AB696: Bill Text Engrossed

This bill repeals the foregoing requirements and requires instead that certain telecommunications providers must make available to their customers all essential telecommunications services. The bill defines "essential telecommunications services" as services or functionalities determined by the FCC to be eligible for support by federal universal service support mechanisms. The bill's requirements apply to a telecommunications provider that provides basic local exchange service or that is designated under federal law as a telecommunications carrier eligible to receive support from the federal universal service fund. Also, the bill provides that a telecommunications provider may provide essential telecommunications services itself or through an affiliate or through the use of any available technology or mode.

Basic voice service

The bill requires an ILEC to make basic voice service available to all residential and small business customers within the ILEC's local exchange area. "Basic voice service" is defined, in part, as two-way voice communication service within a local calling area, and "small business customer" is defined as a business with three or fewer telephone lines. In providing basic voice service, an ILEC must also provide a customer the ability to utilize a dial-up Internet access service or an equivalent service. The bill allows an ILEC to provide basic voice service through an affiliate, or through the use of interconnected VOIP service or any available technology or mode.

The bill also allows an ILEC to apply to the PSC for a waiver from the foregoing requirements. The PSC must grant a waiver if the waiver is in the public interest or effective competition exists in the local exchange area. If the PSC fails to meet a 120-day deadline based on the filing of a waiver request, the PSC is considered to have granted the waiver. In addition, the PSC must grant a waiver if the PSC previously found that effective competition existed. However, the PSC may not grant a waiver based on a previous finding until after May 1, 2011. The bill also provides that decisions of the PSC prior to the effective date of the bill that eliminate an ILEC's provider of last resort obligations remain in force and effect. Finally, the bill provides that none of the bill's basic voice service requirements apply after April 30, 2015.

Other changes

The bill repeals a requirement under current law for TUs and other telecommunications providers to provide, with certain exceptions, access services under tariffs under the same rates, terms, and conditions to all telecommunications providers. "Access service" is defined under current law, in part, as the provision of switched or dedicated access to a local exchange network for the purpose of enabling a telecommunications provider to originate or terminate telecommunications service. The bill also repeals a prohibition under current law on a TU, with respect to its regulated services, or a telecommunications provider, with respect to its offering of local exchange services, from giving preference or discriminating in the provision of services, products, or facilities to an affiliate or to the consumer retail department of the TU, telecommunications provider, or affiliate. Under current law, the foregoing prohibition applies to the extent the preference or discrimination is prohibited under federal law or the PSC's rules.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB696-engrossed, s. 2 Section 2. 93.01 (1m) of the statutes is amended to read:

AB696-engrossed,9,3 93.01 (1m) "Business" includes any business, except that of banks, savings banks, credit unions, savings and loan associations, and insurance companies. "Business" includes public utilities and telecommunications carriers to the extent that their activities, beyond registration, notice, and reporting activities, are not regulated by the public service commission and includes public utility and telecommunications carrier methods of competition or trade and advertising practices that are exempt from regulation by the public service commission under s. 196.195, 196.196, 196.202, 196.203, 196.219, or 196.499 or by other action of the commission.

AB696-engrossed, s. 3 Section 3. 133.07 (2) of the statutes is amended to read:

AB696-engrossed,9,12 133.07 (2) This chapter does not prohibit activities of any public utility, as defined in s. 196.01 (5), or telecommunications carrier, as defined in s. 196.01 (8m), which are required by ch. 196 or rules or orders under ch. 196, activities necessary to comply with that chapter or those rules or orders or activities that are actively supervised by the public service commission. This subsection does not apply to activities of a public utility or telecommunications carrier that are exempt from public service commission regulation under s. 196.195, 196.196, 196.202, 196.203, 196.219 or 196.499 or by other action by the commission.

AB696-engrossed, s. 4 Section 4. 196.01 (1d) (g) of the statutes is created to read:

AB696-engrossed,9,15 196.01 (1d) (g) A telecommunications utility that provides notice to the commission under s. 196.50 (2) (j) 1. a.

AB696-engrossed, s. 5 Section 5. 196.01 (3a) of the statutes is created to read:

AB696-engrossed,9,18 196.01 (3a) "Interconnected voice over Internet protocol service" has the meaning given in 47 CFR 9.3.

