(Reprinted with amendments adopted on April 18, 2003)

 

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 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 and broadband service; revising certain provisions relating to incumbent local exchange carriers that are regulated under a plan of alternative regulation; amending certain requirements and procedures relating to those carriers; revising provisions relating to the classification of certain telecommunication services; revising provisions relating to flexibility in the pricing and terms of certain telecommunication services; prohibiting the Public Utilities Commission of Nevada from regulating 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:

 

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

1-2  thereto the provisions set forth as sections 2 to 8, inclusive, of this

1-3  act.

1-4  Sec. 2.  “Affiliate of an incumbent local exchange carrier” or

1-5  “affiliate” means a competitive provider of telecommunication

1-6  service that is controlled by or under common control with an

1-7  incumbent local exchange carrier to the extent the competitive

1-8  provider of telecommunication service is doing business within

1-9  any service territory in which its affiliated incumbent local

2-1  exchange carrier has been designated by the Commission as the

2-2  provider of last resort of basic service.

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

2-4  1.  Any voice messaging service or other information service;

2-5  or

2-6  2.  Any telecommunication service that the Commission

2-7  classifies as a deregulated service pursuant to NRS 704.6896.

2-8  Sec. 4.  1.  “PAR carrier” means an incumbent local

2-9  exchange carrier that is regulated under a plan of alternative

2-10  regulation approved by the Commission pursuant to subsection 4

2-11  of NRS 704.040.

2-12      2.  The term includes, but is not limited to, an electing PAR

2-13  carrier.

2-14      Sec. 5.  “Telecommunication” means the transmission,

2-15  between or among points specified by the user, of information of

2-16  the user’s choosing, without change in the form or content of the

2-17  information sent and received, regardless of the facilities used.

2-18      Sec. 6.  “Telecommunication service” means to offer, for a

2-19  fee:

2-20      1.  Any telecommunication directly to the public; or

2-21      2.  Any access service to interexchange carriers.

2-22      Sec. 7.  In exercising flexibility in the pricing or terms of its

2-23  services pursuant to NRS 704.68904 to 704.68984, inclusive, and

2-24  sections 2 to 7, inclusive, of this act, a PAR carrier shall not

2-25  engage in any anticompetitive act or practice or unreasonably

2-26  discriminate among similarly situated customers.

2-27      Sec. 8.  1.  Except as otherwise provided in subsection 2, the

2-28  Commission shall not regulate any broadband service, including

2-29  imposing any requirements relating to the terms, conditions, rates

2-30  or availability of broadband service.

2-31      2.  The provisions of subsection 1 do not:

2-32      (a) Limit or modify the duties of an incumbent local exchange

2-33  carrier or an affiliate of an incumbent local exchange carrier to

2-34  provide unbundled access to network elements to the extent

2-35  required under 47 U.S.C. §§ 251 and 252, and 47 C.F.R. § 51.319

2-36  or any successor regulations issued by the Federal

2-37  Communications Commission, at rates determined in accordance

2-38  with the standards established by the Federal Communications

2-39  Commission pursuant to 47 C.F.R. §§ 51.503 to 51.513, inclusive,

2-40  or any successor regulations; or

2-41      (b) Prohibit the Commission from:

2-42          (1) Considering any revenues, costs and expenses that a

2-43  public utility derives from providing a broadband service, if the

2-44  Commission is determining the rates of the public utility under a

3-1  general rate application that is filed pursuant to subsection 3 of

3-2  NRS 704.110;

3-3       (2) Acting on a consumer complaint pursuant to NRS

3-4  703.310, if the consumer complaint relates to a broadband service

3-5  that is provided by a public utility; or

3-6       (3) Including any appropriate gross operating revenue that

3-7  a public utility derives from providing broadband service when the

3-8  Commission calculates the gross operating revenue of the public

3-9  utility for the purposes of levying and collecting the annual

3-10  assessment in accordance with the provisions of NRS 704.033.

3-11      3.  As used in this section:

3-12      (a) “Affiliate of an incumbent local exchange carrier” has the

3-13  meaning ascribed to it in section 2 of this act.

3-14      (b) “Broadband service” means any two-way service that

3-15  transmits information at a rate that is generally not less than 190

3-16  kilobits per second in at least one direction.

3-17      (c) “Incumbent local exchange carrier” has the meaning

3-18  ascribed to it in NRS 704.68932.

3-19      Sec. 9.  NRS 704.020 is hereby amended to read as follows:

3-20      704.020  1.  “Public utility” or “utility” includes:

3-21      (a) Any person who owns, operates, manages or controls any

3-22  railroad or part of a railroad as a common carrier in this state, or cars

3-23  or other equipment used thereon, or bridges, terminals, or sidetracks,

3-24  or any docks or wharves or storage elevators used in connection

3-25  therewith, whether or not they are owned by the railroad.

3-26      (b) [Telephone companies and other companies which provide

3-27  telecommunication or a related] Any telephone company that

3-28  provides a telecommunication service to the public, but only with

3-29  regard to those operations of the telephone company which consist

3-30  of providing a telecommunication service to the public.

3-31      (c) [Radio] Any radio or broadcasting [instrumentalities

3-32  providing] company or instrumentality that provides a common or

3-33  contract service.

