2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 30 - Alternative Form of Regulation of Telecommunications Services
Telecommunications Services -


                                CHAPTER 30
                      ALTERNATIVE FORM OF REGULATION
                      OF TELECOMMUNICATIONS SERVICES

     Sec.
     3001.  Declaration of policy (Repealed).
     3002.  Definitions (Repealed).
     3003.  Local exchange telecommunications company request for
            alternative regulation and network modernization
            implementation plan (Repealed).
     3004.  Commission review and approval of petition and plan
            (Repealed).
     3005.  Competitive services (Repealed).
     3006.  Streamlined form of rate regulation (Repealed).
     3007.  Determination of access charges (Repealed).
     3008.  Interexchange telecommunications carrier (Repealed).
     3009.  Additional powers and duties (Repealed).
     3010.  (Reserved).
     3011.  Declaration of policy.
     3012.  Definitions.
     3013.  Continuation of commission-approved alternative
            regulation and network modernization plans.
     3014.  Network modernization plans.
     3015.  Alternative forms of regulation.
     3016.  Competitive services.
     3017.  Access charges.
     3018.  Interexchange telecommunications carriers.
     3019.  Additional powers and duties.

        Enactment.  Chapter 30 was added July 8, 1993, P.L.456,
     No.67, effective immediately.
        Expiration.  Section 4 of Act 67 of 1993 provided that
     Chapter 30 shall expire on December 31, 2003, unless sooner
     reenacted by the General Assembly.
     § 3001.  Declaration of policy (Repealed).

        2004 Repeal Note.  Section 3001 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3002.  Definitions (Repealed).

        2004 Repeal Note.  Section 3002 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3003.  Local exchange telecommunications company request for
                alternative regulation and network modernization
                implementation plan (Repealed).

        2004 Repeal Note.  Section 3003 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3004.  Commission review and approval of petition and plan
                (Repealed).

        2004 Repeal Note.  Section 3004 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3005.  Competitive services (Repealed).

        2004 Repeal Note.  Section 3005 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3006.  Streamlined form of rate regulation (Repealed).

        2004 Repeal Note.  Section 3006 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3007.  Determination of access charges (Repealed).

        2004 Repeal Note.  Section 3007 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3008.  Interexchange telecommunications carrier (Repealed).

        2004 Repeal Note.  Section 3008 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3009.  Additional powers and duties (Repealed).

        2004 Repeal Note.  Section 3009 was repealed November 30,
     2004, P.L.1398, No.183, effective immediately.
     § 3010.  (Reserved).