AB696-engrossed, s. 5m Section 5m. 196.01 (12w) of the statutes is created to read:

AB696-engrossed,9,21 196.01 (12w) (a) "Wholesale telecommunications service" means, except as provided in par. (b), a service that satisfies all of the following:

AB696-engrossed,9,24 1. The service is provided by a telecommunications provider to another telecommunications provider other than an affiliated interest, as defined in s. 196.52 (1).

AB696-engrossed,9,25 2. The service is subject to regulation by the commission under this chapter.

AB696-engrossed,10,2 3. The service is subsequently used in the provision of a telecommunications service to retail end user customers.

AB696-engrossed,10,4 (b) "Wholesale telecommunications service" does not include switched access service.

AB696-engrossed, s. 5r Section 5r. 196.016 of the statutes is created to read:

AB696-engrossed,10,11 196.016 Relationship to certain federal telecommunications law. Except as provided in s. 196.50 (2) (j) 2. and 3., nothing in this chapter is intended to either reduce or expand the scope and application of the federal Telecommunications Act of 1996, P.L. 104-104, including the jurisdiction and authority granted to the commission thereunder and the commission may take any action that the commission is authorized to take under that federal act.

AB696-engrossed, s. 6 Section 6. 196.02 (2) of the statutes is amended to read:

AB696-engrossed,10,21 196.02 (2) Definition; classification. In this subsection, "public utility" does not include a telecommunications cooperative, an unincorporated telecommunications cooperative association, or a small telecommunications utility except as provided under s. 196.205 or 196.215 (2) and does not include an alternative telecommunications utility. The commission shall provide for a comprehensive classification of service for each public utility. The classification may take into account the quantity used, the time when used, the purpose for which used, and any other reasonable consideration. Each public utility shall conform its schedules of rates, tolls and charges to such classification.

AB696-engrossed, s. 7 Section 7. 196.09 (1) of the statutes is amended to read:

AB696-engrossed,11,8 196.09 (1) In this section, "public utility" does not include a telecommunications cooperative or an unincorporated telecommunications cooperative association except as provided under s. 196.205. In subs. (2) to (7), "public utility" does not include a telecommunications utility. Subsection (9) only applies to a telecommunications utility. Every public utility shall file with the commission, within such time as may be required by the commission, its estimate of the annual rate of depreciation required for each of its classes of fixed capital used for public utility purposes, and of the composite annual rate of depreciation required for such fixed capital as an aggregate, which shall constitute the public utility's estimates of the amount which should be returned to it out of its rates for service, to meet the depreciation of its property.

AB696-engrossed, s. 8 Section 8. 196.09 (9) of the statutes is repealed.

AB696-engrossed, s. 9 Section 9. 196.13 (2) of the statutes is amended to read:

AB696-engrossed,11,15 196.13 (2) The commission shall publish in its reports the value of all the property actually used and useful for the convenience of the public of a public utility, other than a telecommunications utility, if the commission has held a hearing on the public utility's rates, charges, service or regulations or if the commission has otherwise determined the value of the public utility's property.

AB696-engrossed, s. 10 Section 10. 196.19 (1m) of the statutes is repealed.

AB696-engrossed, s. 11 Section 11. 196.19 (5) of the statutes is repealed.

AB696-engrossed, s. 12 Section 12. 196.191 of the statutes is created to read:

AB696-engrossed,11,22 196.191 Telecommunications utility and alternative telecommunications utility tariffs. (1) Notwithstanding anything in this chapter to the contrary, any telecommunications utility, including an alternative telecommunications utility, may do any of the following:

AB696-engrossed,12,7 (a) Retain on file with the commission tariffs already on file with the commission as of the effective date of this paragraph .... [LRB inserts date], showing the rates, tolls, and charges which the telecommunications utility, including an alternative telecommunications utility, has established as of the effective date of this paragraph .... [LRB inserts date], for some or all of the services performed by the telecommunications utility, including an alternative telecommunications utility, within the state or for any service in connection therewith or performed by any telecommunications utility, including an alternative telecommunications utility, controlled or operated by the telecommunications utility, including an alternative telecommunications utility.

AB696-engrossed,12,9 (b) Withdraw or change the rates, terms, or conditions of a tariff on file with the commission.