3-34      (d) [All companies which own] Any company that owns cars of

3-35  any kind or character, used and operated as a part of railroad trains,

3-36  in or through this state. All duties required of and penalties imposed

3-37  upon any railroad or any officer or agent thereof are, insofar as

3-38  applicable, required of and imposed upon the owner or operator of

3-39  any telephone[, radio and broadcasting companies, companies

3-40  providing telecommunication or related services] company that

3-41  provides a telecommunication service to the public , any radio or

3-42  broadcasting company or instrumentality that provides a common

3-43  or contract service and [companies which own] any company that

3-44  owns cars of any kind or character, used and operated as a part of

3-45  railroad trains in or through this state, and their officers and agents,

4-1  and the Commission may supervise and control all such companies ,

4-2  instrumentalities and persons to the same extent as railroads.

4-3  2.  “Public utility” or “utility” also includes:

4-4  (a) Any person who owns, operates or controls any ditch, flume,

4-5  tunnel or tunnel and drainage system, charging rates, fares or tolls,

4-6  directly or indirectly.

4-7  (b) Any plant or equipment, or any part of a plant or equipment,

4-8  within this state for the production, delivery or furnishing for or to

4-9  other persons, including private or municipal corporations, heat, gas,

4-10  coal slurry, light, power in any form or by any agency, water for

4-11  business, manufacturing, agricultural or household use, or sewerage

4-12  service, whether or not within the limits of municipalities.

4-13      (c) Any system for the distribution of liquefied petroleum gas to

4-14  10 or more users.

4-15  The Commission may supervise, regulate and control all such

4-16  utilities, subject to the provisions of this chapter and to the exclusion

4-17  of the jurisdiction, regulation and control of such utilities by any

4-18  municipality, town or village, unless otherwise provided by law.

4-19      3.  The provisions of this chapter and the term “public utility”

4-20  apply to all railroads, express companies , car companies and all

4-21  associations of persons, whether or not incorporated, that do any

4-22  business as a common carrier upon or over any line of railroad

4-23  within this state.

4-24      Sec. 10.  NRS 704.040 is hereby amended to read as follows:

4-25      704.040  1.  Every public utility shall furnish reasonably

4-26  adequate service and facilities, and the charges made for any service

4-27  rendered or to be rendered, or for any service in connection

4-28  therewith or incidental thereto, must be just and reasonable.

4-29      2.  Every unjust and unreasonable charge for service of a public

4-30  utility is unlawful.

4-31      3.  The Commission may exempt, to the extent it deems

4-32  reasonable, services related to telecommunication or public utilities

4-33  which provide telecommunication services from any or all of the

4-34  provisions of this chapter, upon a determination after hearing that

4-35  the services are competitive or discretionary and that regulation

4-36  thereof is unnecessary. For the purposes of this subsection, basic

4-37  local exchange service and access services provided to

4-38  interexchange carriers are not discretionary.

4-39      4.  The Commission shall adopt regulations necessary to

4-40  establish [an alternative] a plan of alternative regulation [of] for a

4-41  public utility that provides telecommunication services. The

4-42  [alternative] plan of alternative regulation may include, but is not

4-43  limited to, provisions that:

5-1  (a) Allow adjustment of the rates charged by a public utility that

5-2  provides telecommunication services during the period in which the

5-3  utility elects the [alternative] plan of alternative regulation.

5-4  (b) Provide for flexibility of pricing for discretionary services

5-5  and services that are competitive.

5-6  (c) Specify the provisions of this chapter and chapter 707 of

5-7  NRS that do not apply to a public utility that elects to be regulated

5-8  under the [alternative plan.] plan of alternative regulation.

5-9  (d) Except as otherwise provided in this paragraph and NRS

5-10  704.68952, if the public utility is an incumbent local exchange

5-11  carrier, allow the incumbent local exchange carrier to select the

5-12  duration of the period in which the incumbent local exchange

5-13  carrier is to be regulated under the plan of alternative regulation.

5-14  The incumbent local exchange carrier may not select a period that

5-15  is less than 3 years or more than 5 years. The provisions of this

5-16  paragraph do not apply to a plan of alternative regulation of an

5-17  incumbent local exchange carrier regulated under a plan of

5-18  alternative regulation that was approved by the Commission

5-19  before the effective date of this act.

5-20      5.  A public utility that elects to be regulated under [the

5-21  alternative] a plan of alternative regulation established pursuant to

5-22  subsection 4 is not subject to the remaining provisions of this

5-23  chapter or chapter 707 of NRS to the extent specified pursuant to

5-24  paragraph (c) of subsection 4.

5-25      6.  All providers of telecommunication services which offer the

5-26  same or similar service must be subject to fair and impartial

5-27  regulation, to promote adequate, economical and efficient service.

5-28      7.  The Commission may provide for the levy and collection of

5-29  an assessment, in an amount determined by the Commission, from a

5-30  public utility that provides telecommunication services in order to

5-31  maintain the availability of telephone service. Assessments levied

5-32  pursuant to this subsection must be maintained in a separate fund

5-33  established by the Commission. The Commission shall contract with

5-34  an independent administrator to administer the fund pursuant to

5-35  open competitive bidding procedures established by the

5-36  Commission. The independent administrator shall collect the

5-37  assessments levied and distribute them from the fund pursuant to a

5-38  plan which has been approved by the Commission. Money in the

5-39  fund must be used for the sole purpose of maintaining the

5-40  availability of telephone service.

5-41      8.  [For the purposes of] As used in this section [,

5-42  “interexchange] :

5-43      (a) “Incumbent local exchange carrier” has the meaning

5-44  ascribed to it in NRS 704.68932.

