[52 PA. CODE CHS. 63, 64, 71 AND 73] [36 Pa.B. 1897] [L-00050176]
PUC Filing and Reporting Requirements on Local Exchange Carriers The Pennsylvania Public Utility Commission, on December 15, 2005, adopted a proposed rulemaking order which eliminates certain filing and reporting requirements for local exchange carriers (LEC).
Executive Summary
By Order entered on January 3, 2006, at Docket No. L-00050176, the Commission adopted a Proposed Rulemaking Order to amend §§ 63.11, 64.23(a) and (b), 64.41, 64.201(a) and (b), 71.3(b), 73.3(a) and (b), 73.5(b) and 73.7(b). The purpose of the proposed rulemaking is to eliminate or modify the current language of the previously-mentioned regulations to reflect the Commission's action in its Final Implementation Order in PUC Filing and Reporting Requirements on Local Exchange Carriers at Docket No. M-00041857 entered October 5, 2005. At Docket No. M-00041857, the Commission determined that certain LEC reporting requirements should be maintained, streamlined or eliminated in accordance with the provisions of Chapter 30 of the Public Utility Code, 66 Pa.C.S. Chapter 30, and the submitted comments in the docket. In addition, the proposed deletion of § 63.11 is in accordance with the Commission's action in its Final Order in Section 3015(f) Review Regarding the Lifeline Tracking Report, Accident Report and Service Outage Report at Docket No. M-00051900 entered December 30, 2005.
Under the current language of § 63.11, a public utility providing telecommunications service is required to file an accident report involving its facilities or operations resulting in injury or death to a person or public utility employee. The proposed amendment to § 63.11 is to eliminate this regulation since this report can no longer be required in accordance with sections 3015(e) and (f)(1) of the Public Utility Code, 66 Pa.C.S. § 3015(e) and (f)(1).
Also, § 64.23 provides that LECs report instances of unauthorized charges and changes to customers' bills known as cramming and slamming. The Commission's regulation in § 64.41 also requires LECs to pay interest on customers' deposits and, subsequently, report the paid interest rate to the Commission. In addition, § 64.201(a) and (b) require LECs to file residential account information reflecting billing and collection practices including customer disputes on a quarterly or annual basis depending upon the size of the LEC. In Chapter 64, the Commission proposes to change the regulations to require LECs to maintain records documenting instances of slamming and cramming but to eliminate the quarterly requirement to report the unauthorized activity to the Commission. Also, the Commission is modifying the interest rate to be paid on customers' deposits to reflect current practice by the telecommunications industry. The Commission further proposes to reduce the filing of residential account information to an annual reporting requirement for all LECs regardless of the number of residential accounts that the companies serve.
In Chapter 71 of the Commission's regulations, LECs with annual intraState gross revenues in excess of $10 million currently are required to file financial reports on an annual basis. The Commission is proposing to delete § 71.3 because Chapter 30 of the Public Utility Code does not permit the filing of a separate financial earnings report of the type required by this regulation.
In Chapter 73 of the Commission's regulation, LECs are required to submit an annual depreciation report (§ 73.3), a triennial service life study report (§ 73.5) and a triennial capital investment plan report (§ 73.7). The Commission proposes to eliminate all of these filings because Chapter 30 of the Public Utility Code no longer permits the reporting of this type of information as required by these regulations.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 11, 2006, the Commission submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate Committees. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Commission, the General Assembly and the Governor of comments, recommendations or objections raised.
Public Meeting held
December 15, 2005Commissioners Present: Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson; Bill Shane; Kim Pizzingrilli; Terrance J. Fitzpatrick
Rulemaking Re: PUC Filing and Reporting Requirements on Local Exchange Carriers; Doc. No. L- 00050176 Proposed Rulemaking Order By the Commission:
On October 5, 2005, the Commission entered a Final Implementation Order1 at Docket No. M-00041857 regarding the filing and reporting requirements for Local Exchange Carriers (LECs) in compliance with the new Chapter 30.2 In that Order, the Commission determined that certain LEC reporting requirements should be maintained, streamlined or eliminated in accordance with the provisions of Chapter 30 and the submitted comments in the matter. Under the October 5, 2005 Final Implementation Order, the Commission formally commences this rulemaking to eliminate certain LEC reports. The Commission seeks comment from all interested parties on these proposed revisions to our regulations, which are found at Annex A of this Order, and any other applicable Commission documents, Orders, Secretarial Letters, etc., referenced in this Order.
