PRINTER'S NO. 1270
No. 961 Session of 2003
INTRODUCED BY CONTI, A. WILLIAMS, ERICKSON, THOMPSON, WENGER,
GREENLEAF, BOSCOLA AND PUNT, NOVEMBER 12, 2003
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
NOVEMBER 12, 2003
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, further providing for residential
3 telephone service rates based on duration or distance of call
4 and for local exchange service increases and limitations; and
5 adding and repealing provisions relating to alternative form
6 of regulation of telecommunication services.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Sections 1325, 3001, 3002, 3003, 3004, 3005,
10 3006, 3007, 3008 and 3009 of Title 66 of the Pennsylvania
11 Consolidated Statutes are repealed.
12 Section 2. Title 66 is amended by adding sections to read:
13 § 3010. (Reserved).
14 § 3011. Declaration of policy.
15 The General Assembly finds and declares that it is the policy
16 of this Commonwealth to:
17 (1) Strike a balance between mandated deployment and
18 market-driven deployment of broadband facilities and advanced
19 services throughout this Commonwealth and to continue
1 alternative regulation of local exchange telecommunications
2 companies.
3 (2) Maintain universal telecommunications service at
4 affordable rates, while encouraging the accelerated provision
5 of advanced services and deployment of a universally
6 available, state-of-the-art, interactive broadband
7 telecommunications network in rural, suburban and urban
8 areas, including deployment of broadband facilities in or
9 adjacent to public rights-of-way abutting public schools,
10 including the administrative offices supporting public
11 schools, industrial parks and health care facilities.
12 (3) Ensure that customers pay only reasonable charges
13 for protected services, which shall be available on a
14 nondiscriminatory basis.
15 (4) Ensure that rates for protected services do not
16 subsidize the competitive ventures of telecommunications
17 carriers.
18 (5) Provide diversity in the supply of existing and
19 future telecommunications services and products in
20 telecommunications markets throughout this Commonwealth by
21 ensuring that rates, terms and conditions for protected
22 services are reasonable and do not impede the development of
23 competition.
24 (6) Ensure the efficient delivery of technological
25 advances and new services throughout this Commonwealth in
26 order to improve the quality of life for all Commonwealth
27 residents.
28 (7) Encourage the provision of telecommunications
29 products and services that enhance the quality of life of
30 people with disabilities.
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1 (8) Promote and encourage the provision of competitive
2 services by a variety of service providers on equal terms
3 throughout all geographic areas of this Commonwealth without
4 jeopardizing the provision of universal telecommunications
5 service at affordable rates.
6 (9) Encourage the competitive supply of any service in
7 any region where there is market demand.
8 (10) Encourage joint ventures between local exchange
9 telecommunications companies and other entities where such
10 joint ventures accelerate, improve or otherwise assist a
11 local exchange telecommunications company in carrying out its
12 network modernization implementation plan.
13 (11) Establish a bona fide retail request program to
14 aggregate and make advanced services available in areas where
15 sufficient market demand exists and to supplement existing
16 network modernization plans.
17 (12) Promote and encourage the provision of advanced
18 services and broadband deployment in the service territories
19 of local exchange telecommunications companies without
20 jeopardizing the provision of universal service.
21 (13) Recognize that the regulatory obligations imposed
22 upon the incumbent local exchange telecommunications
23 companies should be reduced to levels more consistent with
24 those imposed upon competing alternative service providers.
25 § 3012. 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 "Advanced service." A retail service that, regardless of
30 transmission medium or technology, is capable of supporting a
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1 minimum speed of 200 kilobits per second (kbps) in at least one
2 direction at the network demarcation point of the customer's
3 premises.
4 "Aggregator telephone." A telephone which is made available
5 to the transient public, customers or patrons, including, but
6 not limited to, coin telephones, credit card telephones and
7 telephones located in hotels, motels, hospitals and
8 universities.
9 "Alternative form of regulation." A form of regulation of
10 telecommunications services other than the traditional rate
11 base/rate of return regulation, including a streamlined form of
12 regulation, as approved by the commission.
13 "Alternative service provider." An entity that provides
14 telecommunications services in competition with a local exchange
15 telecommunications company.
16 "Bona fide retail request." A written request for service
17 which meets the requirements of section 3014(c)(1), (relating to
18 network modernization plans), is received by a local exchange
19 telecommunications company, and through which end users commit
20 to subscribing to an advanced service.
21 "Bona fide retail request program." A program established by
22 a local exchange telecommunications company pursuant to section
23 3014(c) (relating to network modernization plans).
24 "Broadband." A communication channel using any technology
25 and having a bandwidth equal to or greater than 1.544 megabits
26 per second in at least one direction.
27 "Broadband availability." Access to broadband service by a
28 retail telephone customer of a local exchange telecommunications
29 company.
30 "Central office." A building containing one or more local
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1 exchange telecommunications company switches used to provide
2 local exchange telecommunications service.
3 "Community." Those customers of a local exchange
4 telecommunications company served by an existing or planned
5 remote terminal or, where no remote terminal exists, a central
6 office switch.
7 "Competitive service." A service or business activity
8 declared to be competitive by the commission on or prior to
9 December 31, 2003, and a service or business activity declared
10 to be competitive pursuant to section 3016 (relating to
11 competitive services).
12 "Department." The Department of Community and Economic
13 Development of the Commonwealth.
14 "Gross Domestic Product Price Index" or "GDP-PI." The Gross
15 Domestic Product Fixed Weight Price Index as calculated by the
16 United States Department of Commerce.
17 "Health care facility." The term shall have the same meaning
18 given to it in the act of July 19, 1979 (P.L.130, No.48), known
19 as the Health Care Facilities Act.
20 "Inflation offset." The part of the price change formula in
21 the price stability mechanism that reflects an offset to the
22 Gross Domestic Product Price Index.
23 "Interexchange services." The transmission of interLATA or
24 intraLATA toll messages or data outside the local calling area.
