BILL REQ. #:  S-2048.1 

Read first time 02/21/2007.   Referred to Committee on Water, Energy & Telecommunications.

     AN ACT Relating to authorizing locally regulated telecommunications services to the general public and public agencies by public utility districts; and amending RCW 54.16.330, 54.16.340, and 54.16.005.

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

Sec. 1   RCW 54.16.330 and 2004 c 158 s 1 are each amended to read as follows:
     (1) A public utility district is authorized to provide telecommunications services.
     (2) A public utility district ((in existence on June 8, 2000,)) may construct, purchase, acquire, develop, finance, lease, license, handle, provide, add to, contract for, interconnect, alter, improve, repair, operate, and maintain any telecommunications facilities within or without the district's limits ((for the following purposes:
     (a) For the district's internal telecommunications needs; and
     (b) For the provision of wholesale telecommunications services within the district and by contract with another public utility district.
     Nothing in this subsection shall be construed to authorize public utility districts to provide telecommunications services to end users)).
     (((2))) (3) A public utility district providing ((wholesale)) telecommunications services shall ensure that rates, terms, and conditions for such services are not unduly or unreasonably discriminatory or preferential. Rates, terms, and conditions are discriminatory or preferential when a public utility district offering rates, terms, and conditions to an entity for ((wholesale)) telecommunications services does not offer substantially similar rates, terms, and conditions to all other entities seeking substantially similar services.
     (((3))) (4) A public utility district providing ((wholesale)) telecommunications services shall not be required to but may establish a separate utility system or function for such purpose. In either case, a public utility district providing ((wholesale)) telecommunications services shall separately account for any revenues and expenditures for those services according to standards established by the state auditor pursuant to its authority in chapter 43.09 RCW and consistent with the provisions of this title. Any revenues received from the provision of ((wholesale)) telecommunications services must be dedicated to costs incurred to build and maintain any telecommunications facilities constructed, installed, or acquired to provide such services, including payments on debt issued to finance such services, until such time as any bonds or other financing instruments executed after June 8, 2000, and used to finance such telecommunications facilities or services are discharged or retired.
     (((4))) (5) When a public utility district provides ((wholesale)) telecommunications services, all telecommunications services rendered to the district for the district's internal telecommunications needs shall be allocated or charged at its true and full ((value)) cost. A public utility district may not charge its nontelecommunications operations rates that are preferential or discriminatory compared to those it charges entities purchasing ((wholesale)) substantially similar telecommunications services.
     (((5))) (6) A public utility district shall not exercise powers of eminent domain to acquire telecommunications facilities or contractual rights held by any other person or entity to telecommunications facilities.
     (((6))) (7) Except as otherwise specifically provided, a public utility district may exercise any of the powers granted to it under this title and other applicable laws in carrying out the powers authorized under this section.
     (8) Nothing in chapter 81, Laws of 2000 limits any existing authority of a public utility district under this title.

Sec. 2   RCW 54.16.340 and 2000 c 81 s 5 are each amended to read as follows:
     (1) A person or entity that has requested ((wholesale)) telecommunications services from a public utility district providing ((wholesale telecommunications)) such services under this chapter may petition the commission ((under the procedures set forth in RCW 80.04.110 (1) through (3))) if it believes the district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential and the commission has not issued a telecommunications services rate determination within the last year. ((The person or entity shall provide the public utility district notice of its intent to petition the commission and an opportunity to review within thirty days the rates, terms, and conditions as applied to it prior to submitting its petition.)) In determining whether a district is providing discriminatory or preferential rates, terms, and conditions, the commission may consider such matters as service quality, cost of service, technical feasibility of connection points on the district's facilities, time of response to service requests, system capacity, and other matters reasonably related to the provision of wholesale telecommunications services. If the commission, after notice and hearing, determines that ((a)) the public utility district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential, it shall ((issue a final order finding noncompliance with this section and setting forth the specific areas of apparent noncompliance. An order imposed under this section shall be enforceable in any court of competent jurisdiction)) amend the rates, terms, and conditions accordingly and implement the same within thirty days.
     (2) ((The commission may order a public utility district to pay a share of the costs incurred by the commission in connection with adjudicating or enforcing the provisions of this section)) Nothing in this section shall be construed or is intended to confer upon the Washington utilities and transportation commission any authority to exercise jurisdiction over locally regulated utilities.
     (((3) Without limiting other remedies at law or equity, the commission and prevailing party may also seek injunctive relief to compel compliance with an order.
     (4) Nothing in this section shall be construed to affect the commission's authority and jurisdiction with respect to actions, proceedings, or orders permitted or contemplated for a state commission under the federal telecommunications act of 1996, P.L. 104-104 (110 Stat. 56).))

Sec. 3   RCW 54.16.005 and 2000 c 81 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commission" means the ((Washington utilities and transportation)) commission established in RCW 54.12.010, of the locally regulated utility.
     (2) "Telecommunications" has the same meaning as that contained in RCW 80.04.010.
     (3) "Telecommunications facilities" means lines, conduits, ducts, poles, wires, cables, crossarms, receivers, transmitters, instruments, machines, appliances, instrumentalities and all devices, real estate, easements, apparatus, property, and routes used, operated, owned, or controlled by any entity to facilitate the provision of telecommunications services.
     (4) "Telecommunications services" means the provision, to the general public and public agencies as defined in RCW 39.34.020, of telecommunications and telecommunications facilities, and internet services and information transmitted utilizing telecommunications facilities. "Telecommunications services" also includes wholesale telecommunications services. "Information" is defined in RCW 80.04.010.
     (5) "Wholesale telecommunications services" means the provision of telecommunications services or facilities for resale by an entity authorized to provide telecommunications services to the general public and internet service providers.
     (6) "Locally regulated utility" means a public utility district not subject to rate or service regulation by the Washington utilities and transportation commission.