35-A §9103. Conditions of alternative form of regulation
Title 35-A: PUBLIC UTILITIES HEADING: PL 1987, C. 141, PT. A, §6 (NEW)
Part 7: TELECOMMUNICATIONS HEADING: PL 1987, C. 141, PT. A, §6 (NEW)
Chapter 91: ALTERNATIVE FORM OF REGULATION OF TELECOMMUNICATIONS SERVICES HEADING: PL 1993, C.638, §2 (NEW)
§9103. Conditions of alternative form of regulation
Unless the commission specifically finds that the following objectives are not in the best interests of ratepayers, the commission shall ensure that any alternative form of regulation it adopts under section 9102 is consistent with the following objectives. [1993, c. 638, §2 (NEW).]
1. Alternative regulation; period; starting point. The period of the alternative form of regulation may not be less than 5 years nor exceed 10 years without affirmative reauthorization by the commission. Prior to the adoption of a new or replacement alternative form of regulation or renewal of any existing alternative form of regulation, when the alternative form of regulation includes a provision prohibiting the commission or the utility from initiating a rate case for a set period of time, the commission shall, in order to ensure that rates at the starting point of the alternative form of regulation are just and reasonable, conduct a revenue requirement and earnings review pursuant to the standards of section 301. In conducting such a review under this subsection, the commission, at its discretion, may conduct the review in a manner designed to minimize the cost of the review.
[ 2007, c. 550, §1 (AMD) .]
2. Costs. The costs of regulation of telephone utilities must be less under the alternative form of regulation than under rate-base or rate-of-return regulation.
[ 1993, c. 638, §2 (NEW) .]
3. Mandates. The alternative form of regulation preserves the ability of the commission to ensure that all legislative and commission mandates directed to the telephone utility are properly executed.
[ 1993, c. 638, §2 (NEW) .]
4. Safeguards. The alternative form of regulation must provide adequate safeguards to ensure that risks associated with the development, deployment and offering of telecommunications and related services offered by the telephone utility, other than local telephone services, are not borne by the local telephone service subscribers of the telephone utility and that the utility continues to offer a flat-rate, voice-only local service option.
[ 1993, c. 638, §2 (NEW) .]
5. Reasonable charges. The alternative form of regulation must ensure that customers pay only reasonable charges for local telephone services.
[ 1993, c. 638, §2 (NEW) .]
6. Reasonable return. The alternative form of regulation must ensure that the telephone utility has, over the period of the alternative form of regulation, a reasonable opportunity to earn a fair return on the investment necessary to provide local telephone services.
[ 1993, c. 638, §2 (NEW) .]
7. Encourage telecommunications services. The alternative form of regulation must encourage the development, deployment and offering of new telecommunications and related services in the State.
[ 1993, c. 638, §2 (NEW) .]
8. Nondiscriminatory charges. The alternative form of regulation must ensure that another telephone utility pays the telephone utility providing local telephone service reasonable and nondiscriminatory charges for any service used by the other telephone utility to provide its competing service.
[ 1993, c. 638, §2 (NEW) .]
9. General safeguards. The alternative form of regulation must include consumer and competitive safeguards.
[ 1993, c. 638, §2 (NEW) .]
SECTION HISTORY
1993, c. 638, §2 (NEW). 2007, c. 550, §1 (AMD).