25 "Interexchange telecommunications carrier." A carrier other
26 than a local exchange telecommunications company authorized by
27 the commission to provide interexchange services.
28 "Local exchange telecommunications company." An incumbent
29 carrier authorized by the commission to provide local exchange
30 telecommunications services. The term includes a rural
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1 telecommunications carrier and a nonrural telecommunications
2 carrier.
3 "Local exchange telecommunications service." The
4 transmission of messages or communications that originate and
5 terminate within a prescribed local calling area.
6 "Noncompetitive service." A regulated service that is not
7 declared competitive and, as to interexchange telecommunications
8 carriers, those services included in section 3018(a) (relating
9 to interexchange telecommunications carriers).
10 "Nonrural telecommunications carrier." A local exchange
11 telecommunications company that is not a rural telephone company
12 as defined in section 3 of the Telecommunications Act of 1996
13 (Public Law 104-104, 110 Stat. 56).
14 "Optional calling plan." A discounted toll plan offered by
15 either a local exchange telecommunications company or an
16 interexchange telecommunications carrier.
17 "Price stability mechanism." A formula which may be included
18 in a commission-approved alternative form of regulation plan
19 that permits rates for noncompetitive services to be adjusted
20 upward or downward.
21 "Protected service." The following telecommunications
22 services provided by a local exchange telecommunications
23 company, unless the commission determines that such service is
24 competitive:
25 (1) Service provided to residential consumers
26 subscribing to up to four access lines only to the extent
27 that the service is necessary for completing any local
28 exchange call for which dial tone is necessary.
29 (2) Touch-tone service.
30 (3) Switched access service.
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1 (4) Special access service.
2 (5) Ordering, installation, restoration and
3 disconnection of the services specified in paragraphs (1)
4 through (4).
5 "Remote terminal." A structure located outside of a central
6 office which houses electronic equipment and which provides
7 transport for telecommunications services to and from a central
8 office switch.
9 "Rural telecommunications carrier." A local exchange
10 telecommunications company that is a rural telephone company as
11 defined in section 3 of the Telecommunications Act of 1996
12 (Public Law 104-104, 110 Stat. 56).
13 Small business." A business subscribing to up to four access
14 lines.
15 "Special access service." Service provided over dedicated,
16 nonswitched facilities by local exchange telecommunications
17 companies to interexchange carriers or other large volume users
18 which provide connection between an interexchange carrier or
19 private network and a customer's premises.
20 "Switched access service." A service which provides for the
21 use of common terminating, switching and trunking facilities of
22 a local exchange telecommunications company's public switched
23 network. The term includes, but is not limited to, the rates for
24 local switching, common and dedicated transport and the carrier
25 charge.
26 "Telecommunications Act of 1996." The Telecommunications Act
27 of 1996 (Public Law 104-104, 100 Stat. et seq.).
28 "Telecommunications carrier." An entity that provides
29 telecommunications services subject to the jurisdiction of the
30 commission.
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1 "Telecommunications service." The offering of the
2 transmission of messages or communications for a fee to the
3 public.
4 § 3013. Continuation of commission-approved alternative
5 regulation and network modernization plans.
6 (a) General rule.--An alternative form of regulation plan
7 and network modernization plan approved by the commission for a
8 local exchange telecommunications company as of December 31,
9 2003 shall remain valid and effective, except as may be amended
10 at the election of the local exchange telecommunications company
11 as authorized by this chapter. The commission shall allow a
12 previously approved plan to be amended to conform to any changes
13 made under this chapter, and shall not require any other changes
14 to the plan.
15 (b) Limitation on changes to plans.--Except for changes to
16 existing alternative form of regulation and network
17 modernization plans as authorized by this chapter, no change to
18 any alternative form of regulation or network modernization plan
19 may be made without the express agreement of both the commission
20 and the local exchange telecommunications company.
21 (c) Grandfather provision.--All services previously declared
22 competitive as of December 31, 2003, under a local exchange
23 telecommunications company's alternative form of regulation plan
24 shall remain competitive.
25 (d) Commission oversight.--The commission will continue to
26 exercise oversight of alternative form of regulation and network
27 modernization plans for local exchange telecommunications
28 companies as provided in this chapter.
29 § 3014. Network modernization plans.
30 (a) Continuation of approved plan.--A local exchange
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1 telecommunications company that does not elect an option under
2 subsection (b) shall remain subject to its network modernization
3 plan in effect as of December 31, 2003, without revision or
4 modification except by agreement under section 3013(b) (relating
5 to continuation of commission-approved alternative regulation
6 and network modernization plans) and as provided in this
7 section, through December 31, 2015.
8 (b) Options for amendment of network modernization plan.--
9 Local exchange telecommunications carriers shall have the
10 following options:
11 (1) (i) A rural telecommunications carrier that elects
12 to amend its network modernization plan pursuant to this
13 subsection shall remain subject to the carrier's network
14 modernization plan in effect as of December 31, 2003, as
15 amended pursuant to this subsection, through December 31,
16 2008. Prior to implementation of any election, the rural
17 telecommunications carrier shall comply with the
18 notification requirements of subsection (d).
19 (ii) The rural telecommunications carrier shall
20 commit:
21 (A) to accelerate broadband availability to 75%
22 of the total retail access lines in its distribution
23 network by December 31, 2008; and
24 (B) to offer a bona fide retail request program
25 pursuant to subsection (c) through December 31, 2015.
26 A rural telecommunications carrier with an existing
27 broadband availability commitment exceeding 75% of
28 the total retail access lines in its distribution
29 network on December 31, 2008, may either accelerate
30 such broadband availability or remain under its
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1 existing network modernization plan for broadband
2 deployment, provided however that under no
3 circumstances may the rural telecommunications
4 carrier reduce its existing commitment. Any rural
5 telecommunications carrier opting to commit to 100%
6 universal broadband availability by December 31,
7 2008, in its amended network modernization plan
8 pursuant to subsection (d) shall not be required to
9 offer a bona fide retail request program.
