General Assembly Raised Bill No. 1024
January Session, 2011 LCO No. 3513
*03513_______ET_*
Referred to Committee on Energy and Technology
Introduced by:
(ET)
General Assembly
Raised Bill No. 1024
January Session, 2011
LCO No. 3513
*03513_______ET_*
Referred to Committee on Energy and Technology
Introduced by:
(ET)
AN ACT MODERNIZING THE STATE'S TELECOMMUNICATIONS LAWS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 16-247f of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
(a) The department shall regulate the provision of telecommunications services in the state in a manner designed to foster competition and protect the public interest.
(b) Notwithstanding the provisions of section 16-19, the following telecommunications services shall be deemed competitive services: (1) A telecommunications service offered on or before July 1, 1994, by a certified telecommunications provider and a wide area telephone service, "800" service, centrex service or digital centrex service offered by a telephone company, (2) a telecommunications service offered to business customers by a telephone company, (3) a home office service offered by a telephone company, and (4) a telecommunications service provided by a telephone company to a residential customer who subscribes to two or more telephone company services, including basic local exchange service, any vertical feature or interstate toll provided by a telephone company affiliate. Unless reclassified pursuant to this section, any other service offered by a telephone company on or before July 1, 1994, shall be deemed a noncompetitive service, provided such initial classification shall not be a factual finding that such service is noncompetitive. [Notwithstanding subdivision (3) of subsection (c) of section 16-247b, prior to January 1, 2010, a telephone company shall not obtain a waiver from the department of the pricing standard set forth in subdivision (1) of subsection (c) of section 16-247b for any service reclassified as competitive pursuant to subdivision (2), (3) or (4) of this subsection.]
(c) On petition, on its own motion, or in conjunction with a tariff investigation conducted pursuant to subsection (f) of this section, after notice and hearing, and within ninety days of receipt of a petition or its motion or within the time period set forth in subsection (f) of this section, as applicable, the department may reclassify a telecommunications service as competitive, emerging competitive or noncompetitive, in accordance with the degree of competition which exists for that service in the marketplace, provided (1) a competitive service shall not be reclassified as an emerging competitive service and (2) the department may extend the period (A) before the end of the ninety-day period and upon notifying all parties to the proceedings by thirty days, or (B) in accordance with the provisions of subsection (f) of this section, as applicable.
(d) In determining whether to reclassify a telecommunications service, the department shall consider:
(1) The number, size and geographic distribution of certified telecommunications providers of the service, provided the department shall not reclassify any service as competitive if such service is available only from a telephone company or an affiliate of a telephone company that is a certified telecommunications provider;
(2) The availability of functionally equivalent services in the relevant geographic area at competitive rates, terms and conditions, including, but not limited to, services offered by certified telecommunications providers, providers of commercial mobile radio services, as defined in 47 CFR 20.3, voice over Internet protocol providers and other services provided by means of alternative technologies;
(3) The existence of barriers to entry into, or exit from, the relevant market;
(4) Other factors that may affect competition; and
(5) Other factors that may affect the public interest.
(e) [Each] On and after July 1, 2011, no certified telecommunications provider [and each] or telephone company shall file with the department a [new or amended] tariff [for each competitive or emerging competitive intrastate] with respect to any telecommunications service [authorized pursuant to section 16-247c. A tariff for a competitive service shall be effective on five days' written notice to the department. A tariff for an emerging competitive service shall be effective on twenty-one days' written notice to the department. A tariff filing for a competitive or emerging competitive service shall include (1) rates and charges which may consist of a maximum rate and a minimum rate, (2) applicable terms and conditions, (3) a statement of how the tariff will benefit the public interest, and (4) any additional information required by the department. A telephone company filing a tariff pursuant to this section shall include in said tariff filing the information set forth in subdivisions (1) to (4), inclusive, of this subsection, a complete explanation of how the company is complying with the provisions of section 16-247b and, in a tariff filing which declares a new service to be competitive or emerging competitive, a statement addressing the considerations set forth in subsection (d) of this section. If the department approves a tariff which consists of a minimum rate and a maximum rate, the certified telecommunications provider or telephone company may amend its rates upon five days' written notice to the department and any notice to customers which the department may require, provided the amended rates are not greater than the approved maximum rate and not less than the approved minimum rate. A promotional offering for a previously approved competitive or emerging competitive tariffed service or a service deemed competitive pursuant to this section shall be effective on three business days' written notice to the department] it offers. Each certified telecommunications provider and telephone company shall provide its customers with information regarding rates, terms and conditions for telecommunications services in a customer service guide or other manner as determined by such provider or company. Before July 1, 2011, each certified telecommunications company and telephone company shall withdraw any tariff currently on file with the department.
