16 TAC §§26.341 - 26.347
These new sections are adopted under the Public Utility Regulatory
Act, Texas Utilities Code Annotated (Vernon 1998, Supplement 1999) (PURA), §14.002
which provides the Public Utility Commission with the authority to make and
enforce rules reasonably required in the exercise of its powers and jurisdiction; §15.023
which grants the commission the authority to impose an administrative penalty
against a person regulated under this title who violates this title or rule
or order adopted under this title; Senate Bill 86, Act of May 26, 1999, 76th
Legislative Session, chapter 1579, §3, 1999 Texas Session Law Service
5424 (Vernon) (codified as amendments to the Public Utility Regulatory Act,
Texas Utilities Code Annotated, chapter 17); §17.052 which grants the
commission authority to adopt and enforce rules to require certification or
registration with the commission as a condition of doing business in this
state, amend certificates of registration, establish rules for customer service
and protection, suspend or revoke certificates or registrations for repeated
violations of this chapter or commission rules; and Chapter 55, Subchapter
H, Pay Telephones, which establishes the commission's authority over pay telephone
service and pay telephone service providers.
Cross-Reference to Statutes: Public Utility Regulatory Act §§14.002,
15.023, 17.052, 55.171, 5.172, 55.173, 55.174, 55.175, 55.176, 55.177, 55.178,
55.179, and 55.180.
§26.341. General Information Relating to Pay Telephone Service (PTS).
(a)
Definition. The term "rate information", when used in
this subchapter, shall mean all charges ultimately charged by the PTS provider,
including any surcharges, fees, and any other form of compensation charged
by the PTS provider on behalf of the operator service provider.
(b)
Registration. All pay telephone service providers shall
register with the commission pursuant to §26.102 of this title (relating
to Registration Requirements for Pay Telephone Service Providers).
(c)
Violation of regulations. The commission may order disconnection
of service for up to one year for repeat violations of commission rules. If
the commission finds that a registered pay telephone service provider has
violated any provision of this section, the commission shall order the provider
to take corrective action, as necessary, and the provider may be subject to
administrative penalties and other enforcement actions pursuant to the Public
Utility Regulatory Act (PURA), Chapter 15. Further, if the commission finds
that a registered pay telephone service provider has repeatedly violated any
provisions of this section, the commission shall order termination of a pay
telephone service provider's registration pursuant to PURA, §17.052.
(d)
Enforcement. The commission shall coordinate its enforcement
efforts against a pay telephone service provider for fraudulent, unfair, misleading,
deceptive, or anticompetitive business practices with the Office of the Attorney
General, to ensure consistent treatment of specific alleged violations.
§26.342. Pay Telephone Service Tariff Provisions.
(a)
Available upon request. Upon formal request for service
by any prospective provider of pay telephone service (PTS), a certificated
telecommunications utility (CTU) is required to file a tariff providing for
interconnection of customer-owned pay telephones, except as otherwise provided
in subsection (b) of this section.
(b)
Special assembly tariffs. A CTU with fewer than 50 pay
telephone lines may provide pay telephone access service (PTAS) pursuant to
existing special assembly tariffs; however, in no event may a CTU provide
to more than ten special assembly arrangements. Special assembly rates must
be computed in accordance with this section. CTUs that provide PTAS pursuant
to special assembly tariffs must enter into a written agreement with the PTS
provider that requires the provider to perform all functions and obligations
specified in §26.344 of this title (relating to Pay Telephone Service
Requirements). When a CTU that holds a certificate of convenience and necessity
(CCN) makes its initial filing to offer PTAS, the application must include
the proposed tariff, cost studies or a commission approved rate for similar
services offered by a larger CTU holding a CCN.
(c)
Enforcement of tariff requirements. If a PTS provider
is in violation of a tariff provision, the CTU must notify the PTS provider
of the violation in writing. Such notice must refer to the specific tariff
provisions being violated. The notice must state that the PTS provider is
subject to disconnection by the CTU of the instrument(s) in violation of the
tariff unless the PTS provider corrects the violation and notifies the CTU
in writing, within 20 days of receipt of the notice of the violation, that
the violation has been corrected. The CTU may disconnect the instrument(s)
that are in violation of the tariff on or after the 20th day after receipt
of the notice by the PTS provider, if the PTS provider did not notify the
CTU in writing within 20 days of receipt of the notice that the violation
was corrected. However, if the PTS provider has filed a complaint with the
commission regarding the disconnection and has provided the CTU with a copy
of the complaint that indicates that the complaint has been filed with the
commission within 20 days of receipt of the notice of a violation from the
CTU, the CTU may not disconnect the instrument(s) pending resolution of the
complaint by the commission.
