State of Illinois
90th General Assembly
Legislation

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[ House Amendment 001 ]

90_HB0714

      220 ILCS 5/13-101         from Ch. 111 2/3, par. 13-101
      220 ILCS 5/13-104 new
      220 ILCS 5/13-502         from Ch. 111 2/3, par. 13-502
      220 ILCS 5/13-505         from Ch. 111 2/3, par. 13-505
      220 ILCS 5/13-509         from Ch. 111 2/3, par. 13-509
          Amends  the  Telecommunications  Article  of  the  Public
      Utilities Act.   Provides  that  telecommunications  services
      may be offered in packages or bundles of services.  Prohibits
      the  use of market share as evidence for the determination of
      the classification of services.  Prohibits the  denial  of  a
      classification  or reclassification of service as competitive
      solely  because  of  differences  in  technology  or  dialing
      arrangements.  Permits rates to be increased upon  filing  of
      the  rate  and  notice  to affected customers. Authorizes any
      telecommunications   carrier   to   negotiate   to    provide
      competitive services.   Effective immediately.
                                                    LRB9000613JSgcB
                                              LRB9000613JSgcB
 1        AN  ACT  to  amend  the  Public Utilities Act by changing
 2    Sections  13-101,  13-502,  13-505,  and  13-509  and  adding
 3    Section 13-104.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.  The  Public  Utilities  Act  is  amended  by
 7    changing  Sections  13-101,  13-502,  13-505,  and 13-509 and
 8    adding Section 13-104 as follows:
 9        (220 ILCS 5/13-101) (from Ch. 111 2/3, par. 13-101)
10        (This Section is scheduled to be repealed July 1, 1999.)
11        Sec.  13-101.   Except  to   the   extent   modified   or
12    supplemented  by the specific provisions of this Article, the
13    Sections of this Act pertaining to public  utilities,  public
14    utility  rates  and services, and the regulation thereof, are
15    fully    and    equally    applicable    to    noncompetitive
16    telecommunications rates and  services,  and  the  regulation
17    thereof,  except  where  the  context  clearly  renders  such
18    provisions  inapplicable.   Except  to the extent modified or
19    supplemented by the  specific  provisions  of  this  Article,
20    Articles  I  through  V,  Sections 9-221, 9-222, 9-222.1, and
21    9-222.2 and 9-250, Articles X and XI of this  Act  are  fully
22    and  equally  applicable  to  competitive  telecommunications
23    rates and services, and the regulation thereof.
24    (Source: P.A. 86-101.)
25        (220 ILCS 5/13-104 new)
26        Sec.  13-104.   Packaging.   Nothing in this Act shall be
27    construed to  prohibit  the  packaging  or  bundling  of  any
28    telecommunications services, provided that the prices for the
29    packages  or  bundles  of  telecommunications  services shall
30    satisfy on an aggregate basis any cost standards pursuant  to
                            -2-               LRB9000613JSgcB
 1    Sections   13-502   and   13-505.1   of   this  Act  for  the
 2    telecommunications services that are included in the packages
 3    or  bundles  and,  provided  further,  that  rates  for   the
 4    individual service in the package continue to equal or exceed
 5    their long run service incremental cost.
 6        (220 ILCS 5/13-502) (from Ch. 111 2/3, par. 13-502)
 7        (This Section is scheduled to be repealed July 1, 1999.)
 8        Sec. 13-502.  Classification of services.
 9        (a)  All  telecommunications services offered or provided
10    under  tariff  by  telecommunications   carriers   shall   be
11    classified   as  either  competitive  or  noncompetitive.   A
12    telecommunications  carrier  may  offer  or  provide   either
13    competitive or noncompetitive telecommunications services, or
14    both,  subject  to  proper certification and other applicable
15    provisions of  this  Article.   Any  tariff  filed  with  the
16    Commission  as  required  by  Section  13-501  shall indicate
17    whether the service to be offered or provided is  competitive
18    or noncompetitive.