Background
In December 2004, the General Assembly enacted Act 183 which 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. 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, 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 under 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).
Chapter 30 also provides for exceptions to this limitation. In particular, section 3015(f)(1) of Chapter 30 provides that ''no report, statement, filing or other document or information, except as specified in subsection (e), shall be required unless the Commission, upon notice to the affected LEC 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 LEC is charging rates that are in compliance with the 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 by the LEC to prepare it.''
Section 3015(f)(2) also provides that nothing should be construed to impede the ability of the Commission to require the submission of further information to support the accuracy or to seek an explanation of the reports in subsection(e). Further, section 3019 retains the Commission's power to seek information necessary to review and revise its quality of service standards and establish customer protection requirements.3
On April 15, 2005, in accordance with the newly-enacted Chapter 30, the Commission entered a Tentative Implementation Order4 directing the continuation, consolidation, and/or elimination of the general filing and reporting requirements presently imposed on LECs operating in Pennsylvania. In its Tentative Order, the Commission sought comments on its initial determinations to maintain, streamline or eliminate certain LEC reports. Upon review of Chapter 30 and the submitted comments, the Commission entered a Final Implementation Order5 on October 5, 2005 determining which LEC reporting requirements should be maintained, streamlined or eliminated. Also, in the Final Implementation Order, the Commission found that the Lifeline tracking reports and the accident and service outage reports are not within the scope of reports listed in section 3015(e). Therefore, the Commission directed that a new proceeding be opened to address the issue of whether these reports can meet the exception standard set forth in section 3015(f)(1).6 In its 3015(f)(1) review, the Commission determined on December 15, 2005 that accident reports are no longer required for telecommunications companies.7
Prior to the enactment of Act 183, in June 2004, the Pennsylvania House of Representatives passed House Resolution 786, that directed the Legislative Budget and Finance Committee (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 (LB & FC Report) entitled PUC Filing and Reporting Requirements on Local Exchange Carriers.8 The LB & FC identified and analyzed the following 30 reports, filings and other documents: 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 Deposit, 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.
This inventory of reports became the framework for the Commission's analysis of current LEC reporting requirements in light of the provisions of the new Chapter 30.
Discussion
Chapter 30 sets forth reporting requirements for LECs. Although various sections of Chapter 30 provide the Commission with the authority to require information from LECs, as stated previously, 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 nine enumerated reports, subject to the previously mentioned exceptions.
Based on these provisions, the Commission, in its Final Implementation Order at Docket No. M-00041857, determined that certain LEC reporting requirements are to be eliminated. The Commission offers for public consideration this proposed rulemaking to eliminate certain reports currently filed by LECs. The reports proposed for elimination include the Financial Earnings Report (52 Pa. Code § 71.3); Annual Depreciation Report (52 Pa. Code § 73.3); Interest Rate on Deposits Report (52 Pa. Code § 64.41 and Order entered November 5, 1998 at Docket No. P-00981357); Service Life Study Report (52 Pa. Code § 73.5); Capital Investment Report (52 Pa. Code § 73.7); Quarterly Cramming Report (52 Pa. Code § 64.23); Quarterly Slamming Report (52 Pa. Code § 64.23) and the Collocation Report.9 In addition, the Commission is proposing to amend its regulations to require the filing of residential account information on an annual basis rather than on a quarterly basis as currently prescribed by § 64.201(b).
In a companion order addressing section 3015(f)(1) of Chapter 30, the Commission also determined that accident reports are no longer required because there is no adequate nexus relating to whether rates are just and reasonable as prescribed by Chapter 30 and Title 66. Accordingly, the Commission found that telecommunications companies do not have to file accident reports as required by our regulations at § 63.11.