§26.343. Responsibilities for Pay Telephone Service (PTS) of Certificated Telecommunications Utilities (CTUs) Holding Certificates of Convenience and Necessity (CCNs).
(a)
A listing in the local telephone directory for each pay
telephone must be provided to any provider of pay telephone service (PTS)
on request.
(b)
Pay telephone access service (PTAS) must be available
in all exchanges.
(c)
Incoming and outgoing call screening on pay phone calls
must be provided where facilities are available.
(d)
Regardless of whether call screening is available, the
CTU will not bill any call, including, but not limited to, third number billed,
collect, "0+" or "0-" calls, to a number which has been clearly identified
to the certificated telecommunications utility operator at the time of the
call attempt as a pay telephone. The certificated telecommunications utility
will not be responsible for refunds or adjustments of charges for calls placed
through non-certificated telecommunications utilities carrier operators, except
as provided in §26.347 of this title (relating to Fraud Protection for
Pay Telephone Service).
(e)
The CTU need not initiate a maintenance service call or
take any other action in response to a trouble report on a customer-owned
pay telephone until such time as requested by the pay telephone owner or its
agent. The pay telephone owner must keep the CTU advised of the identity of
the pay telephone owner or agent authorized to request a maintenance service
call.
(f)
The CTU must provide to a PTS provider using automated
call completion technology to complete operator service calls the same services
and information that the CTU provides to interexchange carriers in §26.313(d)(1)
and (2) of this title (relating to General Requirements Relating to Operator
Services), on the same prices, terms, and conditions that any interexchange
carrier receives from the CTU.
(g)
CTUs must file tariffs to offer direct dialed international
call blocking ("011+" and "1010XXX+011+") as facilities become available.
§26.344. Pay Telephone Service Requirements.
(a)
Requirements before call is completed. If the pay telephone
service (PTS) provider uses automated call completion technology to complete
operator service calls, the provider of PTS must:
(1)
audibly and distinctly identify itself to the caller upon
answering;
(2)
audibly and distinctly identify itself to the billed
party, if the billed party is different from the caller;
(3)
provide a mechanism for the caller to obtain rate
information, without charge, 24 hours a day, seven days a week; and
(4)
permit the caller or billed party to terminate the
call at no charge prior to completion of the call by the PTS provider.
(b)
E911 or 911 calls, and "0-" calls. The PTS provider must
allow E911 or 911 calls to be outpulsed directly to the Public Service Answering
Point at no charge and without requiring a coin or credit card. This requirement
does not apply to pay telephones accessible to inmates of confinement facilities.
(c)
Access.
(1)
The PTS provider must:
(A)
provide access to operator services, 24 hours a day, seven
days a week, at no charge and without requiring a coin or credit card;
(B)
provide access to directory assistance, 24 hours a day,
seven days a week;
(C)
provide access that includes the local exchange calling
scope of the certificated telecommunications utility (CTU) furnishing the
pay telephone access service (PTAS) including mandatory extended area service
(EAS) and expanded local calling (ELC), except that ELC rate additives are
not applicable to PTS access lines; and
(D)
provide access to the operator of a local exchange company
that meets the requirements enumerated in §26.315(c) of this title (relating
to Requirements for Dominant Certificated Telecommunications Utilities (DTCUs)
and that serves the area from which the call is made, at no charge and without
requiring a coin or credit card, either:
(i)
by directly routing all local operator calls to such local
exchange company operator, without charge to the caller; or
(ii)
by transfer or redirection of the call by an operator
service provider (OSP) in accordance with the provisions of §26.319(1)(A)(ii)(I)-(III)
of this title (relating to Access to the Operator of a Local Exchange company
(LEC)).
(2)
The PTS provider must also allow access
to other telecommunications utilities unless otherwise provided in subparagraph
(C) of this paragraph.
