§ 37-15-203 — Price regulation of noncompetitive essential services

(a) Prices for telecommunications services which have been
determined by the legislature or the commission to be
noncompetitive essential telecommunications services shall be
regulated by the commission in accordance with this section.
The prices for noncompetitive essential telecommunications
services of any local exchange company may be adjusted downward
at the company's discretion. Except as provided in subsections
(e), (f), (h) and (j) of this section, prices for noncompetitive
essential telecommunications services shall be subject to a
maximum determined by the commission. The initial maximum shall
be the local exchange company's price of noncompetitive
essential telecommunications services as of July 1, 2006. A
local exchange carrier may increase its price for noncompetitive
essential telecommunications services to the level of the
maximum set under this subsection without approval of the
commission as required under subsections (f) and (g) of this
section.
(b) Repealed By Laws 2007, Ch. 142, § 2.
(c) Repealed By Laws 2007, Ch. 142, § 2.
(d) Repealed By Laws 2007, Ch. 142, § 2.
(e) A local exchange company may seek approval to make
revenue neutral adjustments, considering only revenue from
noncompetitive essential telecommunications services, to the
price of noncompetitive essential telecommunications services to
reduce or eliminate differences in the price of noncompetitive
essential telecommunications services in different portions of
its service area. A local exchange company shall not use
adjustments under this section to increase receipt of state
universal service funds or increase switched access prices. This
subsection shall not apply retroactively.
(f) A local exchange company may seek approval to increase
the price of noncompetitive essential telecommunications
services, including switched access charges, based on:
(i) Changes in the local calling area as approved by
the commission;
(ii) Changes in access charges as approved by the
commission;
(iii) Other changes affecting noncompetitive
essential telecommunications services; or
(iv) Increases in the cost of providing essential
telecommunications services. The increases shall be judged on
the overall federal gross domestic product price index published
by the United States department of commerce, bureau of economic
analysis unless the applicant demonstrates that specific cost
increases are disproportionably affecting the cost of providing
their noncompetitive essential telecommunications services.
(g) Any requested price change under subsections (b)
through (f) of this section, including revenue neutral changes,
that may result in an increase in the price of noncompetitive
essential telecommunications services is subject to review and
determination by the commission, after notice and opportunity
for hearing.
(h) The prices of any local exchange company may contain
provisions for incentives for improvement of the company's
performance or efficiency, lowering of operating costs, control
of expenses or improvement and upgrading or modernization of its
services or facilities. Any local exchange company may apply to
the commission for incentives and innovative or nontraditional
price regulation, including price indexing. The commission shall
issue a final order approving, modifying or rejecting any
application made under this subsection within one hundred eighty
(180) days of the filing date of the application with the
commission. If no order is issued by the commission within the
one hundred eighty (180) day period, the application shall be
deemed approved as filed. If during consideration of an
application for regulation under this subsection, the commission
materially alters the plan as filed in the application, the
applying local exchange company may notify the commission in
writing, at any time, but not later than sixty (60) days after
any final commission order on the application, that it elects
not to be price regulated as approved by the order. The local
exchange company's prices shall then be regulated as they were
prior to the application until such time as a new application is
filed, approved and accepted.
(j) Unless as otherwise directed under federal law,
noncompetitive switched access shall not be priced above three
cents ($.03) per minute after January 1, 2010.