CORRECTIVE REPRINT
SENATE AMENDED
PRIOR PRINTER'S NOS. 93, 2223 PRINTER'S NO. 2378
(Additional Editing by Information Renaissance, Sept. 16, 1997)
No. 84 Session of 1993
INTRODUCED BY D. R. WRIGHT, STEIGHNER, DeLUCA, STABACK, GORDNER,
LaGROTTA, HALUSKA, TRELLO, HENNESSEY, PISTELLA, KELLER,
ROONEY, COY, LYNCH, HERMAN, CLARK, DALEY, GIGLIOTTI, LAWLESS
AND ITKIN, JANUARY 27, 1993
SENATOR BORTNER, COMMUNICATIONS AND HIGH TECHNOLOGY, IN SENATE,
RE-REPORTED AS AMENDED, JUNE 21, 1993
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, providing for an alternative form of
regulation of telecommunications services; providing
protection for public utility employees who report a
violation or suspected violation of Federal, State or local
law; providing protection for such employees who participate
in investigations, hearings, inquiries or court actions; and
prescribing remedies and penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 30
ALTERNATIVE FORM OF REGULATION
OF TELECOMMUNICATIONS SERVICES
Sec.
3001. Declaration of policy.
3002. Definitions.
3003. Local exchange telecommunications company request for
alternative regulation and network modernization
implementation plan.
3004. Commission review and approval of petition and plan.
3005. Competitive services.
3006. Streamlined form of rate regulation.
3007. Determination of access charges.
3008. Interexchange telecommunications carrier.
3009. Additional powers and duties.
§ 3001. Declaration of policy.
The General Assembly finds and declares that it is the policy
of this Commonwealth to:
(1) Maintain universal telecommunications service at
affordable rates while encouraging the accelerated deployment
of a universally available, state-of-the-art, interactive,
public-switched broadband telecommunications network in
rural, suburban and urban areas, including deployment of
broadband facilities in or adjacent to the public rights-of-
way abutting public schools, including the administrative
offices supporting public schools; industrial parks; and
Health Care Facilities, as defined in the act of july 19,
1979 (p.l.130, no.48), known as the health care facilities
act.
(2) Ensure that customers pay only reasonable charges
for local exchange telecommunications services which shall be
available on a nondiscriminatory basis.
(3) Ensure that rates for noncompetitive
telecommunications services do not subsidize the competitive
ventures of providers of telecommunications services.
(4) Provide diversity in the supply of existing and
future telecommunications services and products in
telecommunications markets throughout this Commonwealth by
ensuring that rates, terms and conditions for noncompetitive
services, including access services, are reasonable and do
not impede the development of competition.
(5) Ensure the efficient delivery of technological
advances and new services throughout this Commonwealth in
order to improve the quality of life for all Pennsylvanians.
(6) Encourage the provision of telecommunications
products and services that enhance the quality of life of
people with disabilities.
(7) Promote and encourage the provisions of competitive
services by a variety of service providers on equal terms
throughout all geographic areas of this Commonwealth.
(8) Encourage the competitive supply of any service in
any region where there is market demand.
(9) Encourage joint ventures between local exchange
telecommunications companies and other entities where such
joint ventures accelerate, improve or otherwise assist a
local exchange telecommunications company in carrying out its
network modernization implementation plan.
§ 3002. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Aggregator telephone." A telephone which is made available
to the transient public, customers or patrons, including, but
not limited to, coin telephones, credit card telephones and
telephones located in hotels, motels, hospitals and
universities.
"Alternative form of regulation." A form of regulation of
telecommunications services other than the traditional rate
base/rate of return regulation, to be determined by the
commission. The term includes the use of any index, formula,
rate stability plan, zone of rate freedom or streamlined form of
rate regulation.
"Basic service functions." Those basic components of the
local exchange carrier network which are necessary to provide a
telecommunications service and which represent the smallest
feasible level of unbundling capable of being tariffed and
offered as a service.
"Broadband." A communication channel using any technology
and having a bandwidth equal to or greater than 1.544 megabits
per second.
"Competitive service." A service or business activity
determined to be competitive under this chapter or any
telecommunications service determined by the commission to be
competitive under this chapter.