(A)
Access to interexchange carriers by "950-XXXX" and "1-800"
or "1-888" numbers must not be blocked.
(B)
Access to interexchange carriers by "1010XXX+0" (whether
"1010XXX+0+" or "1010XXX+0-") dialing must not be blocked if the end office
serving the originating line has originating line screening (OLS) capability.
(C)
To prevent fraudulent use of the pay telephone, the access
requirement is explicitly waived under the following conditions without prior
application to the commission:
(i)
Access to interexchange carriers by "1010XXX+0" (whether
"1010XXX+0+" or "1010XXX+0-") dialing may be blocked, if the end office serving
the originating line does not have OLS screening capability.
(ii)
Access to interexchange carriers by "1010XXX+1" dialing
may be blocked.
(3)
The requirements of this paragraph do not
apply to pay telephones accessible to inmates of confinement facilities.
(d)
Other.
(1)
The PTS provider must:
(A)
ensure that end users can place all local and toll calls,
except direct-dialed international calls, from the pay telephone, including,
but not limited to, operator-assisted international calls, collect calls,
third number billed calls, and calling card calls;
(B)
be responsible for the payment of charges for all local
and toll messages, including, but not limited to, non-local directory assistance
charges, except as provided in §26.347 of this title (relating to Fraud
Protection for Pay Telephone Service);
(C)
comply with all applicable federal, state and local laws
and regulations including those concerning the use of pay telephones by disabled
and/or hearing- or speech-impaired persons;
(D)
not attach extension telephones to pay telephones, unless
the pay telephone displays a notice that legibly and conspicuously states
in capital letters, "YOUR CONVERSATION MAY BE OVERHEARD BECAUSE AN EXTENSION
TELEPHONE IS ATTACHED TO THIS PHONE LINE.";
(E)
not impose a time limit on local calls;
(F)
ensure operator-assisted intrastate long distance usage
sensitive rates are billed in increments of one minute or less, provided that
the total per minute fee does not exceed the rate authorized in §26.346
of this title (relating to Rates and Charges for Pay Telephone Service);
(G)
return to the end-user any pre-paid fee for a direct dialed
intrastate long distance and/or local call that does not result in a completed
call;
(H)
not charge the caller for any uncompleted call in accordance
with the provisions of §26.313(c)(1)-(4) of this title (relating to General
Requirements Relating to Operator Services);
(I)
not charge a fee for a local call greater than that posted
on the informational placard attached to each pay phone;
(J)
provide access to ILEC operators by dialing either "0"
or "00" access codes; and
(K)
the requirements of paragraph (1)(A) and (E) of this subsection
do not apply to pay telephones accessible to inmates of confinement facilities.
(2)
If the PTS provider uses automated call completion
technology to complete operator service calls, and if validation information
is available for calls that the PTS provider (or a third-party billing and
collection agent operating on behalf of the PTS provider) will bill through
a certificated telecommunications utility, the PTS provider is required to
validate the call and is allowed to submit the call for billing only if the
call was validated.
(3)
PTS may be connected to, from, or through a customer-provided
telecommunications switching system, or local exchange carrier-provided central
office switching system, provided that the PTS provider meets all requirements
of this rule. The PTS provider must ensure that access to E-911, 911 and/or
0- is not blocked and must comply with all legislative and rule requirements
regarding the operation of E-911 and 911. This access configuration is not
allowed if it prevents usage measurement, by the local exchange carrier, of
a local exchange carrier-provided PTAS line. For purposes of this paragraph,
local exchange carrier is defined as any entity holding either a certificate
of convenience and necessity (CCN), certificate of operating authority (COA),
or service provider certificate of operating authority (SPCOA).
(e)
Applications for waivers of the requirement for access.
The commission may approve waivers to the access requirements of subsection
(c) of this section to prevent fraudulent use of telephone services or for
other good cause. Applications for waiver may be filed by the provider of
pay telephone service. The commission shall process such applications for
waiver using the criteria and procedures set forth in §26.319(3)(B) of
this title.
§26.345. Posting Requirements for Pay Telephone Service Providers.
