196.195(4)(a)(a) Except as provided in
par. (b), the commission shall issue written findings of fact on each of the factors specified in
sub. (2) (a) 1. to
7. and on any other factors considered by the commission in making the following determinations:
196.195(4)(a)1.
1. Whether effective competition exists in the market for the telecommunications service that justifies lesser regulation.
196.195(4)(a)2.
2. The level of regulation to be imposed upon each telecommunications utility providing the service in that market.
196.195(4)(a)3.
3. The different regulatory requirements, if any, determined for each telecommunications utility providing the service in the market.
196.195(4)(b)
(b) If the commission conducts more than one hearing under
sub. (2) on the same telecommunications service or the same market, the commission may, if appropriate and if no new finding of fact is required, rely on a finding of fact made under
par. (a) in a prior hearing.
196.195(7)
(7) Conditions on deregulation. If the commission suspends the application of any provision of law to a telecommunications utility under
sub. (5), it may require the telecommunications utility to comply with any condition reasonably necessary to protect the public interest because of the suspended application.
196.195(8)
(8) Records for commission review. The commission may suspend the application of a provision of law relating to an accounting or reporting requirement under
sub. (5) only if, with consideration given to any conditions imposed under
sub. (7), the commission determines that it will have enough information to determine whether the suspension of the application of any provision of law under
sub. (5) is justified at any time after the suspension is ordered.
196.195(10)
(10) Revocation of deregulation. If necessary to protect the public interest, the commission, at any time by order, may revoke its order to suspend the applicability of any provision of law suspended under
sub. (5).
196.195(12)
(12) Incentive regulation for telecommunications utilities. 196.195(12)(a)(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 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).
196.195(12)(b)1.1. Except as provided in
subd. 2., after opportunity for hearing, the commission shall determine whether it is in the public interest to suspend any of the provisions identified in
par. (a) or to approve an alternative regulatory method. In making this determination, the commission shall identify all of the following:
196.195(12)(b)1.a.
a. The goals to be achieved, which may include promoting competition, infrastructure deployment, economic development, consumer choice, productivity, efficiency, quality of life, societal goals or universal service.
196.195(12)(b)1.b.
b. The authorized incentive and how the incentive is expected to help achieve the identified goals.
196.195(12)(b)1.c.
c. The measurement to be used to evaluate successful attainment of the identified goals.
196.195(12)(b)1.d.
d. The extent to which a telecommunications utility has contributed to the Wisconsin advanced telecommunications foundation established under
s. 14.28.
196.195(12)(b)2.
2. If the commission suspends the application of any provision identified in
par. (a) or approves an alternative regulatory method for any telecommunications utility, the commission may waive the hearing opportunity required under
subd. 1., with notice to all known interested parties, for any similarly situated telecommunications utility, if the waiver is in the public interest.
196.195(12)(b)3.
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.
196.195(12)(d)1.1. If after 10 days' written notice and opportunity for interested persons to comment the commission finds that a telecommunications utility has adequately demonstrated that a telecommunications service which it offers and which is subject to the jurisdiction of the commission is subject to competition that may justify a lesser degree of regulation under
sub. (5) and that it may be materially disadvantaged in such competition without commission authorization under this paragraph, the commission, prior to a determination under
sub. (5), may authorize the telecommunications utility to provide the telecommunications service under a tariff which specifies a range of rates which may be charged for the service or may authorize the telecommunications utility to file a price list for the service which is effective upon at least 10 days' written notice to affected consumers.
196.195(12)(d)2.
2. If the commission authorizes a telecommunications utility to provide a service under
subd. 1., the telecommunications utility may not provide the service at a price which does not recover total service long-run incremental cost.
196.195(12)(d)3.
3. The commission may investigate the price of any service authorized under
subd. 1. to assure that the price complies with
subd. 2. and may suspend any price which does not comply with
subd. 2.
196.195(12)(d)4.
4. A request for authorization under
subd. 1. constitutes a request for a hearing on partial deregulation under
sub. (2). An order granting such authorization expires on the first day of the 9th month following its issuance or upon the date of the commission order granting or denying suspension of any provision of law under
sub. (5), whichever is earlier, unless extended by the commission for good cause pending issuance of a final order.
196.195(12)(e)
(e) If under this subsection the commission authorizes a telecommunications utility to provide a telecommunications service under a tariff that specifies a range of rates which may be charged for the service or authorizes the telecommunications utility to file a price list for the service which is effective after a minimum period of notice to affected customers, the telecommunications utility may not provide the service at a price which does not recover total service long-run incremental cost.
