Pennsylvania Act 1993-67 — PUBLIC UTILITY CODE (66 PA.C.S.) - AMEND REGULATIONS

act-1993-0-671993 Pa. Act 67Law

Act text
PUBLIC UTILITY CODE (66 PA.C.S.) - AMEND REGULATIONS
                  Act of Jul. 8, 1993, P.L. 456, No. 67               Cl. 66
                             Session of 1993

                               No. 1993-67

                                  AN ACT

     HB 84

     Amending Title 66 (Public Utilities) of the Pennsylvania
        Consolidated Statutes, providing for an alternative form of
        regulation of telecommunications services; providing
        protection for public utility employees who report a
        violation or suspected violation of Federal, State or local
        law; providing protection for such employees who participate
        in investigations, hearings, inquiries or court actions; and
        prescribing remedies and penalties.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Title 66 of the Pennsylvania Consolidated
     Statutes is amended by adding a chapter to read:
                                CHAPTER 30
                      ALTERNATIVE FORM OF REGULATION
                      OF TELECOMMUNICATIONS SERVICES
     Sec.
     3001.  Declaration of policy.
     3002.  Definitions.
     3003.  Local exchange telecommunications company request for
            alternative regulation and network modernization
            implementation plan.
     3004.  Commission review and approval of petition and plan.
     3005.  Competitive services.
     3006.  Streamlined form of rate regulation.
     3007.  Determination of access charges.
     3008.  Interexchange telecommunications carrier.
     3009.  Additional powers and duties.
      § 3001.  Declaration of policy.
        The General Assembly finds and declares that it is the policy
     of this Commonwealth to:
            (1)  Maintain universal telecommunications service at
        affordable rates while encouraging the accelerated deployment
        of a universally available, state-of-the-art, interactive,
        public-switched broadband telecommunications network in
        rural, suburban and urban areas, including deployment of
        broadband facilities in or adjacent to the public rights-of-
        way abutting public schools, including the administrative
        offices supporting public schools; industrial parks; and
        health care facilities, as defined in the act of July 19,
        1979 (P.L.130, No.48), known as the Health Care Facilities
        Act.
            (2)  Ensure that customers pay only reasonable charges
        for local exchange telecommunications services which shall be
        available on a nondiscriminatory basis.
            (3)  Ensure that rates for noncompetitive
        telecommunications services do not subsidize the competitive
        ventures of providers of telecommunications services.
            (4)  Provide diversity in the supply of existing and
        future telecommunications services and products in
        telecommunications markets throughout this Commonwealth by
        ensuring that rates, terms and conditions for noncompetitive
        services, including access services, are reasonable and do
        not impede the development of competition.
            (5)  Ensure the efficient delivery of technological
        advances and new services throughout this Commonwealth in
        order to improve the quality of life for all Pennsylvanians.
            (6)  Encourage the provision of telecommunications
        products and services that enhance the quality of life of
        people with disabilities.
            (7)  Promote and encourage the provisions of competitive
        services by a variety of service providers on equal terms
        throughout all geographic areas of this Commonwealth.
            (8)  Encourage the competitive supply of any service in
        any region where there is market demand.
            (9)  Encourage joint ventures between local exchange
        telecommunications companies and other entities where such
        joint ventures accelerate, improve or otherwise assist a
        local exchange telecommunications company in carrying out its
        network modernization implementation plan.
      § 3002.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Aggregator telephone."  A telephone which is made available
     to the transient public, customers or patrons, including, but
     not limited to, coin telephones, credit card telephones and
     telephones located in hotels, motels, hospitals and
     universities.
        "Alternative form of regulation."  A form of regulation of
     telecommunications services other than the traditional rate
     base/rate of return regulation, to be determined by the
     commission. The term includes the use of any index, formula,
     rate stability plan, zone of rate freedom or streamlined form of
     rate regulation.
        "Basic service functions."  Those basic components of the
     local exchange carrier network which are necessary to provide a
     telecommunications service and which represent the smallest
     feasible level of unbundling capable of being tariffed and
     offered as a service.
        "Broadband."  A communication channel using any technology
     and having a bandwidth equal to or greater than 1.544 megabits
     per second.
        "Competitive service."  A service or business activity
     determined to be competitive under this chapter or any
     telecommunications service determined by the commission to be
     competitive under this chapter.
        "Interexchange telecommunications carrier."  A carrier other
     than a local exchange telecommunications company authorized by
     the commission to provide long-distance telecommunications
     services.
        "Local exchange telecommunications company."  A carrier
     authorized by the commission to provide local telecommunications
     services.
        "Noncompetitive service."  The term includes any protected
     telephone service as defined under this chapter or a service
     that has been determined by the commission as not a competitive
     service.
        "Optional calling plan."  A discount toll plan required by
     the commission to be offered by either a local exchange carrier
     or an interexchange carrier when justified by call usage for a
     telephone route. The provision of service under an optional
     calling plan shall be considered noncompetitive service unless
     determined otherwise by the commission.
        "Protected telephone service."  The term includes the
     following telecommunications services provided by a local
     exchange telecommunications company, unless the commission
     determines, after notice and hearing, that the service is
     competitive:
            (1)  Telecommunications service provided to business or
        residential consumers that is necessary for completing a
        local exchange call.
            (2)  Touch-tone service.
            (3)  Switched-access service.
            (4)  Special-access service.
            (5)  Ordering, installation, restoration and
        disconnection of these services.
        "Special-access service."  Service provided over dedicated,
     nonswitched facilities by local exchange telecommunications
     companies to interexchange carriers or other large volume users
