(Reprinted with amendments adopted on June 1, 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 under certain circumstances; requiring a consumer to be notified of the duration of a call under certain circumstances; 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

2-1  provider of telecommunication service is doing business within

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

2-3  exchange carrier has been designated by the Commission as the

2-4  provider of last resort of basic service.

2-5  Sec. 3.  “Deregulated service” means:

2-6  1.  Any voice messaging service or other information service;

2-7  or

2-8  2.  Any telecommunication service that the Commission

2-9  classifies as a deregulated service pursuant to NRS 704.6896.

2-10      Sec. 4.  1.  “PAR carrier” means an incumbent local

2-11  exchange carrier that is regulated under a plan of alternative

2-12  regulation approved by the Commission pursuant to subsection 4

2-13  of NRS 704.040.

2-14      2.  The term includes, but is not limited to, an electing PAR

2-15  carrier.

2-16      Sec. 5.  “Telecommunication” means the transmission,

2-17  between or among points specified by the user, of information of

2-18  the user’s choosing, without change in the form or content of the

2-19  information sent and received, regardless of the facilities used.

2-20      Sec. 6.  “Telecommunication service” means the offering of

2-21  telecommunication for a fee directly to the public, or such classes

2-22  of users as to be effectively available directly to the public,

2-23  regardless of the facilities used.

2-24      Sec. 7.  In exercising flexibility in the pricing or terms of its

2-25  services pursuant to NRS 704.68904 to 704.68984, inclusive, and

2-26  sections 2 to 7, inclusive, of this act, a PAR carrier shall not

2-27  engage in any anticompetitive act or practice or unreasonably

2-28  discriminate among similarly situated customers.

2-29      Sec. 7.5. 1.  Except as otherwise provided in subsection 2,

2-30  each public utility which provides telecommunication services

2-31  shall provide timely written notice to a customer of the duration of

2-32  each call that is billed to the customer, reported in minutes,

2-33  seconds or any fraction thereof, if the charges for the

2-34  telecommunication services are calculated, in whole or in part, on

2-35  the basis of the duration of the call.

2-36      2.  The provisions of this section do not apply to measured

2-37  rate service that is regulated by the Commission.

2-38      Sec. 8.  1.  Except as otherwise provided in subsection 2 and

2-39  NRS 704.68984, the Commission shall not regulate any broadband

2-40  service, including imposing any requirements relating to the

2-41  terms, conditions, rates or availability of broadband service.

2-42      2.  The provisions of subsection 1 do not limit or modify the

2-43  authority of the Commission to:

2-44      (a) Consider any revenues, costs and expenses that a public

2-45  utility derives from providing a broadband service, if the

3-1  Commission is determining the rates of the public utility under a

3-2  general rate application that is filed pursuant to subsection 3 of

3-3  NRS 704.110;

3-4  (b) Act on a complaint filed pursuant to NRS 703.310, if the

3-5  complaint relates to a broadband service that is provided by a

3-6  public utility;

3-7  (c) Include any appropriate gross operating revenue that a

3-8  public utility derives from providing broadband service when the

3-9  Commission calculates the gross operating revenue of the public

3-10  utility for the purposes of levying and collecting the annual

3-11  assessment in accordance with the provisions of NRS 704.033; or

3-12      (d) Determine the rates, terms and conditions of intrastate

3-13  special access services.

3-14      3.  As used in this section:

3-15      (a) “Affiliate of an incumbent local exchange carrier” has the

3-16  meaning ascribed to it in section 2 of this act.

3-17      (b) “Broadband service” means any two-way service that

3-18  transmits information at a rate that is generally not less than 200

3-19  kilobits per second in at least one direction.

3-20      (c) “Incumbent local exchange carrier” has the meaning

3-21  ascribed to it in NRS 704.68932.

3-22      Sec. 9.  NRS 704.020 is hereby amended to read as follows:

3-23      704.020  1.  “Public utility” or “utility” includes:

3-24      (a) Any person who owns, operates, manages or controls any

3-25  railroad or part of a railroad as a common carrier in this state, or cars

3-26  or other equipment used thereon, or bridges, terminals, or sidetracks,

3-27  or any docks or wharves or storage elevators used in connection

3-28  therewith, whether or not they are owned by the railroad.

3-29      (b) [Telephone companies and other companies which provide

3-30  telecommunication or a related] Any telephone company that

3-31  provides a telecommunication service to the public, but only with

3-32  regard to those operations of the telephone company which consist

3-33  of providing a telecommunication service to the public.

3-34      (c) [Radio] Any radio or broadcasting [instrumentalities

3-35  providing] company or instrumentality that provides a common or

3-36  contract service.

3-37      (d) [All companies which own] Any company that owns cars of

3-38  any kind or character, used and operated as a part of railroad trains,

3-39  in or through this state. All duties required of and penalties imposed

3-40  upon any railroad or any officer or agent thereof are, insofar as

3-41  applicable, required of and imposed upon the owner or operator of

3-42  any telephone[, radio and broadcasting companies, companies

3-43  providing telecommunication or related services] company that

3-44  provides a telecommunication service to the public , any radio or

3-45  broadcasting company or instrumentality that provides a common

4-1  or contract service and [companies which own] any company that

4-2  owns cars of any kind or character, used and operated as a part of

4-3  railroad trains in or through this state, and their officers and agents,

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

4-5  instrumentalities and persons to the same extent as railroads.