6-1  (b) “Interexchange carrier” means any person providing

6-2  intrastate telecommunications service for a fee between two or more

6-3  exchanges.

6-4  Sec. 11.  NRS 704.100 is hereby amended to read as follows:

6-5  704.100  Except as otherwise provided in NRS 704.075 and

6-6  704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

6-7  of this act or as may otherwise be provided by the Commission

6-8  pursuant to NRS 704.095 or 704.097[:] or pursuant to the

6-9  regulations adopted by the Commission in accordance with

6-10  subsection 4 of NRS 704.040:

6-11      1.  A public utility shall not make changes in any schedule,

6-12  unless the public utility:

6-13      (a) Files with the Commission an application to make the

6-14  proposed changes and the Commission approves the proposed

6-15  changes pursuant to NRS 704.110; or

6-16      (b) Files the proposed changes with the Commission using a

6-17  letter of advice in accordance with the provisions of subsection 4.

6-18      2.  A public utility shall post copies of all proposed schedules

6-19  and all new or amended schedules in the same offices and in

6-20  substantially the same form, manner and places as required by NRS

6-21  704.070 for the posting of copies of schedules that are currently in

6-22  force.

6-23      3.  A public utility may not set forth as justification for a rate

6-24  increase any items of expense or rate base that previously have been

6-25  considered and disallowed by the Commission, unless those items

6-26  are clearly identified in the application and new facts or

6-27  considerations of policy for each item are advanced in the

6-28  application to justify a reversal of the prior decision of the

6-29  Commission.

6-30      4.  Except as otherwise provided in subsection 5, if the

6-31  proposed change in any schedule does not change any rate or will

6-32  result in an increase in annual gross operating revenue, as certified

6-33  by the public utility, in an amount that does not exceed $2,500:

6-34      (a) The public utility may file the proposed change with the

6-35  Commission using a letter of advice in lieu of filing an application;

6-36  and

6-37      (b) The Commission shall determine whether it should dispense

6-38  with a hearing regarding the proposed change.

6-39      5.  If the applicant is a public utility furnishing telephone

6-40  service and the proposed change in any schedule will result in an

6-41  increase in annual gross operating revenue, as certified by the

6-42  applicant, in an amount that does not exceed $50,000 or 10 percent

6-43  of the applicant’s annual gross operating revenue, whichever is less,

6-44  the Commission shall determine whether it should dispense with a

6-45  hearing regarding the proposed change.

7-1  6.  In making the determination pursuant to subsection 4 or 5,

7-2  the Commission shall first consider all timely written protests, any

7-3  presentation that the regulatory operations staff of the Commission

7-4  may desire to present, the application of the public utility and any

7-5  other matters deemed relevant by the Commission.

7-6  Sec. 12.  NRS 704.110 is hereby amended to read as follows:

7-7  704.110  Except as otherwise provided in NRS 704.075 and

7-8  704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

7-9  of this act or as may otherwise be provided by the Commission

7-10  pursuant to NRS 704.095 or 704.097[:] or pursuant to the

7-11  regulations adopted by the Commission in accordance with

7-12  subsection 4 of NRS 704.040:

7-13      1.  If a public utility files with the Commission an application to

7-14  make changes in any schedule, including, without limitation,

7-15  changes that will result in a discontinuance, modification or

7-16  restriction of service, the Commission shall investigate the propriety

7-17  of the proposed changes to determine whether to approve or

7-18  disapprove the proposed changes. If an electric utility files such an

7-19  application and the application is a general rate application or an

7-20  application to clear its deferred accounts, the Consumer’s Advocate

7-21  shall be deemed a party of record.

7-22      2.  Except as otherwise provided in [subsection 3,] subsections

7-23  3 and 11, if a public utility files with the Commission an application

7-24  to make changes in any schedule, not later than 180 days after the

7-25  date on which the application is filed, the Commission shall issue a

7-26  written order approving or disapproving, in whole or in part, the

7-27  proposed changes.

7-28      3.  If a public utility files with the Commission a general rate

7-29  application, the public utility shall submit with its application a

7-30  statement showing the recorded results of revenues, expenses,

7-31  investments and costs of capital for its most recent 12 months for

7-32  which data were available when the application was prepared. In

7-33  determining whether to approve or disapprove any increased rates,

7-34  the Commission shall consider evidence in support of the increased

7-35  rates based upon actual recorded results of operations for the same

7-36  12 months, adjusted for increased revenues, any increased

7-37  investment in facilities, increased expenses for depreciation, certain

7-38  other operating expenses as approved by the Commission and

7-39  changes in the costs of securities which are known and are

7-40  measurable with reasonable accuracy at the time of filing and which

7-41  will become effective within 6 months after the last month of those

7-42  12 months, but the public utility shall not place into effect any

7-43  increased rates until the changes have been experienced and

7-44  certified by the public utility to the Commission and the

7-45  Commission has approved the increased rates. The Commission

8-1  shall also consider evidence supporting expenses for depreciation,

8-2  calculated on an annual basis, applicable to major components of the

8-3  public utility’s plant placed into service during the recorded test

8-4  period or the period for certification as set forth in the application.

