Bill Text: NJ AR24 | 2016-2017 | Regular Session | Introduced
Bill Title: Disapproves BPU decision to reclassify incumbent local exchange carrier service as competitive service; urges BPU to reverse decision.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2016-01-27 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [AR24 Detail]
Download: New_Jersey-2016-AR24-Introduced.html
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Disapproves BPU decision to reclassify incumbent local exchange carrier service as competitive service; urges BPU to reverse decision.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Assembly Resolution disapproving the Board of Public Utilities' decision to reclassify incumbent local exchange carrier service as a "competitive service" and urging the board to reverse its decision.
Whereas, On May 6, 2015 Verizon New Jersey (Verizon) and the New Jersey Board of Public Utilities (BPU) executed a Stipulation of Settlement (stipulation) reclassifying incumbent local exchange carrier service (basic telephone service) as a "competitive service," pursuant to P.L.1991, c.428 (C.48:2-21.16 et seq.).; and
Whereas, Historically, the BPU has regulated the rates of basic telephone service because it was deemed a "noncompetitive service" by the BPU, whereas the BPU is prohibited by law from regulating the rates of telecommunications services the BPU deems "competitive;" and
Whereas, Verizon contends that the BPU's reclassification of basic telephone service as a competitive service is justified because there are other telephone service technologies available in the marketplace from which consumers may choose for basic telephone service, making rate regulation by the BPU unnecessary; and
Whereas, The stipulation reclassifying basic telephone service as a competitive service allows Verizon to increase service rates by 36 percent over a five-year transition period, and following the transition period, Verizon may set service rates without BPU regulation; and
Whereas, Many senior citizens, and those on fixed incomes, rely on basic telephone service for the operation of medical devices and home security systems; and
Whereas, Although other telephone service technologies compete with basic telephone service, they are not as reliable, particularly Voice over Internet Protocol service, which ceases functioning after the backup power battery pack necessary for its operation at a residence or business is exhausted during a power outage; and
Whereas, Other telephone service technologies are prohibitively expensive for senior citizens and those on fixed incomes; and
Whereas, The BPU allowed only nine days from the issuance of the stipulation for comments from the parties involved, including the Division of Rate Counsel; and
Whereas, The provisions of the stipulation impact the State's most vulnerable populations and deserve further consideration by the public and other interested parties; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This resolution disapproves of the Board of Public Utilities' (board) decision to reclassify incumbent local exchange carrier service (basic telephone service) as a "competitive service," which will lead to an increase in service rates for the most vulnerable populations of this State, and urges the board to reverse its decision.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President and each commissioner of the Board of Public Utilities.
STATEMENT
This Assembly Resolution disapproves of the New Jersey Board of Public Utilities' (BPU) decision to reclassify incumbent local exchange carrier service, commonly referred to as basic telephone service, as a "competitive service" under P.L.1991, c.428 (C.48:2-21.16 et seq.) and urges the BPU to reverse its decision. The BPU is prohibited by law from regulating the rates of telecommunications services deemed "competitive" by the BPU.
On May 6, 2015, the BPU and Verizon issued a Stipulation of Settlement (stipulation) agreeing to the reclassification of basic telephone service. Verizon contends that that the BPU's reclassification of basic telephone service as a competitive service is justified because there are other telephone service technologies available in the marketplace from which consumers may choose for basic telephone service, making rate regulation by the BPU unnecessary.
The stipulation reclassifying basic telephone service as a competitive service allows Verizon to increase service rates by 36 percent over a five-year transition period, and following the transition period, Verizon may set service rates without BPU regulation.
Many senior citizens, and those on fixed incomes, rely on basic telephone service for the operation of medical devices and home security systems. Although other telephone service technologies compete with basic telephone service, they are not as reliable, particularly Voice over Internet Protocol service, which ceases functioning after the backup power battery pack necessary for its operation and installed at a residence or business is exhausted during a power outage. Further, other telephone service technologies are prohibitively expensive for senior citizens and those on fixed incomes.
The BPU allowed only nine days from the issuance of the stipulation for comments from the parties involved, which includes the Division of Rate Counsel. The provisions of the stipulation impact the State's most vulnerable populations and deserve further consideration by the public and other interested parties.