4-6  2.  “Public utility” or “utility” also includes:

4-7  (a) Any person who owns, operates or controls any ditch, flume,

4-8  tunnel or tunnel and drainage system, charging rates, fares or tolls,

4-9  directly or indirectly.

4-10      (b) Any plant or equipment, or any part of a plant or equipment,

4-11  within this state for the production, delivery or furnishing for or to

4-12  other persons, including private or municipal corporations, heat, gas,

4-13  coal slurry, light, power in any form or by any agency, water for

4-14  business, manufacturing, agricultural or household use, or sewerage

4-15  service, whether or not within the limits of municipalities.

4-16      (c) Any system for the distribution of liquefied petroleum gas to

4-17  10 or more users.

4-18  The Commission may supervise, regulate and control all such

4-19  utilities, subject to the provisions of this chapter and to the exclusion

4-20  of the jurisdiction, regulation and control of such utilities by any

4-21  municipality, town or village, unless otherwise provided by law.

4-22      3.  The provisions of this chapter and the term “public utility”

4-23  apply to all railroads, express companies , car companies and all

4-24  associations of persons, whether or not incorporated, that do any

4-25  business as a common carrier upon or over any line of railroad

4-26  within this state.

4-27      Sec. 10.  NRS 704.040 is hereby amended to read as follows:

4-28      704.040  1.  Every public utility shall furnish reasonably

4-29  adequate service and facilities, and the charges made for any service

4-30  rendered or to be rendered, or for any service in connection

4-31  therewith or incidental thereto, must be just and reasonable.

4-32      2.  Every unjust and unreasonable charge for service of a public

4-33  utility is unlawful.

4-34      3.  The Commission may exempt, to the extent it deems

4-35  reasonable, services related to telecommunication or public utilities

4-36  which provide telecommunication services from any or all of the

4-37  provisions of this chapter, upon a determination after hearing that

4-38  the services are competitive or discretionary and that regulation

4-39  thereof is unnecessary. For the purposes of this subsection, basic

4-40  local exchange service and access services provided to

4-41  interexchange carriers are not discretionary.

4-42      4.  The Commission shall adopt regulations necessary to

4-43  establish [an alternative] a plan of alternative regulation [of] for a

4-44  public utility that provides telecommunication services. The

5-1  [alternative] plan of alternative regulation may include, but is not

5-2  limited to, provisions that:

5-3  (a) Allow adjustment of the rates charged by a public utility that

5-4  provides telecommunication services during the period in which the

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

5-6  (b) Provide for flexibility of pricing for discretionary services

5-7  and services that are competitive.

5-8  (c) Specify the provisions of this chapter and chapter 707 of

5-9  NRS that do not apply to a public utility that elects to be regulated

5-10  under the [alternative plan.] plan of alternative regulation.

5-11      (d) Except as otherwise provided in this paragraph and NRS

5-12  704.68952, if the public utility is an incumbent local exchange

5-13  carrier, allow the incumbent local exchange carrier to select the

5-14  duration of the period in which the incumbent local exchange

5-15  carrier is to be regulated under the plan of alternative regulation.

5-16  The incumbent local exchange carrier may not select a period that

5-17  is less than 3 years or more than 5 years. The provisions of this

5-18  paragraph do not apply to a plan of alternative regulation of an

5-19  incumbent local exchange carrier regulated under a plan of

5-20  alternative regulation that was approved by the Commission

5-21  before the effective date of this act.

5-22      5.  A public utility that elects to be regulated under [the

5-23  alternative] a plan of alternative regulation established pursuant to

5-24  subsection 4 is not subject to the remaining provisions of this

5-25  chapter or chapter 707 of NRS to the extent specified pursuant to

5-26  paragraph (c) of subsection 4.

5-27      6.  All providers of telecommunication services which offer the

5-28  same or similar service must be subject to fair and impartial

5-29  regulation, to promote adequate, economical and efficient service.

5-30      7.  The Commission may provide for the levy and collection of

5-31  an assessment, in an amount determined by the Commission, from a

5-32  public utility that provides telecommunication services in order to

5-33  maintain the availability of telephone service. Assessments levied

5-34  pursuant to this subsection must be maintained in a separate fund

5-35  established by the Commission. The Commission shall contract with

5-36  an independent administrator to administer the fund pursuant to

5-37  open competitive bidding procedures established by the

5-38  Commission. The independent administrator shall collect the

5-39  assessments levied and distribute them from the fund pursuant to a

5-40  plan which has been approved by the Commission. Money in the

5-41  fund must be used for the sole purpose of maintaining the

5-42  availability of telephone service.

5-43      8.  [For the purposes of] As used in this section [,

5-44  “interexchange] :

6-1  (a) “Incumbent local exchange carrier” has the meaning

6-2  ascribed to it in NRS 704.68932.

6-3  (b) “Interexchange carrier” means any person providing

6-4  intrastate telecommunications service for a fee between two or more

6-5  exchanges.

