Brief Description: Regarding promotional service offerings.

Sponsors: Representatives Ruderman, Crouse, Morris, Nixon, Sullivan and Delvin.

Hearing Date: 1/29/03

Staff: Pam Madson (786-7166).

Background:

When telecommunications companies file changes in their rates with the Utilities and Transportation Commission, the commission may suspend the change pending a hearing on the reasonableness of the proposed change. The change is subject to a notice requirement and does not become effective until thirty days after the filing or publication of notice.

If the change in rates is a decrease, the Commission may not suspend the change in rates pending a reasonableness hearing if the filing does not contain an offsetting increase and the company agrees not to file an increase to make up for any decrease in revenue for a period of one year.

Temporary promotional price reductions or waivers are authorized for specific services offered to existing or new customers that do not exceed 60 days and are not subject to suspension by the Commission pending a hearing. These temporary changes are effective 10 days after notice is given of the change.

Competitive telecommunications companies are subject to minimal regulation. If they file price lists, they must still provide notice of changes in rates to the public. Changes are effective after 10 days notice to the commission and customers. Similar provisions apply to services offered by a telecommunications company that have been found to be competitive by the Commission.

Summary of Bill:

When a promotional service offering is filed by a telecommunications company, it becomes effective upon filing or some other date as specified by the company. The offering is not subject to suspension by the Commission. These provisions are not limited to specific services.

A promotional service offering is a temporary change to a filed price list or tariff that decreases rates or waives conditions of service for a period that does not exceed 90 days.

Appropriation: None.

Fiscal Note: Not Requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.