        2004 Amendment.  Section 3010 (Reserved) was added November
     30, 2004, P.L.1398, No.183, effective immediately.
     § 3011.  Declaration of policy.
        The General Assembly finds and declares that it is the policy
     of this Commonwealth to:
            (1)  Strike a balance between mandated deployment and
        market-driven deployment of broadband facilities and advanced
        services throughout this Commonwealth and to continue
        alternative regulation of local exchange telecommunications
        companies.
            (2)  Maintain universal telecommunications service at
        affordable rates while encouraging the accelerated provision
        of advanced services and deployment of a universally
        available, state-of-the-art, interactive broadband
        telecommunications network in rural, suburban and urban
        areas, including deployment of broadband facilities in or
        adjacent to public rights-of-way abutting public schools,
        including the administrative offices supporting public
        schools, industrial parks and health care facilities.
            (3)  Ensure that customers pay only reasonable charges
        for protected services which shall be available on a
        nondiscriminatory basis.
            (4)  Ensure that rates for protected services do not
        subsidize the competitive ventures of telecommunications
        carriers.
            (5)  Provide diversity in the supply of existing and
        future telecommunications services and products in
        telecommunications markets throughout this Commonwealth by
        ensuring that rates, terms and conditions for protected
        services are reasonable and do not impede the development of
        competition.
            (6)  Ensure the efficient delivery of technological
        advances and new services throughout this Commonwealth in
        order to improve the quality of life for all Commonwealth
        residents.
            (7)  Encourage the provision of telecommunications
        products and services that enhance the quality of life of
        people with disabilities.
            (8)  Promote and encourage the provision of competitive
        services by a variety of service providers on equal terms
        throughout all geographic areas of this Commonwealth without
        jeopardizing the provision of universal telecommunications
        service at affordable rates.
            (9)  Encourage the competitive supply of any service in
        any region where there is market demand.
            (10)  Encourage joint ventures between local exchange
        telecommunications companies and other entities where such
        joint ventures accelerate, improve or otherwise assist a
        local exchange telecommunications company in implementing its
        network modernization plan.
            (11)  Establish a bona fide retail request program to
        aggregate and make advanced services available in areas where
        sufficient market demand exists and to supplement existing
        network modernization plans.
            (12)  Promote and encourage the provision of advanced
        services and broadband deployment in the service territories
        of local exchange telecommunications companies without
        jeopardizing the provision of universal service.
            (13)  Recognize that the regulatory obligations imposed
        upon the incumbent local exchange telecommunications
        companies should be reduced to levels more consistent with
        those imposed upon competing alternative service providers.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3011.
     § 3012.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Advanced service."  A retail telecommunications service
     that, regardless of transmission medium or technology, is
     capable of supporting a minimum speed of 200 kilobits per second
     (Kbps) in at least one direction at the network demarcation
     point of the customer's premises.
        "Aggregator telephone."  A telephone which is made available
     to the transient public, customers or patrons, including, but
     not limited to, coin telephones, credit card telephones and
     telephones located in hotels, motels, hospitals and
     universities.
        "Alternative form of regulation."  A form of regulation of
     telecommunications services other than the traditional rate base
     or rate of return regulation, including a streamlined form of
     regulation, as approved by the commission.
        "Alternative service provider."  An entity that provides
     telecommunications services in competition with a local exchange
     telecommunications company.
        "Bona fide retail request."  A written request for service
     which meets the requirements of section 3014(c) (relating to
     network modernization plans), is received by a local exchange
     telecommunications company and through which end users commit to
     subscribe to an advanced service.
        "Bona fide retail request program."  A program established by
     a local exchange telecommunications company pursuant to section
     3014(c) (relating to network modernization plans).
        "Broadband."  A communication channel using any technology
     and having a bandwidth equal to or greater than 1.544 megabits
     per second (Mbps) in the downstream direction and equal to or
     greater than 128 kilobits per second (Kbps) in the upstream
     direction.
        "Broadband availability."  Access to broadband service by a
     retail telephone customer of a local exchange telecommunications
     company.
        "Broadband Outreach and Aggregation Program."  A program
     established by the Department of Community and Economic
     Development pursuant to section 3014(i) (relating to network
     modernization plans).
        "Business Attraction or Retention Program."  A program
     established by a local exchange telecommunications company
     pursuant to section 3014(d) (relating to network modernization
     plans).
        "Central office."  A local exchange telecommunications
     company switch used to provide local exchange telecommunications
     service.
        "Community."  Those customers of a local exchange
     telecommunications company served by an existing or planned
     remote terminal or, where no remote terminal exists or is
     planned, a central office switch.
        "Competitive service."  A service or business activity
     determined to be competitive by the commission on or prior to
     December 31, 2003, and a service or business activity determined
     or declared to be competitive pursuant to section 3016 (relating
     to competitive services).
        "Department."  The Department of Community and Economic
     Development of the Commonwealth.
        "Education Technology Fund" or "E-Fund."  The fund
     established under section 3015(d) (relating to alternative forms
     of regulation).
        "Education Technology Program."  The program established by
     the Department of Education pursuant to section 3014(j)
     (relating to network modernization plans).
        "Eligible telecommunications carrier."  A carrier designated
     by the Pennsylvania Public Utility Commission pursuant to 47 CFR
     54.201 (relating to definition of eligible telecommunications
     carriers, generally) or successor regulation as eligible to
     receive support from the Federal Universal Service Fund.
        "Eligible telecommunications customer."  A customer of an
     eligible telecommunications carrier who qualifies for Lifeline
     service discounts pursuant to the requirements of 47 CFR 54.409
     (relating to consumer qualification for Lifeline) or successor
     regulation.
        "Fund."  The Broadband Outreach and Aggregation Fund
     established under section 3015(c) (relating to alternative forms
     of regulation).
        "Gross Domestic Product Price Index" or "GDP-PI."  The Gross
     Domestic Product Fixed Weight Price Index as calculated by the
     United States Department of Commerce or a successor price index.
        "Health care facility."  The term shall have the same meaning
     given to it in the act of July 19, 1979 (P.L.130, No.48), known
     as the Health Care Facilities Act.
        "Industrial development agency."  An industrial development
     agency under the act of May 17, 1956 (1955 P.L.1609, No.537),
     known as the Pennsylvania Industrial Development Authority Act,
     that has been certified by the Pennsylvania Industrial
     Development Authority under section 5.2 of that act.
        "Inflation offset."  The part of the price change formula in
     the price stability mechanism that reflects an offset to the
     Gross Domestic Product Price Index or Successor Price Index.
        "Interexchange services."  The transmission of interLATA or
     intraLATA toll messages or data outside the local calling area.
        "Interexchange telecommunications carrier."  A carrier other
     than a local exchange telecommunications company authorized by
     the commission to provide interexchange services.
        "Lifeline service."  A discounted rate local service
     offering, as defined in 47 CFR 54.401 (relating to Lifeline
     defined) or successor regulation, but excluding any offering
     funded in part by Federal Universal Service Fund Tier Three
     funding under 47 CFR 54.403 (relating to Lifeline support
     amount) or successor regulation.
        "Local development district."  A multicounty economic and
     community development organization established to provide
     regional planning and development services to improve the
     economy and quality of life in a particular region through a
     variety of activities, including, but not limited to, the
     fostering of public and private partnerships and providing
     assistance to businesses.
        "Local exchange telecommunications company."  An incumbent
     carrier authorized by the commission to provide local exchange
     telecommunications services. The term includes a rural
     telecommunications carrier and a nonrural telecommunications
     carrier.
        "Local exchange telecommunications service."  The
     transmission of messages or communications that originate and
     terminate within a prescribed local calling area.
        "Network modernization plan."  A plan for the deployment of
     broadband service by a local exchange telecommunications company
     under this chapter or any prior law of this Commonwealth.
        "Noncompetitive service."  A regulated telecommunications
     service or business activity that has not been determined or
     declared to be competitive.
        "Nonprotected service."  Any telecommunications service
     provided by a local exchange telecommunications company that is
     not a protected service.
        "Nonrural telecommunications carrier."  A local exchange
     telecommunications company that is not a rural telephone company
     as defined in section 3 of the Telecommunications Act of 1996
     (Public Law 104-104, 110 Stat. 56).
        "Optional calling plan."  A discounted toll plan offered by
     either a local exchange telecommunications company or an
     interexchange telecommunications carrier.
        "Political subdivision."  Any county, city, borough,
     incorporated town, township, municipality, municipal authority
     or county institution district.
        "Price stability mechanism."  A formula which may be included
     in a commission-approved alternative form of regulation plan
     that permits rates for noncompetitive services to be adjusted
     upward or downward.
        "Protected service."  The following telecommunications
     services provided by a local exchange telecommunications company
     unless the commission has determined the service to be
     competitive:
            (1)  Service provided to residential consumers or
        business consumers that is necessary to complete a local
        exchange call.
            (2)  Touch-tone service.
            (3)  Switched access service.
            (4)  Special access service.
            (5)  Ordering, installation, restoration and
        disconnection of these services.
        "Remote terminal."  A structure located outside of a central
     office which houses electronic equipment and which provides
     transport for telecommunications services to and from a central
     office.
        "Rural telecommunications carrier."  A local exchange
     telecommunications company that is a rural telephone company as
     defined in section 3 of the Telecommunications Act of 1996
     (Public Law 104-104, 110 Stat. 56).