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

6-7  704.100  Except as otherwise provided in NRS 704.075 and

6-8  704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

6-9  of this act or as may otherwise be provided by the Commission

6-10  pursuant to NRS 704.095 or 704.097[:] or pursuant to the

6-11  regulations adopted by the Commission in accordance with

6-12  subsection 4 of NRS 704.040:

6-13      1.  A public utility shall not make changes in any schedule,

6-14  unless the public utility:

6-15      (a) Files with the Commission an application to make the

6-16  proposed changes and the Commission approves the proposed

6-17  changes pursuant to NRS 704.110; or

6-18      (b) Files the proposed changes with the Commission using a

6-19  letter of advice in accordance with the provisions of subsection 4.

6-20      2.  A public utility shall post copies of all proposed schedules

6-21  and all new or amended schedules in the same offices and in

6-22  substantially the same form, manner and places as required by NRS

6-23  704.070 for the posting of copies of schedules that are currently in

6-24  force.

6-25      3.  A public utility may not set forth as justification for a rate

6-26  increase any items of expense or rate base that previously have been

6-27  considered and disallowed by the Commission, unless those items

6-28  are clearly identified in the application and new facts or

6-29  considerations of policy for each item are advanced in the

6-30  application to justify a reversal of the prior decision of the

6-31  Commission.

6-32      4.  Except as otherwise provided in subsection 5, if the

6-33  proposed change in any schedule does not change any rate or will

6-34  result in an increase in annual gross operating revenue, as certified

6-35  by the public utility, in an amount that does not exceed $2,500:

6-36      (a) The public utility may file the proposed change with the

6-37  Commission using a letter of advice in lieu of filing an application;

6-38  and

6-39      (b) The Commission shall determine whether it should dispense

6-40  with a hearing regarding the proposed change.

6-41      5.  If the applicant is a public utility furnishing telephone

6-42  service and the proposed change in any schedule will result in an

6-43  increase in annual gross operating revenue, as certified by the

6-44  applicant, in an amount that does not exceed $50,000 or 10 percent

6-45  of the applicant’s annual gross operating revenue, whichever is less,

7-1  the Commission shall determine whether it should dispense with a

7-2  hearing regarding the proposed change.

7-3  6.  In making the determination pursuant to subsection 4 or 5,

7-4  the Commission shall first consider all timely written protests, any

7-5  presentation that the regulatory operations staff of the Commission

7-6  may desire to present, the application of the public utility and any

7-7  other matters deemed relevant by the Commission.

7-8  Sec. 12.  NRS 704.110 is hereby amended to read as follows:

7-9  704.110  Except as otherwise provided in NRS 704.075 and

7-10  704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive,

7-11  of this act or as may otherwise be provided by the Commission

7-12  pursuant to NRS 704.095 or 704.097[:] or pursuant to the

7-13  regulations adopted by the Commission in accordance with

7-14  subsection 4 of NRS 704.040:

7-15      1.  If a public utility files with the Commission an application to

7-16  make changes in any schedule, including, without limitation,

7-17  changes that will result in a discontinuance, modification or

7-18  restriction of service, the Commission shall investigate the propriety

7-19  of the proposed changes to determine whether to approve or

7-20  disapprove the proposed changes. If an electric utility files such an

7-21  application and the application is a general rate application or an

7-22  application to clear its deferred accounts, the Consumer’s Advocate

7-23  shall be deemed a party of record.

7-24      2.  Except as otherwise provided in [subsection 3,] subsections

7-25  3 and 11, if a public utility files with the Commission an application

7-26  to make changes in any schedule, not later than 180 days after the

7-27  date on which the application is filed, the Commission shall issue a

7-28  written order approving or disapproving, in whole or in part, the

7-29  proposed changes.

7-30      3.  If a public utility files with the Commission a general rate

7-31  application, the public utility shall submit with its application a

7-32  statement showing the recorded results of revenues, expenses,

7-33  investments and costs of capital for its most recent 12 months for

7-34  which data were available when the application was prepared. In

7-35  determining whether to approve or disapprove any increased rates,

7-36  the Commission shall consider evidence in support of the increased

7-37  rates based upon actual recorded results of operations for the same

7-38  12 months, adjusted for increased revenues, any increased

7-39  investment in facilities, increased expenses for depreciation, certain

7-40  other operating expenses as approved by the Commission and

7-41  changes in the costs of securities which are known and are

7-42  measurable with reasonable accuracy at the time of filing and which

7-43  will become effective within 6 months after the last month of those

7-44  12 months, but the public utility shall not place into effect any

7-45  increased rates until the changes have been experienced and

8-1  certified by the public utility to the Commission and the

8-2  Commission has approved the increased rates. The Commission

8-3  shall also consider evidence supporting expenses for depreciation,

8-4  calculated on an annual basis, applicable to major components of the

8-5  public utility’s plant placed into service during the recorded test

8-6  period or the period for certification as set forth in the application.

8-7  Adjustments to revenues, operating expenses and costs of securities

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

8-9  on which the certification required by this subsection is filed with

8-10  the Commission, or within 180 days after the date on which the

8-11  general rate application is filed with the Commission, whichever

8-12  time is longer, the Commission shall make such order in reference

8-13  to the increased rates as is required by this chapter. An electric

8-14  utility shall file a general rate application pursuant to this subsection

8-15  at least once every 24 months.

