| (a) Purpose and application.
(1) Purpose. The purpose of this section is to establish
procedures and pricing guidelines that small incumbent local exchange
companies (ILECs), because of their special characteristics, may use
to expedite commission approval of services and rates in accordance
with the Public Utility Regulatory Act (PURA), Chapter 53, Subchapter
G. Through this section, the commission encourages the provision of
adequate and efficient telecommunications service by facilitating
the ability of small ILECs' to offer technologically advanced services
that are generally available in metropolitan areas from large ILECs.
(2) Application. This section applies to any small
ILEC as that term is defined in §26.5 of this title (relating
to Definitions), except that this section does not apply to a cooperative
corporation partially deregulated under PURA, Chapter 53, Subchapter
H. Nothing in this section precludes a small ILEC from offering a
packaged service, new service, or promotional service or proposing
a change in rates under other applicable sections of the PURA. Nothing
in this section prohibits the commission from conducting a review
in accordance with PURA, Chapter 53, Subchapter D. Notwithstanding
limitations contained within §26.121 of this title (relating
to Privacy Issues), §26.121 of this title applies to notices
to the commission (commission notices) filed under this section.
(b) Definition. The term "affected customer" when used
in this section means a customer that is in the class of customers
and in the exchange or exchanges affected by the notice filed in accordance
with the provisions of this section.
(c) Filing. By following procedures outlined in this
section, a small ILEC may offer extended local calling service, a
packaged service, a promotional service, or a new service on an optional
basis or make a minor change in its rates or tariffs.
(1) Notice. At least ten calendar days before the effective
date of the proposed change, the small ILEC must file notice with
the commission and the Office of Public Utility Counsel. Such notice
must include:
(A) a copy of the customer notice required by subsection
(d) of this section;
(B) a sufficient description of how notice was or will
be provided to the customers to allow the presiding officer to rule
on the sufficiency of the notice;
(C) any request for a good cause waiver to the requirements
of this section, and sufficient justification for the good cause exception
to allow the presiding officer to rule on the request;
(D) a copy of the resolution adopted by the small ILEC's
board of directors approving the proposed change;
(E) the proposed effective date of the change;
(F) a description of the affected services and the
category of customers affected by the proposed change;
(G) a copy of the proposed tariff;
(H) the number of access lines the small ILEC and each
of its affiliates has in service in the state;
(I) the amount by which the small ILEC's total regulated
intrastate gross annual revenues will increase or decrease as a result
of the proposed change, and, if the proposal is for a rate change,
sufficient information to demonstrate that the proposed change is
a minor change;
(J) a statement affirming that the rates are just and
reasonable, are not unreasonably preferential, prejudicial, or discriminatory,
and are sufficient, equitable, and consistent in application to each
class of customers, in accordance with PURA §53.003;
(K) information required by §26.121 of this title
(relating to Privacy Issues); and
(L) any other information the small ILEC wants considered
in connection with the notice.
(2) Response to the commission notice. No later than
ten calendar days after the small ILEC files the commission notice,
the presiding officer assigned to the project will notify the small
ILEC of any deficiencies in the commission notice, whether the notice
to the customers is approved, and whether a waiver request, if any,
is granted.
(d) Notice. A small ILEC satisfies the notice requirements
in paragraphs (1)-(4) of this subsection by completing notice to the
affected customers no later than 10 days before the proposed effective
date of the tariff sheets. If notice is not completed as required,
the proposed effective date will be postponed for as many days as
completion of notice is delayed.
(1) Extended local calling service, packaged service,
promotional service or new service. For extended local calling service,
a packaged service, promotional service or a new service, notice must
be provided to each affected customer.
(2) Good cause exceptions. The presiding officer may
require for good cause that notice be provided in addition to notice
proposed by the small ILEC for a proposed new service or may waive
for good cause the notice requirement prescribed by this section.
(3) Contents of notice. Each notice must include:
(A) a description of each service affected by the proposed
change;
(B) a list of rates affected by the commission notice
and how the rates affect each category of affected customers;
(C) the proposed effective date of the change;
(D) an explanation of the affected customer's right
to petition the commission for review under subsection (g)(2) of this
section, including the number of affected persons required to petition
before commission review will occur and the date by which the petition
must be received by the commission, which date must be 30 calendar
days following the completion of notice;
(E) an explanation of the affected customer's right
to obtain from the small ILEC a copy of the proposed tariff and instructions
on how to do so; and
(F) the amount by which the small ILEC's total regulated
intrastate gross annual revenues will increase as a result of the
proposed change.
(4) Proof of customer notice. No later than seven calendar
days following completion of notice, the small ILEC or a representative
of the small ILEC must file one or more affidavits establishing proof
of notice to customers as required by this subsection.
(e) New service availability. If the commission notice
concerns a new service, as defined in §26.5 of this title, that
will not be offered system-wide, the small ILEC must explain separately
for each telephone exchange why the new service cannot be offered
system-wide.
(f) Rates and revenues. The following requirements
apply to a commission notice filed under this section:
(1) Minor change. A proposed rate change must be a
minor change as defined in §26.5 of this title.
(2) Limitation on rate increases. Except for good cause
shown, a rate will not be increased more than once in any 12-month
period.
(3) Rate-setting principles. A rate established under
this section must be in accordance with the rate-setting principles
of PURA, Chapter 53, except that a small ILEC may provide to its board
members, officers, employees, or agents free or reduced rates for
services.
(g) Review.
(1) Effective date. A proposed tariff filed under this
section is effective on the date proposed by the small ILEC, unless
the effective date is suspended.
(2) Suspension of tariff. The proposed tariff may be
suspended up to 150 calendar days to provide the commission an opportunity
to review the commission notice. Additionally, the presiding officer
will suspend the tariff if within 30 calendar days following the completion
of the customer notice:
(A) the commission receives a complaint relating to
the proposed change signed by the lesser of 5.0% or 1,500 of the affected
local service customers to which the proposed change applies. Five
percent will be calculated based upon the total number of affected
customers of record as of the calendar month preceding receipt of
the complaint; or
(B) the commission receives a complaint relating to
the proposed change from either an affected intrastate access customer
or a group of affected intrastate access customers that, in the preceding
12 months, the small ILEC billed more than 10% of its total intrastate
gross access revenues; or
(C) the proposed change is not a minor change; or
(D) the proposed change is not consistent with the
commission's written substantive policies; or
(E) the small ILEC has not complied with the procedural
requirements of this section.
(h) Docketing. Following suspension of the effective
date of the proposed tariff, the presiding officer will provide a
small ILEC a reasonable opportunity to modify its commission notice
to address conditions that exist, if any, under subsection (g)(2)
of this section. If conditions under subsection (g)(2) of this section
are not resolved during the suspension period, the presiding officer
may docket the project. If the project is docketed, the effective
date of the proposed tariff will be automatically suspended and the
commission will review the commission notice in accordance with the
commission's procedural rules applicable to docketed cases.
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