(f) On petition or its own motion, the department may investigate a tariff or any portion of a tariff, which investigation may include a hearing. The department may suspend a tariff or any portion of a tariff during such investigation. The investigation may include, but is not limited to, an inquiry to determine whether the tariff is predatory, deceptive, anticompetitive or violates the pricing standard set forth in subdivision (1) of subsection (c) of section 16-247b, as amended by this act. Not later than seventy-five days after the effective date of the tariff, unless the party filing the tariff, all statutory parties to the proceeding and the department agree to a specific extension of time, the department shall issue its decision, including whether to approve, modify or deny the tariff. If the department determines that a tariff filed as a new service is, in fact, a reclassification of an existing service, the department shall review the tariff filing as a petition for reclassification in accordance with the provisions of subsection (c) of this section.
(g) The provisions of this section shall not prohibit the department from ordering different tariff filing procedures or effective dates for an emerging competitive service, pursuant to a plan for an alternative form of regulation of a telephone company approved by the department in accordance with the provisions of section 16-247k.
Sec. 2. (NEW) (Effective July 1, 2011) The date and time of filing of each document with the Department of Public Utility Control shall be the date and time by which the department first receives a complete electronic or paper version of such document, provided such electronic or paper version is filed in accordance with section 16-1-14 of the regulations of Connecticut state agencies. If payment of a fee is required to accompany such document, the department shall not deem a document to be filed until the department receives the fee. If a document is electronically submitted outside of the department's normal business hours, the department shall deem the document to be filed at the time the department's offices next open. The department shall not require paper versions of electronic filings to be filed, except (1) at the request of the department, one paper copy shall be sent to the department via regular first class United States mail, and (2) at the request of any party or intervenor in a specific department docket who does not have computer access, the department may request one paper copy be sent to such party or intervenor via first class United States mail. The department shall amend section 16-1-14 of the regulations of Connecticut state agencies in accordance with chapter 54 of the general statutes to comply with the provisions of this section.
Sec. 3. Section 16-32 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
Each public service company, except telegraph companies and express companies subject to the jurisdiction of the Interstate Commerce Commission or its successor agency and telephone companies owned, directly or indirectly, by a parent company, the accounts and operations of which are required to be audited annually in accordance with federal law, shall have an annual comprehensive audit and report made of its accounts and operations by independent public accountants satisfactory to the Department of Public Utility Control. A copy of such annual audit report shall be filed with the department, together with the company's annual report. In the absence of such an audit report, or if the department, after notice and opportunity for a hearing, determines that such audit report is insufficient or unsatisfactory, the department shall cause such an audit to be made at the expense of the company either by independent public accountants satisfactory to the department or by any staff of the department engaged in the activities contemplated by subsection (b) of section 16-8. When requiring a state-specific audit from a telephone company otherwise exempt from the audit required pursuant to this section because its accounts and operations are required to be audited annually in accordance with federal law, the department shall specify its reasons for requiring the state-specific audit and why the requested additional audit will provide information different than the audit filed with the annual report. The department may waive the compliance with the provisions of this section by any public service company whose annual gross income is less than one hundred thousand dollars.
Sec. 4. Subsection (c) of section 16-247b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):
[(c) (1) The rate that a telephone company charges for a competitive or emerging competitive telecommunications service shall not be less than the sum of (A) the rate charged to another telecommunications company for a noncompetitive or emerging competitive local network service function used by that company to provide a competing telecommunications service, and (B) the applicable incremental costs of the telephone company.]
[(2)] (c) (1) On and after the date the department certifies a telephone company's operations support systems interface pursuant to section 16-247n, the department shall, upon petition, conduct a contested case proceeding to consider whether modification or removal of the pricing standard [set forth in subdivision (1) of this subsection for a telecommunications service deemed competitive pursuant to section 16-247f] is appropriate. Notwithstanding the provisions of subdivision (1) of this subsection, if the department determines that such a modification or removal is appropriate and is consistent with the goals set forth in section 16-247a, the department shall so modify or remove said pricing standard for such telecommunications service.
