196.215
196.215
Election of rate regulation and flexible regulation of small telecommunications utilities. 196.215(1)(am)
(am) "Equity-thin utility" means a small telecommunications utility with less than 25% common stock equity in its total capital structure.
196.215(2)(b)
(b) By a majority vote of all the voting members of its board of directors.
196.215(2)(c)
(c) Except as provided in
sub. (2g), by a determination of the commission that:
196.215(2)(c)1.
1. The small telecommunications utility's proposed rate increase for any service except the provision of residential basic local exchange service including nonoptional extended area service exceeds, in any one year, 30% or the small telecommunications utility's proposed rate increase for residential basic local exchange service including nonoptional extended area service exceeds, in any one year, 30% or $2, whichever is higher.
196.215(2)(c)1m.
1m. The small telecommunications utility's proposed rate increases for any service except the provision of residential basic local exchange service including nonoptional extended area service exceed, in any 4 consecutive years, 100% or the small telecommunications utility's proposed rate increases for residential basic local exchange service including nonoptional extended area service exceed, in any 4 consecutive years, 100% or $10, whichever is higher.
196.215(2)(c)2.
2. The small telecommunications utility has failed to comply substantially with this section or
s. 196.213.
196.215(2d)
(2d) Notwithstanding
sub. (2), a small telecommunications utility shall be subject to
s. 196.26 if it is a party in a proceeding on a complaint specified in
s. 196.26 (1) (b) or
(c).
196.215(2g)(a)(a) In this subsection, "basic local exchange service" means any service providing access to and the transmission of 2-way switched voice communications within a local calling area, including touchtone service, but does not include installation of or enhancements to basic local exchange service or local per-call coin charges.
196.215(2g)(b)
(b) A small telecommunications utility may petition the commission for an exemption from
sub. (2) (c) 1. and
1m. for a proposed rate increase for a telecommunications service other than basic local exchange service. The commission may grant the petition if it is reasonable and in the public interest. If the commission does not enter an order disposing of the petition within 20 days after its receipt, the petition is denied.
196.215(2m)(c)
(c) A small telecommunications utility that the commission has made subject to
ss. 196.28 and
196.37 as they apply to any rate, toll or charge and to
ss. 196.02 (2),
196.09 (2) to
(7),
196.11 (2),
196.20 and
196.26 under
sub. (2) (c) 1. and
1m. may exempt itself from those sections by withdrawing the proposed rate increase that exceeds the limits established in
sub. (2) (c) 1. or
1m. A small telecommunications utility may refile a proposed rate increase at any time unless the commission has determined rates, tolls or charges under
sub. (6) (b).
196.215(3)(a)(a) If within 60 days after notice of a proposed rate increase is mailed under
s. 196.213 the commission has not received petitions from at least the number of eligible consumers specified in
par. (am) of the small telecommunications utility requesting that the commission determine rates, tolls or charges on the proposed increase, the commission shall certify that fact to the small telecommunications utility and the small telecommunications utility's proposed rate increase shall take effect as published in the notice under
s. 196.213. Rates, tolls and charges established by a small telecommunications utility under this paragraph shall be in effect for at least 365 days. If within 60 days after notice of a proposed rate increase is mailed the commission receives petitions from at least the number of eligible consumers specified in
par. (am) of the small telecommunications utility requesting that the commission determine rates, tolls or charges on the proposed increase, the commission shall proceed under
sub. (6) (d).
196.215(3)(am)1.1. In the case of a proposed rate increase for a class of consumers under
s. 196.213 (1) (a) 2. who purchase access to the local exchange operated by the small telecommunications utility that exceeds, in any 12-month period, the percentage increase in the U.S. consumer price index for all urban consumers, U.S. city average, for the previous year and that is not identical to the corresponding increase in charges for interstate access to the local network applicable to this class of consumers, the eligible consumers under
par. (a) shall be any combination of telecommunications utilities or telecommunications carriers subject to this proposed rate increase that are billed for 10% or more of the small telecommunications utility's revenues derived from charges for intrastate access to the local network.
