State of Illinois
90th General Assembly
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90_SB0893

      220 ILCS 5/13-506.1       from Ch. 111 2/3, par. 13-506.1
          Amends the Public Utilities Act.  Changes a caption to  a
      Section concerning alternative forms of regulation.
                                                     LRB9003364JSgc
                                               LRB9003364JSgc
 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 8        (This Section is scheduled to be repealed July 1, 1999.)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 telecommunications services.
11        (a)  Notwithstanding any of the ratemaking provisions  of
12    this Article or Article IX that are deemed to require rate of
13    return  regulation,  the Commission may implement alternative
14    forms of regulation in order to establish just and reasonable
15    rates   for   noncompetitive   telecommunications    services
16    including,  but  not  limited  to, price regulation, earnings
17    sharing, rate moratoria, or  a  network  modernization  plan.
18    The  Commission  is  authorized  to  adopt different forms of
19    regulation to fit the particular characteristics of different
20    telecommunications carriers and their service areas.
21        In addition  to  the  public  policy  goals  declared  in
22    Section 13-103, the Commission shall consider, in determining
23    the  appropriateness  of  any alternative form of regulation,
24    whether it will:
25             (1)  reduce regulatory delay and costs over time;
26             (2)  encourage innovation in services;
27             (3)  promote efficiency;
28             (4)  facilitate the broad dissemination of technical
29        improvements to all classes of ratepayers;
30             (5)  enhance economic development of the State; and
31             (6)  provide for fair, just, and reasonable rates.
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 1        (b)  A     telecommunications      carrier      providing
 2    noncompetitive  telecommunications  services may petition the
 3    Commission  to  regulate  the  rates  or   charges   of   its
 4    noncompetitive   services   under   an  alternative  form  of
 5    regulation.  The telecommunications carrier shall submit with
 6    its petition its plan for an alternative form of  regulation.
 7    The  Commission  shall  review  and  may modify or reject the
 8    carrier's proposed plan.  The Commission  also  may  initiate
 9    consideration  of  alternative  forms  of  regulation  for  a
10    telecommunications  carrier on its own motion. The Commission
11    may approve the plan  or  modified  plan  and  authorize  its
12    implementation  only  if  it finds, after notice and hearing,
13    that the plan or modified plan at a minimum:
14             (1)  is in the public interest;
15             (2)  will produce fair, just, and  reasonable  rates
16        for telecommunications services;
17             (3)  responds  to  changes  in  technology  and  the
18        structure of the telecommunications industry that are, in
19        fact, occurring;
20             (4)  constitutes   a   more   appropriate   form  of
21        regulation   based   on    the    Commission's    overall
22        consideration  of  the  policy goals set forth in Section
23        13-103 and this Section;
24             (5)  specifically  identifies  how  ratepayers  will
25        benefit from any efficiency gains, cost  savings  arising
26        out   of  the  regulatory  change,  and  improvements  in
27        productivity due to technological change;
28             (6)  will maintain the quality and  availability  of
29        telecommunications services; and
30             (7)  will  not  unduly  or unreasonably prejudice or
31        disadvantage any  particular  customer  class,  including
32        telecommunications carriers.
33        (c)  An  alternative  regulation plan approved under this
34    Section shall provide, as a condition for Commission approval
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 1    of the plan, that for the  first  3  years  the  plan  is  in
 2    effect, basic residence service rates shall be no higher than
 3    those rates in effect 180 days before the filing of the plan.
 4    This  provision  shall  not  be  used  as  a justification or
 5    rationale for an increase in  basic  service  rates  for  any
 6    other  customer  class.  For purposes of this Section, "basic
 7    residence service rates" shall mean monthly recurring charges
 8    for the telecommunications carrier's  lowest  priced  primary
 9    residence  network  access  lines,  along with any associated
10    untimed or flat rate local usage charges.   Nothing  in  this
11    subsection  (c)  shall preclude the Commission from approving
12    an  alternative  regulation  plan  that   results   in   rate
13    reductions  provided  all  the requirements of subsection (b)
14    are satisfied by the plan.
15        (d)  Any alternative form of  regulation  granted  for  a
16    multi-year period under this Section shall provide for annual
17    or more frequent reporting to the Commission to document that
18    the requirements of the plan are being properly implemented.
19        (e)  Upon  petition  by the telecommunications carrier or
20    any other person or upon its own motion, the  Commission  may
21    rescind its approval of an alternative form of regulation if,
22    after  notice  and  hearing, it finds that the conditions set
23    forth in subsection (b) of this  Section  can  no  longer  be
24    satisfied.  Any person may file a complaint alleging that the
25    rates  charged  by  a  telecommunications  carrier  under  an
26    alternative   form   of   regulation   are   unfair,  unjust,
27    unreasonable, unduly discriminatory,  or  are  otherwise  not
28    consistent  with  the requirements of this Article; provided,
29    that the complainant shall bear the  burden  of  proving  the
30    allegations in the complaint.
31        (f)  Nothing  in  this  Section  shall  be  construed  to
32    authorize the Commission to render Sections 9-241, 9-250, and
33    13-505.2 inapplicable to noncompetitive services.
34    (Source: P.A. 87-856.)

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