"Interexchange telecommunications carrier." A carrier other
than a local exchange telecommunications company authorized by
the commission to provide long-distance telecommunications
services.
"Local exchange telecommunications company." A carrier
authorized by the commission to provide local telecommunications
services.
"Noncompetitive service." The term includes any protected
telephone service as defined under this chapter or a service
that has been determined by the commission as not a competitive
service.
"Optional calling plan." A discount toll plan required by
the commission to be offered by either a local exchange carrier
or an interexchange carrier when justified by call usage for a
telephone route. the provision of service under an optional
calling plan shall be considered noncompetitive service unless
determined otherwise by the commission.
"Protected telephone service." The term includes the
following telecommunications services provided by a local
exchange telecommunications company, unless the commission
determines, after notice and hearing, that the service is
competitive:
(1) Telecommunications service provided to business or
residential consumers that is necessary for completing a
local exchange call.
(2) Touch tone service.
(3) Switched access service.
(4) Special access service.
(5) Ordering, installation, restoration and
disconnection of these services.
"Special access service." Service provided over dedicated,
nonswitched facilities by local exchange telecommunications
companies to interexchange carriers or other large volume users
which provide connection between an interexchange carrier or
private network and a customer's premises.
"Streamlined form of rate regulation." A simplified method
of rate regulation of small local exchange telecommunications
companies serving less than 50,000 access lines which utilizes a
methodology other than traditional rate base/rate of return
regulation and procedures other than those provided in chapter
13 (relating to rates and rate making). Forms of simplified
regulation may include, but are not limited to, the use of an
index, formula, rate stability plan, zone of rate freedom or
other abbreviated rate making procedures.
"Switched access service." A service which provides for the
use of common terminating, switching and trunking facilities of
a local exchange telecommunications company's public switched
network. the term includes, but is not limited to, the rates for
local switching, common and dedicated transport and the carrier
common line charge.
"Telecommunications service." A utility service, involving
the transmission of messages, which is subject to this title.
"universal broadband availability." access to broadband
service by each bona fide telephone customer of a local exchange
telecommunications company within five days after a request for
broadband service is received by any telecommunications company.
§ 3003. Local exchange telecommunications company request for
alternative regulation and network modernization
implementation plan.
(a) Petition.--When a local exchange telecommunications
company seeks to be regulated under an alternative form of
regulation, it shall submit to the commission a petition
requesting the alternative form of regulation. In the petition,
the company shall submit its proposal and supporting data for an
alternative form of regulation. The petition shall also identify
all competitive services which the local exchange
telecommunications company proposes at that time.
(b) Network modernization implementation plan.--The petition
shall also include the company's network modernization
implementation plan under which:
(1) Each local exchange telecommunications company shall
commit to universal broadband availability and shall commit
to converting 100% of its interoffice and distribution
telecommunications network to broadband capability by
December 31, 2015. The plan shall identify the local exchange
telecommunications company's present and projected deployment
of digital switches in central offices, fiber optic trunk
line capability between central offices, intelligent network
signaling capability and integrated services digital network
(ISDN) availability in central offices.
(2) Each local exchange telecommunications company shall
reasonably balance deployment of its broadband network
between rural, urban and suburban areas within its service
territory.
(3) The deployment of broadband facilities shall be in
or adjacent to public rights-of-way abutting public schools,
including the administrative offices supporting public
schools; industrial parks; and health care facilities, as
defined in the act of July 19, 1979 (p.l.130, no.48), known
as the Health Care Facilities Act.
(4) A local exchange telecommunications company shall
file a network modernization implementation plan with its
petition for alternative form of regulation with the
commission which identifies and describes in detail the
company's implementation plan for complying with paragraphs
(1), (2) and (3). The plan shall specify interim target dates
at not more than five-year intervals for deployment of its
broadband network.
(5) Joint ventures between local exchange
telecommunications companies and other entities may be
included as part of a local exchange telecommunications
company's network modernization implementation plan where the
joint ventures accelerate, improve or otherwise assist a
local exchange telecommunications company in carrying out its
network modernization implementation plan. The joint ventures
may be proposed by any interested party. Consistent with
parallel provisions in federal antitrust statutes and federal
judicial opinions interpreting those federal statutes, no
joint ventures by public utilities or other entities engaged
in such joint ventures shall constitute a restraint of trade
or commerce in this Commonwealth.