196.215(3)(am)2.
2. For a proposed rate increase for any class of consumers under
s. 196.213 (1) (a) 1., the number of eligible consumers under
par. (a) shall be equal to 9.5% of the small telecommunications utility's access lines in use unless this number is:
196.215(3)(am)2.a.
a. Less than 50, in which case 50 consumers shall constitute the number of eligible consumers; or
196.215(3)(am)2.b.
b. Greater than 500, in which case 500 consumers shall constitute the number of eligible consumers.
196.215(3)(ar)
(ar) If the eligible consumers identified in
par. (am) 1. submit a valid petition to the commission under
par. (a), the eligible consumers may withdraw the petition at any time prior to the commission establishing the rates subject to the petition. Upon withdrawal, the commission may not establish these rates.
196.215(3)(cm)
(cm) If the commission receives a petition from at least the number of eligible consumers specified in
par. (am) 2. of the small telecommunications utility requesting that the commission investigate and determine if the small telecommunications utility's rates, tolls or charges are just and reasonable, the commission shall notify the small telecommunications utility that the commission will investigate under
sub. (6). A signature on a petition may not be counted if the date of that signature is more than 60 days before the filing of the petition.
196.215(3)(d)
(d) The commission shall promulgate rules governing the form of petitions under this subsection. The commission may not deem invalid any petition submitted under this subsection which is substantially in compliance with the commission's rules.
196.215(4)
(4) A small telecommunications utility shall be subject to
ss. 196.28 and
196.37 as they apply to any rate, toll or charge and to
ss. 196.02 (2),
196.09 (2) to
(7),
196.11 (2),
196.20 and
196.26 under an order of the commission issued under
sub. (2) (c) 3. until the first day of the 24th month after affirmation of the order by the circuit court of Dane County or after the expiration of the period during which a petition for review or rehearing is authorized under
s. 196.52 or
227.16, whichever is sooner.
196.215(5)(a)(a) Interest coverage ratio is calculated by adding net operating income to income earned on temporary cash investments, deducting applicable federal income taxes and applicable taxes imposed under
ch. 71, and dividing that figure by interest expense.
196.215(5)(b)1.1. Target rate is calculated by adding Moody's average of yields on Baa public utility bonds, expressed in percent, to a percentage set by the commission under
subd. 2.
196.215(5)(b)2.
2. The commission shall promulgate a rule establishing percentages used to calculate target rate under
subd. 1. Percentages set under this subdivision shall be in effect for at least 7 years. The commission shall adopt a rule to change a percentage set under this subdivision at least 2 years before the effective date of the change. The commission may not change a percentage set under this subdivision by more than 20% of the amount of the percentage.
196.215(5)(b)3.
3. The rate of return range for a small telecommunications utility is a range 2% above to 2% below the small telecommunications utility's target rate.
196.215(5)(b)4.
4. Annually no later than January 31, the commission shall issue an order adjusting the Moody's average of yields on Baa public utility bonds used to determine the target rate by taking the most recent 12-month average of Moody's average of yields on Baa public utility bonds. The order shall take effect on February 1 immediately following the order. The commission may issue the order without a hearing.
196.215(5)(c)
(c) An equity-thin utility is building equity if the small telecommunications utility has an average dividend payout of less than 50% of its average net income after taxes or if the commission determines that the small telecommunications utility is increasing the percentage of common stock equity in its total capital structure through other appropriate means.
196.215(5)(d)1.1. The commission shall use the information filed by a small telecommunications utility under
s. 196.07 in the 3 most recent years to calculate average interest coverage ratio, average rate of return on common stock equity, average dividend payout and average net income after taxes.
196.215(5)(d)2.
