Bill Text: CA SB603 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Small independent telephone corporations: rates.

Spectrum: Moderate Partisan Bill (Republican 9-2)

Status: (Engrossed - Dead) 2019-08-30 - August 30 hearing: Held in committee and under submission. [SB603 Detail]

Download: California-2019-SB603-Amended.html

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Amended  IN  Senate  April 30, 2019

Amended  IN  Senate  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 603

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Introduced by Senator Borgeas
(Coauthors: Senators Caballero, Grove, Hueso, Moorlach, and Nielsen)
(Coauthors: Assembly Members Fong, Gallagher, Mathis, Obernolte, and Patterson)

February 22, 2019

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An act to add Section 275.7 to the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL'S DIGEST

SB 603, as amended, Borgeas. Small independent telephone corporations: rates.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A program, until January 1, 2023, to provide universal service rate support to small independent telephone corporations, as defined, in furtherance of the state’s universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.

This bill would authorize a small independent telephone corporation to initiate a rate case through either an advice letter or application. If a rate case is initiated by an advice letter, the bill would require that the case be processed according to the commission’s rules governing advice letters, be completed within 10 months of its submission, and that any changes to the telephone corporation’s revenue requirements or rate design resulting from the commission’s disposition of the advice letter submission take effect be implemented within 12 months of its the advice letter’s submission. If a rate case is initiated by application, the bill would require that the case be processed according to the commission’s rules governing formal proceedings, be completed within 12 months of its submission, and that any changes to the telephone corporation’s revenue requirements or rate design resulting from the commission’s disposition of the application submission take effect be implemented within 14 months of its the application’s submission. The bill would require the commission to authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case and to determine the reasonableness of rate case expenses without regard to the telephone corporation’s other expenses.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 275.7 is added to the Public Utilities Code, to read:

275.7.

 (a) For purposes of this section, “small independent telephone corporations” are rural incumbent local exchange carriers subject to commission regulation.

(b) A small independent telephone corporation may request adjustments to its revenue requirement or rate design by initiating a rate case before the commission.

(c) (1) A rate case may be initiated by a small independent telephone corporation through either an advice letter or application.

(2) A rate case submitted by an advice letter shall be processed according to the commission’s rules governing advice letters and completed within 10 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an advice letter submission shall take effect within 12 months of its submission. the commission’s disposition of an advice letter pursuant to this section within 12 months of the date the advice letter was submitted.

(3) A rate case submitted by application shall be processed according to the commission’s rules governing formal proceedings and completed within 12 months of its submission. Any The commission shall implement any changes to revenue requirement or rate design resulting from an application submission shall take effect within 14 months of its submission. the commission’s disposition of an application pursuant to this section within 14 months of the date the application was submitted.

(d) The commission shall authorize a small independent telephone corporation to recover its reasonable expenses incurred in participating in any rate case. The reasonableness of rate case expenses shall be determined without regard to the telephone corporation’s other expenses.