[(3)] (2) Prior to the date that the department certifies a telephone company's operations support systems interface pursuant to section 16-247n, the department may, upon petition, conduct a contested case proceeding to consider whether modification or removal of the pricing standard [set forth in subdivision (1) of this subsection for a telecommunications service deemed competitive pursuant to section 16-247f] is appropriate. Any petition filed pursuant to this subdivision shall specify the geographic area in which the applicant proposes to modify or remove such pricing standard. [Notwithstanding the provisions of subdivision (1) of this subsection, if] If the department determines that such modification or removal is appropriate, is consistent with the goals set forth in section 16-247a and facilities-based competition exists in the relevant geographic area, the department shall so modify or remove said pricing standard for such telecommunications service. In determining whether facilities-based competition exists in the relevant geographic area, the department shall consider:
(A) The number, size and geographic distribution of other providers of service;
(B) The availability of functionally equivalent services in the relevant geographic area at competitive rates, terms and conditions;
(C) The financial viability of each company providing functionally equivalent services in the relevant geographic market;
(D) The existence of barriers to entry into, or exit from, the relevant geographic market;
(E) Other indicators of market power that the department deems relevant, which may include, but not be limited to, market penetration and the extent to which the applicant can sustain the price for the service above the cost to the company of providing the service in the relevant geographic area;
(F) The extent to which other telecommunications companies must rely upon the noncompetitive services of the applicant to provide their telecommunications services and carrier access rates charged by the applicant;
(G) Other factors that may affect competition; and
(H) Other factors that may affect the public interest.
Sec. 5. Section 16-247m of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
[(a)] On and after July 1, [2001] 2011, a telephone company may [apply to the Department of Public Utility Control to] withdraw from the retail provision of a telecommunications service, [provided such telecommunications service has been deemed competitive pursuant to section 16-247f prior to the date such application is submitted] upon thirty days' notice to the Department of Public Utility Control. Any such [application] notice shall specify (1) the service that the telephone company no longer wishes to provide, and (2) the geographic area or areas in which the telephone company proposes to no longer provide the service. [, and (3) the number of customers of the telephone company that will be affected by the proposed withdrawal and a discussion of ways to mitigate such impact.]
[(b) In considering any application by a telephone company pursuant to subsection (a) of this section, the department shall consider (1) the impact the proposed withdrawal will have on the goals set forth in section 16-247a, (2) the impact the proposed withdrawal will have on the financial, managerial and technical ability of the telephone company to provide other retail and wholesale telecommunications services and the quality of such services, (3) the impact the proposed withdrawal will have on the rates paid by retail customers for the service that the telephone company no longer wishes to provide at retail, (4) the impact the proposed withdrawal will have on the retail availability of such service, and (5) the impact the proposed withdrawal will have on the ability of certified telecommunications providers to provide a functionally equivalent service at retail. The department shall not approve any such application for withdrawal unless it finds that such withdrawal (A) is consistent with the goals set forth in section 16-247a, and (B) is not contrary to the public interest. The department shall not approve any such application or authorize the withdrawal of a telephone company from the provision of a telecommunications service at retail unless the service that the telephone company no longer wishes to provide has been deemed competitive pursuant to section 16-247f. The department, in approving any such application, shall develop a method to allow customers receiving such service from the telephone company to choose a new provider of such service, provided the department shall not order the allocation or assignment of any customer.
(c) Any proceeding conducted pursuant to this section shall be considered a contested case, as defined in section 4-166.
(d) The provisions of this section shall not (1) preclude the withdrawal of a competitive or an emerging competitive tariff pursuant to section 16-247f, (2) preclude a telephone company from withdrawing a noncompetitive service in the normal course of business, or (3) apply to any certified telecommunications provider or any telephone company serving fewer than seventy-five thousand customers.]
This act shall take effect as follows and shall amend the following sections:
Section 1 from passage 16-247f
Sec. 2 July 1, 2011 New section
Sec. 3 October 1, 2011 16-32
Sec. 4 July 1, 2011 16-247b(c)
Sec. 5 from passage 16-247m
This act shall take effect as follows and shall amend the following sections:
Section 1
from passage
16-247f
Sec. 2
July 1, 2011
New section
Sec. 3
October 1, 2011
16-32
Sec. 4
July 1, 2011
16-247b(c)
Sec. 5
from passage
16-247m
Statement of Purpose:
To remove the requirements for telecommunication service providers and telephone companies to file certain tariffs with the Department of Public Utility Control, to clarify for telecommunications companies when a document is considered filed with the department, to eliminate a need for a paper version of a filing sent electronically, to clarify when audits are required, and to change the process for withdrawal by a telephone company of a retail telecommunications service.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]