2. The commission may adjust, for making a determination under this section, any salary, affiliated interest charge or depreciation expense that the commission determines to be unreasonable in calculating the rate of return on common stock equity of a small telecommunications utility. The commission may adjust, for making a determination under this section, a depreciation rate used by a small telecommunications utility only if that depreciation rate falls outside the range established under
s. 196.09 (9) or has not otherwise been approved by the commission within the previous 24 months. If the commission adjusts for depreciation, it shall use the rate established under
s. 196.09 (9) (a) that is closest to the rate used by the small telecommunications utility.
196.215 Cross-reference
Cross Reference: See also ch.
PSC 174, Wis. adm. code.
196.215(6)(a)(a) If consumers request that the commission investigate a small telecommunications utility's rates, tolls or charges under
sub. (3) (cm), the commission shall dismiss the petition if any of the following financial conditions exists:
196.215(6)(a)1.
1. The small telecommunications utility has an average interest coverage ratio of less than 2.
196.215(6)(a)2.
2. The small telecommunications utility has an average rate of return on common stock equity within or below the small telecommunications utility's rate of return range.
196.215(6)(a)3.
3. If an equity-thin utility, the small telecommunications utility is building equity.
196.215(6)(b)
(b) Annually, if the commission does not dismiss a petition under
par. (a), the commission shall proceed under
s. 196.20 (5). Rates, tolls or charges established by the commission under this paragraph shall be in effect for at least 365 days.
196.215(6)(c)
(c) Subsection (5) (a) to
(d), as it relates to financial conditions under that subsection, applies to financial conditions under this subsection.
196.215(6)(d)1.1. If consumers petition the commission under
sub. (3) (a), the small telecommunications utility may implement the proposed rate increase as published in the notice under
s. 196.213, subject to refund. The commission shall proceed under
s. 196.20 (5).
196.215(6)(d)2.
2. If consumers request that the commission investigate a small telecommunications utility's proposed rate increase under
sub. (3) (a), the small telecommunications utility may withdraw the proposed rate increase within 10 days after the commission notifies the small telecommunications utility that the commission will investigate the proposed rate by notifying the commission and each of the consumers to whom the small telecommunications utility has provided notice of the proposed rate increase. A small telecommunications utility that withdraws a proposed rate increase under this subdivision may not propose a rate increase for the same service for 365 days from the date on which the small telecommunications utility mails the notice of withdrawal of the proposed rate increase.
196.215(7)(a)(a) The commission on its own motion may, under
s. 196.20 (5), investigate, determine and order rates, tolls or charges of a small telecommunications utility if at least 3 of the following conditions exist:
196.215(7)(a)1.
1. The small telecommunications utility's basic single-party residential flat rate exceeds the monthly rate under
par. (b) or, if the small telecommunications utility does not use a basic single-party residential flat rate, the small telecommunications utility's rate for that service exceeds a rate established by the commission that is equivalent to the monthly rate under
par. (b).
196.215(7)(a)2.
2. The small telecommunications utility has an average interest coverage ratio of more than 2.
196.215(7)(a)3.
3. The small telecommunications utility has an average rate of return on common stock equity above the rate of return range.
196.215(7)(a)4.
4. If an equity-thin utility, the small telecommunications utility is not building equity.
196.215(7)(b)1.1. Beginning on September 1, 1994, and ending on December 31, 1997, the basic single-party residential flat rate shall be the weighted average basic single-party residential monthly rate for all telecommunications utilities in this state as of December 31, 1993, which includes average local usage charges, touch-tone charges and extended area service charges but does not include extended community calling usage charges. Beginning on January 1, 1998, the basic single-party residential flat rate shall be the weighted average basic single-party residential monthly rate for all telecommunications utilities in this state, which includes average local usage charges, touch-tone charges and extended area service charges but does not include extended community calling usage charges, subject to adjustment under
subd. 2.
196.215(7)(b)2.