10 (2) (i) A local exchange telecommunications carrier
11 that elects to amend its network modernization plan
12 pursuant to this subsection shall remain subject to such
13 carrier's network modernization plan in effect as of
14 December 31, 2003, as amended pursuant to this
15 subsection. Prior to implementation of any election, the
16 nonrural telecommunications carrier shall comply with the
17 notification requirements of subsection (d).
18 (ii) The local exchange telecommunications carrier
19 shall commit:
20 (A) to accelerate broadband availability to 80%
21 of its total retail access lines in its distribution
22 network by December 31, 2010; and
23 (B) to offer a bona fide retail request program
24 pursuant to subsection (c) through December 31, 2015.
25 A local exchange telecommunications carrier with an existing
26 broadband availability commitment exceeding 80% of the total
27 retail access lines in its distribution network on December
28 31, 2010, may either accelerate such broadband availability
29 or remain under its existing network modernization plan for
30 broadband deployment, provided, however, that under no
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1 circumstances may such local exchange telecommunications
2 carrier reduce its existing commitment.
3 (3) A local exchange telecommunications company that
4 elects under paragraph (1) or (2) shall also commit to
5 universal broadband deployment in or adjacent to public
6 rights-of-way abutting all public schools, including the
7 administration offices supporting public schools, industrial
8 parks and health care facilities in its service territory on
9 or before December 31, 2004, except that a local exchange
10 telecommunications carrier serving more than ten exchanges in
11 this Commonwealth may elect to extend this commitment from
12 December 31, 2004, to December 31, 2005, for any exchange
13 with less than 4,000 access lines.
14 (4) A local exchange telecommunications company that
15 elects under paragraph (1) or (2) may amend its network
16 modernization plan to define "universal broadband
17 availability" as the provision of broadband capability within
18 ten business days of notice to the company of the request by
19 a bona fide customer. If a local exchange telecommunications
20 company does not elect under either paragraph (1) or (2),
21 then the provisioning interval shall remain and be within
22 five days after a request for broadband service is received,
23 as stated in the company's currently effective network
24 modernization plan.
25 (5) No local exchange telecommunications company that
26 makes an election under paragraph (1) or (2) may withdraw the
27 election once made, unless a waiver is obtained pursuant to
28 subsection (f).
29 (6) A rural telecommunications carrier making an
30 election pursuant to paragraph (1) or (2) and filing its
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1 amended network modernization plan with the commission
2 pursuant to subsection (d) shall be granted by the commission
3 a suspension of its section 251(c)(2), (3), (4), (5) and (6)
4 obligations under the Telecommunications Act of 1996. This
5 suspension of obligations shall expire on December 31, 2008,
6 unless the commission, following a hearing, determines that
7 the rural telecommunications carrier has failed to timely
8 meet its commitments pursuant to this paragraph and, in that
9 event, the suspension of obligations shall expire upon entry
10 of the commission order making such determination. Expiration
11 of the suspension of obligations shall not impact the rural
12 telephone company exemption of the rural telecommunications
13 carrier under section 251(f)(1) of the Telecommunications Act
14 of 1996.
15 (c) Bona fide retail request program.--A local exchange
16 telecommunications company that elects to amend its network
17 modernization plan pursuant to subsection (b)(1) or (2) shall
18 notify the commission no later than one year after the effective
19 date of its election that it is implementing a bona fide retail
20 request program which shall continue through December 31, 2015,
21 or such earlier date as the local telecommunications company
22 achieves universal broadband deployment throughout its service
23 territory. A bona fide retail request program shall consist of
24 the following:
25 (1) Persons or entities seeking advanced services
26 pursuant to a bona fide retail request program shall submit a
27 written request for such services to the local exchange
28 telecommunications company. The written request may be in the
29 form of a petition which includes the information required by
30 this paragraph or in the form of individual requests each of
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1 which includes the information required by this paragraph. If
2 individual requests are received, the local exchange
3 telecommunications company shall aggregate requests for the
4 same service and initiate appropriate action pursuant to this
5 subsection when the required number of requests have been
6 received. To be considered a bona fide retail request, the
7 written request must include:
8 (i) a request that a minimum of 50 retail access
9 lines be provided the same or comparable advanced service
10 within a community or a request that 25% of retail access
11 lines be provided the same or comparable advanced service
12 within a community, whichever is less;
13 (ii) the name, address, telephone number and
14 signature of each existing retail customer seeking the
15 advanced service, the advanced service being requested, a
16 commitment by each retail customer who signs the request
17 to subscribe to the requested advanced service for a
18 minimum of one year of the local exchange
19 telecommunications company's applicable rate of service;
20 and
21 (iii) the name, address and telephone number of a
22 designated contact person.
23 (2) In administering the bona fide retail request
24 program, the local exchange telecommunications company shall:
25 (i) establish a World Wide Web site and toll-free
26 number to address customer inquiries regarding the
27 program;
28 (ii) mail a request form to a customer upon request;
29 (iii) confirm its receipt of any completed request
30 in writing to the customer. Such confirmation shall
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1 identify the service requested, the applicable rate, the
2 expected contract term, the status of the request and a
3 term subscription agreement for execution; and
4 (iv) notify the customers in a community, within 45
5 days, of the expected implementation date once the
6 requisite number of requests has been received and the
7 expected date of the availability of service.
8 (3) When a bona fide retail request has been received
9 that meets the requirements of paragraph (1), the local
10 exchange telecommunications company shall provide the
11 requested advanced service or other reasonably comparable
12 service that meets the data speed of the requested service to
13 the community as soon as practicable, but no later than 365
14 days of the date the requirements of paragraph (1) have been
15 met or within the period approved by the commission under
16 paragraph (4) where:
17 (i) the local exchange telecommunications company
18 does not provide the requested advanced service to other
19 customers in its service territory;
20 (ii) there is no advanced service using any
21 technology available to the requesting customers that
22 offers data speeds reasonably comparable to that
23 requested; and
24 (iii) the community is situated outside the service
25 territory of the local exchange telecommunications
26 company.
