71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2392
A-Engrossed
House Bill 2659
Ordered by the House June 6
Including House Amendments dated June 6
Sponsored by Representative HILL
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Provides that all telecommunications carriers be subject
to price cap regulation. Requires that telecommunications
carriers that previously had not elected to be subject to price
cap regulation pay 20 percent of telecommunications carrier's
gross regulated intrastate revenue for 2001 into
telecommunications infrastructure account. Specifies manner in
which amounts in account be expended. - } { + Modifies
provisions allowing telecommunications carriers to opt out of
rate of return regulation. Requires Public Utility Commission to
establish prices for certain extended area service by
telecommunications carriers that opt out of rate of return
regulation in manner that allows carrier to recover all costs and
lost net revenues resulting from implementing new extended area
service routes. + }
A BILL FOR AN ACT
Relating to telecommunications service; creating new provisions;
and amending ORS 759.410.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 759.410 is amended to read:
759.410. (1) It is the intent of the Legislative Assembly that:
(a) The State of Oregon cease regulation of telecommunications
carriers on a rate of return basis;
(b) Telecommunications carriers subject to rate of return
regulation have the ability to opt out of rate of return
regulation;
(c) A telecommunications carrier that opts out of rate of
return regulation under this section and ORS 759.405 shall be
subject to price cap regulation and the carrier under price cap
regulation shall continue to meet service quality requirements;
and
(d) Telecommunications carriers that opt out of rate of return
regulation under this section and ORS 759.405 shall make payments
to the state to support the use of advanced telecommunications
services and to support deployment of advanced telecommunications
services.
(2) A telecommunications carrier that elects to be subject to
this section and ORS 759.405 shall be subject to price regulation
as provided in this section and shall not be subject to any other
retail rate regulation, including but not limited to any form of
earnings-based, rate-based or rate of return regulation.
(3) The price a telecommunications utility that elects to be
subject to this section and ORS 759.405 may charge for basic
telephone service shall be established by the Public Utility
Commission under ORS 759.425. Subject to ORS 759.415, the regular
tariff rate of intrastate switched access and retail
telecommunications services regulated by the commission, other
than basic telephone service, in effect on the date the carrier
elects to be subject to this section and ORS 759.405 shall be the
maximum price the telecommunications carrier may charge for that
service.
(4) A telecommunications carrier that elects to be subject to
this section and ORS 759.405 may adjust the price for
{ + intrastate switched access or + } a regulated retail
telecommunications service between the maximum price established
under this section and a price floor equal to the sum of the
total service long run incremental cost of providing the service
for the nonessential functions of the service and the price that
is charged to other telecommunications carriers for the essential
functions. Basic telephone service shall not be subject to a
price floor.
(5) The price for a new regulated retail telecommunications
service introduced by a telecommunications carrier within four
years after the date the carrier elects to be subject to this
section and ORS 759.405 shall be subject to a price floor test by
the commission to ensure that the service is not priced below the
sum of the total service long run incremental cost of providing
the service for the nonessential functions of the service and the
price that is charged to other telecommunications carriers for
the essential functions. Beginning on the date four years after
September 1, 1999, the price of a new telecommunications service
shall be subject to a price floor test by the commission to
ensure that the service is not priced below the total service
long run incremental cost of providing the service, without
regard to whether the service is considered essential or
nonessential.
(6) A telecommunications carrier that elects to be subject to
this section and ORS 759.405 may package and offer any of its
retail telecommunications services with any other service at any
price, provided the following conditions apply:
(a) Any regulated telecommunications service may be purchased
separately at or below the maximum price.
(b) The price of the package is not less than the sum of the
price floors of each regulated retail telecommunications service
included in the package.
(c) The price of a package that is comprised entirely of
regulated retail telecommunications services does not exceed the
sum of the maximum prices for each of the services.
(d) The price of a package comprised of regulated and
unregulated retail telecommunications services does not exceed
the sum of the maximum prices established under this section for
regulated services and the retail price charged by the carrier
for the individual unregulated services in the package. A
telecommunications carrier subject to regulation under this
section shall provide notice to the commission within 30 days of
a change in the price of an unregulated telecommunications
service contained in the package.
(7) Nothing in this section or ORS 759.405 is intended to limit
the ability of a telecommunications carrier to seek deregulation
of telecommunications services under ORS 759.030.
(8)(a) Notice of a price change authorized under subsection (4)
of this section, of the introduction of a new regulated
telecommunications service or of the packaging of services, must
be given to the commission within 30 days following the effective
date of the price change, new service or packaged service. Notice
of a new regulated telecommunications service shall indicate the
retail price charged by the carrier for the service.
(b) The commission may investigate any price change authorized
under subsection (4) of this section, the price of a new
regulated telecommunications service or the price of a package of
services to determine that the price complies with the provisions
of this section and any other applicable law. If the commission
determines that the price of the service or package of services
does not comply with the provisions of this section or other
applicable law, the commission may order the telecommunications
carrier to take such action as the commission determines
necessary to bring the price into compliance with this section or
other applicable law.
(9) Nothing in this section affects the authority of a city or
municipality to manage the public rights of way or to require
fair and reasonable compensation from a telecommunications
carrier, on a competitively neutral and nondiscriminatory basis,
under ORS 221.420, 221.450, 221.510 and 221.515.
{ + (10) Notwithstanding any other provision of this section,
the commission shall establish prices for extended area service
in a manner that allows a telecommunications carrier that elects
to be subject to this section and ORS 759.405 to recover all
costs and lost net revenues attributable to implementing new
extended area service routes. The provisions of this subsection
apply to telecommunications service provided on a flat or
measured basis between exchanges defined by exchange maps filed
with and approved by the commission. + }
SECTION 2. { + The amendments to ORS 759.410 by section 1 of
this 2001 Act apply to all telecommunications carriers that elect
to be subject to ORS 759.405 and 759.410, whether they make that
election before, on or after the effective date of this 2001
Act. + }
----------