2. Beginning in 1998 and thereafter annually, no later than March 31, the commission shall issue an order adjusting the basic single-party residential flat rate using information from the previous calendar year. The order shall take effect on April 1 immediately following the order. The commission may issue the order without a hearing.
196.215(7)(c)
(c) If the commission does not make a determination regarding the financial conditions under
par. (a) 2. to
4. by October 1 or within 180 days after a small telecommunications utility files the information required under
s. 196.07, whichever is later, the commission may not on its own motion order that small telecommunications utility to change its rates, tolls or charges under
par. (a).
196.215(7)(d)
(d) Rates, tolls or charges established by the commission under this subsection shall be in effect for at least 365 days.
196.215(7)(e)
(e) Subsection (5) (a) to
(d), as it relates to financial conditions under that subsection, applies to financial conditions under this subsection.
196.215(8)
(8) If the amount of a small telecommunications utility's federal or state taxes decreases due to a decrease in tax rates, the decrease shall be reflected in rates, tolls or charges unless the small telecommunications utility files adequate information with the commission regarding why a decrease should not be reflected in rates, tolls or charges. The proposed method of implementing the decrease shall be submitted to the commission before the effective date of the tax rate decrease, or as soon as practicable after that effective date. The commission may deny or modify the proposed method if the commission determines that the method is not fair and reasonable. The commission shall review any information that a small telecommunications utility submits to support its position that rates, tolls or charges should not reflect the decrease and determine, based on all information available to the commission, whether a decrease in rates, tolls or charges should be implemented and the extent of any decrease. Any decrease under this subsection shall take effect on the effective date of the tax rate decrease. The commission may issue an order, without a hearing, requiring a small telecommunications utility to refund to consumers excess rates, tolls or charges paid by consumers if a decrease under this section is implemented after the effective date of the tax rate decrease.
196.215(9)
(9) This section does not limit the commission's authority to regulate the capital structure of a small telecommunications utility.
196.216
196.216
Small telecommunications utilities as small businesses. A small telecommunications utility is a small business for the purposes of
s. 227.114.
196.216 History
History: 1985 a. 297;
1987 a. 403 s.
256.
196.217
196.217
Average toll rates. 196.217(1)(1)
Different rates restricted. A telecommunications utility may not charge different rates for residential basic message telecommunications service, business basic message telecommunications service, or single-line wide-area telecommunications service on routes of similar distances within this state, unless authorized by the commission. This subsection does not prohibit volume or term discounts, discounts in promotional offerings, differences in the rates for intralata and interlata services of similar distances, the provision of optional toll calling plans to selected exchanges or customers or the passing through of any state or local taxes in the specific geographic area from which the tax originates.
196.217(2)
(2) Toll services. Notwithstanding
sub. (1), a telecommunications utility may charge prices for toll services under contract that are unique to a particular customer or group of customers if differences in the cost of providing a service or a service element justify a different price for a particular customer or group of customers, or if market conditions require individual pricing.
196.217(3)
(3) Averaged rates. Notwithstanding
subs. (1) and
(2), an intralata toll provider shall offer all optional toll calling plans on a statewide basis at geographically averaged rates until the provider deploys intralata dial-1 presubscription, except that an optional toll call plan need not be offered where deployment of that offering would not be economically or technically feasible.
196.217 History
History: 1993 a. 496.
196.218
196.218
Universal service fund. 196.218(1)(bm)
(bm) "Local exchange service" means basic local exchange service or business access line and usage service.
196.218(1)(c)
(c) "Universal service" includes the availability of a basic set of essential telecommunications services and access to advanced service capabilities of a modern telecommunications infrastructure anywhere in this state.
196.218(1)(d)
(d) "Universal service fund" means the trust fund established under
s. 25.95.
196.218(2)
(2) Fund administration. The commission shall do all of the following:
196.218(2)(c)
(c) Contract for the administration of the universal service fund.
196.218(2)(d)
(d) Obtain an annual independent audit of the universal service fund.
