S-2396               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 4150

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senate Committee on Energy and Utilities (originally sponsored by Senators Goltz, Williams, Bailey, Kreidler and Halsan)

Read first time 3/8/85.

AN ACT Relating to the preservation of universal telecommunications service and the protection of basic voice grade telecommunications service; and adding new sections to chapter 80.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 80.04 RCW to read as follows:

          The legislature declares it is the policy of the state to preserve affordable universal telecommunications service, and ensure that consumers of basic voice grade telecommunications service are charged rates which do not include subsidies to, or charges for, other services.

NEW SECTION. Sec. 2.  A new section is added to chapter 80.04 RCW to read as follows:

          No rate, charge, tariff or toll for voice grade local exchange service shall be found by the commission to be reasonable and just if it includes any cost other than:  (1) Direct costs of voice grade local exchange service; (2) indirect costs properly allocable to voice grade local exchange service; (3) overhead costs properly allocable to voice grade local exchange service; (4) a fair allocation of joint and common costs benefitting more than one service; and (5) a fair, just and reasonable rate of return upon property used and useful for voice grade local exchange service.