Senate Bill No. 400–Committee on Commerce and Labor

 

March 21, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to telecommunica-tion service, high-speed Internet access service and broadband service. (BDR 58‑261)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to communication services; enacting provisions relating to the regulation of telecommunication service, high-speed Internet access service and broadband service; revising and recodifying certain provisions relating to incumbent local exchange carriers that are regulated under a plan of alternative regulation; amending certain requirements and procedures relating to such carriers; revising provisions relating to the classification of certain telecommunication services; requiring the Public Utilities Commission of Nevada to reclassify certain telecommunication services as competitive services under certain circumstances; revising provisions relating to flexibility in the pricing and terms of certain telecommunication services; prohibiting certain regulations relating to high-speed Internet access service and broadband service; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

 

2-1  Section 1. Chapter 704 of NRS is hereby amended by adding

2-2  thereto the provisions set forth as sections 2 to 10, inclusive, of this

2-3  act.

2-4  Sec. 2.  “Affiliate of an incumbent local exchange carrier” or

2-5  “affiliate” means a competitive provider of telecommunication

2-6  service that is controlled by or under common control with an

2-7  incumbent local exchange carrier to the extent the competitive

2-8  provider of telecommunication service is doing business within

2-9  any service territory in which its affiliated incumbent local

2-10  exchange carrier has been designated by the Commission as the

2-11  provider of last resort of basic service.

2-12      Sec. 3.  “Deregulated service” means:

2-13      1.  Any voice messaging service or other information service;

2-14      2.  Any telecommunication service that the Commission

2-15  classifies as a deregulated service pursuant to NRS 704.6896 or

2-16  pursuant to the regulations adopted by the Commission in

2-17  accordance with section 8 of this act; or

2-18      3.  Any service that is identified as nonregulated in the cost

2-19  allocation manual of the incumbent local exchange carrier filed

2-20  with the Federal Communications Commission pursuant to 47

2-21  C.F.R. § 64.903, except that the gross operating revenue derived

2-22  from a nonregulated service remains subject to the annual

2-23  assessment levied and collected by the Commission in accordance

2-24  with NRS 704.033.

2-25      Sec. 4.  “New service” means a retail telecommunication

2-26  service that:

2-27      1.  Provides a function, feature or capability which is not

2-28  offered in any service previously offered by the carrier; or

2-29      2.  Combines two or more previously provided new services.

2-30      Sec. 5.  1.  “PAR carrier” means an incumbent local

2-31  exchange carrier that is regulated under a plan of alternative

2-32  regulation approved by the Commission pursuant to section 8 of

2-33  this act.

2-34      2.  The term includes, but is not limited to, an electing PAR

2-35  carrier.

2-36      Sec. 6.  “Telecommunication” means the transmission,

2-37  between or among points specified by the user, of information of

2-38  the user’s choosing, without change in the form or content of the

2-39  information sent and received, regardless of the facilities used.

2-40      Sec. 7.  “Telecommunication service” means to offer, for a

2-41  fee:

2-42      1.  Any telecommunication directly to the public; or

2-43      2.  Any access service to interexchange carriers.

2-44      Sec. 8.  1.  The Commission may exempt, to the extent it

2-45  deems reasonable, an incumbent local exchange carrier from any

3-1  or all of the provisions of this chapter, upon a determination after

3-2  a hearing that the incumbent local exchange carrier should be

3-3  subject to a plan of alternative regulation.

3-4  2.  The Commission shall adopt regulations necessary to

3-5  establish a plan of alternative regulation for an incumbent local

3-6  exchange carrier. The regulations must include provisions that:

3-7  (a) Allow adjustment of the rates charged by the incumbent

3-8  local exchange carrier during the period in which the incumbent

3-9  local exchange carrier is regulated under a plan of alternative

3-10  regulation.

3-11      (b) Provide for flexibility in the pricing and the terms of

3-12  discretionary services upon submitting a notice to the

3-13  Commission.

3-14      (c) Specify the provisions of this chapter and chapter 707 of

3-15  NRS that do not apply to the incumbent local exchange carrier

3-16  during the period in which the incumbent local exchange carrier

3-17  is regulated under a plan of alternative regulation.

3-18      (d) Except as otherwise provided in this paragraph and NRS

3-19  704.68952, allow the incumbent local exchange carrier to select

3-20  the duration of the period in which the incumbent local exchange

3-21  carrier is regulated under a plan of alternative regulation. The

3-22  incumbent local exchange carrier may not select a period that is

3-23  less than 3 years or more than 5 years. The provisions of this

3-24  paragraph do not apply to a plan of alternative regulation of an

3-25  incumbent local exchange carrier which was approved by the

3-26  Commission before the effective date of this act.

3-27      (e) Provide for the reclassification of any existing

3-28  telecommunication service, other than access to emergency 911

3-29  service, among the categories of basic network services,

3-30  competitive services, deregulated services, discretionary services

3-31  and other essential services.

3-32      3.  An incumbent local exchange carrier that is regulated

3-33  under a plan of alternative regulation pursuant to this section is

3-34  not subject to:

3-35      (a) The remaining provisions of this chapter or chapter 707 of

3-36  NRS to the extent specified pursuant to paragraph (c) of

3-37  subsection 2; or

3-38      (b) Any review of earnings, monitoring of the rate base or any

3-39  other regulation by the Commission relating to the net income or

3-40  rate of return of the incumbent local exchange carrier during the

3-41  period in which the incumbent local exchange carrier is regulated

3-42  under a plan of alternative regulation.

3-43      Sec. 9.  In exercising flexibility in the pricing or terms of its

3-44  services pursuant to NRS 704.68904 to 704.68984, inclusive, and

3-45  sections 2 to 9, inclusive, of this act, a PAR carrier shall not

4-1  engage in any anticompetitive act or practice or unreasonably

4-2  discriminate among similarly situated customers.

4-3  Sec. 10.  1.  Except as otherwise provided in subsection 2,

4-4  the Commission shall not impose any regulation upon a provider

4-5  of high-speed Internet access service or broadband service in its

4-6  provision of the service.