1. Financial (Earnings) Report
The Commission's regulations at § 71.310 currently require that certain LECs with annual intrastate gross revenue in excess of $1 million file financial earnings reports. Companies with annual intrastate gross revenue in excess of $1 million but less than $10 million are currently required to file annually. Companies with annual intrastate gross revenue in excess of $10 million must file semiannually. In 2001, the Commission streamlined the reporting requirements for financial earnings information by reducing the filing intervals as described above.11
In its Tentative Implementation Order, the Commission decided to continue to waive the financial earnings report as required in our regulations at § 71.312 as set forth in the March 11, 2005 Secretarial Letter at Docket No. M-00041857. 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 Implementation Order. Further, in accordance with section 703(g) of Title 66,13 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 Commission affirmed in its October 5, 2005 Final Implementation Order that the list of reports permitted by Chapter 30 does not include a separate financial earnings report of the type required by § 71.3 of our regulations. Therefore, the Commission proposes that this regulation be eliminated. On a going-forward basis, the Commission can rely on the income statement data in the annual financial report14 permitted by section 3015(e)(1) to monitor the earnings and financial health of LECs.
2. Annual Depreciation Report
Section 73.315 of the Commission's regulations requires LECs to file an annual depreciation report. This reporting requirement applies to all telecommunications carriers with over 50,000 access lines that have annual gross intrastate operating revenues in excess of $20 million. Currently, eight telecommunications companies are required to file this annual report.16
The Commission determined, in its Tentative Implementation Order, that the annual depreciation report required at § 73.317 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) require the filing of depreciation reports in the form specified by §§ 73.3 and 73.4 with NMP biennial reports. At the same time, the Commission directed staff to determine whether a streamlined form of the information specified in §§ 73.3 and 73.4 can be adequate to verify LEC compliance with its NMP obligations.
In its October 5, 2005 Final Implementation Order, the Commission concluded that the list of reports permitted by Chapter 30 does not include a separate annual depreciation report of the type required by § 73.3 of our regulations. Nevertheless, depreciation information must be submitted in a LEC's NMP biennial report in accordance with section 3014(f)(1)18 in the format required as of July 1, 2004. Because the list of reports permitted by section 3015(e) does not include a separate annual depreciation report and the LECs' NMP reports will include the appropriate annual depreciation information needed to verify the companies' NMP obligations, we propose that the annual depreciation report required by our regulations be eliminated.
3. Interest Rate on Deposits
Section 64.41 of the Commission's regulations19 currently require, that LECs pay interest rates on customer deposits on a yearly basis. This information is required to be reported to the Commission by its 1998 Order at Docket No. P-00981357.20 The purpose of the reporting is to compare customer deposits taken for the current year with that of prior years.
In the Tentative Implementation Order, the Commission found that the interest rate on deposits report is no longer needed as a separate filing with the Commission. Therefore, we concluded that this reporting requirement should be eliminated for telecommunications carriers.
No comments were filed concerning the Commission's tentative determination that the interest rate on deposits report was no longer needed. Therefore, the Commission affirmed its decision in the Final Implementation Order that this reporting requirement is no longer needed as a separate filing with the Commission. The Commission rescinded its Order at Docket No. P-00981357 in accordance with section 703(g) of the Public Utility Code21 to eliminate this reporting requirement.
At this juncture, we propose to modify our regulation at § 64.41 to reflect that the LECs are no longer required to pay an interest rate of 9% per annum on customer deposits. In the Commission's Order at Docket No. P-00981357, we determined that all jurisdictional LECs must calculate interest rates on customer deposits based on the rates of the interest posted for 1-year U.S. Treasury bills for the months of September, October, and November of the previous year. However, this standard, the 1-year Treasury bill, is no longer issued by the United States Treasury Department.22 Therefore, we propose to update § 64.41 of our regulations to incorporate the interest rate for customer deposits as set forth in Chapter 14 of the Public Utility Code.23
4. Service Life Study Report
Section 73.5 of our regulations24 requires telephone utilities providing telephone service with over 50,000 access lines or having gross operating revenues in excess of $20 million per year to file service life study reports triennially to reflect estimates for each depreciable group of utility plant used in determining annual depreciation expense. Currently, this reporting requirement applies to the eight largest incumbent local exchange carriers (ILECs) but has been waived since 2001.25
In our Tentative Implementation Order, the Commission determined that the list of reports permitted by Chapter 30 does not include a separate service life study report of the type required by § 73.5 of our regulations. We also concluded that this reporting requirement should be waived and staff should commence a rulemaking proceeding to eliminate the regulation. In addition, the Commission concluded that each LEC remains obligated to file service life study information in the form specified by § 73.5 of our regulations as part of the NMP biennial report consistent with sections 3014(f)(1) and 3015(e)(1) of Chapter 30.26
In the Commission's Final Implementation Order, we affirmed that, based upon our review of Chapter 30 at section 3015(e), the list of reports did not include a separate service life study report of the type required by § 73.5 of our regulations. In addition, we noted that this reporting requirement has been waived since 2001. At the same time, we noted 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, 2004,27 unless the Commission reduces such reporting requirements.28 Because the list of reports permitted by section 3015(e) does not include a separate service life study report and the LECs' NMP reports will include the appropriate service life information needed to verify the companies' NMP obligations, we propose that the service life study report required by our regulations be eliminated.