(a)
The pay telephone service (PTS) provider must attach to
each instrument a card that provides:
(1)
instructions in English and Spanish for accessing emergency
service subject to the conditions contained in subparagraphs (A) and (B) of
this paragraph:
(A)
where E-911 or 911 emergency service is available, the
caller must be instructed to dial 911 and the PTS provider must allow E-911
or 911 calls to be outpulsed directly to the Public Service Answering Point
at no charge and without requiring a coin or credit card; or
(B)
where E-911 or 911 is not available, the caller must be
instructed to dial "0" and dialing "0" must, at no charge and without requiring
a coin or credit card, directly connect the caller with an operator service
provider (OSP) that is in compliance with the technical standards set forth
in §26.321(b) of this title (relating to 9-1-1 calls, "0-" calls, and
End User Choice);
(2)
instructions for use, including specifically
instructions for completion of local and toll calls, access to operator services,
access to directory assistance, obtaining refunds, obtaining repair service,
registering complaints at a designated toll-free telephone number, reporting
out-of-service conditions, and using one- way calling (if the instrument is
so equipped); and
(3)
notice stating the name, address, and ten digit telephone
number for the pay telephone owner or agent providing the set, and providing
the name and toll-free telephone number of the owner or agent responsible
for refunds and repairs; and
(4)
if an extension has been attached, a notice that
legibly and conspicuously states in capital letters: "YOUR CONVERSATION MAY
BE OVERHEARD BECAUSE AN EXTENSION TELEPHONE IS ATTACHED TO THIS PHONE LINE.";
and
(5)
a placard that clearly states the fee for completing
a local call from that telephone.
(b)
PTS providers must also attach to each instrument a card
that says : "The long distance carrier serving this phone is {insert name
of the pre-subscribed long distance telecommunications service provider}.
You can learn what its rates are by calling {insert long distance telecommunications
service providers' toll-free rate information phone number} at any hour at
no cost to you. If you would rather use another long distance carrier, you
can either use {insert name of incumbent local exchange provider}'s operator
by calling {insert dialing directions here}, or use your own long distance
carrier by following its dialing instructions or asking the operator for assistance."
(c)
If the PTS provider subscribes to the services of an operator
service provider (OSP) that is required to comply with Subchapter M of this
chapter (relating to Operator Services), the PTS provider remains liable for
compliance with this section, but may coordinate with the OSP so that information
to be provided at the pay telephone set is not duplicated. If the PTS provider
uses automated call completion technology to complete some operator service
calls and subscribes to the services of an OSP that is required to comply
with Subchapter M of this chapter, the PTS provider must ensure that the information
provided at the pay telephone set clearly informs the caller about which information
applies to which operator service calls.
(d)
If a pay telephone cannot receive incoming calls, the
PTS provider shall place in a conspicuous location on the pay telephone a
notice, in letters one-quarter inch high, stating, "THIS TELEPHONE CANNOT
RECEIVE TELEPHONE CALLS." Furthermore, the PTS provider shall not display
the number of the pay telephone on any such telephone that does not receive
incoming calls.
(e)
The requirements of this subsection do not apply to pay
telephones accessible to inmates of confinement facilities.
(f)
Applications for modification of information to be provided
at the pay telephone set. The commission may approve applications for modification
of the requirements contained in subsection (b) and (c) of this section upon
showing of good cause by the PTS provider. The commission shall process applications
for modification using the criteria and procedures set forth in §26.317(c)
of this title (relating to Information to be Provided at the Telephone Set).
§26.346. Rates and Charges for Pay Telephone Service.
(a)
Rate structure. Certificated telecommunications utility
(CTU) rates for wholesale service must be designed on a flat access line and/or
a local message usage rate basis. Multi-element measured rates are prohibited.
In areas without measuring capabilities, the CTU may use a flat rate usage
surrogate instead of a per call message rate. Measurement capabilities are
defined as the capability in place to measure and bill pay telephone usage
without incurring unreasonable expense.
(b)
Charges.
(1)
A pay telephone service (PTS) provider must:
(A)
not impose on pay phone end users any charge for calls
made under Chapter 771 or 772 of the Texas Health and Safety Code;
(B)
not impose a charge for "950-XXXX" calls, "1010XXX+0",
or "1-800" or "1-888"-type calls to nonpresubscribed interexchange carriers
(for example "1-800-COLLECT" , "1-800-CALLATT", or "1-800-877- 8000");
(C)
not impose a charge for local calls from pay telephones
to the Telecommunications Relay Service (TRS);
(D)
for local calls which are collect, operator-assisted or
paid by credit card or calling card, not impose a charge which exceeds the
highest applicable rate for such calls of any of the four largest interexchange
carriers operating in this state; and
(E)
for credit card, calling card, or live or automated operator-handled
toll calls, not charge a rate or total charge that exceeds the authorized
rates and charges listed in subparagraph (F) of this paragraph.