8-16      4.  If a public utility files with the Commission an application to

8-17  make changes in any schedule and the Commission does not issue a

8-18  final written order regarding the proposed changes within the time

8-19  required by this section, the proposed changes shall be deemed to be

8-20  approved by the Commission.

8-21      5.  If a public utility files with the Commission a general rate

8-22  application, the public utility shall not file with the Commission

8-23  another general rate application until all pending general rate

8-24  applications filed by that public utility have been decided by the

8-25  Commission unless, after application and hearing, the Commission

8-26  determines that a substantial financial emergency would exist if the

8-27  public utility is not permitted to file another general rate application

8-28  sooner. The provisions of this subsection do not prohibit the public

8-29  utility from filing with the Commission, while a general rate

8-30  application is pending, an application to recover the increased cost

8-31  of purchased fuel, purchased power, or natural gas purchased for

8-32  resale pursuant to subsection 6 or an application to clear its deferred

8-33  accounts pursuant to subsection 7, if the public utility is otherwise

8-34  authorized by those provisions to file such an application.

8-35      6.  A public utility may file an application to recover the

8-36  increased cost of purchased fuel, purchased power, or natural gas

8-37  purchased for resale once every 30 days. The provisions of this

8-38  subsection do not apply to an electric utility using deferred

8-39  accounting pursuant to NRS 704.187.

8-40      7.  Except as otherwise provided in subsection 8 and subsection

8-41  4 of NRS 704.100, if an electric utility using deferred accounting

8-42  pursuant to NRS 704.187 files an application to clear its deferred

8-43  accounts and to change one or more of its rates based upon changes

8-44  in the costs for purchased fuel or purchased power, the Commission,

8-45  after a public hearing and by an appropriate order:

9-1  (a) Shall allow the electric utility to clear its deferred accounts

9-2  by refunding any credit balance or recovering any debit balance

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

9-4  Commission.

9-5  (b) Shall not allow the electric utility to recover any debit

9-6  balance, or portion thereof, in an amount that would result in a rate

9-7  of return during the period of recovery that exceeds the rate of

9-8  return authorized by the Commission in the most recently completed

9-9  rate proceeding for the electric utility.

9-10      8.  Before allowing an electric utility to clear its deferred

9-11  accounts pursuant to subsection 7, the Commission shall determine

9-12  whether the costs for purchased fuel and purchased power that the

9-13  electric utility recorded in its deferred accounts are recoverable and

9-14  whether the revenues that the electric utility collected from

9-15  customers in this state for purchased fuel and purchased power are

9-16  properly recorded and credited in its deferred accounts. The

9-17  Commission shall not allow the electric utility to recover any costs

9-18  for purchased fuel and purchased power that were the result of any

9-19  practice or transaction that was undertaken, managed or performed

9-20  imprudently by the electric utility.

9-21      9.  If an electric utility files an application to clear its deferred

9-22  accounts pursuant to subsection 7 while a general rate application is

9-23  pending, the electric utility shall:

9-24      (a) Submit with its application to clear its deferred accounts

9-25  information relating to the cost of service and rate design; and

9-26      (b) Supplement its general rate application with the same

9-27  information, if such information was not submitted with the general

9-28  rate application.

9-29      10.  A utility facility identified in a 3-year plan submitted

9-30  pursuant to NRS 704.741 and accepted by the Commission for

9-31  acquisition or construction pursuant to NRS 704.751 and the

9-32  regulations adopted pursuant thereto shall be deemed to be a prudent

9-33  investment. The utility may recover all just and reasonable costs of

9-34  planning and constructing such a facility.

9-35      11.  A PAR carrier may, in accordance with this section and

9-36  NRS 704.100, file with the Commission a request to approve or

9-37  change any schedule to provide volume or duration discounts to

9-38  rates for telecommunication service for an offering made to all or

9-39  any class of business customers. The Commission may conduct a

9-40  hearing relating to the request, which must occur within 45 days

9-41  after the date the request is filed with the Commission. The request

9-42  and schedule shall be deemed approved if the request and

9-43  schedule are not disapproved by the Commission within 60 days

9-44  after the date the Commission receives the request.

9-45      12.  As used in this section [, “electric] :

10-1      (a) “Electric utility” has the meaning ascribed to it in NRS

10-2  704.187.

10-3      (b) “PAR carrier” has the meaning ascribed to it in section 4

10-4  of this act.

10-5      Sec. 13.  NRS 704.68904 is hereby amended to read as

10-6  follows:

10-7      704.68904  As used in NRS 704.68904 to 704.68984, inclusive,

10-8  and sections 2 to 7, inclusive, of this act, unless the context

10-9  otherwise requires, the words and terms defined in NRS 704.68908

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

10-11  have the meanings ascribed to them in those sections.

