Small independent telephone corporations: rates.
If enacted, AB 2189 would have significant implications for state telecommunications regulation. It provides a formal process for small telephone corporations to address their financial needs and request rate adjustments, potentially improving their financial viability. By allowing the commission to assess cases initiated through advice letters, the bill allows for expedited processing, ensuring these corporations can adapt to changing economic circumstances while still upholding regulatory standards. The requirement for any significant proposals to be re-sent as a formal application serves as a safeguard, though it may also mean that corporations will need to navigate additional procedural hurdles when their needs exceed predefined limits.
Assembly Bill 2189, introduced by Assembly Member Arambula, seeks to amend the California Public Utilities Code by adding Section 275.7. This section establishes a process for small independent telephone corporations, which are classified as rural incumbent local exchange carriers, to initiate a rate case. This allows these corporations to seek adjustments to their revenue requirements or rate designs through the submission of either an advice letter or an application. The bill aims to ensure that these companies can actively manage their rates in a manner that supports the state's commitment to providing affordable and reliable services in rural areas, especially with the impending sunset of the California High-Cost Fund-A program in 2023.
The sentiment surrounding AB 2189 has appeared to be generally positive, particularly among proponents who see it as a necessary vehicle for supporting smaller providers in competition against larger telecommunications entities. Supporters argue this bill will enhance service availability and affordability in underserved regions. However, there may also be some concerns regarding the regulatory burden this bill places on smaller corporations to accurately support their rate increase requests, and whether the commission will have the resources needed to process these requests promptly.
Key points of contention related to AB 2189 revolve around the procedural complexities it introduces, specifically in how rate cases initiated through advice letters can be transitioned into formal applications. Some critics may question whether the required procedural safeguards could delay necessary rate increases for small telephone companies facing financial strain. Additionally, the continuation of effective support from the California High-Cost Fund-A Program is also a matter of concern, as the bill is timed with its scheduled expiration, raising questions about the adequacy of support mechanisms for small independent telephone companies going forward.