HB 888 - Telephones; toll-free calling areas; 22-mile radius

First Reader Summary

A BILL to amend Article 2 of Chapter 2 of Title 46 of the Official Code of Georgia Annotated, relating to the jurisdiction, powers, and duties of the Public Service Commission generally, so as to provide that on and after January 1, 1998, there shall be toll-free calling between two telephones within a 22 mile radius of an exchange serving such telephones as such 22 mile calling areas are designated on maps on file with the Public Service Commission; and for other purposes.

Page Numbers - 1/ 2/ 3/ 4

Code Sections - 46-2-25.3

Recorded Votes

• Vote # 385 PASS 03/17/97
• Vote # 724 Adopt Con Com Rept 03/28/97

HB 888                                              HB 888/AP 
 
      H. B. No. 888 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Carter of the 166th, Murphy of the 
      18th, Shaw of the 176th, Hudson of the 156th and Coleman of 
      the 142nd 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 2 of Chapter 2 of Title 46 of the Official 
  1- 2  Code of Georgia Annotated, relating to the jurisdiction, 
  1- 3  powers, and duties of the Public Service Commission 
  1- 4  generally, so as to provide for a 22 mile toll-free calling 
  1- 5  area within certain local telephone exchanges; to provide 
  1- 6  that the commission shall determine the rate increase 
  1- 7  necessary to implement such a calling area; to provide that 
  1- 8  in certain cases the commission shall poll the subscribers 
  1- 9  of each such exchange; to provide that under certain 
  1-10  conditions the commission shall order the implementation of 
  1-11  a 22 mile toll-free calling area and a concurrent rate 
  1-12  increase; to provide for determination of net gain; to 
  1-13  provide for applicability with respect to other laws; to 
  1-14  provide an effective date; to repeal conflicting laws; and 
  1-15  for other purposes. 
 
  1-16       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-17                           SECTION 1. 
 
  1-18  Article 2 of Chapter 2 of Title 46 of the Official Code of 
  1-19  Georgia Annotated, relating to the jurisdiction, powers, and 
  1-20  duties of the Public Service Commission generally, is 
  1-21  amended by adding between Code Sections 46-2-25.2 and 
  1-22  46-2-26 a new Code Section 46-2-25.3 to read as follows: 
 
  1-23    "46-2-25.3. 
 
  1-24    (a) On and after June 1, 1998, there shall be toll-free 
  1-25    calling between two telephones within a 22 mile radius of 
  1-26    an exchange serving such telephones as such 22 mile 
  1-27    calling areas are designated on maps on file with the 
  1-28    commission in any local exchange as provided in subsection 
  1-29    (b) or (c) of this Code section; provided, however, that 
  1-30    the provisions of this Code section shall not apply to a 
  1-31    subscriber who has elected an optional plan.  Such calls 
  1-32    made in the 22 mile radius shall be considered local 
  1-33    calls.  Nothing in this subsection shall preclude the 
  1-34    offer of optional rate plans. 
 
 
 
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  2- 1      (b)(1) For each telephone company which has not elected 
  2- 2      to have its rates, terms, and conditions for services 
  2- 3      determined pursuant to the alternative regulation 
  2- 4      provided for in Article 4 of Chapter 5 of this title, 
  2- 5      the Public Service Commission may conduct hearings and 
  2- 6      accept evidence and, upon consideration of such 
  2- 7      evidence, shall determine if any telephone company 
  2- 8      should be authorized to increase its rates for basic 
  2- 9      exchange service to cover the reasonable costs of 
  2-10      providing such toll-free service to customers of the 
  2-11      telephone company throughout the 22 mile calling areas 
  2-12      and to continue a reasonable rate of return on 
  2-13      investment authorized in the rate schedule previously 
  2-14      approved by the Public Service Commission for such 
  2-15      telephone company. Such determination shall consider the 
  2-16      availability of funds and other revenue sources to 
  2-17      affected companies to offset the costs associated with 
  2-18      such toll-free calling areas. It shall be within the 
  2-19      discretion of the Public Service Commission to determine 
  2-20      the methodology and source of recovery for any such 
  2-21      affected telephone company. In determining the method of 
  2-22      offsetting the costs associated with the 22 mile plan, 
  2-23      the Public Service Commission shall first utilize any 
  2-24      available earnings at the telephone companies seeking 
  2-25      assistance in excess of those authorized in their 
  2-26      respective tariffs. The commission shall be authorized 
  2-27      to approve any increase in rates which the commission 
  2-28      determines to be necessary to implement and accomplish 
  2-29      the toll-free calling requirements of this Code section. 
 