(6) The network modernization implementation plan shall
be updated and filed with the commission biennially. The
commission shall review and approve the plan updates as long
as the updates are found to be consistent with and in
furtherance of the local exchange telecommunications
company's currently effective implementation plan.
(c) Filing.--The company shall file its petition, plan and
supporting data concurrently with the Office of Consumer
Advocate, the Office of Small Business Advocate and any
interexchange telecommunications carrier that has requested
notice of the filings from the local exchange telecommunications
company. At the same time, the company shall give notice to its
ratepayers through a billing insert or bill message, to its
employees and to the public of the filing of its petition for an
alternative form of regulation and network modernization
implementation plan in accordance with the commission's rules
and regulations.
(d) Updating.--The commission shall require any local
exchange telecommunications company which has not filed a
petition and plan within five years of the effective date of
this chapter to show cause why it has not done so.
§ 3004. Commission review and approval of petition and plan.
(a) Authorization.--In determining just and reasonable rates
in accordance with section 1301 (relating to rates to be just
and reasonable), the commission may authorize a local exchange
telecommunications company to set rates based on an alternative
form of regulation pursuant to a plan approved by the commission
under this chapter.
(b) Review and approval of petition and plan.--The
commission shall, after notice and hearing, review the petition
and plan for an alternative form of regulation, and approve the
petition and plan, approve them with modifications, or deny them
as not reasonably designed to meet the requirements of this
chapter. If the commission denies the petition and plan or
approves them with modifications, the commission shall set forth
in its order each specific reason for the denial or
modification. If the commission does not act within nine months
of the filing date of the petition and plan, the petition and
plan shall be deemed approved. If the commission approves the
petition and plan with modifications, the local exchange
telecommunications company may, at its option, withdraw its
petition and plan and continue to be regulated under its
existing form of regulation or a streamlined form of regulation
for which it qualifies. If a local exchange telecommunications
company's petition and plan are withdrawn and a subsequent
petition and plan are not submitted within five years from the
effective date of this chapter, the commission shall require the
local exchange telecommunications company to show cause why it
has not done so. If the commission rejects a petition and plan
submitted by a local exchange telecommunications company, that
company shall file another petition and plan within six months
of the commission's final order.
(c) Commission review of network modernization
implementation plan.--The commission shall review each local
exchange telecommunications company's network modernization
implementation plan to determine if the plan is consistent with
the provisions of this chapter and in the public interest. In
reviewing a network modernization implementation plan, the
commission may require a local exchange telecommunications
company to show cause why a specific joint venture opportunity
has not been included in the plan. The commission may require
that a local exchange telecommunications company provide
universal broadband availability having a bandwidth greater than
1.544 megabits per second.
(d) Criteria for commission review.--The commission shall
approve the petition, after notice and hearing, only if it finds
that the petition meets the following criteria:
(1) Ensures the continued affordability of protected
telephone service.
(2) Assures that the rates for noncompetitive services
are just, reasonable and not unduly discriminatory through
the use of a price stability mechanism or other alternative
form which may include indices, formulas, rate stability
plans, zones of rate freedom or streamlined rate making
plans. Subject to commission approval, a price stability
mechanism that allows total annual revenues from
noncompetitive services to increase or decrease from the
previous year's total revenues from noncompetitive services
as a result of tariff rate changes based on the annual change
in the gross domestic product price index, as calculated by
the United States Department of Commerce, minus 2.25% may
meet the requirements of this section. Tariffs to recover the
additional revenues shall be subject to commission approval
under section 1308 (relating to voluntary changes in rates).
(3) Provides for the rate deregulation of all
competitive services including the deregulation of rates,
tolls, charges, rate structures, rate base, rate of return or
earnings of competitive services. Notwithstanding the
classification of a local exchange telecommunications service
as competitive, a local exchange telecommunications company
may not de-average standard message toll service rates unless
authorized to do so by the commission.
(4) Will not unduly or unreasonably prejudice or
disadvantage a customer class or providers of competitive
services.
(5) Is in the public interest.
(6) Enhances economic development in this Commonwealth
while maintaining affordable rates.