10-12     Sec. 14.  NRS 704.68908 is hereby amended to read as

10-13  follows:

10-14     704.68908  “Affected person” means:

10-15     1.  A public utility affected by an action of [an electing] a PAR

10-16  carrier or an action of the Commission relating to [an electing] a

10-17  PAR carrier;

10-18     2.  A person whose utility service or rates are affected by an

10-19  action of [an electing] a PAR carrier or an action of the Commission

10-20  relating to [an electing] a PAR carrier;

10-21     3.  A competitive supplier; or

10-22     4.  The Bureau of Consumer Protection in the Office of the

10-23  Attorney General.

10-24     Sec. 15.  NRS 704.68912 is hereby amended to read as

10-25  follows:

10-26     704.68912  “Basic network service” means the provision of any

10-27  of the following services, unless the [service has been] Commission

10-28  has reclassified the service as a competitive[,] service, a

10-29  deregulated service, a discretionary service or an other essential

10-30  service [by the Commission] pursuant to NRS 704.6896:

10-31     1.  Farmer line service;

10-32     2.  Flat rate service for residential lines;

10-33     3.  Measured rate service for residential lines;

10-34     4.  Flat rate service for residential trunk lines;

10-35     5.  Flat rate service for business lines;

10-36     6.  Measured rate service for business lines;

10-37     7.  Flat rate service for business trunk lines;

10-38     8.  Measured rate service for business trunk lines;

10-39     9.  Suburban service access lines;

10-40     10.  Toll station service access lines;

10-41     11.  Universal lifeline service access lines;

10-42     12.  Access to emergency 911 service; and

10-43     13.  The first single-line directory listing.

10-44     Sec. 16.  NRS 704.6892 is hereby amended to read as follows:

10-45     704.6892  “Competitive supplier” means a person who:

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

11-2  a service performed by the [electing] PAR carrier; or

11-3      2.  Wants to enter into competition with [an electing] a PAR

11-4  carrier.

11-5      Sec. 17.  NRS 704.68924 is hereby amended to read as

11-6  follows:

11-7      704.68924  “Discretionary service” means any

11-8  telecommunication service which is not otherwise classified as a

11-9  basic network service, a competitive service , a deregulated service

11-10  or [any] an other essential service, or which is reclassified as a

11-11  discretionary service pursuant to NRS 704.6896.

11-12     Sec. 18.  NRS 704.68928 is hereby amended to read as

11-13  follows:

11-14     704.68928  “Electing PAR carrier” means [an incumbent local

11-15  exchange carrier regulated under an alternative plan of regulation

11-16  pursuant to NRS 704.040 that has elected also to be regulated

11-17  pursuant to NRS 704.68904 to 704.68984, inclusive, by filing with

11-18  the Commission a statement] a PAR carrier which:

11-19     1.  Makes an election to become an electing PAR carrier

11-20  pursuant to NRS 704.68948[.] ; and

11-21     2.  Is regulated in the manner described in that section.

11-22     Sec. 19.  NRS 704.68948 is hereby amended to read as

11-23  follows:

11-24     704.68948  [An incumbent local exchange carrier that is

11-25  regulated under an alternative plan of regulation pursuant to NRS

11-26  704.040 may elect also to be]

11-27     1.  A PAR carrier may make an election to become an electing

11-28  PAR carrier that is regulated pursuant to NRS 704.68952,

11-29  704.68956 and 704.6898. Such regulation is in addition to any

11-30  other regulation that otherwise applies to the PAR carrier

11-31  pursuant to NRS 704.68904 to 704.68984, inclusive, [by filing] and

11-32  sections 2 to 7, inclusive, of this act.

11-33     2.  To make an election pursuant to this section, the PAR

11-34  carrier must file with the Commission a written statement of its

11-35  election to [be so regulated.] become an electing PAR carrier. The

11-36  written statement must:

11-37     (a) Identify the PAR carrier; and

11-38     (b) Include the date that its election becomes effective.

11-39     Sec. 20.  NRS 704.68952 is hereby amended to read as

11-40  follows:

11-41     704.68952  1.  [An] Except as otherwise provided in this

11-42  section, if a PAR carrier makes an election to become an electing

11-43  PAR carrier pursuant to NRS 704.68948, on and after the date

11-44  that the election becomes effective:

12-1      (a) The electing PAR carrier is not subject to any review of

12-2  earnings, monitoring of the rate base, or any other regulation by the

12-3  Commission relating to the net income or rate of return of

12-4  the electing PAR carrier[, unless the electing carrier files with the

12-5  Commission a request to:

12-6      (a) Terminate its participation in the alternative plan of

12-7  regulation pursuant to NRS 704.040; or

12-8      (b) Continue its participation in the alternative plan of regulation

12-9  pursuant to NRS 704.040.

12-10     2.  Except as otherwise provided in subsection 1, the] ;

12-11     (b) The Commission shall not consider the rate of return, rate

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

12-13  with any change in rates[.

12-14     3.  Except for an electing carrier that files a request with the

12-15  Commission pursuant to subsection 1, the] ;

12-16     (c) The Commission shall not decrease the rate of a basic

12-17  network service provided by the electing PAR carrier unless the

12-18  electing PAR carrier agrees to the decrease in the rate[.

