PUC Filing and Reporting Requirements on Local Exchange Carriers; Doc. No. M-00041857 [35 Pa.B. 5910] Public Meeting held
September 9, 2005Commissioners Present: Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson; Bill Shane, dissenting--statement follows; Kim Pizzingrilli; Terrance J. Fitzpatrick, statement follows
Final Implementation Order By the Commission:
On April 15, 2005, the Commission entered a Tentative Implementation Order (Tentative Order) determining which current reporting requirements should be maintained, streamlined or eliminated for Pennsylvania local exchange companies (LECs) in accordance with the Legislative Budget and Finance Committee's (LB & FC) November 17, 2004 Report (LB & FC Report) and Act 183.1 Also, in its Tentative Order, the Commission requested comments on its preliminary determinations regarding the LECs' reporting requirements through a facilitated discussion and written comment period.
The Commission's Tentative Order was the result of a December 2004 Commission directive to the Law Bureau, the Bureau of Fixed Utility Services (FUS), and the Bureau of Consumer Services (BCS) to review the LB & FC Report regarding the reporting requirements for LECs and to submit a recommendation to the Commission regarding options to consolidate and/or streamline these reporting requirements. In accordance with this directive, the bureaus analyzed the LB & FC's specific recommendations, as well as the impact of newly-enacted Act 183, on the Commission's reporting requirements.
Based on our review of Act 183, the comments submitted in this matter and the LB & FC Report, the Commission directs the continuation, consolidation and/or elimination of certain filing and reporting requirements presently imposed on LECs operating in Pennsylvania in compliance with Act 183.
Background
1. LB & FC Report
In June 2004, the Pennsylvania House of Representatives passed House Resolution 786, which directed the LB & FC to conduct a study of the filing and reporting requirements imposed on LECs operating in Pennsylvania and to report its findings. On November 17, 2004, the LB & FC adopted its Report entitled PUC Filing and Reporting Requirements on Local Exchange Carriers. In its Report, the LB & FC had five primary recommendations. Overall, the LB & FC Report recommended that the Commission begin the process of eliminating regulations requiring reports to reduce the regulatory requirements currently existing for LECs in Pennsylvania. The LB & FC recommended that this process be performed in several ways including updating the Commission's current computer capability, consolidating similar information in various reports, and eliminating regulations requiring reports that have been temporarily waived, suspended or otherwise no longer required.
In addition, the LB & FC identified and analyzed a total of 30 reports, filings and other documents. They are as follows: Annual Financial Report, Annual Report of Certificated Interexchange Transporter (IXCs), Annual Report of Residential Account Information, Financial Earnings Report, Annual Depreciation Report, Universal Service Fund Contributions, Assessment Report, Annual Tracking of Telecommunications Relay Service Surcharges, Annual Access Line Report, Lifeline Tracking Report, State Tax Adjustment Surcharge, Physical and Cyber Security Planning Self Certification, State Certification of Universal Service Support, Chapter 30 Annual Price Stability Mechanism, Annual Assessment Bill, Interest Rate on Deposits, Monthly Universal Service Fund Carrier Worksheet, Quarterly Slamming Report, Quarterly Cramming Report, Accident Reports, Standard Service Surveillance Level Report, Traffic Usage Studies, Service Outages, Service Life Study Report, Capital Investment Plan Report, Service Records, Affiliated Interest Agreements, Network Modernization Plans, Supplemental Assessment, and Collocation Report.
2. Act 183
After the LB & FC Report was issued, the Legislature enacted Act 183 with an effective date of December 1, 2004. The Act substantially amends the Public Utility Code relating to alternative forms of regulation for LECs and, in particular, contains provisions designed to reduce the present level of annual, quarterly and other periodic reporting requirements for LECs, as well as the attendant time and expense of their preparation.
Act 183 or Chapter 30 provides that the general filing and reporting requirements for LECs are limited to the nine reports specified in the statute, and are to be ''submitted in the form determined by the Commission.'' 66 Pa.C.S. § 3015(e). Section 3015(e) provides that the Commission's filing and audit requirements for a LEC that is operating under an amended network modernization plan are limited to the following: (1) Network modernization reports filed pursuant to Section 3014(f); (2) An annual financial report consisting of a balance sheet and income statement; (3) An annual deaf, speech-impaired and hearing-impaired relay information report; (4) An annual service report; (5) Universal service reports; (6) An annual access line report; (7) An annual statement of gross intrastate operating revenues for purposes of calculating assessments for regulatory expenses; (8) An annual state tax adjustment computation for years in which a tax change has occurred, if applicable; and (9) for those companies with a bona fide retail request program, a bona fide retail request report under Section 3014(c)(9).
In addition, the Act permits the Commission to require other reports, provided that, after notice and opportunity to be heard, the Commission first finds that the additional report is necessary to ensure compliance with the Act and that the benefits of the report will substantially outweigh the costs to prepare it. 66 Pa.C.S. § 3015(f)(1). Finally, the Act allows that these provisions shall not be construed to limit the Commission's ability to seek further information ''to support the accuracy of or to seek an explanation of the reports specified in subsection (e).'' 66 Pa.C.S. § 3015(f)(2). Further, Section 3019 retains certain powers for the Commission to review and revise its quality of service standards and establish customer protection requirements.2
3. Commission's Tentative Order
On April 15, 2005, the Commission entered a Tentative Implementation Order directing the continuation, consolidation, and/or elimination of the general filing and reporting requirements presently imposed on LECs operating in Pennsylvania. In that Order, the Commission provided for further comments on the impact of Act 183 and the LB & FC's findings as they pertained to certain reporting requirements. The Commission directed that a facilitated discussion3 be held to receive additional comments on the annual financial report, the quarterly slamming reports, the Lifeline Tracking report, and the accident and service outage reports. In addition, the Commission requested written comments by May 31, 2005 on its tentative determinations concerning the LECs' current filing and reporting requirements.
Preliminarily, the Commission concluded that eight reports should be waived and subsequently eliminated, for telecommunications carriers only, either through the rulemaking process or the rescission of previous orders. The reports are as follows: Financial Earnings Report, Annual Depreciation Report, Interest on Deposits Report, Service Life Study Report, Capital Investment Plan Report, Quarterly Cramming Reports, Quarterly Slamming Report for long distance slamming, and Collocation Reports.
Also, the Commission tentatively concluded that certain reports should remain in place in accordance with Act 183. The reports are as follows: the Network Modernization Implementation Plan, the Annual Financial Report, the Annual Tracking Report of Telecommunications Relay Service Surcharges, the Residential Account Information, the Universal Service Fund Contributions and Universal Service Monthly Remittance Worksheet, the Annual Access Line Report, the Assessment Report, Annual Assessment Bill and Supplemental Assessment Bill, the State Tax Adjustment Surcharge (STAS) Report, the Chapter 30 Annual Price Stability Mechanism Report, and Affiliated Interest Agreements.4
In addition, the Commission tentatively determined that two additional reports, the Traffic Usage Studies5 and the State Certification of USF Support of Eligible Telecommunications Carriers per 47 C.F.R. § 54.314,6 should be waived. Further, the Commission determined that certain other reports should remain in place subject to the outcome of certain ongoing proceedings. The reports to remain in place are the Annual Report of Certified Interexchange Transporter,7 the Physical Cyber Security Planning Self Certification,8 the Standard Service Surveillance Level Report, per occurrence, and the Service Records, per occurrence, as required by our regulations.
Finally, the Commission, in its Tentative Order, directed that all LECs continue to file their biennial NMP update reports in the form and detail required by the Commission as of July 1, 2004.
Analysis of LB & FC's Overall Recommendations
As stated previously, the LB & FC had five primary recommendations. The Commission addressed the LB & FC's overall recommendations in its April 15, 2005 Tentative Order.9 However, the Commission's recently-approved budget impacts one of the central components of the LB & FC Report that suggests the Commission update its information systems to assist in streamlining and consolidating reporting requirements. The Commission's budget for the Fiscal Year 2005-06 provides funds to develop a new Case Management System that would provide a single entry-point to submit and access information, initiate transactions and conduct business. Information related to the Commission's progress in developing this system can be accessed at our website at http://www.puc.state.pa.us/. Otherwise, the Commission's previous disposition of the LB & FC's five primary recommendations as stated in its April 15, 2005 Tentative Order remains the same.
Analysis of Specific Reporting Requirements
Section 3015(e) of Chapter 30 provides direction to the Commission to determine what reporting requirements remain for LECs operating in Pennsylvania. Also, the LB & FC Report provides a number of recommendations that will assist the Commission in further assessing the current requirements, consolidating the collection of information, where appropriate, and eliminating duplicate reporting and obsolete regulations. In addition, the Commission's December 2004 Order and its subsequent Tentative Order have initiated the matter before us so that we can better implement the numerous provisions of Act 183.
At the same time, the Commission notes that the process of determining what reporting requirements remain for LECs operating in Pennsylvania is not an on-the-record proceeding invoking the statutory provision of ex parte communications10 and the delineation of administrative advisory and prosecutory functions.11 Rather, the Commission requested comments12 in this docket to assist us in our implementation of Act 183's provisions concerning the LECs future reporting requirements. If any subsequent enforcement action is filed, such action would be prosecutory in nature and, accordingly, would be subject to ex parte prohibitions and the separation of advisory and prosecutory staff.
Therefore, in this Order, the Commission will address our recommendations originally determined in the Tentative Order. The Commission will discuss each report identified in the LB & FC's Report and determine the proper disposition of the reporting requirement in light of the enactment of Act 183 and the comments submitted in this matter.
1. Annual Financial Report
In its Tentative Order, the Commission examined the annual financial report required by our regulations at Section 63.36.13 The Commission concluded that the annual financial report should be examined at a facilitated discussion to determine the nature and extent of the balance sheet, income statement and supporting documentation required to meet the mandates of Act 183. In addition, the Commission tentatively concluded that the annual financial report continues to be permitted by Act 183 although section 3015(e) limits the scope of the annual financial report to a balance sheet and income statement. At the same time, Section 3015(f)(2) permits the Commission to require submission of further information to support the accuracy of the reports, including the annual financial report, specified in Section 3015(e).
The LB & FC's Report stated that the annual financial report is an essential report by which the Commission monitors the financial and operational performance of LECs so that the telecommunications utilities are able to provide adequate and reliable service to the public. The LB & FC points out that, in 2001, the reporting requirements for all telecommunications carriers were appreciably abridged including a Commission restructuring of the annual financial reports.14 The annual financial report is to be filed by all jurisdictional utilities by either April 30 or July 31 reflecting the previous reporting year.15
In comments submitted on May 3, 2005 in anticipation of the facilitated discussion, the interested participants16 discussed the Commission's Tentative Order as well as the provisions of Chapter 30 concerning the LECs reporting requirements. The Commission's Bureau of Fixed Utility Services submitted comments on May 3, 2005, as well as a final form annual financial report revised in accordance with Act 183. FUS' proposed final form consists of 11 pages--eight pages requiring balance sheet and income statement data and three pages consisting of instructions, applicable notes to the balance sheet and income statement, and the verification statement.17
FUS has revised the Commission's annual financial report to specific-purpose financial statements as necessary for regulatory oversight in accordance with several provisions of Act 183.18 For example, the proposed balance sheet information concerning assets and debts provides important data with respect to receivables from or investments in affiliates. Also, FUS submits that the Telephone Plant in Service category and related accumulated depreciation information on the balance statement is necessary to monitor the LECs investment in doing business in Pennsylvania including the financial relationships between regulated entities and affiliates.19 In the liabilities and other credits category of the balance sheet, FUS recommends retaining information with respect to accounts payable to affiliates and long term debt so that the financial viability of the LECs can be assessed.20 Further, FUS recommends the retention of detailed information of state and local taxes since this information is used by the Commission to verify the state tax adjustment surcharge calculations as well as by other state and federal agencies for budgeting, regulatory and taxation policy purposes.21
Regarding the proposed annual financial report income statement, FUS has modified the income statement to reflect data associated with monitoring annual intrastate revenues of rural telecommunications carriers including different categories of services (competitive, noncompetitive, and protected services) to comply with sections 3015(b)(1) and (2).22 In addition, FUS proposes that the income statement include minimum summary data needed to monitor expenditures to determine whether they are adequate and necessary to ensure safe and reliable service.23 Finally, FUS requests that the Commission approve the annual financial report as presented in its Attachment 4 for use for the 2004 reporting year.
On the other hand, the PTA, in its May 3, 2005 comments, indicates that the LB & FC Report is superceded by the passage of Act 183 and, thus, the annual financial report is limited to one balance sheet and income statement.24 In defining these terms, the PTA relies on a series of sources but essentially submits that the balance sheet and income statement required under Act 183 should consist of summary schedules providing financial information on assets, liabilities and equity as well as comprehensive income.25 Specifically, the PTA states that the balance sheet and income statement that is contained in the Commission's current annual financial report at schedules 8 and 10 should be the only information required to comply with Act 183.26 The PTA also submits that other types of reports, such as statements of retained earnings, changes in equity, financial position or cash flow are expressly excluded by the statute.27
Further, the PTA states that the annual financial report is not subject to the language at sections 3015(e)(9) and 3015(f)(2) of Chapter 30 which permits the Commission to determine the form of reports and to require information to support the accuracy or to seek an explanation of the reports listed in subsection(e).28 The PTA states that section 3015(e)(9) applies only to the Bona Fide Retail Request Program report which is the ninth report in this section.29
At the May 11, 2005 facilitated discussion, the interested participants further commented on the contents of the annual financial report. Specifically, FUS discussed Attachment 4 as its proposed format for the annual financial report in light of the passage of Act 183. FUS indicates that Attachment 4 is a balance sheet and income statement with explanatory notes comprising eleven pages.30 FUS also indicates that, in general, the annual financial report is a principle tool for all parts of the Commission to inform themselves of a company's level of operations.31
Specifically, FUS submits that the proposed format provides a base for year-to-year comparisons, financial monitoring and consistent information for evaluating proposed changes by the LECs. For example, FUS indicates that the proposed annual financial report will provide information on the proposed migration of services from protected to competitive designation and a company's proposed elimination of the state universal service fund.32 Also, FUS indicates that the proposed annual financial report can provide an intermediate check on the general level of investment that is being made by a particular LEC for NMP compliance. Further, the proposed annual financial report will provide limited information on dollar flows between affiliates so that regulated companies are not improperly subsidizing an affiliate, such that the LEC could not meet its Act 183 obligations.33
In addition, legislative staff indicated that the annual financial report is limited to simply a balance sheet and income statement.34 Similar comments were submitted by Representatives William Adolph, Jr.,35 Raymond Bunt, Jr. and Joseph Preston, Jr.36 In addition, other participants including the PTA37 and the OCA38 commented on the format of the annual financial report.
