Current through Reg. 50, No. 13; March 28, 2025
(a) Application.
This section applies to any electing company, as the term is defined in the
Public Utility Regulatory Act (PURA) §58.002. Other sections applicable to
an electing company, include, but are not limited to, §
26.225 of this title (relating to
Requirements Applicable to Nonbasic Services for Chapter 58 Electing
Companies), §
26.226 of this title (relating to
Requirements Applicable to Pricing Flexibility for Chapter 58 Electing
Companies), and §
26.227 of this title (relating to
Procedures Applicable to Nonbasic Services and Pricing Flexibility for Basic
and Nonbasic Services for Chapter 58 Electing Companies).
(b) Purpose. The purpose of this section is
to establish requirements and procedures relating to the provision of basic
network services.
(c) Basic network
services.
(1) Services included in basic
network services. Unless reclassified pursuant to PURA §58.024, the
following are classified as basic network services pursuant to PURA
§58.051(a):
(A) Flat rate residential
local exchange telephone service, including primary directory listings and the
receipt of a directory and any applicable mileage or zone charges;
(B) Residential tone dialing
service;
(D) Service connection for
basic residential services;
(E)
Direct inward dialing service for basic residential services;
(F) Private pay telephone access
service;
(G) Call trap and trace
service;
(H) Access for all
residential and business end users to 9-1-1 service provided by a local
authority and access to dual party relay service;
(I) Mandatory residential extended area
service arrangements;
(J) Mandatory
residential extended metropolitan service or other mandatory residential
toll-free calling arrangements; and
(K) Residential caller identification
services if the customer to whom the service is billed is at least 65 years of
age.
(2) Separate tariff
requirement. Consistent with PURA §58.051(b), a basic network service
offered by an electing company to a customer as a component of a package or
other pricing flexibility offering shall also be offered by the electing
company as a separately tariffed service.
(3) Basic network service rates capped. The
rates for basic network services for an electing company may not increase
before September 1, 2005, except as provided for in subsection (f) of this
section relating to rate increases prior to the rate cap expiration.
(4) Basic network service rates charged. The
rates an electing company may charge during the period in which rates are
capped are the rates charged by the company on June 1, 1995, or, for a company
that elects after September 1, 1999, the rates charged on the date of its
election.
(5) Pricing flexibility.
An electing company may offer pricing flexibility for basic network services
pursuant to the requirements of §
26.226 of this title.
(6) At the election of the affected incumbent
local exchange company, the price for basic network service shall also include
the fees and charges for any mandatory extended area service arrangements,
mandatory expanded toll-free calling plans, and any other service included in
the definition of basic network service.
(7) A nonpermanent expanded toll-free local
calling service surcharge established by the commission to recover the costs of
mandatory expanded toll-free local calling service:
(A) is considered a part of basic network
service;
(B) may not be aggregated
under subsection (c)(6) of this section; and
(C) continues to be transitioned in
accordance with commission orders and substantive rules.
(d) Requirement for changes to
terms of a tariff offering. Prior to being offered, a change in the terms of a
basic network service tariff offering, such as rate increases and decreases of
a basic network service, must receive commission approval. Section
26.207 of this title (relating to
Form and Filing of Tariffs) and §
26.208 of this title (relating to
General Tariff Procedures) shall apply to tariffs offering a basic network
service.
(e) Establishment of a
long run incremental cost floor. For purposes of this section, long run
incremental cost (LRIC) shall be consistent with §
26.215 of this title (relating to
Long Run Incremental Cost Methodology for Dominant Certificated
Telecommunications Utility (DCTU) Services). Establishment of a LRIC floor
requires commission approval of a cost study prepared by an electing company
pursuant to the standards in §
26.214 of this title (relating to
Long Run Incremental Cost (LRIC) Methodology for Services provided by Certain
Incumbent Local Exchange Companies (ILECs) or §
26.215 of this title, as
applicable. After commission approval of a LRIC floor for a particular service,
an electing company may change the rates of that service in accordance with the
procedures in this section. The procedures in subsection (i) of this section,
relating to rate decreases for basic network services, may not be available to
an electing company for a service that does not have a LRIC floor.
(f) Rate increase prior to rate cap
expiration. For a four-year period following Chapter 58 election or until
September 1, 2005, whichever occurs later, an increase in the rate for a basic
network service is permitted only after commission approval and only within the
following parameters:
(1) A rate increase for
changes made by the Federal Communications Commission, as provided by PURA
§58.056;
(2) A rate increase
for companies with fewer than five million access lines that are complying with
infrastructure commitments, as provided by PURA §58.057;
(3) A rate group reclassification, as
provided by PURA §58.058.
(g) Procedure for a rate increase prior to
rate cap expiration.
(1) Prior to the rate
cap expiration, an electing company is required to file an application to
propose an increase in the rate for a basic network service. The application
shall refer to this section, shall provide sufficient documentation to
demonstrate that the rate increase meets the criteria prescribed in PURA
Chapter 58, shall describe the increase, and shall identify the classes of
customers and competitors to be affected by the electing company's application.
The application shall also include any tariff sheets reflecting the proposed
basic network service rate increase, as well as all data necessary to support
the application. The application shall include a copy of the text of any
proposed notice to customers. The proposed notice to customers shall comply
with §
26.208 of this title and shall
meet the criteria prescribed in PURA §58.059 and §53.103. The
application shall also state the electing company's preferred effective date,
which shall be no earlier than 90 days after completion of notice.