5. Capital Investment Plan Report
Section 73.7 of our regulations29 requires a telephone utility having gross intrastate revenues in excess of $20 million per year or in excess of 50,000 access lines to file a capital investment plan report every three years.30 Currently, this requirement applies to the eight largest ILECs but has been waived since 2001.31 The report provides an overview of plans for major project expansion, modification or other alteration of current and proposed facilities.32 This report documents the companies' plans for future plant investment so that any imprudent plant expenditures could be detected. This report provides information regarding investment in the Commonwealth infrastructure and is reviewed in conjunction with the utilities' NMPs.33
In our Tentative Implementation 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 § 73.7 of our regulations. We also concluded that this reporting requirement should be waived and staff should commence a rulemaking proceeding to eliminate the regulation. However, we concluded that each LEC remains obligated to file a capital investment plan report in the form specified by § 73.7 of our regulations as part of the NMP biennial report consistent with sections 3014(f)(1) and 3015(e)(1).
In the Final Implementation Order, the Commission affirmed that the list of reports permitted by Chapter 30 does not include a capital investment plan report of the type required by § 73.7 of our regulations. As stated previously, the Commission noted 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, 2004,34 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 § 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.35 Because the list of reports permitted by section 3015(e) does not include a separate capital investment plan report and the LECs' NMP reports will include the appropriate capital investment information needed to verify the companies' NMP obligations, we propose that the capital investment plan report required by our regulations be eliminated.
6. Quarterly Cramming Reports
The Commission's regulation in § 64.23(a)(6)36 requires LECs to file quarterly cramming reports. The Commission previously granted waivers of this requirement to ILECs having fewer than 50,000 access lines,37 however, all LECs regardless of access line counts must retain records of customer complaints alleging cramming for three years.38 These quarterly reports have provided the Commission with data to monitor cramming complaints received by ILECs with 50,000 or more residential accounts and by CLECs.
In the Tentative Implementation 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.39 Therefore, in our Tentative Order, we directed staff to immediately initiate a rulemaking to revise § 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 our Final Implementation Order, the Commission agreed with comments filed by the Office of Consumer Advocate (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.40 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.41
However, upon our review of Chapter 30, we continue to conclude 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 propose that the quarterly cramming reporting requirement at § 64.23(a)(6) be eliminated consistent with the discussion in our Tentative and Final Implementation Orders.
7. Quarterly Slamming Reports
Quarterly slamming42 reports are required by Commission regulation in § 64.23(b)(7) and Commission order.43 Waivers of this requirement have been granted to ILECs having fewer than 50,000 access lines,44 however, all LECs regardless of access line counts must retain records of customer allegations of slamming for three years.45 In the past, these reports have provided the Commission with data to monitor local and long distance slamming complaints received by ILECs with 50,000 or more residential accounts and CLECs.46
In its Tentative Implementation 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 CFR 64.1140--1180 for interexchange carriers, the Commission found that there is no public need to require reporting in this area. Concurrently, the Commission determined, in the Tentative Order, that information documenting the occurrence of local slamming47 remains vital to monitoring the quality of local telephone service, particularly the quality of customer service and consumer protection. Therefore, 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.
In reviewing the comments submitted and the provisions of Chapter 30, the Commission affirmed in its Final Implementation Order that LECs are no longer required to report long distance slamming under the discussion in that Order. Concerning local slamming, the Commission agreed with the participants that urged the Commission to eliminate the local slamming report. Although the Commission determined that section 3019(b)(2) clearly retains the authority to address service standards and consumer protection, we found that the local slamming report should be eliminated with the caveat that incidents of local slamming should continue to be maintained by the LECs for a minimum of three years as required by our regulations at § 64.23(b)(7). In addition, in the event that the Commission requests slamming information for inspection and review, we ordered that the LECs continue to be required to furnish such information to the Commission upon request in accordance with sections 505 and 506 of Title 66. Therefore, the Commission ordered that a rulemaking be initiated to revise its regulations to eliminate reporting as required by our regulations at § 64.23(b)(7) for long distance and local slamming complaints. The Commission further determined that a 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.