4-7  2.  The provisions of subsection 1 do not:

4-8  (a) Limit or modify the duties of an incumbent local exchange

4-9  carrier or an affiliate of an incumbent local exchange carrier to

4-10  provide unbundled access to network elements to the extent

4-11  required under 47 U.S.C. §§ 251 and 252, and 47 C.F.R. § 51.319

4-12  or any successor regulations issued by the Federal

4-13  Communications Commission, at rates determined in accordance

4-14  with the standards established by the Federal Communications

4-15  Commission pursuant to 47 C.F.R. §§ 51.503 to 51.513, inclusive,

4-16  or any successor regulations; or

4-17      (b) Prohibit the Commission from:

4-18          (1) Considering any revenues, costs and expenses that a

4-19  public utility derives from providing a high-speed Internet access

4-20  service or broadband service, if the Commission is determining the

4-21  rates of the public utility under a general rate application that is

4-22  filed pursuant to subsection 3 of NRS 704.110;

4-23          (2) Acting on a consumer complaint pursuant to NRS

4-24  703.310, if the consumer complaint relates to a high-speed

4-25  Internet access service or broadband service that is provided by a

4-26  public utility; or

4-27          (3) Including any appropriate gross operating revenue that

4-28  a public utility derives from providing a high-speed Internet access

4-29  service or broadband service when the Commission calculates the

4-30  gross operating revenue of the public utility for the purposes of

4-31  levying and collecting the annual assessment in accordance with

4-32  the provisions of NRS 704.033.

4-33      3.  As used in this section:

4-34      (a) “Affiliate of an incumbent local exchange carrier” has the

4-35  meaning ascribed to it in section 2 of this act.

4-36      (b) “High-speed Internet access service” or “broadband

4-37  service” means any services and underlying facilities that provide

4-38  access, or enable users to access, and transmit information to and

4-39  from, the Internet, and any services and underlying facilities that

4-40  are capable of transmitting information, at a rate that exceeds 150

4-41  kilobits per second in at least one direction, regardless of the

4-42  technology or medium used, including, but not limited to, wireless,

4-43  copper wire, fiber optic cable or coaxial cable, to provide that

4-44  service.

5-1  (c) “Incumbent local exchange carrier” has the meaning

5-2  ascribed to it in NRS 704.68932.

5-3  Sec. 11.  NRS 704.020 is hereby amended to read as follows:

5-4  704.020  1.  “Public utility” or “utility” includes:

5-5  (a) Any person who owns, operates, manages or controls any

5-6  railroad or part of a railroad as a common carrier in this state, or cars

5-7  or other equipment used thereon, or bridges, terminals, or sidetracks,

5-8  or any docks or wharves or storage elevators used in connection

5-9  therewith, whether or not they are owned by the railroad.

5-10      (b) [Telephone companies and other companies which provide

5-11  telecommunication or a related] Any telephone company that

5-12  provides a telecommunication service to the public, but only with

5-13  regard to those operations of the telephone company which consist

5-14  of providing a telecommunication service to the public.

5-15      (c) [Radio] Any radio or broadcasting [instrumentalities

5-16  providing] company or instrumentality that provides a common or

5-17  contract service.

5-18      (d) [All companies which own] Any company that owns cars of

5-19  any kind or character, used and operated as a part of railroad trains,

5-20  in or through this state.

5-21  All duties required of and penalties imposed upon any railroad or

5-22  any officer or agent thereof are, insofar as applicable, required of

5-23  and imposed upon the owner or operator of any telephone[, radio

5-24  and broadcasting companies, companies providing

5-25  telecommunication or related services] company that provides a

5-26  telecommunication service to the public , any radio or

5-27  broadcasting company or instrumentality that provides a common

5-28  or contract service and [companies which own] any company that

5-29  owns cars of any kind or character, used and operated as a part of

5-30  railroad trains in or through this state, and their officers and agents,

5-31  and the Commission may supervise and control all such companies ,

5-32  instrumentalities and persons to the same extent as railroads.

5-33      2.  “Public utility” or “utility” also includes:

5-34      (a) Any person who owns, operates or controls any ditch, flume,

5-35  tunnel or tunnel and drainage system, charging rates, fares or tolls,

5-36  directly or indirectly.

5-37      (b) Any plant or equipment, or any part of a plant or equipment,

5-38  within this state for the production, delivery or furnishing for or to

5-39  other persons, including private or municipal corporations, heat, gas,

5-40  coal slurry, light, power in any form or by any agency, water for

5-41  business, manufacturing, agricultural or household use, or sewerage

5-42  service, whether or not within the limits of municipalities.

 

 

6-1  (c) Any system for the distribution of liquefied petroleum gas to

6-2  10 or more users.

6-3  The Commission may supervise, regulate and control all such

6-4  utilities, subject to the provisions of this chapter and to the exclusion

6-5  of the jurisdiction, regulation and control of such utilities by any

6-6  municipality, town or village, unless otherwise provided by law.

6-7  3.  The provisions of this chapter and the term “public utility”

6-8  apply to all railroads, express companies , car companies and all

6-9  associations of persons, whether or not incorporated, that do any

6-10  business as a common carrier upon or over any line of railroad

6-11  within this state.

6-12      Sec. 12.  NRS 704.040 is hereby amended to read as follows:

6-13      704.040  1.  Every public utility shall furnish reasonably

6-14  adequate service and facilities, and the charges made for any service

6-15  rendered or to be rendered, or for any service in connection

6-16  therewith or incidental thereto, must be just and reasonable.

6-17      2.  Every unjust and unreasonable charge for service of a public

6-18  utility is unlawful.

6-19      3.  The Commission may exempt, to the extent it deems

6-20  reasonable, [services related to telecommunication or public utilities

6-21  which provide telecommunication services] a public utility that is a

6-22  competitive supplier of telecommunication service from any or all

6-23  of the provisions of this chapter, upon a determination after hearing

6-24  that the [services are] public utility is providing a

6-25  telecommunication service which is competitive or discretionary

6-26  and that regulation [thereof] of the telecommunication service is

6-27  unnecessary. [For the purposes of this subsection, basic local

6-28  exchange service and access services provided to interexchange

6-29  carriers are not discretionary.]

6-30      4.  The Commission shall adopt regulations necessary to

6-31  establish [an alternative] a plan of alternative regulation [of] for a

6-32  public utility that [provides telecommunication services. The

6-33  alternative plan may include, but is not limited to, provisions that:

6-34      (a) Allow adjustment of the rates charged by a public utility that

6-35  provides telecommunication services during the period in which the

6-36  utility elects the alternative plan of regulation.

