Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 1 - PUBLIC UTILITIES AND CARRIERS (§§ 23-1-101 — 23-19-210) › Chapter 17 - TELEPHONE AND TELEGRAPH COMPANIES (§§ 23-17-101 — 23-17-517) › Subchapter 4 - TELECOMMUNICATIONS REGULATORY REFORM (§§ 23-17-401 — 23-17-418) › Section 23-17-412 - Optional alternative regulation of eligible telecommunications companies

(a)
(1)
Telephone companies that file notice with the Arkansas Public Service Commission of an election to be regulated in accordance with the provisions of this section are authorized to determine and account for their respective revenues and expenses, including depreciation expenses, pursuant to generally accepted accounting principles and, except as provided in this section, shall be subject to regulation only in accordance with this section and shall not be subject to any rate review or rate of return regulation by the commission.
(2)
The companies shall file rate lists for their telecommunications services which rates shall be effective upon filing, except the rates for basic local exchange services and switched-access services, which rates shall be effective upon compliance and in accordance with the procedures in this section.
(3)
Any service that is not a telecommunications service is not subject to regulation by the commission, and rates for the services need not be filed with the commission.
(b)
On the effective date of an election pursuant to this section, the tariffed rates of a company electing to be subject to the provisions of this section are deemed just and reasonable and shall continue to be deemed just and reasonable as long as any increases in the company's tariffed rates are in accordance with the provisions of this section.
(c)
(1)
The company may increase its basic local exchange service rates after sixty (60) days' notice to all affected subscribers.
(2)
Rates for basic local exchange services may be reduced and be effective immediately upon filing or at a later time specified in the filing.
(3)
Notice by the company to its subscribers shall be by regular mail and may be included in regular subscriber billings and shall include the following:
(A)
A schedule of the proposed basic local exchange service rate change;
(B)
The effective date of the proposed basic local exchange service rate change; and
(C)
An explanation of the right of the subscriber to petition the commission for a public hearing on the rate increase and the procedure necessary to petition.
(d)
The subscriber petitions provided for in this section shall be prepared as follows:
(1)
Form.
(A)
The petition shall be headed by a caption, which shall contain:
(i)
The heading, "The Arkansas Public Service Commission";
(ii)
The name of the company or cooperative seeking a change in basic local exchange service rates; and
(iii)
The relief sought.
(B)
A petition substantially in compliance with the form set forth in this subsection shall not be deemed invalid due to minor errors in its form;
(2)
Body.
The body of the petition shall consist of three (3) numbered paragraphs, if applicable, as follows:
(A)
Allegations of Facts.
The allegations of facts shall be stated in the form of ultimate facts, without unnecessary detail, upon which the right to relief is based. The allegations shall be stated in numbered subparagraphs as necessary for clarity;
(B)
Relief Sought.
The petition shall contain a brief statement of the amount of the change in basic local exchange service rates that is objected to or other relief sought; and
(C)
Petitioners.
The petition shall contain the name, address, telephone number, and signature of each subscriber signing the petition. Only the subscriber in whose name the telephone service is listed shall be counted as a petitioner. Every signature must be dated and shall have been affixed to the petition within sixty (60) days preceding its filing with the commission.
(e)
(1)
Exclusive of basic local exchange service rate changes pursuant to §
23-17-404
, the commission shall have authority to review basic local exchange service rates set by the company only upon a formal petition that complies with subsection (d) of this section and that is signed by at least fifteen percent (15%) of all affected subscribers.
(2)
If a proper petition is presented to the commission within sixty (60) days after the date of notice of the rate change was sent to affected subscribers, the commission shall accept and file the petition and, upon reasonable notice, may suspend the rates and charges at issue during the pendency of the proceedings and reinstate the rates and charges previously in effect and shall hold and complete a hearing thereon within ninety (90) days after filing to determine if the rates as proposed are just and reasonable.
(3)
Within sixty (60) days after close of the hearing, the commission may enter an order adjusting the rates and charges at issue, except that the commission may not set any rate or charge below the basic local exchange service rates in effect at the time the new rate at issue was proposed.