Moreover, written comments39 were filed on May 31, 2005 further clarifying the annual financial report. Based upon the comments received at the facilitated discussion and a subsequent informal meeting with the interested participants, FUS submitted comments reflecting further revisions to the annual financial report. FUS makes these modifications in compliance with sections 3015(e) and (f)(2) of Chapter 30 so that the Commission develops a format that includes the requisite information along with supporting documentation to permit the Commission to effectively perform its statutory obligations prescribed by Act 183.40 Specifically, FUS revised the annual financial report to incorporate line items in compliance with the Uniform System of Accounts for Telecommunications Companies at the federal level.41 However, FUS submits that companies must continue to maintain subaccounts for residential and business revenues as well as revenues and expenses for the different classifications of telecommunications services.
In addition, FUS states that it has designed the annual financial form to be applicable to both incumbent and competitive LECs and to require little follow up under section 3015(f)(2) for companies that use the form. FUS indicates that, if PTA's proposed two schedules are filed, the LECs would be subject to subsequent Commission data requests to validate the financial information so that the Commission can meet its statutory obligations.42
The PTA also submitted comments on May 31, 2005 in accordance with the Commission's Tentative Order. Although PTA objects to using the unsworn statements obtained at the facilitated discussion to support Commission findings in this docket, the PTA states its willingness to cooperate with FUS to develop an annual financial report that meets the requirements of the statute and is useful to the Commission at the same time. In that light, PTA submits that modifying Schedules 8 and 10 of the current annual financial report is acceptable as long as the modifications follow the prescribed Chart of Accounts and do not include new accounting categories such as residential and business revenues, noncompetitive and competitive services revenues, or intrastate operating revenues.43 However, PTA states that it can endorse the current breakdown of revenues listed in the Chart of Accounts which include local network, local access, network access, long distance, miscellaneous and uncollectibles.44
In terms of the balance sheet items, the PTA is willing to accept FUS' modification of including plant-in-service accounts in accordance with the Chart of Accounts categories even though this level of detail is not typically included in a balance sheet.45 On the other hand, PTA objects to including additional information in the balance sheet as proposed by FUS including identification of investments with affiliates and long-term debt information. Because of these changes, PTA submits revised income statement and balance sheet documents to reflect its modifications.46
MCI briefly addresses the issue that the annual financial report should be limited to a balance sheet and income statement. In supporting PTA's comments, MCI concurs with Ms. Dillon's comments set forth at the May 11, 2005 facilitated discussion.47
Subsequent to the close of the comment period in this docket, the interested participants continued to informally discuss the annual financial report. On August 9, 2005, the PTA and FUS submitted a written stipulation in this docket that represents an agreed-to form for the annual financial report. In addition, Appendix A indicates that the new annual financial form will be used by all LECs, incumbents as well as competitive LECs, to file their 2004 data by October 31, 2005. Specifically, Appendix A of the stipulation, as attached hereto, indicates that the Commission will be able to sufficiently monitor the changes in company accounts from year to year, particularly those related to affiliated transactions and plant investment made for local exchange services so that the Commission can fulfill its financial oversight and statutory obligations. The stipulation permits the summary level of reporting for many accounts because the smaller companies report at summary levels of accounting in accordance with FCC directives. Even though the larger telecom companies maintain separate, detailed accounts and subaccounts for local exchange and toll services and separate subsidiary operations, the Commission recognizes that that additional information is made available at the FCC for the large ILECs which negates requiring more detailed filings at the Commission. The stipulation also provides for companies to reference their explanatory notes to balance sheets and income statements as reported to stockholders. Further, the stipulation provides for a verification by a company officer which provides assurance of the validity of the submitted information.
Based on our review of the requirements of Act 183 and the proposal submitted by FUS and PTA, the Commission hereby determines that the annual financial report for incumbent and competitive LECs should consist of the information submitted by FUS and the PTA in their August 9, 2005 stipulation at Appendix A. We agree that this version of the annual financial report meets that Commission's informational needs and is consistent with the Annual Financial Report specified in Act 183. The proposed format also avoids duplication of information available to the Commission elsewhere, and is substantially streamlined from the pre-Act 183 annual report. Also, the agreed-to report format permits the Commission to undertake a meaningful review of a company's financial circumstances to fulfill our statutory duty of requiring reasonable, safe and reliable telecommunications service.
Therefore, because the proposed Annual Report is consistent with Act 183 and meets the Commission's informational needs, the Commission hereby modifies the form of the Annual Financial Report to that proposed by FUS and PTA in Appendix A of their joint stipulation. Nevertheless, the legislature has recognized that an individual company's annual financial report or circumstances may raise questions that require further review to adequately fulfill the Commission's statutory responsibilities. In that event, Act 183 provides that the Commission may require the submission of further information ''to support the accuracy of or to seek an explanation of'' the annual financial report. 66 Pa.C.S. § 3015(f)(2).
2. Annual Report of Certified Interexchange Transporter
In its Tentative Order, the Commission found that the annual report of certified interexchange transporters should remain as a reporting requirement in accordance with our regulations at section 63.107 and Act 183. The Commission also found that the statute does not limit the Commission's authority to order the filing of certain reports including those that may be necessary to monitor the market for and competitiveness of IXC services even though section 3018 provides that all interexchange services are competitive.48
The annual report of certified interexchange transporters (IXCs), i.e. long distance carriers, is required by Commission regulation at section 63.107.49 According to the Commission's regulation, the report is due annually on May 31 reflecting total revenue and traffic volume data measured in minutes of use for intrastate operations for the preceding calendar year. The LB & FC's Report states that the Commission requires this IXC report to monitor the operating revenues of the IXC industry to determine its viability. The PTA's position in the LB & FC's Report was to eliminate this reporting requirement and to require that the IXCs file the same information in their annual financial reports.
MCI filed comments supporting elimination of this reporting requirement because the interexchange (IXC) market has been competitive for a significant number of years in both Pennsylvania and nationally.50 MCI submits that additional competition has entered the IXC market since the passage of the Telecommunications Act of 1996 and Verizon's entry into the IXC market in Pennsylvania in September 2001. MCI submits that, based on these factors, there is no need for the Commission to monitor the viability or the competitiveness of the IXC market. Therefore, MCI states that this reporting requirement should be eliminated.51
No other comments were filed addressing this reporting requirement. At this time, the Commission is examining its obligations to regulate IXC carriers in a proposed rulemaking at Docket No. L-00050170.52 Once comments are received in that docket, the Commission will make its final determinations concerning the regulation of IXC carriers and their services. In the meantime, however, the Commission adopts its findings as set forth in the Tentative Order and the annual report of certified interexchange transporter at section 63.107 remains in place subject to the outcome of the above-mentioned rulemaking proceeding.
3. Annual LEC Reporting of Residential Account Information
In its Tentative Order, the Commission determined that, in accordance with Act 183, the information currently required at sections 64.201(a) and (b) is to be filed on an annual basis as part of the annual service report listed in section 3015(e)(4) of the Act. The Commission based its tentative conclusion on section 3019(b)(2) of Chapter 30 which retains the Commission's authority to review and revise its regulations concerning the ordering, installation, suspension and termination of any telecommunication service. Also, the Commission determined that our regulations at section 64.201(b) which require quarterly filings be waived to reduce the filing to an annual basis to comply with Chapter 30. Thus, we directed Commission staff to begin a rulemaking to eliminate the quarterly filings of the information required at sections 64.201(b) if no adverse comments were received.
The Commission's regulations at sections 64.201(a) and (b)53 require LECs to file residential account information reflecting billing and collection practices including customer disputes. Section 64.201(a) requires LECs that have less than 50,000 residential accounts to file an annual report by April 1 containing information about their residential accounts as prescribed by section 64.201(c)54 of the regulation. Section 64.201(b) requires that LECs with more than 50,000 residential accounts file quarterly and annual reports containing information about their residential accounts as prescribed by section 64.201(c) of the regulation.55
Comments were received concerning this reporting requirement. PTA concurs with the Commission's tentative conclusion that the residential account information described herein should be included in the annual service report at section 3015(e)(4) but limited to annual reports for all LECs.56
On the other hand, MCI submits that the national competitive LECs, such as itself, do not maintain the information in the present format and request that the Commission modify the regulation to permit company-specific filings.57 Also, MCI states that this report is not necessary for the Commission to monitor trends in customer services and telecommunications competition. MCI submits that telecommunications competition can be analyzed through other means including access line reports and revenues that are provided through other reporting requirements. Although MCI does not believe that the information contained in this report is related to customer service, MCI opines that customer service trends can be monitored through informal complaints received by BCS.58
In addition, MCI comments that the information contained in this report is not necessary to protect consumers, especially in light of the changed telecommunications market in Pennsylvania. MCI submits that the telecommunications market is no longer a monopoly and customers have choices in their providers and services.59 MCI believes that this reporting requirement should be eliminated since it is not listed in section 3015(e).
Further, MCI states that this reporting requirement is problematic because the report requires basic, non-basic and toll information which is an outdated format since many providers offer bundled services that do not recognize a distinction between local and toll charges. In addition, carriers such as MCI do not separate uncollectible amounts according to different types of services.60 Therefore, MCI supports elimination of this reporting requirement but, in the alternative, requests the Commission to modify the regulation to permit carriers to report according to the manner in which the information is collected by companies.61
In reviewing the comments submitted by MCI and the provisions of Chapter 30, the Commission determines that both incumbent and competitive LECs will continue to provide information in accordance with our current regulations at section 64.201 but on an annual basis. We find that company-specific information regarding residential account information is not practical and, in fact, may violate the provisions of Act 183. If the Commission would allow company-specific information to be filed concerning residential account information from numerous companies, Commission staff would find it necessary to request additional clarifying information from each carrier resulting in increased reporting information and responsibilities rather than decreased reporting requirements as prescribed in Chapter 30. Also, the Commission finds that the use of standardized data permits the Commission to compare companies on service quality issues over time as permitted by section 3019 of Chapter 30 so that it can review and revise its regulations to address and update service quality standards.
Therefore, we conclude that the determinations reached in our Tentative Order are affirmed and direct Commission staff to begin a rulemaking to change the quarterly filings requirement at sections 64.201(b) to annual reporting consistent with the provisions of Chapter 30 and the discussion in this Order.
4. Financial (Earnings) Report
In the Tentative Order, the Commission decided to continue to waive the financial earnings report as required in our regulations at section 71.362 as set forth in the March 11, 2005 Secretarial Letter at this docket. At the same time, the Commission directed staff to immediately initiate a rulemaking proceeding to eliminate this regulation, for telecommunications carriers only, in accordance with the discussion in the Tentative Order. Further, in accordance with Section 703(g) of Title 66,63 the Commission concluded that it would rescind its December 4, 2001 Order that streamlined the reporting requirements for financial earnings information filed by LECs, subject to consideration of any comments to the contrary.
The financial earnings report is required from those companies with annual intrastate gross revenue in excess of $1 million but less than $10 million on an annual basis. The companies with annual intrastate gross revenue in excess of $10 million must file semiannually. In 2001, the Commission streamlined the reporting requirements for the financial earnings information by reducing the filing intervals as described above.64
The PTA submits general comments in this docket indicating that, if specific reports do not appear in section 3015(e)(1)--(9), the Commission cannot require them under Act 183. Also, the PTA opines that the Commission cannot reinstate any reports not related to rates unless it uses the process outlined in section 3015(f) of Chapter 30.65 The PTA also submitted, at the time of the LB & FC Report, that the reports under section 71.03 should be eliminated if the ILEC has an approved alternative form of regulation. Beyond the PTA comments, no participant filed comments on this reporting requirement after the Commission entered its Tentative Order.
The Commission affirms its conclusion reached in the Tentative Order that the list of reports permitted by Act 183 does not include a separate financial earnings report of the type required by section 71.3 of our regulations. Therefore, we shall rely on the income statement data in the annual financial report permitted by Section 3015(e)(1) to monitor the earnings and financial health of LECs. Consequently, we direct staff to immediately initiate a rulemaking proceeding to eliminate this regulation, for telecommunications carriers only, in accordance with the discussions in our Tentative and Final Orders at this docket. Further, in accordance with Section 703(g) of Title 66,66 the Commission rescinds its December 4, 2001 Order that streamlined the financial earnings reporting requirement for LECs pursuant to our discussion set forth herein.
5. Annual Depreciation Report
The Commission also determined, in its Tentative Order, that the annual depreciation report required at section 73.367 of our regulations is waived and subject to elimination through the rulemaking process. The Commission determined that sections 3014(f)(1) and 3015(e)(1) permit the filing of depreciation reports in the form specified by sections 73.3--73.4 with NMP biennial reports. At the same time, we directed staff to determine whether a streamlined form of the information specified in sections 73.3--73.4 can be adequate to verify LEC compliance with its NMP obligations.
As stated in the Tentative Order, this reporting requirement applies to all telecommunications carriers with over 50,000 access lines and all public utilities that have annual gross intrastate operating revenues in excess of $20 million. Currently, eight telecommunications companies68 are required to file this annual report. The Commission, in the LB & FC Report, indicated that the purpose of this LEC filing is to provide detailed annual depreciation expense for each company for the annual financial report and the biennial network modernization plan (NMP) report. In essence, this report, in conjunction with the service life study report and the capital investment plan report, assists the Commission in monitoring on a regular basis the depreciation practice and capital planning of a public utility.69
No comments were filed concerning this reporting requirement at this docket except for the PTA's general comments concerning the specific reports listed in section 3015(e) and the process described in section 3015(f) as mentioned above. The PTA, at the time of the LB & FC Report, proposed to eliminate this reporting requirement because the annual depreciation information is similar information provided in a company's annual financial report.70 In addition, the PTA noted that LECs governed by Chapter 30 plans are required to provide information on depreciation as part of their biennial NMP reports.
As directed by the Commission in the Tentative Order, Commission staff has examined the current depreciation information received in compliance with our regulations. In doing so, Commission staff has included in the agreed-to annual financial report the necessary annual depreciation data needed to verify the LECs NMP obligations. In addition, depreciation information is submitted in a LEC's NMP biennial report in accordance with section 3014(f)(1). Because these two reports will furnish the appropriate annual depreciation information needed to verify the LECs NMP obligations, the annual depreciation information is streamlined so that the annual depreciation report required by our regulations can be eliminated.
In addition, based upon our review of Chapter 30, the list of reports permitted by Act 183 does not include a separate annual depreciation report of the type required by section 73.3 of our regulations. As noted by the PTA, depreciation information is submitted as part of the annual financial report and, in our judgment, will remain a critical component to support the accuracy of the LECs' income statements. Therefore, as we determined in our Tentative Order, this filing requirement is waived as it pertains to general filing and reporting obligations, and staff will immediately commence a rulemaking proceeding to eliminate the regulation.