(F)
charge no more than these rate caps for intrastate long
distance and operator-assisted calls at Texas pay phones:
Figure: 16 TAC §26.346(b)(1)(F).
(2)
The requirements of paragraph (1)(A) through
(C) of this subsection do not apply to pay telephones accessible to inmates
of confinement facilities.
§26.347. Fraud Protection for Pay Telephone Service.
(a)
Notwithstanding the provision of §26.319(1)(C) of
this title (relating to Access to the Operator of a Local Exchange Company
(LEC)) that would otherwise require notice to interexchange carriers, an operator
services provider (OSP) must not bill the pay telephone service (PTS) provider
for charges for any call billed to a pay telephone line where the call originated
at that pay telephone by use of "1010XXX+0", "1010XXX+01", "950-XXXX", or
"1-800" or "1-888" access codes, or where the call(s) originated at that pay
telephone and otherwise reached an operator position, if the originating telephone
line was subscribed to outgoing call screening and the call was placed after
the effective due date of the outgoing call screening service order.
(b)
An OSP or PTS provider that uses automated call completion
technology to complete operator service calls must not bill charges for any
collect or third number billed call to a PTS provider if the pay telephone
line to which the call was billed was subscribed to incoming call screening
and the call was placed after the effective due date of the incoming call
screening service order.
(c)
Any calls billed through a certificated telecommunications
utility in violation of subsections (a) and (b) of this section must be removed
from the PTS provider's bill by the certificated telecommunications utility
upon identification and verification that the violation occurred. If it is
determined that, at the time of the violation, the appropriate incoming or
outgoing call screening was available to the OSP or PTS provider that uses
automated call completion technology to complete operator service calls at
the time of the call, the certificated telecommunications utility may return
the charges for said call to the OSP or PTS provider as unbillable.
(d)
Any calls billed directly by an OSP or PTS provider that
uses automated call completion technology to complete operator service calls
in violation of subsection (a) or (b) of this section must be removed from
the PTS provider's bill by the OSP or PTS provider upon identification. The
OSP or PTS provider using automated call completion technology to complete
operator service calls may request an investigation of such a call by the
certificated telecommunications utility serving the pay telephone to which
the call was billed. If the certificated telecommunications utility (CTU)
determines that the appropriate incoming or outgoing call screening was not
available to the OSP or PTS provider using automated call completion technology
to complete operator service calls at the time of the call, the OSP or PTS
provider may bill the charges for said call to the relevant certificated telecommunications
utility.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed
with the Office of the Secretary of State on March 15, 2000.
TRD-200001966
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Effective date: April 4, 2000
Proposal publication date: October 15, 1999
For further information, please call: (512) 936-7308
Subchapter I. ALTERNATIVE REGULATION
16 TAC §26.171
The Public Utility Commission of Texas (commission) adopts
new §26.171 relating to Small Incumbent Local Exchange Company Regulatory
Flexibility with changes to the proposed text published in the November 12,
1999,
Texas Register
(24 TexReg 9932). The
new rule replaces §23.94 of this title (relating to Small Local Exchange
Carrier Regulatory Flexibility.) The rule is necessary to expedite approval
of services offered by small incumbent local exchange companies (ILECs) in
accordance with the Public Utility Regulatory Act (PURA), Chapter 53, Subchapter
G. This new section is adopted under Project Number 17709.
When compared to §23.94, §26.171 offers the following enhancements.
First, subsection (a)(2), which describes the application of the rule, is
clarified to state that the rule is not applicable to cooperative corporations
partially deregulated under PURA, Subchapter H, as specified in PURA §53.302.
In addition, subsection (a)(2) is refined to conform to PURA §53.303
pertaining to the exclusivity of provisions in Subchapter G. Second, subsection
(c), which describes filing procedures, is modified to mirror the services
identified in PURA §53.304(a). Third, subsection (d), as modified, no
longer contains a requirement to provide notice to customers of rate decreases.