Therefore, the Commission proposes to eliminate the quarterly reporting obligation for both long distance and local slamming as required by our regulations at § 64.23(b)(7). In addition, the Commission initiates this rulemaking to eliminate the LECs' obligation to report incidents of long distance slamming under the discussion in this Order. However, the 3-year maintenance requirement for all records of customer allegations of slamming in § 64.23(b)(7) is a recordkeeping requirement and not a reporting requirement and as such, remains in effect for all LECs pending further regulatory action.
8. Residential Account Information
The Commission's regulation in § 64.201(a) and (b)48 requires 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 March 31 containing information about their residential accounts as prescribed by § 64.201(c)49 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 § 64.201(c) of the regulation.50
In the Tentative Implementation Order, the Commission determined that, in accordance with Chapter 30, the information currently required at § 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).51 The Commission based its tentative conclusion on section 3019(b)(2) of Chapter 30 that 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 regulation in § 64.201(b) that requires 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 § 64.201(b) if no adverse comments were received.
In the Final Implementation Order, the Commission determined that both incumbent and competitive LECs will continue to provide information in accordance with our current regulation in § 64.201 but on an annual basis. Also, the Commission found 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 propose to change the quarterly filings requirement at § 64.201 to annual reporting consistent with the provisions of Chapter 30 and the discussion in our previous orders.
9. Accident Reports
Accident reports, as required by the Commission's regulation in § 63.11 and section 1508 of Title 66,52 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.53
In its Final Order addressing section 3015(f) of Chapter 30, the Commission determined that accident reports do not have a direct nexus to the rates charged by LECs in accordance with Chapter 30 and their alternative forms of regulation sufficient to satisfy section 3015(f)(1)(i). Accordingly, the Commission found that accident reports are no longer required under our regulation in § 63.11 and section 1508 of Title 66.54
Therefore, we propose to eliminate the accident reporting obligation, on a per occurrence basis, for telecommunications companies as required by our regulation in § 63.11.
Conclusion
The Commission seeks comment regarding the proposed changes in our regulations from the telecommunications industry and the statutory advocates, as well as from any other interested member of the public. Interested parties will have 30 days from the publication of this order to file comments. We advise those that will be submitting comments in this proceeding to include specific section references to the proposed regulations. We are committed to completing the revisions to our procedural regulations in a timely fashion and, therefore, absent good cause, no extensions will be granted for the filing of comments. Accordingly, under section 501 of the Public Utility Code, 66 Pa.C.S. § 501, and the act of July 31, 1968 (P. L. 769, No. 240), known as the Commonwealth Documents Law, and regulations promulgated there under at 1 Pa. Code §§ 7.1--7.4, we amend the regulations as previously noted and as set forth in Annex A; Therefore,
It Is Ordered That:
1. A rulemaking proceeding is hereby initiated at this docket to consider the revisions to regulations set forth in Annex A.
2. The Secretary shall submit a copy of this order and Annex A to the Office of Attorney General for preliminary review as to form and legality.
3. The Secretary shall submit a copy of this order and Annex A to the Governor's Budget Office for review of fiscal impact.
4. The Secretary shall submit this order and Annex A for review and comments by the Independent Regulatory Review Commission and the designated Legislative Standing Committees.
5. The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau to be published in the Pennsylvania Bulletin.
6. A copy of this order and Annex A shall be served upon the Office of Consumer Advocate, the Office of Small Business Advocate, the Office of Trial Staff, and upon all jurisdictional local exchange carriers.
7. Interested persons may submit an original and 15 copies of any comments referencing the docket number of the proposed rulemaking within 30 days of publication in the Pennsylvania Bulletin to the Pennsylvania Public Utility Commission, Attn: Secretary, P. O. Box 3265, Harrisburg, PA 17105-3265. One copy of a diskette containing the comments in electronic format should also be submitted. A courtesy copy of written comments shall be served upon the Commission's Law Bureau, ATTN: Assistant Counsel Lois Burns.
