| (a) Application. This section applies to any electing
company, as the term is defined in the Public Utility Regulatory Act
(PURA) §58.002. Other sections applicable to an electing company,
include, but are not limited to, §26.225 of this title (relating
to Requirements Applicable to Nonbasic Services for Chapter 58 Electing
Companies), §26.226 of this title (relating to Requirements Applicable
to Pricing Flexibility for Chapter 58 Electing Companies), and §26.227
of this title (relating to Procedures Applicable to Nonbasic Services
and Pricing Flexibility for Basic and Nonbasic Services for Chapter
58 Electing Companies).
(b) Purpose. The purpose of this section is to establish
requirements and procedures relating to the provision of basic network
services.
(c) Basic network services.
(1) Services included in basic network services. Unless
reclassified under PURA §58.024, the following are classified
as basic network services under PURA §58.051(a):
(A) Flat rate residential local exchange telephone
service, including primary directory listings and the receipt of a
directory and any applicable mileage or zone charges;
(B) Residential tone dialing service;
(C) Lifeline service;
(D) Service connection for basic residential services;
(E) Direct inward dialing service for basic residential
services;
(F) Private pay telephone access service;
(G) Call trap and trace service;
(H) Access for all residential and business end users
to 9-1-1 service provided by a local authority and access to dual
party relay service;
(I) Mandatory residential extended area service arrangements;
(J) Mandatory residential extended metropolitan service
or other mandatory residential toll-free calling arrangements; and
(K) Residential caller identification services if the
customer to whom the service is billed is at least 65 years of age.
(2) Separate tariff requirement. Consistent with PURA §58.051(b),
a basic network service offered by an electing company to a customer
as a component of a package or other pricing flexibility offering
must also be offered by the electing company as a separately tariffed
service.
(3) Basic network service rates capped. The rates for
basic network services for an electing company may not increase before
September 1, 2005, except as provided for in subsection (f) of this
section relating to rate increases prior to the rate cap expiration.
(4) Basic network service rates charged. The rates
an electing company may charge during the period in which rates are
capped are the rates charged by the company on June 1, 1995, or, for
a company that elects after September 1, 1999, the rates charged on
the date of its election.
(5) Pricing flexibility. An electing company may offer
pricing flexibility for basic network services in accordance with
the requirements of §26.226 of this title.
(6) At the election of the affected incumbent local
exchange company, the price for basic network service must also include
the fees and charges for any mandatory extended area service arrangements,
mandatory expanded toll-free calling plans, and any other service
included in the definition of basic network service.
(7) A nonpermanent expanded toll-free local calling
service surcharge established by the commission to recover the costs
of mandatory expanded toll-free local calling service:
(A) is considered a part of basic network service;
(B) may not be aggregated under subsection (c)(6) of
this section; and
(C) continues to be transitioned in accordance with
commission orders and substantive rules.
(d) Requirement for changes to terms of a tariff offering.
Prior to being offered, a change in the terms of a basic network service
tariff offering, such as rate increases and decreases of a basic network
service, must receive commission approval. Section 26.207 of this
title (relating to Form and Filing of Tariffs) and §26.208 of
this title (relating to General Tariff Procedures) must apply to tariffs
offering a basic network service.
(e) Establishment of a long run incremental cost floor.
For purposes of this section, long run incremental cost (LRIC) must
be consistent with §26.215 of this title (relating to Long Run
Incremental Cost Methodology for Dominant Certificated Telecommunications
Utility (DCTU) Services). Establishment of a LRIC floor requires commission
approval of a cost study prepared by an electing company in accordance
with the standards in §26.214 of this title (relating to Long
Run Incremental Cost (LRIC) Methodology for Services provided by Certain
Incumbent Local Exchange Companies (ILECs) or §26.215 of this
title, as applicable. After commission approval of a LRIC floor for
a particular service, an electing company may change the rates of
that service in accordance with the procedures in this section. The
procedures in subsection (i) of this section, relating to rate decreases
for basic network services, may not be available to an electing company
for a service that does not have a LRIC floor.
(f) Rate increase prior to rate cap expiration. For
a four-year period following Chapter 58 election or until September
1, 2005, whichever occurs later, an increase in the rate for a basic
network service is permitted only after commission approval and only
within the following parameters:
(1) A rate increase for changes made by the Federal
Communications Commission, as provided by PURA §58.056;
(2) A rate increase for companies with fewer than five
million access lines that are complying with infrastructure commitments,
as provided by PURA §58.057;
(3) A rate group reclassification, as provided by PURA §58.058.
(g) Procedure for a rate increase prior to rate cap
expiration.
(1) Prior to the rate cap expiration, an electing company
is required to file an application to propose an increase in the rate
for a basic network service. The application must refer to this section,
must provide sufficient documentation to demonstrate that the rate
increase meets the criteria prescribed in PURA Chapter 58, must describe
the increase, and must identify the classes of customers and competitors
to be affected by the electing company's application. The application
must also include any tariff sheets reflecting the proposed basic
network service rate increase, as well as all data necessary to support
the application. The application must include a copy of the text of
any proposed notice to customers. The proposed notice to customers
must comply with §26.208 of this title and must meet the criteria
prescribed in PURA §58.059 and §53.103. The application
must also state the electing company's preferred effective date, which
must be no earlier than 90 days after completion of notice.
(2) The commission must cause notice of the application
to be published in the Texas Register. The Texas Register notice must state the intervention
deadline, which must be no earlier than 40 days following publication
of notice. After publication of notice in the Texas
Register, the presiding officer must establish a deadline for
the filing of a staff recommendation, which must be no earlier than
five days following the intervention deadline.
(3) Within 20 days after filing of the application,
the presiding officer must notify the applicant if material deficiencies
exist in the application and if the proposed notice is inadequate.
(4) Within 50 days after filing of the application,
the applicant must file an affidavit attesting to the fact that notice
to customers was published in accordance with the requirements of
PURA §58.059 and §53.103. The affidavit must contain a copy
of all notice given.
(5) Following receipt of a request for intervention
filed by an affected party, or on the recommendation of commission
staff, or on the commission's own motion, the commission may suspend
the effective date of the proposed rate increase and may hold a hearing.
Within 185 days of the filing of a sufficient application, the commission
must issue an order approving or modifying the rate increase or, alternatively,
rejecting the rate increase if it is not in compliance with this section
and PURA §§58.056, 58.057 or 58.058. Any order modifying
or rejecting the proposed rate increase must specify why the proposed
increase is not in compliance with the applicable provisions of PURA §§58.056,
58.057 or 58.058 and the means by which the proposed increase may
be brought into compliance.
(h) Rate increase after rate cap expiration. After
a four-year period following Chapter 58 election or until September
1, 2005, whichever occurs later, a basic network service rate increase
may be made in accordance with PURA §58.060.
Cont'd... |
