Amended IN Senate April 30, 2019 Amended IN Senate March 28, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 603Introduced by Senator Borgeas(Coauthors: Senators Caballero, Grove, Hueso, Moorlach, and Nielsen)(Coauthors: Assembly Members Fong, Gallagher, Mathis, Obernolte, and Patterson)February 22, 2019 An act to add Section 275.7 to the Public Utilities Code, relating to telecommunications. LEGISLATIVE COUNSEL'S DIGESTSB 603, as amended, Borgeas. Small independent telephone corporations: rates.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A program, until January 1, 2023, to provide universal service rate support to small independent telephone corporations, as defined, in furtherance of the states universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.This bill would authorize a small independent telephone corporation to initiate a rate case through either an advice letter or application. If a rate case is initiated by an advice letter, the bill would require that the case be processed according to the commissions rules governing advice letters, be completed within 10 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the advice letter submission take effect be implemented within 12 months of its the advice letters submission. If a rate case is initiated by application, the bill would require that the case be processed according to the commissions rules governing formal proceedings, be completed within 12 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the application submission take effect be implemented within 14 months of its the applications submission. The bill would require the commission to authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case and to determine the reasonableness of rate case expenses without regard to the telephone corporations other expenses.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 275.7 is added to the Public Utilities Code, to read:275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.
Amended IN Senate April 30, 2019 Amended IN Senate March 28, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 603Introduced by Senator Borgeas(Coauthors: Senators Caballero, Grove, Hueso, Moorlach, and Nielsen)(Coauthors: Assembly Members Fong, Gallagher, Mathis, Obernolte, and Patterson)February 22, 2019 An act to add Section 275.7 to the Public Utilities Code, relating to telecommunications. LEGISLATIVE COUNSEL'S DIGESTSB 603, as amended, Borgeas. Small independent telephone corporations: rates.Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A program, until January 1, 2023, to provide universal service rate support to small independent telephone corporations, as defined, in furtherance of the states universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.This bill would authorize a small independent telephone corporation to initiate a rate case through either an advice letter or application. If a rate case is initiated by an advice letter, the bill would require that the case be processed according to the commissions rules governing advice letters, be completed within 10 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the advice letter submission take effect be implemented within 12 months of its the advice letters submission. If a rate case is initiated by application, the bill would require that the case be processed according to the commissions rules governing formal proceedings, be completed within 12 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the application submission take effect be implemented within 14 months of its the applications submission. The bill would require the commission to authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case and to determine the reasonableness of rate case expenses without regard to the telephone corporations other expenses.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Senate April 30, 2019 Amended IN Senate March 28, 2019
Amended IN Senate April 30, 2019
Amended IN Senate March 28, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Senate Bill No. 603
Introduced by Senator Borgeas(Coauthors: Senators Caballero, Grove, Hueso, Moorlach, and Nielsen)(Coauthors: Assembly Members Fong, Gallagher, Mathis, Obernolte, and Patterson)February 22, 2019
Introduced by Senator Borgeas(Coauthors: Senators Caballero, Grove, Hueso, Moorlach, and Nielsen)(Coauthors: Assembly Members Fong, Gallagher, Mathis, Obernolte, and Patterson)
February 22, 2019
An act to add Section 275.7 to the Public Utilities Code, relating to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 603, as amended, Borgeas. Small independent telephone corporations: rates.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A program, until January 1, 2023, to provide universal service rate support to small independent telephone corporations, as defined, in furtherance of the states universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.This bill would authorize a small independent telephone corporation to initiate a rate case through either an advice letter or application. If a rate case is initiated by an advice letter, the bill would require that the case be processed according to the commissions rules governing advice letters, be completed within 10 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the advice letter submission take effect be implemented within 12 months of its the advice letters submission. If a rate case is initiated by application, the bill would require that the case be processed according to the commissions rules governing formal proceedings, be completed within 12 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the application submission take effect be implemented within 14 months of its the applications submission. The bill would require the commission to authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case and to determine the reasonableness of rate case expenses without regard to the telephone corporations other expenses.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A program, until January 1, 2023, to provide universal service rate support to small independent telephone corporations, as defined, in furtherance of the states universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.
This bill would authorize a small independent telephone corporation to initiate a rate case through either an advice letter or application. If a rate case is initiated by an advice letter, the bill would require that the case be processed according to the commissions rules governing advice letters, be completed within 10 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the advice letter submission take effect be implemented within 12 months of its the advice letters submission. If a rate case is initiated by application, the bill would require that the case be processed according to the commissions rules governing formal proceedings, be completed within 12 months of its submission, and that any changes to the telephone corporations revenue requirements or rate design resulting from the commissions disposition of the application submission take effect be implemented within 14 months of its the applications submission. The bill would require the commission to authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case and to determine the reasonableness of rate case expenses without regard to the telephone corporations other expenses.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 275.7 is added to the Public Utilities Code, to read:275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 275.7 is added to the Public Utilities Code, to read:275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.
SECTION 1. Section 275.7 is added to the Public Utilities Code, to read:
### SECTION 1.
275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.
275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.
275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.
275.7. (a) For purposes of this section, small independent telephone corporations are rural incumbent local exchange carriers subject to commission regulation.
(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.
(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.
(2) A rate case submitted by an advice letter shall be processed according to the commissions rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commissions disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.
(3) A rate case submitted by application shall be processed according to the commissions rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commissions disposition of an application pursuant to this section within 14 months of the date the application was submitted.
(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporations other expenses.