An Act To Make a Standard Alternative Form of Regulation Available to Rural Telephone Companies
Maine Legislature, Session 122, LD 1675
Committee: Utilities and Energy
Sponsors: HOBBINS

Legislative Document 
No. 1675 
S.P.622 
In Senate, May 17, 2005 
An Act To Make a Standard Alternative Form of Regulation 
Available to Rural Telephone Companies 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator HOBBINS of York. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 3S-A MRSA §9106 is enacted to read: 
S9106. 
Standard alternative form of regulation for rural 
telephone companies 
Notwithstanding section 9103, the commission shall adopt an 
alternative form of regulation proposed by a 
rural telephone 
company, 
as defined in the federal Telecommunications Act of 
1996, 47 United States Code, Section 153, if the alternative form 
of regulation has a period of not less than 5 years and contains 
the following provisions. 
1. 
Retail rates. 
The rural telephone company may establish 
rates, without the need for commission review and approval, for 
any local basic service interexchange service, optional calling 
features 
and other services provided by the rural 
telephone 
company, if the local basic service rates do not exceed the local 
basic 
service 
rates 
of 
exchanges 
of 
the 
largest 
nonrural 
incumbent local exchange carrier, 
as 
defined in the 
federal 
Telecommunications Act of 1996, in the State that have basic 
service calling areas of a similar size. 
2. 
Access 
rates. 
The 
rural 
telephone 
company 
shall 
establish intrastate access rates that meet the requirements of 
section 7101-B. 
3. 
Universal service support. 
The rural telephone company 
may choose either: 
A. 
To not receive support from the state universal service 
fund for purposes of meeting its revenue requirement; or 
B. 
To continue to receive the same level of support from 
the state universal service fund as 
the rural telephone 
company 
was 
rece~v~ng at the 
time 
of 
adoption 
of 
the 
alternative form of regulation. 
The level of support is 
subject to a percentage adjustment equal to the percentage 
of any change in comparable local basic service rates of the 
largest nonrural incumbent local exchange carrier. 
In the case of either paragraph A or B, 
the rural telephone 
company is entitled to receive support that is not related to its 
revenue requirement to the same extent as other rural telephone 
companies. 
4. 
Exogenous 
events. 
The 
rural 
telephone 
company 
may 
increase its local basic service rates above those of the largest 
nonrural incumbent local exchange carrier and receive an increase 
Page l-LR1974(l) 
in its revenue 
requirement support 
from 
the state universal 
service 
fund 
as 
may 
be 
necessary to offset the effects of 
exogenous 
events 
beyond 
the 
control 
of 
the 
rural 
telephone 
company 
to 
the extent 
changes 
in the 
rates of the largest 
nonrural incumbent local exchange carrier do not compensate for 
such exogenous events. 
5. 
Service qpality. 
The rural telephone company is subject 
to service quality standards 
and 
an 
accompanying enforcement 
mechanism that are similar to those applicable to the largest 
nonrural incumbent local exchange carrier. 
The commission may not adopt provisions for an alternative 
form of regulation that are inconsistent with the provisions of 
this section without the rural telephone company's consent. 
SUMMARY 
This bill enacts law governing the alternative forms 
of 
regulation that may be adopted for telephone companies, so as to 
prescribe 
a 
standard 
form 
of 
streamlined 
alternative 
rate 
regulation for the small rural telephone companies of the State. 
The bill allows a rural telephone company the option of placing 
itself under 
the 
standard alternative 
form 
of 
regulation by 
proposing 
an 
alternative 
form 
of 
regulation 
to 
the 
Public 
Utilities 
Commission 
that 
contains 
the 
standard 
prov~s~ons 
established by the Legislature in this law. 
If the proposal 
conforms to the standard alternative form of regulation, 
the 
commission must adopt the proposal and may not adopt provisions 
that are inconsistent with the standard provisions in the law, 
unless the rural telephone company consents. 
The bill allows the rural telephone company to establish its 
rates for local basic service if the rates do not exceed the 
rates of the largest nonrural telephone company in the State. 
Also, the bill allows the rural telephone company to establish 
rates for interexchange services, optional calling features and 
other services that are generally directive with regard to rates 
for intrastate access services. 
The bill requires the company to 
comply with current law with regard to rates for intrastate 
access services. 
The bill requires the rural telephone company 
to be subject to service quality requirements and enforcement 
mechanisms similar to those applicable to the largest nonrural 
telephone company in the State under its alternative form of 
regulation.