  2-30      (2) If the rate of increase determined pursuant to 
  2-31      paragraph (1) of this subsection does not exceed $2.00 
  2-32      or 25 percent of the basic service rate then in effect, 
  2-33      the commission shall require the concurrent 
  2-34      implementation of a 22 mile toll-free expanded calling 
  2-35      area and the increase in basic local exchange service 
  2-36      rates for that exchanges, and the local exchange company 
  2-37      shall be permitted to increase the basic local exchange 
  2-38      service rates notwithstanding any provision of Chapter 5 
  2-39      of this title to the contrary. 
 
  2-40      (3) If the rate of increase determined pursuant to 
  2-41      paragraph (1) of this subsection exceeds $2.00 or 25 
  2-42      percent of the basic service rate then in effect, the 
  2-43      commission shall conduct balloting of the subscribers in 
  2-44      each local exchange proposed to receive the 22 mile 
  2-45      toll-free expanded calling area service. If a majority 
 
 
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  3- 1      of those subscribers who return ballots is in favor of 
  3- 2      both the service and the requisite increase in basic 
  3- 3      local exchange service rates, the commission shall 
  3- 4      require the  concurrent implementation of a 22 mile 
  3- 5      toll-free expanded calling area and the increase in 
  3- 6      basic local exchange service rates for that exchange, 
  3- 7      and the local exchange company shall be permitted to 
  3- 8      increase the basic local exchange service rates 
  3- 9      notwithstanding any provision of Chapter 5 of this title 
  3-10      to the contrary. 
 
  3-11      (c)(1) For each telephone company which has elected to 
  3-12      have its rates, terms, and conditions for services 
  3-13      determined pursuant to the alternative regulation 
  3-14      provided for in Article 4 of Chapter 5 of this title, 
  3-15      the commission shall determine for each local exchange 
  3-16      company the increase in rates for basic local exchange 
  3-17      services necessary to recover fully all revenues which 
  3-18      would be lost if a 22 mile toll-free expanded calling 
  3-19      area were implemented in that local exchange. 
 
  3-20      (2) If the rate of increase determined pursuant to 
  3-21      paragraph (1) of this subsection does not exceed $2.00 
  3-22      or 25 percent of the basic service rate then in effect, 
  3-23      the commission shall require the concurrent 
  3-24      implementation of a 22 mile toll-free expanded calling 
  3-25      area and the increase in basic local exchange service 
  3-26      rates for that exchanges, and the local exchange company 
  3-27      shall be permitted to increase the basic local exchange 
  3-28      service rates notwithstanding any provision of Chapter 5 
  3-29      of this title to the contrary. 
 
  3-30      (3) If the rate of increase determined pursuant to 
  3-31      paragraph (1) of this subsection exceeds $2.00 or 25 
  3-32      percent of the basic service rate then in effect, the 
  3-33      commission shall conduct balloting of the subscribers in 
  3-34      each local exchange proposed to receive the 22 mile 
  3-35      toll-free expanded calling area service. If a majority 
  3-36      of those subscribers who return ballots is in favor of 
  3-37      both the service and the requisite increase in basic 
  3-38      local exchange service rates, the commission shall 
  3-39      require the  concurrent implementation of a 22 mile 
  3-40      toll-free expanded calling area and the increase in 
  3-41      basic local exchange service rates for that exchange, 
  3-42      and the local exchange company shall be permitted to 
  3-43      increase the basic local exchange service rates 
 
 
 
 
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  4- 1      notwithstanding any provision of Chapter 5 of this title 
  4- 2      to the contrary. 
 
  4- 3      (d)(1) As used in this subsection, the term 'net gain' 
  4- 4      means the net revenue impact from the implementation 
  4- 5      less costs incurred as a result of the implementation of 
  4- 6      a 22 mile toll-free calling area. 
 
  4- 7      (2) The commission shall adopt a methodology to provide 
  4- 8      that any net gain which a telecommunications company 
  4- 9      experiences as a result of implementing this Code 
  4-10      section be passed on to end user customers. 
 
  4-11    (e) Nothing in this Code section shall be interpreted as 
  4-12    amending, modifying, or repealing Code Section 46-2-23, 
  4-13    relating to the rate-making power of the Public Service 
  4-14    Commission generally and special provisions concerning 
  4-15    telecommunications companies, or Article 4 of Chapter 5 of 
  4-16    this title, 'The Telecommunications and Competition 
  4-17    Development Act of 1995.'" 
 
  4-18                           SECTION 2. 
 
  4-19  This Act shall become effective upon its approval by the 
  4-20  Governor or upon its becoming law without such approval. 
 
  4-21                           SECTION 3. 
 
  4-22  All laws and parts of laws in conflict with this Act are 
  4-23  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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