(7) Contains a comprehensive program of service quality
standards in accordance with section 1501 (relating to
character of service and facilities), including procedures
for commission review.
(8) Specifically identifies the benefits to be derived
from the alternative form of regulation, including, but not
limited to, the reduction of regulatory delays and costs.
(9) Complies with section 3007 (relating to
determination of access charges) under this chapter.
(10) Will permit the deployment of new voice, data and
video services to rural, suburban and urban areas throughout
the local exchange telecommunications company service
territory.
(11) Considers the adequacy of local calling areas in
view of relevant local communities of interest.
(12) Assures that low-income individuals are able to
connect to and maintain in-home access to protected telephone
services. The residential budget usage option service offered
by the local exchange company on the effective date of this
chapter shall not be eliminated.
(13) Assures that the provision of telecommunications
products and services enhances the quality of life of people
with disabilities.
(14) Ensures that the economic risks associated with the
provision of a competitive service by a local exchange
telecommunications company or its affiliates shall not be
borne by those customers who do not purchase such services.
(15) Assures that a local exchange telecommunications
company shall provide aggregate customer and network
information on a nondiscriminatory basis to any other
provider, unless prohibited by law.
(e) Burden of proof.--The burden of proof shall be on the
local exchange telecommunications company requesting an
alternative form of regulation.
§ 3005. Competitive services.
(a) Identification of competitive service.--The commission
is authorized to determine, after notice and hearing, whether a
telecommunications service or other service or business activity
offered by a local exchange company is a competitive service. A
local exchange telecommunications company may petition the
commission for a determination of whether a telecommunications
service or other service or business activity offered is
competitive, either in conjunction with a petition to be
regulated under an alternative form of regulation or at any time
after the granting of the petition. Requests for a competitive
classification not filed as part of a petition for an
alternative regulatory framework shall have an effective date of
not less than 60 days from the filing date. The commission shall
enter an order approving or disapproving the petition within 180
days of the filing date. In making the determination, the
commission shall consider all relevant evidence submitted to it,
including evidence presented by providers of competitive
services. In a proceeding to determine whether a
telecommunications service or other service or business activity
offered is a competitive service, the following shall apply:
(1) The commission shall make findings which, at a
minimum, shall include evidence of ease of market entry,
including the existence and impact of cross-subsidization,
rights-of-way, pole attachments and unavoided costs; presence
and viability of other competitors, including market shares;
the ability of competitors to offer those services or other
activities at competitive prices, terms and conditions; the
availability of like or substitute services or other
activities in the relevant geographic area; the effect, if
any, on protected services; the overall impact of the
proposed regulatory changes on the continued availability of
existing services; whether the consumers of the service would
receive an identifiable benefit from the provision of the
service or other activity on a competitive basis; the degree
of regulation necessary to prevent abuses or discrimination
in the provision of the service or other activity and any
other relevant factors which are in the public interest. If a
local exchange telecommunications company introduces a
telecommunications service or other service or business
activity that has not previously been offered, the service or
other activity will not be deemed competitive unless it is so
determined by the commission under the provisions of this
chapter.
(2) The burden of proving that a telecommunications
service or other service or business activity offered is
competitive rests on the party seeking to have the service
classified as competitive.
(b) Regulations.--The commission shall establish regulations
to prevent local exchange telecommunications companies from
engaging in unfair competition and require that local exchange
telecommunications companies provide reasonable
nondiscriminatory access to competitors for all services and
facilities necessary to provide competing services to consumers.
(c) Reports.--The commission shall determine, by rule,
regulation or order, what reports are necessary to monitor the
accounting for, and competitiveness of, a competitive service.
(d) Reclassification.--The commission shall have the
authority to reclassify a telecommunications service or other
service or business activity that it has previously found to be
competitive if, after notice and hearing, it determines, upon
application of the criteria set forth in this chapter, that
sufficient competition is no longer present, that the local
exchange company has engaged in unfair competition with respect
to the service or that the local exchange company has failed to
provide nondiscriminatory access in the provision of the
service. If the commission finds that a reclassification is
necessary, the commission must determine whether the rate for
the telecommunications service or other service or business
activity is just and reasonable in accordance with section 1301
(relating to rates to be just and reasonable). If the
telecommunications service or other service or business activity
subsequently becomes competitive, the local exchange
telecommunications company shall petition the commission to make
a determination of competitiveness for the service under the
provisions of this chapter.