8. Comments should include, when appropriate, a numerical reference to the proposed regulations that the comment addresses, any proposed language for revision, and a clear explanation for the recommendation.
9. The contact person for this rulemaking is Lois Burns, Assistant Counsel, Law Bureau, (717) 787-5000. Alternate formats of this document are available to persons with disabilities and may be obtained by contacting Sherri DelBiondo, Regulatory Coordinator, Law Bureau, (717) 772-4579.
JAMES J. MCNULTY,
SecretaryFiscal Note: 57-247. No fiscal impact; (8) recommends adoption.
Annex A TITLE 52. PUBLIC UTILITIES PART I. PUBLIC UTILITY COMMISSION Subpart C. FIXED SERVICE UTILITIES CHAPTER 63. TELEPHONE SERVICE Subchapter B. SERVICES AND FACILITIES § 63.11. [Accident reports] (Reserved).
[(a) General. A public utility shall submit a report of a reportable accident involving the facilities or operations of the public utility in this Commonwealth. The report shall be addressed to the Secretary of the Commission.
(b) Reportable accidents. Reportable accidents are those involving utility facilities or operations which result in one or more of the following circumstances:
(1) The death of a person.
(2) Injury to an employe on duty sufficient to incapacitate him from performing his ordinary duties for a period longer than 3 days.
(3) Injury to a person other than an employe on duty sufficient to incapacitate the injured person from following his customary vocation, or mode of life, for a period of more than 1 day.
(4) An occurrence of an unusual nature, whether or not death or injury of a person results, which apparently will result in a prolonged and serious interruption of normal service.
(c) Telegraphic reports. A report by telephone or telegraph shall be made at once in the event of the occurrence of a reportable accident resulting in the death of a person, or in the event of an occurrence of an unusual nature.
(d) Written reports. A written report shall be made on Form UCTA-8 immediately following the occurrence of a reportable accident as defined in subsection (b). Accidents reportable to the Commission, which reports are also required by the Bureau of Workmen's Compensation, Department of Labor and Industry, may be reported by transmitting a copy of the reports in lieu of a report on Form UCTA-8.]
CHAPTER 64. STANDARDS AND BILLING PRACTICES FOR RESIDENTIAL TELEPHONE SERVICE Subchapter B. PAYMENT AND BILLING STANDARDS § 64.23. Standardizing LEC responses to customer contacts alleging unauthorized charges added to the customer's bill (cramming) and unauthorized changes to the customer's long distance carrier (slamming).
(a) Cramming. Upon contact from a customer alleging that cramming has occurred on the bill rendered to the customer by the LEC, the LEC shall do the following:
* * * * * (6) Maintain for a minimum of 3 years records of all customer complaints of cramming in order to monitor adherence to the terms of the billing contract the LEC has with the service provider or billing agent, or both, relating to cancellation of the contract for excessive cramming complaints. [Submit quarterly reports summarizing the records to the Commission's Office of Trial Staff and Bureau of Consumer Services in a format prescribed by those bureaus.]
(b) Slamming. Upon contact from a customer alleging that slamming has occurred on one or both of the past two bills rendered to the customer by the LEC, regardless of dates of charges, the LEC shall do the following:
* * * * * (7) Maintain for a minimum of 3 years records of all customer allegations of slamming [and submit quarterly reports summarizing the records to the Commission's Office of Trial Staff and Bureau of Consumer Services in a format prescribed by those bureaus].
Subchapter C. CREDIT AND DEPOSIT STANDARDS POLICY § 64.41. Interest.
Interest [at the rate of 9% per annum] calculated under section 202 of the act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. § 202), known to as the Loan Interest and Protection Law, shall be payable on deposits without deductions for taxes thereon. Interest shall be paid annually to the customer or, at the option of either the LEC or the customer, shall be applied to the customer's bill.
Subchapter J. ANNUAL LEC REPORTING REQUIREMENTS § 64.201. Reporting requirements.
(a) [Utilities with less than 50,000 residential accounts.] Annual report. Within 90 days after the end of each calendar year, each LEC with [less than 50,000] residential accounts shall file with the Commission an annual report containing residential account information as listed in subsection [(c)] (b) for the previous calendar year.