6-37      (b) Provide for flexibility of pricing for discretionary services

6-38  and services that are competitive.

6-39      (c) Specify the provisions of this chapter and chapter 707 of

6-40  NRS that do not apply to a public utility that elects to be regulated

6-41  under the alternative plan.] is a competitive supplier of

6-42  telecommunication service.

6-43      5.  A public utility that [elects to be] is regulated under [the

6-44  alternative] a plan of alternative regulation established pursuant to

6-45  subsection 4 is not subject to the remaining provisions of this

7-1  chapter or chapter 707 of NRS to the extent specified [pursuant to

7-2  paragraph (c) of subsection 4.] by the Commission in the plan of

7-3  alternative regulation.

7-4  6.  The provisions of subsections 3, 4 and 5 do not apply to a

7-5  public utility that provides a telecommunication service if the

7-6  public utility is an incumbent local exchange carrier which is

7-7  subject to the provisions of NRS 704.68904 to 704.68984,

7-8  inclusive, and sections 2 to 9, inclusive, of this act.

7-9  7.  All providers of a telecommunication [services] service

7-10  which offer the same or similar service must be subject to fair and

7-11  impartial regulation, to promote adequate, economical and efficient

7-12  service.

7-13      [7.] 8. The Commission may provide for the levy and

7-14  collection of an assessment, in an amount determined by the

7-15  Commission, from a public utility that provides a

7-16  telecommunication [services] service in order to maintain the

7-17  availability of telephone service. Assessments levied pursuant to this

7-18  subsection must be maintained in a separate fund established by the

7-19  Commission. The Commission shall contract with an independent

7-20  administrator to administer the fund pursuant to open competitive

7-21  bidding procedures established by the Commission. The

7-22  independent administrator shall collect the assessments levied and

7-23  distribute them from the fund pursuant to a plan which has been

7-24  approved by the Commission. Money in the fund must be used for

7-25  the sole purpose of maintaining the availability of telephone service.

7-26      [8.  For the purposes of this section, “interexchange carrier”

7-27  means any person providing intrastate telecommunications service

7-28  for a fee between two or more exchanges.]

7-29      9.  As used in this section:

7-30      (a) “Incumbent local exchange carrier” has the meaning

7-31  ascribed to it in NRS 704.68932.

7-32      (b) “Public utility that is a competitive supplier of

7-33  telecommunication service” has the meaning ascribed to

7-34  “competitive supplier” set forth in NRS 704.6892.

7-35      Sec. 13.  NRS 704.100 is hereby amended to read as follows:

7-36      704.100  Except as otherwise provided in NRS 704.075 and

7-37  704.68904 to 704.68984, inclusive, and sections 2 to 9, inclusive,

7-38  of this act, or as may otherwise be provided by the Commission

7-39  pursuant to NRS 704.095 or 704.097[:] or pursuant to the

7-40  regulations adopted by the Commission in accordance with NRS

7-41  704.040 or section 8 of this act:

7-42      1.  A public utility shall not make changes in any schedule,

7-43  unless the public utility:

8-1  (a) Files with the Commission an application to make the

8-2  proposed changes and the Commission approves the proposed

8-3  changes pursuant to NRS 704.110; or

8-4  (b) Files the proposed changes with the Commission using a

8-5  letter of advice in accordance with the provisions of subsection 4.

8-6  2.  A public utility shall post copies of all proposed schedules

8-7  and all new or amended schedules in the same offices and in

8-8  substantially the same form, manner and places as required by NRS

8-9  704.070 for the posting of copies of schedules that are currently in

8-10  force.

8-11      3.  A public utility may not set forth as justification for a rate

8-12  increase any items of expense or rate base that previously have been

8-13  considered and disallowed by the Commission, unless those items

8-14  are clearly identified in the application and new facts or

8-15  considerations of policy for each item are advanced in the

8-16  application to justify a reversal of the prior decision of the

8-17  Commission.

8-18      4.  Except as otherwise provided in subsection 5, if the

8-19  proposed change in any schedule does not change any rate or will

8-20  result in an increase in annual gross operating revenue, as certified

8-21  by the public utility, in an amount that does not exceed $2,500:

8-22      (a) The public utility may file the proposed change with the

8-23  Commission using a letter of advice in lieu of filing an application;

8-24  and

8-25      (b) The Commission shall determine whether it should dispense

8-26  with a hearing regarding the proposed change.

8-27      5.  If the applicant is a public utility furnishing telephone

8-28  service and the proposed change in any schedule will result in an

8-29  increase in annual gross operating revenue, as certified by the

8-30  applicant, in an amount that does not exceed $50,000 or 10 percent

8-31  of the applicant’s annual gross operating revenue, whichever is less,

8-32  the Commission shall determine whether it should dispense with a

8-33  hearing regarding the proposed change.

8-34      6.  In making the determination pursuant to subsection 4 or 5,

8-35  the Commission shall first consider all timely written protests, any

8-36  presentation that the regulatory operations staff of the Commission

8-37  may desire to present, the application of the public utility and any

8-38  other matters deemed relevant by the Commission.

8-39      Sec. 14.  NRS 704.110 is hereby amended to read as follows:

8-40      704.110  Except as otherwise provided in NRS 704.075 and

8-41  704.68904 to 704.68984, inclusive, and sections 2 to 9, inclusive,

8-42  of this act or as may otherwise be provided by the Commission

8-43  pursuant to NRS 704.095 or 704 097[:] or pursuant to the

8-44  regulations adopted by the Commission in accordance with NRS

8-45  704.040 or section 8 of this act:

9-1  1.  If a public utility files with the Commission an application to

9-2  make changes in any schedule, including, without limitation,

9-3  changes that will result in a discontinuance, modification or

9-4  restriction of service, the Commission shall investigate the propriety

9-5  of the proposed changes to determine whether to approve or

9-6  disapprove the proposed changes. If an electric utility files such an

9-7  application and the application is a general rate application or an

9-8  application to clear its deferred accounts, the Consumer’s Advocate

9-9  shall be deemed a party of record.

9-10      2.  Except as otherwise provided in subsection 3, if a public

9-11  utility files with the Commission an application to make changes in

9-12  any schedule, not later than 180 days after the date on which the

9-13  application is filed, the Commission shall issue a written order

9-14  approving or disapproving, in whole or in part, the proposed

9-15  changes.

