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1995 SESSION

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HB 1956 Local exchange telephone companies.

Introduced by: George H. Heilig, Jr. | all patrons    ...    notes | add to my profiles

SUMMARY:

Local exchange telephone service. Authorizes the State Corporation Commission (SCC) to grant certificates of public convenience and necessity (beginning January 1, 1996) to applicants proposing to furnish local exchange telephone service in the service territory of another certificate holder (the “incumbent”). Under current law, companies other than the incumbent telephone company are prohibited from providing local exchange service.

The bill requires the SCC, before granting a certificate, to (i) consider whether such action reasonably protects the affordability of basic local exchange service and assures the continuation of quality service and (ii) find that such action will not unreasonably prejudice or disadvantage any class of telephone customers or service providers, and is in the public interest.

Under the provisions of the bill, if the SCC issues a certificate to a new entrant to provide local exchange service, it is required to adopt a form of regulation for the new entrant's local exchange services and for the incumbent (upon application pursuant to § 56-235.5) that does not regulate the earnings of either (pursuant to guidelines and standards prescribed in the legislation). The SCC, however, has the authority to modify the form of regulation if it finds that competition or the potential for competition no longer effectively regulates the price of a service. The SCC is also required to promulgate rules to implement the bill's provisions in the manner prescribed in the legislation.


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