Senate Bill sb2232

    Florida Senate - 2005                                  SB 2232

    By Senator Constantine





    22-1209B-05

  1                      A bill to be entitled

  2         An act relating to regulation of telephone

  3         rates; amending s. 364.051, F.S.; providing

  4         that evidence of natural disaster damage to the

  5         equipment and facilities of a local exchange

  6         telecommunications company constitutes a

  7         compelling showing of changed circumstances to

  8         justify a rate increase; requiring the Public

  9         Service Commission to verify the costs and

10         expenses for repairing, restoring, or replacing

11         damaged lines, plants, or facilities; requiring

12         the commission to determine whether the costs

13         and expenses are reasonable; providing that the

14         commission may authorize increased rates or add

15         a separate line-item charge for certain

16         customers; providing for a rate increase and

17         providing the maximum number of months the

18         increased rate may be imposed; requiring the

19         company to file a tariff; providing for an

20         effective date.

21  

22  Be It Enacted by the Legislature of the State of Florida:

23  

24         Section 1.  Subsection (4) of section 364.051, Florida

25  Statutes, is amended to read:

26         364.051  Price regulation.--

27         (4)(a)  Notwithstanding the provisions of subsection

28  (2), any local exchange telecommunications company that

29  believes circumstances have changed substantially to justify

30  any increase in the rates for basic local telecommunications

31  services may petition the commission for a rate increase, but

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    Florida Senate - 2005                                  SB 2232
    22-1209B-05




 1  the commission shall grant the such petition only after an

 2  opportunity for a hearing and a compelling showing of changed

 3  circumstances. The costs and expenses of any government

 4  program or project required in part II may shall not be

 5  recovered under this subsection unless the such costs and

 6  expenses are incurred in the absence of a bid and subject to

 7  carrier-of-last-resort obligations as provided for in part II.

 8  The commission shall act upon the any such petition within 120

 9  days after of its filing.

10         (b)  For purposes of this section, evidence of damage

11  to the lines, plants, or facilities of a local exchange

12  telecommunications company subject to carrier-of-last-resort

13  obligations which results from a natural disaster, such as a

14  storm declared to be a hurricane by the National Hurricane

15  Center, constitutes a compelling showing of changed

16  circumstances. After such an event, the commission shall

17  verify the costs and expenses of the company relating to

18  repairing, restoring, or replacing the damaged lines, plants,

19  or facilities. The commission shall determine whether the

20  costs and expenses are reasonable under the circumstances for

21  the natural disaster. The commission may order the company to

22  increase rates or add a separate line-item charge for a period

23  of no more than 12 months to the bills of the company's retail

24  basic local telecommunications service customers, its retail

25  nonbasic telecommunications service customers, and its

26  wholesale loop unbundled network element customers. The

27  company must file tariffs showing the rate increase or the

28  line-item charge and the class of customers to be charged. The

29  commission may determine the amount of any increase regardless

30  of whether any or all of the verified costs and expenses are

31  recovered.

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    Florida Senate - 2005                                  SB 2232
    22-1209B-05




 1         Section 2.  This act shall take effect upon becoming a

 2  law.

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 4            *****************************************

 5                          SENATE SUMMARY

 6    Provides that evidence of natural-disaster damage to the
      equipment or facilities of a local exchange
 7    telecommunications company constitutes a compelling
      showing of changed circumstances to justify a rate
 8    increase. Requires the Public Service Commission to
      verify the costs and expenses for repairing, restoring,
 9    or replacing damaged lines, plants, or facilities.
      Requires the commission to determine whether the costs
10    and expenses are reasonable. Provides that the commission
      may authorize increased rates or add a separate line-item
11    charge for certain customers. Provides for a rate
      increase and the maximum number of months the increased
12    rate may be imposed. Requires the company to file a
      tariff.
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