27 (4) Where the total number of bona fide retail requests
28 received by any local exchange telecommunications company or
29 affiliated companies that meet the requirements of paragraphs
30 (1) and (3) exceed 40 in any 12-month period, or where there
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1 are more than 20 such requests that require property
2 acquisition, including acquiring rights-of-way, or new
3 construction in any 12-month period, the local exchange
4 telecommunications company or companies may provide a
5 verified certification to the commission that one or both of
6 the foregoing criteria are met. Upon receipt of such
7 certification, the commission, or the commission through its
8 designated staff, shall permit the local exchange
9 telecommunications company or companies to extend the time
10 for such deployments for a period of no more than 12 months,
11 or such additional time period as it finds to be just and
12 reasonable.
13 (5) With regard to requests submitted under this
14 subsection, a retail customer may challenge the action of a
15 local exchange telecommunications company pursuant to section
16 701 (relating to complaints).
17 (6) Local exchange telecommunications companies with
18 bona fide retail request programs shall provide semiannual
19 reports to the commission of the number of requests for
20 advanced services received during the reporting period and
21 the action taken on requests meeting the requirements of
22 subsection (c). Local exchange telecommunications companies,
23 within 30 days after initiating a bona fide retail request
24 program, shall also provide the commission with the form of
25 any advanced services term subscription agreements customers
26 will be required to execute in connection with receiving the
27 requested services.
28 (d) Notice and filing of amendments.--A local exchange
29 telecommunications company that elects to amend its network
30 modernization plan pursuant to subsection (b) shall notify the
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1 commission in writing of such election and, within 60 days
2 following such notification, file its amended network
3 modernization plan with the commission. Copies of the written
4 notice of election and of the amended network modernization plan
5 shall be served by the local exchange telecommunications company
6 on the Office of Consumer Advocate and the Office of Small
7 Business Advocate. Concurrent with the filing of the amended
8 plan with the commission, the local exchange telecommunications
9 company shall publish notice of such filing in a newspaper or
10 newspapers of general circulation in its service territory or by
11 bill message or insert. The amended network modernization plan
12 shall become effective upon filing with the commission.
13 (e) Network modernization plan report.--A local exchange
14 telecommunications company that files an amended network
15 modernization plan with the commission shall also file with the
16 commission a report on its provisioning of broadband
17 availability. The first report shall be filed no later than
18 April 30, 2004, and shall be based upon the 12 months ending
19 December 31, 2003. Thereafter, reports shall be filed biennially
20 no later than April 30. To the extent applicable to the local
21 exchange telecommunications company's amended network
22 modernization plan, reports shall be limited to:
23 (1) The status of broadband deployment in or adjacent to
24 public rights-of-way abutting all public schools, including
25 the administration offices supporting public schools,
26 industrial parks and health care facilities.
27 (2) The percentage of access lines capable of receiving
28 advanced services from the local exchange telecommunications
29 company.
30 (3) The percentage of access lines with broadband
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1 availability from the local exchange telecommunications
2 company.
3 (4) The number of written bona fide retail requests
4 received.
5 (5) A general description of any technologies or media
6 utilized by the local exchange telecommunications company to
7 offer or provide advanced services and broadband
8 availability.
9 No additional network reports or information shall be required
10 to be submitted to the commission by a local exchange
11 telecommunications company unless the commission, following a
12 hearing, determines that the report or information is essential
13 for determining the status of the company's broadband
14 availability commitment. If the commission requests any
15 additional network reports or information, a local exchange
16 telecommunications company may oppose the submission on the
17 grounds that the report or information will be detrimental to
18 the security of its network or will exceed the attendant expense
19 or administrative time requirements associated with the report
20 or information. Under no circumstances shall the commission
21 compel the public release of maps or other information
22 describing the actual location of a local exchange
23 communications company's facilities.
24 (f) Waiver.--
25 (1) The commission shall grant a full or partial waiver
26 of the requirements of the then effective network
27 modernization plan of any local exchange telecommunications
28 company upon receipt of a verified petition from the local
29 exchange telecommunications company which meets the
30 requirements of this subsection.
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1 (2) Within 60 days of the date of filing, the commission
2 shall grant a waiver petition to the extent that and for such
3 duration as the commission determines is necessary to avoid:
4 (i) a significant adverse economic impact on the
5 users of the local exchange telecommunications company's
6 protected services;
7 (ii) imposing on the local exchange
8 telecommunications company a requirement that is unduly
9 burdensome economically;
10 (iii) imposing a requirement on the local exchange
11 telecommunications company that is not technically
12 feasible;
13 (iv) imposing a requirement on the local exchange
14 telecommunications company that is otherwise impractical
15 to implement in the specific exchange or exchanges or to
16 the affected customer or group of customers; or
17 (v) imposing a requirement that is adverse to
18 universal service within the service territory of the
19 local exchange telecommunications company.
20 (3) A petition that is not acted on by the commission
21 within 60 days of the date of filing shall be deemed
22 approved.
23 (4) Prior to filing of a waiver petition with the
24 commission, a local exchange telecommunications company shall
25 notify all potentially affected customers in the specific
26 exchange or exchanges by:
27 (i) publication in a newspaper of general
28 circulation in the geographic area subject to the waiver
29 petition no more than seven calendar days prior to the
30 filing of the waiver petition; or
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1 (ii) written notice through a direct mailing or bill
2 insert sent to all potentially affected customers of the
3 local exchange telecommunications company.
4 The publication or written notice shall state the reasons for
5 the waiver petition, the anticipated effect of the waiver
6 petition on the customers and the process by which customers
7 may request a hearing before the commission on the waiver
8 petition.