(b) [Utilities with more than 50,000 residential accounts. Within 90 days after the end of each of the first 3 quarters of the calendar year, each LEC with 50,000 or more residential accounts shall file with the Commission a quarterly report containing residential account information as listed in subsection (c)(1)--(7) and (11). The LEC shall also file an annual report containing residential account information as listed at subsection (c) within 90 days after the end of the calendar year.
(c)] Elements of periodic reporting. The following [shall] must be included in periodic reporting as required under this section:
* * * * * CHAPTER 71. FINANCIAL REPORTS § 71.3. Filing requirements.
* * * * * (b) [Incumbent local exchange telecommunications utilities with annual intraState gross revenues in excess of $10 million shall file a financial report for the 12-month period ending each June 30 and December 31.
(c)] The following public utilities shall file a financial report for the 12-month period ending each December 31:
* * * * * (2) [Incumbent local exchange telecommunications utilities with annual intraState gross revenues in excess of $1 million but which do not exceed $10 million.
(3)] Gas distribution utilities having annual intraStategross revenues in excess of $1 million but which do not exceed $10 million.
[(4)] (3) * * *
[(d)] (c) * * *
[(e)] (d) * * *
CHAPTER 73. ANNUAL DEPRECIATION REPORTS, SERVICE LIFE STUDIES AND CAPITAL INVESTMENT PLANS § 73.3. Annual depreciation reports.
(a) A public utility providing electric service, gas service or water service which has gross [intrastate] intraState revenues in excess of $20 million per year, except telecommunications interexchange carriers and gas and petroleum transportation pipeline companies, shall file an annual depreciation report with the Office of Special Assistants under this chapter. [Public utilities providing telephone service with over 50,000 access lines or which have gross operating revenues in excess of $20 million per year shall also be required to file an annual depreciation report.]
(b) The due dates for the annual depreciation report are as follows:
(1) Electric, water[, telephone] and gas public utilities reports are due on or before June 30.
* * * * * § 73.5. Service life study report.
* * * * * (b) [A telephone utility having gross intrastate revenues in excess of $20 million per year, except telecommunications interexchange carriers, resellers' of telecommunication services and radio common carriers, shall file a service life study report every 3 years. Public utilities providing telephone service with over 50,000 access lines or having gross operating revenues in excess of $20 million per year shall also be required to file a service life study report. The first service life study report shall be filed with the Office of Special Assistants by August 31, 1998.
(c)] The due dates for the service life study report are as follows:
(1) Electric, water[, telephone] and gas public utilities are due on or before August 31.
* * * * * § 73.7. Capital investment plan report.
* * * * * (b) [A telephone utility having gross intrastate revenues in excess of $20 million per year or access lines in excess of 50,000, except telecommunications interexchange carriers, resellers' of telecommunication services and radio common carriers, shall file a capital investment plan report every 3 years. The first capital investment plan report shall be filed with the Office of Special Assistants by August 31, 1998.
(c)] Thereafter, the capital investment plan report for electric, water[, telephone] and gas public utilities shall be filed with the Office of Special Assistants on or before August 31 of the year in which the report is due.
[(d)] (c) * * *
______
1 PUC Filing and Reporting Requirements on Local Exchange Carriers, Docket No. M-00041857 (Order entered October 5, 2005).
2 66 Pa.C.S. §§ 3011--3019.
3 66 Pa.C.S. §§ 3019(b)(2) and (3).
4 PUC Filing and Reporting Requirements on Local Exchange Carriers, Docket No. M-00041857 (Order entered April 15, 2005).
5 PUC Filing and Reporting Requirements on Local Exchange Carriers, Docket No. M-00041857 (Order entered October 5, 2005).
6 Section 3015(f) Review regarding the Lifeline Tracking Report, Accident Report and Service Outage Report, Docket No. M-00051900 (Order entered October 5, 2005).
7 Section 3015(f) Review regarding the Lifeline Tracking Report, Accident Report and Service Outage Report, Docket No. M-00051900 (Order adopted December 15, 2005).
8 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 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. LB & FC Report at S-3-4.