19        (b)  A  service  shall  be classified as competitive only
20    if, and only to the extent that, for some identifiable  class
21    or  group of customers in an exchange, group of exchanges, or
22    some other clearly defined geographical area, such service, a
23    functionally similar service or its functional equivalent, or
24    a substitute service, is reasonably available from more  than
25    one   provider,  whether  or  not  any  such  provider  is  a
26    telecommunications carrier subject to regulation  under  this
27    Act  and  whether  or  not such provider offers such services
28    over its own facilities or resells the  services  of  another
29    carrier.   All   telecommunications   services  not  properly
30    classified   as   competitive   shall   be   classified    as
31    noncompetitive.  The  Commission  shall  have  the  power  to
32    investigate   the   propriety  of  any  classification  of  a
33    telecommunications  service  on  its  own  motion  and  shall
                            -3-               LRB9000613JSgcB
 1    investigate upon complaint.  After notice  and  hearing,  the
 2    Commission  shall  order  the  proper  classification  of any
 3    service in whole or in part.   The  Commission  may  not  use
 4    evidence of market share to determine the classification of a
 5    service  and  may not deny classification or reclassification
 6    of a service as competitive solely because it finds that  the
 7    service  does  not  use the same technology or does not offer
 8    identical dialing arrangements as  a  similar  or  substitute
 9    service.     The  Commission shall make its determination and
10    issue its final order no later than 180 days  from  the  date
11    the  tariff  classifying the service is filed such hearing or
12    investigation is initiated. If the Commission enters  into  a
13    hearing  upon  complaint and if the Commission fails to issue
14    an order within that period, the complaint  shall  be  deemed
15    denied  granted  unless  the Commission, the complainant, and
16    the telecommunications carrier providing the service agree to
17    extend the time period.
18        (c)  No  tariff  classifying  a  new   telecommunications
19    service   as   competitive   or  reclassifying  a  previously
20    noncompetitive  telecommunications  service  as  competitive,
21    which is filed by a  telecommunications  carrier  which  also
22    offers or provides noncompetitive telecommunications service,
23    shall  be  effective unless and until such telecommunications
24    carrier  offering  or  providing,  or  seeking  to  offer  or
25    provide, such proposed competitive service prepares and files
26    a study of the long-run service incremental  cost  underlying
27    such  service  and  demonstrates  that the tariffed rates and
28    charges for the service and any relevant  group  of  services
29    that  includes the proposed competitive service and for which
30    resources are used in common solely by that group of services
31    are not less than the long-run service  incremental  cost  of
32    providing  the  service  and each relevant group of services.
33    Such study  shall  be  given  proprietary  treatment  by  the
34    Commission  at  the  request  of  such  carrier  if any other
                            -4-               LRB9000613JSgcB
 1    provider  of  the   competitive   service,   its   functional
 2    equivalent,  or a substitute service in the geographical area
 3    described by the proposed tariff has not filed,  or  has  not
 4    been required to file, such a study.
 5        (d)  In the event any telecommunications service has been
 6    classified and filed as competitive by the telecommunications
 7    carrier,  and has been offered or provided on such basis, and
 8    the Commission subsequently  determines  after  investigation
 9    that  such  classification improperly included services which
10    were in fact noncompetitive, the Commission  shall  have  the
11    power  to  determine  and  order refunds to customers for any
12    overcharges  which  may  have  resulted  from  the   improper
13    classification,  or  to order such other remedies provided to
14    it under this Act, or to seek an appropriate remedy or relief
15    in a court of competent jurisdiction.
16        (e)  Any telecommunications carrier which seeks to file a
17    tariff  classifying  a  new  telecommunications  service   as
18    competitive  or  reclassifying  a  previously  noncompetitive
19    telecommunications  service  as  competitive  may, instead of
20    filing such  new  tariff  and  offering  and  providing  such
21    service  as  competitive  subject  to  refund,   apply to the
22    Commission, prior to offering or providing  such  service  as
23    competitive, for an order finding that the proposed tariff is
24    proper  and  consistent  with  law.   Any  telecommunications
25    carrier  applying  for  Commission  approval pursuant to this
26    paragraph (e) shall provide timely and  effective  notice  of
27    its  application  and proposed tariff to potentially affected
28    providers and customers in a manner to be determined  by  the
29    Commission.
30        Upon such application and notice, the Commission may make
31    its  findings without hearing within 21 days of the filing of
32    the application and may allow such tariff to  take  immediate
33    effect  thereafter  if  there  is  no  request for hearing by
34    potentially affected providers or customers.  The  Commission
                            -5-               LRB9000613JSgcB
 1    shall,   however,   enter  into  hearings  to  determine  the
 2    propriety and legality of  the  proposed  tariffs  upon  such
 3    request  or  if  the  Commission, in its discretion, believes
 4    such hearings are necessary.
 5        If  the  Commission  enters  into   hearings   upon   the
 6    application,  it shall issue a final order within 180 days of
 7    such application, and, if the Commission fails  to  issue  an
 8    order  within  such  period,  the application shall be deemed
 9    granted, unless, however, the Commission, the  applicant  and
10    all  parties to the hearing agree to extend such time period.