        "School entity."  An intermediate unit, school district,
     joint school district, area vocational-technical school,
     independent school, licensed private academic school, accredited
     school and any other public or nonpublic school serving students
     in any grade from kindergarten through 12th grade.
        "Special access service."  Service provided over dedicated,
     nonswitched facilities by local exchange telecommunications
     companies to interexchange telecommunications carriers or other
     large volume users which provides connection between an
     interexchange telecommunications carrier or private network and
     a customer's premises.
        "Switched access service."  A service which provides for the
     use of common terminating, switching and trunking facilities of
     a local exchange telecommunications company's public switched
     network. The term includes, but is not limited to, the rates for
     local switching, common and dedicated transport and the carrier
     charge.
        "Telecommunications Act of 1996."  The Telecommunications Act
     of 1996 (Public Law 104-104, 110 Stat. 56).
        "Telecommunications carrier."  An entity that provides
     telecommunications services subject to the jurisdiction of the
     commission.
        "Telecommunications service."  The offering of the
     transmission of messages or communications for a fee to the
     public.
        "Universal broadband availability."  Access to broadband
     service by each telephone customer of a local exchange
     telecommunications company.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3012.
     § 3013.  Continuation of commission-approved alternative
                regulation and network modernization plans.
        (a)  General rule.--An alternative form of regulation plan
     and network modernization plan approved by the commission for a
     local exchange telecommunications company as of December 31,
     2003, shall remain valid and effective except as may be amended
     at the election of the local exchange telecommunications company
     as authorized by this chapter. The commission shall allow a
     previously approved plan to be amended to conform to any changes
     made under this chapter and shall not require any other changes
     to the plan.
        (b)  Limitation on changes to plans.--Except for changes to
     existing alternative form of regulation and network
     modernization plans as authorized by this chapter, no change to
     any alternative form of regulation or network modernization plan
     may be made without the express agreement of both the commission
     and the local exchange telecommunications company.
        (c)  Grandfather provision.--All services previously
     determined to be competitive as of December 31, 2003, shall
     remain competitive services unless reclassified by the
     commission under section 3016(c) (relating to competitive
     services).
        (d)  Commission oversight.--The commission will continue to
     exercise oversight of alternative form of regulation and network
     modernization plans for local exchange telecommunications
     companies as provided in this chapter.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3013.
        Cross References.  Section 3013 is referred to in section
     3014 of this title.
     § 3014.  Network modernization plans.
        (a)  Continuation of approved plan.--A local exchange
     telecommunications company that does not elect an option under
     subsection (b) shall remain subject to its network modernization
     plan in effect as of December 31, 2003, without revision or
     modification except by agreement under section 3013(b) (relating
     to continuation of commission-approved alternative regulation
     and network modernization plans) and as provided in this section
     through December 31, 2015.
        (b)  Options for amendment of network modernization plan.--
     Local exchange telecommunications companies shall have the
     following options:
            (1)  (i)  A rural telecommunications carrier that elects
            to amend its network modernization plan pursuant to this
            subsection shall remain subject to the carrier's network
            modernization plan in effect as of December 31, 2003, as
            amended pursuant to this subsection, through December 31,
            2008. Prior to implementation of such election, the rural
            telecommunications carrier shall comply with the
            notification requirements of subsection (e).
                (ii)  The rural telecommunications carrier shall
            commit to accelerate 100% broadband availability by
            December 31, 2008, in its amended network modernization
            plan. Any rural telecommunications carrier electing this
            option shall not be required to offer a bona fide retail
            request program or a business attraction or retention
            program.
            (2)  (i)  A rural telecommunications carrier that elects
            to amend its network modernization plan pursuant to this
            subsection shall remain subject to the carrier's network
            modernization plan in effect as of December 31, 2003, as
            amended pursuant to this subsection, through December 31,
            2013, or December 31, 2015, as applicable. Prior to
            implementation of such election, the rural
            telecommunications carrier shall comply with the
            notification requirements of subsection (e).
                (ii)  The rural telecommunications carrier shall
            commit:
                    (A)  to accelerate broadband availability to at
                least 80% of its total retail access lines in its
                distribution network by December 31, 2010, and 100%
                of its total retail access lines in its distribution
                network by December 31, 2013; or
                    (B)  to accelerate broadband availability to at
                least 80% of its total retail access lines in its
                distribution network by December 31, 2010, and 100%
                of its total retail access lines in its distribution
                network by December 31, 2015; and
                    (C)  to offer a bona fide retail request program
                and a business attraction or retention program
                pursuant to subsections (c) and (d). Under no
                circumstances may the rural telecommunications
                carrier reduce its existing broadband availability
                commitment.
            (3)  (i)  A nonrural telecommunications carrier that
            elects to amend its network modernization plan pursuant
            to this subsection shall remain subject to such carrier's
            network modernization plan in effect as of December 31,
            2003, as amended pursuant to this subsection, including
            meeting its 100% broadband availability commitment. Prior
            to implementation of such election, the nonrural
            telecommunications carrier shall comply with the
            notification requirements of subsection (e).
                (ii)  The nonrural telecommunications carrier shall
            commit:
                    (A)  to provide broadband availability to 100% of
                its total retail access lines in its distribution
                network by December 31, 2013, or December 31, 2015;
                and
                    (B)  to offer a bona fide retail request program
                and a business attraction or retention program
                pursuant to subsections (c) and (d). Under no
                circumstances may such nonrural telecommunications
                carrier reduce its existing broadband availability
                commitment.
            (4)  A local exchange telecommunications company that
        elects under paragraph (1), (2) or (3) shall also commit to
        universal broadband deployment in or adjacent to public
        rights-of-way abutting all public schools, including the
        administration offices supporting public schools, industrial
        parks and health care facilities in its service territory on
        or before December 31, 2005, except that a local exchange
        telecommunications company serving more than ten exchanges in
        this Commonwealth may elect to extend this commitment from
        December 31, 2005, to December 31, 2006, for any exchange
        with less than 4,000 access lines.
            (5)  A local exchange telecommunications company that
        elects under paragraph (1), (2) or (3) may amend its network
        modernization plan to extend the period of time within which
        broadband service must be made available to a customer to up
        to ten business days after the customer's request for
        broadband service.
            (6)  A local exchange telecommunications company
        operating under an amended network modernization plan may
        subsequently petition the commission for approval of further
        modification of its amended network modernization plan, which
        the commission may grant upon good cause shown.
            (7)  A rural telecommunications carrier serving less than
        50,000 access lines in this Commonwealth making an election
        pursuant to paragraph (1) and filing its amended network
        modernization plan with the commission pursuant to subsection
        (e) shall be granted by the commission a suspension of
        section 251(c)(2), (3), (4), (5) and (6) obligations under
        the Telecommunications Act of 1996. This suspension of
        obligations shall expire December 31, 2008, unless extended
        by the commission. Should the commission, following a
        hearing, determine that the rural telecommunications carrier
        has failed to timely meet its commitments pursuant to this
        paragraph, the suspension of obligations shall expire upon
        entry of the commission order making such determination.
        Expiration of the suspension of obligations shall not impact
        the rural telephone company exemption of the rural
        telecommunications carrier under section 251(f)(1) of the
        Telecommunications Act of 1996.
            (8)  A local exchange telecommunications company may
        accelerate its broadband availability commitment by electing
        an additional option pursuant to paragraph (1), (2) or (3),
        as applicable, at a later date. The local exchange
        telecommunications company shall be subject to the applicable
        modified inflation offset in its price stability mechanism as
        set forth in section 3015(a)(1) (relating to alternative
        forms of regulation) effective upon the filing of an amended
        network modernization plan under subsection (e).
        (c)  Bona fide retail request program.--A local exchange
     telecommunications company that elects to amend its network
     modernization plan pursuant to subsection (b)(2) or (3) shall no
     later than 90 days after the effective date of its amended plan
     implement a bona fide retail request program in areas where it
     does not provide broadband. Not later than 30 days in advance of
     program implementation, the local exchange telecommunications
     company shall file with the commission and provide the
     department with a written description of the program, a sample
     request for advanced services form for use in the program and
     the form of any advanced services term subscription agreements
     customers will be required to execute in connection with
     receiving the requested services. A bona fide retail request
     program shall consist of the following:
            (1)  Any person, business, local development district,
        industrial development agency or other entity seeking
        advanced services pursuant to a bona fide retail request
        program shall submit a written request for such services to
        the local exchange telecommunications company or to the
        department in accordance with subsection (d). The written
        request may be in the form of a petition which includes the
        information required by paragraph (2), in the form provided
        by the department under subsection (d) which includes the
        information required by paragraph (2) or in the form of
        individual requests each of which includes the information
        required by paragraph (2). If individual requests are
        received, the local exchange telecommunications company shall
        aggregate requests for the same service and initiate