8-5  Adjustments to revenues, operating expenses and costs of securities

8-6  must be calculated on an annual basis. Within 90 days after the date

8-7  on which the certification required by this subsection is filed with

8-8  the Commission, or within 180 days after the date on which the

8-9  general rate application is filed with the Commission, whichever

8-10  time is longer, the Commission shall make such order in reference

8-11  to the increased rates as is required by this chapter. An electric

8-12  utility shall file a general rate application pursuant to this subsection

8-13  at least once every 24 months.

8-14      4.  If a public utility files with the Commission an application to

8-15  make changes in any schedule and the Commission does not issue a

8-16  final written order regarding the proposed changes within the time

8-17  required by this section, the proposed changes shall be deemed to be

8-18  approved by the Commission.

8-19      5.  If a public utility files with the Commission a general rate

8-20  application, the public utility shall not file with the Commission

8-21  another general rate application until all pending general rate

8-22  applications filed by that public utility have been decided by the

8-23  Commission unless, after application and hearing, the Commission

8-24  determines that a substantial financial emergency would exist if the

8-25  public utility is not permitted to file another general rate application

8-26  sooner. The provisions of this subsection do not prohibit the public

8-27  utility from filing with the Commission, while a general rate

8-28  application is pending, an application to recover the increased cost

8-29  of purchased fuel, purchased power, or natural gas purchased for

8-30  resale pursuant to subsection 6 or an application to clear its deferred

8-31  accounts pursuant to subsection 7, if the public utility is otherwise

8-32  authorized by those provisions to file such an application.

8-33      6.  A public utility may file an application to recover the

8-34  increased cost of purchased fuel, purchased power, or natural gas

8-35  purchased for resale once every 30 days. The provisions of this

8-36  subsection do not apply to an electric utility using deferred

8-37  accounting pursuant to NRS 704.187.

8-38      7.  Except as otherwise provided in subsection 8 and subsection

8-39  4 of NRS 704.100, if an electric utility using deferred accounting

8-40  pursuant to NRS 704.187 files an application to clear its deferred

8-41  accounts and to change one or more of its rates based upon changes

8-42  in the costs for purchased fuel or purchased power, the Commission,

8-43  after a public hearing and by an appropriate order:

8-44      (a) Shall allow the electric utility to clear its deferred accounts

8-45  by refunding any credit balance or recovering any debit balance

9-1  over a period not to exceed 3 years, as determined by the

9-2  Commission.

9-3  (b) Shall not allow the electric utility to recover any debit

9-4  balance, or portion thereof, in an amount that would result in a rate

9-5  of return during the period of recovery that exceeds the rate of

9-6  return authorized by the Commission in the most recently completed

9-7  rate proceeding for the electric utility.

9-8  8.  Before allowing an electric utility to clear its deferred

9-9  accounts pursuant to subsection 7, the Commission shall determine

9-10  whether the costs for purchased fuel and purchased power that the

9-11  electric utility recorded in its deferred accounts are recoverable and

9-12  whether the revenues that the electric utility collected from

9-13  customers in this state for purchased fuel and purchased power are

9-14  properly recorded and credited in its deferred accounts. The

9-15  Commission shall not allow the electric utility to recover any costs

9-16  for purchased fuel and purchased power that were the result of any

9-17  practice or transaction that was undertaken, managed or performed

9-18  imprudently by the electric utility.

9-19      9.  If an electric utility files an application to clear its deferred

9-20  accounts pursuant to subsection 7 while a general rate application is

9-21  pending, the electric utility shall:

9-22      (a) Submit with its application to clear its deferred accounts

9-23  information relating to the cost of service and rate design; and

9-24      (b) Supplement its general rate application with the same

9-25  information, if such information was not submitted with the general

9-26  rate application.

9-27      10.  A utility facility identified in a 3-year plan submitted

9-28  pursuant to NRS 704.741 and accepted by the Commission for

9-29  acquisition or construction pursuant to NRS 704.751 and the

9-30  regulations adopted pursuant thereto shall be deemed to be a prudent

9-31  investment. The utility may recover all just and reasonable costs of

9-32  planning and constructing such a facility.

9-33      11.  A PAR carrier may, in accordance with this section and

9-34  NRS 704.100, file with the Commission a request to approve or

9-35  change any schedule to provide volume or duration discounts to

9-36  rates for telecommunication service for an offering made to all or

9-37  any class of business customers. The Commission may conduct a

9-38  hearing relating to the request, which must occur within 45 days

9-39  after the date the request is filed with the Commission. The request

9-40  and schedule shall be deemed approved if the request and

9-41  schedule are not disapproved by the Commission within 60 days

9-42  after the date the Commission receives the request.

9-43      12.  For the purpose of determining the rates of a public

9-44  utility that provides telecommunication services under a general

9-45  rate application filed pursuant to subsection 3, the Commission

10-1  shall not consider any revenue, cost or expense that the public

10-2  utility derives from any service that is identified as nonregulated in

10-3  the cost allocation manual of the public utility filed with the

10-4  Federal Communications Commission pursuant to 47 C.F.R. §

10-5  64.903.

10-6      13.  As used in this section [, “electric] :

10-7      (a) “Electric utility” has the meaning ascribed to it in NRS

10-8  704.187.

10-9      (b) “PAR carrier” has the meaning ascribed to it in section 4

10-10  of this act.

