May 22, 2003, Introduced by Rep. Shulman 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:
1 Sec. 304. (1) Except as provided in section 304a, the rates
2 for basic local exchange service shall be just and reasonable.
3 (2) A provider may alter its rates for basic local exchange
4 services by 1 or more of the following:
5 (a) Filing with the commission notice of a decrease,
6 discount, or other rate reduction in a basic local exchange
7 rate. A rate alteration under this subdivision shall become
8 effective without commission review or approval.
9 (b) Filing with the commission notice of an increase in a
10 basic local exchange rate that does not exceed 1% less than the
1 consumer price index. Unless the commission determines that the
2 rate alteration exceeds the allowed increase under this
3 subdivision, the rate alteration shall take effect 90 days from
4 the date of the notice required under subsection (3). As used in
5 this subdivision, "consumer price index" means the most recent
6 reported annual average percentage increase in the Detroit
7 consumer price index for all items for the prior 12-month period
8 by the United States department of labor.
9 (c) Filing with the commission an application to increase or
10 alter a basic local exchange rate or end-user line charge in an
11 amount greater than that allowed under subdivision (b). The
12 application shall be accompanied with sufficient documentary
13 support that the rate or charge alteration is just and
14 reasonable. The commission shall make a determination within the
15 90-day period provided for in subsection (5) of 1 of the
16 following:
17 (i) That the rate or charge alteration is just and
18 reasonable.
19 (ii) That a filing under section 203 is necessary to review
20 the rate or charge alteration.
21 (3) Notice to customers of a rate alteration is required for
22 a rate alteration under subsection (2)(b) or (c) and section 304a
23 and shall be included in or on the bill of each affected customer
24 of the provider before the effective date of the rate
25 alteration.
26 (4) The notice required under subsection (3) shall contain at
27 least all of the following information:
1 (a) A statement that the customer's rate may change.
2 (b) An estimate of the amount of the annual change for the
3 typical residential customer that would result by the rate
4 change.
5 (c) A statement that a customer may comment on or receive
6 complete details of the rate alteration by calling or writing the
7 commission. The statement shall also include the telephone
8 number and address of the commission. Complete details of the
9 rate alteration shall be provided free of charge to the customer
10 at the expense of the provider.
11 (5) Except as otherwise provided in subsections (2) and (6),
12 an altered basic local exchange rate shall take effect 90 days
13 from the date of the notice required by subsection (3).
14 (6) Upon receiving a complaint or pursuant to a determination
15 under subsection (2)(c), the commission may require a filing
16 under section 203 to review a proposed rate alteration under
17 subsection (2)(c). The commission's final order may approve,
18 modify, or reject the rate alteration.
19 (7) In reviewing a rate alteration under subsection (6), the
20 commission shall consider only 1 or more of the following factors
21 if relevant to the rate alteration as specified by the provider:
22 (a) Total service long run incremental cost of basic local
23 exchange services.
24 (b) Comparison of the proposed rate to the rates charged by
25 other providers in this state for the same service.
26 (c) Whether a new function, feature, or capability is being
27 offered as a component of basic local exchange service.
1 (d) Whether there has been an increase in the costs to
2 provide basic local exchange service in the geographic area of
3 the proposed rate.
4 (e) Whether the provider's further investment in the network
5 infrastructure of the geographic area of the proposed rate is
6 economically justifiable without the proposed rate.
7 (8) A provider shall be allowed only 1 rate increase for each
8 class or type of service during any 12-month period.
9 (9) A provider shall not make a rate alteration under this
10 section until the rate has been restructured under section 304a.
11 (10) The commission shall exempt a provider from this section
12 and section 310(2) if it finds all of the following:
13 (a) The provider provides basic local exchange service or
14 basic local exchange and toll service to less than 250,000
15 end-users in this state.
16 (b) The provider offers to end-users single-party basic local
17 exchange service, tone dialing, toll access service, including
18 end-user common line services and dialing parity at a total price
19 of no higher than the amount charged as of May 1, 2000.
20 (c) The provider provides dialing parity access to operator,
21 telecommunication relay, and emergency services to all basic
22 local exchange end-users.
23 (11) A call made to a local calling area adjacent to the
24 caller's local calling area shall be considered a local call and
25 shall be billed as a local call.