AB696-engrossed,12,19 (c) File with the commission new tariffs showing the rates, tolls, and charges which the telecommunications utility, including an alternative telecommunications utility, has established, as provided in the tariff filings, for some or all of the services performed by the telecommunications utility, including an alternative telecommunications utility, within the state or for any service in connection therewith or performed by any telecommunications utility, including an alternative telecommunications utility, controlled or operated by the telecommunications utility, including an alternative telecommunications utility. If a telecommunications utility, including an alternative telecommunications utility, files a new tariff under this paragraph, all of the following apply:

AB696-engrossed,12,25 1. The new tariff shall become effective on the date specified in the tariff, unless the commission suspends the operation of the new tariff upon serving a written notice of the suspension on the telecommunications utility, including an alternative telecommunications utility, within 10 days after the date of filing. The notice shall include a statement of the reason under subd. 2. upon which the commission believes the tariff may be modified.

AB696-engrossed,13,2 2. The commission may modify the new tariff after an opportunity for a hearing, only to the extent permitted by ss. 196.203 and 196.50 (2) (i) and (j).

AB696-engrossed,13,8 3. If the commission does not conduct a hearing under subd. 2., the commission shall issue its final order within 60 days after issuing the notice of suspension under subd. 1. If the commission conducts a hearing, the commission shall issue its final order within 120 days after issuing the notice of suspension under subd. 1. If a final order is not issued within the time limits specified in this subdivision, the new tariff becomes effective as filed.

AB696-engrossed,13,10 (2) Nothing in this section shall give the commission jurisdiction over the rates or terms and conditions of any service that is not subject to a tariff under sub. (1).

AB696-engrossed,13,14 (3) Every telecommunications utility, including an alternative telecommunications utility, that files a tariff with the commission under this section shall include all terms and conditions that apply to the services specified in the tariff and the rates charged or to be charged.

AB696-engrossed,13,16 (4) A telecommunications utility, including an alternative telecommunications utility, may withdraw a tariff for any service by providing notice to the commission.

AB696-engrossed,13,18 (5) (a) Except as provided in par. (b), a proposed change in a tariff shall be effective at the time specified in the tariff as filed with the commission.

AB696-engrossed,14,2 (b) No change in a tariff which constitutes an increase in switched access service rates may be made unless the change is consistent with the public interest factors set forth in s. 196.03 (6) and the commission by order, after investigation and opportunity for a hearing, approves the change, except that an increase in switched access service rates to mirror interstate switched access service rates shall go into effect on the 10th day after the change in the tariff is filed, unless the commission, before that day, suspends the rate increase and initiates an investigation under this paragraph.

AB696-engrossed,14,6 (6) Nothing in this chapter prohibits a tariff for a service which permits a telecommunications utility, including an alternative telecommunications utility, to enter into an individual contract with an individual customer for that tariffed service that includes rates, terms, and conditions that are different from those in the tariff.

AB696-engrossed,14,11 (7) Except as provided in sub. (6), no telecommunications utility, including an alternative telecommunications utility, may charge, demand, collect, or receive more or less compensation for any service for which a tariff is filed under this section than is specified in the tariff, as may at the time be in force, or demand, collect, or receive any rate, toll, or charge for such service not specified in the tariff.

AB696-engrossed,14,13 (8) A copy of the tariffs filed under this section shall be made available to consumers in a form and place readily accessible to the public.

AB696-engrossed, s. 13m Section 13m. 196.194 (1) of the statutes is repealed.

AB696-engrossed, s. 13q Section 13q. 196.194 (2) (title) of the statutes is repealed.