At the same time, we note that sections 3014(f)(1) and 3015(e)(1) continue to require the filing of biennial reports in the detail and form required by the Commission as of July 1, 2004,71 unless the Commission reduces such reporting requirements. The Commission's reporting requirements for biennial updates currently include a requirement to file depreciation reports in the form specified by sections 73.3--73.4. Therefore, each LEC remains obligated to file this information with its NMP biennial report consistent with sections 3014(f)(1) and 3015(e)(1).
6. Universal Service Fund Reports
In the Tentative Order, the Commission examined the universal service fund contributions report as well as the USF remittance worksheet and concluded that these reports can continue to be required under Chapter 30 at section 3015(e)(5).72 Moreover, the Commission determined that these reports are necessary to manage Pennsylvania's universal service fund.
The LB & FC Report examined our regulations at section 63.16573 which requires an annual submission by all telecommunications carriers of their total intrastate end-user telecommunications retail revenues for the preceding calendar year. This information is necessary to calculate the amount each carrier will owe the Pennsylvania Universal Service Fund the next calendar year.74
Also, the LB & FC Report reviewed the monthly universal service fund carrier remittance worksheet as required by our regulations at section 63.169.75 This worksheet is filed with a LEC's monthly USF contribution. Currently, the Commission has opened an investigation into the intrastate access charges of the rural ILEC carriers (including Sprint/United) to determine whether the Pennsylvania USF should continue after December 31, 2006.76 The Commission's decision in that proceeding will impact this reporting requirement.
The PTA indicated in the LB & FC Report as well as its comments77 at this docket that no changes should be made to these reporting requirements. The OCA concurs with the Commission's language in its Tentative Order that we are required by federal regulations to certify to the Federal Communications Commission (FCC) and the Universal Service Administrative Company (USAC) that carriers in Pennsylvania will use federal high cost support monies received only for the provision, maintenance, and upgrading of the facilities and services eligible for support. The OCA submits that this certification requirement applies to high cost support and any type of federal universal service support received.78
In considering the comments received and in accordance with Chapter 30, the Commission affirms its determinations in the Tentative Order at this time. Therefore, we find that section 3015(e)(5) permits the continuation of the universal service fund contributions report and the remittance worksheet in one report as prescribed in our regulation at section 63.165. However, we may revisit this issue once a final determination has been made concerning Pennsylvania's universal service fund at Docket No. I-00040105 as discussed herein.
7. Assessment Reports
In its Tentative Order, we determined that the Commission is statutorily required to notify all public utilities of the amount of their assessment.79 Because of this statutory requirement,80 we determined that the Commission is obligated to render an annual assessment bill based on all public utilities' gross intrastate revenues. Thus, we found that no changes were needed regarding the Commission's annual assessment report and bill.81
As required by section 510(b) of the Public Utility Code, 82 the assessment report provides gross intrastate operating revenues for the preceding year for all public utilities, including telecommunications carriers, so that each company is assessed its appropriate share for that year. The information contained in a company's statement is vitally necessary to calculate the annual assessment amounts for each public utility to fund the continued operation of the Commission, Office of Consumer Advocate, and Office of the Small Business Advocate.83
The PTA states that the assessment report and subsequent bill should remain in its current form and is permitted under section 3015(e)(7) of Chapter 30.84 Also, the PTA indicated in the LB & FC Report that no changes are necessary in the annual assessment bill.85 No other comments were filed addressing this reporting requirement.
We agree with the PTA that sections 510(b) and 3015(e)(7) of the Public Utility Code requires LECs to file an annual statement of gross intrastate revenues for assessment purposes. Therefore, we affirm our decision in the Tentative Order to continue the assessment report and bill in accordance with sections 510(b) and 3015(e)(7).
8. Annual Tracking Report of TRS Surcharges
In the Tentative Order, the Commission found that the LECs are to file the annual tracking report of TRS surcharges in accordance with our regulations,86 previous orders and Act 183 at section 3015(e)(3). Specifically, the Commission concluded that Act 183 at section 3015(e)(3) requires LECs to provide an annual deaf, speech-impaired and hearing-impaired relay information report which includes the annual tracking report mentioned herein.
As stated in the LB & FC Report, the Commission uses the annual tracking report of TRS surcharges as required by section 69.513 of our regulations to monitor carrier surcharge submittals to the TRS Fund in comparison to the carrier's access line counts to verify that the appropriate surcharge is collected from end users. In addition, the Commission also uses this information to perform its annual audit of the TRS Fund.87
The PTA advocates that this tracking report is permissible under section 3015(e)(3) as part of the annual deaf, speech-impaired and hearing-impaired relay information report.88 No other participant commented on this reporting requirement.
Based on our review of section 69.513, our Order89 and Act 183, we find that the telecommunications carriers are required to file the annual tracking report of TRS surcharges with the Commission in accordance with our regulation at section 69.513(a) and Chapter 30. Therefore, we affirm our determinations in the Tentative Order as discussed herein and the reporting requirement prescribed at section 69.513(a) remains in place.
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1 66 Pa.C.S. §§ 3011 et seq. (2005).
2 66 Pa.C.S. §§ 3019(b)(2) and (3).
3 The Commission's facilitated discussion took place on May 11, 2005 where participants submitted unsworn comments that were transcribed.
4 The Affiliated Interest Agreements are to be filed only for notice, and not for approval purposes.
5 This report is required by 52 Pa. Code § 63.72 but is being reviewed by the Commission in a rulemaking proceeding at Docket No. M-00031703.
6 This report is presently suspended pursuant to Petition of the Pennsylvania Independent Telco Coalition for Designation as Eligible Telecommunications Carriers for both State and Federal Purposes, Docket No. P-00971264 (Order entered June 11, 2004).
7 This reporting requirement is addressed in Proposed Rulemaking for Revision of Chapter 63 of Title 52 of the Pennsylvania Code Pertaining to Regulation of Interexchange Telecommunications Carriers and Services, Docket No. L-00050170 (Order entered March 29, 2005).
8 This reporting requirement has been required pursuant to Revised Final Rulemaking Order Re: Public Utility Security Planning and Readiness, Docket No. L-00040166 (Order entered March 10, 2005), 35 Pa. B. 3299 (June 11, 2005).
9 See PUC Filing and Reporting Requirements on Local Exchange Carriers, Docket No. M-00041857 (Order entered April 15, 2005) at 4-6.
10 66 Pa.C.S. § 334(c). As defined in section 334(c), a contested on-the-record proceeding is a proceeding required by a statute, constitution, published commission rule or regulation or order in a particular case, to be decided on the basis of the record of a commission hearing, and in which a protest or petition or notice to intervene in opposition to requested commission action has been filed.
11 Further, we note that the LEC reporting requirements matter at the above-referenced docket number is not a proceeding to determine a possible violation of the Commission's rules and regulations. Rather, the LEC reporting requirements matter was initiated by the Commission to examine its own regulations and prior orders, in light of the LB & FC's report and the passage of Act 183, to determine whether certain reporting requirements should be consolidated or streamlined. Thus, the Commission concludes that this docket is not a matter invoking the separation of prosecutory and advisory functions.
12 Concurrently, on April 15, 2005, the Commission issued a Secretarial Letter setting the date for the facilitated discussion as well as the procedures for participating in the discussion. The Commission provided for comments and/or presentations to be filed at the docket in anticipation of the May 11, 2005 facilitated discussion. The interested participants were able to submit comments approximately seven days before the facilitated discussion was convened. In addition, the interested participants were provided an opportunity to make presentations at the facilitated discussion as well as to file written comments by May 31, 2005.
13 52 Pa. Code § 63.36. Historically, the annual financial report has been a comprehensive report with multiple schedules and supporting documentation.
14 The Commission restructured the annual financial reports by industry segment and reduced the number of pages in half. The carriers continue to be required to provide up to 39 schedules of financial information. LB & FC Report at 4.
15 The Commission determined that the April 30 due date for the annual financial report for LECs be suspended as set forth in its March 11, 2005 Secretarial Letter in this docket.
16 Comments or letters of participation were filed by the Pennsylvania Telephone Association (PTA), MCI, Representatives William F. Adolph, Jr., Raymond Bunt, Jr., Joseph Preston, Jr., Fran B. Cleaver, Esquire for Senator Robert M. Tomlinson, Office of Consumer Advocate (OCA), the Commission's Bureaus of Consumer Services and Fixed Utility Services.
17 FUS May 3, 2005 Comment of Robert F. Wilson at 4.
18 Id. at 4-8.
19 Id. at 7-8.
20 Id. at 8.
21 Id. at 9.
22 Id.
23 Id. at 10.
24 PTA May 3, 2005 Comments at 4-6.
25 Id. at 10-11.
26 Id. at 12.
27 Id. at 11.
28 66 P.C.S. at §§ 3015(e) and (f).
29 PTA May 3, 2005 Comments at 4-5.
30 Tr. at 39. FUS indicates that Attachment 4 represents a redesign of schedules to try and better reflect post Act 183 operating conditions.
31 Id.
32 Tr. at 39-40.
33 Tr. at 40.
34 Comments of Fran Cleaver, Esquire for Senator Tomlinson's Office, Tr. at 15-16.
35 Representative Adolph submitted comments stating: ''House Bill 30 . . . limits the Annual Report to a balance sheet and income statement . . . . these two are intentionally referenced and no others are permitted.'' Comments of Representative William F. Adolph, Jr., 165th Legislative District, Tr. at 19-20.
36 Representatives Bunt and Preston submitted the following comments: ''[T]he Commission may ask for nine reports enumerated above and may request additional clarifying information on the nine reports where necessary. No further reports or additional information can be requested or mandated unless the aforementioned findings are made.'' Comments of Representatives Raymond Bunt, Jr., Majority Caucus Secretary and Joseph Preston, Jr., Democrat Chairman Consumer Affairs Committee, Tr. at 23.
37 Comments of Karen Dillon, Commonwealth Telephone Company, Tr. at 29-32. Ms. Dillon identified several items in FUS Attachment 4 that she believed did not fall into the category of income statement or balance sheet. Also, Ms. Dillon asked for clarification of particular categories included in FUS Attachment 4 to indicate that PTA wishes to limit its reporting to a balance sheet and income statement. Tr. at 32.
38 Comments of Phillip McClelland, Esquire, Office of Consumer Advocate, Tr. at 37. Mr. McClelland stated that OCA supports FUS Attachment 4 as proposed with some clarifications. Also, Mr. McClelland stated that the OCA's goal is ''to get an accurate jurisdictional picture of the company, both their assets and income available, so that we could evaluate their financial health.'' Id.
39 The PTA, OCA, MCI and FUS filed written comments on May 31, 2005.
40 May 31, 2005 Comments of Robert A. Rosenthal, Director, Bureau of Fixed Utility Services, at 1-2.
41 47 C.F.R. § 32 (Uniform System of Accounts for Telecommunications Companies (hereinafter referred to as Chart of Accounts).
42 Id. at 2-3.
43 PTA May 31, 2005 Comments at 7-9.
44 Id. at 8.
45 Id. at 9.
46 Id. and PTA June 1, 2005 Attachment.
47 MCI May 31, 2005 Comments at 3.
48 66 Pa.C.S. § 3018(d)(2).
49 52 Pa. Code § 63.107(In practice, the IXC transporters submit their annual filing on April 30). On March 23, 2005, the Commission adopted a proposed rulemaking to revise our regulations regarding interexchange telecommunications carriers (IXCs) as a result of Act 183. Proposed Rulemaking for Revision of Chapter 63 of Title 52 of the Pennsylvania Code Pertaining to Regulation of Interexchange Telecommunications Carrier and Service, Docket No. L-00050170 (Order entered March 29, 2005).
50 MCI May 31, 2005 Comments at 3-4.
51 MCI May 31, 2005 Comments at 4.
52 Proposed Rulemaking for Revision of Chapter 63 of Title 52 of the Pennsylvania Code Pertaining to Regulation of Interexchange Telecommunications Carrier and Service, Docket No. L-00050170 (Order entered March 29, 2005).
53 52 Pa. Code §§ 64.201(a) and (b).
54 52 Pa. Code § 64.201(c) requires that LECs include information regarding the average number of residential accounts per month, the average monthly residential customer bill, the average number of overdue residential accounts per month, the average overdue residential customer bill per month, the average number of residential basic service suspension notices and suspensions per month, LECs' gross revenues from residential accounts, LECs' gross and net write-offs of uncollectible residential accounts, and the total number of Chapter 64 disputes.
55 The LB & FC Report states that the Commission uses these reports to monitor all LECs billing and collection practices and billing dispute volumes to determine trends in customer service including problem areas and corrective actions. The Commission also states, in the LB & FC Report, that this information is used for operational audits and measuring residential telecommunications competition. LB & FC Report at 7.
56 PTA May 3, 2005 Comments at 6.
57 MCI May 31, 2005 Comments at 4.
58 Id. at 4-5.
59 Id. at 5.
60 Id. at 6. MCI indicates that it has requested a waiver of the Commission's regulations at section 64.201(c)(4) since it does not track overdue account information on a state-specific basis. The Commission granted the waivers pertaining to section 64.201(c) as requested by MCI. Petitions of MCIMetro Access Transmission Services, LLC for Waiver of Local Exchange Reporting Requirements at 52 Pa. Code 64.201, Docket No. P-00042139 (Order entered September 9, 2005).
61 MCI May 31, 2005 Comments at 6-7.
62 Section 71.3 requires that LECs with annual intrastate gross revenue in excess of $1 million file financial earnings reports. 52 Pa. Code § 71.3.
63 66 Pa.C.S. § 703(g).
64 Adequacy and Interpretation of Existing Accounting Procedures and Financial Reporting Regulations for All Telecommunications Carriers, Docket No. L-00010153 (Order entered December 4, 2001).
65 PTA May 31, 2005 Comments at 7.
66 66 Pa.C.S. § 703(g).
67 52 Pa. Code § 73.3.
68 Alltel, Commonwealth Telephone Company, Conestoga Telephone Company, D & E Telephone Company, North Pittsburgh Telephone Company, United Telephone Company, Verizon North Inc. and Verizon Pennsylvania Inc. LB & FC Report at 11. Concerning these eight LECs, the annual depreciation report is reviewed in conjunction with the company's NMP report to determine each LEC's progress towards meeting its modernization objectives.
69 Id.
70 Id. at 12.
71 Implementation of Chapter 30 of the Public Utility Code: Reporting Requirements for Biennial Updates of Network Modernization Plans Filed Pursuant to 66 Pa.C.S. § 3003(b)(6), Docket No. M-00930441 (Order entered May 17, 1999).
72 Act 183 at § 3015(e)(5).
73 52 Pa. Code § 63.165.
74 LB & FC Report at 13.
75 52 Pa. Code § 63.169.
