Register February 2013 No. 686
Chapter PSC 163
TELECOMMUNICATIONS UTILITY PRICE REGULATION
PSC 163.03 Election of price regulation.
PSC 163.04 Mechanics of price regulation.
PSC 163.05 Rate increases and rate structure changes independent of the price cap index.
PSC 163.06 Price regulation review.
Ch. PSC 163 Note
Note: This chapter is unenforceable as the result of
2011 Wis. Act 22 and will be repealed.
PSC 163.01
PSC 163.01
Purpose. The purpose of this chapter is to effectuate and implement s.
196.196 (1), Stats., as enacted by
1993 Wis. Act 496 (Act 496), generally effective September 1, 1994. The rules promulgated in this chapter determine the procedures for electing price regulation, establish the mechanics of price regulation, set reporting requirements, and create miscellaneous provisions to make more specific the requirements of s.
196.196 (1), Stats.
PSC 163.01 History
History: Cr.
Register, October, 1995, No. 478, eff. 11-1-95.
PSC 163.02
PSC 163.02
Definitions. In this chapter:
PSC 163.02(1)
(1) "Actual price index" or "API" means the company-specific price index for price-regulated services as weighted by the revenues for such services calculated pursuant to
s. PSC 163.04 (5) through
(7).
PSC 163.02(2)
(2) "Anniversary date" means the annual date for administering the mechanics of price regulation.
PSC 163.02(2m)
(2m) "Average employee answer time" means the average speed of answer, including time in queue prior to speaking to the employee representative or otherwise receiving assistance.
PSC 163.02(3)
(3) "Customer" means the end user of the telecommunications services provided by the telecommunications utility.
PSC 163.02(3m)
(3m) "Day" means a calendar day, unless otherwise specified.
PSC 163.02(4)
(4) "Gross Domestic Product - Price Index" or "GDPPI" means the figure as reported by the U.S. Department of Commerce in its Survey of Current Business.
PSC 163.02(5)
(5) "Price cap index" or "PCI" means an index calculated pursuant to
s. PSC 163.04 (2) through
(4) which determines allowable price increases and mandatory price decreases for price-regulated services.
PSC 163.02(6)
(6) "Price-regulated services" means a telecommunications service specified in s.
196.196 (1) (a) 1., Stats., or by the commission in s.
196.196 (1) (a) 2., Stats.
PSC 163.02(7)
(7) "Price regulation" means a form of alternative regulation for telecommunications utilities as set forth in s.
196.196 (1), Stats.
PSC 163.02(8)
(8) "Productivity factor" means an adjustment factor used to make annual adjustments to the GDPPI as set forth in s.
196.196 (1) (c), Stats.
PSC 163.02(9)
(9) "Rate structure changes" include an offering of service that does not result in a net increase in options available to customers and which either represents the modification of a method of charging or provisioning a service or the introduction of a new method of charging or provisioning a service.
PSC 163.02(10)
(10) "Year" means a calendar year, unless otherwise specified.
PSC 163.02 History
History: Cr.
Register, October, 1995, No. 478, eff. 11-1-95; CR-00-184: cr. (2m), (3m) and (10),
Register March 2002 No. 555, eff. 4-1-02.
PSC 163.03
PSC 163.03
Election of price regulation. PSC 163.03(1)
(1) A telecommunications utility opting to be price-regulated under s.
196.196 (1), Stats., shall file with the commission a letter stating its election and containing the following information:
PSC 163.03(1)(b)
(b) A statement that rates for price-regulated services are not greater than those in effect on December 31, preceding the effective date of election, and any amended tariffs, necessary to comply with the requirements for election in s.
196.196 (1), Stats.
PSC 163.03(1)(c)
(c) A statement that access rates will be reduced according to the time schedule of s.
196.196 (2), Stats.
PSC 163.03(2)
(2) Upon satisfactory submission of the foregoing information, and after at least 45 days notice, if applicable under s.
196.196 (1) (b), Stats., the commission shall commence regulating the telecommunications utility in the manner prescribed in s.
196.196 (1), Stats., and this chapter.
