AB 1693, as amended, Perea. 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 the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. Existing law, with certain exceptions, prohibits a public utility from changing any rate, except upon a showing before the commission and a finding by the commission that the new rate is justified. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A Program to provide universal service rate support to small independent telephone corporations, as defined, in amounts sufficient to meet the revenue requirements established by the commission through rate-of-return regulation 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 require the commission to issue its final decision on a general rate case of a small independent telephone corporation no later than 330 calendar days following the corporation’s filing of its general rate case application or advice letter initiating the general rate case. If the commission fails to issue a final decision by the 330th day, the bill would provide that the rate design proposed by the small independent telephone corporation in its application or advice letter will take effect on an interim basis beginning 360 calendar days following the filing of the application or advice letter, subject to an accounting true-up in a final commission decision or resolution concluding the rate case, if issued within 540 days. If a final decision or resolution concluding the case has not been issued by the commission within 540 days, the bill would provide that the interim rate design is final, effective as of the 360th calendar day following the filing of the general rate case application or advice letter, and that rate design will remain in place, until the commission issues a final decision or resolution concluding the rate case without any true-up accounting. The bill would provide that any new rate design adopted in a final decision or resolution issued by the commission after 540 calendar days following the filing of the application or advice letter will take effect on a prospective basis only, as of the effective date of the final decision or resolution. The bill would provide that its provisions may be waived at any time by mutual consent of the executive director of the commission and the small independent telephone corporation.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 455.4 is added to the Public Utilities
2Code, to read:
(a) For purposes of this section, “small independent
4telephone corporation” has the same meaning as defined in Section
5275.6.
6(b) The commission shall issue its final decision on a general
7rate case of a small independent telephone corporation no later
8than 330 calendar days following the corporation’s filing of its
9general rate case application or advice letter initiating the general
10rate case.
P3 1(c) Notwithstanding Section 454, if the commission fails to
2issue a final decision as required by subdivision (b), the
rate design
3proposed by the small independent telephone corporation in its
4application or advice letter will take effect on an interim basis
5beginning 360 calendar days following the filing of the application
6or advice letter, subject to an accounting true-up in a final
7commission decision or resolution concluding the rate case, if
8issued within 540 days. The accounting true-up shall be performed
9consistent with commission policies and practices. If a final
10decision or resolution concluding the case has not been issued by
11the commission within 540 days, the interim rate design will
12become final, effective as of the 360th calendar day following the
13filing of the general rate case application or advice letter, and that
14rate design will remain in place, until the commission issues a final
15decision or resolution concluding the rate case without any true-up
16accounting. Any new rate
design adopted in a final decision or
17resolution issued by the commission after 540 calendar days
18following the filing of the application or advice letter will take
19effect on a prospective basis only, as of the effective date of the
20final decision or resolution.
21(d) The requirements of subdivisions (b) and (c) may be waived
22at any time by mutual consent of the executive director of the
23commission and the small independent telephone corporation.
24(e) This section shall apply to a general rate case that is pending
25on January 1, 2015. For a general rate case that is pending as of
26January 1, 2015, the time periods in subdivisions (b) and (c) shall
27be applied as follows:
28(1) The 330th
calendar day in subdivision (b) shall be November
2930, 2015.
30(2) The 360th calendar day in subdivision (c) shall be December
3128, 2015.
32(3) The 540th calendar day in subdivision (c) shall be June 23,
332016.
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