76 Intrastate Access Charges and IntraLATA Toll Rates of Rural Carriers and the Pa. Universal Service Fund, Docket No. I-00040105 (Order entered December 20, 2004). On August 30, 2005, the Commission entered an Order staying this proceeding for one year in light of the Federal Communications Commission's ongoing proceedings concerning intercarrier compensation.
77 PTA May 3, 2005 Comments at 6; PTA May 31, 2005 Comments at 5-6.
78 OCA May 3, 2005 Comments at 5.
79 66 Pa.C.S. § 510(c).
80 As stated previously, Act 183 did not repeal Section 510 of the Public Utility Code, thus, the Commission's statutory obligations at this section remain in effect.
81 As stated in our Tentative Order, we note that the filing referenced here is not a report but the actual bill and/or supplemental bill sent to all public utilities so they can remit payment of their assessment.
82 66 Pa.C.S. § 510(b).
83 LB & FC Report at 14.
84 PTA May 3, 2005 Comments at 6-7.
85 LB & FC Report at 22.
86 52 Pa. Code § 69.513.
87 LB & FC Report at 15.
88 PTA May 3, 2005 Comments at 6.
89 PA Telecommunications Relay System and Annual Tracking Report of PA Telecommunications Relay Service Surcharges, Docket No. M-00900239 (Orders entered August 3, 1990 and September 11, 1992).
[Continued from previous Web Page] 9. Annual Access Line Report
In our Tentative Order, we determined that telecommunications carriers should continue to file the annual access line report with the Commission in accordance with our regulation at section 69.513(b) and Act 183. The Commission reached this conclusion because Act 183 at section 3015(e)(6) clearly requires LECs to provide an annual access line report.90
As indicated in the LB & FC Report, the Commission requires the annual access line report in order to recalculate the TRS surcharges each year.91 In addition, the report is used as a measure of market competition in the state, by comparing the access line counts for CLECs and ILECs.92
The PTA indicates that the annual access line report is permissible under section 3015(e)(6).93 No other participant commented on this reporting requirement.
Therefore, we affirm our determination in our Tentative Order that the LECs will continue to submit their annual access line report as required by section 69.513(b) of our regulations and our previous Orders in accordance with Chapter 30 at section 3015(e)(6).
10. Lifeline Tracking Report
In the Tentative Order, we determined that comments should be received concerning the Lifeline tracking report so that we could further assess the necessity of this filing requirement. We indicated in the Tentative Order that, once the parties' comments are reviewed by the Commission, we will make a final determination as to the necessity of the Lifeline tracking report.
In the LB & FC Report, the Commission indicated that the Lifeline tracking report is required by our February 21, 2003 Order94 on an annual basis in order to monitor customer enrollment and funding levels in the statewide Lifeline 150, and Link-Up programs, the Verizon95 companies' Lifeline programs and Verizon Pennsylvania Inc.'s Universal Telephone Assistance Program (UTAP). Also, the Commission stated that it uses the data to monitor the status of other LECs' universal service programs.96
BCS filed comments on this reporting requirement indicating that it monitors the universal service programs of LECs by using the data collected from the annual Lifeline tracking report. BCS indicates that the reporting on universal service programs consists primarily of enrollment data on the following programs: Link-Up America, Lifeline Service, and the Universal Telephone Assistance.97 BCS also indicates that the Commission directed that industry and other interested participants develop new formats for reporting the requested data but no consensus was reached by the parties. Therefore, BCS developed and the Commission approved Verizon's annual Lifeline tracking report to monitor the customer enrollment and funding levels for the universal service programs offered by Verizon Pennsylvania and Verizon North. BCS also uses this same data to provide an annual report to the Commission, the General Assembly and the public on the status of telephone universal service programs in Pennsylvania. BCS further indicates that it uses the annual Lifeline tracking reports supplied by the non-Verizon companies to monitor customer enrollment and the status of universal programs offered by other major carriers operating in Pennsylvania.98
In addition, BCS indicates that the annual Lifeline tracking report is permitted as a reporting requirement at section 3015(e)(5) of Chapter 30.99 In light of the changes in Chapter 30 requiring automatic notification of Lifeline programs at section 3019(f), BCS recommends that the annual report remain in place so that program changes resulting from Act 183 can be tracked to measure the impact of the newly-enacted provisions.100
As stated previously, the PTA submits comments at this docket indicating that, if specific reports do not appear in section 3015(e)(1)--(9), the Commission cannot require them under Act 183. Also, the PTA opines that the Commission cannot reinstate any reports not related to rates unless it uses the process outlined in section 3019(f) of Chapter 30.101 Specifically, PTA indicates that the Commission can no longer required the Lifeline tracking report because it does not relate to rates or rate setting as set forth in section 3015(f)(1) of Chapter 30.102 The PTA also submits that this report cannot be required under section 3015(e)(5) as a universal service report simply because other participants state that it is related to the policy goal of universal service.103 The PTA argues that the term ''universal service reports'' at section 3015(e)(5) includes only two separate reports related to the administration of the universal service fund.104 Concurrently, the PTA stated that no changes to these reporting requirements were needed at the time of the LB & FC Report.105
The OCA submits that the continuation of the annual Lifeline tracking reports is critical to assessing the success of Pennsylvania's telephone low-income assistance programs. The OCA states that, in order to measure the specific Lifeline provisions designed to enhance enrollment as set forth at section 3019(f) of Chapter 30, the tracking reports are necessary to monitor customer participation.106 The OCA further submits that the continued reporting of Lifeline tracking data is necessary for the Commission, the OCA and other interested parties to monitor the effectiveness of the statutory changes to Lifeline terms, eligibility, and outreach.107
In addition, the OCA submits that the annual Lifeline tracking reports are permitted under section 3015(e)(5) of Chapter 30 in that this report is a universal service report derived from the Commission's 1997 Universal Service Order.108 The OCA points out that the Commission has identified Lifeline as a universal service program since 1997 and categorizing the Lifeline tracking reports as other than universal service reports contradicts established practice and usage.109 Also, the OCA states that the Commission should construe the annual Lifeline tracking reports as permitted under section 3015(e)(5) as universal service reports because OCA opines that the declarations of policy, definitions and Lifeline provisions of Act 183 work together regarding universal service objectives.110 Further, the OCA submits that the annual Lifeline tracking reports be continued so that the Commission can assess its newly-imposed requirements111 and the legislative changes mandated by Act 183.112
The OCA further argues that the Commission can require the annual Lifeline tracking reports requirement pursuant to its section 3015(f) authority. In doing so, the OCA submits that the Commission satisfies the requirements of 3015(f) in that Lifeline service is defined as a discounted rate local service offering.113 The OCA also submits that the Commission is authorized to enforce and monitor rates for Lifeline service to determine whether qualified customers are being charged the appropriate rate for discounted Lifeline service. Further, the OCA points out that the annual Lifeline tracking reports take minimum preparation time on the part of the LECs as stated in the LB & FC Report which satisfies section 3015(f)(2) requirements.114
In the Commission's judgment, both the record in this proceeding and the Lifeline statutory provision in Chapter 30 have highlighted the importance of the Lifeline program.115 As explained by the OCA, the Lifeline tracking report data is essential for the regulatory process, in order to gauge past successes and determine the need for changes going forward.116 Also, BCS notes that this report is the only report available for tracking and monitoring telephone universal service programs in Pennsylvania.117 Six new sections of Chapter 30 address Lifeline service to ensure broader customer notice about the program. Since the Lifeline tracking report is the only currently provided report that allows the Commission to monitor Lifeline programs in Pennsylvania and Chapter 30 seeks to broaden Lifeline enrollment, it appears that the benefits of this report may outweigh the attendant costs.
Accordingly, we find that the Lifeline tracking report is not within the scope of reports listed in section 3015(e) but, at the same time, we shall refer to another proceeding the issue of whether the Lifeline tracking report meets the exception standard in section 3015(f)(1) that would nevertheless allow the Commission to require this report on a permanent basis.118 In the interim, to protect against a gap in our ability to fulfill our statutory duty to monitor Lifeline programs, we shall require LECs to continue the Lifeline tracking report pending the outcome of the 3015(f) proceeding.
11. State Tax Adjustment Surcharge (STAS)
In the Tentative Order, we found that the LECs are required to submit their tariff filings reflecting any changes in state taxes in accordance with our regulations at Sections 69.52--56 and Act 183 at Section 3015(e)(8). Specifically, we concluded that Chapter 30 at section 3015(e)(8) permits an annual state tax adjustment surcharge report, if applicable.
In the LB & FC Report,119 the Commission states that this is a tariff filing on an annual basis or on a per occurrence basis that allows public utilities to adjust its STAS in response to fluctuations in certain taxes for cost recovery of state tax changes. This tariff filing requirement permits all utilities, including LECs, to recover portions of the Capital Stock Tax, Corporate Net Income Tax, Gross Receipts Tax, and Public Utility Realty Tax through a surcharge on rates charged to customers.
The PTA submitted comments indicating that the STAS report should continue in its current form in accordance with our regulations.120 PTA also recommended no changes to this filing requirement at the time of the LB & FC Report.
Therefore, we affirm our determination in our Tentative Order that the LECs will continue to submit the annual state tax adjustment surcharge report as required by section 69.52--56 of our regulations and in accordance with Chapter 30 at section 3015(e)(8).
12. Physical and Cyber Security Planning Self-Certification
In the Tentative Order, the Commission remained committed to its proposed final rulemaking121 regarding the LECs' self-certification of physical and cyber security planning because we found that the public benefit of this cyber security certification outweighs the cost of submitting the one-page form. The Commission also concluded that this cyber security regulation relates directly to the type of service quality standard permitted by Section 3019(b)(2). After the Tentative Order, the Commission's proposed final regulation became effective on June 11, 2005. Therefore, this reporting requirement is presently required by the LECs.
As stated in the LB & FC Report, this reporting requirement applies to all utilities, including LECs, to provide information concerning the development and maintenance of security and emergency response plans. The Commission is requesting that all utilities certify on an annual basis that the companies have developed and maintained written physical, cyber security, emergency response, and business continuity plans to protect the Commonwealth's infrastructure and maintain safe, continuous and reliable utility service.122
At the time the Commission was finalizing this regulation, PTA informed the Commission that it does not oppose the Commission's proposed final rulemaking regarding the LECs' self-certification of physical and cyber security planning.123 No other comments were received concerning this reporting requirement. Therefore, this reporting requirement remains in place as required in June 2005.
13. State Certification of Universal Service Support
The Commission, in its Tentative Order, continued to suspend the state certification of universal service support reporting requirement under the conditions articulated in the Commission's June 11, 2004 Order.124 As noted in our Tentative Order, this reporting requirement was suspended by the Commission unless certain conditions occurred concerning the membership of the Pennsylvania Independent Telecommunications Coalition (Coalition), the disaggregated study areas of the PTA members, or in the E-911 status of the counties in which the PTA members serve.125 Also, we concluded, based upon our review of the provisions of Act 183, that the Commission is granted independent state authority to require universal service information from Pennsylvania LECs as set forth in section 3015(e)(5).
In the LB & FC Report,126 the Commission indicated that this requirement is dictated by federal regulation which requires state commissions to certify to the Federal Communications Commission (FCC) and the Universal Service Administrative Company (USAC) that rural telecommunications carriers in Pennsylvania will use any federal high cost support received only for the provision, maintenance, and upgrading of the facilities and services eligible for support.127 In order to meet this federal mandate, the Commission requires rural telecommunications carriers to submit affidavits and supporting data certifying that high cost support monies are being spent as intended by the Telecommunications Act of 1996. The PTA's position, at the time of the LB & FC Report, was to eliminate the certification as a routine annual report.
The OCA filed comments addressing this reporting requirement. The OCA indicated that it is concerned that the Commission no longer gathers data to make certain that federal universal service funds are properly used.128 The OCA submits that its concern is amplified by the recent FCC decision to expand reporting requirements for ETCs so that they use high-cost universal service support for its intended purposes.129 The OCA points out that the FCC will apply its expanded reporting requirements to Pennsylvania ETCs that are not jurisdictional to the PUC. The OCA submits that the PUC should apply these same reporting requirements for jurisdictional ETCs.130
Based upon our review of Act 183 and federal regulations, we are unable to eliminate this reporting requirement since it is subject to federal regulation. Therefore, we affirm our decision in the Tentative Order and continue to suspend this reporting requirement under the conditions articulated by the Commission's June 11, 2004 Order.
14. Annual Price Stability Mechanism
In its Tentative Order, the Commission determined that Act 183 allows LECs to file amended NMPs that include updated network modernization plans and changes to their productivity offset.131 In making that determination, we concluded that the LECs need to submit revenue and inflation information of the type specified in this report to support any rate changes that may be permitted by a LEC's alternative form of regulation. Therefore, in order for the Commission to review and allow implementation of any subsequent rate changes to protected service, we found that the annual price stability mechanism report is required by and necessary to the Commission's duties and powers under Act 183.
In addition, the Commission found that the information contained in this report is necessary in order to properly assess LECs their correct share of contributions to the various broadband funds established in the statute.132 Further, we concluded that the information is needed to calculate any potential refunds if a particular LEC has not met its NMP commitments.133
The LB & FC Report noted that the Commission requires the LECs with alternative forms of regulation to file annually the allowable changes in revenues from non-competitive telecommunications services. This filing is required by previous Commission Orders approving individual company Chapter 30 plans and the Commission's January 2004 Policy Statement.134 The purpose is to calculate the LECs' change in revenues as permitted by its alternative form of regulation and to reflect those changes in accompanying tariff supplements in accordance with each company's Chapter 30 plan.135 The PTA recommended that no changes should be made to this reporting requirement at the time of the LB & FC Report.136
No comments were received addressing this reporting requirement. Upon review of this matter, we believe that this filing requirement should be continued for the following reasons as articulated in our Tentative Order. Thus, the Commission affirms its determination in the Tentative Order and requires the annual price stability mechanism report to be filed so that the Commission can fulfill its statutory duties and powers under Act 183.
15. Interest Rate on Deposits
In the Tentative Order, the Commission found that the interest rate on deposits report137 is no longer needed as a separate filing with the Commission. Therefore, we concluded that this reporting requirement should be eliminated for telecommunications carriers only through a rulemaking proceeding.
In the LB & FC Report, the Commission stated that the purpose of the report is to compare customer deposits taken for the current year with that of prior years. PTA indicated in the LB & FC Report that information on customer deposits is filed at Schedule 25 of the annual financial report.138 PTA's position was that this reporting requirement is no longer needed.
