H-3941              _______________________________________________

                                                   HOUSE BILL NO. 1645

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Todd and Jacobsen

Read first time 1/22/88 and referred to Committee on Energy & Utilities.

AN ACT Relating to telecommunications; and amending RCW 80.36.330.

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

        Sec. 1.  Section 5, chapter 450, Laws of 1985 and RCW 80.36.330 are each amended to read as follows:

          (1) The commission may classify a telecommunications service provided by a telecommunications company as a competitive telecommunications service if it finds, after notice and hearing, that the service is subject to effective competition.  Effective competition means that customers of the service have reasonably available alternatives and that the service is not provided to a significant captive customer base.  In determining whether a service is competitive, factors the commission shall consider include but are not limited to:

          (a) The number and size of alternative providers of services;

          (b) The extent to which services are available from alternative providers in the relevant market;

          (c) The ability of alternative providers to make functionally equivalent or substitute services readily available at competitive rates, terms, and conditions; and

          (d) Other indicators of market power, which may include market share, growth in market share, ease of entry, and the affiliation of providers of services.

          (2) ((When the commission finds that a telecommunications company has demonstrated that a telecommunications service is competitive, the commission may permit the service to be provided under a price list effective on ten days notice to the commission and customers.  The commission shall prescribe the form of notice.)) Services classified as competitive shall be subject to minimal regulation.  Minimal regulation means that competitive telecommunications companies may file, instead of tariffs, price lists which shall be effective after ten days' notice to the commission and customers.  The commission shall prescribe the form of notice.  The commission may also waive other regulatory requirements under this title for competitive telecommunications services when it determines that competition will serve the same purposes as public interest regulation.  The commission may waive different regulatory requirements for different competitive services if such different treatment is in the public interest.  The commission may adopt procedural rules necessary to  implement this section.

          (3) Prices or rates charged for competitive telecommunications services shall cover their cost.  The commission shall determine proper cost standards to implement this section, provided that in making any assignment of costs or allocating any revenue requirement, the commission shall act to preserve affordable universal telecommunications service.

          (4) The commission may investigate prices for competitive telecommunications services upon complaint.  In any complaint proceeding initiated by the commission, the telecommunications company providing the service shall bear the burden of proving that the prices charged cover cost, and are fair, just, and reasonable.

          (5) Telecommunications companies shall provide the commission with all data it deems necessary to implement this section.

          (6) No losses incurred by a telecommunications company in the provision of competitive services may be recovered through rates for noncompetitive services.  The commission may order refunds or credits to any class of subscribers to a noncompetitive telecommunications service which has paid excessive rates because of below cost pricing of competitive telecommunications services.

          (7) The commission may reclassify any competitive telecommunications service if reclassification would protect the public interest.