12-19     4.  Except for a telecommunication service reclassified pursuant

12-20  to NRS 704.6896, or except where an electing carrier elects to

12-21  continue participation in an alternative plan of regulation pursuant to

12-22  paragraph (b) of subsection 1, an] ; and

12-23     (d) The electing PAR carrier shall not , during the term of its

12-24  plan of alternative regulation, increase any rate that the electing

12-25  PAR carrier charges for a basic network [services.

12-26     5.] service, other than the rate for a telecommunication service

12-27  that is:

12-28         (1) Reclassified pursuant to NRS 704.6896; or

12-29         (2) Offered by the electing PAR carrier pursuant to NRS

12-30  704.68964, 704.68968 or 704.68972.

12-31     2.  An electing PAR carrier may terminate its plan of

12-32  alternative regulation at any time by filing with the Commission a

12-33  notice of its intention to terminate the plan. The termination is

12-34  effective on the date the electing PAR carrier specifies in the

12-35  notice.

12-36     3.  If an electing PAR carrier terminates its plan of alternative

12-37  regulation pursuant to subsection 2, the electing PAR carrier shall

12-38  file with the Commission a general rate application pursuant to

12-39  subsection 3 of NRS 704.110 not later than 180 days after the date

12-40  that the termination of its plan of alternative regulation becomes

12-41  effective.

12-42     4.  If an electing PAR carrier does not terminate its plan of

12-43  alternative regulation pursuant to subsection 2, the plan

12-44  terminates at the end of the first 5-year period after the date the

13-1  plan becomes effective and at the end of each successive 5-year

13-2  period after that date unless:

13-3      (a) Not later than 180 days before the end of the first 5-year

13-4  period after the date the plan becomes effective and at the end of

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

13-6  carrier files with the Commission a written request to continue its

13-7  participation in the plan of alternative regulation for another

13-8  5-year period; and

13-9      (b) The Commission grants the written request of the electing

13-10  PAR carrier to continue its participation in the plan of alternative

13-11  regulation for another 5-year period in accordance with the

13-12  provisions of this section.

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

13-14  to subsection 4, the written request must be accompanied by a

13-15  written report prepared in a form prescribed by the Commission.

13-16  The written report must:

13-17     (a) Contain a summary of the operations of the electing PAR

13-18  carrier for the period covering the immediately preceding 5 fiscal

13-19  years; and

13-20     (b) Include, but is not limited to, the rate of return and

13-21  earnings of the electing PAR carrier for the period specified in

13-22  paragraph (a), other than the rate of return and earnings obtained

13-23  from deregulated services.

13-24     6.  Not later than 180 days after the date that an electing PAR

13-25  carrier files a written request pursuant to subsection 4, the

13-26  Commission shall conduct and complete a proceeding to review

13-27  the written request and report. The Commission shall not allow

13-28  any person to be a party to the proceeding other than the electing

13-29  PAR carrier, the regulatory operations staff of the Commission

13-30  and the staff of the Bureau of Consumer Protection in the Office

13-31  of the Attorney General.

13-32     7.  In the proceeding, the Commission shall:

13-33     (a) Determine whether the existing rates of the electing PAR

13-34  carrier for basic network services are just and reasonable

13-35  pursuant to subsection 1 of NRS 704.040; and

13-36     (b) Based upon that determination, issue an order which:

13-37         (1) Grants the written request of the electing PAR carrier

13-38  and authorizes the electing PAR carrier to participate in the plan

13-39  of alternative regulation for another 5 years; or

13-40         (2) Denies the written request of the electing PAR carrier

13-41  and directs the electing PAR carrier to file with the Commission a

13-42  general rate application pursuant to subsection 3 of NRS 704.110

13-43  not later than 180 days after the date the Commission issues the

13-44  order.

14-1      8. Except for universal service support for lifeline or link-up

14-2  services provided pursuant to 47 U.S.C. § 214 or as otherwise

14-3  determined by the Commission, an electing PAR carrier is not

14-4  eligible to receive money from the fund created pursuant to

14-5  subsection 7 of NRS 704.040.

14-6      9.  For the purposes of this section:

14-7      (a) The plan of alternative regulation for an electing PAR

14-8  carrier shall be deemed to have a term of 5 years.

14-9      (b) If a PAR carrier is operating as an electing PAR carrier on

14-10  July 1, 2003, the first 5-year term for its plan of alternative

14-11  regulation shall be deemed to begin on July 1, 2003.

14-12     (c) If a PAR carrier makes an election to become an electing

14-13  PAR carrier after July 1, 2003, the first 5-year term for its plan of

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

14-15  election becomes effective.

14-16     Sec. 21.  NRS 704.68956 is hereby amended to read as

14-17  follows:

14-18     704.68956  [Nothing in] The provisions of NRS 704.68904 to

14-19  704.68984, inclusive, [authorizes] and sections 2 to 7, inclusive, of

14-20  this act do not authorize an electing PAR carrier, without the

14-21  approval of the Commission, to discontinue or otherwise change the

14-22  terms and conditions relating to the provision of the basic network

14-23  services identified in subsections 1 to 4, inclusive, of NRS

14-24  704.68912, as set forth in the tariffs of the electing PAR carrier that

14-25  are in effect on October 1, 1999.