No comments were submitted addressing this reporting requirement. In reviewing Act 183 and our regulations, we affirm our decision in the Tentative Order that this reporting requirement is no longer needed as a separate filing with the Commission. Therefore, we conclude that staff shall immediately initiate a rulemaking proceeding to eliminate the interest rate on deposit requirements as required by our regulation at 52 Pa. Code § 64.41 for telecommunications carriers only. Since no comments were received, we rescind our Order at Docket No. P-00981357 in accordance with section 703(g) of the Public Utility Code.139
16. Quarterly Slamming Reports
In its Tentative Order, the Commission determined that LECs are no longer required to file long distance slamming reports. Since the FCC is responsible for administering and enforcing its slamming liability rules at 47 C.F.R. §§ 64.1140--1180 for interexchange carriers, the Commission found that there is no public need to require reporting in this area.
However, the Commission determined, in the Tentative Order, that information documenting the occurrence of local slamming140 remains vital to monitoring the quality of local telephone service, particularly the quality of customer service and consumer protection. The Commission concluded that section 3015 (e)(4) allows the Commission to require information regarding customer service to be filed in an annual service report so that the Commission can fulfill its statutory duties of service quality and consumer protection.
The filing of quarterly slamming reports with the Commission is required by our regulation at 52 Pa. Code § 64.23(b)(7) and Commission Order.141 Waivers of this requirement have been granted to ILECs having fewer than 50,000 access lines.142 All LECs regardless of access line counts must retain records of customer allegations of slamming for three years.143 In the LB & FC Report, the Commission indicated that the purpose of this report is to provide the Commission with data to monitor local and long distance slamming complaints received by ILECs with 50,000 or more residential accounts and CLECs.144 Companies maintain records and submit a quarterly report of all customer complaints made about slamming.145
Several comments were filed concerning this reporting requirement. BCS indicates that the Commission should continue to require all LECs with more than 50,000 access lines to file a report that addresses local slamming only.146 BCS recommends that the report be limited to an annual filing containing the following three items: the name of the company that slammed the LEC's customer, the slamming company's CIAC code, and the number of local slamming complaints the LEC has received.147
The PTA submits that legislative references to particular reports are properly interpreted as references to the reports that existed at the time that Act 183 was passed. The PTA specifically indicates that the use of the singular in the phrase ''annual service report'' means that it cannot be reasonably expanded to incorporate other reports that are not listed such as slamming and cramming.148 Also, the PTA interprets the statute to limit the language in section 3015(e)(9) to apply only to the bona fide retail request report and not to any other report in the list at section 3015(e).149 The PTA argues that the fact that the Commission's authority to determine the form of a report is limited to the bona fide retail request report highlights the strict limits intended by the General Assembly concerning the LECs reporting requirements. Further, the PTA submits that the quarterly slamming reports for local slamming do not relate to rates or rate setting and, therefore, the Commission can not require this report in accordance with section 3015(f)(1).150
MCI agrees with PTA that the General Assembly recognized the elimination of the reporting requirements which includes the quarterly slamming report as an unnecessary report.151 MCI submits that both the long distance and local slamming reports should be eliminated because it requires one LEC to report the alleged misbehavior of another LEC.152 MCI believes this requirement forces LECs to determine whether a slamming allegation is valid and this situation is problematic in a competitive environment.153
The OCA does not object to eliminating long distance slamming reports as recommended in the Commission's Tentative Order.154 However, the OCA requests that the Commission indicate in its final order that long distance slamming continues to be a violation of section 1501 of the Public Utility Code and may be enforced by the Commission in a future case.155
In reviewing the comments submitted in this docket and the provisions of Act 183, the Commission affirms it determination that LECs are no longer required to report long distance slamming. As stated previously, since the Federal Communications Commission (FCC) is responsible for administering and enforcing its slamming liability rules at 47 C.F.R. §§ 64.1140--1180 for interexchange carriers, there is no public need for the Commission to require reporting in this area.
Also, we agree with the participants that urged the Commission to eliminate the local slamming report. Although the Commission clearly retains the authority at section 3019(b)(2) to address service standards and consumer protection, we find that the local slamming report should be eliminated. However, we determine that incidents of local slamming should be maintained by the LECs for a minimum of three years as required by our regulations at section 64.23(b)(7). In addition, in the event that the Commission requests slamming information, we find that the LECs continue to be required to furnish such information to the Commission upon request in accordance with section 505 of Title 66. Further, we determine that the Commission maintains the ability to inspect the records of utilities as deemed necessary in accordance with section 506 of Title 66. In consideration of our authority to gain information regarding local slamming when necessary, we determine that the LECs no longer are required to file local slamming reports.
Therefore, the Commission will immediately initiate a rulemaking to revise its regulations to eliminate long distance and local slamming complaints as required by our regulations at section 64.23(b)(7). As set forth in the Tentative Order, the waiver of the quarterly report filing will remain in effect until such time as regulations revised in accordance with this discussion receive final regulatory approval.156
17. Quarterly Cramming Reports
In the Tentative Order, we concluded that the quarterly cramming reports should be discontinued because the Commission does not have jurisdiction over the entities that are primarily responsible for cramming.157 Therefore, in our Tentative Order, we directed staff to immediately initiate a rulemaking to revise section 64.23(a)(6) to eliminate this reporting requirement. In addition, the Commission waived the filing of cramming reports until such time as our revised regulations receive final regulatory approval.
In the LB & FC Report, the Commission stated that our regulations at section 64.23(a)(6)158 required cramming reports to be filed on a quarterly basis by LECs.159 All LECs regardless of access line counts must retain records of customer complaints alleging cramming for three years. The purpose of these quarterly reports is to provide the Commission with data to monitor cramming complaints received by ILECs with 50,000 or more residential accounts and CLECs.160
The PTA and OCA filed comments concerning this reporting requirement. Although the PTA states that OCA's comments fall outside of the scope of this proceeding, the PTA concurs with the OCA that the Commission continues to regulate LEC and IXC cramming with the caveat that the Commission's jurisdiction is limited to intrastate cramming charges on LEC bills.161 Also, the PTA, at the time of the LB & FC Report, opposed this requirement as it does not believe that its members should be burdened with reporting IXC misbehavior. The PTA argued that there are other means by which the Commission can obtain this information to monitor the frequency in which these incidents occur in order to identify trends involving specific IXCs.162
The OCA does not object to the elimination of the cramming report but submits that the Commission retains jurisdiction over IXC and non-IXC carriers' billing actions concerning cramming.163 The OCA clarifies that the Commission's regulations at section 64.23(a) apply to any cramming charges that appear on a LEC bill. Also, the OCA emphasizes that the Commission retains jurisdiction over many of the bills provided to Pennsylvania customers on which cramming charges from IXCs or non-IXC carriers may appear. The OCA relies on sections 3018(b)(3) and 3019(b)(2) to reach its conclusion that the Commission retains jurisdiction over LEC and IXC cramming and may continue to eliminate these charges from a LEC's bill.164
Upon further review of Act 183, we agree with the OCA that the Commission retains jurisdiction over cramming charges that appear on LEC bills by IXC or non-IXC carriers. Chapter 30 at section 3018(b) clearly retains the Commission's authority to regulate the ordering, installation, restoration and disconnection of interexchange service to customers. In addition, section 3018(d) also provides authority to the Commission to resolve complaints regarding the quality of IXC service.165 Further, we agree with the PTA and the OCA that the Commission retains additional authority under section 3019(b)(2) of Chapter 30 to review and revise quality of service standards addressing the ordering, installation, suspension, termination and restoration of any telecommunications service.166
However, upon our review of Act 183, we continue to believe that we do not retain jurisdiction over many of the entities that may cram charges on LECs bills to customers. Because of this determination, we conclude that the quarterly cramming reporting requirement can be eliminated consistent with the discussion in our Tentative Order.
18. Accident Reports and Service Outage Reports
In the Tentative Order, the Commission determined that the accident and service outage reporting requirements should receive additional comment to determine their necessity. At the same time, we found that these reporting requirements are not listed among the annual and other periodic reporting requirements listed in Section 3015(e). However, based on the provisions at sections 3019(b)(2) and (b)(3), we determined that Act 183 retains the Commission's authority to review and establish requirements relative to service quality for the safety and reliability of telecommunications services and consumer protection.167 In addition, the Commission concluded that we are granted the authority in Section 1501 of the Title 66168 to ensure that every public utility furnishes and maintains adequate, efficient, safe and reasonable service and facilities.
The reports, as required by the Commission's regulations at section 63.11 and section 1508 of Title 66,169 require all public utilities, including LECs, to file reports following an accident resulting in the death of a person or an occurrence of an unusual nature. The purpose of the report is to have information provided to the Commission so that it can monitor serious accidents involving facilities or operations of all public utilities.170 At the time of the LB & FC report, the PTA indicated that accident reports are only required on a per incident basis and stated that no changes in this reporting requirement are necessary.171
In addition, the Commission's regulations at section 67.1 requires all public utilities, including LECs, to report service outages when 2,500 or 5 percent, whichever is less, of a public utility's customers have an unscheduled service interruption in a single accident for six or more projected consecutive hours.172 The Commission reviews the service outage reports to ensure that all necessary steps were taken in the utility's restoration efforts and to monitor the level of service outages occurring in the state.173 The PTA indicated in the LB & FC Report that no changes to this reporting requirement should be made.174
Comments were filed in this docket by interested participants concerning accident and service outage reports. FUS explains that the Commission has developed an electronic form to report accidents that are required whenever injury or death occur involving utility property, on a per occurrence basis.175 FUS indicates that this report is required by statute at section 1508 of Title 66 and, thus, cannot be waived by the Commission. In addition, FUS concludes that the General Assembly has not eliminated accident reports as a reporting requirement because section 1508 of Title 66 has not been superseded by Chapter 30 at 3019(h).176
Regarding the service outage reports, FUS indicates that this report is required by section 67.1 of our regulations to implement our statutory duty of ensuring that utility service ''shall be reasonably continuous and without unreasonable interruptions or delay'' in accordance with section 1501 of Title 66.177 Again, FUS points out that section 1501 has not been superseded by Chapter 30 at 3019(h). In addition, FUS submits that the service outage reports are required to implement the provisions of section 3019(b)(2) of Chapter 30 since the Commission retains the authority to review and revise standards addressing safety, adequacy, and reliability of service.178 FUS further explains that the purpose of the service outage reporting requirement is to provide the utility with an opportunity to initially explain the circumstances surrounding an outage of larger magnitude so that the Commission can determine whether the incident warrants enforcement action under section 1501.179
The PTA submits that accident reports and service outage reports are no longer required because they are not specified in section 3015(e) of Chapter 30.180 In addition, these two reports cannot be requested by the Commission under section 3015(f)(1)(i) because they do not address rates. Further, the PTA submits that the Commission cannot require accident and service outage reports under section 3015(f)(1)(ii) because subpart (i) and (ii) operate together.181 The PTA thus concludes that the accident reports and service outage reports may not be required by the Commission and must be discontinued.182
In addition, the PTA disagrees with FUS' conclusions that certain provisions of Title 66 are not superseded by Act 183. Rather, the PTA submits that Act 183 is clear at section 3019(h) in that the statute supersedes ''any conflicting provisions of this title or other laws of this Commonwealth.''183 The PTA concludes that accident and service outage reporting can no longer be maintained because of the above-mentioned provisions of Chapter 30.
The OCA submits that section 1501 of Title 66 permits the Commission to request utilities to provide notice of widespread and prolonged service failures in order that the Commission knows whether a particular utility is providing reasonably continuous service.184 The OCA submits that elimination of this requirement for service outage reports would present a large danger to public safety which is a result the General Assembly could not have intended. The OCA submits that the Commission can comply with section 3015(f) of Chapter 30 because the threat to public safety that would result from eliminating the service outage reporting requirement clearly outweighs the LECs expense and time to prepare the required information.185 However, the OCA comments that the Commission is correct in that section 3019(b)(2) provides the Commission authority to seek information necessary to facilitate the review and revision of service standards including those involving safety, adequacy and reliability.186
In the Commission's judgment, the information contained in the accident reports and service outage reports, filed on a per incident basis, is important to the Commission's duty to ensure reasonable, adequate and reliable utility service for the benefit of consumers in accordance with section 1501 of Title 66 and our regulations at sections 63.11 and 67.1. The Commission receives this information from every public utility, including telephone companies, and the information is vital in an emergency situation to allow the Commission to respond effectively. Since obtaining timely and current information regarding serious service outages and accidents relates directly to our ability and statutory duty to monitor the quality of service provided by LECs, it appears that the benefits of this report may outweigh the attendant costs.187
Accordingly, we find that the accident and service outage reports are not within the scope of reports listed in section 3015(e) but, at the same time, we shall refer to another proceeding the issue of whether these reports, filed on a per incident basis, meet the exception standard in section 3015(f)(1) that would nevertheless allow the Commission to require these reports on a permanent basis.188 In the interim, to protect against a gap in our ability to fulfill our statutory duty to ensure safe and reliable service to the public, we shall require the LECs to continue to file, on a per incident basis, the accident and service outage reports pending the outcome of the 3015(f) proceeding.
19. Service Surveillance Exception Reports
In our Tentative Order, we found that the service quality exception reports are reflective of and are permitted by our statutory obligation to mandate that public utilities provide safe, adequate and reliable public utility service in accordance with Act 183 and sections 308(d), 331(b) and 1501 of Title 66. Nevertheless, the Commission determined that the necessity of this reporting requirement will be further examined in the context of Petition of the Consumer Advocate for Rulemaking to amend 52 Pa. Code Chapter 63 pending at Docket No. P-00021985.189
The Commission's regulations at 52 Pa. Code § 63.55 require ILECs and CLECs to file service surveillance exception reports when the companies' performance fails to meet minimal performance standards set forth in subchapter E (relating to telephone quality service standards).190 The report is required to be filed only if a company's performance fails to meet minimal standards for three consecutive months191 and the report apprises the Commission of corrective steps the company will take to remedy the situation.192 The report allows the Commission to monitor the LECs on-going performance and to take necessary corrective action.193 Further, we note that the service surveillance exception report is not a recurring report and therefore differs from the type of annual and other periodic reports addressed in section 3015(e).
MCI filed comments recommending that this reporting requirement be eliminated because it is considered an annual service report and it is not necessary in the present competitive telecommunications market place.194 MCI indicates that Chapters 63 and 64 of the Pennsylvania Code were written to monitor and enforce compliance with service quality levels when customers had no choice in telecommunications providers.195 On the other hand, the PTA stated in the LB & FC Report that the purpose of the report is to identify service performance issues and the subsequent resolution of particular issues.196 The PTA did not object to filing these service quality exception reports.197
Although comments were filed addressing this reporting requirement, we affirm our decision in the Tentative Order to further examine this regulation and its necessity in the context of the Petition of the Consumer Advocate for Rulemaking to amend 52 Pa. Code Chapter 63 pending at Docket No. P-00021985.