        appropriate action pursuant to this subsection when the
        required number of requests have been received.
            (2)  To be considered a bona fide retail request, the
        written request must include:
                (i)  a request that a minimum of 50 retail access
            lines or 25% of retail access lines within a community,
            whichever is less, each be provided the same advanced
            service or comparable advanced services having a
            bandwidth within 100 kilobits per second (Kbps) of each
            other. Notwithstanding the foregoing comparable bandwidth
            limitation, where a request includes individual customer
            requests for advanced services having equal to or less
            than 1.544 megabits per second (Mbps) bandwidth in the
            downstream direction, all lines in the request shall be
            counted in meeting the minimum line requirement of this
            subparagraph;
                (ii)  the name, address, telephone number and
            signature of each existing retail customer requesting the
            advanced service, the advanced service being requested
            and the number of access lines for which the advanced
            service is being requested;
                (iii)  the name, address and telephone number of a
            designated contact person where the request is made by or
            on behalf of more than one person or business; and
                (iv)  a commitment by each customer who signs the
            request to subscribe to the requested service for one
            year, subject to the local exchange telecommunications
            company's identification of the price and terms of the
            service and the customer's agreement to the price and
            terms.
            (3)  In administering the bona fide retail request
        program, the local exchange telecommunications company shall:
                (i)  establish an Internet website and toll-free
            telephone number to address customer inquiries regarding
            the program;
                (ii)  mail a request form to a customer upon request;
                (iii)  confirm its receipt of any completed request
            in writing to the customer and identify the service
            requested;
                (iv)  as part of the written confirmation, if
            available, or in a subsequent written communication to
            the customer, provide the customer the applicable rate,
            the contract term, the status of the request and a term
            subscription agreement for execution; and
                (v)  notify the customers in a community, within 30
            days of receipt of a bona fide request, of the expected
            date of the availability of the requesters' service.
            (4)  When a bona fide retail request has been received
        that meets the requirements of paragraph (2), the local
        exchange telecommunications company shall provide the
        requested advanced service, or other reasonably comparable
        service having a bandwidth within 100 kilobits per second
        (Kbps) of the requested service, to the community as soon as
        practicable, but in no event later than 365 days of the date
        the requirements of paragraph (2) have been met or within the
        period approved by the commission under paragraph (5) or (6)
        where:
                (i)  the local exchange telecommunications company
            provides the requested advanced service to other
            customers in its service territory;
                (ii)  no service is available to the requesting
            customers from an alternative service provider at or
            within 100 kilobits per second (Kbps) of the data speed
            requested or such service is available at a price that
            exceeds the then current price offered by the local
            exchange telecommunications company by more than 50%;
                (iii)  the community is situated within the service
            territory of the local exchange telecommunications
            company; and
                (iv)  the local exchange telecommunications company
            does not have to provide fiber to the customer's premises
            to furnish the requested advanced service.
            (5)  Where, as a result of property acquisition,
        including acquiring rights-of-way, or new construction, a
        local exchange telecommunications company is unable to
        provide the requested advanced service within the one-year
        period set forth in paragraph (4), the company may petition
        the commission for an extension of up to six months, with
        service upon the customer or customers who made the bona fide
        retail request and the department if the department submitted
        the request on behalf of the customer or customers. The
        commission may delegate its authority to rule on such
        petitions to a bureau director or other appropriate employee
        who shall grant the petition for good cause shown.
            (6)  Where the total number of bona fide retail requests
        received by any local exchange telecommunications company or
        affiliated companies that meet the requirements of paragraphs
        (2) and (4) exceed 40 requests in any 12-month period or
        where there are more than 20 such requests that require
        property acquisition, including acquiring rights-of-way, or
        new construction in any 12-month period, the local exchange
        telecommunications company or companies may provide a
        verified certification to the commission that one or both of
        the previously stated criteria are met, with service upon the
        customer or customers who made the additional requests and
        upon the department if the department submitted any such
        requests. Upon receipt of the certification, the commission
        or the commission through its designated staff shall permit
        the local exchange telecommunications company or companies to
        extend the time for such deployments for a period of no more
        than 12 months unless the commission determines an additional
        time period to be just and reasonable. If a deployment is
        extended, it shall be counted in determining the maximum
        number of deployments provided for under this subsection in
        any 12-month period covering the month to which it is
        extended.
            (7)  No advanced service requested and deployed by a
        local exchange telecommunications company under the bona fide
        retail request program which has a bandwidth of less than
        1.544 megabits per second (Mbps) in the downstream direction
        shall be counted as a credit toward the local exchange
        telecommunications company's broadband deployment obligation
        under its network modernization plan amended pursuant to
        subsection (b)(2) or (3).
            (8)  With regard to requests submitted under this
        subsection, a retail customer may challenge the action of a
        local exchange telecommunications company pursuant to section
        701 (relating to complaints).
            (9)  Local exchange telecommunications companies with
        bona fide retail request programs shall provide semiannual
        reports to the commission and the department of the number of
        requests for advanced services received during the reporting
        period by exchange or density cell and the action taken on
        requests meeting the requirements of this subsection.
            (10)  A local exchange telecommunication company's bona
        fide retail request program established under this subsection
        shall continue through December 31, 2015, or such earlier
        date as the local exchange telecommunications company
        achieves 100% broadband availability throughout its service
        territory.
            (11)  In addition to adjudicating any complaints brought
        by customers under paragraph (8), the commission shall
        monitor and enforce the compliance of participating local
        exchange telecommunications companies with their obligations
        under this subsection.
        (d)  Business attraction or retention program.--
            (1)  Not later than 90 days after amending its network
        modernization plan under subsection (b)(2) or (3), the local
        exchange telecommunications company shall establish a
        business attraction or retention program to permit the
        department to aggregate customer demand where necessary and
        facilitate the deployment of advanced or broadband services
        to qualifying businesses which the department seeks to
        attract to or retain in this Commonwealth and whose requests
        for such services are submitted by or through the department.
            (2)  Each local exchange telecommunications company which
        amends its network modernization plan under subsection (b)(2)
        or (3) not later than 90 days after the effective date of its
        amended plan shall designate a single point of contact to
        receive all written advanced or broadband service requests
        forwarded by the department, provide associated contact
        information to the department and provide the department and
        the commission with a written description of its
        participation in the program and a sample request for
        advanced or broadband services form for use in the program.
            (3)  The department may submit a request to the
        applicable local exchange telecommunications company by or on
        behalf of qualifying businesses in areas that the department
        deems priority areas for economic development, including and
        giving preference to keystone opportunity zones, keystone
        opportunity expansion zones, enterprise zones, keystone
        opportunity improvement zones and other areas identified by
        the department as lacking adequate access to advanced or
        broadband services which would be important in order to
        promote economic development projects in those areas.
            (4)  The department shall establish an advisory committee
        that shall consist of representatives of each local exchange
        telecommunications company with a business attraction or
        retention program, local development districts and other
        local economic and industrial development agencies to assist
        the department in developing protocols and procedures for
        implementing these programs pursuant to this subsection.
            (5)  Qualifying business or businesses' requests for
        advanced services submitted by the department that are
        provisioned through the bona fide retail request program
        shall be processed in accordance with subsection (c) and
        shall be allocated 50% of the maximum number of annual
        deployments referenced in subsection (c)(6). Other requests
        shall be allocated 50% of the number of such deployments,
        provided, however, that any allocated deployments that are
        unused may be utilized by the department or nondepartment
        applicants, as applicable.
            (6)  For qualifying business or businesses whose request
        for advanced services is determined by the local exchange
        telecommunications company to be better processed outside of
        the bona fide retail request program, the local exchange
        telecommunications company shall make a proposal to the
        requesting business or businesses to provide the requested
        advanced or broadband service and subsequently shall
        provision such service. The local exchange telecommunications
        company shall advise the department and the business or
        businesses within 30 days of the date the contract is signed
        of the date by which the requested advanced or broadband
        service will be provided, which date shall be not later than
        one year after the date the contract is signed unless the
        business or businesses agree to a longer period or the local
        exchange telecommunications company obtains commission
        approval of an extension under the same procedure set forth
        in subsection (c)(5).
            (7)  No advanced service requested of and deployed by a
        local exchange telecommunications company under the Business
        Attraction or Retention Program which has a bandwidth of less
        than 1.544 megabits per second (Mbps) in the downstream
