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90_SB0935
220 ILCS 5/13-506.1 from Ch. 111 2/3, par. 13-506.1
Amends the Public Utilities Act. Makes a technical
change to a Section concerning regulation of noncompetitive
telecommunications services.
LRB9003367JSgc
LRB9003367JSgc
1 AN ACT to amend the Public Utilities Act by changing
2 Section 13-506.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Public Utilities Act is amended by
6 changing Section 13-506.1 as follows:
7 (220 ILCS 5/13-506.1) (from Ch. 111 2/3, par. 13-506.1)
8 (This Section is scheduled to be repealed July 1, 1999.)
9 Sec. 13-506.1. Alternative forms of regulation for
10 noncompetitive services.
11 (a) Notwithstanding any of the ratemaking provisions of
12 this Article or Article IX of this Act that are deemed to
13 require rate of return regulation, the Commission may
14 implement alternative forms of regulation in order to
15 establish just and reasonable rates for noncompetitive
16 telecommunications services including, but not limited to,
17 price regulation, earnings sharing, rate moratoria, or a
18 network modernization plan. The Commission is authorized to
19 adopt different forms of regulation to fit the particular
20 characteristics of different telecommunications carriers and
21 their service areas.
22 In addition to the public policy goals declared in
23 Section 13-103, the Commission shall consider, in determining
24 the appropriateness of any alternative form of regulation,
25 whether it will:
26 (1) reduce regulatory delay and costs over time;
27 (2) encourage innovation in services;
28 (3) promote efficiency;
29 (4) facilitate the broad dissemination of technical
30 improvements to all classes of ratepayers;
31 (5) enhance economic development of the State; and
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1 (6) provide for fair, just, and reasonable rates.
2 (b) A telecommunications carrier providing
3 noncompetitive telecommunications services may petition the
4 Commission to regulate the rates or charges of its
5 noncompetitive services under an alternative form of
6 regulation. The telecommunications carrier shall submit with
7 its petition its plan for an alternative form of regulation.
8 The Commission shall review and may modify or reject the
9 carrier's proposed plan. The Commission also may initiate
10 consideration of alternative forms of regulation for a
11 telecommunications carrier on its own motion. The Commission
12 may approve the plan or modified plan and authorize its
13 implementation only if it finds, after notice and hearing,
14 that the plan or modified plan at a minimum:
15 (1) is in the public interest;
16 (2) will produce fair, just, and reasonable rates
17 for telecommunications services;
18 (3) responds to changes in technology and the
19 structure of the telecommunications industry that are, in
20 fact, occurring;
21 (4) constitutes a more appropriate form of
22 regulation based on the Commission's overall
23 consideration of the policy goals set forth in Section
24 13-103 and this Section;
25 (5) specifically identifies how ratepayers will
26 benefit from any efficiency gains, cost savings arising
27 out of the regulatory change, and improvements in
28 productivity due to technological change;
29 (6) will maintain the quality and availability of
30 telecommunications services; and
31 (7) will not unduly or unreasonably prejudice or
32 disadvantage any particular customer class, including
33 telecommunications carriers.
34 (c) An alternative regulation plan approved under this
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1 Section shall provide, as a condition for Commission approval
2 of the plan, that for the first 3 years the plan is in
3 effect, basic residence service rates shall be no higher than
4 those rates in effect 180 days before the filing of the plan.
5 This provision shall not be used as a justification or
6 rationale for an increase in basic service rates for any
7 other customer class. For purposes of this Section, "basic
8 residence service rates" shall mean monthly recurring charges
9 for the telecommunications carrier's lowest priced primary
10 residence network access lines, along with any associated
11 untimed or flat rate local usage charges. Nothing in this
12 subsection (c) shall preclude the Commission from approving
13 an alternative regulation plan that results in rate
14 reductions provided all the requirements of subsection (b)
15 are satisfied by the plan.
16 (d) Any alternative form of regulation granted for a
17 multi-year period under this Section shall provide for annual
18 or more frequent reporting to the Commission to document that
19 the requirements of the plan are being properly implemented.
20 (e) Upon petition by the telecommunications carrier or
21 any other person or upon its own motion, the Commission may
22 rescind its approval of an alternative form of regulation if,
23 after notice and hearing, it finds that the conditions set
24 forth in subsection (b) of this Section can no longer be
25 satisfied. Any person may file a complaint alleging that the
26 rates charged by a telecommunications carrier under an
27 alternative form of regulation are unfair, unjust,
28 unreasonable, unduly discriminatory, or are otherwise not
29 consistent with the requirements of this Article; provided,
30 that the complainant shall bear the burden of proving the
31 allegations in the complaint.
32 (f) Nothing in this Section shall be construed to
33 authorize the Commission to render Sections 9-241, 9-250, and
34 13-505.2 inapplicable to noncompetitive services.
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1 (Source: P.A. 87-856.)