9 (g) Assistance to political subdivisions.--In an effort to
10 assist political subdivisions with economic revitalization
11 projects, a local exchange telecommunications company shall
12 commit, in its modified alternative form of regulation plan and
13 its network modernization plan, to make technical assistance for
14 such projects available to political subdivisions located in its
15 service territory in pursuing the deployment of additional
16 telecommunications infrastructure or services by the local
17 telecommunications company. A political subdivision or any
18 entity established by a political subdivision, including a
19 municipal authority, may not provide any telecommunications
20 services to the public for compensation within the service
21 territory of a local exchange telecommunications company
22 operating under a network modernization plan.
23 (h) Advanced Services Education and Aggregation Fund.--The
24 commission shall establish and administer, under regulations to
25 be promulgated by the commission, an Advanced Services Education
26 and Aggregation Fund. This fund shall be administered in a
27 separate, segregated, tax-exempt fund, and shall be funded
28 exclusively by the mechanism set forth under section 3015(c)
29 (relating to alternative forms of regulation). The commission
30 shall authorize expenditures from the fund for two purposes:
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1 (1) Educational outreach programs for political
2 subdivisions, economic development entities, public schools,
3 health care facilities and businesses and for residential
4 customers concerning the benefits, use and procurement of
5 advanced services and broadband telecommunications services
6 from local exchange telecommunications companies.
7 (2) Seed grants to aggregate customer demand for
8 advanced services or broadband in communities without these
9 services and to permit customers in these communities to
10 request the services under a local exchange
11 telecommunications company bona fide retail request program.
12 The fund shall continue until December 31, 2015, at which time
13 the commission shall terminate the fund and return the remaining
14 funds on a pro rata basis to the local exchange
15 telecommunications companies that contributed to the fund.
16 (i) Balanced deployment.--A local exchange
17 telecommunications company shall reasonably balance deployment
18 of its broadband network among rural, urban and suburban areas
19 within its service territory, as those areas are applicable,
20 according to its approved network modernization plan.
21 (j) Impact of competition.--Notwithstanding any provision of
22 this section or any network modernization plan to the contrary,
23 if one or more alternative service providers have made advanced
24 services or broadband available at reasonably comparable data
25 speeds to at least 50% of the customers in a particular exchange
26 served by a rural telecommunications carrier, the rural
27 telecommunications carrier may petition the commission to be
28 relieved of the requirement to meet any commitments for advanced
29 services or broadband availability in that exchange. The
30 commission shall grant the petition upon a showing that one or
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1 more alternative service providers are offering advanced
2 services or broadband at reasonably comparable data speeds to
3 50% or more of the customers within the exchange.
4 (k) Construction.--Nothing in this section shall be
5 construed:
6 (1) As giving the commission the authority to require a
7 local exchange telecommunications company to provide specific
8 services or to deploy a specific technology to retail
9 customers seeking broadband or advanced services.
10 (2) As prohibiting a local exchange telecommunications
11 company from participating in joint ventures with other
12 entities in meeting its advanced services and broadband
13 deployment commitments under its network modernization plan.
14 (l) Inventory of available services.--The department shall
15 compile, periodically update and publish, including at its World
16 Wide Web site, a listing of advanced and broadband services, by
17 location, available from all advanced and broadband service
18 providers operating in this Commonwealth irrespective of the
19 technology used. All providers of advanced and broadband
20 services shall cooperate with the department. The department
21 shall not require the release of maps or other information
22 describing the actual location of any provider's facilities.
23 § 3015. Alternative forms of regulation.
24 (a) Inflation offset.--A local exchange telecommunications
25 company with an alternative form of regulation containing a
26 price stability mechanism that files an amended network
27 modernization plan under section 3014(b)(1)or (2) (relating to
28 network modernization plans) shall not be subject to an
29 inflation offset in its price stability mechanism in adjusting
30 its rates for noncompetitive services. Through December 31,
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1 2015:
2 (1) In any year in which revenue-neutral rate changes
3 are ordered by the commission for a nonrural
4 telecommunications carrier, any increase in residential and
5 small business protected service rates under that carrier's
6 price stability mechanism in that year shall be offset
7 against any revenue-neutral rate increase for those services.
8 (2) A rural telecommunications carrier may not
9 separately propose, as part of a rate rebalancing filing, to
10 increase the rates for residential or small business local
11 exchange telecommunications service in the same calendar year
12 as rates for residential or small business local exchange
13 telecommunications service are increased under the annual
14 price stability index if the rate rebalancing proposal is not
15 submitted to the commission as part of the annual price
16 stability mechanism filing. Any cap contained in the rate
17 rebalancing section of a rural telecommunications carrier's
18 existing alternative form of regulation plan that restricts
19 the level of annual rate increases to a local exchange
20 telecommunications service shall also be applied to limit any
21 rate increase that occurs as a result of elimination of the
22 offset. These limitations shall not apply where rates are
23 changed as a result of a generic investigation and when the
24 rebalancing filing does not increase the weighted average
25 rates respectively of residential and small business local
26 exchange telecommunications service. In all other respects,
27 the price stability mechanism shall remain the same.
28 (b) Rate changes for rural telecommunications carriers.--
29 (1) In addition to the rate change provisions in its
30 alternative form of regulation plan, a rural
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1 telecommunications carrier operating without a price
2 stability mechanism that files with the commission an amended
3 network modernization plan under section 3014(b)(1) or (2)
4 shall be permitted at any time to file with the commission
5 proposed tariff changes, effective 45 days after filing,
6 setting forth miscellaneous changes, including increases and
7 decreases, in rates for noncompetitive services, excluding
8 basic residential and business rates, provided such rate
9 changes do not increase the rural telecommunications
10 carrier's annual intrastate revenues by more than 2%.
11 (2) The commission tariff filing requirements and review
12 associated with such proposed rate changes shall be limited
13 to schedules submitted by the rural telecommunications
14 carrier detailing the impact of the rate changes on the
15 carrier's annual intrastate revenues.