        direction shall be counted as a credit toward the local
        exchange telecommunication company's broadband deployment
        obligation under its network modernization plan amended under
        subsection (b)(2) or (3).
            (8)  Each local exchange telecommunications company which
        is required to participate in the department's Business
        Attraction or Retention Program shall continue its
        participation through December 31, 2015, or such earlier date
        as it achieves 100% broadband availability throughout its
        service territory.
            (9)  The department shall oversee local exchange
        telecommunications company participation in the Business
        Attraction or Retention Program, including the timely
        completion of qualifying advanced or broadband services
        requests submitted by or through the department which are
        processed within or outside of the participating local
        exchange telecommunications companies' bona fide retail
        request programs.
            (10)  The commission shall monitor and enforce the
        compliance of participating local exchange telecommunications
        companies with their obligations under the Business
        Attraction or Retention Program.
        (e)  Notice of filing of amendments.--A local exchange
     telecommunications company that elects to amend its network
     modernization plan under subsection (b) shall notify the
     commission in writing of such election and, within 60 days
     following such notification, file its amended network
     modernization plan with the commission. Copies of the written
     notice of election and of the amended network modernization plan
     shall be served by the local exchange telecommunications company
     on the Office of Consumer Advocate and the Office of Small
     Business Advocate. Concurrent with the filing of the amended
     plan with the commission, the local exchange telecommunications
     company shall publish notice of such filing in a newspaper or
     newspapers of general circulation in its service territory or by
     bill message or insert. An amended plan compliant with the
     requirements of this chapter shall be approved by the commission
     within 100 days of its filing. If the commission fails to act
     within 100 days, the amended plan shall be deemed approved.
        (f)  Network modernization plan report.--
            (1)  A local exchange telecommunications company
        operating under a network modernization plan shall continue
        to file with the commission biennial reports on its provision
        of broadband availability in the form and detail required by
        the commission as of July 1, 2004, unless such reporting
        requirements are subsequently reduced by the commission.
            (2)  Nothing in this subsection shall be construed to
        impede the ability of the commission to require the
        submission of further information to support the accuracy of
        or to seek an explanation of the reports specified in this
        subsection.
            (3)  Under no circumstances shall the commission compel
        the public release of maps or other information describing
        the actual location of a local exchange telecommunications
        company's facilities.
        (g)  Assistance to political subdivisions.--A local exchange
     telecommunications company shall commit in its amended network
     modernization plan to make technical assistance available to
     political subdivisions located in its service territory in
     pursuing the deployment of additional telecommunications
     infrastructure or services by the local exchange
     telecommunications company.
        (h)  Prohibition against political subdivision advanced and
     broadband services deployment.--
            (1)  Except as otherwise provided for under paragraph
        (2), a political subdivision or any entity established by a
        political subdivision may not provide to the public for
        compensation any telecommunications services, including
        advanced and broadband services, within the service territory
        of a local exchange telecommunications company operating
        under a network modernization plan.
            (2)  A political subdivision may offer advanced or
        broadband services if the political subdivision has submitted
        a written request for the deployment of such service to the
        local exchange telecommunications company serving the area
        and, within two months of receipt of the request, the local
        exchange telecommunications company or one of its affiliates
        has not agreed to provide the data speeds requested. If the
        local exchange telecommunications company or one of its
        affiliates agrees to provide the data speeds requested, then
        it must do so within 14 months of receipt of the request.
            (3)  The prohibition in paragraph (1) shall not be
        construed to preclude the continued provision or offering of
        telecommunications services by a political subdivision of the
        same type and scope as were being provided on the effective
        date of this section.
        (i)  Broadband Outreach and Aggregation Program.--
            (1)  The department shall establish a Broadband Outreach
        and Aggregation Program for the purpose of making
        expenditures and providing grants from the Broadband Outreach
        and Aggregation Fund established under section 3015(c)
        (relating to alternative forms of regulation) for:
                (i)  Outreach programs for political subdivisions,
            economic development entities, schools, health care
            facilities, businesses and residential customers
            concerning the benefits, use and procurement of broadband
            services; and
                (ii)  Seed grants to aggregate customer demand for
            broadband services in communities or political
            subdivisions with limited access to such services and to
            permit customers in such communities or political
            subdivisions to request such services from a
            telecommunications provider.
            (2)  The department shall annually report to the
        commission on all payments to and expenditures from the
        Broadband Outreach and Aggregation Fund, and the commission
        shall verify the accuracy of the contributions from the
        participating local exchange telecommunications companies.
        (j)  Education Technology Program.--
            (1)  The Department of Education shall establish an
        Education Technology Program for the purpose of providing
        grants to school entities from the Education Technology Fund
        (E-Fund) established under section 3015(d).
            (2)  The Department of Education shall authorize grants
        from the E-Fund for the following purposes:
                (i)  Purchase or lease of telecommunications
            services, infrastructure or facilities to establish and
            support broadband networks between, among and within
            school entities and not for the provision of
            telecommunications services to the public for
            compensation.
                (ii)  Purchase or lease of premises
            telecommunications network equipment and end-user
            equipment to enable the effective use of broadband
            networks between, among and within school entities and
            not for the provision of telecommunications services to
            the public for compensation.
                (iii)  Distance learning initiatives that use the
            foregoing broadband networks.
                (iv)  Technical support services for the activities
            described in subparagraphs (i) through (iii).
            (3)  Each applicant school entity shall be required to
        provide 100% matching funds to support each E-Fund grant
        request. Funds received from Federal technology programs such
        as the universal service support mechanism for schools and
        libraries set forth in 47 CFR Pt. 54 (relating to universal
        service or successor regulations), in-kind contributions and
        any other technology expenditures shall be applied toward the
        matching fund requirement.
            (4)  No later than 90 days after the effective date of
        this section, the Department of Education shall prescribe the
        grant process and the form and manner of the E-Fund
        application. Grants shall be limited to the funds available
        in the Education Technology Fund. In awarding grants, the
        Department of Education shall give priority to applications:
                (i)  that are submitted by school entities that seek
            funds for discounted broadband services under subsection
            (l) or for broadband infrastructure, facilities or
            equipment from local exchange telecommunications
            companies which contribute to the E-Fund;
                (ii)  that seek funds for regional networks that
            serve multiple school districts which are filed on behalf
            of multiple school districts and school entities; or
                (iii)  that are submitted by school entities that do
            not have broadband service, provided, however, that
            nothing in this subsection shall preclude the department
            from awarding funds to school entities for
            telecommunications services, infrastructure or facilities
            that provide bandwidths greater than 1.544 megabits per
            second (Mbps).
        The Department of Education shall assure that the
        applications funded each year are geographically dispersed
        throughout the Commonwealth.
        (k)  Balanced deployment.--A local exchange
     telecommunications company shall reasonably balance deployment
     of its broadband network between rural, urban and suburban areas
     within its service territory, as those areas are applicable, in
     accordance with its approved network modernization plan.
        (l)  Broadband discounts to schools.--Each local exchange
     telecommunications company that elects to amend its network
     modernization plan pursuant to this section:
            (1)  Shall offer school customers which meet the
        eligibility standards described in 47 CFR 54.501 (relating to
        eligibility for services provided by telecommunications
        carriers) and which agree to enter into a minimum three-year
        contract a 30% discount, or greater discount at the local
        exchange telecommunications company's discretion, in the
        otherwise applicable tariffed distance-sensitive per-mile
        rate element and also will waive the associated nonrecurring
        charges for available intrastate broadband services where
        used for educational purposes and not for the provision of
        telecommunications services to the public for compensation.
        The discount or waiver shall not be required where
        application of it to a particular service would conflict with
        applicable law.
            (2)  Will assist school customers in applying for e-rate
        funding under 47 CFR 54.505 (relating to discounts).
        (m)  Inventory of available services.--
            (1)  The department shall compile, periodically update
        and publish, including at its Internet website, a listing of
        advanced and broadband services, by general location,
        available from all advanced and broadband service providers
        operating in this Commonwealth irrespective of the technology
        used.
            (2)  All providers of advanced and broadband services
        shall cooperate with the department.
            (3)  The department may not disclose maps or other
        information describing the specific location of any
        telecommunications carrier's or alternative service
        provider's facilities.
        (n)  Construction.--Nothing in this section shall be
     construed:
            (1)  As giving the commission the authority to require a
        local exchange telecommunications company to provide specific
        services or to deploy a specific technology to retail
        customers seeking broadband or advanced services.
            (2)  As prohibiting a local exchange telecommunications
        company from participating in joint ventures with other
        entities in meeting its advanced services and broadband
        deployment commitments under its network modernization plan.
     (Nov. 30, 2004, P.L.1398, No.183)