10-11     Sec. 13.  NRS 704.68904 is hereby amended to read as

10-12  follows:

10-13     704.68904  As used in NRS 704.68904 to 704.68984, inclusive,

10-14  and sections 2 to 7, inclusive, of this act, unless the context

10-15  otherwise requires, the words and terms defined in NRS 704.68908

10-16  to 704.68944, inclusive, and sections 2 to 6, inclusive, of this act,

10-17  have the meanings ascribed to them in those sections.

10-18     Sec. 14.  NRS 704.68908 is hereby amended to read as

10-19  follows:

10-20     704.68908  “Affected person” means:

10-21     1.  A public utility affected by an action of [an electing] a PAR

10-22  carrier or an action of the Commission relating to [an electing] a

10-23  PAR carrier;

10-24     2.  A person whose utility service or rates are affected by an

10-25  action of [an electing] a PAR carrier or an action of the Commission

10-26  relating to [an electing] a PAR carrier;

10-27     3.  A competitive supplier; or

10-28     4.  The Bureau of Consumer Protection in the Office of the

10-29  Attorney General.

10-30     Sec. 15.  NRS 704.68912 is hereby amended to read as

10-31  follows:

10-32     704.68912  “Basic network service” means the provision of any

10-33  of the following services, unless the [service has been] Commission

10-34  has reclassified the service as a competitive[,] service, a

10-35  deregulated service, a discretionary service or an other essential

10-36  service [by the Commission] pursuant to NRS 704.6896:

10-37     1.  Farmer line service;

10-38     2.  Flat rate service for residential lines;

10-39     3.  Measured rate service for residential lines;

10-40     4.  Flat rate service for residential trunk lines;

10-41     5.  Flat rate service for business lines;

10-42     6.  Measured rate service for business lines;

10-43     7.  Flat rate service for business trunk lines;

10-44     8.  Measured rate service for business trunk lines;

10-45     9.  Suburban service access lines;

11-1      10.  Toll station service access lines;

11-2      11.  Universal lifeline service access lines;

11-3      12.  Access to emergency 911 service; and

11-4      13.  The first single-line directory listing.

11-5      Sec. 16.  NRS 704.6892 is hereby amended to read as follows:

11-6      704.6892  “Competitive supplier” means a person who:

11-7      1.  Is a competitor of [an electing] a PAR carrier with respect to

11-8  a service performed by the [electing] PAR carrier; or

11-9      2.  Wants to enter into competition with [an electing] a PAR

11-10  carrier.

11-11     Sec. 17.  NRS 704.68924 is hereby amended to read as

11-12  follows:

11-13     704.68924  “Discretionary service” means any

11-14  telecommunication service which is not otherwise classified as a

11-15  basic network service, a competitive service , a deregulated service

11-16  or [any] an other essential service, or which is reclassified as a

11-17  discretionary service pursuant to NRS 704.6896.

11-18     Sec. 18.  NRS 704.68928 is hereby amended to read as

11-19  follows:

11-20     704.68928  “Electing PAR carrier” means [an incumbent local

11-21  exchange carrier regulated under an alternative plan of regulation

11-22  pursuant to NRS 704.040 that has elected also to be regulated

11-23  pursuant to NRS 704.68904 to 704.68984, inclusive, by filing with

11-24  the Commission a statement] a PAR carrier which:

11-25     1.  Makes an election to become an electing PAR carrier

11-26  pursuant to NRS 704.68948[.] ; and

11-27     2.  Is regulated in the manner described in that section.

11-28     Sec. 19.  NRS 704.68948 is hereby amended to read as

11-29  follows:

11-30     704.68948  [An incumbent local exchange carrier that is

11-31  regulated under an alternative plan of regulation pursuant to NRS

11-32  704.040 may elect also to be]

11-33     1.  A PAR carrier may make an election to become an electing

11-34  PAR carrier that is regulated pursuant to NRS 704.68952,

11-35  704.68956 and 704.6898. Such regulation is in addition to any

11-36  other regulation that otherwise applies to the PAR carrier

11-37  pursuant to NRS 704.68904 to 704.68984, inclusive, [by filing] and

11-38  sections 2 to 7, inclusive, of this act.

11-39     2.  To make an election pursuant to this section, the PAR

11-40  carrier must file with the Commission a written statement of its

11-41  election to [be so regulated.] become an electing PAR carrier. The

11-42  written statement must:

11-43     (a) Identify the PAR carrier; and

11-44     (b) Include the date that its election becomes effective.

12-1      Sec. 20.  NRS 704.68952 is hereby amended to read as

12-2  follows:

12-3      704.68952  1.  [An] Except as otherwise provided in this

12-4  section, if a PAR carrier makes an election to become an electing

12-5  PAR carrier pursuant to NRS 704.68948, on and after the date

12-6  that the election becomes effective:

12-7      (a) The electing PAR carrier is not subject to any review of

12-8  earnings, monitoring of the rate base, or any other regulation by the

12-9  Commission relating to the net income or rate of return of

12-10  the electing PAR carrier[, unless the electing carrier files with the

12-11  Commission a request to:

12-12     (a) Terminate its participation in the alternative plan of

12-13  regulation pursuant to NRS 704.040; or

12-14     (b) Continue its participation in the alternative plan of regulation

12-15  pursuant to NRS 704.040.

12-16     2.  Except as otherwise provided in subsection 1, the] ;

12-17     (b) The Commission shall not consider the rate of return, rate

12-18  base or any other earnings of the electing PAR carrier in connection

12-19  with any change in rates[.