9 Presently, the collocation report requires ILECs or CLECs that collocate switches in Verizon Pennsylvania Inc.'s central offices to report such activity in accordance with the Commission's September 4, 2001 Order. Bell-Atlantic Supplement to Pa. P.U.C. No. 216 and Pa. P.U.C. No. 218 to become effective July 27, 1999 regarding the FCC's New Requirements on Incumbent Local Exchange Carriers for the Provision of Collocation 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). On February 14, 2005, the Commission eliminated this reporting requirement through a Secretarial Letter to all ILECs and CLECs. In the Final Implementation Order, we affirmed our determination concerning collocation reports and concluded that no further action is necessary. Since there is no current regulation concerning this reporting requirement, the elimination of this reporting requirement is in accordance with section 703(g) of Title 66 as discussed in our Tentative and Final Implementation Orders at Docket No. M-00041857.
10 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.
11 Adequacy and Interpretation of Existing Accounting Procedures and Financial Reporting Regulations for all Telecommunications Carriers, Docket No. L-00010153 (Order entered December 4, 2001).
12 52 Pa. Code § 71.3.
13 66 Pa.C.S. § 703(g).
14 LECs continue to be required to file annual financial reports in accordance with the Commission's regulations at section 63.36. 52 Pa. Code § 63.63. The form of the annual financial report for LECs has been determined by our Final Implementation Order regarding LEC reporting requirements. PUC Filing and Reporting Requirements on Local Exchange Carriers, Docket No. M-00041857 (Order entered October 5, 2005).
15 52 Pa. Code § 73.3.
16 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.
17 52 Pa. Code § 73.3.
18 The Commission notes 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, 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. However, we note that the Commission staff remains obligated to review and explore means to streamline, where appropriate, the annual depreciation information submitted in the LECs' NMP reports.
19 52 Pa. Code § 64.41.
20 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-00981357 (Order entered November 5, 1998).
21 66 Pa.C.S. § 703(g).
22 See www.treas.gov.
23 66 Pa.C.S. § 1404(c)(6). This section states that the interest rate on customer deposits for electric, gas and water utilities is set at the legal rate of interest under section 202 of the act of January 30, 1974 (P. L. 13, No. 6), referred to as the Loan Interest and Protection Law. Currently, this interest rate is approximately 6 percent.
24 52 Pa. Code § 73.5.
25 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 Requirements Pursuant to 52 Pa. Code § 73.5(b), Docket No. P-00011885 (Order entered June 21, 2001).
26 66 Pa.C.S. §§ 3014(f)(1) and 3015(e)(1).
27 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).
28 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. However, we note that the Commission staff remains obligated to review and explore means to streamline, where appropriate, the service life information submitted in the LECs' NMP reports.
29 52 Pa. Code § 73.7.
30 The affected ILECs are as follows: 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.
31 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-000l1917 (Order entered December 5, 2001).
32 LB&FC Report at 34.
33 Id.
34 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).
35 However, as with the annual depreciation and service life information, we note that Commission staff remains obligated to review and develop means to streamline, where appropriate, the capital investment plan information for the LECs' NMP reports.
36 52 Pa. Code § 64.23(a)(6).
37 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).
38 See 52 Pa. Code § 64.23(a)(6).
39 Cramming is unauthorized charges added to the customer's bill. 52 Pa. Code § 64.23(a). The three year record keeping requirement and quarterly reporting requirement to the Commission is set forth at 52 Pa. Code § 64.23(a)(6).
40 66 Pa.C.S. § 3018(b) and (d).
41 66 Pa.C.S. § 3019(b)(2).
42 Slamming is an unauthorized change to the customer's long distance carrier. 52 Pa. Code § 64.23(b).
43 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).
44 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).
45 See 52 Pa. Code § 64.23(b)(7).
46 LB & FC Report at 25.
47 Slamming is an unauthorized change to the customer's long distance carrier. 52 Pa. Code § 64.23 (b).
48 52 Pa. Code §§ 64.201(a) and (b).
49 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.
50 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 LB&FC Report also indicates that this information is used by the Commission for operational audits and measuring residential telecommunications competition. LB&FC Report at 7.
51 66 Pa.C.S. § 3014(e)(4).
52 Pa. Code § 63.11 and 66 Pa.C.S. § 1508. Specifically, section 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.
53 LB & FC Report at 28.
54 52 Pa. Code § 63.11 and 66 Pa.C.S. § 1508. Section 3015(f) Review regarding the Lifeline Tracking Report, Accident Report and Service Outage Report, Docket No. M-00051900 (Order adopted December 15, 2005).
[Pa.B. Doc. No. 06-658. Filed for public inspection April 21, 2006, 9:00 a.m.]