9-16      3.  If a public utility files with the Commission a general rate

9-17  application, the public utility shall submit with its application a

9-18  statement showing the recorded results of revenues, expenses,

9-19  investments and costs of capital for its most recent 12 months for

9-20  which data were available when the application was prepared. In

9-21  determining whether to approve or disapprove any increased rates,

9-22  the Commission shall consider evidence in support of the increased

9-23  rates based upon actual recorded results of operations for the same

9-24  12 months, adjusted for increased revenues, any increased

9-25  investment in facilities, increased expenses for depreciation, certain

9-26  other operating expenses as approved by the Commission and

9-27  changes in the costs of securities which are known and are

9-28  measurable with reasonable accuracy at the time of filing and which

9-29  will become effective within 6 months after the last month of those

9-30  12 months, but the public utility shall not place into effect any

9-31  increased rates until the changes have been experienced and

9-32  certified by the public utility to the Commission and the

9-33  Commission has approved the increased rates. The Commission

9-34  shall also consider evidence supporting expenses for depreciation,

9-35  calculated on an annual basis, applicable to major components of the

9-36  public utility’s plant placed into service during the recorded test

9-37  period or the period for certification as set forth in the application.

9-38  Adjustments to revenues, operating expenses and costs of securities

9-39  must be calculated on an annual basis. Within 90 days after the date

9-40  on which the certification required by this subsection is filed with

9-41  the Commission, or within 180 days after the date on which the

9-42  general rate application is filed with the Commission, whichever

9-43  time is longer, the Commission shall make such order in reference

9-44  to the increased rates as is required by this chapter. An electric

10-1  utility shall file a general rate application pursuant to this subsection

10-2  at least once every 24 months.

10-3      4.  If a public utility files with the Commission an application to

10-4  make changes in any schedule and the Commission does not issue a

10-5  final written order regarding the proposed changes within the time

10-6  required by this section, the proposed changes shall be deemed to be

10-7  approved by the Commission.

10-8      5.  If a public utility files with the Commission a general rate

10-9  application, the public utility shall not file with the Commission

10-10  another general rate application until all pending general rate

10-11  applications filed by that public utility have been decided by the

10-12  Commission unless, after application and hearing, the Commission

10-13  determines that a substantial financial emergency would exist if the

10-14  public utility is not permitted to file another general rate application

10-15  sooner. The provisions of this subsection do not prohibit the public

10-16  utility from filing with the Commission, while a general rate

10-17  application is pending, an application to recover the increased cost

10-18  of purchased fuel, purchased power, or natural gas purchased for

10-19  resale pursuant to subsection 6 or an application to clear its deferred

10-20  accounts pursuant to subsection 7, if the public utility is otherwise

10-21  authorized by those provisions to file such an application.

10-22     6.  A public utility may file an application to recover the

10-23  increased cost of purchased fuel, purchased power, or natural gas

10-24  purchased for resale once every 30 days. The provisions of this

10-25  subsection do not apply to an electric utility using deferred

10-26  accounting pursuant to NRS 704.187.

10-27     7.  Except as otherwise provided in subsection 8 and subsection

10-28  4 of NRS 704.100, if an electric utility using deferred accounting

10-29  pursuant to NRS 704.187 files an application to clear its deferred

10-30  accounts and to change one or more of its rates based upon changes

10-31  in the costs for purchased fuel or purchased power, the Commission,

10-32  after a public hearing and by an appropriate order:

10-33     (a) Shall allow the electric utility to clear its deferred accounts

10-34  by refunding any credit balance or recovering any debit balance

10-35  over a period not to exceed 3 years, as determined by the

10-36  Commission.

10-37     (b) Shall not allow the electric utility to recover any debit

10-38  balance, or portion thereof, in an amount that would result in a rate

10-39  of return during the period of recovery that exceeds the rate of

10-40  return authorized by the Commission in the most recently completed

10-41  rate proceeding for the electric utility.

10-42     8.  Before allowing an electric utility to clear its deferred

10-43  accounts pursuant to subsection 7, the Commission shall determine

10-44  whether the costs for purchased fuel and purchased power that the

10-45  electric utility recorded in its deferred accounts are recoverable and

11-1  whether the revenues that the electric utility collected from

11-2  customers in this state for purchased fuel and purchased power are

11-3  properly recorded and credited in its deferred accounts. The

11-4  Commission shall not allow the electric utility to recover any costs

11-5  for purchased fuel and purchased power that were the result of any

11-6  practice or transaction that was undertaken, managed or performed

11-7  imprudently by the electric utility.

11-8      9.  If an electric utility files an application to clear its deferred

11-9  accounts pursuant to subsection 7 while a general rate application is

11-10  pending, the electric utility shall:

11-11     (a) Submit with its application to clear its deferred accounts

11-12  information relating to the cost of service and rate design; and

11-13     (b) Supplement its general rate application with the same

11-14  information, if such information was not submitted with the general

11-15  rate application.

11-16     10.  A utility facility identified in a 3-year plan submitted

11-17  pursuant to NRS 704.741 and accepted by the Commission for

11-18  acquisition or construction pursuant to NRS 704.751 and the

11-19  regulations adopted pursuant thereto shall be deemed to be a prudent

11-20  investment. The utility may recover all just and reasonable costs of

11-21  planning and constructing such a facility.

11-22     11.  As used in this section, “electric utility” has the meaning

11-23  ascribed to it in NRS 704.187.

11-24     Sec. 15.  NRS 704.68904 is hereby amended to read as

11-25  follows:

11-26     704.68904  As used in NRS 704.68904 to 704.68984, inclusive,

11-27  and sections 2 to 9, inclusive, of this act, unless the context

11-28  otherwise requires, the words and terms defined in NRS 704.68908

11-29  to 704.68944, inclusive, and sections 2 to 7, inclusive, of this act,

11-30  have the meanings ascribed to them in those sections.

11-31     Sec. 16.  NRS 704.68908 is hereby amended to read as

11-32  follows:

11-33     704.68908  “Affected person” means:

11-34     1.  A public utility affected by an action of [an electing] a PAR

11-35  carrier or an action of the Commission relating to [an electing] a

11-36  PAR carrier;

11-37     2.  A person whose utility service or rates are affected by an

11-38  action of [an electing] a PAR carrier or an action of the Commission

11-39  relating to [an electing] a PAR carrier;

11-40     3.  A competitive supplier; or

11-41     4.  The Bureau of Consumer Protection in the Office of the

11-42  Attorney General.