14-26     Sec. 22.  NRS 704.6896 is hereby amended to read as follows:

14-27     704.6896  1.  The Commission may, at any time, upon its own

14-28  motion or that of any person, reclassify a basic network service,

14-29  except access to emergency 911 service.

14-30     2.  The Commission shall establish by regulation criteria for

14-31  determining whether a service should be reclassified, except that the

14-32  Commission shall not adopt criteria for determining whether a

14-33  service should be reclassified that would deny a request to reclassify

14-34  a basic network service to another classification of service within an

14-35  exchange where a competitive supplier operates and provides that

14-36  service, on the basis that there is not a competitive supplier of that

14-37  service in any other portion of the State.

14-38     3.  If the Commission receives a written request for

14-39  reclassification from a PAR carrier, the Commission shall act

14-40  upon the request not later than 120 days after the date the

14-41  Commission receives the request.

14-42     Sec. 23.  NRS 704.68964 is hereby amended to read as

14-43  follows:

14-44     704.68964  1.  [An electing] A PAR carrier may, pursuant to

14-45  this section and in accordance with NRS 704.68976, exercise

15-1  flexibility in the pricing , the terms or both the pricing and terms

15-2  of:

15-3      (a) [Competitive services and discretionary services.] Any

15-4  competitive service or discretionary service. The Commission shall

15-5  not specify a maximum rate for any competitive [services] service

15-6  or discretionary [services of the electing carrier. The electing carrier

15-7  shall, with regard to any competitive or discretionary service that it

15-8  provides, set the price of that service above the price floor of the

15-9  service.

15-10     (b) A] service provided by the PAR carrier.

15-11     (b) Any package of services, which may include basic network

15-12  services, competitive services, discretionary services , [and] other

15-13  essential services[.] and services and products that are not subject

15-14  to the jurisdiction of the Commission. The Commission shall not

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

15-16  PAR carrier.

15-17     (c) Any tariffed service, if the PAR carrier needs to exercise

15-18  flexibility in the pricing, the terms or both the pricing and terms of

15-19  the tariffed service in a contract for service to an individual

15-20  customer, to respond to competition by one or more competitive

15-21  suppliers in the market for telecommunication service for business

15-22  customers. The flexibility exercised by the PAR carrier pursuant to

15-23  this paragraph:

15-24         (1) May include, but is not limited to, using volume or term

15-25  discounts, and modifications to tariffed terms and conditions; and

15-26         (2) May not be used to provide volume or duration

15-27  discounts to rates or modifications to tariffed terms and conditions

15-28  for telecommunication service for an offering made to all or any

15-29  class of business customers.

15-30     2.  Except as otherwise provided in this subsection, [an

15-31  electing] a PAR carrier may, upon [30-days’] 20-days’ notice to the

15-32  Commission in writing, exercise flexibility in the pricing , the terms

15-33  or both the pricing and terms of [its] any service or package of

15-34  services that may be subject to such flexibility pursuant to

15-35  subsection 1 , and the PAR carrier is exempt, with respect to the

15-36  pricing of [its] each such service or package of services, from

15-37  the provisions of NRS 704.100 and 704.110 and the regulations of

15-38  the Commission relating thereto. The notice must include a

15-39  description in reasonable detail of:

15-40     (a) The characteristics of [the] each service or package of

15-41  services that will be subject to such flexibility ; [in pricing;]

15-42     (b) The terms and conditions applicable to [the] each service or

15-43  package of services;

15-44     (c) The nature of any limitations on the duration or geographical

15-45  availability of [the] each service or package of services;

16-1      (d) The price or prices of [the services or packages] each service

16-2  or package of services; [and]

16-3      (e) A certificate which provides that [the electing] :

16-4          (1) The PAR carrier has prepared a cost study of the price

16-5  floor to support the price or prices [for] of each service that will be

16-6  subject to such flexibility or each service included in the package

16-7  of services that will be subject to such flexibility; and [that, on]

16-8          (2) On and after the date on which the notice is filed with the

16-9  Commission, any affected person may, upon request, inspect and

16-10  copy the cost study, subject to reasonable terms and conditions of

16-11  any applicable confidentiality and nondisclosure agreement relating

16-12  to the service or package of services [.] ; and

16-13     (f) A form of notice that will be posted by the

16-14  Commission.

16-15  The notice requirements of this subsection do not apply to [an

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

16-17  competitive service or any package of services [or for packages]

16-18  comprised exclusively of competitive services.

16-19     3.  The price or prices of each service that is subject to

16-20  flexibility pursuant to this section must not be lower than the price

16-21  floor for that service. The price [for a] or prices of each package of

16-22  services that is subject to flexibility pursuant to this section must

16-23  not be lower than the lesser of:

16-24     (a) The sum of the price floors for each [of the services

16-25  contained] service included in the package; or

16-26     (b) The sum of the prices of the basic network services, as set

16-27  forth in the tariffs of the [electing] PAR carrier, and the price floors

16-28  for each of the other services [contained] included in the package.

16-29     4.  [The Commission shall not specify a maximum rate for a

16-30  package of services.

16-31     5.  Each of the services] Each service included in a package

16-32  [pursuant to paragraph (b) of subsection 1] of services that is

16-33  subject to flexibility pursuant to this section must be made

16-34  available on an individual basis.

