LRB-4183/1
MDK:jld&wlj:jf
2001 - 2002 LEGISLATURE
December 19, 2001 - Introduced by Senators Jauch, Harsdorf, Hansen and
Schultz, cosponsored by Representatives Pettis, Freese, Gronemus, Plouff,
Hundertmark, Sykora, Townsend, Kedzie, Lippert, Hubler, Lassa,
Loeffelholz, Musser, Sherman, Ott, Hines, Albers and Ainsworth. Referred
to Committee on Health, Utilities, Veterans and Military Affairs.
SB355,1,3
1An Act to create 196.204 (8) and 196.52 (10) of the statutes;
relating to:
2cross-subsidization requirements public and service commission jurisdiction
3regarding small telecommunications utilities.
Analysis by the Legislative Reference Bureau
Under current law, with certain exceptions, a telecommunications utility may
not subsidize any activity, including the activity of an affiliate, that is not subject to
regulation by the public service commission (PSC). In addition, the PSC is allowed
to attribute any revenues derived from the sale of directory advertising or directory
publishing rights to the regulated activities of a telecommunications utility for
purposes of rate making. Also, with certain exceptions, a telecommunications utility
must offer telecommunications services at prices that exceed total service long-run
incremental costs, except for telecommunications services that are offered by a
competitor, which are subject to other price restrictions.
Also under current law, PSC has supervisory jurisdiction over contracts
between telecommunications utilities and their affiliated interests, but only as
necessary to enforce the requirements described above and certain other
requirements regarding users of telecommunications services. In general, an
"affiliated interest" is any person owning or holding, directly or indirectly, 5% or more
of the voting securities of a public utility, including a telecommunications utility.
With one exception, this bill exempts a telecommunications utility from all of
the above if the telecommunications utility has less than 50,000 access lines in use
in this state. If a telecommunications utility is owned by a holding company, the
telecommunications utility's access lines, as well as the access lines of all other
telecommunications utilities owned by the holding company, are counted to
determine whether the telecommunications utility has less than 50,000 access lines.
However, the access lines of a commercial mobile radio service provider are not
counted. The bill defines "holding company" as a person that owns 50% or more of
the outstanding voting securities of a telecommunications utility.
The one exception under the bill is that, for purposes of rate making, the PSC
is allowed, as under current law, to attribute any revenues derived from the sale of
directory advertising or directory publishing rights to the regulated activities of a
telecommunications utility, including a telecommunications utility that has less
than 50,000 access lines in this state.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB355, s. 1
1Section
1. 196.204 (8) of the statutes is created to read:
SB355,2,52
196.204
(8) (a) In this subsection, "holding company" means a person that, in
3any chain of successive ownership, directly or indirectly as a beneficial owner, owns,
4controls, or holds 50% or more of the outstanding voting securities of a
5telecommunications utility.
SB355,2,126
(b) Except for sub. (2), this section does not apply to a telecommunications
7utility that has less than 50,000 access lines in use in this state. For purposes of this
8paragraph, if a telecommunications utility is owned, controlled, or held by a holding
9company, the number of access lines in use in this state by the telecommunications
10utility shall include the number of access lines in use in this state by all other
11telecommunications utilities, other than commercial mobile radio service providers,
12that are owned, controlled, or held by the holding company.
SB355, s. 2
13Section
2. 196.52 (10) of the statutes is created to read:
SB355,3,214
196.52
(10) (a) In this subsection, "holding company" means a person that, in
15any chain of successive ownership, directly or indirectly as a beneficial owner, owns,
1controls, or holds 50% or more of the outstanding voting securities of a
2telecommunications utility.
SB355,3,93
(b) This section does not apply to a telecommunications utility that has less
4than 50,000 access lines in use in this state. For purposes of this paragraph, if a
5telecommunications utility is owned, controlled, or held by a holding company, the
6number of access lines in use in this state by the telecommunications utility shall
7include the number of access lines in use in this state by all other
8telecommunications utilities, other than commercial mobile radio service providers,
9that are owned, controlled, or held by the holding company.
