LRB-3532/1
MDK:jld:jf
2001 - 2002 LEGISLATURE
August 15, 2001 - Introduced by Joint committee for review of Administrative
Rules
. Referred to Committee on Small Business and Consumer Affairs.
AB475,1,2 1An Act to create 196.197 of the statutes; relating to: extended area telephone
2service and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Under current law, the public service commission (PSC) is authorized to
regulate the provision of local telephone service. The PSC has promulgated rules
that allow customers to petition the PSC for "extended area telephone service," which
is defined as telephone service in which customers in one exchange may call
customers in other exchanges without incurring toll charges. Under the rules, the
telecommunications utilities serving the affected exchanges must survey customers
about their willingness to pay the rate increases required for the service. Also under
the rules, unless at least 50% of the customers in one of the affected exchanges
respond favorably to the survey, the PSC must deny the petition and is allowed not
to consider another petition regarding the exchanges for two years. Otherwise, the
PSC must hold a hearing on the petition.
Under this bill, the PSC must hold a hearing on a petition if each of the following
applies: 1) at least 50% of the customers in one of the affected exchanges respond to
the survey; and 2) a majority of the customers who respond to the survey are in favor
of the requested service. In addition, the bill requires the PSC to promulgate rules
regarding the process for making a petition and the conditions under which the PSC
may grant a petition.
This bill is introduced as required by s. 227.26 (2) (f), stats., in support of the
action of the joint committee for review of administrative rules on July 18, 2001, in
suspending section PSC 167.08 (2), Wis. Adm. Code, and a portion of section PSC

167.09 (1), Wis. Adm. Code, which are rules of the PSC. The suspended rules require
the PSC to deny a petition, and allow the PSC not to consider a petition, under the
circumstances described above.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB475, s. 1 1Section 1. 196.197 of the statutes is created to read:
AB475,2,5 2196.197 Extended area telephone service. (1) Definition. In this section,
3"extended area telephone service" means telephone service in which customers in
4one exchange may call customers in another exchange or combination of exchanges
5without incurring toll charges.
AB475,2,12 6(2) Procedure. (a) The commission may grant a petition for the provision of
7extended area service. In determining whether a petition will be granted, the
8commission shall require the affected telecommunications utilities to conduct a
9survey of customer willingness to pay any rate increments made necessary by the
10provision of the extended area telephone service. The survey shall be approved by
11the commission and distributed to all customers who would experience a rate
12increase if the petition were granted.
AB475,2,1413 (b) The commission shall hold a public hearing to consider whether the petition
14for extended area telephone service will be granted if all of the following occur:
AB475,2,1615 1. At least 50% of the customers in one of the exchanges surveyed under par.
16(a) respond to the survey.
AB475,2,1817 2. A majority of the customers responding to the survey conducted under par.
18(a) are in favor of the petitioned extended area telephone service.
AB475,3,3
1(3) Rules. Except as provided in sub. (2), the commission shall promulgate
2rules regarding the process by which a petition for extended area telephone service
3may be made and the conditions under which the petition may be granted.
AB475,3,44 (End)
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