196.196
196.196
Telecommunications utility price regulation. 196.196(1)(1)
Price regulation of basic local exchange services. 196.196(1)(a)1.1. This subsection governs rates for basic local exchange service, standard business access lines and usage by small businesses with no more than 3 access lines and basic message telecommunications service and any changes in those rates for telecommunications utilities electing to be price regulated. A telecommunications utility shall elect to become a price-regulated utility by filing a written election with the commission.
196.196(1)(a)2.
2. The commission may include, following notice and opportunity for hearing, as part of the services subject to price regulation under this subsection all of the following:
196.196(1)(a)2.a.
a. Those services and technological features found by the commission to be a necessary component of universal service under
s. 196.218.
196.196(1)(a)2.b.
b. Advanced telecommunications services, if the commission finds that the advanced telecommunications service is essential to the public interest; that the advanced telecommunications service, or reasonably equivalent service, is not available at reasonable prices and terms and conditions from alternative providers; and that price regulation of the advanced telecommunications service is essential to the public interest.
196.196(1)(b)
(b) If a telecommunications utility elects to become a price-regulated telecommunications utility within 30 days after September 1, 1994, the telecommunications utility shall set the initial rates to be charged under this section for services under
par. (a) and file the rates with the commission. The rates shall be effective at the time specified in the filing with the commission. The rates shall not be greater than the rates allowed for the telecommunications utility for those services as of December 31, 1993, unless the telecommunications utility has more than 500,000 access lines in use in this state, in which case the telecommunications utility shall reduce its rate for residential access line service and for single line business access line service by at least 10%. If a telecommunications utility elects to become a price-regulated telecommunications utility more than 30 days after September 1, 1994, the telecommunications utility shall set the initial rates and file those rates with the commission on at least 45 days' notice. The rates shall be no higher than those in effect on the December 31 immediately preceding the election unless the telecommunications utility has more than 500,000 access lines in use in this state, in which case the telecommunications utility shall reduce its rate for residential access line service and for single line business access line service by at least 10%.
196.196(1)(c)1.1. A price-regulated telecommunications utility may not increase its rates for services under
par. (a), except for basic message telecommunications service, for a period of 3 years after electing to become price regulated. Following the initial 3-year period for services under
par. (a), except for basic message telecommunications service, and at any time for basic message telecommunications service, a price-regulated telecommunications utility may increase its rates for those services to the extent that the change in the revenue weighted price indices does not exceed 2 percentage points less than the most recent annual change in the gross domestic product price index, as published by the federal government. The commission shall, by rule, create a penalty mechanism for up to a one percentage point increase in the percentage offset for inadequate service provided by or insufficient investment made by a price-regulated telecommunications utility. The commission shall, by rule, create an incentive mechanism for up to a one percentage point decrease in the percentage offset to encourage infrastructure investment by the price-regulated telecommunications utility. For a telecommunications utility with more than 500,000 access lines in use in this state at the time of electing to become price regulated, the percentage offset to the change in the gross domestic product price index shall be 3 percentage points and the penalty mechanism and incentive mechanism shall be up to 2 percentage points. No earlier than 6 years after September 1, 1994, and no more frequently than every 3 years thereafter, the commission may, following notice and an opportunity for hearing, by rule increase or decrease the gross domestic product price index percentage offset by a maximum of one percentage point in any 12-month period to reflect any statewide changes in the productivity experience of the telecommunications industry. The commission shall promulgate rules to identify the factors that the commission may consider in determining changes in the productivity experience of the telecommunications industry. If application of the price regulation index formula achieves a negative result, prices shall be reduced so that the cumulative price change for services under
par. (a), including prior price reductions in these services, achieves the negative result.
196.196(1)(c)2.
2. Annual permitted price increases under this paragraph may be deferred and accumulated for a maximum of 3 years into a single increase. The first permitted increase after the telecommunications utility elects to become price regulated shall be limited by the most recent annual change in the gross domestic product price index, less 2 percentage points, plus or minus any penalty or incentive adjustment. For a telecommunications utility with more than 500,000 access lines in use in this state, the first permitted increase shall be limited by the most recent annual change in the gross domestic product price index, less 3 percentage points, plus or minus any penalty or incentive adjustment. The increase in any rate element may not at any time exceed 10% or the increase in the gross domestic product price index, whichever is greater.
196.196(1)(c)3.
3. A rate change under this paragraph shall take effect 45 days after the date on which notice is received by the commission. A telecommunications utility shall notify customers of a rate change under this paragraph by a bill insert that is included in a bill no later than the first billing provided after notice of a rate change is submitted to the commission. A telecommunications utility may file only one rate increase under this paragraph during any 12-month period.