Fourth, subsection (f)(3) is added to the rule to identify the applicable
rate-setting principles required by PURA §53.307. Fifth, subsection (g)
of the rule is modified to describe when the commission may suspend the effective
date of a tariff, pursuant to PURA §53.306(b). Sixth, subsection (i)
of the rule is eliminated to be consistent with PURA §53.304(a)(1), which
identifies companies eligible to file under PURA, Chapter 53, Subchapter G,
and with PURA §53.302, which identifies companies not eligible to file
under Subchapter G. Seventh, references to 'experimental services' are deleted
from §26.171 because there is no mention of experimental services in
PURA, Chapter 53, Subchapter G.
The Appropriations Act of 1997, HB 1, Article IX, Section 167 (Section
167) requires that each state agency review and consider for readoption each
rule adopted by that agency pursuant to the Government Code, Chapter 2001
(Administrative Procedure Act). Such reviews include, at a minimum, an assessment
by the agency as to whether the reason for adopting or readopting the rule
continues to exist. The commission held three workshops to conduct a preliminary
review of its rules. As a result of these workshops, the commission is reorganizing
its current substantive rules located in 16 Texas Administrative Code (TAC)
Chapter 23 to (1) satisfy the requirements of Section 167; (2) repeal rules
no longer needed; (3) update existing rules to reflect changes in the industries
regulated by the commission; (4) do clean-up amendments made necessary by
changes in law and commission organizational structure and practices; (5)
reorganize rules into new chapters to facilitate future amendments and provide
room for expansion; and (6) reorganize the rules according to the industry
to which they apply. Chapter 26 has been established for all commission substantive
rules applicable to telecommunications service providers.
The commission requested comments on the Section 167 requirement as to
whether the original reasons for adopting the rule continue to exist. Initially,
the commission determined that §23.94 was no longer necessary and proposed
to repeal §23.94 without replacement. However, the commission received
comments on September 7, 1999 from the Texas Statewide Telephone Cooperative,
Inc. (TSTCI), representing 20 telephone cooperatives and 16 small telephone
companies, supporting readoption of the rule. Subsequently, the commission
published a proposal to repeal §23.94 and to replace §23.94 with
new §26.171. The commission concludes that the original reasons for adopting §23.94
continue to exist.
On December 13, 1999, the commission received comments on the proposed
new §26.171 from TSTCI. The comments are summarized herein.
Comments on §26.171(d)
Subsection (d) contains the notice requirements for a statement of intent
filed pursuant to §26.171. TSTCI recommended subsection (d)(1) and (2)
be modified to require notice to each affected 'county' instead of each affected
'telephone exchange' to be consistent with Procedural Rule §22.51(a)(1)
(relating to Notice) and to relieve small ILECs from the burden of requesting
a good cause exception to the exchange-specific notice requirement in the
published rule. Further, TSTCI recommended the following statement be added
to subsection (d) to address special circumstances in small ILEC territories:
"Newspaper notice for paragraphs (1) and (2) of this subsection shall be provided
in a newspaper of general circulation in the particular area(s) affected by
the proposed change if a newspaper with general circulation in the entire
county does not exist."
The commission accepts the recommendations of TSTCI and modifies subsection
(d) accordingly. The recommendations of TSTCI address the concern of the commission
that a newspaper published within a particular county might not be distributed
in every telephone exchange within that county. Subsection (d), as modified,
provides certainty that notice will be published in all areas affected by
a small ILEC's statement of intent.
Comments on §26.171(d)(6)
Subsection (d)(6) contains a requirement to publish notice of a statement
of intent filed pursuant to §26.171 in the
Texas Register
. TSTCI recommended that subsection (d)(6) be clarified
to state: "Following approval of the notice by the presiding officer, the
commission shall submit notice
of the small ILEC's
filing of the statement of intent
to the Texas Register for publication."
(clarifying language italicized) The commission accepts the recommendation
of TSTCI and modifies subsection (d)(6) accordingly.
All comments, including any not specifically referenced herein, were fully
considered by the commission. In adopting this section, the commission makes
other minor modifications for the purpose of clarifying its intent.