PSC 163.03(3)
(3) Within 60 days after election of price regulation, the utility shall file an investment commitment plan under s.
196.196 (5), Stats. Within 120 days after election of price regulation, the commission, after notice and opportunity for hearing, may rescind the election if the utility fails to meet the requirements of s.
196.196 (5) (d), Stats. If a hearing is held, the time within which the commission may act may be extended an additional 30 days.
PSC 163.03 History
History: Cr.
Register, October, 1995, No. 478, eff. 11-1-95;
CR 00-184: am. (3),
Register March 2002 No. 555, eff. 4-1-02.
PSC 163.04
PSC 163.04
Mechanics of price regulation. PSC 163.04(1)
(1)
General. A utility may not request a price increase for any service until its first anniversary date. The anniversary date shall be based on the date the commission commences regulating the telecommunications utility in the manner prescribed in s.
196.196 (1), Stats., and this chapter. For purposes of this section, the utility and the commission may agree on a mutually acceptable date to be deemed to be the "anniversary date" for purposes of annual reporting and determination of allowable price changes. On its first anniversary date and subsequent anniversary dates, the utility shall file the following information with the commission for it to determine the amount the utility may increase or shall decrease its rates:
PSC 163.04(1)(a)
(a) Prior annual revenues to be used to calculate a revenue weighted actual price index. If a change in the rate for a price-regulated service has occurred during the prior year, the prior year's revenues for that service shall be adjusted to reflect annual revenues as if the rate in effect at year end had been in effect the entire year.
PSC 163.04(1)(b)
(b) Prior annual data on the service quality penalty and infrastructure penalty or incentive components as described in
sub. (2) (c) and
(d).
PSC 163.04(1)(c)
(c) A progress report pursuant to s.
196.196 (5) (c), Stats., or, if the utility has fulfilled its infrastructure investment commitment pursuant to s.
196.196 (5) (c), Stats., and has a commission approved optional infrastructure objectives plan under
sub. (2) (dn) 2., a progress report relating to that plan.
PSC 163.04(1)(d)
(d) Any other data requested by the commission related to its discretion to adjust for penalty and incentive factors.
PSC 163.04(2)
(2) Calculating the annual PCI. At the effective date of election of price regulation, the annual price cap index or "PCI" shall be initialized at 100. The annual PCI shall be calculated on the anniversary date each year using the following formula:
The factors used to calculate the annual PCI shall be determined and calculated by the commission in the following manner:
PSC 163.04(2)(a)
(a) Change in GDPPI. On each anniversary date, the annual percentage change in gross domestic product price index or ▲ GDPPI shall be calculated by using the most recent quarterly chain-weighted index and the prior year's corresponding quarterly index, using the same revision series. If the GDPPI is eliminated, the commission shall by order adopt the most comparable replacement index after comments from interested parties and a hearing, if requested.
PSC 163.04(2)(b)
(b) Productivity factor offset. According to s.
196.196 (1) (c), Stats., the productivity factor offset to the ▲ GDPPI shall be 2 percentage points. For a telecommunications utility with more than 500,000 access lines, the percentage offset shall be 3 percentage points. Beginning in the year 2000 and every 3 years thereafter, for the purpose of adjusting the GDPPI percentage offset, pursuant to s.
196.196 (1) (c), Stats., to reflect any statewide changes in the productivity experience of the telecommunications industry, the commission may consider the following historical factors:
PSC 163.04(2)(bm)
(bm) Productivity study. Each time the productivity factors are reviewed pursuant to
par. (b), the commission shall provide for a productivity study for the telecommunications industry in this state. This study shall address the factors in
par. (b) plus additional evidence relative to a utility's ability to increase productivity in the future. The commission shall assess all price-regulated telecommunications utilities for these studies.
PSC 163.04(2)(c)1.1. In creating a quality of service penalty mechanism for inadequate service pursuant to s.
196.196 (1) (c), Stats., the commission shall consider all of the following quality of service components:
PSC 163.04(2)(c)1.a.
a. Responsiveness to customers' requests for service as measured by the average time interval for installation.