20. Traffic Usage Studies
In the Tentative Order, we concluded that the biennial filing of the traffic usage studies should continue to be waived while the Commission examines the EAS Task Force's recommendations presently pending before us. However, in the interim, we determined that the Commission's Administrative Law Judges have the discretion to require that traffic usage studies, if needed, be performed on a case by case basis in any pending complaint proceedings addressing EAS issues. Further, we noted that, once the Commission has concluded its work on the EAS Task Force's recommendations at Docket No. M-00031703, we will address whether there is a continuing need for this requirement and any appropriate revisions to our regulations.
As indicated in the LB & FC Report, the Commission's regulations at section 63.72 require all LECs to conduct interexchange toll usage studies to measure the average calling frequency between contiguous exchanges and between exchanges having a toll rate center within 16 miles.198 The Commission's regulations require that the traffic usage studies be done every two years. Presently, traffic usage studies are required on a case by case basis and are used during an Extended Area Service (EAS) complaint proceeding.
At the present time, the filing of this report on a routine biennial basis by all LECs has been waived. In June 1999, the Commission suspended the requirement to file biennial reports and directed that further evaluation be undertaken regarding the usefulness of the traffic studies.199 Subsequently, the Commission established an EAS Task Force200 to determine how to make traffic studies more reflective of the realities existing in the current market place. The PTA participated in the Commission's EAS Task Force and recommended that the existing regulations and traffic usage studies be eliminated.201
MCI submitted comments concerning the traffic usage studies. MCI recommends that all regulations associated with EAS should be eliminated which would obviate the need for traffic usage studies.202 No other comments were filed addressing this reporting requirement.
Based upon our review of section 3015(e) of Chapter 30, the Act does not specifically list that traffic usage studies have to be filed by the LECs. Second, we note that our current regulation at section 63.72 pertaining to biennial traffic usage studies has been waived since 1999 and the current regulations have been examined in the Commission's EAS Task Force. Thus, we conclude that the biennial filing of the traffic usage studies continue to be waived at this time while the Commission examines the EAS Task Force's recommendations presently pending before us.
21. Service Life Study Report
In our Tentative Order, the Commission determined that the list of reports permitted by Act 183 does not include a separate service life study report of the type required by section 73.5 of our regulations. We also concluded that this reporting requirement should be waived and staff commence a rulemaking proceeding to eliminate the regulation. In addition, we concluded that each LEC remains obligated to file service life study information in the form specified by section 73.5 of our regulations as part of the NMP biennial report consistent with sections 3014(f)(1) and 3015(e)(1).
In the LB & FC Report, the Commission states that it requires telephone utilities providing telephone service with over 50,000 access lines to file service life study reports triennially to reflect estimates for each depreciable group of utility plant used in determining annual depreciation expense.203 Currently, this reporting requirement applies to the eight largest ILECs204 but has been waived since 2001.205 The Commission indicated in the LB & FC Report that depreciation expense is a major item in determining rates of unbundled network elements of ILECs that are leased to CLECs. This report also provides detailed support for depreciation and plant information contained in each company's annual financial and depreciation reports.
The PTA indicated in the LB & FC Report that the service life study report should be waived during the time period that a telecommunications carrier has a Chapter 30 plan in effect. The PTA also indicated that a permanent waiver should be granted to all carriers with existing Chapter 30 plans.206 No other comments were submitted at this docket.
Upon our review of Act 183 at section 3015(e), the list of reports does not include a separate service life study report of the type required by section 73.5 of our regulations. In addition, this reporting requirement has been waived since 2001. Therefore, we shall waive this filing requirement as it pertains to general filing and reporting obligations, and staff will immediately commence a rulemaking proceeding to eliminate the regulation.
At the same time, we note that sections 3014(f)(1) and 3015(e)(1) continue to require the filing of biennial reports in the detail and form required by the Commission as of July 1, 2004,207 unless the Commission reduces such reporting requirements. The Commission's reporting requirements for biennial updates currently includes a requirement to file service life study reports in the form specified by section 73.5. Therefore, each LEC remains obligated to file this information with its NMP biennial report consistent with sections 3014(f)(1) and 3015(e)(1).
22. Capital Investment Plan Report
In our Tentative Order, the Commission determined that the list of reports permitted by Chapter 30 does not include a separate capital investment plan report of the type required by section 73.7 of our regulations.208 We also concluded that this reporting requirement should be waived and staff should commence a rulemaking proceeding to eliminate the regulation. In addition, we concluded that each LEC remains obligated to file a capital investment plan report in the form specified by section 73.7 of our regulations as part of the NMP biennial report consistent with sections 3014(f)(1) and 3015(e)(1).
Our regulations at section 73.7 require telephone utilities with over 50,000 access lines to file a capital investment plan report which provides an overview of plans for major project expansion, modification, or other alteration of current and proposed facilities.209 The purpose of this report is to document the companies' plans for future plant investment so that any imprudent plant expenditures can be detected. The Commission indicated in the LB & FC Report that this reporting requirement provides information regarding investment in the Commonwealth infrastructure and reviewed in conjunction with the utilities NMPs.210 Currently, this reporting requirement applies to the eight largest ILECs211 but has been waived since 2001.212
The PTA favored in the LB & FC Report a permanent waiver to all LECs with Chapter 30 plans.213 No other comments were submitted concerning this reporting requirement.
Upon our review of Act 183 at section 3015(e), the list of reports does not include a capital investment plan report of the type required by section 73.7 of our regulations. In addition, this reporting requirement has been waived since 2001. Therefore, we shall waive this filing requirement as it pertains to general filing and reporting obligations, and staff will immediately commence a rulemaking proceeding to eliminate the regulation.
At the same time, we note that Sections 3014(f)(1) and 3015(e)(1) continue to require the filing of biennial reports in the detail and form required by the Commission as of July 1, 2004,214 unless the Commission reduces such reporting requirements. The Commission's reporting requirements for biennial updates currently includes a requirement to file capital investment plan reports in the form specified by section 73.7. Indeed, the specific information contained in such capital investment plan reports will be critical to the Commission's ability to evaluate compliance with broadband deployment commitments. Therefore, each LEC remains obligated to file this information as part of its NMP biennial report consistent with Sections 3014(f)(1) and 3015(e)(1).
23. Service Records
In our Tentative Order, we concluded that the obligation to keep internal service quality records at section 63.22 of our regulations will continue. At the same time, we determined that the retention of LECs' service records, including the specific nature of the records to be maintained, should be addressed in Petition for Appeal from Action of Staff filed by the Pennsylvania Telephone Association, Docket No. M-00031772 (filed January 9, 2004) that is presently pending before us. Also, we noted in the Tentative Order that section 63.22 is not a general filing or reporting requirement; rather, it is a regulation that directs each LEC to keep adequate internal records regarding tests and inspections, service complaints and trouble reports, and service interruptions.215
The LB & FC Report discussed service records, particularly the requirement at section 63.22(c) that such records be filed with the Commission when a request is made to examine such records.216 The Commission indicated in the LB & FC Report that the purpose of the record keeping provision is to ensure that utilities keep sufficient records of tests and inspections of facilities, service complaints and trouble reports, service interruptions affecting 300 or more customers and the location and description of its plant. The records are available to the Commission on request and allow the Commission to verify whether proper tests and inspections are conducted and service complaints are addressed. These records are necessary to verify that adequate, efficient, safe and reliable service is being provided to the public.217
MCI submitted comments regarding this reporting requirement.218 MCI does not object to handling this reporting requirement in a separate proceeding as we concluded in our Tentative Order. However, MCI requests that the Commission should permit other interested parties to join in the Petition for Appeal from Action of Staff filed by the Pennsylvania Telephone Association, Docket No. M-00031772. To do so, MCI requests that the Commission provide notice to all regulated telecommunications providers to file comments on any changes to the regulations addressed in that docket.
No other interested participant filed comments in this docket. However, in the LB & FC Report, the PTA indicated that ILECs must keep records in accordance with the Commission's regulations and that an ILEC must maintain the records at its offices and provide them to the Commission upon request.219 The PTA did not oppose any changes to the requirement of maintaining service records for inspection by the Commission. However, in the LB & FC Report, the PTA did oppose a request made by the OCA under section 63.22 (c) to obtain access to these service records. PTA argued that the only reports that must be made available to the OCA are those that may be made available to the public, the standard service surveillance level reports as previously discussed in Section 19, supra. The PTA does not object to disclosing the standard service surveillance level reports to OCA.220
In terms of Chapter 30's required reports at section 3015(e) and additional Commission authority at section 3019(b)(2), section 63.22 is not a general filing or reporting requirement. As stated previously, section 63.22 is a regulation directing each LEC to keep adequate internal records regarding tests and inspections, service complaints and trouble reports, and service interruptions. Because of the nature of this regulation, we determine that it is not inherent to the reporting requirements of Chapter 30 at section 3015(e). At this time, we find that the obligation to keep internal service quality records at section 63.22 of our regulations will continue until we dispose of the matter in the pending Petition for Appeal from Action of Staff filed by the Pennsylvania Telephone Association at Docket No. M-00031772.
24. Affiliated Interest Agreement
In the Tentative Order, we determined that the LECs are required to continue to file their affiliated interest agreements in accordance with sections 2101 and 2102 of Title 66 and Act 183. Also, we found that, although affiliated interest agreements are not listed on the reports to be filed by LECs at Section 3015(e), section 3019(b)(1) requires the LECs to file affiliated interest and affiliated transaction agreements unless such agreements involve services declared competitive. In addition, we determined that section 3019(b)(1) provides that the filings shall constitute notice to the Commission only and shall not require approval by the Commission.
In the LB & FC Report, the Commission indicated that affiliated interest agreements are reviewed to ensure that all public utilities comply with the statute to ensure that there is no self-dealing by the utility. As prescribed by Title 66 at sections 2101 and 2102,221 the filing of affiliated interest agreements applies to all public utilities that enter into a contract or arrangement with an affiliate to provide service or purchase or lease of any property.
No comments were received concerning this reporting requirement. However, the PTA noted in the LB & FC Report that this filing notifies the Commission of affiliated interest transactions and suggested no changes in the reporting requirement.222
We affirm our determinations as stated in the Tentative Order. In reviewing Chapter 21 of the Public Utility Code in conjunction with Act 183, we find that section 3019(b)(1) requires the LECs to file affiliated interest and affiliated transaction agreements unless such agreements involve services declared competitive. In addition, section 3019(b)(1) provides that the filings shall constitute notice to the Commission only and shall not require approval by the Commission. Therefore, the LECs continue to be required to file the agreements in accordance with Section 2101 and 2102 of Title 66 and Act 183 for notice only and not approval purposes.
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90 66 Pa.C.S. § 3015(e)(6).
91 Id. and 52 Pa. Code § 69.153.
92 LB & FC Report at 16.
93 PTA May 3, 2005 Comments at 6.
94 Joint Petition of Nextlink PA, Inc., Senator Vincent J. Fumo, Senator Roger Madigan, Senator Mary Jo White, et al, for Adoption of Partial Settlement Resolving Telecommunications Issues, Docket Nos. P-00991648 and P-00991649 (Order entered February 21, 2003).
95 Verizon North Inc. and Verizon Pennsylvania Inc.
96 The LECs affected are Alltel, Comcast, Commonwealth Telephone Company, MCI Inc., and United Telephone Company.
97 BCS May 3, 2005 Comments at 2-3.
98 BCS May 3, 2005 Comments at 5.
99 Id. at 6.
100 Id.
101 PTA May 31, 2005 Comments at 7.
102 PTA May 3, 2005 Comments at 12-13.
103 PTA May 31, 2005 Comments at 5-6.
104 Id.
105 LB & FC Report at 17.
106 OCA May 3, 2005 Comments at 2.
107 Id. at 4.
108 Id. at 2-3 and OCA June 2, 2005 Comments at 2-3. Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications Services in the Commonwealth, Docket No. I-00940035 (Order on Reconsideration entered July 31, 1997).
109 OCA June 2, 2005 Comments at 4-5.
110 Id. at 5-6.
111 Lifeline and Link-Up, Docket No. M-00051871 (Order entered May 23, 2005). The Commission is requiring that companies verify customers' continuing eligibility in Lifeline/Link-Up programs on an annual basis using the FCC's regulations as a guideline for reporting this information.
112 OCA June 2, 2005 Comments at 9.
113 66 Pa.C.S. § 3012 (emphasis added). OCA June 2, 2005 Comments at 9-10.
114 OCA June 2, 2005 Comments at 11 and LB & FC Report at 17.
115 66 Pa.C.S. § 3019(f).
116 OCA May 3, 2005 Comments at 4.
117 BCS May 3, 2005 Comments at 6.
118 Section 3015(f) Review Regarding the Lifeline Tracking Report, Accident Report and Service Outage Report, Docket No. M-00051900 (Order adopted September 9, 2005).
119 LB & FC Report at 18.
120 PTA May 3, 2005 Comments at 7.
121 Physical and Cybersecurity Program Self Certification Requirements for Public Utilities, Docket No. M-00031717 (Order entered December 9, 2003) and Public Utility Security Planning and Readiness, Docket No. L-00040166 (Order entered October 5, 2004). On March 3, 2005, the Commission approved a revised final rulemaking concerning public utility security planning and readiness. See Revised Final Rulemaking Order Re: Public Utility Security Planning and Readiness, Docket No. L-00040166 (Order entered March 10, 2005), 35 Pa.B. 3299 (June 11, 2005).
122 LB & FC Report at 19. The Commission has committed to treating the information on a confidential basis.
123 PTA Letter to Commission Secretary McNulty dated February 11, 2005.
124 Petition of the Pennsylvania Independent Telco Coalition for Designation as Eligible Telecommunications Carriers for both State and Federal Purposes, Docket No. P-00971264 (Order entered June 11, 2004).
125 If there is any significant change in these areas, the Commission noted that the PTA is required to notify the Commission of the change within 30 days of its occurrence.
126 LB & FC Report at 20.
127 47 C.F.R. § 54.314.
128 OCA May 3, 2005 Comments at 5.
129 In the Matter of Federal-State Joint Board on Universal Service, CC Docket No. 96-45 (Order released March 17, 2005).
130 OCA May 3, 2005 Comments at 6. The OCA also submits similar comments during the May 11, 2005 Facilitated Discussion. Tr. 35-36.
131 66 Pa.C.S. at §§ 3014 and 3015.
132 Id. at § 3015.
133 Id. at § 3015(a)(2).
134 Sunset of Chapter 30, Title 66 of the Public Utility Code, Docket No. M-00041786 (Order adopted January 16, 2004).
135 LB & FC Report at 21.
136 Id.
137 52 Pa. Code § 64.41. Petition of the Pennsylvania Telephone Association for Waiver of the Pennsylvania Public Utility Commission's Regulation at 52 Pa. Code § 64.41, Docket No. P-00981327 (Order entered November 5, 1998).
138 LB & FC Report at 23.
139 66 Pa.C.S. § 703(g).