 

 

12-1      Sec. 17.  NRS 704.68912 is hereby amended to read as

12-2  follows:

12-3      704.68912  “Basic network service” means the provision of any

12-4  of the following services, unless the [service has been] Commission

12-5  has reclassified the service as a competitive[,] service, a

12-6  deregulated service, a discretionary service or an other essential

12-7  service [by the Commission] pursuant to NRS 704.6896:

12-8      1.  Farmer line service;

12-9      2.  Flat rate service for residential lines;

12-10     3.  Measured rate service for residential lines;

12-11     4.  Flat rate service for residential trunk lines;

12-12     5.  Flat rate service for business lines;

12-13     6.  Measured rate service for business lines;

12-14     7.  Flat rate service for business trunk lines;

12-15     8.  Measured rate service for business trunk lines;

12-16     9.  Suburban service access lines;

12-17     10.  Toll station service access lines;

12-18     11.  Universal lifeline service access lines;

12-19     12.  Access to emergency 911 service; and

12-20     13.  The first single-line directory listing.

12-21     Sec. 18.  NRS 704.68916 is hereby amended to read as

12-22  follows:

12-23     704.68916  “Competitive service” means[:] a

12-24  telecommunication service that is subject to competition,

12-25  including, but not limited to:

12-26     1.  Any new service;

12-27     2.  Any high-speed data service transmitted at a rate that

12-28  exceeds 125 kilobits per second;

12-29     3.  Any telecommunication service which is classified as a

12-30  competitive service [or a nonregulated service] by regulation of the

12-31  Commission, or which is reclassified as a competitive service

12-32  pursuant to NRS 704.6896; and

12-33     [2.] 4. The intraLATA toll services of [an electing] a PAR

12-34  carrier.

12-35     Sec. 19.  NRS 704.6892 is hereby amended to read as follows:

12-36     704.6892  “Competitive supplier” means a person who:

12-37     1.  Is a competitor of [an electing] a PAR carrier with respect to

12-38  a service performed by the [electing] PAR carrier; or

12-39     2.  Wants to enter into competition with [an electing] a PAR

12-40  carrier.

12-41     Sec. 20.  NRS 704.68924 is hereby amended to read as

12-42  follows:

12-43     704.68924  “Discretionary service” means any

12-44  telecommunication service which is not otherwise classified as a

12-45  basic network service, a competitive service , a deregulated service

13-1  or [any] an other essential service, or which is reclassified as a

13-2  discretionary service pursuant to NRS 704.6896[.] or pursuant to

13-3  the regulations adopted by the Commission in accordance with

13-4  section 8 of this act.

13-5      Sec. 21.  NRS 704.68928 is hereby amended to read as

13-6  follows:

13-7      704.68928  “Electing PAR carrier” means [an incumbent local

13-8  exchange carrier regulated under an alternative plan of regulation

13-9  pursuant to NRS 704.040 that has elected also to be regulated

13-10  pursuant to NRS 704.68904 to 704.68984, inclusive, by filing with

13-11  the Commission a statement] a PAR carrier which:

13-12     1.  Makes an election to become an electing PAR carrier

13-13  pursuant to NRS 704.68948[.] ; and

13-14     2.  Is regulated in the manner described in that section.

13-15     Sec. 22.  NRS 704.68948 is hereby amended to read as

13-16  follows:

13-17     704.68948  [An incumbent local exchange carrier that is

13-18  regulated under an alternative plan of regulation pursuant to NRS

13-19  704.040 may elect also to be]

13-20     1.  A PAR carrier may make an election to become an electing

13-21  PAR carrier that is regulated pursuant to NRS 704.68952,

13-22  704.68956 and 704.6898. Such regulation is in addition to any

13-23  other regulation that otherwise applies to the PAR carrier

13-24  pursuant to NRS 704.68904 to 704.68984, inclusive, [by filing] and

13-25  sections 2 to 9, inclusive, of this act.

13-26     2.  To make an election pursuant to this section, the PAR

13-27  carrier must file with the Commission a written statement of its

13-28  election to [be so regulated.] become an electing PAR carrier. The

13-29  written statement must:

13-30     (a) Identify the PAR carrier; and

13-31     (b) Include the date that its election becomes effective.

13-32     Sec. 23. NRS 704.68952 is hereby amended to read as

13-33  follows:

13-34     704.68952  1.  [An] Except as otherwise provided in this

13-35  section, if a PAR carrier makes an election to become an electing

13-36  PAR carrier pursuant to NRS 704.68948, on and after the date

13-37  that the election becomes effective:

13-38     (a) The electing PAR carrier is not subject to any review of

13-39  earnings, monitoring of the rate base, or any other regulation by

13-40  the Commission relating to the net income or rate of return of the

13-41  electing PAR carrier[, unless the electing carrier files with the

13-42  Commission a request to:

13-43     (a) Terminate its participation in the alternative plan of

13-44  regulation pursuant to NRS 704.040; or

14-1      (b) Continue its participation in the alternative plan of regulation

14-2  pursuant to NRS 704.040.

14-3      2.  Except as otherwise provided in subsection 1, the] ;

14-4      (b) The Commission shall not consider the rate of return, rate

14-5  base or any other earnings of the electing PAR carrier in connection

14-6  with any change in rates[.

14-7      3.  Except for an electing carrier that files a request with the

14-8  Commission pursuant to subsection 1, the] ;

14-9      (c) The Commission shall not decrease the rate of a basic

14-10  network service provided by the electing PAR carrier unless the

14-11  electing PAR carrier agrees to the decrease in the rate[.

14-12     4.  Except for a telecommunication service reclassified pursuant

14-13  to NRS 704.6896, or except where an electing carrier elects to

14-14  continue participation in an alternative plan of regulation pursuant to

14-15  paragraph (b) of subsection 1, an] ; and

14-16     (d) The electing PAR carrier shall not , during the term of its

14-17  plan of alternative regulation, increase any rate that the electing

14-18  PAR carrier charges for a basic network [services.