(e) Additional determinations.--The commission shall
determine whether local exchange telecommunications companies
are complying with the following provisions:
(1) The local exchange telecommunications company shall
unbundle each basic service function on which the competitive
service depends and shall make the basic service functions
separately available to any customer under nondiscriminatory
tariffed terms and conditions, including price, that are
identical to those used by the local exchange
telecommunications company and its affiliates in providing
its competitive service.
(2) The price which a local exchange telecommunications
company charges for a competitive service shall not be less
than the rates charged to others for any basic service
functions used by the local exchange telecommunications
company or its affiliates to provide the competitive service.
Revenues from the rates for access services reflected in the
price of competitive services shall be included in the total
revenues produced by the noncompetitive services.
(3) Tariffs or price lists for competitive services
filed with the commission shall either be in the public
records or, if the commission determines that the rates are
proprietary, be filed under seal and made available under the
terms of an appropriate protective agreement of the type used
in cases before the commission.
(f) Service and notice.--At the time a local exchange
telecommunications company files a petition for an alternative
form of regulation to classify any service or other activity as
competitive or to reclassify an existing service or other
activity as competitive or for the transfer of any assets of
services or other activities classified as competitive by the
commission, the local exchange telecommunications company shall
serve a copy on all interexchange telecommunications carriers
who have requested notice of the filings from the local exchange
telecommunications company as well as the office of consumer
advocate and the office of small business advocate. At the same
time, the local exchange telecommunications company must give
notice to the public, its employees and its ratepayers through a
billing insert or bill message in accordance with the
commission's rules and regulations.
(g) Prohibitions.--The local exchange telecommunications
company shall be prohibited from engaging in the following:
(1) The local exchange telecommunications company shall
not maintain or impose any resale or sharing restrictions on
any service which the commission finds to be competitive.
(2) A local exchange telecommunications company may not
use revenues earned or expenses incurred in conjunction with
noncompetitive services to subsidize or support any
competitive services. The commission shall establish
regulations which must be followed by local exchange
telecommunications companies for the purpose of allocating
costs for accounting and rate making among telephone services
in order to prevent subsidization or support for competitive
services.
(h) Subsidiary.--For local exchange telecommunications
companies serving over 1,000,000 access lines, the commission
may require that a competitive service be provided through a
subsidiary which is fully separated from the local exchange
telecommunications company if the commission finds that there is
a substantial possibility that the provision of the service on a
nonseparated basis will result in unfair competition.
§ 3006. Streamlined form of rate regulation.
(a) Streamlined form of rate regulation petition.--In
accordance with sections 3003 (relating to local exchange
telecommunications company request for alternative regulation
and network modernization implementation plan) and 3004
(relating to commission review and approval of petition and
plan), local exchange telecommunications companies serving less
than 50,000 access lines within this Commonwealth may petition
the commission to establish a streamlined form of rate
regulation to be applicable to their operations. The streamlined
form of rate regulation shall be designed to decrease regulatory
delays and costs and may include, but is not limited to, use of
an index formula, price stability plan, zone of rate freedom or
a combination thereof. The streamlined form of rate regulation
may be proposed to revise or decrease notice periods, suspension
periods and other procedures currently required by chapter 13
(relating to rates and rate making) consistent with due process
requirements. The streamlined form of rate regulation shall be
proposed to be applicable to all of the local exchange
companies' rates and services within the commission's
jurisdiction.
(b) Required service.--Petitions for a streamlined form of
rate regulation shall be served on the office of consumer
advocate, the office of small business advocate and any
interexchange carrier that has requested notice of the filings
from the local exchange telecommunications company. At the same
time, the company shall give notice to its ratepayers and the
public of the filing of its petition.
(c) Commission review.--The commission shall review a
streamlined form of rate regulation for a local exchange
telecommunications company within nine months of the filing of
the petition. If the commission does not act within nine months
of the filing of the petition, the plan shall be deemed
approved. The commission shall approve a streamlined form of
rate regulation for a local exchange telecommunications company
upon reaching the following findings:
(1) The proposal reduces regulatory delays and costs.
