SECTION 2. THE PROVISIONS OF THIS ACT ARE SEVERABLE. IF ANY
13 PROVISION OF THIS ACT OR ITS APPLICATION TO ANY PERSON OR
14 CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT
15 OTHER PROVISIONS OR APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN
16 EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION.
17 SECTION 3. THIS ACT SHALL EXPIRE ON DECEMBER 31, 2003,
18 UNLESS SOONER REENACTED BY THE GENERAL ASSEMBLY.
19 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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