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 indexes 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)(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, 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(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.
196.196(5)(b)3.
3. A description of the planned deployment of fiber-optic facilities or broad-band capabilities to schools, libraries, technical colleges, hospitals and colleges and universities in this state.
196.196(5)(b)4.
4. Target dates for the deployment of the planned technology and infrastructure improvements.
196.196(5)(b)5.
5. 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, a level of planned investment in an amount of not less than $700,000,000 within the first 5 years of the plan.
196.196(5)(c)1.1. A telecommunications utility shall provide the commission, within one year after its election to become price regulated under
sub. (1) and annually thereafter, a progress report relating to the telecommunications utility's investment in and deployment of infrastructure enhancements. A progress report shall include data relative to the telecommunications utility's operating and financial performance during the relevant period.
196.196(5)(c)2.
2. The commission shall consider the telecommunications utility's progress in meeting its investment plan infrastructure commitments when making penalty or incentive adjustments under
sub. (1) (c).
196.196(5)(d)1.1. Within 120 days after a telecommunications utility elects to become price regulated under
sub. (1), the commission, after notice and opportunity for hearing, may rescind the election if the telecommunications utility fails to file an investment plan within the time specified in
par. (a) or if the investment plan does not comply with
par. (b). If a hearing is held, the time within which the commission may act may be extended an additional 30 days.
196.196(5)(d)2.
2. If the commission orders a recision, the commission shall reinstate the level of regulation in effect at the time that the election was made and the telecommunications utility shall rescind any rate increases put into effect when the telecommunications utility operated as a price-regulated utility.
196.196(5)(e)
(e) Within 120 days after the completion of the first year and of the 2nd year that a telecommunications utility is price-regulated, the commission may reduce rates charged by the price-regulated telecommunications utility for services subject to price regulation by up to 2%. If a hearing is held, the time within which the commission may act may be extended an additional 30 days. The commission may reduce rates under this paragraph if, after notice and opportunity for hearing, the commission finds any of the following:
196.196(5)(e)1.
1. That the telecommunications utility did not file a progress report within the time specified in
par. (c) 1.
196.196(5)(e)2.
2. That the progress report filed by the telecommunications utility does not contain sufficient information to permit the commission to adequately monitor the telecommunications utility's investment and deployment of infrastructure described in its investment plan.
196.196(5)(e)3.
3. That the actual or planned investment described in the progress report does not adequately provide for deployment of advanced infrastructure technologies, fails to exceed routine facility upgrades necessary to maintain service quality or fails to meet goals identified in the investment plan.
196.196(5)(f)1.1. Biennially, the commission shall submit a report to the legislature under
s. 13.172 (2) describing the status of investments in advanced telecommunications infrastructure in this state. The report shall include information on the following uses if there are issues with the availability or deployment of telecommunications infrastructure for those uses:
196.196(5)(f)1.a.
a. Distance learning, including the number of schools and other educational institutions connected to distance learning networks.
196.196(5)(f)1.b.
b. Interconnection of libraries, including the number of libraries with video conferencing and network access capabilities.
196.196(5)(f)1.d.
d. Education, health care and employment opportunities for the disabled and other persons in the home.
196.196(5)(f)2.
2. The commission shall include in the report under
subd. 1. recommendations for improving the progress of investments in advanced telecommunications infrastructure.
196.196 Cross-reference
Cross-reference: See also chs.
PSC 163 and
165, Wis. adm. code.
196.196 Annotation
The definition of "new telecommunications services" in s. 196.19 (1m) (a) applies to sub. (3) (a). Section 196.19 (1m) only addresses the creation of "new telecommunications services." Sub. (3) address their regulation by allowing a company to change rates for existing "new telecommunications services" with only limited tariff and customer notice requirements. By incorporating s. 196.19 (1m) into sub. (3) (a), a complete regulatory scheme is established. Wisconsin Bell, Inc. v. PSC, 2004 WI App 223,
277 Wis. 2d 729,
691 N.W.2d 697,
03-2235.
196.197
196.197
Unbundled network elements. 196.197(1)
(1)
Applicability. This section applies to a petition to determine rates and costs of unbundled network elements or unbundled service elements under federal or state law, but does not apply to a petition for arbitration.
196.197(2)(a)(a) A telecommunications provider may file a petition with the commission in the form and containing the information required by the commission. The commission shall determine that a petition is complete if the petition includes all of the following:
196.197(2)(a)1.
1. A request that the commission determine rates and costs of unbundled network elements or unbundled service elements, an identification of the particular rates and costs that are the subject of the petition, and an identification of the relief sought by the petitioner.
196.197(2)(a)2.
2. One or more cost studies upon which the petitioner relies to support the rates and costs sought by the petitioner.
196.197(2)(a)3.
3. Prefiled written direct testimony upon which the petitioner relies to support the petition and relief sought.
196.197(2)(b)1.1. No later than 30 days after the date on which a petition is filed under
par. (a), the commission shall determine whether a petition is complete under
par. (a) and notify the petitioner about the determination. If the commission fails to make a determination within the 30-day period, the petition is considered to be complete. If the commission determines that a petition filed under
par. (a) is incomplete, the commission shall state the reason for the determination and identify the information that is needed to determine that the petition is complete.
196.197(2)(b)2.
2. A petitioner may supplement a petition that the commission has determined to be incomplete. No later than 15 days after a petitioner files a supplemented petition under this subdivision, the commission shall determine whether the supplemented petition is complete and notify the petitioner about the determination. The commission shall determine that a supplemented petition is complete if it contains the information identified in the determination under
subd. 1. that is needed to determine that the petition is complete. If the commission fails to make a determination under this subdivision within the 15-day period, the petition is considered to be complete. If the commission determines that a petition supplemented under this subdivision is not complete pursuant to this subdivision, the commission shall state the reason for the determination under this subdivision and identify the information that is needed to determine that the petition is complete under this subdivision. There is no limit on the number of times that a petitioner may supplement a petition under this subdivision.