12-20     3.  Except for an electing carrier that files a request with the

12-21  Commission pursuant to subsection 1, the] ;

12-22     (c) The Commission shall not decrease the rate of a basic

12-23  network service provided by the electing PAR carrier unless the

12-24  electing PAR carrier agrees to the decrease in the rate[.

12-25     4.  Except for a telecommunication service reclassified pursuant

12-26  to NRS 704.6896, or except where an electing carrier elects to

12-27  continue participation in an alternative plan of regulation pursuant to

12-28  paragraph (b) of subsection 1, an] ; and

12-29     (d) The electing PAR carrier shall not , during the term of its

12-30  plan of alternative regulation, increase any rate that the electing

12-31  PAR carrier charges for a basic network [services.

12-32     5.] service, other than the rate for a telecommunication service

12-33  that is:

12-34         (1) Reclassified pursuant to NRS 704.6896; or

12-35         (2) Offered by the electing PAR carrier pursuant to NRS

12-36  704.68964, 704.68968 or 704.68972.

12-37     2.  An electing PAR carrier may terminate its plan of

12-38  alternative regulation at any time by filing with the Commission a

12-39  notice of its intention to terminate the plan. The termination is

12-40  effective on the date the electing PAR carrier specifies in the

12-41  notice.

12-42     3.  If an electing PAR carrier terminates its plan of alternative

12-43  regulation pursuant to subsection 2, the electing PAR carrier shall

12-44  file with the Commission a general rate application pursuant to

12-45  subsection 3 of NRS 704.110 not later than 180 days after the date

13-1  that the termination of its plan of alternative regulation becomes

13-2  effective.

13-3      4.  If an electing PAR carrier does not terminate its plan of

13-4  alternative regulation pursuant to subsection 2, the plan

13-5  terminates at the end of the first 5-year period after the date the

13-6  plan becomes effective and at the end of each successive 5-year

13-7  period after that date unless:

13-8      (a) Not later than 180 days before the end of the first 5-year

13-9  period after the date the plan becomes effective and at the end of

13-10  each successive 5-year period after that date, the electing PAR

13-11  carrier files with the Commission a written request to continue its

13-12  participation in the plan of alternative regulation for another

13-13  5-year period; and

13-14     (b) The Commission grants the written request of the electing

13-15  PAR carrier to continue its participation in the plan of alternative

13-16  regulation for another 5-year period in accordance with the

13-17  provisions of this section.

13-18     5.  If an electing PAR carrier files a written request pursuant

13-19  to subsection 4, the written request must be accompanied by a

13-20  written report prepared in a form prescribed by the Commission.

13-21  The written report must:

13-22     (a) Contain a summary of the operations of the electing PAR

13-23  carrier for the period covering the immediately preceding 5 fiscal

13-24  years; and

13-25     (b) Include, but is not limited to, the rate of return and

13-26  earnings of the electing PAR carrier for the period specified in

13-27  paragraph (a), other than the rate of return and earnings obtained

13-28  from deregulated services.

13-29     6.  Not later than 180 days after the date that an electing PAR

13-30  carrier files a written request pursuant to subsection 4, the

13-31  Commission shall conduct and complete a proceeding to review

13-32  the written request and report. The Commission shall not allow

13-33  any person to be a party to the proceeding other than the electing

13-34  PAR carrier, the regulatory operations staff of the Commission

13-35  and the staff of the Bureau of Consumer Protection in the Office

13-36  of the Attorney General.

13-37     7.  In the proceeding, the Commission shall:

13-38     (a) Determine whether the existing rates of the electing PAR

13-39  carrier for basic network services are just and reasonable

13-40  pursuant to subsection 1 of NRS 704.040; and

13-41     (b) Based upon that determination, issue an order which:

13-42         (1) Grants the written request of the electing PAR carrier

13-43  and authorizes the electing PAR carrier to participate in the plan

13-44  of alternative regulation for another 5 years; or

14-1          (2) Denies the written request of the electing PAR carrier

14-2  and directs the electing PAR carrier to file with the Commission a

14-3  general rate application pursuant to subsection 3 of NRS 704.110

14-4  not later than 180 days after the date the Commission issues the

14-5  order.

14-6      8. Except for universal service support for lifeline or link-up

14-7  services provided pursuant to 47 U.S.C. § 214 or as otherwise

14-8  determined by the Commission, an electing PAR carrier is not

14-9  eligible to receive money from the fund created pursuant to

14-10  subsection 7 of NRS 704.040.

14-11     9.  For the purposes of this section:

14-12     (a) The plan of alternative regulation for an electing PAR

14-13  carrier shall be deemed to have a term of 5 years.

14-14     (b) If a PAR carrier is operating as an electing PAR carrier on

14-15  July 1, 2003, the first 5-year term for its plan of alternative

14-16  regulation shall be deemed to begin on July 1, 2003.

14-17     (c) If a PAR carrier makes an election to become an electing

14-18  PAR carrier after July 1, 2003, the first 5-year term for its plan of

14-19  alternative regulation shall be deemed to begin on the date that its

14-20  election becomes effective.

14-21     Sec. 21.  NRS 704.68956 is hereby amended to read as

14-22  follows:

14-23     704.68956  [Nothing in] The provisions of NRS 704.68904 to

14-24  704.68984, inclusive, [authorizes] and sections 2 to 7, inclusive, of

14-25  this act do not authorize an electing PAR carrier, without the

14-26  approval of the Commission, to discontinue or otherwise change the

14-27  terms and conditions relating to the provision of the basic network

14-28  services identified in subsections 1 to 4, inclusive, of NRS

14-29  704.68912, as set forth in the tariffs of the electing PAR carrier that

14-30  are in effect on October 1, 1999.

