House Introduced Bill 6097

HOUSE BILL No. 6097

May 21, 2002, Introduced by Reps. Allen, Bradstreet, Shackleton and Neumann and referred to the Committee on Energy and
Technology.

A bill to amend 1991 PA 179, entitled

"Michigan telecommunications act,"

by amending section 304 (MCL 484.2304), as amended by 2000 PA

295.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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Sec. 304. (1) Except as provided in section 304a, the rates

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for basic local exchange service shall be just and reasonable.

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(2) A provider may alter its rates for basic local exchange

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services by 1 or more of the following:

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(a) Filing with the commission notice of a decrease, dis-

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count, or other rate reduction in a basic local exchange rate. A

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rate alteration under this subdivision shall become effective

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without commission review or approval.

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(b) Filing with the commission notice of an increase in a

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basic local exchange rate that does not exceed 1% less than the

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consumer price index. Unless the commission determines that the

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rate alteration exceeds the allowed increase under this subdivi-

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sion, the rate alteration shall take effect 90 days from the date

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of the notice required under subsection (3). As used in this

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subdivision, "consumer price index" means the most recent

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reported annual average percentage increase in the Detroit con-

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sumer price index for all items for the prior 12-month period by

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the United States department of labor.

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(c) Filing with the commission an application to increase a

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basic local exchange rate in an amount greater than that allowed

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under subdivision (b). The application shall be accompanied with

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sufficient documentary support that the rate alteration is just

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and reasonable. The commission shall make a determination within

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the 90-day period provided for in subsection (5) of 1 of the

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following:

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(i) That the rate alteration is just and reasonable.

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(ii) That a filing under section 203 is necessary to review

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the rate alteration.

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(3) Notice to customers of a rate alteration is required for

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a rate alteration under subsection (2)(b) or (c) and section 304a

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and shall be included in or on the bill of each affected customer

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of the provider before the effective date of the rate

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alteration.

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(4) The notice required under subsection (3) shall contain

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at least all of the following information:

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(a) A statement that the customer's rate may change.

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(b) An estimate of the amount of the annual change for the

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typical residential customer that would result by the rate

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change.

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(c) A statement that a customer may comment on or receive

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complete details of the rate alteration by calling or writing the

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commission. The statement shall also include the telephone

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number and address of the commission. Complete details of the

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rate alteration shall be provided free of charge to the customer

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at the expense of the provider.

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(5) Except as otherwise provided in subsections (2) and (6),

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an altered basic local exchange rate shall take effect 90 days

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from the date of the notice required by subsection (3).

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(6) Upon receiving a complaint or pursuant to a determina-

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tion under subsection (2)(c), the commission may require a filing

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under section 203 to review a proposed rate alteration under

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subsection (2)(c). The commission's final order may approve,

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modify, or reject the rate alteration.

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(7) In reviewing a rate alteration under subsection (6), the

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commission shall consider only 1 or more of the following factors

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if relevant to the rate alteration as specified by the provider:

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(a) Total service long run incremental cost of basic local

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exchange services.

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(b) Comparison of the proposed rate to the rates charged by

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other providers in this state for the same service.

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(c) Whether a new function, feature, or capability is being

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offered as a component of basic local exchange service.

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(d) Whether there has been an increase in the costs to

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provide basic local exchange service in the geographic area of

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the proposed rate.

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(e) Whether the provider's further investment in the network

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infrastructure of the geographic area of the proposed rate is

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economically justifiable without the proposed rate.

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(8) A provider shall be allowed only 1 rate increase for

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each class or type of service during any 12-month period.

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(9) A provider shall not make a rate alteration under this

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section until the rate has been restructured under section 304a.

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(10) The commission shall exempt a provider from this

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section SUBSECTIONS (1) THROUGH (9) and section 310(2) if it

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finds all of the following:

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(a) The provider provides basic local exchange service or

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basic local exchange and toll service to less than 250,000

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end-users in this state.

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(b) The provider offers to end-users single-party basic

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local exchange service, tone dialing, toll access service,

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including end-user common line services and dialing parity at a

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total price of no higher than the amount charged as of May 1,

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2000.

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(c) The provider provides dialing parity access to operator,

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telecommunication relay, and emergency services to all basic

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local exchange end-users.

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(11) A call made to a local calling area adjacent to the

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caller's local calling area OR FROM AN ISLAND TO CERTAIN PARTS OF

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THE MAINLAND AS DESIGNATED BY THE COMMISSION shall be considered

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a local call and shall be billed as a local call.

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