16 (3) A rural telecommunications carrier that implements
17 noncompetitive rate changes consistent with the procedure set
18 forth in its alternative form of regulation plan shall only
19 be required to file such financial and cost data with the
20 commission to justify such changes as are required under its
21 commission-approved alternative form of regulation plan.
22 (4) Notwithstanding the provisions of paragraph (1), (2)
23 or (3), for any rural telecommunications carrier serving less
24 than 50,000 access lines in this Commonwealth and operating
25 under an alternative form of regulation plan, a formal
26 complaint to deny rate changes for noncompetitive services,
27 unless signed by at least 20 customers of the rural
28 telecommunications carrier, shall not prevent implementation
29 of the rate changes pending the adjudication of the formal
30 complaint by the commission.
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1 (c) Payments to Advanced Services Education and Aggregation
2 Fund.--Any local exchange telecommunications company that files
3 an amended network modernization plan under section 3014(b)(1)
4 or (2) may be required by the commission to contribute up to,
5 but no more than, 10% of the first year's annual revenue effect:
6 (1) of any rate increases permitted by the elimination
7 of the offset under subsection (a); or
8 (2) if the local exchange telecommunications company is
9 operating without a price stability mechanism, of any rate
10 increases under subsection (b)(1), to the Advanced Services
11 Education and Aggregation Fund established under section
12 3014(h). Such contribution shall be payable in equal
13 quarterly installments, and shall be calculated on projected
14 increased revenues for the first year of the rate change.
15 Contributions shall also be made in connection with each
16 subsequent noncompetitive service rate increase until the
17 local exchange telecommunications company fulfills the higher
18 percentage deployment obligation set forth in its amended
19 network modernization plan. In no event shall the Advanced
20 Services Education and Aggregation Fund exceed $5,000,000
21 and, in the event of such overfunding, the commission shall
22 credit the overcollection to the next year's contribution
23 amount. If a local exchange telecommunications company is not
24 required to provide a bona fide retail request program, then
25 it shall not be required to contribute to the Advanced
26 Services Education and Aggregation Fund.
27 (d) General filing requirements.--For a local exchange
28 telecommunications company that files an amended network
29 modernization plan under section 3014(b)(1) or (2), the
30 commission's filing and audit requirements shall be limited to
20030S0961B1270 - 24 -
1 the following submissions by the company:
2 (1) Network modernization plan reports filed pursuant to
3 section 3014(e).
4 (2) An annual financial report consisting of a balance
5 sheet and income statement.
6 (3) An annual deaf, speech-impaired and hearing-impaired
7 relay information report.
8 (4) An annual service report.
9 (5) Universal service reports.
10 (6) An annual access line report.
11 (7) An annual statement of gross intrastate operating
12 revenues for purposes of calculating assessments for
13 regulatory expenses.
14 (8) An annual State tax adjustment computation for years
15 in which a tax change has occurred, if applicable.
16 (9) A bona fide retail request report under section
17 3014(c)(6).
18 (e) Other reports.-- Notwithstanding any other provision of
19 this title to the contrary, no report, statement, filing or
20 other document or information, except as specified in subsection
21 (d), shall be required of any local exchange telecommunications
22 company unless the commission, upon notice to the affected local
23 exchange telecommunications company and an opportunity to be
24 heard, has first made specific written findings supporting
25 conclusions in an entered order that:
26 (1) The report is necessary to ensure that the local
27 exchange telecommunications company is charging rates that
28 are in compliance with this chapter and its effective
29 alternative form of regulation plan.
30 (2) The benefits of the report substantially outweigh
20030S0961B1270 - 25 -
1 the attendant expense and administrative time and effort
2 required of the local exchange telecommunications company to
3 prepare it.
4 (f) Rate change limitations.--Nothing in this chapter shall
5 be construed to limit the requirement of section 1301 (relating
6 to rates to be just and reasonable) that rates shall be just and
7 reasonable. The annual rate change limitations set forth in a
8 local exchange telecommunications company's effective
9 commission-approved alternative form of regulation plan or any
10 other commission-approved annual rate change limitation shall
11 remain applicable.
12 (g) Small business customers.--Local exchange
13 telecommunications carriers operating under an alternative form
14 of regulation plan with small business customers defined as
15 "three lines or less" shall amend such definition to "four or
16 fewer lines."
17 (h) Conformance of plan.--Upon the filing by a local
18 exchange telecommunications company of network modernization
19 plan amendments pursuant to section 3014(d), the local exchange
20 telecommunications company's alternative form of regulation plan
21 shall be deemed amended consistent with this section.
22 § 3016. Competitive services.
23 (a) Declaration of services as competitive.--A service or
24 business activity provided by a local exchange
25 telecommunications company, including a protected service, not
26 previously declared by the commission as competitive may be
27 declared competitive by the commission under the following
28 provisions:
29 (1) The local exchange telecommunications company may
30 petition the commission for a determination of whether a
20030S0961B1270 - 26 -
1 service is competitive. The commission shall enter an order
2 approving or disapproving the petition within 60 days of the
3 filing date or 90 days where a protest is timely filed, or
4 the petition shall be deemed approved. In making the
5 determination, the commission shall consider all relevant
6 information submitted to it.
7 (2) Simultaneously with the filing by the local exchange
8 telecommunications company of a petition with the commission
9 for a declaration of a service as competitive, the local
10 exchange telecommunications company shall serve a copy of the
11 petition on the Office of Consumer Advocate and the Office of
12 Small Business Advocate and give notice to the public of the
13 filing of its petition in a newspaper or newspapers of
14 general circulation in the company's service territory.
15 (3) In a proceeding to declare a service competitive,
16 the commission shall consider the availability of like or
17 substitute services or other business activities in the
18 relevant geographic area.
19 (4) The burden of proving that a protected service is
20 competitive rests on the party seeking to have the service
21 declared competitive. Hearings shall not be required, unless
22 a protesting party has raised relevant and material factual
23 issues.
