SRC-LBB C.S.S.B. 1829 78(R)BILL ANALYSIS
Senate Research CenterC.S.S.B. 1829
By: Averitt
Business & Commerce
4/11/2003
Committee Report (Substituted)
DIGEST AND PURPOSE
Currently, when a telecommunications provider goes out of business there
is no provision for the Public Utility Commission (PUC) to name a company
to take over service in the area. This may create safety and reliability
concerns for the customers of the outgoing telecommunications provider if
they no longer have a provider of local phone service. C.S.S.B. 1829
authorizes PUC to name a provider of last resort to provide
telecommunications service to customers whose telecommunications provider
has gone out of business.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 54.251(b),Utilities Code, to provide that,
except as specifically determined otherwise by the Public Utility
Commission of Texas (PUC) under this subchapter or Subchapter G, the
holder of a certificate of convenience and necessity for an area has the
obligations of a provider of last resort regardless of whether another
provider has a certificate of operating authority or service provider
certificate of operating authority for that area.
SECTION 2.Amends Section 54.252.(a),Utilities Code by replacing the phrase
"unless the
commission issues a certificate that the present and future convenience
and necessity will not be adversely affected" with "except to the extent
otherwise ordered by the commission in accordance with this subchapter."
SECTION 3. Amends Section 54.253.(b) and (d), Utilities Code, as follows:
(b) Requires a telecommunications utility, before the utility ceases
operations or discontinues an optional service, in the manner required by
PUC, to give notice of the intended action to certain individuals and
entities.
(d) Prohibits the telecommunications utility from ceasing operations in
its certificated area unless PUC authorizes the utility to cease
operations and another provider of basic local telecommunications services
has adequate facilities and capacity to serve the customers in the
certificated area or the utility is an "exiting utility," as that term is
defined by Section 54.301, no other telecommunications utility has
facilities sufficient to provide basic local telecommunications services
in the defined geographic area, and the utility acts in good faith to
provide for a transition of the utility's existing basic local
telecommunications service customers to another holder of a certificate
for that area. Deletes language authorizing PUC to authorize a utility to
cease operations.
SECTION 4. Amends Chapter 54, Utilities Code, by adding Subchapter G, as
follows:
SUBCHAPTER G. PROVIDER OF LAST RESORT
Sec. 54.301. DEFINITIONS. Defines "exiting utility," "provider of last
resort," and "successor utility."
Sec. 54.302. PROVIDER OF LAST RESORT; FACILITIES-BASED PROVIDERS. (a)
Authorizes the holder of a certificate of convenience and necessity to
petition PUC for an order relieving the utility of the utility's
designation as the provider of last resort in that defined geographic
area, notwithstanding any other provision of this title, if a
telecommunications utility installs facilities to serve customers located
in a defined geographic area to provide telecommunications services before
the holder of the certificate of convenience and necessity installs
facilities to serve customers located in that defined geographic area.
(b) Requires PUC to relieve the holder of the certificate of convenience
and necessity of the obligations of service as the provider of last resort
for a defined geographic area, and requires PUC to designate the
facilities-based telecommunications utility as the provider of last
resort, if PUC makes certain determinations.
(c) Requires PUC to complete proceedings necessary to make the
determinations set forth in this section not later than the 91st day after
the date the petition is filed under Subsection (a).
Sec. 54.303. SUCCESSOR TELECOMMUNICATIONS UTILITY WHEN NO SUFFICIENT
FACILITIES EXIST. (a) Provides that when PUC obtains notice as required
under Section 54.253 or otherwise that a utility intends to become an
exiting utility and no other telecommunications utilities has facilities
sufficient to provide basic telecommunications service in that defined
geographic area, PUC is required to open a contested case proceeding for
the purpose of determining certain information.
(b) Provides that a customer within the defined geographic area to be
served by the successor utility is considered to have applied for service
from the successor utility on the effective date of that designation by
PUC. Provides that each right, privilege, and obligation of being a
customer of the successor utility applies to that customer and the
customer is subject to the successor utility's applicable terms of service
as specified in an applicable tariff or contract.
(c) Requires a customer within the defined geographic area to be deemed
to have applied for service from the successor utility upon the effective
date of the utility's designation as the successor utility by PUC.
Requires that such customer enjoy all of the rights, privileges and
obligations of being a customer of the successor utility, including but
not limited to, being subject to the successor utility's applicable terms
and conditions of service as specified in tariff or contract.