(4)
A company subject to this section shall not increase its rates without the approval of the commission for six (6) months after the date the commission enters the order.
(5)
If the commission fails to enter any order within sixty (60) days after the close of the hearing, the petition shall be deemed denied and the rates and charges shall be deemed approved for all purposes, including the purposes of appeal.
(f)
Rates for switched-access services of companies that are subject to this section shall be determined pursuant to §
23-17-407
except as provided in subsection (l) of this section and §
23-17-404
.
(g)
A company subject to this section may at any time file an application with the commission requesting the commission to prescribe just and reasonable rates for the company. Any rate so set may thereafter be adjusted as provided in this section.
(h)
Nothing herein shall restrict any customer's right to complain to the commission regarding quality of service or the commission's authority to enforce quality-of-service rules and standards that are equally imposed on all telecommunications providers.
(i)
(1)
(A)
The commission on its own motion may review basic local exchange service rates of any company subject to this section if the company has increased the rates by more than the greater of fifteen percent (15%) or two dollars ($2.00) per access line per month within any consecutive twelve-month period, excluding rate increases:
(i)
Ordered by the commission pursuant to §
23-17-404
;
(ii)
Resulting from the provision of extended area services required as the result of customer election under commission rules;
(iii)
Resulting from ETC increases in response to the Federal Communications Commission benchmark legislation, rules, or procedures; or
(iv)
Necessary to meet a local rate threshold for purposes of receiving maximum support from a federal universal support mechanism or program.
(B)
Unless a company provides an affidavit to the Arkansas Public Service Commission stating the separately identified language requirements of this subdivision (i)(1)(B) would cause a hardship based on the billing system limitations of the company:
(i)
A local service rate increase under subdivision (i)(1)(A)(iii) of this section may be identified separately on the customer's bill with descriptive language as increases mandated to comply with the Federal Communications Commission benchmark legislation rules; and
(ii)
The Federal Communication Commission's Access Recovery Charge may be identified separately with appropriate descriptive language on the customer's bill.
(2)
The commission shall hold and complete a hearing on the rates within ninety (90) days after first giving notice of the hearing to the company to determine if the rates as proposed are just and reasonable.
(3)
Within sixty (60) days after close of the hearing, the commission may enter an order adjusting the rates and charges at issue, except that the commission may not require the company to set any rate or charge below the greater of the rates in effect at the time of the filing of the increase or the actual cost of providing such service as established by evidence received at the hearing.
(4)
In the order, the commission may order a refund of amounts collected in excess of the rates and charges as approved at the hearing, which may be paid as a credit against billings for future services.
(5)
If the commission fails to enter any order within sixty (60) days after the close of the hearing, the rates and charges shall be deemed approved for all purposes, including for purposes of appeal.
(j)
(1)
For purposes of this section, the commission may not require a company that is subject to this section to set its rates below the actual cost of the company providing the service.
(2)
If requested by the company, the actual cost shall be determined to include a ratable portion of administrative expenses and overhead incurred by the company in its operations and the appropriate amortization of previously deferred accounting costs.
(k)
No telephone company subject to this section may change its basic local exchange service rates within ninety (90) days after entry of a final order adjusting the rate pursuant to subsections (g) and (i) of this section.
(l)
Notwithstanding the provisions of this section, if at any time following the notice provided under this section another telecommunications provider is providing basic local exchange service or switched-access service within a local exchange area of the company subject to this section, the company that is subject to this section may determine its rates for basic local exchange service and switched-access service within any exchange in which another telecommunications provider is providing these services in the same manner that it determines its rates for other services pursuant to subsection (a) of this section.
(m)
A telephone company electing to be regulated in accordance with this section may package any of its services with any other service it or its affiliates offer, with or without a discount, provided that basic local exchange services and switched-access services may be purchased separately at the rates that are established in accordance with this section.
Amended by Act 2013, No. 442,§ 23, eff. 3/19/2013.
Acts 1997, No. 77, § 12; 2003, No. 1764, § 2; 2007, No. 385, §§ 7-9.