24 (b) Optional declaration of nonprotected services as
25 competitive.--Notwithstanding the provisions of subsection (a),
26 a local exchange telecommunications company that has filed an
27 amended network modernization plan pursuant to section
28 3014(b)(1) or (2) (relating to network modernization plans), at
29 its option, may declare services which are not protected as
30 competitive by filing notice of its election of this option with
20030S0961B1270 - 27 -
1 the commission.
2 (c) Rural exchange specific pricing.--
3 (1) When an alternative service provider is providing
4 local exchange telecommunications services within an exchange
5 of a rural telecommunications carrier that has filed an
6 amended network modernization plan under section 3014(b)(1)
7 or (2), the rural telecommunications carrier may petition the
8 commission for approval to begin pricing its services in the
9 exchange at its discretion.
10 (2) The commission, following public notice, shall
11 approve the petition within 60 days if shown by the rural
12 telecommunications carrier that the alternative service
13 provider is providing local exchange telecommunications
14 services in the exchange.
15 (3) Any party with standing shall have the right to
16 challenge the lawfulness of any petition filed or of any rate
17 change pursuant to section 701 (relating to complaints).
18 (4) Following approval of a petition, the rural
19 telecommunications carrier shall tariff any changes in
20 noncompetitive rates effective one day after filing.
21 (5) The rural telecommunications carrier shall give
22 notice to all customers impacted by any rate increases in the
23 form of a bill insert, bill message, written notice or
24 newspaper notice at least ten days prior to the tariff
25 filing.
26 (d) Reclassification.--The commission shall have the
27 authority to reclassify a telecommunications service or other
28 service or business activity that it has previously found to be
29 competitive if, after notice and hearing, it determines, upon
30 application of the criteria set forth in this chapter, that
20030S0961B1270 - 28 -
1 sufficient competition is no longer present, that the local
2 exchange telecommunications company has engaged in unfair
3 competition with respect to the service or that the local
4 exchange telecommunications company has failed to provide
5 nondiscriminatory access in the provision of the service. If the
6 commission finds that a reclassification is necessary, the
7 commission must determine whether the rate for the
8 telecommunications service or other service or business activity
9 is just and reasonable in accordance with section 1301 (relating
10 to rates to be just and reasonable). If the telecommunications
11 service or other service or business activity subsequently
12 becomes competitive, the local exchange telecommunications
13 company shall petition the commission to make a determination of
14 competitiveness for the service under the provisions of this
15 chapter. The burden of proving that a competitive service should
16 be declared noncompetitive rests on the party seeking to have
17 the service declared noncompetitive.
18 (e) Additional requirements.--
19 (1) The prices which a local exchange telecommunications
20 company charges for competitive services shall not be less
21 than the costs to provide the services.
22 (2) Tariffs for competitive service offerings are not
23 required to be filed with the commission. However, a local
24 exchange telecommunications company, at its option, may
25 tariff its rates, rules and regulations applicable to the
26 provision of competitive services. The commission may require
27 a local exchange telecommunications company to maintain price
28 lists with the commission applicable to its competitive
29 services.
30 (f) Pricing flexibility and bundling.--
20030S0961B1270 - 29 -
1 (1) Subject to the requirements of subsection (e)(1), a
2 local exchange telecommunications company may price
3 competitive services at the company's discretion.
4 (2) A local exchange telecommunications company may
5 offer and bill to customers on one bill bundled packages of
6 services which include nontariffed, competitive,
7 noncompetitive or protected services, including services of
8 an affiliate, in combinations and at a single price selected
9 by the company.
10 (3) If a customer subscribes to a bundled package of
11 services which include nontariffed, competitive,
12 noncompetitive or protected services as provided in paragraph
13 (2) and does not make payment on a billing due date, the
14 local exchange telecommunications company may first suspend
15 all of the customer's services subscribed to in the bundled
16 package following written notice to the customer of such
17 suspension at least seven days prior to the suspension and
18 thereafter may terminate all the customer's bundled package
19 services following written notice to the customer of such
20 termination at least ten days prior to the termination.
21 (g) Prohibitions.--
22 (1) A local exchange telecommunications company shall be
23 prohibited from using revenues earned or expenses incurred in
24 conjunction with protected services to subsidize competitive
25 services.
26 (2) Paragraph (1) shall not be construed to prevent the
27 marketing and billing of noncompetitive and competitive
28 services as packages to customers.
29 § 3017. Access charges.
30 (a) General rule.--The commission may not require a local
20030S0961B1270 - 30 -
1 exchange telecommunications company to reduce access rates
2 except on a revenue-neutral basis, provided, however, that
3 commission-ordered decreases in access rates for a nonrural
4 telecommunications carrier shall result only upon petition of
5 the carrier.
6 (b) Refusal to pay access charges prohibited.--No person or
7 entity may refuse to pay tariffed access charges for
8 interexchange services provided by a local exchange
9 telecommunications company.
10 (c) Limitation.--No telecommunications carrier providing
11 competitive local exchange telecommunications service may charge
12 access rates higher than those charged by the incumbent local
13 exchange telecommunications company in the same service
14 territory, unless such carrier can demonstrate, by substantial
15 evidence, that the higher access rates are cost justified.
16 § 3018. Interexchange telecommunications carriers.
17 (a) Competitive and noncompetitive services.--Interexchange
18 services provided by interexchange telecommunications carriers
19 shall continue to be competitive services after December 31,
20 2003, except for the provision of the following interexchange
21 services which shall be noncompetitive services unless declared
22 otherwise by the commission pursuant to section 3016 (relating
23 to competitive services):
24 (1) Interexchange service to aggregator telephones.
25 (2) Optional calling plans required by the commission to
26 be offered when justified by usage over an interexchange
27 route.
28 (b) Rate regulation.--
29 (1) The commission may not fix or prescribe the rates,
30 tolls, charges, rate structures, rate base, rate of return,
20030S0961B1270 - 31 -
1 operating margin or earnings for interexchange competitive
2 services or otherwise regulate interexchange competitive
3 services except as set forth in this chapter.