(2) The proposal is consistent with general due process
requirements.
(3) The proposal is consistent and in compliance with
all of the provisions of this chapter.
(4) The proposal is in the public interest.
(d) Filing requirements.--For local exchange
telecommunications companies serving less than 50,000 access
lines in this Commonwealth, filing requirements and audit
requirements are limited to an annual financial report,
including rate of return data for surveillance purposes; an
annual deaf, speech-impaired and hearing-impaired relay
information report; an annual service report; an annual access
line report; an annual state tax adjustment computation for
years in which a tax change has occurred; a biennial extended
area service traffic study; and any additional special reports
or studies for which the commission determines that the benefits
generated will justify the attendant expense and administrative
time requirements of preparing them.
(e) Implementation.--Upon commission approval of a
streamlined form of rate regulation, the streamlined form of
regulation shall be implemented and shall govern the regulation
of the local exchange telecommunications company and shall,
consistent with the provisions of this chapter, supersede any
conflicting provisions of this title or other laws of this
Commonwealth.
(f) Rate increases.--For local exchange telecommunications
companies serving less than 50,000 access lines in this
Commonwealth, a formal complaint to deny rate increases for
protected services, unless signed by at least 20 customers of
the local exchange telecommunications company, shall not stop
the implementation of the rate increases, pending the
adjudication of the formal complaint by the commission.
§ 3007. Determination of access charges.
Local exchange telecommunications companies serving more than
250,000 access lines in this Commonwealth as of the effective
date of this chapter shall comply with the following provisions:
(1) Local exchange telecommunications companies shall
have an effective per-minute switched access service price
that shall not exceed 12¢ for the first five years from the
implementation date of the petition and plan, unless the
company can justify a higher rate based on the total cost of
switched access services. The per-minute switched access
service price includes both originating and terminating rates
and excludes nonrecurring rates. A local exchange
telecommunications company with an effective per-minute
switched access service price greater than 12¢ on the
implementation date of the petition and plan, shall provide
for a revenue-neutral phasedown to not more than 12¢ in not
more than three equal annual increments commencing with the
implementation of the petition and plan. Upon the sixth year
from the implementation date of the plan, the commission
shall review the per-minute switched access service price
and, after notice and hearing, determine a just and
reasonable per-minute switched access service price.
(2) Local exchange telecommunications companies with an
effective per-minute switched access service price at or
below 12¢, including both originating and terminating rates
and excluding nonrecurring rates, may not increase switched
access prices either in conjunction with the filing or
consideration of a petition and plan or for four years from
the approval date of a petition, not to extend beyond
December 31, 1999, unless the company can show that, absent
an increase, total switched access revenues would be below
total switched access cost. Revenue-neutral access tariff
rate changes and restructures may be proposed subject to
commission approval.
(3) Upon the commission's evaluation of the consistency
of tariff rates and structures with the interstate access
service tariff, revenue-neutral tariff rate changes and
restructures may be proposed by local exchange
telecommunications companies in order to implement the
results of the commission evaluation. No rate change or
restructure shall be approved if it constitutes or promotes
unfair competition. Rate changes and restructures for access
services submitted in accordance with this paragraph are
subject to commission approval, after notice and hearing.
(4) Any existing limits, by tariff or otherwise, on the
amount of revenue that a local exchange telecommunications
company may recover from the carrier common line rate shall
continue at the effective date of this chapter. At the
conclusion of any phasedown period provided in paragraph (1),
the annual revenues to be derived from carrier common line
rates shall be no more than the total carrier common line
revenues applicable to the final 12 months of any phasedown
period.
§ 3008. Interexchange telecommunications carrier.
(a) Competitive and noncompetitive services.--
Telecommunications services provided by interexchange
telecommunications carriers shall be deemed to be competitive
services after January 1, 1994, except for the provision of the
following interexchange services which will be deemed to be
noncompetitive services unless determined otherwise by the
commission.
(1) Interexchange service to aggregator telephones.
(2) Optional calling plans required by the commission to
be offered when justified by usage over an interexchange
route.