14-19     5.] service, other than the rate for a telecommunication service

14-20  that is:

14-21         (1) Reclassified pursuant to NRS 704.6896 or pursuant to

14-22  the regulations adopted by the Commission in accordance with

14-23  section 8 of this act; or

14-24         (2) Offered by the electing PAR carrier pursuant to NRS

14-25  704.68964, 704.68968 or 704.68972.

14-26     2.  An electing PAR carrier may terminate its plan of

14-27  alternative regulation at any time by filing with the Commission a

14-28  notice of its intention to terminate the plan. The termination is

14-29  effective on the date the electing PAR carrier specifies in the

14-30  notice.

14-31     3.  If an electing PAR carrier terminates its plan of alternative

14-32  regulation pursuant to subsection 2, the electing PAR carrier shall

14-33  file with the Commission a general rate application pursuant to

14-34  subsection 3 of NRS 704.110 not later than 180 days after the date

14-35  that the termination of its plan of alternative regulation becomes

14-36  effective.

14-37     4.  If an electing PAR carrier does not terminate its plan of

14-38  alternative regulation pursuant to subsection 2, the plan

14-39  terminates at the end of the first 5-year period after the date the

14-40  plan becomes effective and at the end of each successive 5-year

14-41  period after that date unless:

14-42     (a) Not later than 180 days before the end of the first 5-year

14-43  period after the date the plan becomes effective and at the end of

14-44  each successive 5-year period after that date, the electing PAR

14-45  carrier files with the Commission a written request to continue its

15-1  participation in the plan of alternative regulation for another 5-

15-2  year period; and

15-3      (b) The Commission grants the written request of the electing

15-4  PAR carrier to continue its participation in the plan of alternative

15-5  regulation for another 5-year period in accordance with the

15-6  provisions of this section.

15-7      5.  If an electing PAR carrier files a written request pursuant

15-8  to subsection 4, the written request must be accompanied by a

15-9  written report prepared in a form prescribed by the Commission.

15-10  The written report must:

15-11     (a) Contain a summary of the operations of the electing PAR

15-12  carrier for the period covering the immediately preceding 5 fiscal

15-13  years; and

15-14     (b) Include, but is not limited to, the rate of return and

15-15  earnings of the electing PAR carrier for the period specified in

15-16  paragraph (a), other than the rate of return and earnings obtained

15-17  from deregulated services.

15-18     6.  Not later than 180 days after the date that an electing PAR

15-19  carrier files a written request pursuant to subsection 4, the

15-20  Commission shall conduct and complete a proceeding to review

15-21  the written request and report. The Commission shall not allow

15-22  any person to be a party to the proceeding other than the electing

15-23  PAR carrier, the regulatory operations staff of the Commission

15-24  and the staff of the Bureau of Consumer Protection in the Office

15-25  of the Attorney General.

15-26     7.  In the proceeding, the Commission shall:

15-27     (a) Determine whether the existing rates of the electing PAR

15-28  carrier for basic network services are just and reasonable

15-29  pursuant to subsection 1 of NRS 704.040; and

15-30     (b) Based upon that determination, issue an order which:

15-31         (1) Grants the written request of the electing PAR carrier

15-32  and authorizes the electing PAR carrier to participate in the plan

15-33  of alternative regulation for another 5 years; or

15-34         (2) Denies the written request of the electing PAR carrier

15-35  and directs the electing PAR carrier to file with the Commission a

15-36  general rate application pursuant to subsection 3 of NRS 704.110

15-37  not later than 180 days after the date the Commission issues the

15-38  order.

15-39     8. Except for universal service support for lifeline or link-up

15-40  services provided pursuant to 47 U.S.C. § 214 or as otherwise

15-41  determined by the Commission, an electing PAR carrier is not

15-42  eligible to receive money from the fund created pursuant to

15-43  subsection [7] 8 of NRS 704.040.

15-44     9.  For the purposes of this section:

16-1      (a) The plan of alternative regulation for an electing PAR

16-2  carrier shall be deemed to have a term of 5 years.

16-3      (b) If a PAR carrier is operating as an electing PAR carrier on

16-4  July 1, 2003, the first 5-year term for its plan of alternative

16-5  regulation shall be deemed to begin on July 1, 2003.

16-6      (c) If a PAR carrier makes an election to become an electing

16-7  PAR carrier after July 1, 2003, the first 5-year term for its plan of

16-8  alternative regulation shall be deemed to begin on the date that its

16-9  election becomes effective.

16-10     Sec. 24.  NRS 704.68956 is hereby amended to read as

16-11  follows:

16-12     704.68956  [Nothing in] The provisions of NRS 704.68904 to

16-13  704.68984, inclusive, [authorizes] and sections 2 to 9, inclusive, of

16-14  this act do not authorize an electing PAR carrier, without the

16-15  approval of the Commission, to discontinue or otherwise change the

16-16  terms and conditions relating to the provision of the basic network

16-17  services identified in subsections 1 to 4, inclusive, of NRS

16-18  704.68912, as set forth in the tariffs of the electing PAR carrier that

16-19  are in effect on October 1, 1999.

16-20     Sec. 25.  NRS 704.6896 is hereby amended to read as follows:

16-21     704.6896  1.  [The Commission may, at any time, upon]

16-22  Except as otherwise provided in this section:

16-23     (a) Upon its own motion or that of any person, the Commission

16-24  may at any time reclassify a basic network service . [, except access

16-25  to emergency 911 service.

16-26     2.]

16-27     (b) The Commission shall establish by regulation the criteria for

16-28  determining whether a service should be reclassified . [, except that

16-29  the] The Commission shall not adopt any criteria for determining

16-30  whether a service should be reclassified that would deny a request to

16-31  reclassify a basic network service to another classification of service

16-32  within an exchange where a competitive supplier operates and

16-33  provides that service, on the basis that there is not a competitive

16-34  supplier of that service in any other portion of the State.