140 Slamming is an unauthorized change to the customer's long distance carrier. 52 Pa. Code § 64.23 (b).
141 Proposed Rulemaking and Final Interim Guidelines for Standardizing Local Exchange Company Responses to Customer Contacts Alleging Unauthorized Changes to Customers' Telecommunications Service Providers and Unauthorized Charges to Customers' Bills, Docket Nos. L-00990140 and M-00981063 (Order entered January 14, 1999).
142 Petition of Pa. Telephone Association for Waiver of Requirements at 52 Pa. Code § 64.23(a) (6) and (b)(7), Docket No. P-00032050 (Order entered September 18, 2003).
143 The 3-year record keeping requirement appears at 52 Pa. Code § 64.23(b)(7).
144 LB & FC Report at 25.
145 Also, BCS compares this information with the number of informal complaints filed to determine whether the LECs are handling these complaints according to the Commission's regulations at Section 63.23(b). Additionally, the Office of Trial Staff may use this information to prosecute a LEC for non-compliance. This information may also be used by the Commission's Office of Communications to support its consumer education efforts.
146 BCS May 3, 2005 Comments at 2.
147 Id.
148 PTA May 3, 2005 Comments at 4 and PTA May 31, 2005 Comments at 6.
149 Id. at 4-5. Section 3015(e)(9) includes the following language: ''[t]hese reports shall be submitted in the form determined by the commission.''
150 Id. at 12-13.
151 MCI May 3, 2005 Comments at 2. Tr. at 36.
152 MCI May 31, 2005 Comments at 7.
153 Id.
154 OCA May 3, 2005 Comments at 6.
155 Id. at 7. Tr. at 36. The PTA agrees with the OCA's statement that long distance slamming continues to be a violation of the Public Utility Code.
156 Note that the 3-year maintenance requirement for all records of customer allegations of slamming in section 64.23(b)(7) is a record keeping requirement and not a reporting requirement and as such, remains in effect for all LECs pending further regulatory action.
157 Cramming is unauthorized charges added to the customer's bill. 52 Pa. Code § 64.23(a). The three year record keeping requirement at 52 Pa. Code § 64.23(a)(6) is a record keeping requirement and not a reporting requirement and as such, remains in effect for all LECs pending further regulatory action.
158 52 Pa. Code § 64.23(a)(6). Waivers of this requirement have been granted to ILECs having fewer than 50,000 access lines.
159 LB & FC Report at 26.
160 BCS compares this information with the number of informal complaints to determine whether the LECs are handling these complaints according to the regulations at Section 63.23(a). BCS may forward this information about problem companies to the Attorney General's Office for investigation. BCS also provides this information as needed to the Commission's Communications Office to support its consumer education program.
161 PTA May 31, 2005 Comments at 6-7.
162 LB & FC Report at 26-27.
163 OCA May 3, 2005 Comments at 7-8. Tr. at 36.
164 Id. at 8-9.
165 66 Pa.C.S. § 3018(b) and (d).
166 66 Pa.C.S. § 3019(b)(2).
167 Id.
168 66 Pa.C.S. § 1501.
169 52 Pa. Code § 63.11 and 66 Pa.C.S. § 1508. Specifically, § 1508 provides that every public utility give immediate notice to the Commission of any accident in or about, or in connection with, the operation of its service and facilities, when a person has been killed or injured.
170 LB & FC Report at 28.
171 Id.
172 52 Pa. Code § 67.1.
173 LB & FC Report at 32.
174 Id.
175 FUS May 3, 2005 Comments at 1. Tr. at 41.
176 Id. Section 3019(h) repeals several sections of Chapter 13 of Title 66 but section 1508 is not repealed by Chapter 30. Therefore, FUS states that this incident driven reporting is expected by the Legislature to be continued, otherwise it would have been specifically highlighted as superseded. FUS May 3, 2005 Comments at 1. Tr. at 41.
177 FUS May 3, 2005 Comments at 1.
178 Tr. at 41.
179 Id. at 1-2.
180 PTA May 3, 2005 Comments at 12.
181 66 Pa.C.S. § 3015(f)(1)(i) and (ii). Notwithstanding any other provision of this title to the contrary, no report, statement, filing or other document or information, except as specified in subsection(e), shall be required of any local exchange telecommunications company unless the commission, upon notice to the affected local exchange telecommunications company and an opportunity to be heard, has first made specific written findings supporting conclusions in an entered order that: (i) The report is necessary to ensure that the local exchange telecommunications company is charging rates that are in compliance with this chapter and its effective alternative form of regulation. (ii) The benefits of the report substantially outweigh the attendant expense and administrative time and effort required of the local exchange company to prepare it.
182 Id. at 12-13. PTA May 31, 2005 Comments at 3-4.
183 66 Pa.C.S. § 3019(h). PTA May 31, 2005 Comments at 3.
184 OCA May 3, 2005 Comments at 12-13.
185 Id. at 14.
186 Id. at 15.
187 We note here that the per incident accident report is a 1-page form and that the service outage report is a 2-page form, both available on the Commission's website. In years that no accidents or serious service outages occur, no report would be required.
188 Section 3015(f) Review Regarding the Lifeline Tracking Report, Accident Report and Service Outage Report, Docket No. M-00051900 (Order adopted September 9, 2005).
189 The petition was published Nov. 2, 2002, at 32 Pa.B. 5416 for interested parties to comment.
190 LB & FC Report at 29.
191 52 Pa. Code § 63.55(a).
192 A waiver exempting a company from complying with any of the subchapter's requirements may be granted by the Commission where unreasonable hardship is demonstrated. 52 Pa. Code § 63.53(e).
193 LB & FC Report at 29.
194 MCI May 31, 2005 Comments at 7.
195 MCI May 31, 2005 Comments at 7-8.
196 Id.
197 Id.
198 52 Pa. Code § 63.72.
199 Formal Investigation to Examine and Establish Updated Principles and Policies for Telecommunications Services in the Commonwealth Report and Recommendation of the Universal Service Task Force, Docket No. I-00940035 (Order entered June 30, 1999).
200 Report and Recommendation of the Extended Area Service (EAS) Task Force, Secretarial Letter issued April 1, 2003 at Docket No. M-00031703.
201 LB & FC Report at 31.
202 MCI May 31, 2005 Comments at 8.
203 LB & FC Report at 33.
204 The affected ILECs are as follows: Alltel, Commonwealth Telephone Company, Conestoga Telephone Company, D&E Communications Inc., North Pittsburgh Telephone Company, United Telephone Company, Verizon North Inc., and Verizon Pennsylvania Inc.
205 Petition of Alltel Pennsylvania, Inc., Commonwealth Telephone Co., Conestoga Telephone and Telegraph Co., D&E Telephone Co. and North Pittsburgh Telephone Co. for a Temporary Waiver of Service Life Study Reporting Requirement Pursuant to 52 Pa. Code § 73.5(b), Docket No. P-00011885 (Order entered June 21, 2001).
206 Id.
207 Implementation of Chapter 30 of the Public Utility Code: Reporting Requirements for Biennial Updates of Network Modernization Plans Filed Pursuant to 66 Pa.C.S. § 3003(b)(6), Docket No. M-00930441 (Order entered May 17, 1999).
208 52 Pa. Code § 73.7.
209 LB & FC Report at 34.
210 Id.
211 The affected ILECs are as follows: Alltel, Commonwealth Telephone Company, Conestoga Telephone Company, D&E Telephone Co., North Pittsburgh Telephone Company, United Telephone Company, Verizon North Inc., and Verizon Pennsylvania Inc.
212 Petition of Alltel Pennsylvania, Inc., Commonwealth Telephone Co., Conestoga Telephone and Telegraph Co., D&E Telephone Co. and North Pittsburgh Telephone Co. for a Temporary Waiver of the Capital Investment Plan Reporting Requirement Pursuant to 52 Pa. Code § 73.7, Docket No. P-00011917 (Order entered December 5, 2001).
213 LB & FC Report at 34.
214 Implementation of Chapter 30 of the Public Utility Code: Reporting Requirements for Biennial Updates of Network Modernization Plans Filed Pursuant to 66 Pa.C.S. § 3003(b)(6), Docket No. M-00930441(Order entered May 17, 1999).
215 52 Pa. Code § 63.22.
216 LB & FC Report at 35.
217 Id.
218 MCI May 31, 2005 Comments at 2-3.
219 Id.
220 Id.
221 66 Pa.C.S. §§ 2101 and 2102.
222 LB & FC Report at 36.
[Continued from previous Web Page] 25. NMP Biennial Reports
In the Tentative Order, the Commission found that section 3014(f)(1) continues to allow biennial NMP reports to be filed in the form and detail required by the Commission as of July 1, 2004. We also determined that section 3014(f)(2) permits the Commission to require ''submission of further information to support the accuracy of or to seek an explanation of the [NMP] reports.''223 In addition, we found that Chapter 30 permits the filing of NMP reports at section 3015(e)(1) and therefore determined that no revision is needed to the Commission's 2004 Policy Statement or 1999 Order requiring biennial NMP reports.
In the LB & FC Report, the Commission explained the filing of biennial NMP reports as required by our 2004 Policy Statement224 and 1999 Order225 so that the Commission is provided the necessary details of each LEC's progress toward meeting its network modernization objectives. The NMP reports are unique to the specific Chapter 30 petition filed by a LEC and subsequently approved by the Commission.226
At the time of the LB & FC Report, the PTA described the biennial NMP reports as demonstrating a LEC's commitment to accelerate the modernization of its network by providing the carrier's current and projected deployment of its network and the LEC's penetration levels by type of service, including depreciation and capitalization information. The PTA also noted that its member companies are abiding by the current reporting requirements developed by the Commission.227 No other comments were submitted in this docket.
Therefore, we affirm our determinations in the Tentative Order. In reviewing Chapter 30, we find that the General Assembly, at Section 3014(f)(1), continues to allow biennial NMP reports to be filed in the form and detail required by the Commission as of July 1, 2004. In addition, the Legislature at Section 3014(f)(2) permits the Commission to require ''submission of further information to support the accuracy of or to seek an explanation of the [NMP] reports.''228 Further, Act 183 permits the filing of NMP report at Section 3015(e)(1). Thus, we find that no revision is needed to the Commission's 2004 Policy Statement or 1999 Order requiring biennial NMP reports in light of Act 183's passage.
26. Collocation Report
In the Tentative Order, the Commission concluded that no action was needed to eliminate this reporting requirement since the Commission no longer requires this reporting requirement as set forth in its February 14, 2005 Secretarial Letter to all ILECs and CLECs.229 Originally, this report was required to inform the Commission about the quality of Verizon Pennsylvania Inc.'s collocation provisioning to CLECs.230 In the LB & FC Report, the Commission indicated that this reporting requirement applies to CLECs or ILECs that collocate switches in Verizon Pennsylvania's central offices.
No comments were filed regarding this reporting requirement. Therefore, we affirm the determination in our Tentative Order concerning collocation reports and conclude no further action is necessary.
Based on our review of the comments submitted in this docket, Chapter 30 and the LB & FC report, the Commission directs the continuation, consolidation and/or elimination of the reporting requirements presently imposed on LECs operating in Pennsylvania, Therefore,
It Is Ordered That:
1. The annual financial report as required by 52 Pa. Code § 63.36 and pursuant to § 3015(e)(2) shall be filed by October 31, 2005 in the format agreed to by the Commission's Bureau of Fixed Utility Services and the Pennsylvania Telephone Association in the August 9, 2005 stipulation as Appendix A filed at this docket. This format shall apply to all incumbent and competitive LECs and shall be filed by October 31, 2005 as discussed herein. In subsequent years, the filing date for the LECs annual financial report shall be in accordance with the Commission's regulations at section 63.36.
2. Law Bureau shall immediately initiate rulemaking proceedings to eliminate the following reports for telecommunications carriers only:
* Financial Earnings Report, 52 Pa. Code § 71.3
* Annual Depreciation Report, 52 Pa. Code § 73.3
* Interest On Deposits Report, 52 Pa. Code § 64.41
* Service Life Study Report, 52 Pa. Code § 73.5
* Capital Investment Plan Report, 52 Pa. Code § 73.7
* Residential Account Information on a quarterly basis as required by 52 Pa. Code § 64.201(b)
* Quarterly Cramming Reports, 52 Pa. Code § 64.23 (a)(6)
* Quarterly Slamming Report, 52 Pa. Code § 64.23 for long distance and local slamming
* Collocation Report, Docket Nos. R-00994697 and R-00994697C0001.
These regulations are hereby waived pending completion of these rulemakings. In terms of the Financial Earnings Report at Docket No. M-00041857, the filing date of March 31, 2005 continues to be waived as prescribed in the Commission's March 11, 2005 Secretarial Letter.
3. To the extent the Interest on Deposits report at Docket No. P-00981357, the Collocation Report at Docket No. R-00994697, and a streamlined Financial Earnings Report are required by Commission orders, the Commission hereby rescinds those orders since no comments to the contrary were filed at this docket.
4. In accordance with Act 183, the following reports, filings and obligations shall remain in place:
* Network Modernization Implementation Plan pursuant to § 3015(e)(1) and § 3014(f)
* Annual Financial Report pursuant to § 3015(e)(2) as subject to the August 9, 2005 stipulation and Appendix A filed at this docket
* Annual Tracking Report of Telecommunications Relay Service Surcharges as required by 52 Pa. Code § 69.513(a) and pursuant to § 3015(e)(3)
* Residential Account Information as required by 52 Pa. Code § 64.201 and pursuant to § 3015(e)(4) on an annual basis
* Universal Service Fund Contributions as required by 52 Pa. Code § 63.165; and Universal Service Monthly Remittance Worksheet as required by 52 Pa. Code § 63.169 and pursuant to § 3015(e)(5)
* Annual Access Line Report as required by 52 Pa. Code § 69.513(b) and pursuant to § 3015(e)(6)
* Assessment Report, Annual Assessment Bill and Supplemental Assessment Bill as required by 66 Pa.C.S. § 510(b) and pursuant to § 3015(e)(7)
* STAS Report as required by 52 Pa. Code § 69.52--56 and pursuant to § 3015(e)(8)
* Physical Cyber Security Planning Self Certification pursuant to Revised Final Rulemaking Order Re: Public Utility Security Planning and Readiness, Docket No. L-00040166 as published in the Pennsylvania Bulletin on June 11, 2005
* Chapter 30 Annual Price Stability Mechanism Report required by Docket No. M-00041786 and pursuant to §§ 3014 and 3015
* Affiliated Interest Agreements as required by 66 Pa.C.S. §§ 2101, 2012 and pursuant to 3019(b)(1) only for notice and not approval purposes.
5. In accordance with Act 183, the Lifeline Tracking Report as required by Docket No. P-00991648, the Accident Reports, per occurrence, as required by 52 Pa. Code § 63.11 and 66 Pa.C.S. § 1508, and the Service Outage Reports, per occurrence, as required by 52 Pa. Code § 67.1 shall remain in place subject to the outcome of the proceeding described in this order at Docket No. M-00051900.