196.196(1)(cm)
(cm) The commission shall consider the extent to which a telecommunications utility has contributed to the Wisconsin advanced telecommunications foundation established under
s. 14.28 when making penalty or incentive adjustments under
par. (c).
196.196(1)(d)
(d) A price-regulated telecommunications utility may reduce the price for any service under
par. (a) on one day's notice filed with the commission. A price-regulated telecommunications utility may alter the rate structure for any service under
par. (a) on 10 days' prior notice to the commission, provided that the preexisting rate structure continues to be offered to customers.
196.196(1)(e)1.1. Notwithstanding
pars. (c) and
(d) but not earlier than 3 years after electing to become a price-regulated telecommunications utility, a price-regulated telecommunications utility may alter its rate structure or increase rates for services under
par. (a) on 120 days' prior notice to the commission. The notice to the commission under this subdivision shall be accompanied with documentary support that the change is just and reasonable. The commission shall establish by rule documentation requirements under this subdivision.
196.196(1)(e)2.
2. Upon complaint filed by an affected party or on the commission's own motion, the commission may initiate an investigation of a proposed rate change within 60 days after receiving the notice. Within 120 days after initiating an investigation and following a hearing, the commission shall issue an order approving, modifying or rejecting the rate change. The commission may suspend a proposed rate structure alteration or rate increase pending the issuance of the order.
196.196(1)(e)3.
3. The commission's review of a proposed rate change may consider only the following:
196.196(1)(e)3.a.
a. Cost allocations of costs outside of the control of the telecommunications utility to services under
par. (a).
196.196(1)(e)3.d.
d. Changes in the costs of providing the service that are outside of the control of the telecommunications utility.
196.196(1)(f)
(f) A telecommunications utility shall give notice of any proposed rate change under
par. (c),
(d) or
(e) to its customers. Notice shall be published in a newspaper of general circulation in the service area to be affected within a reasonable time period after the notice of the rate change is given to the commission, and shall be included in or on the bill of each affected customer in the billing first following notice to the commission. The notice to customers shall contain all of the following:
196.196(1)(f)1.
1. An estimate of the dollar amount of the monthly change for the typical residential customer that would result if the rate change becomes effective.
196.196(1)(f)2.
2. A statement that a customer who desires to comment on the rate change may call or write the commission or who desires the complete details of the rate change may call or write the telecommunications utility.
196.196(1)(f)3.
3. A statement that describes the nature and extent of the commission's review of the proposed rate change.
196.196(1)(g)1.1. Five years after a telecommunications utility elects to become a price-regulated telecommunications utility or, if
subd. 4. applies, within the dates specified in that subdivision, the commission shall hold a hearing, and at any time thereafter, upon complaint or on the commission's own motion, the commission may hold a hearing, to determine whether it is in the public interest to suspend one or more of the provisions of this subsection as it applies to a price-regulated telecommunications utility or to approve an alternative regulatory method for that utility. In making a determination under this subdivision, the commission shall identify all of the following:
196.196(1)(g)1.a.
a. The goal to be achieved, which may include promoting competition, infrastructure deployment, economic development, consumer choice, productivity, efficiency, quality of life, societal goals or universal service.
196.196(1)(g)1.b.
b. The suspension or method to be approved and how the decision is expected to help achieve the identified goals.
196.196(1)(g)1m.
1m. In making a determination under
subd. 1., the commission shall consider if the telecommunications utility is adequately serving geographical areas with diverse income or racial populations.
196.196(1)(g)2.
2. If the commission suspends the application of any provision of this subsection or approves an alternative regulatory method under
subd. 1., the commission, upon its own motion or a petition from an interested person, may waive the hearing required under
subd. 1., with notice to all known interested parties, for any similarly situated telecommunications utility, if waiver is in the public interest.
196.196(1)(g)4.
4. If a telecommunications utility that has more than 150,000 access lines in use in this state elects to become a price-regulated telecommunications utility before December 31, 1997, the commission shall commence the hearing required under
subd. 1. no earlier than February 1, 1999, and no later than February 15, 1999, and shall complete the proceeding that includes that hearing no later than June 30, 1999.
196.196(2)
(2) Price regulation of intrastate access services. 196.196(2)(a)(a) Except as required to enforce this subsection, the commission may not review or set the rates for intrastate access services offered by price-regulated telecommunications utilities. This paragraph does not waive the tariff requirements of
s. 196.219 (2m).