(2) The commission shall cause notice of the
application to be published in the
Texas Register. The
Texas Register notice shall state the intervention deadline,
which shall be no earlier than 40 days following publication of notice. After
publication of notice in the
Texas Register, the presiding
officer shall establish a deadline for the filing of a staff recommendation,
which shall be no earlier than five days following the intervention
deadline.
(3) Within 20 days after
filing of the application, the presiding officer shall notify the applicant if
material deficiencies exist in the application and if the proposed notice is
inadequate.
(4) Within 50 days
after filing of the application, the applicant shall file an affidavit
attesting to the fact that notice to customers was published in accordance with
the requirements of PURA §58.059 and §53.103. The affidavit shall
contain a copy of all notice given.
(5) Following receipt of a request for
intervention filed by an affected party, or on the recommendation of commission
staff, or on the commission's own motion, the commission may suspend the
effective date of the proposed rate increase and may hold a hearing. Within 185
days of the filing of a sufficient application, the commission shall issue an
order approving or modifying the rate increase or, alternatively, rejecting the
rate increase if it is not in compliance with this section and PURA
§§58.056, 58.057 or 58.058. Any order modifying or rejecting the
proposed rate increase shall specify why the proposed increase is not in
compliance with the applicable provisions of PURA §§58.056, 58.057 or
58.058 and the means by which the proposed increase may be brought into
compliance.
(h) Rate
increase after rate cap expiration. After a four-year period following Chapter
58 election or until September 1, 2005, whichever occurs later, a basic network
service rate increase may be made pursuant to PURA §58.060.
(i) Rate decrease. Consistent with PURA
§58.055(c), an electing company may decrease a rate for a basic service at
any time to an amount above the service's appropriate cost. If the electing
company has been required to perform or has elected to perform a long run
incremental cost study, the appropriate cost for the service is the service's
long run incremental cost.
(1) After
commission approval of a LRIC floor, an electing company shall follow the
procedures in this subsection to decrease a rate for a basic network service or
to change the tariff terms of a basic network service.
(2) An electing company shall file an
application to decrease the rate for or change the tariff terms of a basic
network service. On the same date, an electing company shall file one or more
tariff sheets to decrease a rate for or change the tariff terms of a basic
network service with the application and all data necessary to support the
application shall accompany the tariff sheets.
(3) The commission shall cause notice of the
application to be published in the
Texas Register. The
Texas Register notice shall state the intervention deadline,
which shall be no earlier than 15 days following publication of notice. On or
before five days after the intervention deadline, commission staff may file a
recommendation to suspend, docket or reject the application. If either a
request for intervention or a recommendation to docket is filed, the expedited
administrative procedures in this subsection shall no longer apply. If neither
an intervention request nor a staff recommendation to suspend, docket or reject
the application is filed, the tariff sheets shall be approved by the commission
effective ten days following the intervention deadline.
(j) Proprietary or confidential information.
(1) Information filed in accordance with this
section is presumed to be public information. An electing company has the
burden of establishing that information filed in accordance with this section
is proprietary or confidential.
(2)
Nothing in this subsection must be construed to change the presumption that
information filed in accordance with this rule is public information. An
electing company that intends to rely upon data it purports is proprietary or
confidential in support of an application made in accordance with this section
must file such data confidentially. An electing company that intends to rely
upon proprietary or confidential data has the burden of providing such data on
the same date the associated tariff sheets are filed. In the event an electing
company's proprietary or confidential data is not provided with the associated
tariff sheets, the procedural schedule will be adjusted day-for-day to reflect
the number of days the proprietary or confidential data is delayed.
(k) Additional notice requirement
for an electing company serving more than five million access lines. In
addition to the notice requirements of §
26.208 of this title and those
applicable to informational notice filings, an electing company serving more
than five million access lines in this state shall, until September 1, 2003:
(1) Comply with the following notice
requirements when proposing any changes in the generally available prices and
terms under which the electing company offers basic telecommunications services
regulated by the commission at retail rates to subscribers that are not
telecommunications providers, including:
(A)
Introduction of any new features or functions of basic services;
(B) Promotional offerings of basic services;
or
(C) Discontinuation of
then-current features or services.
(2) Notice shall be provided to the following
persons:
(A) A person who holds a certificate
of operating authority in the electing company's certificated area or areas;
or
(B) A person who has an
effective interconnection agreement with the electing company.
(3) The following timelines shall
apply to the additional notice requirement:
(A) If the electing company is required to
give notice to the commission, at the same time the company provides that
notice; or
(B) If the electing
company is not required to give notice to the commission, at least 45 days
before the effective date of a price change or 90 days before the effective
date of a change other than a price change, unless the commission determines
that the notice should not be given.
(l) Semi-annual notice for rates or terms of
service. Semi-annually, an electing company shall notify affected persons,
either by bill insert, bill message, or direct mail, that proposed changes in
the rates or terms of basic network services are regularly published in the
Texas Register through the Office of the Secretary of State.
Such notification shall also appear in the public information pages of all
telephone directories published in Texas. The notification shall identify the
Internet address for the Texas Register (www.sos.state.tx.us)
and shall provide a toll-free phone number for affected persons to request
direct notice from an electing company of proposed changes in the rates or
terms of service. For purposes of notice, affected persons include the
applicant's Texas customers, persons registered with the commission to offer
long distance service, and persons certificated by the commission to provide
local exchange telephone service.