AB696-engrossed, s. 13s Section 13s. 196.194 (2) of the statutes is renumbered 196.194 and amended to read:

AB696-engrossed,15,15 196.194 Public Gas utility individual contracts. Nothing in ss. 196.03, 196.19, 196.20, 196.21, 196.22, 196.37, 196.60, 196.604 and 196.625 prohibits the commission from approving the filing of a tariff which permits a gas utility to enter into an individual contract with an individual customer if the term of the contract is no more than 5 years, or a longer period approved by the commission, and if the commission determines that substitute gas services are available to customers or potential customers of the gas utility and the absence of such a tariff will cause the gas utility to be disadvantaged in competing for business. A tariff filed under this subsection section shall include the condition that any such contract shall be compensatory. The tariff shall include any other condition and procedure required by the commission in the public interest. Within 20 days after a contract authorized under this subsection section or an amendment to such a contract has been executed, the gas utility shall submit the contract to the commission. The commission shall give notice to any person, upon request, that a contract authorized under this subsection section has been received by the commission. The notice shall identify the gas utility that has entered into the contract. Within 6 months after receiving substantial evidence that a contract may be noncompensatory, or upon its own motion, the commission shall investigate and determine whether the contract is compensatory. If the commission determines that the contract is noncompensatory, the commission may make appropriate adjustments in the rates or tariffs of the gas utility that has entered into the contract, in addition to other remedies under this chapter. The dollar amount of the adjustment may not be less than the amount by which the contract was found to be noncompensatory.

AB696-engrossed, s. 14 Section 14. 196.195 (1) of the statutes is amended to read:

AB696-engrossed,15,19 196.195 (1) Regulation imposed. Except as provided in this section and ss. 196.202, 196.203, 196.215 and, 196.219, and 196.50 (2) (i), a telecommunications utility is subject to every applicable provision of this chapter and ch. 201.

AB696-engrossed, s. 15 Section 15. 196.195 (5) of the statutes is amended to read:

AB696-engrossed,16,5 196.195 (5) Commission action. If after the proceedings under subs. (2), (3) and (4) the commission has determined that effective competition exists in the market for the telecommunications service which justifies a lesser degree of regulation and that lesser regulation in that market will serve the public interest, the commission may, by order, suspend any of the following provisions of law ch. 201, except as provided under subs. (7) and (8): ch. 201 and s. 196.02 (2); s. 196.05; s. 196.06; s. 196.07; s. 196.09; s. 196.10; s. 196.12; s. 196.13 (2); s. 196.19; tariffing requirements under s. 196.194; s. 196.196 (1) or (5); s. 196.20; s. 196.21; s. 196.22; s. 196.26; s. 196.28; s. 196.37; s. 196.49; s. 196.52; s. 196.58; s. 196.60; s. 196.604; s. 196.77; s. 196.78; s. 196.79; and s. 196.805.

AB696-engrossed, s. 16 Section 16. 196.195 (12) (a) of the statutes is amended to read:

AB696-engrossed,16,12 196.195 (12) (a) To provide incentives for telecommunications utilities to achieve any of the goals listed in par. (b) 1. a., the commission may suspend any of the provisions listed in sub. (5) except ss. 196.19, 196.20 (1m), 196.22, 196.26, 196.37, 196.60 and 196.604 of ch. 201 or may approve a regulatory method alternative to traditional rate-of-return regulation that does not require suspension of any provisions listed in sub. (5).

AB696-engrossed, s. 17 Section 17. 196.195 (12) (b) 3. of the statutes is amended to read:

AB696-engrossed,16,21 196.195 (12) (b) 3. The commission shall regulate telecommunications utilities with the goal of developing alternative forms of regulation. The commission shall, by order, develop and approve an incentive regulatory plan for each telecommunications utility to implement this subdivision. The commission may not increase regulation of a small telecommunications utility in implementing this subdivision. For telecommunications utilities with more than 150,000 access lines in use in this state, s. 196.196 (2) applies to access service rates in any regulatory plan approved under this subdivision.

AB696-engrossed, s. 18 Section 18. 196.196 of the statutes is repealed.

AB696-engrossed, s. 19 Section 19. 196.198 (2) (a) of the statutes is renumbered 196.198 (2) and amended to read:

AB696-engrossed,17,6 196.198 (2) Except as provided in sub. (3), a telecommunications utility that has more than 150,000 access lines in use in this state or a telecommunications provider that has more than 150,000 access lines in use in this state may not charge a residential customer for basic local exchange service based on the duration of a call or on the time of day that a call is made. This paragraph subsection does not apply to an extended community telephone service.

AB696-engrossed, s. 20 Section 20. 196.198 (2) (b) of the statutes is repealed.