(b) Rate regulations.--The commission shall not fix or
prescribe the rates, tolls, charges, rate structures, rate base,
rate of return, operating margin or earnings for interexchange
competitive services or otherwise regulate interexchange
competitive services except as set forth in this chapter. The
commission may require that the interexchange telecommunications
carriers file and maintain tariffs or price lists for
competitive telecommunications services. Nothing in this chapter
shall limit the authority of the commission to regulate the
privacy of interexchange service and the ordering, installation,
restoration and disconnection of interexchange service to
customers.
(c) Reclassification.--The commission shall have the
authority to reclassify telecommunications services provided by
an interexchange telecommunications carrier as noncompetitive
if, after notice and hearing, it determines, upon application of
the criteria set forth in this chapter, that sufficient
competition is no longer present.
(d) Service quality standards.--The commission may establish
service quality standards for interexchange telecommunications
carriers. Nothing in this chapter shall limit the authority of
the commission to promulgate service quality standards for
interexchange telecommunications carriers or to resolve
complaints regarding the quality of interexchange
telecommunications carrier service. Notwithstanding the
classification of telecommunications services as competitive,
interexchange carriers shall not be permitted to de-average
standard message toll service rates unless authorized to do so
by the commission.
(e) Authority of commission not limited.--Nothing in this
chapter shall limit the authority of the commission to determine
whether an interexchange telecommunications carrier should be
extended the privilege of operating within this Commonwealth or
to order the filing of such reports, documents and information
as may be necessary to monitor the market for and
competitiveness of interexchange telecommunications services.
§ 3009. Additional powers and duties.
(a) General rule.--The commission may certify more than one
local exchange telecommunications company to provide local
telecommunications service. Such certification shall be granted
upon a showing that it is in the public interest and that the
applicant possesses sufficient technical, financial and
managerial resources.
(b) Powers and duties retained.--The commission shall retain
the following powers and duties relating to the regulation of
all local exchange telecommunications companies and
interexchange telecommunications carriers:
(1) The commission shall have the power to audit the
accounting and reporting systems of local exchange
telecommunications companies and their transactions with
affiliates in accordance with this title and the commission's
present or future rules and regulations to provide a proper
allocation of investments, costs or expenses for all
telecommunications services or other services or business
activities, competitive and noncompetitive.
(2) Nothing in this chapter shall limit the authority of
the commission to ensure that local exchange
telecommunications companies do not make or impose unjust
preferences, discriminations or classifications for protected
telephone service and other noncompetitive services.
(3) The commission shall establish such additional
requirements and regulations as it determines to be necessary
to ensure the protection of consumers.
(4) Notwithstanding any other provisions of this
chapter, all services provided by a local exchange
telecommunications company or interexchange
telecommunications carrier shall remain subject to all
provisions of this title and other laws of this Commonwealth
regarding the safety, adequacy, reliability and privacy of
telecommunications services or other services or business
activities. All new services or changes to existing
noncompetitive services must be reviewed by the commission
prior to their being offered to the public to insure
compliance with all applicable provisions regarding safety,
adequacy, reliability and privacy of telecommunications
services. The commission shall have the authority to reject
or modify any such service to the extent the commission
finds, after notice and opportunity for hearing, that the
service is not in compliance with any such provision. Nothing
in this chapter shall affect the commission's authority to
regulate with respect to the ordering, installation,
suspension, termination and restoration of any service.
(5) A local exchange carrier shall not disclose
information relating to any customer's pattern of use,
equipment and network information and any accumulated records
about the customer to any other person unless required by
law. This prohibition, however, shall not prevent the
disclosure of such information pursuant to court order, nor
shall it preclude the releasing of aggregate data which does
not identify particular persons.
(c) Consistency with other requirements.--In providing video
programming, a local exchange telecommunications company shall
be subject to all the same laws, regulations and requirements of
service as mandated upon other providers of video programming
which are not local exchange telecommunications companies.
(d) Rules and regulations.--The commission may promulgate
rules and regulations to administer and enforce this chapter.
(e) Report.--Not later than two years following the
effective date of this chapter, the commission shall submit a
report to the governor and the General Assembly reviewing the
implementation of the provisions of this chapter. The report
which shall include, but not be limited to, an evaluation of any
alternative or streamlined form of regulation approved by the
commission, the progress of local exchange telecommunications
companies in implementing their network modernization
implementation plans, and the success of the deregulation of
competitive services permitted by this chapter. In its
recommendations, the commission may also propose any legislative
or other changes, which it deems appropriate, to the governor
and the General Assembly.