This section is adopted under the Public Utility Regulatory Act,
Texas Utilities Code Annotated §14.002 (Vernon 1998) (PURA) which provides
the commission with the authority to make and enforce rules reasonably required
in the exercise of its powers and jurisdiction.
Cross Reference to Statutes: Public Utility Regulatory Act §14.002
and §§53.301 - 53.308.
§26.171. Small Incumbent Local Exchange Company Regulatory Flexibility.
(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 new 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 statements of intent 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 statement of intent 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 or a new service on
an optional basis or make a minor change in its rates or tariffs.
(1)
Statement of intent. At least 91 calendar days before
the effective date of the proposed change, the small ILEC shall file six copies
of a statement of intent with the commission's Filing Clerk and shall serve
a copy upon the Office of Public Utility Counsel. Such statement of intent
shall include:
(A)
a copy of the notice required by subsection (d) of this
section;
(B)
a sufficient description of how notice will be provided
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; and
(L)
any other information the small ILEC wants considered
in connection with the statement of intent.
(2)
Response to the statement of intent. No later
than ten calendar days after the small ILEC files the statement of intent,
the presiding officer assigned to the project shall notify the small ILEC
of any deficiencies in the statement of intent, whether the proposed notice
is approved, and whether a waiver request, if any, is granted.
(d)
Notice. A small ILEC satisfies the notice requirements
in paragraphs (1)-(5) of this subsection by completing notice no later than
61 days before the proposed effective date of the tariff sheets. If notice
is not completed as required, the proposed effective date shall be postponed
for as many days as completion of notice is delayed. Newspaper notice required
in paragraphs (1) and (2) of this subsection shall be provided in a newspaper
of general circulation in the particular area(s) affected by the proposed
change if a newspaper with general circulation in the entire county does not
exist.
(1)
Extended local calling service or new service. For extended
local calling service or for a new service, either two weeks published notice
in a newspaper of general circulation in each county affected by the statement
of intent or direct mail notice to each affected customer shall be required
or, in the case of a cooperative, publication of notice in the cooperative's
newsletter and direct mail notice to affected nonmember customers shall be
required.
(2)
Rate increases. For a rate increase, notice shall
be published for four weeks in a newspaper of general circulation in each
county affected by the rate increase and direct mail notice shall be provided
to each affected customer.
(3)
Good cause exceptions. The presiding officer may
require for good cause that notice be provided in addition to notice proposed
by the small ILEC or may waive for good cause the publication of notice requirement
prescribed by this section for a proposed new service.
(4)
Contents of notice. Each notice must include:
(A)
a description of the service(s) affected by the proposed
change;
(B)
a list of rates affected by the statement of intent 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.
(5)
Proof of notice. Within seven calendar days
following completion of notice, the small ILEC or a representative of the
small ILEC shall file one or more affidavits establishing proof of direct
mail notice and published notice required by this subsection and shall file
a copy of each published notice.
(6)
Texas Register
notice.
Following approval of the notice by the presiding officer, the commission
shall submit notice of the small ILEC's filing of the statement of intent
to the
Texas Register
for publication.
(e)
New service availability. If the statement of intent concerns
a new service, as defined in §26.5 of this title, that will not be offered
systemwide, the small ILEC shall explain separately for each telephone exchange
why the new service cannot be offered systemwide.
(f)
Rates and revenues. The following requirements apply to
a statement of intent 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 shall 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 considered under this
section shall be effective on the date proposed by the small ILEC, unless
the effective date is suspended.
(2)
Suspension. The effective date of a proposed tariff
may be suspended up to 150 calendar days to provide the commission an opportunity
to review the statement of intent. Additionally, within 35 calendar days of
the filing of the proof of completion of notice, the presiding officer shall
suspend the effective date if within 30 calendar days following completion
of 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 shall 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 shall provide a small ILEC a
reasonable opportunity to modify its statement of intent to address conditions
that exist, if any, under subsection (g)(2) of this section. If conditions
under subsection (g)(2) 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 shall be automatically suspended and
the commission shall review the statement of intent in accordance with the
commission's procedural rules applicable to docketed cases.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on March 16, 2000.
TRD-200001984
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Effective date: April 5, 2000
Proposal publication date: November 12, 1999
For further information, please call: (512) 936-7308