6. The following reports, filings and obligations shall be waived:
* Traffic Usage Studies as required by 52 Pa. Code § 63.72 pending the Commission's rulemaking at Docket No. M-00031703
* State Certification of USF Support of Eligible Telecommunications Carriers per 47 C.F.R. § 54.314 suspended pursuant to Petition of the Pennsylvania Independent Telco Coalition for Designation as Eligible Telecommunications Carriers for both State and Federal Purposes, Docket No. P-00971264 (Order entered June 11, 2004).
7. In accordance with Act 183, following reports, filings and obligations shall remain in place subject to the outcome of the proceedings described in this order:
* Annual Report of Certified Interexchange Transporter as required by 52 Pa. Code § 63.107 and as addressed in Proposed Rulemaking for Revision of Chapter 63 of Title 52 of the Pennsylvania Code Pertaining to Regulation of Interexchange Telecommunications Carrier and Service, Docket No. L-00050170 (Order entered March 29, 2005)
* Standard Service Surveillance Level Report, per occurrence, as required by 52 Pa. Code § 63.53 and as addressed in Petition of the Consumer Advocate for Rulemaking to amend 52 Pa. Code Chapter 63 pending at Docket No. P-00021985
* Service Records, per occurrence, as required by 52 Pa. Code § 63.22(c) and as addressed in Petition for Appeal from Action of Staff filed by the Pennsylvania Telephone Association pending at Docket No. M-00031772.
8. In accordance with 66 Pa.C.S. § 3014(f) (1), LECs shall continue to file biennial NMP update reports in the form and detail required by the Commission as of July 1, 2004.
9. A copy of this final implementation order be served on all incumbent and competitive local exchange telecommunications carriers, the Office of Consumer Advocate, the Office of Small Business Advocate, and the Pennsylvania Telephone Association. Notice of this order shall be published in the Pennsylvania Bulletin.
10. All waivers of the Commission's regulations as granted in this final implementation order shall be effective upon the entry date of this order and will remain in effect until further action by the Commission.
JAMES J. MCNULTY,
SecretaryStatement of Commissioner Bill Shane Public Meeting September 9, 2005; SEPT-2005-L-0078* Final Implementation Order Regarding PUC Filing and Reporting Requirements on Local Exchange Carriers; M-00041857 By our action today, we are eliminating, modifying and/or waiving certain reporting requirements in accordance with Act 183 and, thereby, relieving local exchange companies of, in some cases, a great burden. I commend the parties and the staff for their diligence in this effort but I would be remiss if I did not, at the same time, call to task the Pennsylvania Telephone Association for its assertion that accident reports and service outage reports are no longer required to be filed with this Commission. In this day of competition and deregulation, there is nothing more important than the Commission insuring that the service offered by all utilities is both safe and reliable. Accident and service outage reporting is critical to the Commission's ability to meet this mandate. The comments by the PTA that we may not require these reports and that they must be discontinued is quite disconcerting and, while I might be understanding of a utility's desire to control costs, I am not willing to compromise on safety and reliability and neither should any utility.
Statement of Commissioner Terrance J. Fitzpatrick Public Meeting September 9, 2005; SEPT-2005-L-0078* Final Implementation Order Regarding PUC Filing and Reporting Requirements on Local Exchange Carriers; M-00041857 This matter involves the Final Implementation Order arising from the Commission's review of its filing requirements for local exchange carriers following the passage of Act 183 of 2004 (Act), 66 Pa.C.S. § 3011 et seq. In the Act, the Legislature limited the reporting that the Commission may require from local exchange carriers (LECs or carriers) to a list of nine specific reports. 66 Pa.C.S. § 3015(e). The purpose of this proceeding is to determine how the Commission's current reporting requirements must be changed in light of the new legislation, and to initiate changes to the Commission's regulations where appropriate.
The Law Bureau recommends that the Commission adopt an Order that concludes that the Commission may continue to require, among others, the following current reports: the lifeline tracking report, the quarterly local slamming report (but now on an annual basis as part of the ''annual service report''), accident reports, and outage reports. However, the Commission today is adopting the Motion of Commissioner Pizzingrilli, which 1) concludes that the quarterly local slamming report shall no longer be required because it is not listed in Section 3015(e), and 2) tentatively concludes that the lifeline tracking report, accident report, and outage report should continue to be required under Section 3015(f), described below. With regard to the continuation of the latter three reports, the Motion calls for issuance of a tentative order that would allow the parties to file comments on whether these reports may be continued under Section 3015(f). For reasons set forth below, I will vote in support of the Motion.
First, for reasons set forth in this Statement, I agree that none of the four reports in question may be required under Section 3015(e). Second, with regard to the conclusion that three of the reports may be required under Section 3015(f), I will support this aspect of the Motion because it is not final and allows the parties to file further comments. I have my doubts about whether these reports may be required under Section 3015(f)--specifically, whether the reports are related to determining that the rates of the LEC comply with applicable law. However, while some of the parties addressed subsection (f) in passing, we have not received detailed legal arguments on the proper interpretation of that language.231 Accordingly, I will reserve final judgment until after reviewing the additional comments.
The remainder of this Statement explains my reasons for concluding that the four reports may not be required under Section 3015(e).
The Commission's task in this proceeding is to interpret the new law. The first principle of statutory interpretation is that the goal must be to ''ascertain and effectuate the intention of the General Assembly.'' Section 3 of the Statutory Construction Act, 1 Pa.C.S. § 1921(a). The Statutory Construction Act further provides that ''[w]hen the words of a statute are clear and free from all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit.'' 1 Pa.C.S. § 1921(b). However, if the words of a statute are ambiguous, the intention of the General Assembly may be ascertained by considering, among other things:
(1) The occasion and necessity for the statute.
(2) The circumstances under which it was enacted.
(3) The mischief to be remedied.
(4) The object to be attained.
* * *
(6) The consequences of a particular interpretation.
1 Pa.C.S. § 1921(c).
Prior to discussing the individual reports, a general discussion of the historical background and purpose of Section 3015(e) is necessary. This section provides that the Commission filing requirements for LECs ''shall be limited'' to the nine specific reports that are listed. It is obvious that the overall legislative intent behind Section 3015(e) was to restrict the reports that the Commission could require of LECs. Using the language of the Statutory Construction Act, over-regulation--in the form of requiring too many reports--was the ''mischief to be remedied'' here. 1 Pa.C.S. § 1921(c)(3). Stated differently, the ''object to be attained'' was to restrict the discretion of the Commission to require reports to move toward the goal of easing regulation of LECs. 1 Pa.C.S. § 1921(c)(4).
In addition, the language of Section 3015(e) must be considered in light of its historical context. Prior to the passage of the Act, there was a public debate over the Commission's reporting requirements for LECs. The carriers argued, via the Pennsylvania Telephone Association (PTA), that they had not received the regulatory relief to which they were entitled under the former Chapter 30 law. To evaluate this claim, the House of Representatives adopted House Resolution No. 786 in 2004. This Resolution required the Legislative Budget and Finance Committee (LBFC) to review the Commission's reporting requirements to determine whether all of the reports being required by the Commission were needed. The LBFC issued its report in November 2004.232 The LBFC report listed and discussed each of the reports individually and summarized the positions of the Commission and the PTA on each one. The LBFC report contained five general recommendations, but did not take a position on the need for individual reports (pp. S-3, S-4).
Lifeline Tracking Report
Staff recommends that the Commission continue to require LECs to file lifeline tracking reports. First, the draft order states that the reports are needed so that the Commission can monitor compliance with the lifeline provisions of the new law. See, 66 Pa.C.S. § 3019. Second, the draft order finds that lifeline tracking reports are a form of ''universal service reports'' that the Commission is authorized to require under Section 3015(e)(5). Neither argument is persuasive.
As to the need for the report, this Commission's perception of need cannot be elevated above that of the General Assembly. Western Pa. Water Co. v. Pa. Public Utility Commission, 10 Pa. Commw. 533, 311 A.2d 370 (Pa. Commw. 1973) (The Commission is a creature of the legislative process, and it has only those powers, duties, responsibilities and jurisdiction given to it by the Legislature). The lifeline tracking report was recognized as a separate report prior to passage of Act 183--for example, it was listed and discussed separately in the LBFC report (p. 17).233 Since the General Assembly declined to list the lifeline tracking report as one of the reports that may be continued, it must be assumed that the General Assembly was not convinced that the report was needed.
Third, the term ''universal service reports'' cannot be interpreted to include the lifeline tracking report. While I disagree with the PTA argument that the term ''universal service reports'' is clear on its face,234 the canons of statutory construction preclude interpreting the term to include the lifeline tracking report. Again, the overall thrust of Section 3015(e) was to restrict the reports the Commission may require from LECs. The General Assembly declined to list the lifeline tracking report as a report that could be continued. Given the ''mischief to be remedied'' by Section 3015(e), as well as ''the object to be attained,'' and ''the circumstances under which it was enacted,'' this omission can only be interpreted as reflecting a legislative intent to discontinue the report. See, 1 Pa.C.S. § 1921(c).
The argument that the lifeline tracking report may be continued as one of the ''universal service reports'' permitted in the Act is tantamount to slipping the report in through the back door (via ''interpretation''), even though the General Assembly barred it from coming in through the front door (by leaving it off the list of permissible reports). This broad interpretation of the term ''universal service reports'' flies in the face of the legislative intent underlying Section 3015(e)--to restrict the discretion of the Commission to require reports.
Slamming Reports
Staff recommends that the Commission require local slamming reports, on an annual rather than quarterly basis, as part of the ''annual service report'' that the Commission may require under Section 3015(e)(4). I disagree.
The analysis of this issue is similar to that described above in the discussion of the lifeline tracking report. The General Assembly declined to include the quarterly slamming report in the list of reports that may be continued even though it was recognized as one of the Commission's existing reporting requirements prior to the passage of Act 183. (LBFC report, p. 25) Under the circumstances, this can only be interpreted as reflecting a legislative intent to discontinue the report.
In addition, staff concludes that the ''annual service report'' under Section 3015(e)(4) logically represents residential account information collected per 52 Pa. Code § 64.201 ''Annual LEC Reporting Requirements.'' The § 64.201 report compiles information, for example, on average bills for basic and toll service, service suspensions, service terminations, and uncollectibles. Incorporating a slamming report into the ''annual service report'' frustrates the legislative intent to restrict reporting requirements.
Accident Reports and Service Outage Reports
Staff concludes that the Commission may continue to require accident reports and service outage reports, despite the fact that these reports are not included in the list of permissible reports contained in Section 3015(e). The rationale for this conclusion is, first, that subsections 3019(b)(2) and (3) retain the Commission's authority to regulate service quality and consumer protection. Second, the draft order states that Section 3015(e) relates only to ''general filing requirements,'' which the order interprets as applying solely to annual and quarterly reports. Since accident and outage reports are only filed on a per incident basis, they allegedly do not fall under ''general filing requirements.''
This conclusion is inconsistent with both the letter and spirit of Act 183. With regard to the Commission's authority under Section 3019, that section provides specifically that the Commission's authority to regulate service quality is ''subject to the provisions of Section 3015(e).'' 66 Pa.C.S. § 3019(b)(3). Since accident and outage reports are not contained in the list of permissible reports under Section 3015(e), it is clear that Section 3019 does not provide a basis for requiring the reports.
Moreover, the fact that the Commission retains general authority to regulate service quality is not a sufficient basis to require these reports. Presumably, any report the Commission has ever required is related in some way to the Commission's regulatory authority. Accordingly, accepting this argument would negate the legislative restrictions in Section 3015(e) on the Commission's authority to require reports.
Finally, the argument that accident and outage reports may be required because they do not constitute ''general filing requirements'' under Section 3015(e) is unpersuasive. The contention that ''general filing requirements'' applies only to annual and quarterly reports does not have any basis in the Act. These reporting requirements are ''general'' in the ordinary sense of the word since all LECs have been required to file them when accidents or outages occur that fall within the scope of the regulations. The fact that such events, and therefore the reports, are intermittent does not mean that the reports do not fall under ''general filing requirements.''
This interpretation is supported by the LBFC report, which separated the reporting requirements of LECs into ''Annual reports'' and ''Other required reports.'' (LBFC report, pp. i-ii). The LBFC report did not suggest that only annual reports fall under ''general filing requirements.'' Moreover, the fact that the LBFC report discussed both annual and other reports demonstrates that the scope of the controversy included both types of reports.
Conclusion
For the reasons set forth above, I conclude that the four reports at issue may not be required under Section 3015(e). As to whether three of the reports may be required under Section 3015(f), while I have my doubts, I will withhold final judgment pending review of additional comments.
[Pa.B. Doc. No. 05-1962. Filed for public inspection October 21, 2005, 9:00 a.m.] _______
223 Act 183 at §§ 3014(f)(1) and (2).
224 Sunset of Chapter 30, Title 66 of the Public Utility Code, Docket No. M-00041786 (Order adopted January 16, 2004).
225 Implementation of Chapter 30 of the Public Utility Code: Reporting Requirements for Biennial Updates of Network Modernization Plans Filed Pursuant to 66 Pa.C.S. § 3003(b)(6), Docket No. M-00930441 (Order entered May 17, 1999).
226 LB & FC Report at 37.
227 Id.
228 66 Pa.C.S. §§ 3014(f)(1) and (2).
229 Secretarial Letter to All Incumbent Local Exchange Carriers and All Competitive Local Exchange Carriers, dated February 14, 2005 at Docket Nos. R-00994697 and R-00994697C0001.
230 Bell-Atlantic Supplement to Pa. P.U.C. No. 216 and Pa. P.U.C. 218 to become effective July 27, 1999, Regarding the FCC's New Requirements on Incumbent Local Exchange Carriers for the Provision of Colocation Service Used for Exchange Access and Mandated Compliance via State Tariffs, SGATS and/or Individual Interconnection Agreements, Docket No. R-00994697 (Order entered September 4, 2001).
231 For example, must the Commission find that both (i) and (ii) of Section 3015(f) are satisfied?
232 PUC Filing and Reporting Requirements on Local Exchange Carriers, House Legislative Budget & Finance Committee, November 2004 (LBFC report).
233 Prior to the LBFC report, PTA had taken the position that the lifeline tracking report could be continued. This is reflected in the discussion in the LBFC report. However, this is a moot point since Act 183 has now resolved the dispute over what reports may be required.
234 Of the reports described is Section 3015(e)(1)--(9), all but two appear to refer to specific reports currently required by the Commission. However, it appears that ''annual service report'' (no. 5) and ''universal service reports'' (no. 4) are generic descriptions of reports rather than references to particular reports that are currently required.