11    The Commission shall have the power to issue an interim order
12    allowing the proposed tariff to take effect  during  the  180
13    day period subject to refund and such other conditions as the
14    Commission may provide.
15    (Source: P.A. 87-856.)
16        (220 ILCS 5/13-505) (from Ch. 111 2/3, par. 13-505)
17        (This Section is scheduled to be repealed July 1, 1999.)
18        Sec.   13-505.   Rate   changes;   competitive  services.
19    Proposed changes in rates or charges, or  any  classification
20    or  tariff  provision  affecting  rates  or  charges, for any
21    competitive  telecommunications  service,  shall  be  treated
22    pursuant  to  this  Section  as  follows:  (a)  Any  proposed
23    increase or decrease in rates or charges, or proposed  change
24    in any classification or tariff resulting in an increase or a
25    decrease   in   rates   or   charges,   for   a   competitive
26    telecommunications service shall be permitted upon the filing
27    of  the  proposed  rate,  charge, classification, or tariff.;
28    (b)  any proposed increase in rates or charges,  or  proposed
29    change  in  any  classification  or  tariff  resulting  in an
30    increase   in   rates   or   charges,   for   a   competitive
31    telecommunications service shall be permitted by  the  filing
32    of  the  proposed rate, charge, classification, or tariff and
33    shall become effective  14  days  after  its  filing.   Prior
                            -6-               LRB9000613JSgcB
 1    notice  shall  also  be  given  to  all  potentially affected
 2    customers by mail, publication  in  a  newspaper  of  general
 3    circulation, or equivalent means of notice.; and
 4        (c)  if  a  hearing  is  held  pursuant  to Section 9-250
 5    regarding the reasonableness of an increase in the  rates  or
 6    charges  of  a  competitive  local exchange service, then the
 7    telecommunications carrier providing the service  shall  have
 8    the   burden   of   proof   to  establish  the  justness  and
 9    reasonableness of the proposed rate or charge.
10    (Source: P.A. 87-856.)
11        (220 ILCS 5/13-509) (from Ch. 111 2/3, par. 13-509)
12        (This Section is scheduled to be repealed July 1, 1999.)
13        Sec.  13-509.   Agreements  for  provision   of   service
14    differing  from  tariffs.    A telecommunications carrier may
15    file a model contract for any competitive  telecommunications
16    service,  which  includes and specifically describes a range,
17    band,  formula,  or  standard  for  rates  and  charges,  and
18    practices, rules, regulations, terms,  and  conditions  under
19    which  the carrier will offer the services, without regard to
20    any tariffs the carrier may have filed  with  the  Commission
21    with  respect  to  those  services.     A  telecommunications
22    carrier  offering or providing competitive telecommunications
23    service may negotiate with customers or prospective customers
24    to provide competitive telecommunications  services  for  the
25    provision  by  it of such service, and in so doing, may offer
26    or agree to provide such service on such terms and  for  such
27    rates  or  charges  as it deems reasonable, without regard to
28    any tariffs it  may  have  filed  with  the  Commission  with
29    respect  to  such  services.  From time to time, but not less
30    than once a month Within 10 days after  concluding  any  such
31    agreement, the telecommunications carrier shall file either a
32    copy of all contracts any contract or memoranda memorandum of
33    understanding   for   the   provision  of  telecommunications
                            -7-               LRB9000613JSgcB
 1    service, including which shall include  the  rates  or  other
 2    charges,  practices,  rules, or regulations applicable to the
 3    agreed provision of such service, or a letter identifying all
 4    such agreements  and  certifying  that  the  rates,  charges,
 5    practices,  rules,  and  regulations  are consistent with the
 6    model contract filed with the Commission with respect to  the
 7    service.     Upon  filing  a  its contract, or memorandum, or
 8    letter,  the  telecommunications  carrier  shall   thereafter
 9    provide  service according to the filed terms thereof, unless
10    the Commission finds, after  notice  and  hearing,  that  the
11    continued  provision  of service pursuant to such contract or
12    memorandum  would  substantially  and  adversely  affect  the
13    financial integrity  of  the  telecommunications  carrier  or
14    would   cause  the  cross-subsidization  of  any  competitive
15    service by any noncompetitive service.
16        Any model contract contract or memorandum entered into or
17    and filed pursuant to the provisions of this Section may,  in
18    the   Commission's   discretion,   be   accorded  proprietary
19    treatment.
20    (Source: P.A. 84-1063.)
21        Section 99.  Effective date.  This Act takes effect  upon
22    becoming law.

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