        2004 Amendment.  Act 183 added section 3014, effective
     January 1, 2006, as to subsec. (h)(3) and immediately as to the
     remainder of the section.
        Cross References.  Section 3014 is referred to in sections
     3012, 3015 of this title.
     § 3015.  Alternative forms of regulation.
        (a)  Inflation offset.--
            (1)  Except as otherwise provided in paragraphs (2) and
        (3), a local exchange telecommunications company with an
        alternative form of regulation containing a price stability
        mechanism that files an amended network modernization plan
        under section 3014(b)(1), (2) or (3) (relating to network
        modernization plans) shall be subject to a modified inflation
        offset in its price stability mechanism in adjusting its
        rates for noncompetitive services, effective upon the filing
        of an amended network modernization plan under section
        3014(e), as follows:
                (i)  If a nonrural telecommunications carrier files
            an amended network modernization plan under section
            3014(b)(3) that commits to deploy 100% broadband
            availability by December 31, 2013, then the carrier's
            inflation offset shall be zero.
                (ii)  If a nonrural telecommunications carrier files
            an amended network modernization plan under section
            3014(b)(3) that commits to deploy 100% broadband
            availability by December 31, 2015, then the carrier's
            inflation offset shall be equal to 0.5%.
                (iii)  If a rural telecommunications carrier files an
            amended network modernization plan under section
            3014(b)(1) that commits to deploy 100% broadband
            availability by December 31, 2008, or under section
            3014(b)(2)(ii)(A) that commits to deploy 100% broadband
            availability by December 31, 2013, then the carrier's
            inflation offset shall be zero.
                (iv)  If a rural telecommunications carrier files an
            amended network modernization plan under section
            3014(b)(2)(ii)(B) that commits to deploy 100% broadband
            availability by December 31, 2015, then the carrier's
            inflation offset shall be equal to 0.5%.
            (2)  Utilizing network modernization plan reports filed
        with the commission by local exchange telecommunications
        companies under section 3014(f), the commission shall monitor
        and enforce companies' compliance with their interim and
        final 100% commitments for broadband availability in their
        amended network modernization plans. In the event that a
        local exchange telecommunications company is found by the
        commission, after notice and evidentiary hearings held on an
        expedited basis, to have failed to meet such an interim or
        final 100% commitment, then the commission shall require the
        local exchange telecommunications company to refund to
        customers in its next price stability filing an amount that
        is just and reasonable under the circumstances. Such amount
        shall not exceed an amount determined by multiplying the
        percentage shortfall of the broadband availability commitment
        on an access-line basis required to be met during the period
        from the start of the amended plan or from the date of the
        last prior interim commitment, as applicable, times the
        increased revenue that was obtained during this period as a
        result of the modified inflation offset provided in this
        section that reduced the inflation offset applicable in the
        local exchange telecommunications company's alternative
        regulation plan in effect on the effective date of this
        section, plus interest calculated under section 1308(d)
        (relating to voluntary changes in rates). Any such refund
        required under this subsection shall be separate from and in
        addition to any civil or other penalties that the commission
        may impose on a local exchange telecommunications company
        under Chapter 33 (relating to violations and penalties).
            (3)  Where annual rate adjustments made under a nonrural
        telecommunications carrier's price stability mechanism are
        calculated using revenues from protected services, an average
        rate adjustment for protected residential customer local
        exchange telecommunications service lines shall be determined
        by dividing the total protected service revenues associated
        with such lines, as adjusted by the price stability formula,
        by the number of such lines, and the rate adjustment for any
        individual line shall not vary from this average rate
        adjustment by more than 20%.
        (b)  Rate changes for rural telecommunications carriers.--
            (1)  In addition to the rate change provisions in its
        alternative form of regulation plan, a rural
        telecommunications carrier operating without a price
        stability mechanism that files with the commission an amended
        network modernization plan under section 3014(b)(1) or (2)
        shall be permitted at any time to file proposed tariff
        changes with the commission, effective 45 days after filing,
        setting forth miscellaneous changes, including increases and
        decreases, in rates for noncompetitive services, excluding
        basic residential and business rates, provided such rate
        changes do not increase the rural telecommunications
        carrier's annual intrastate revenues by more than 3%.
            (2)  The commission tariff filing requirements and review
        associated with such proposed rate changes shall be limited
        to schedules submitted by the rural telecommunications
        carrier detailing the impact of the rate changes on the
        carrier's annual intrastate revenues.
            (3)  A rural telecommunications carrier that implements
        noncompetitive rate changes consistent with the procedure set
        forth in its alternative form of regulation plan shall be
        required only to file such financial and cost data with the
        commission to justify such changes as is required under its
        commission-approved alternative form of regulation plan.
            (4)  Notwithstanding the provisions of paragraph (1), (2)
        or (3), for any rural telecommunications carrier serving less
        than 50,000 access lines in this Commonwealth and operating
        under an alternative form of regulation plan, a formal
        complaint to deny rate changes for noncompetitive services
        unless signed by at least 20 customers of the rural
        telecommunications carrier shall not prevent implementation
        of the rate changes pending the adjudication of the formal
        complaint by the commission.
        (c)  Broadband Outreach and Aggregation Fund.--
            (1)  There is hereby established within the State
        Treasury a special fund to be known as the Broadband Outreach
        and Aggregation Fund for the purposes enumerated in section
        3014(i).
            (2)  A local exchange telecommunications company that
        files an amended network modernization plan under section
        3014(b)(2) or (3) shall be assessed by the commission for
        contribution to the fund and to the E-fund established under
        subsection (d) an amount of 20% of the first year's annual
        revenue effect:
                (i)  of any rate increase permitted by the
            elimination or reduction of the offset under subsection
            (a) and placed into effect; or
                (ii)  of any rate increase placed into effect under
            subsection (b)(1) if the local exchange
            telecommunications company is operating without a price
            stability mechanism.
        For purposes of this paragraph, the term "first year's annual
        revenue effect" means the projected or actual increased
        revenues received by the local exchange telecommunications
        company during the one-year period from the effective date of
        its rate increase. The commission shall begin the assessments
        provided for in this paragraph on June 30, 2005, and
        thereafter shall make such assessments annually on June 30
        until June 30, 2010, for assessments that include amounts for
        the fund and the e-fund and until June 30, 2015, for
        assessments that include amounts for only the fund. Each
        assessment shall be based on the first year's annual revenue
        effect of any covered rate increase effective after the date
        of the last annual assessment.
            (3)  An amount not to exceed 50% of such assessment shall
        be allocated to the fund. The remainder of the assessment
        shall be allocated to the E-fund provided for under
        subsection (d) until its termination on June 30, 2011. After
        the E-fund termination, the maximum assessment percentage
        shall be reduced from 20% to 10%, and contributions shall be
        made only to the fund until the local exchange
        telecommunications company achieves 100% broadband
        availability. Contributions of allocated amounts shall be
        paid to the fund and the E-fund by the local exchange
        telecommunications company in equal quarterly installments.
            (4)  In no event shall the total amount of the fund
        exceed $5,000,000 annually, and in the event of such
        overfunding the department shall credit the overcollection to
        the next year's contribution amount.
            (5)  A local exchange telecommunications company that
        elects to amend its network modernization plan pursuant to
        section 3014 (b)(1) shall not be required to contribute to
        the fund.
            (6)  The moneys in the Broadband Outreach and Aggregation
        Fund are hereby appropriated upon approval of the Governor to
        the department for the purposes enumerated in paragraph (1).
        The department may use up to 3% of the money in the fund for
        administration.
            (7)  The fund shall continue until July 1, 2016, at which
        time the fund shall terminate, and the department shall
        return any funds remaining in the fund on a pro rata basis to
        the local exchange telecommunications companies that
        contributed to the fund.
        (d)  Education Technology Fund (E-Fund).--
            (1)  There is hereby established within the State
        Treasury a special fund to be known as the Education
        Technology Fund (E-Fund) for the purposes enumerated in
        paragraph (4).
            (2)  All E-fund assessments imposed by the commission
        under subsection (c)(2) and paragraph (3), moneys
        specifically appropriated by the General Assembly for the
        purposes of this subsection and any funds, contributions or
        payments which may be made available to the fund by the
        Federal Government, another State agency or any public or
        private source for the purpose of implementing this
        subsection shall be deposited in the E-Fund.
            (3)  Beginning in 2005 and continuing through 2010, the
        commission shall, no later than June 30, annually assess each
        nonrural telecommunications carrier that files an amended
        network modernization plan under section 3014(b)(3) an amount
        to be deposited in the E-Fund. Each carrier's annual
        assessment shall be payable in two equal installments due on
        October 31 of each year and January 31 of the following year
        and shall be based on the relative proportion of the retail
        access lines served by the nonrural telecommunications
        carrier in relation to the number of retail access lines
        served by all nonrural telecommunications carriers that have
        filed an amended network modernization plan under section
        3014(b)(3). For fiscal years 2005-2006 and 2006-2007, the
        total annual assessment amount shall be $7,000,000. For
        fiscal years 2007-2008, 2008-2009, 2009-2010 and 2010-2011,
        the total annual assessment amount shall be the difference
        between $7,000,000 and any amount remaining in the E-Fund
        from prior fiscal years which remains unencumbered or
        unexpended. A nonrural telecommunications carrier's