AB696-engrossed, s. 21 Section 21. 196.198 (3) (intro.) of the statutes is amended to read:

AB696-engrossed,17,12 196.198 (3) (intro.) The commission may suspend the application of sub. (2) (a) in a particular geographical area for a telecommunications utility or a telecommunications provider if, after a contested case hearing, the commission determines that all of the following apply:

AB696-engrossed, s. 22 Section 22. 196.198 (3) (a) of the statutes is amended to read:

AB696-engrossed,17,15 196.198 (3) (a) Failure to suspend the application of sub. (2) (a) makes competition in that geographical area impractical.

AB696-engrossed, s. 23 Section 23. 196.198 (3) (b) (intro.) of the statutes is amended to read:

AB696-engrossed,17,18 196.198 (3) (b) (intro.) Suspending the application of sub. (2) (a) is beneficial to all of the following groups:

AB696-engrossed, s. 24 Section 24. 196.20 (1) of the statutes is amended to read:

AB696-engrossed,18,3 196.20 (1) The rate schedules of any public utility shall include all rules applicable to the rendition or discontinuance of the service to which the rates specified in the schedules are applicable. No change may be made by any public utility in its schedules except by filing the change as proposed with the commission. Except for a telecommunications utility, no No change in any public utility rule which purports to curtail the obligation or undertaking of service of the public utility shall be effective without the written approval of the commission after hearing, except that the commission, by emergency order, may make the rule, as filed, effective from the date of the order, pending final approval of the rule after hearing.

AB696-engrossed, s. 25 Section 25. 196.20 (1m) of the statutes is repealed.

AB696-engrossed, s. 26 Section 26. 196.20 (2) (a) (intro.) of the statutes is amended to read:

AB696-engrossed,18,9 196.20 (2) (a) (intro.) Except for a telecommunications utility, a A proposed change which constitutes a decrease in rates shall be effective at the time specified in the change as filed but not earlier than 10 days after the date of filing the change with the commission, unless any of the following occurs:

AB696-engrossed, s. 27 Section 27. 196.20 (2) (am) of the statutes is repealed.

AB696-engrossed, s. 28 Section 28. 196.20 (2m) of the statutes is amended to read:

AB696-engrossed,18,18 196.20 (2m) Except as provided under sub. (5) and ss. s. 196.193, 196.195 (12) and 196.196, no change in schedules which constitutes an increase in rates to consumers may be made except by order of the commission, after an investigation and opportunity for hearing. The commission may waive a hearing under this subsection for a proposed change in a telecommunications utility schedule. By rule or order, the commission shall specify the notice and procedural requirements applicable to a telecommunications utility proposal for which a hearing is waived.

AB696-engrossed, s. 29 Section 29. 196.20 (2r) of the statutes is repealed.

AB696-engrossed, s. 30 Section 30. 196.20 (3) of the statutes is repealed.

AB696-engrossed, s. 31 Section 31. 196.20 (5) of the statutes is repealed.

AB696-engrossed, s. 32 Section 32. 196.20 (6) of the statutes is repealed.

AB696-engrossed, s. 33 Section 33. 196.203 (1) of the statutes, as affected by 2009 Wisconsin Act 28, is renumbered 196.203 (1g) and amended to read:

AB696-engrossed,19,6 196.203 (1g) Alternative telecommunications utilities are exempt from all provisions of ch. 201 and this chapter, except as provided in this section, and except that an alternative telecommunications utility is subject to s. ss. 196.025 (6) and 196.206 and may elect to subject itself to s. 196.191, and except that an alternative telecommunications utility that is a local government telecommunications utility, as defined in s. 196.204 (5) (ag) 1., is subject to s. 196.204 (5).

AB696-engrossed, s. 34 Section 34. 196.203 (1d) of the statutes is created to read:

AB696-engrossed,19,9 196.203 (1d) In this section, "local government telecommunications utility" has the meaning given in s. 196.204 (1m) (a).

AB696-engrossed, s. 35 Section 35. 196.203 (2) of the statutes is renumbered 196.203 (2) (a) and amended to read:

AB696-engrossed,19,16 196.203 (2) (a) No person may commence providing service as an alternative telecommunications utility unless the person petitions for and the commission issues a determination certification that the person is an alternative telecommunications utility or unless the person is a telecommunications utility for which the commission issues an order under s. 196.50 (2) (j) 1. a.