Sec. 54.304. ABANDONMENT OR CESSATION BY FACILITIES-BASED PROVIDER;
EMERGENCY RESTORATION. (a) Authorizes PUC, on its own motion or on the
petition of an interested party, to institute an expedited proceeding
under this section upon a finding by PUC that a holder of a certificate of
operating authority or service provider certificate of operating authority
is the predominant provider of basic local telecommunications service in a
defined geographic area and the holder provides such service using its own
facilities and where no other telecommunications utility has facilities
sufficient to provide basic local telecommunications service in that
defined geographic area, and the holder of the certificate of operating
authority or service provider certificate of operating authority has
ceased providing basic local telecommunications service to its customers
in a defined geographic area or abandoned the operation of its facilities
in a geographic area that are used to provide basic local
telecommunications service.
(b) Authorizes PUC, in a proceeding under this section, to declare an
emergency to exist and issue any orders necessary to protect the health,
safety and welfare of affected customers of the utility in order to
expedite the restoration and continuation of basic local
telecommunications service to affected customers. Authorizes such orders
to include an order to take certain actions.
(c) Authorizes PUC, in a proceeding under this section, to designate a
successor utility in accordance with Section 54.303.
Sec. 54.305. COMMISSION PARTICIPATION IN BANKRUPTCY PROCEEDINGS. (a)
Authorizes PUC, upon written notice that a certificated telecommunications
utility has filed a petition in bankruptcy or is the subject of an
involuntary petition in bankruptcy, to inform the appropriate court and
parties of PUC's interest in obtaining notice of proceedings.
(b) Authorizes PUC, within the time prescribed by the applicable
statutes, rules, and court orders, to intervene and participate in any
bankruptcy proceedings that affect customers or providers of
telecommunications services in this state.
(c) Authorizes the Office of the Public Utility Counsel (OPUC) to inform
the appropriate court and parties of OPUC's interest in obtaining notice
of proceedings. Authorizes OPUC to intervene and participate in any
bankruptcy proceeding on behalf of residential and small commercial
customers, within the time prescribed by the applicable statutes, rules,
and court orders.
SECTION 5. Amends ands reenacts Section 56.021, Utilities Code, as
amended by Chapters 651 and 1451, Acts of the 77th Legislature, Regular
Session 2001, as follows:
Sec. 56.021. Requires PUC to adopt and enforce rules requiring local
exchange companies to establish a universal service fund to perform
certain functions, including reimburse a successor utility under
subchapter G.
SECTION 6. Amends Section 56.023, Utilities Code, by adding Subsection
(e) to require a successor utility that is or becomes an eligible
telecommunications carrier under 47 U.S.C. Section 214(e)(2), as amended,
to be entitled to receive universal service fund distributions for costs
in accordance with Subchapter G.
SECTION 7. Amends Chapter 56, Utilities Code, by adding Subchapter G, as
follows:
SUBCHAPTER G. FUNDING FOR CERTAIN TELECOMMUNICATIONS UTILITIES.
Sec. 56.251. DEFINITION. Defines "successor utility."
Sec. 56.252. TELECOMMUNICATIONS UTILITIES ELIGIBLE TO RECEIVE FUNDING
UNDER THIS SUBCHAPTER. Authorizes a telecommunications utility to receive
funding under this subchapter only under certain conditions.
Sec. 56.253. DETERMINATION OF SUCCESSOR UTILITY'S COSTS TO BE RECOVERED.
(a) Requires PUC, at the time PUC designates the successor utility
pursuant to Section 54.303, to determine the extent to which the successor
utility should recover the costs the utility will incur in accepting and
establishing service to the affected service area.
(b) Requires PUC, in making the determination under Subsection (a), to
consider, relevant information, including the costs of acquiring and
restoring or upgrading the utilities facilities in the geographic area as
necessary to make the facilities compatible with those of the successor
utility in its other certificated areas, and comply with PUC quality of
service standards.
Sec. 56.254. RECOVERY OF COSTS. Requires the PUC order designating the
successor utility under Section 54.303 to authorize the successor utility
to recover those costs determined under Section 56.253. Authorizes these
costs to be amortized and recovered from the state universal service fund,
together with interest at the prevailing commercial lending rate by a
certain date.
SECTION 8. Effective date: September 1, 2003.