        assessments required under this paragraph may not be
        recovered via a surcharge on customers' bills or in rates for
        noncompetitive services as exogenous change adjustment under
        the provisions of the carrier's price stability mechanism and
        subsection (a)(3) where applicable.
            (4)  Additional local exchange telecommunications company
        contributions to the E-fund shall be made pursuant to the
        provisions of subsections (c)(2) and (3).
            (5)  The Department of Education shall expend the moneys
        of the E-Fund for the purpose of providing grants to school
        entities as prescribed by section 3014(j).
            (6)  The moneys of the Education Technology Fund are
        hereby appropriated upon approval of the Governor to the
        Department of Education for the purposes enumerated in
        paragraph (5). The Department of Education may use up to 3%
        of the money for administration. Appropriations by the
        General Assembly to the fund shall be continuing
        appropriations and shall not lapse at the close of any fiscal
        year.
            (7)  The E-Fund shall continue until June 30, 2011, at
        which time the fund shall terminate and the Department of
        Education shall return any funds remaining therein on a pro
        rata basis to the local exchange telecommunications companies
        that contributed to the fund.
        (e)  General filing requirements.--The commission's filing
     and audit requirements for a local exchange telecommunications
     company that is operating under an amended network modernization
     plan shall be limited to the following:
            (1)  Network modernization plan reports filed pursuant to
        section 3014(f).
            (2)  An annual financial report consisting of a balance
        sheet and income statement.
            (3)  An annual deaf, speech-impaired and hearing-impaired
        relay information report.
            (4)  An annual service report.
            (5)  Universal service reports.
            (6)  An annual access line report.
            (7)  An annual statement of gross intrastate operating
        revenues for purposes of calculating assessments for
        regulatory expenses.
            (8)  An annual State tax adjustment computation for years
        in which a tax change has occurred, if applicable.
            (9)  For those companies with a bona fide retail request
        program, a bona fide retail request report under section
        3014(c)(9). These reports shall be submitted in the form
        determined by the commission.
        (f)  Other reports.--
            (1)  Notwithstanding any other provision of this title to
        the contrary, no report, statement, filing or other document
        or information, except as specified in subsection (e), shall
        be required of any local exchange telecommunications company
        unless the commission, upon notice to the affected local
        exchange telecommunications company and an opportunity to be
        heard, has first made specific written findings supporting
        conclusions in an entered order that:
                (i)  The report is necessary to ensure that the local
            exchange telecommunications company is charging rates
            that are in compliance with this chapter and its
            effective alternative form of regulation.
                (ii)  The benefits of the report substantially
            outweigh the attendant expense and administrative time
            and effort required of the local exchange
            telecommunications company to prepare it.
            (2)  Nothing in this subsection shall be construed to
        impede the ability of the commission to require the
        submission of further information to support the accuracy of
        or to seek an explanation of the reports specified in
        subsection (e).
        (g)  Rate change limitations.--Nothing in this chapter shall
     be construed to limit the requirement of section 1301 (relating
     to rates to be just and reasonable) that rates shall be just and
     reasonable. The annual rate change limitations set forth in a
     local exchange telecommunications company's effective
     commission-approved alternative form of regulation plan or any
     other commission-approved annual rate change limitation shall
     remain applicable and shall be deemed just and reasonable under
     section 1301.
        (h)  Conformance of plan.--Upon approval of a local exchange
     telecommunications company of network modernization plan
     amendments pursuant to section 3014(e), the local exchange
     telecommunications company's alternative form of regulation plan
     shall be deemed amended consistent with this section.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3015.
        Cross References.  Section 3015 is referred to in sections
     3012, 3014, 3019 of this title.
     § 3016.  Competitive services.
        (a)  Commission determination of protected, retail
     nonprotected and retail noncompetitive services as
     competitive.--
            (1)  A local exchange telecommunications company may
        petition the commission for a determination of whether a
        protected or retail noncompetitive service or other business
        activity in its service territory or a particular geographic
        area, exchange or group of exchanges or density cell within
        its service territory is competitive based on the
        demonstrated availability of like or substitute services or
        other business activities provided or offered by alternative
        service providers. The commission, after notice and hearing,
        shall enter an order granting or denying the petition within
        60 days of the filing date or within 150 days of the filing
        date where a protest is timely filed, or the petition shall
        be deemed granted.
            (2)  The local exchange telecommunications company shall
        serve a copy of its petition on the Office of Consumer
        Advocate, the Office of Small Business Advocate and each of
        the parties to the commission's proceeding in which the
        company's network modernization plan that was in effect on
        December 31, 2003, was approved by the commission.
            (3)  In making its determination, the commission shall
        consider all relevant information submitted to it, including
        the availability of like or substitute services or other
        business activities, and shall limit its determination to the
        service territory or the particular geographic area, exchange
        or group of exchanges or density cell in which the service or
        other business activity has been proved to be competitive.
            (4)  The burden of proving that a protected or retail
        noncompetitive service or other business activity is
        competitive rests on the local exchange telecommunications
        company.
        (b)  Declaration of retail nonprotected services as
     competitive.--Notwithstanding the provisions of subsection (a),
     a local exchange telecommunications company may declare any
     retail nonprotected service as competitive by filing its
     declaration with the commission and serving it on the Office of
     Consumer Advocate, Office of Small Business Advocate and each of
     the parties to the commission's proceeding in which the
     company's network modernization plan that was in effect on
     December 31, 2003, was approved by the commission, provided that
     a local exchange telecommunications company may not use this
     declaration process for any service that the commission
     previously has reclassified as noncompetitive under either
     subsection (c) or prior law. A declaration of a retail
     nonprotected service as competitive shall be effective upon
     filing by the local exchange telecommunications company with the
     commission.
        (c)  Reclassification.--
            (1)  A party may petition the commission for a
        determination of whether a service or other business activity
        previously determined or declared to be competitive is
        noncompetitive. The commission, after notice and hearing,
        shall enter an order deciding the petition within 60 days of
        the filing date or 90 days of the filing date where a protest
        is timely filed, or the petition shall be approved.
            (2)  The petitioner shall serve a copy of the petition on
        the affected local exchange telecommunications company if the
        petitioner is not the company, the Office of Consumer
        Advocate, the Office of Small Business Advocate and each of
        the parties to the commission's proceeding in which the
        company's network modernization plan that was in effect on
        December 31, 2003, was approved by the commission.
            (3)  In making its determination, the commission shall
        consider all relevant information submitted to it, including
        the availability of like or substitute services or other
        business activities, and shall limit its determination to the
        particular geographic area, exchange or density cell in which
        the service or other business activity has been proved to be
        noncompetitive.
            (4)  The burden of proving that a competitive service or
        other business activity should be reclassified as
        noncompetitive rests on the party seeking the
        reclassification.
            (5)  If the commission reclassifies a service or other
        business activity as noncompetitive, the commission shall
        determine a just and reasonable rate for the reclassified
        service or business activity in accordance with section 1301
        (relating to rates to be just and reasonable).
        (d)  Additional requirements.--
            (1)  The prices which a local exchange telecommunications
        company charges for competitive services shall not be less
        than the costs to provide the services.
            (2)  The commission may not require tariffs for
        competitive service offerings to be filed with the
        commission.
            (3)  A local exchange telecommunications company at its
        option may tariff its rates subject to rules and regulations
        applicable to the provision of competitive services.
            (4)  The commission may require a local exchange
        telecommunications company to maintain price lists with the
        commission applicable to its competitive services. Price
        changes that are filed in a company's tariff for competitive
        services will go into effect on a one-day notice.
        (e)  Pricing flexibility and bundling.--
            (1)  Subject to the requirements of subsection (d)(1), a
        local exchange telecommunications company may price
        competitive services at the company's discretion.
            (2)  A local exchange telecommunications company may
        offer and bill to customers on one bill bundled packages of
        services which include nontariffed, competitive,
        noncompetitive or protected services, including services of
        an affiliate, in combinations and at a single price selected
        by the company. A local exchange telecommunications company
        may file an informational tariff for a bundled package
        effective on a one-day notice.
            (3)  When an alternative service provider is offering
        local exchange telecommunications services within an exchange
        of a rural telecommunications carrier, the rural
        telecommunications carrier may reduce its prices on services
        offered within the exchange below the rates set forth in its
        otherwise applicable tariff in order to meet such
        competition. A rural telecommunications carrier may not
        offset revenue reductions resulting from such competitive
        pricing by increasing rates charged to other customers
        through its price stability mechanism or otherwise.
        (f)  Prohibitions.--
            (1)  A local exchange telecommunications company shall be
        prohibited from using revenues earned or expenses incurred in
        conjunction with noncompetitive services to subsidize
        competitive services.
            (2)  Paragraph (1) shall not be construed to prevent the
        marketing and billing of packages containing both
