Bill Text: CA AB1693 | 2013-2014 | Regular Session | Enrolled
Bill Title: Small independent telephone corporations: rates.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2014-09-20 - Vetoed by Governor. [AB1693 Detail]
Download: California-2013-AB1693-Enrolled.html
BILL NUMBER: AB 1693 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 21, 2014
PASSED THE ASSEMBLY AUGUST 22, 2014
AMENDED IN SENATE AUGUST 19, 2014
AMENDED IN SENATE JUNE 25, 2014
AMENDED IN ASSEMBLY APRIL 2, 2014
INTRODUCED BY Assembly Member Perea
FEBRUARY 13, 2014
An act to add Section 455.4 to the Public Utilities Code, relating
to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
AB 1693, Perea. Small independent telephone corporations: rates.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
Existing law authorizes the commission to fix the rates and charges
for every public utility, and requires that those rates and charges
be just and reasonable. Existing law, with certain exceptions,
prohibits a public utility from changing any rate, except upon a
showing before the commission and a finding by the commission that
the new rate is justified. Existing law requires the commission to
exercise its regulatory authority to maintain the California
High-Cost Fund-A Program to provide universal service rate support to
small independent telephone corporations, as defined, in amounts
sufficient to meet the revenue requirements established by the
commission through rate-of-return regulation in furtherance of the
state's universal service commitment to the continued affordability
and widespread availability of safe, reliable, high-quality
communications services in rural areas of the state.
This bill would require the commission to issue its final decision
on a general rate case of a small independent telephone corporation
no later than 390 days following the corporation's filing of its
general rate case application or advice letter initiating the general
rate case. If the commission fails to issue a final decision by the
390th day, the bill would provide that the rate design proposed by
the small independent telephone corporation in its application or
advice letter will take effect on an interim basis beginning 420 days
following the filing of the application or advice letter, subject to
an accounting true-up in a final commission decision or resolution
concluding the rate case, if issued within 540 days. If a final
decision or resolution concluding the case has not been issued by the
commission within 540 days, the bill would provide that the interim
rate design is final, effective as of the 420th day following the
filing of the general rate case application or advice letter, and
that rate design will remain in place, until the commission issues a
final decision or resolution concluding the rate case without any
true-up accounting. The bill would provide that any new rate design
adopted in a final decision or resolution issued by the commission
after 540 days following the filing of the application or advice
letter will take effect on a prospective basis only, as of the
effective date of the final decision or resolution. The bill would
provide that its provisions may be waived at any time by mutual
consent of the executive director of the commission and the small
independent telephone corporation.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 455.4 is added to the Public Utilities Code, to
read:
455.4. (a) For purposes of this section, "small independent
telephone corporation" has the same meaning as defined in Section
275.6.
(b) The commission shall issue its final decision on a general
rate case of a small independent telephone corporation no later than
390 days following the corporation's filing of its general rate case
application or advice letter initiating the general rate case.
(c) Notwithstanding Section 454, if the commission fails to issue
a final decision as required by subdivision (b), the rate design
proposed by the small independent telephone corporation in its
application or advice letter will take effect on an interim basis
beginning 420 days following the filing of the application or advice
letter, subject to an accounting true-up in a final commission
decision or resolution concluding the rate case, if issued within 540
days. The accounting true-up shall be performed consistent with
commission policies and practices. If a final decision or resolution
concluding the case has not been issued by the commission within 540
days, the interim rate design will become final, effective as of the
420th day following the filing of the general rate case application
or advice letter, and that rate design will remain in place, until
the commission issues a final decision or resolution concluding the
rate case without any true-up accounting. Any new rate design adopted
in a final decision or resolution issued by the commission after 540
days following the filing of the application or advice letter will
take effect on a prospective basis only, as of the effective date of
the final decision or resolution.
(d) The requirements of subdivisions (b) and (c) may be waived at
any time by mutual consent of the executive director of the
commission and the small independent telephone corporation.
(e) This section shall apply to a general rate case that is
pending on January 1, 2015. For a general rate case that is pending
as of January 1, 2015, the time periods in subdivisions (b) and (c)
shall be applied as follows:
(1) The 390th day in subdivision (b) shall be January 25, 2016.
(2) The 420th day in subdivision (c) shall be February 24, 2016.
(3) The 540th day in subdivision (c) shall be June 23, 2016.