16-35     [6.  An electing]

16-36     5.  A PAR carrier must provide [30-days’] 20-days’ notice to

16-37  the Commission in writing before the [electing] PAR carrier may

16-38  implement any amendment or change to [an existing service

16-39  noticed] a service or package of services which is subject to

16-40  flexibility pursuant to this section and for which the PAR carrier

16-41  had previously provided notice to the Commission pursuant to

16-42  subsection 2.

16-43     6.  Notwithstanding any other provision of law, if a PAR

16-44  carrier charges a customer a fixed price or amount for a package

16-45  of services that is subject to flexibility pursuant to this section, the

17-1  PAR carrier, in any bill or statement for the package of services, is

17-2  permitted to specify only the fixed price or amount for the package

17-3  of services and is not required to:

17-4      (a) Identify each separate service or component included in

17-5  the package of services; or

17-6      (b) Specify the unit price or amount charged for each separate

17-7  service or component included in the package of services.

17-8      Sec. 24.  NRS 704.68968 is hereby amended to read as

17-9  follows:

17-10     704.68968  [An electing] A PAR carrier may establish

17-11  promotional price reductions for services upon a 1-day notice to the

17-12  Commission. The promotional price reduction for a service may be

17-13  offered for not more than 90 days during any 12 consecutive months

17-14  and must be given in all geographic areas served by the [electing]

17-15  PAR carrier, where facilities permit, on a nondiscriminatory basis

17-16  during the 12-month period.

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

17-18  follows:

17-19     704.68972  1.  [An electing] A PAR carrier may introduce new

17-20  services upon [30-days’] 10-days’ notice to the Commission in

17-21  writing. The notice must include a description in reasonable detail

17-22  of:

17-23     (a) The characteristics of each new service;

17-24     (b) The terms and conditions applicable to each new service;

17-25     (c) The nature of any limitations on the duration or geographical

17-26  availability of each new service;

17-27     (d) The price or prices of each new service; and

17-28     (e) A certificate [that] which provides that [the electing] :

17-29         (1) The PAR carrier has prepared a cost study of the price

17-30  floor to support the price or prices [for] of each new service ; and

17-31  [that, on]

17-32         (2) On and after the date on which the notice is filed with the

17-33  Commission, any affected person may, upon request, inspect and

17-34  copy the cost study, subject to reasonable terms and conditions of

17-35  any applicable confidentiality and nondisclosure agreement.

17-36     2.  Each new service is subject to the conditions set forth in

17-37  NRS 704.68964.

17-38     3.  Each new service is exempt from the provisions of NRS

17-39  704.100 and 704.110 and the regulations of the Commission relating

17-40  thereto.

17-41     4.  Unless otherwise classified by the Commission as a

17-42  [competitive] deregulated service pursuant to its regulations, a new

17-43  service must be classified as a [discretionary] competitive service

17-44  for which the Commission shall not specify a maximum rate. The

18-1  [electing] PAR carrier shall set the price of the new service above

18-2  the price floor [of the] for that service.

18-3      5.  As used in this section, a “new service” means a

18-4  telecommunication service:

18-5      (a) That provides a function, feature or capability which is

18-6  materially different from any service or services previously offered

18-7  by the carrier; or

18-8      (b) Combines two or more previously provided new services.

18-9      Sec. 26.  NRS 704.68976 is hereby amended to read as

18-10  follows:

18-11     704.68976  The rates charged by [an electing] a PAR carrier for

18-12  services, except for competitive services, must be geographically

18-13  averaged throughout the service territory in which the [electing]

18-14  PAR carrier is the provider of last resort, as determined pursuant to

18-15  regulations adopted by the Commission, or within such other

18-16  smaller geographic area as the Commission deems appropriate to

18-17  balance the interests of all customers and providers.

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

18-19     704.6898  The intrastate access prices charged by an electing

18-20  PAR carrier must not exceed the interstate access prices charged by

18-21  the electing PAR carrier as authorized by the Federal

18-22  Communications Commission for corresponding elements, and any

18-23  resulting reductions must be offset on a revenue-neutral basis with

18-24  adjustments to other essential retail services subject to regulation by

18-25  the Commission.

18-26     Sec. 28.  NRS 704.68984 is hereby amended to read as

18-27  follows:

18-28     704.68984  The provisions of section 8 of this act and NRS

18-29  704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive, of

18-30  this act do not:

18-31     1.  Apply to the Commission in connection with any actions or

18-32  decisions required or permitted by the Telecommunications Act of

18-33  1996, Public Law 104-104, 110 Stat. 56-161; or

18-34     2.  Limit or modify [the] :

18-35     (a) The duties of [an electing] a PAR carrier to a competitive

18-36  supplier regarding the provision of network interconnection,

18-37  unbundled network elements and resold services under the

18-38  provisions of the Telecommunications Act of 1996, Public Law

18-39  104-104, 110 Stat. 56-161 [.] ; or

18-40     (b) The authority of the Commission to act pursuant to NRS

18-41  704.281 and 704.282.

18-42     Sec. 29.  This act becomes effective upon passage and

18-43  approval.

 

18-44  H