196.196(2)(b)1.1. Intrastate access service rates of a price-regulated telecommunications utility with more than 150,000 access lines in use in this state may not exceed the utility's interstate rates for similar access services. The telecommunications utility shall eliminate 50% of its intrastate carrier common line charge within one year after its election to become price regulated and shall eliminate the balance of its intrastate carrier common line charge within one year thereafter.
196.196(2)(b)2.
2. A price-regulated telecommunications utility with more than 150,000 access lines in use in this state shall eliminate intrastate carrier common line charges upon full authorization to provide interlata service.
196.196(2)(b)3.
3. After eliminating intrastate carrier common line charges, the telecommunications utility may not reinstate an intrastate carrier common line charge or a substitute charge.
196.196(2)(c)
(c) A price-regulated telecommunications utility with 150,000 or less access lines in use in this state shall adjust its intrastate access service rates in equal annual increments so that, within 2 years after its election to become price regulated, its intrastate access service rates and rate elements do not exceed the lower of its intrastate access service rates and rate elements in effect as of the date of its election to become price regulated or its interstate rates for similar access services, including carrier common line. After the 2-year period, intrastate access service rates may not exceed the utility's interstate access service rates. Beginning on the 3rd anniversary of the utility's election to become price regulated, the utility's intrastate carrier common line charge may not exceed 83.33% of its existing interstate carrier common line charge. Beginning on the 4th anniversary of the utility's election, the utility's intrastate carrier common line charge may not exceed 66.67% of its existing interstate carrier common line charge. Beginning on the 5th anniversary of the utility's election, the utility's intrastate carrier common line charge may not exceed 50% of its existing interstate carrier common line charge.
196.196(2)(d)
(d) This subsection does not limit any surcharges to access service rates, including to the carrier common line charge or to substitute rate elements, as a means of collecting access customers' share of charges that may be ordered by the commission under
s. 196.218.
196.196(2)(e)
(e) A telecommunications utility shall give a customer written notice of any rate increase under this subsection before the customer is billed at the increased rate.
196.196(3)
(3) Price regulation of other services. 196.196(3)(a)(a) Except to the extent expressly permitted by this section and
ss. 196.19 (1m),
196.194,
196.195,
196.20 (1m),
196.204,
196.209 and
196.219, the commission may not have jurisdiction over the prices or terms and conditions for the offering of any other services, including new telecommunications services, offered by a price-regulated telecommunications utility.
196.196(3)(b)
(b) A price-regulated telecommunications utility shall file tariffs with the commission for the provision of any telecommunications service, whether or not the service is otherwise subject to this chapter. Except as provided in
s. 196.20 (2) (am), changes in the terms and conditions of tariffed services under
par. (a) shall be effective one day after filing with the commission, unless the tariff specifies a later effective date.
196.196(3)(c)
(c) A telecommunications utility shall give a customer written notice of any rate increase under this subsection before the customer is billed at the increased rate.
196.196(4)
(4) Price regulation for small telecommunications utilities. 196.196(4)(a)(a) A telecommunications utility with 150,000 or less access lines in use in this state may elect to become a price-regulated telecommunications utility and may elect to have its earnings considered in any review under
sub. (1) (e).
196.196(4)(b)
(b) A telecommunications utility with 150,000 or less access lines in use in this state may file a company-specific price regulation and investment plan subject to commission approval.
196.196(4)(c)
(c) A telecommunications utility with 150,000 or less access lines in use in this state that has elected price regulation may rescind election of price regulation and return to rate-of-return regulation, subject to the approval of the commission, if rescission is in the public interest considering the factors under
s. 196.03 (6).
196.196(4)(d)
(d) All of the following apply to a telecommunications utility that elects to return to rate-of-return regulation under
par. (c):
196.196(4)(d)1.
1. It may not elect to be subject to price regulation for a period of 3 years after returning to rate-of-return regulation.
196.196(4)(d)2.
2. It may be subject to a full rate case proceeding before the commission.
196.196(5)(a)(a) Within 60 days after a telecommunications utility elects to become price regulated under
sub. (1), the telecommunications utility shall file with the commission a plan outlining the telecommunications utility's commitment to invest in telecommunications infrastructure improvements in this state over a period of not less than 6 years.
196.196(5)(b)
(b) An investment plan filed with the commission shall include all of the following:
196.196(5)(b)1.
1. A description of the level of planned investment in technological or infrastructure enhancement.
196.196(5)(b)2.
2. A description of the extent to which planned investment will make new telecommunications technology available to customers or expand the availability of current technology.