14-31     Sec. 22.  NRS 704.6896 is hereby amended to read as follows:

14-32     704.6896  1.  The Commission may, at any time, upon its own

14-33  motion or that of any person, reclassify a basic network service,

14-34  except access to emergency 911 service.

14-35     2.  The Commission shall establish by regulation criteria for

14-36  determining whether a service should be reclassified, except that the

14-37  Commission shall not adopt criteria for determining whether a

14-38  service should be reclassified that would deny a request to reclassify

14-39  a basic network service to another classification of service within an

14-40  exchange where a competitive supplier operates and provides that

14-41  service, on the basis that there is not a competitive supplier of that

14-42  service in any other portion of the State.

14-43     3.  If the Commission receives a written request for

14-44  reclassification from a PAR carrier, the Commission shall act

15-1  upon the request not later than 120 days after the date the

15-2  Commission receives the request.

15-3      Sec. 23.  NRS 704.68964 is hereby amended to read as

15-4  follows:

15-5      704.68964  1.  [An electing] A PAR carrier may, pursuant to

15-6  this section and in accordance with NRS 704.68976, exercise

15-7  flexibility in the pricing , the terms or both the pricing and terms

15-8  of:

15-9      (a) [Competitive services and discretionary services.] Any

15-10  competitive service or discretionary service. The Commission shall

15-11  not specify a maximum rate for any competitive [services] service

15-12  or discretionary [services of the electing carrier. The electing carrier

15-13  shall, with regard to any competitive or discretionary service that it

15-14  provides, set the price of that service above the price floor of the

15-15  service.

15-16     (b) A] service provided by the PAR carrier.

15-17     (b) Any package of services, which may include basic network

15-18  services, competitive services, discretionary services , [and] other

15-19  essential services[.] and services and products that are not subject

15-20  to the jurisdiction of the Commission. The Commission shall not

15-21  specify a maximum rate for a package of services provided by the

15-22  PAR carrier.

15-23     (c) Any tariffed service, if the PAR carrier needs to exercise

15-24  flexibility in the pricing, the terms or both the pricing and terms of

15-25  the tariffed service in a contract for service to an individual

15-26  customer, to respond to competition by one or more competitive

15-27  suppliers in the market for telecommunication service for business

15-28  customers. The flexibility exercised by the PAR carrier pursuant to

15-29  this paragraph:

15-30         (1) May include, but is not limited to, using volume or term

15-31  discounts, and modifications to tariffed terms and conditions; and

15-32         (2) May not be used to provide volume or duration

15-33  discounts to rates or modifications to tariffed terms and conditions

15-34  for telecommunication service for an offering made to all or any

15-35  class of business customers.

15-36     2.  Except as otherwise provided in this subsection, [an

15-37  electing] a PAR carrier may, upon [30-days’] 10-days’ notice to the

15-38  Commission in writing, exercise flexibility in the pricing , the terms

15-39  or both the pricing and terms of [its] any service or package of

15-40  services that may be subject to such flexibility pursuant to

15-41  subsection 1 , and the PAR carrier is exempt, with respect to the

15-42  pricing of [its] each such service or package of services, from

15-43  the provisions of NRS 704.100 and 704.110 and the regulations of

15-44  the Commission relating thereto. The notice must include a

15-45  description in reasonable detail of:

16-1      (a) The characteristics of [the] each service or package of

16-2  services that will be subject to such flexibility ; [in pricing;]

16-3      (b) The terms and conditions applicable to [the] each service or

16-4  package of services;

16-5      (c) The nature of any limitations on the duration or geographical

16-6  availability of [the] each service or package of services;

16-7      (d) The price or prices of [the services or packages] each service

16-8  or package of services; [and]

16-9      (e) A certificate which provides that [the electing] :

16-10         (1) The PAR carrier has prepared a cost study of the price

16-11  floor to support the price or prices [for] of each service that will be

16-12  subject to such flexibility or each service included in the package

16-13  of services that will be subject to such flexibility; and [that, on]

16-14         (2) On and after the date on which the notice is filed with the

16-15  Commission, any affected person may, upon request, inspect and

16-16  copy the cost study, subject to reasonable terms and conditions of

16-17  any applicable confidentiality and nondisclosure agreement relating

16-18  to the service or package of services [.] ; and

16-19     (f) A form of notice that will be posted by the

16-20  Commission.

16-21  The notice requirements of this subsection do not apply to [an

16-22  electing] a PAR carrier with respect to the pricing or terms of any

16-23  competitive service or any package of services [or for packages]

16-24  comprised exclusively of competitive services.

16-25     3.  The price or prices of each service that is subject to

16-26  flexibility pursuant to this section must not be lower than the price

16-27  floor for that service. The price [for a] or prices of each package of

16-28  services that is subject to flexibility pursuant to this section must

16-29  not be lower than the lesser of:

16-30     (a) The sum of the price floors for each [of the services

16-31  contained] service included in the package; or

16-32     (b) The sum of the prices of the basic network services, as set

16-33  forth in the tariffs of the [electing] PAR carrier, and the price floors

16-34  for each of the other services [contained] included in the package.

16-35     4.  [The Commission shall not specify a maximum rate for a

16-36  package of services.