4 (2) An interexchange telecommunications carrier may file
5 and maintain tariffs or price lists with the commission for
6 competitive telecommunications services.
7 (3) Nothing in this chapter shall be construed to limit
8 the authority of the commission to regulate the privacy of
9 interexchange service and the ordering, installation,
10 restoration and disconnection of interexchange service to
11 customers.
12 (c) Reclassification.--The commission may reclassify
13 telecommunications services provided by an interexchange
14 telecommunications carrier as noncompetitive if, after notice
15 and hearing, it determines, upon application of the criteria set
16 forth in this chapter, that sufficient competition is no longer
17 present.
18 (d) Construction.--Nothing in this chapter shall be
19 construed:
20 (1) To limit the authority of the commission to resolve
21 complaints regarding the quality of interexchange
22 telecommunications carrier service.
23 (2) To limit the authority of the commission to
24 determine whether an interexchange telecommunications carrier
25 should be extended the privilege of operating within this
26 Commonwealth or to order the filing of such reports,
27 documents and information as may be necessary to monitor the
28 market for and competitiveness of interexchange
29 telecommunications services.
30 § 3019. Additional powers and duties.
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1 (a) General rule.--The commission may certify more than one
2 telecommunications carrier to provide local exchange
3 telecommunications service in a specific geographic location.
4 The certification shall be granted upon a showing that it is in
5 the public interest and that the applicant possesses sufficient
6 technical, financial and managerial resources.
7 (b) Powers and duties retained.--The commission shall retain
8 the following powers and duties relating to the regulation of
9 all telecommunications carriers and interexchange
10 telecommunications carriers:
11 (1) To audit the accounting and reporting systems of
12 telecommunications carriers relating to their transactions
13 with affiliates pursuant to Chapter 21 (relating to relations
14 with affiliated interests). A telecommunications carrier
15 shall file affiliated interest and affiliated transaction
16 agreements, unless such agreements involve services declared
17 to be competitive. The filings shall constitute notice to the
18 commission only and shall not require approval by the
19 commission.
20 (2) Notwithstanding any other provisions of this
21 chapter, all services provided by a telecommunications
22 carrier shall remain subject to all provisions of this title
23 and other laws of this Commonwealth regarding the safety,
24 adequacy, reliability and privacy of telecommunications
25 services or other services or business activities. All new
26 services or changes to existing noncompetitive services must
27 be reviewed by the commission prior to their being offered to
28 the public to ensure compliance with all applicable
29 provisions regarding safety, adequacy, reliability and
30 privacy of telecommunications services. The commission shall
20030S0961B1270 - 33 -
1 have the authority to reject or modify any such service to
2 the extent the commission finds, after notice and opportunity
3 for hearing, that the service is not in compliance with any
4 such provision. Nothing in this chapter shall affect the
5 commission's authority to regulate with respect to the
6 ordering, installation, suspension, termination and
7 restoration of any service, except as may be expressly set
8 forth in this chapter.
9 (3) Subject to the provisions of section 3015(d)
10 (relating to alternative forms of regulation), to establish
11 such additional requirements as are consistent with this
12 chapter as the commission determines to be necessary to
13 ensure the protection of customers.
14 (c) Privacy of customer information.--
15 (1) Except as otherwise provided in this subsection, a
16 telecommunications carrier may not disclose to any person
17 information relating to any customer's patterns of use,
18 equipment and network information and any accumulated records
19 about customers.
20 (2) A telecommunications carrier may disclose such
21 information:
22 (i) Pursuant to a court order or where otherwise
23 required by law.
24 (ii) To the carrier's affiliates, agents,
25 contractors or vendors and other telecommunications
26 carriers or interexchange telecommunications carriers, as
27 permitted by law.
28 (iii) Where the information consists of aggregate
29 data which does not identify individual customers.
30 (d) Unreasonable preferences.--Nothing in this chapter shall
20030S0961B1270 - 34 -
1 limit the authority of the commission to ensure that local
2 exchange telecommunications companies do not make or impose
3 unjust preferences, discriminations or classifications for
4 protected services and other noncompetitive services.
5 (e) Method for fixing rates.--The commission may not fix or
6 prescribe the rates, tolls, charges, rate structures, rate base,
7 rate of return or earnings of competitive services or otherwise
8 regulate competitive services except as set forth in this
9 chapter.
10 (f) Implementation.--The terms of a local exchange
11 telecommunications company's alternative form of regulation and
12 network modernization plans shall govern the regulation of the
13 local exchange telecommunications company and, consistent with
14 the provisions of this chapter, shall supersede any conflicting
15 provisions of this title or other laws of this Commonwealth and
16 shall specifically supersede all provisions of Chapter 13
17 (relating to rates and rate making) other than sections 1301
18 (relating to rates to be just and reasonable), 1302 (relating to
19 tariffs; filing and inspection), 1303 (relating to adherence to
20 tariffs), 1304 (relating to discrimination in rates), 1305
21 (relating to advance payment of rates; interest on deposits),
22 1309 (relating to rates fixed on complaint; investigation of
23 costs of production) and 1312 (relating to refunds).
24 § 3020. Expiration of chapter.
25 This chapter shall expire on December 31, 2015, unless sooner
26 reenacted by the General Assembly; provided, however, that a
27 local exchange telecommunications company's alternative form of
28 regulation in effect at that time shall continue.
29 Section 3. The provisions of this act are severable. If any
30 provision of this act or its application to any person or
20030S0961B1270 - 35 -
1 circumstance is held invalid, the invalidity shall not affect
2 other provisions or applications of this act which can be given
3 effect without the invalid provision or application.
4 Section 4. Section 2471 of the act of February 1, 1966 (1965
5 P.L.1656, No.581), known as The Borough Code, is repealed to the
6 extent it is inconsistent with this act.
7 Section 5. This act shall take effect January 1, 2004, or
8 immediately, whichever occurs later.
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