        noncompetitive and competitive services to customers.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3016.
        Cross References.  Section 3016 is referred to in sections
     3012, 3013, 3019 of this title.
     § 3017.  Access charges.
        (a)  General rule.--The commission may not require a local
     exchange telecommunications company to reduce access rates
     except on a revenue-neutral basis.
        (b)  Refusal to pay access charges prohibited.--No person or
     entity may refuse to pay tariffed access charges for
     interexchange services provided by a local exchange
     telecommunications company.
        (c)  Limitation.--No telecommunications carrier providing
     competitive local exchange telecommunications service may charge
     access rates higher than those charged by the incumbent local
     exchange telecommunications company in the same service
     territory unless such carrier can demonstrate that the higher
     access rates are cost justified.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3017.
     § 3018.  Interexchange telecommunications carriers.
        (a)  Competitive and noncompetitive services.--Interexchange
     services provided by interexchange telecommunications carriers
     shall be competitive services.
        (b)  Rate regulation.--
            (1)  The commission may not fix or prescribe the rates,
        tolls, charges, rate structures, rate base, rate of return,
        operating margin or earnings for interexchange competitive
        services or otherwise regulate interexchange competitive
        services except as set forth in this chapter.
            (2)  An interexchange telecommunications carrier may file
        and maintain tariffs or price lists with the commission for
        competitive telecommunications services.
            (3)  Nothing in this chapter shall be construed to limit
        the authority of the commission to regulate the privacy of
        interexchange service and the ordering, installation,
        restoration and disconnection of interexchange service to
        customers.
        (c)  Reclassification.--The commission may reclassify
     telecommunications services provided by an interexchange
     telecommunications carrier as noncompetitive if, after notice
     and hearing, it determines, upon application of the criteria set
     forth in this chapter, that sufficient competition is no longer
     present.
        (d)  Construction.--Nothing in this chapter shall be
     construed:
            (1)  To limit the authority of the commission to resolve
        complaints regarding the quality of interexchange
        telecommunications carrier service.
            (2)  To limit the authority of the commission to
        determine whether an interexchange telecommunications carrier
        should be extended the privilege of operating within this
        Commonwealth or to order the filing of such reports,
        documents and information as may be necessary to monitor the
        market for and competitiveness of interexchange
        telecommunications services.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3018.
     § 3019.  Additional powers and duties.
        (a)  General rule.--The commission may certify more than one
     telecommunications carrier to provide local exchange
     telecommunications service in a specific geographic location.
     The certification shall be granted upon a showing that it is in
     the public interest and that the applicant possesses sufficient
     technical, financial and managerial resources.
        (b)  Powers and duties retained.--The commission shall retain
     the following powers and duties relating to the regulation of
     all telecommunications carriers and interexchange
     telecommunications carriers, including the power to seek
     information necessary to facilitate the exercise of these powers
     and duties:
            (1)  To audit the accounting and reporting systems of
        telecommunications carriers relating to their transactions
        with affiliates pursuant to Chapter 21 (relating to relations
        with affiliated interests). A telecommunications carrier
        shall file affiliated interest and affiliated transaction
        agreements unless such agreements involve services declared
        to be competitive. The filings shall constitute notice to the
        commission only and shall not require approval by the
        commission.
            (2)  To review and revise quality of service standards
        contained in 52 Pa. Code (relating to public utilities) that
        address the safety, adequacy, reliability and privacy of
        telecommunications services and the ordering, installation,
        suspension, termination and restoration of any
        telecommunications service. Any review or revision shall take
        into consideration the emergence of new industry
        participants, technological advancements, service standards
        and consumer demand.
            (3)  Subject to the provisions of section 3015(e)
        (relating to alternative forms of regulation), to establish
        such additional requirements as are consistent with this
        chapter as the commission determines to be necessary to
        ensure the protection of customers.
            (4)  To condition the sale, merger, acquisition or other
        transaction required to be approved under section 1102(a)(3)
        (relating to enumeration of acts requiring certificate) of a
        local exchange telecommunications company or any facilities
        used to provide telecommunications services to ensure that
        there is no reduction in the advanced service or broadband
        deployment obligations for the affected property or
        facilities.
        (c)  (Reserved).
        (d)  Privacy of customer information.--
            (1)  Except as otherwise provided in this subsection, a
        telecommunications carrier may not disclose to any person
        information relating to any customer's patterns of use,
        equipment and network information and any accumulated records
        about customers with the exception of name, address and
        telephone number.
            (2)  A telecommunications carrier may disclose such
        information:
                (i)  Pursuant to a court order or where otherwise
            required by Federal or State law.
                (ii)  To the carrier's affiliates, agents,
            contractors or vendors and other telecommunications
            carriers or interexchange telecommunications carriers as
            permitted by Federal or State law.
                (iii)  Where the information consists of aggregate
            data which does not identify individual customers.
        (e)  Unreasonable preferences.--Nothing in this chapter shall
     be construed to limit the authority of the commission to ensure
     that local exchange telecommunications companies do not make or
     impose unreasonable preferences, discriminations or
     classifications for protected services and other noncompetitive
     services.
        (f)  Lifeline service.--
            (1)  All eligible telecommunications carriers
        certificated to provide local exchange telecommunications
        service shall provide Lifeline service to all eligible
        telecommunications customers who subscribe to such service.
            (2)  All eligible telecommunications customers who
        subscribe to Lifeline service shall be permitted to subscribe
        to any number of other eligible telecommunications carrier
        telecommunications services at the tariffed rates for such
        services.
            (3)  Whenever a prospective customer seeks to subscribe
        to local exchange telecommunications service from an eligible
        telecommunications carrier, the carrier shall explicitly
        advise the customer of the availability of Lifeline service
        and shall make reasonable efforts where appropriate to
        determine whether the customer qualifies for such service
        and, if so, whether the customer wishes to subscribe to the
        service.
            (4)  Eligible telecommunications carriers shall inform
        existing customers of the availability of Lifeline service
        twice annually by bill insert or message. The notice shall be
        conspicuous and shall provide appropriate eligibility,
        benefits and contact information for customers who wish to
        learn of the Lifeline service subscription requirements.
            (5)  When a person enrolls in a low-income program
        administered by the Department of Public Welfare that
        qualifies the person for Lifeline service, the Department of
        Public Welfare shall automatically notify that person at the
        time of enrollment of his or her eligibility for Lifeline
        service. This notification also shall provide information
        about Lifeline service, including a telephone number of and
        Lifeline subscription form for the person's current eligible
        telecommunications carrier or, if the person does not have
        telephone service, telephone numbers of eligible
        telecommunications carriers serving the person's area that
        the person can call to obtain Lifeline service. Eligible
        telecommunications carriers shall provide the Department of
        Public Welfare with Lifeline service descriptions and
        subscription forms, contact telephone numbers and a listing
        of the geographic area or areas they serve, for use by the
        Department of Public Welfare in providing the notifications
        required by this paragraph.
            (6)  No eligible telecommunications carrier shall be
        required to provide after the effective date of this section
        any new Lifeline service discount that is not fully
        subsidized by the Federal Universal Service Fund.
        (g)  Method for fixing rates.--The commission may not fix or
     prescribe the rates, tolls, charges, rate structures, rate base,
     rate of return or earnings of competitive services or otherwise
     regulate competitive services except as set forth in this
     chapter.
        (h)  Implementation.--The terms of a local exchange
     telecommunications company's alternative form of regulation and
     network modernization plans shall govern the regulation of the
     local exchange telecommunications company and, consistent with
     the provisions of this chapter, shall supersede any conflicting
     provisions of this title or other laws of this Commonwealth and
     shall specifically supersede all provisions of Chapter 13
     (relating to rates and rate making) other than sections 1301
     (relating to rates to be just and reasonable), 1302 (relating to
     tariffs; filing and inspection), 1303 (relating to adherence to
     tariffs), 1304 (relating to discrimination in rates), 1305
     (relating to advance payment of rates; interest on deposits),
     1309 (relating to rates fixed on complaint; investigation of
     costs of production) and 1312 (relating to refunds).
        (i)  Protection of employees.--
            (1)  No telecommunications carrier may discharge,
        threaten, discriminate or retaliate against an employee
        because the employee made a good faith report to the
        commission, the Office of Consumer Advocate or the Office of
        Attorney General regarding wrongdoing, waste or a potential
        violation of the commission's orders or regulations or of
        this title.
            (2)  A person who alleges a violation of this section
        must bring a civil action in a court of competent
        jurisdiction for appropriate injunctive relief or damages
        within 180 days after the occurrence of the alleged
        violation. The evidentiary burdens upon such person and the
        person's telecommunications carrier in such action shall be
        as set forth in section 3316(d) and (e) (relating to
        protection of public utility employees), provided, however,
        that upon an employee's meeting the employee's burden of
        proof under section 3316(d), a rebuttable presumption shall
        arise that the alleged reprisal by the employer constitutes a
        violation of this section.
     (Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

        2004 Amendment.  Act 183 added section 3019.

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