16-35     2.  Not later than 120 days after the date that the Commission

16-36  receives a written request for reclassification from a PAR carrier,

16-37  the Commission shall reclassify as a competitive service all

16-38  business or residential services for which the PAR carrier has

16-39  requested reclassification, if the services are provided in a

16-40  business or residential market served by the PAR carrier and the

16-41  Commission, after a hearing, determines that:

16-42     (a) The business or residential services, or any comparable

16-43  services, are offered by at least two competitive suppliers in the

16-44  business or residential market, other than the PAR carrier or an

16-45  affiliate of the PAR carrier;

17-1      (b) Each such competitive supplier:

17-2          (1) Holds a certificate of public convenience and necessity

17-3  issued by the Commission;

17-4          (2) Is a party to an executed interconnection agreement

17-5  with the PAR carrier; and

17-6          (3) If the competitive supplier is not a reseller, has been

17-7  assigned telephone numbers in at least one prefix code to provide

17-8  a telecommunication service; and

17-9      (c) Each such competitive supplier:

17-10         (1) Operates a telecommunication switch in the market and

17-11  is collocated in one or more central offices, wire centers or

17-12  exchanges of the PAR carrier; or

17-13         (2) If the market is located in a county whose population is

17-14  less than 400,000, provides to the members of the general public in

17-15  the market, through a resale of the services of the PAR carrier, at

17-16  least 500 business or residential lines.

17-17     3.  For the purposes of subsection 2, the business or

17-18  residential market served by the PAR carrier consists of the

17-19  geographic market designated by the PAR carrier in its request for

17-20  reclassification. The geographic market designated by the PAR

17-21  carrier may consist of the entire service territory of the PAR

17-22  carrier or any portion of that service territory, including, but not

17-23  limited to, any portion served by one or more central offices, wire

17-24  centers or exchanges of the PAR carrier.

17-25     4.  If, on or after the effective date of this act, the Commission

17-26  classifies any service as a competitive service pursuant to NRS

17-27  704.68904 to 704.68984, inclusive, and sections 2 to 9, inclusive,

17-28  of this act, or any regulations adopted pursuant thereto, the

17-29  competitive service is not subject to the provisions of this chapter

17-30  or chapter 707 of NRS for any purpose, except that the provisions

17-31  of this subsection do not prohibit the Commission from:

17-32     (a) Considering any revenues, costs and expenses that a PAR

17-33  carrier or any other carrier derives from providing the competitive

17-34  service, if the Commission is determining the rates of the carrier

17-35  under a general rate application that is filed pursuant to

17-36  subsection 3 of NRS 704.110;

17-37     (b) Acting on a consumer complaint pursuant to NRS 703.310,

17-38  if the consumer complaint relates to the competitive service being

17-39  provided by a PAR carrier or any other carrier; or

17-40     (c) Including any appropriate gross operating revenue that a

17-41  PAR carrier or any other carrier derives from providing the

17-42  competitive service when the Commission calculates the gross

17-43  operating revenue of the carrier for the purposes of levying and

17-44  collecting the annual assessment in accordance with the

17-45  provisions of NRS 704.033.

18-1      5.  If, on or after the effective date of this act, the Commission

18-2  classifies any service as a deregulated service pursuant to NRS

18-3  704.68904 to 704.68984, inclusive, and sections 2 to 9, inclusive,

18-4  of this act, or any regulations adopted pursuant thereto, the

18-5  pricing, revenues, costs and expenses of the deregulated service

18-6  are not subject to the provisions of this chapter or chapter 707 of

18-7  NRS for any purpose.

18-8      6.  The Commission shall not:

18-9      (a) Reclassify access to emergency 911 service; or

18-10     (a) Classify as a deregulated service any switched access

18-11  service provided to an interexchange carrier.

18-12     Sec. 26.  NRS 704.68964 is hereby amended to read as

18-13  follows:

18-14     704.68964  1.  [An electing] A PAR carrier may, pursuant to

18-15  this section and in accordance with NRS 704.68976, exercise

18-16  flexibility in the pricing , the terms or both the pricing and terms

18-17  of:

18-18     (a) [Competitive services and discretionary services.] Any

18-19  competitive service or discretionary service. The Commission shall

18-20  not specify a maximum rate for any competitive [services] service

18-21  or discretionary [services of the electing carrier. The electing carrier

18-22  shall, with regard to any competitive or discretionary service that it

18-23  provides, set the price of that service above the price floor of the

18-24  service.

18-25     (b) A] service provided by the PAR carrier.

18-26     (b) Any package of services, which may include basic network

18-27  services, competitive services, discretionary services , [and] other

18-28  essential services[.] and services and products that are not subject

18-29  to the jurisdiction of the Commission. The Commission shall not

18-30  specify a maximum rate for a package of services provided by the

18-31  PAR carrier.

18-32     (c) Any tariffed service, if the PAR carrier needs to exercise

18-33  flexibility in the pricing, the terms or both the pricing and terms of

18-34  the tariffed service, to respond to competition by a competitive

18-35  supplier for a specific business customer or one or more business

18-36  customers within a specific geographic market. The flexibility

18-37  exercised by the PAR carrier pursuant to this paragraph may

18-38  include, but is not limited to, using volume or term discounts and

18-39  offering individual contracts.

18-40     2.  Except as otherwise provided in this subsection, [an

18-41  electing] a PAR carrier may, upon [30-days’] a 1-day notice to the

18-42  Commission in writing, exercise flexibility in the pricing , the terms

18-43  or both the pricing and terms of [its] any service or package of

18-44  services that may be subject to such flexibility pursuant to

18-45  subsection 1 , and the PAR carrier is exempt, with respect to the

19-1  pricing of [its] each such service or package of services, from the

19-2  provisions of NRS 704.100 and 704.110 and the regulations of the

19-3  Commission relating thereto. The notice must include a description

19-4  in reasonable detail of:

19-5      (a) The characteristics of [the] each service or package of

19-6  services that will be subject to such flexibility ; [in pricing;]

19-7      (b) The terms and conditions applicable to [the] each service or

19-8  package of services;

19-9      (c) The nature of any limitations on the duration or geographical

19-10  availability of [the] each service or package of services;

19-11     (d) The price or prices of [the services or packages] each service

19-12  or package of services; and

19-13     (e) A certificate which provides that [the electing] :

19-14         (1) The PAR carrier has prepared a cost study of the price

19-15  floor to support the price or prices [for] of each service that will be

19-16  subject to such flexibility or each service included in the package

19-17  of services that will be subject to such flexibility; and [that, on]

19-18         (2) On and after the date on which the notice is filed with the

19-19  Commission, any affected person may, upon request, inspect and

19-20  copy the cost study, subject to reasonable terms and conditions of

19-21  any applicable confidentiality and nondisclosure agreement relating

19-22  to the service or package of services.

