The Florida Senate

364.164  Competitive market enhancement.--

(1)  Each local exchange telecommunications company may, after July 1, 2003, petition the commission to reduce its intrastate switched network access rate in a revenue-neutral manner. The commission shall issue its final order granting or denying any petition filed pursuant to this section within 90 days. In reaching its decision, the commission shall consider whether granting the petition will:

(a)  Remove current support for basic local telecommunications services that prevents the creation of a more attractive competitive local exchange market for the benefit of residential consumers.

(b)  Induce enhanced market entry.

(c)  Require intrastate switched network access rate reductions to parity over a period of not less than 2 years or more than 4 years.

(d)  Be revenue neutral as defined in subsection (7) within the revenue category defined in subsection (2).

(2)  If the commission grants the local exchange telecommunications company's petition, the local exchange telecommunications company is authorized, the requirements of s. 364.051(3) notwithstanding, to immediately implement a revenue category mechanism consisting of basic local telecommunications service revenues and intrastate switched network access revenues to achieve revenue neutrality. The local exchange telecommunications company shall thereafter, on 45 days' notice, adjust the various prices and rates of the services within its revenue category authorized by this section once in any 12-month period in a revenue-neutral manner. An adjustment in rates may not be offset entirely by the company's basic monthly recurring rate. All annual rate adjustments within the revenue category established pursuant to this section must be implemented simultaneously and must be revenue neutral. The commission shall, within 45 days after the rate adjustment filing, issue a final order confirming compliance with this section, and such an order shall be final for all purposes.

(3)  Any filing under this section must be based on the company's most recent 12 months' pricing units in accordance with subsection (7) for any service included in the revenue category established under this section. The commission shall have the authority only to verify the pricing units for the purpose of ensuring that the company's specific adjustments, as authorized by this section, make the revenue category revenue neutral for each filing. Any discovery or information requests under this section must be limited to a verification of historical pricing units necessary to fulfill the commission's specific responsibilities under this section of ensuring that the company's rate adjustments make the revenue category revenue neutral for each annual filing.

(4)  This section does not affect the local exchange telecommunications company's exemptions pursuant to s. 364.051(1)(c) or authorize any local exchange telecommunications company to increase the cost of local exchange services to any person providing services under s. 364.3375

(5)  As used in this section, the term "parity" means that the local exchange telecommunications company's intrastate switched network access rate is equal to its interstate switched network access rate in effect on January 1, 2003, if the company has more than 1 million access lines in service. If the company has 1 million or fewer access lines in service, the term "parity" means that the company's intrastate switched network access rate is equal to 8 cents per minute. This section does not prevent the company from making further reductions in its intrastate switched network access rate, within the revenue category established in this section, below parity on a revenue-neutral basis, or from making other revenue-neutral rate adjustments within this category.

(6)  As used in this section, the term "intrastate switched network access rate" means the composite of the originating and terminating network access rate for carrier common line, local channel/entrance facility, switched common transport, access tandem switching, interconnection charge, signaling, information surcharge, and local switching.

(7)  As used in this section, the term "revenue neutral" means that the total revenue within the revenue category established pursuant to this section remains the same before and after the local exchange telecommunications company implements any rate adjustments under this section. Calculation of revenue received from each service before the implementation of any rate adjustment must be made by multiplying the then-current rate for each service by the most recent 12 months' actual pricing units for each service within the category, without any adjustments to the number of pricing units. Calculation of revenue for each service to be received after implementation of rate adjustments must be made by multiplying the rate to be applicable for each service by the most recent 12 months' actual pricing units for each service within the category, without any adjustments to the number of pricing units. Billing units associated with pay telephone access lines and Lifeline service may not be included in any calculation under this subsection.

(8)  If either the Federal Communications Commission or the commission issues a final order determining that voice-over-Internet protocol service or a functionally equivalent service shall not be subject to the payment of switched network access rates pursuant to a local exchange telecommunications company tariff or interconnection agreement or other law, the provisions of subsection (2) shall immediately become operative as if the commission had granted a petition pursuant to subsection (1). Any local exchange telecommunications company subject to this section shall be authorized to reduce its switched network access rates to the company's authorized local reciprocal compensation rates in a revenue-neutral manner, pursuant to subsections (2)-(7), in the shortest remaining timeframe allowable under this section.

History.--s. 15, ch. 2003-32.