2011 Kentucky Revised Statutes CHAPTER 278 PUBLIC SERVICE COMMISSION 278.512 Legislative findings -- Exemption of telecommunications product or service from regulation.
KY Rev Stat § 278.512 (1996 through Reg Sess) What's This?
278.512 Legislative findings -- Exemption of telecommunications product or service
from regulation.
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The legislature finds and determines that:
(a) Competition and innovation have become commonplace in the provision of
certain telecommunications services in Kentucky and the United States;
(b) Flexibility in the regulation of the rates of providers of telecommunications
service is essential to the well-being of this state, its economy, and its citizens;
and
(c) The public interest requires that the Public Service Commission be authorized
and encouraged to formulate and adopt rules and policies that will permit the
commission, in the exercise of its expertise, to regulate and control the
provision of telecommunications services to the public in a changing
environment, giving due regard to the interests of consumers, the public, the
providers of the telecommunications services, and the continued availability
of good telecommunications service.
Notwithstanding any other statute to the contrary, the commission may, on its own
motion or upon motion of a telecommunications utility, after notice and opportunity
for comment, and hearing if requested, exempt to the extent it deems reasonable,
services or products related to telecommunications utilities or persons who provide
telecommunications services or products from any or all of the provisions of this
chapter, or may adopt alternative requirements for establishing rates and charges for
any service by a method other than that which is specified in this chapter, if the
commission finds by clear and satisfactory evidence that it is in the public interest.
No exemption shall be granted under this statute which preempts, without notice
and without hearing, if requested, the existing rights and obligations of a local
exchange company to serve a territory under a tariff approved by the Public Service
Commission. Any party which seeks an exemption shall certify to the commission
at the time of the filing that he has notified the affected local exchange company by
registered mail of the filing of a petition for exemption, and of the right of the local
exchange company to request a hearing within thirty (30) days of the notification.
In determining public interest, the commission shall consider the following:
(a) The extent to which competing telecommunications services are available
from competitive providers in the relevant market;
(b) The existing ability and willingness of competitive providers to make
functionally equivalent or substitute services readily available;
(c) The number and size of competitive providers of service;
(d) The overall impact of the proposed regulatory change on the continued
availability of existing services at just and reasonable rates;
(e) The existence of adequate safeguards to assure that rates for services regulated
pursuant to this chapter do not subsidize exempted services;
(f) The impact of the proposed regulatory change upon efforts to promote
universal availability of basic telecommunications services at affordable rates
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and upon the need of telecommunications companies subject to the
jurisdiction of the commission to respond to competition;
(g) Whether the exercise of commission jurisdiction inhibits a regulated utility
from competing with unregulated providers of functionally similar
telecommunications services or products;
(h) The overall impact on customers of a proposed change to streamline
regulatory treatment of small or nonprofit carriers; and
(i) Any other factors the commission may determine are in the public interest.
When the commission exempts a telecommunications product or service from all of
the provisions of this chapter, the investment, revenues, and expenses associated
with the service or product shall not be considered by the commission in setting
rates for the telecommunications company's regulated services. This provision shall
only apply to telecommunication products or services which the commission
exempts after July 14, 1992. Nothing herein shall prohibit the commission from
having access to and from examining the books and records of the exempted
product or service in order to determine compliance with the commission's rules
respecting allocation of cost when setting rates for the telecommunications
company's regulated services.
The Public Service Commission shall retain jurisdiction over persons and services
which are exempted from regulation under this section, or for which alternative
regulatory requirements have been established pursuant to this section. The
commission, on its own motion, or upon the motion of any person, after notice and
hearing, if requested, may vacate or modify any orders granting an exemption or
establishing alternative requirements if it determines by clear and satisfactory
evidence that the findings upon which the order was based are no longer valid, or
that the exemption or modifications are no longer in the public interest.
In granting or vacating exemptions, the Public Service Commission shall not be
discriminatory or preferential but may treat services and utilities differently if
reasonable and not detrimental to the public interest.
The provisions of KRS 367.150(8) and 367.160, concerning the role of the Attorney
General, shall apply to all proceedings under this section.
Effective: July 14, 1992
History: Created 1992 Ky. Acts ch. 306, sec. 1, effective July 14, 1992.
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