19-23  The notice requirements of this subsection do not apply to [an

19-24  electing] a PAR carrier with respect to the pricing or terms of any

19-25  competitive service or any package of services [or for packages]

19-26  comprised exclusively of competitive services.

19-27     3.  The price or prices of each service that is subject to

19-28  flexibility pursuant to this section must not be lower than the price

19-29  floor for that service. The price [for a] or prices of each package of

19-30  services that is subject to flexibility pursuant to this section must

19-31  not be lower than the lesser of:

19-32     (a) The sum of the price floors for each [of the services

19-33  contained] service included in the package; or

19-34     (b) The sum of the prices of the basic network services, as set

19-35  forth in the tariffs of the [electing] PAR carrier, and the price floors

19-36  for each of the other services [contained] included in the package.

19-37     4.  [The Commission shall not specify a maximum rate for a

19-38  package of services.

19-39     5.  Each of the services] Each service included in a package

19-40  [pursuant to paragraph (b) of subsection 1] of services that is

19-41  subject to flexibility pursuant to this section must be made

19-42  available on an individual basis.

19-43     [6.  An electing]

19-44     5.  A PAR carrier must provide [30-days’] a 1-day notice to the

19-45  Commission in writing before the [electing] PAR carrier may

20-1  implement any amendment or change to [an existing service

20-2  noticed] a service or package of services which is subject to

20-3  flexibility pursuant to this section and for which the PAR carrier

20-4  had previously provided notice to the Commission pursuant to

20-5  subsection 2.

20-6      6.  Notwithstanding any other provision of law, if a PAR

20-7  carrier charges a customer a fixed price or amount for a package

20-8  of services that is subject to flexibility pursuant to this section, the

20-9  PAR carrier, in any bill or statement for the package of services, is

20-10  permitted to specify only the fixed price or amount for the package

20-11  of services and is not required to:

20-12     (a) Identify each separate service or component included in

20-13  the package of services; or

20-14     (b) Specify the unit price or amount charged for each separate

20-15  service or component included in the package of services.

20-16     Sec. 27.  NRS 704.68968 is hereby amended to read as

20-17  follows:

20-18     704.68968  [An electing] A PAR carrier may establish

20-19  promotional price reductions for services upon a 1-day notice to the

20-20  Commission. The promotional price reduction for a service may be

20-21  offered for not more than 90 days during any 12 consecutive months

20-22  and must be given in all geographic areas served by the [electing]

20-23  PAR carrier, where facilities permit, on a nondiscriminatory basis

20-24  during the 12-month period.

20-25     Sec. 28.  NRS 704.68972 is hereby amended to read as

20-26  follows:

20-27     704.68972  1.  [An electing] A PAR carrier may introduce new

20-28  services upon [30-days’] a 1-day notice to the Commission in

20-29  writing. The notice must include a description in reasonable detail

20-30  of:

20-31     (a) The characteristics of each new service;

20-32     (b) The terms and conditions applicable to each new service;

20-33     (c) The nature of any limitations on the duration or geographical

20-34  availability of each new service;

20-35     (d) The price or prices of each new service; and

20-36     (e) A certificate [that] which provides that [the electing] :

20-37         (1) The PAR carrier has prepared a cost study of the price

20-38  floor to support the price or prices [for] of each new service ; and

20-39  [that, on]

20-40         (2) On and after the date on which the notice is filed with the

20-41  Commission, any affected person may, upon request, inspect and

20-42  copy the cost study, subject to reasonable terms and conditions of

20-43  any applicable confidentiality and nondisclosure agreement.

20-44     2.  Each new service is subject to the conditions set forth in

20-45  NRS 704.68964.

21-1      3.  Each new service is exempt from the provisions of NRS

21-2  704.100 and 704.110 and the regulations of the Commission relating

21-3  thereto.

21-4      4.  Unless otherwise classified by the Commission as a

21-5  [competitive] deregulated service pursuant to its regulations, a new

21-6  service must be classified as a [discretionary] competitive service

21-7  for which the Commission shall not specify a maximum rate. The

21-8  [electing] PAR carrier shall set the price of the new service above

21-9  the price floor [of the service.

21-10     5.  As used in this section, a “new service” means a

21-11  telecommunication service:

21-12     (a) That provides a function, feature or capability which is

21-13  materially different from any service or services previously offered

21-14  by the carrier; or

21-15     (b) Combines two or more previously provided new services.]

21-16  for that service.

21-17     Sec. 29.  NRS 704.68976 is hereby amended to read as

21-18  follows:

21-19     704.68976  The rates charged by [an electing] a PAR carrier for

21-20  services, except for competitive services, must be geographically

21-21  averaged throughout the service territory in which the [electing]

21-22  PAR carrier is the provider of last resort, as determined pursuant to

21-23  regulations adopted by the Commission, or within such other

21-24  smaller geographic area as the Commission deems appropriate to

21-25  balance the interests of all customers and providers.

21-26     Sec. 30.  NRS 704.6898 is hereby amended to read as follows:

21-27     704.6898  The intrastate access prices charged by an electing

21-28  PAR carrier must not exceed the interstate access prices charged by

21-29  the electing PAR carrier as authorized by the Federal

21-30  Communications Commission for corresponding elements, and any

21-31  resulting reductions must be offset on a revenue-neutral basis with

21-32  adjustments to other essential retail services subject to regulation by

21-33  the Commission.

21-34     Sec. 31.  NRS 704.68984 is hereby amended to read as

21-35  follows:

21-36     704.68984  The provisions of NRS 704.68904 to 704.68984,

21-37  inclusive, and sections 2 to 9, inclusive, of this act, do not:

21-38     1.  Apply to the Commission in connection with any actions or

21-39  decisions required or permitted by the Telecommunications Act of

21-40  1996, Public Law 104-104, 110 Stat. 56-161; or

21-41     2.  Limit or modify the duties of [an electing] a PAR carrier to a

21-42  competitive supplier regarding the provision of network

21-43  interconnection, unbundled network elements and resold services

21-44  under the provisions of the Telecommunications Act of 1996, Public

21-45  Law 104-104, 110 Stat. 56-161.

22-1      Sec. 32.  This act becomes effective upon passage and

22-2  approval.

 

22-3  H