16-37     5.  Each of the services] Each service included in a package

16-38  [pursuant to paragraph (b) of subsection 1] of services that is

16-39  subject to flexibility pursuant to this section must be made

16-40  available on an individual basis.

16-41     [6.  An electing]

16-42     5.  A PAR carrier must provide [30-days’] 10-days’ notice to

16-43  the Commission in writing before the [electing] PAR carrier may

16-44  implement any amendment or change to [an existing service

16-45  noticed] a service or package of services which is subject to

17-1  flexibility pursuant to this section and for which the PAR carrier

17-2  had previously provided notice to the Commission pursuant to

17-3  subsection 2.

17-4      6.  Notwithstanding any other provision of law, if a PAR

17-5  carrier charges a customer a fixed price or amount for a package

17-6  of services that is subject to flexibility pursuant to this section, the

17-7  PAR carrier, in any bill or statement for the package of services, is

17-8  permitted to specify only the fixed price or amount for the package

17-9  of services and is not required to:

17-10     (a) Identify each separate service or component included in

17-11  the package of services; or

17-12     (b) Specify the unit price or amount charged for each separate

17-13  service or component included in the package of services.

17-14     Sec. 24.  NRS 704.68968 is hereby amended to read as

17-15  follows:

17-16     704.68968  [An electing] A PAR carrier may establish

17-17  promotional price reductions for services upon a 1-day notice to the

17-18  Commission. The promotional price reduction for a service may be

17-19  offered for not more than 90 days during any 12 consecutive months

17-20  and must be given in all geographic areas served by the [electing]

17-21  PAR carrier, where facilities permit, on a nondiscriminatory basis

17-22  during the 12-month period.

17-23     Sec. 25.  NRS 704.68972 is hereby amended to read as

17-24  follows:

17-25     704.68972  1.  [An electing] A PAR carrier may introduce new

17-26  services upon [30-days’] 10-days’ notice to the Commission in

17-27  writing. The notice must include a description in reasonable detail

17-28  of:

17-29     (a) The characteristics of each new service;

17-30     (b) The terms and conditions applicable to each new service;

17-31     (c) The nature of any limitations on the duration or geographical

17-32  availability of each new service;

17-33     (d) The price or prices of each new service; and

17-34     (e) A certificate [that] which provides that [the electing] :

17-35         (1) The PAR carrier has prepared a cost study of the price

17-36  floor to support the price or prices [for] of each new service ; and

17-37  [that, on]

17-38         (2) On and after the date on which the notice is filed with the

17-39  Commission, any affected person may, upon request, inspect and

17-40  copy the cost study, subject to reasonable terms and conditions of

17-41  any applicable confidentiality and nondisclosure agreement.

17-42     2.  Each new service is subject to the conditions set forth in

17-43  NRS 704.68964.

18-1      3.  Each new service is exempt from the provisions of NRS

18-2  704.100 and 704.110 and the regulations of the Commission relating

18-3  thereto.

18-4      4.  Unless otherwise classified by the Commission as a

18-5  [competitive] deregulated service pursuant to its regulations, a new

18-6  service must be classified as a [discretionary] competitive service

18-7  for which the Commission shall not specify a maximum rate. The

18-8  [electing] PAR carrier shall set the price of the new service above

18-9  the price floor [of the] for that service.

18-10     5.  As used in this section, a “new service” means a

18-11  telecommunication service:

18-12     (a) That provides a function, feature or capability which is

18-13  materially different from any service or services previously offered

18-14  by the carrier; or

18-15     (b) Combines two or more previously provided new services.

18-16     Sec. 26.  NRS 704.68976 is hereby amended to read as

18-17  follows:

18-18     704.68976  The rates charged by [an electing] a PAR carrier for

18-19  services, except for competitive services, must be geographically

18-20  averaged throughout the service territory in which the [electing]

18-21  PAR carrier is the provider of last resort, as determined pursuant to

18-22  regulations adopted by the Commission, or within such other

18-23  smaller geographic area as the Commission deems appropriate to

18-24  balance the interests of all customers and providers.

18-25     Sec. 27.  NRS 704.6898 is hereby amended to read as follows:

18-26     704.6898  The intrastate access prices charged by an electing

18-27  PAR carrier must not exceed the interstate access prices charged by

18-28  the electing PAR carrier as authorized by the Federal

18-29  Communications Commission for corresponding elements, and any

18-30  resulting reductions must be offset on a revenue-neutral basis with

18-31  adjustments to other essential retail services subject to regulation by

18-32  the Commission.

18-33     Sec. 28.  NRS 704.68984 is hereby amended to read as

18-34  follows:

18-35     704.68984  The provisions of NRS 704.68904 to 704.68984,

18-36  inclusive, and sections 2 to 7, inclusive, of this act do not:

18-37     1.  Apply to the Commission in connection with any actions or

18-38  decisions required or permitted by the Telecommunications Act of

18-39  1996, Public Law 104-104, 110 Stat. 56-161; or

18-40     2.  Limit or modify the duties of [an electing] a PAR carrier to a

18-41  competitive supplier regarding the provision of network

18-42  interconnection, unbundled network elements and resold services

18-43  under the provisions of the Telecommunications Act of 1996, Public

18-44  Law 104-104, 110 Stat. 56-161.

19-1      Sec. 29.  This act becomes effective upon passage and

19-2  approval.

 

19-3  H