CHAPTER 175

SB 22 – FINAL VERSION

03/30/11 1197s

2011 SESSION

11-0998

06/09

SENATE BILL 22

AN ACT relative to alternative regulation of small incumbent local exchange carriers.

SPONSORS: Sen. Odell, Dist 8

COMMITTEE: Energy and Natural Resources

ANALYSIS

This bill modifies the requirements for use of an alternative regulation plan.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/30/11 1197s

11-0998

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT relative to alternative regulation of small incumbent local exchange carriers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

175:1 Alternative Regulation of Small Incumbent Local Exchange Carriers. Amend RSA 374:3-b to read as follows:

374:3-b Alternative Regulation of Small Incumbent Local Exchange Carriers.

I. In this section, “small incumbent local exchange carrier” means an incumbent local exchange carrier serving fewer than 25,000 access lines.

II. Solely at its option, a small incumbent local exchange carrier subject to rate of return regulation, and only such small incumbent local exchange carrier, may petition the public utilities commission for approval of an alternative form of regulation providing for regulation of such carrier’s retail operations comparable to the regulation applied to competitive local exchange carriers, subject to paragraph III, due to its status as carrier of last resort.

III. The commission shall approve the alternative regulation plan if it finds that:

(a) [Competitive wireline, wireless, or broadband service is available to a majority of the retail customers in each of the exchanges served by such small incumbent local exchange carrier;] The small incumbent local exchange carrier has 25 percent fewer access lines in service than it did on December 31, 2004;

(b) The plan provides for maximum stand-alone basic local service rates at levels that do not exceed the comparable rates charged by the largest incumbent local exchange carrier operating in the state and that do not increase by more than [10] 5 percent in each of the 4 years after a plan is approved with the exception that the plan may provide for additional rate adjustments, with public utilities commission review and approval, to reflect changes in federal, state, or local government taxes, mandates, rules, regulations, or statutes;

(c) [The plan promotes the offering of innovative telecommunications services in the state;

(d)] The plan meets intercarrier service obligations under other applicable laws;

[(e)] (d) The plan preserves universal access to affordable stand-alone basic telephone service; and

[(f)] (e) The plan provides that, if the small incumbent local exchange carrier operating under the plan fails to meet any of the conditions set out in this section, the public utilities commission may require the small incumbent local exchange carrier to propose modifications to the alternative regulation plan or return to rate of return regulation.

IV. The alternative regulation plan may allow the small incumbent local exchange carrier to offer bundled services that include combinations of telecommunications, data, video, and other services.

V. Following approval of the alternative regulation plan, the small incumbent local exchange carrier shall no longer be subject to rate of return regulation or be required to file affiliate contracts or seek prior commission approval of financings or corporate organizational changes, including, without limitation, mergers, acquisitions, corporate restructurings, issuance or transfer of securities, or the sale, lease, or other transfer of assets or control.

VI. Notwithstanding any other provision of law, competitive entry in the service territory of a small incumbent local exchange carrier which has petitioned for approval of an alternative regulation plan, is consistent with the public good for the specific purpose of RSA 374:22-g and approval of such competitive entry shall not require a hearing as required under RSA 374:26.

175:2 Effective Date. This act shall take effect upon its passage.

Approved: June 14, 2011

Effective Date: June 14, 2011