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 thanbegin delete 330 calendar daysend deletebegin insert 390 daysend insert 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 thebegin delete 330thend deletebegin insert 390thend insert 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 beginningbegin delete 360 calendarend deletebegin insert 420end insert 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 thebegin delete 360th calendar dayend deletebegin insert 420th dayend insert 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 540begin delete calendarend delete 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
8thanbegin delete 330 calendar daysend deletebegin insert 390 daysend insert following the corporation’s filing
P3 1of its general rate case application or advice letter initiating the
2general rate case.
3(c) Notwithstanding Section
454, if the commission fails to
4issue a final decision as required by subdivision (b), the rate design
5proposed by the small independent telephone corporation in its
6application or advice letter will take effect on an interim basis
7beginningbegin delete 360 calendar daysend deletebegin insert 420 daysend insert following the filing of the
8application or advice letter, subject to an accounting true-up in a
9final commission decision or resolution concluding the rate case,
10if issued within 540 days. The accounting true-up shall be
11performed consistent with commission policies and practices. If
12a final decision or resolution concluding the case has not been
13issued by the commission within 540 days, the interim rate design
14will become final, effective as of thebegin delete 360th calendar dayend deletebegin insert
420th dayend insert
15 following the filing of the general rate case application or advice
16letter, and that rate design will remain in place, until the
17commission issues a final decision or resolution concluding the
18rate case without any true-up accounting. Any new rate design
19adopted in a final decision or resolution issued by the commission
20after 540begin delete calendarend delete days following the filing of the application or
21advice letter will take effect on a prospective basis only, as of the
22effective date of the final decision or resolution.
23(d) The requirements of subdivisions (b) and (c) may be waived
24at any time by mutual consent of the executive director of the
25commission and the small independent telephone corporation.
26(e) This section shall apply to a general rate case that is pending
27on January 1, 2015. For a general rate case that is pending as of
28January 1, 2015, the time periods in subdivisions (b) and (c) shall
29be applied as follows:
30(1) Thebegin delete 330th
calendarend delete
31begin delete November 30, 2015.end deletebegin insert January 25, 2016.end insert
32(2) Thebegin delete 360th calendarend deletebegin insert 420thend insert day in subdivision (c) shall be
33begin delete December 28, 2015.end deletebegin insert February 24, 2016.end insert
34(3) The 540thbegin delete calendarend delete day in subdivision (c) shall be June 23,
352016.
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