(f) Method for fixing rates.--The commission shall not fix
or prescribe the rates, tolls, charges, rate structures, rate
base, rate of return or earnings of competitive services or
otherwise regulate competitive services except as set forth in
this chapter. The commission may require that the local exchange
telecommunications company file and maintain tariffs or price
lists for competitive telecommunications services.
Section 2. Title 66 is amended by adding a section to read:
§ 3316. Protection of public utility employees.
(a) Persons not to be discharged.--No employer may
discharge, threaten or otherwise discriminate or retaliate
against an employee regarding the employee's compensation,
terms, conditions, location or privileges of employment because
the employee or a person acting on behalf of the employee made
or was about to make a good faith report, verbally or in
writing, to the employer, the commission, the Office of Consumer
Advocate, the Office of Small Business Advocate or the Office of
Attorney General on an instance of wrongdoing or waste.
(b) Discrimination prohibited.--No employer may discharge,
threaten or otherwise discriminate or retaliate against an
employee regarding the employee's compensation, terms,
conditions, location or privileges of employment because the
employee is requested by the commission, the Office of Consumer
Advocate, the Office of Small Business Advocate or the Office of
Attorney General to participate in an investigation, hearing or
inquiry held by the commission or the Office of Attorney General
or in a court action relating to the public utility.
(c) Civil action.--A person who alleges a violation of this
section may bring a civil action in a court of competent
jurisdiction for appropriate injunctive relief or damages, or
both, within 180 days after the occurrence of the alleged
violation.
(d) Necessary showing of evidence.--An employee alleging a
violation of this section must show by a preponderance of the
evidence that, prior to the alleged reprisal, the employee or a
person acting on behalf of the employee had reported or was
about to report in good faith, verbally or in writing, an
instance of wrongdoing or waste to the employer, the commission,
the Office of Consumer Advocate, the Office of Small Business
Advocate or the Office of Attorney General.
(e) Defense.--It shall be a defense to an action under this
section if the defendant proves by a preponderance of the
evidence that the action by the employer occurred for separate
and legitimate reasons, which are not merely pretextual.
(f) Enforcement.--A court, in rendering a judgment in an
action brought under this section, shall order, as the court
considers appropriate, reinstatement of the employee, the
payment of back wages, full reinstatement of fringe benefits and
seniority rights, actual damages or any combination of these
remedies. A court shall also award the complainant all or a
portion of the costs of litigation, including reasonable
attorney fees and witness fees, if the court determines that the
award is appropriate.
(g) Penalties.--A person who, under color of an employer's
authority, violates this section shall be liable for a civil
fine of not more than $500. A civil fine which is ordered under
this section shall be paid to the State Treasurer for deposit
into the General Fund.
(h) Notice.--An employer shall post notices and use other
appropriate means to notify employees and keep them informed of
protections and obligations under this section.
(i) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Employee." A person who performs a service for wages or
other remuneration under a contract of hire, written or oral,
express or implied, for a public utility.
"Employer." A person supervising one or more employees,
including the employee in question, a superior or an agent of a
public utility.
"Good faith report." A report which is made without malice
or consideration of personal benefit and which is made with
reasonable cause to believe in its truth.
"Waste." An employer's conduct or omissions which result in
substantial abuse, misuse, destruction or loss of funds or
resources belonging to or derived from a public utility.
"Wrongdoing." A violation which is not of a merely technical
or minimal nature of a Federal or State statute or regulation or
of a political subdivision ordinance or regulation or of a code
of conduct or ethics designed to protect the interest of the
public or the employer.
Section 3. The provisions of this act are severable. If any
provision of this act or its application to any person or
circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this act which can be given
effect without the invalid provision or application.
Section 4. The addition of 66 Pa.C.S. Ch. 30 shall expire on
December 31, 2003, unless sooner reenacted by the General
Assembly.
Section 5. This act shall take effect immediately.
APPROVED--The 8th day of July, A.D. 1993.
MARK S. SINGEL
ACTING GOVERNOR