     which provide connection between an interexchange carrier or
     private network and a customer's premises.
        "Streamlined form of rate regulation."  A simplified method
     of rate regulation of small local exchange telecommunications
     companies serving less than 50,000 access lines which utilizes a
     methodology other than traditional rate base/rate of return
     regulation and procedures other than those provided in Chapter
     13 (relating to rates and rate making). Forms of simplified
     regulation may include, but are not limited to, the use of an
     index, formula, rate stability plan, zone of rate freedom or
     other abbreviated ratemaking procedures.
        "Switched-access service."  A service which provides for the
     use of common terminating, switching and trunking facilities of
     a local exchange telecommunications company's public switched
     network. The term includes, but is not limited to, the rates for
     local switching, common and dedicated transport and the carrier
     common line charge.
        "Telecommunications service."  A utility service, involving
     the transmission of messages, which is subject to this title.
        "Universal broadband availability."  Access to broadband
     service by each bona fide telephone customer of a local exchange
     telecommunications company within five days after a request for
     broadband service is received by any telecommunications company.
      § 3003.  Local exchange telecommunications company request for
                alternative regulation and network modernization
                implementation plan.
        (a)  Petition.--When a local exchange telecommunications
     company seeks to be regulated under an alternative form of
     regulation, it shall submit to the commission a petition
     requesting the alternative form of regulation. In the petition,
     the company shall submit its proposal and supporting data for an
     alternative form of regulation. The petition shall also identify
     all competitive services which the local exchange
     telecommunications company proposes at that time.
        (b)  Network modernization implementation plan.--The petition
     shall also include the company's network modernization
     implementation plan under which:
            (1)  Each local exchange telecommunications company shall
        commit to universal broadband availability and shall commit
        to converting 100% of its interoffice and distribution
        telecommunications network to broadband capability by
        December 31, 2015. The plan shall identify the local exchange
        telecommunications company's present and projected deployment
        of digital switches in central offices, fiber optic trunk
        line capability between central offices, intelligent network
        signaling capability and integrated services digital network
        (ISDN) availability in central offices.
            (2)  Each local exchange telecommunications company shall
        reasonably balance deployment of its broadband network
        between rural, urban and suburban areas within its service
        territory.
            (3)  The deployment of broadband facilities shall be in
        or adjacent to public rights-of-way abutting public schools,
        including the administrative offices supporting public
        schools; industrial parks; and health care facilities, as
        defined in the act of July 19, 1979 (P.L.130, No.48), known
        as the Health Care Facilities Act.
            (4)  A local exchange telecommunications company shall
        file a network modernization implementation plan with its
        petition for alternative form of regulation with the
        commission which identifies and describes in detail the
        company's implementation plan for complying with paragraphs
        (1), (2) and (3). The plan shall specify interim target dates
        at not more than five-year intervals for deployment of its
        broadband network.
            (5)  Joint ventures between local exchange
        telecommunications companies and other entities may be
        included as part of a local exchange telecommunications
        company's network modernization implementation plan where the
        joint ventures accelerate, improve or otherwise assist a
        local exchange telecommunications company in carrying out its
        network modernization implementation plan. The joint ventures
        may be proposed by any interested party. Consistent with
        parallel provisions in Federal antitrust statutes and Federal
        judicial opinions interpreting those Federal statutes, no
        joint ventures by public utilities or other entities engaged
        in such joint ventures shall constitute a restraint of trade
        or commerce in this Commonwealth.
            (6)  The network modernization implementation plan shall
        be updated and filed with the commission biennially. The
        commission shall review and approve the plan updates as long
        as the updates are found to be consistent with and in
        furtherance of the local exchange telecommunications
        company's currently effective implementation plan.
        (c)  Filing.--The company shall file its petition, plan and
     supporting data concurrently with the Office of Consumer
     Advocate, the Office of Small Business Advocate and any
     interexchange telecommunications carrier that has requested
     notice of the filings from the local exchange telecommunications
     company. At the same time, the company shall give notice to its
     ratepayers through a billing insert or bill message, to its
     employees and to the public of the filing of its petition for an
     alternative form of regulation and network modernization
     implementation plan in accordance with the commission's rules
     and regulations.
        (d)  Updating.--The commission shall require any local
     exchange telecommunications company which has not filed a
     petition and plan within five years of the effective date of
     this chapter to show cause why it has not done so.
      § 3004.  Commission review and approval of petition and plan.
        (a)  Authorization.--In determining just and reasonable rates
     in accordance with section 1301 (relating to rates to be just
     and reasonable), the commission may authorize a local exchange
     telecommunications company to set rates based on an alternative
     form of regulation pursuant to a plan approved by the commission
     under this chapter.
        (b)  Review and approval of petition and plan.--The
     commission shall, after notice and hearing, review the petition
     and plan for an alternative form of regulation and approve the
     petition and plan, approve them with modifications or deny them
     as not reasonably designed to meet the requirements of this
     chapter. If the commission denies the petition and plan or
     approves them with modifications, the commission shall set forth
     in its order each specific reason for the denial or
     modification. If the commission does not act within nine months
     of the filing date of the petition and plan, the petition and
     plan shall be deemed approved. If the commission approves the
     petition and plan with modifications, the local exchange
     telecommunications company may, at its option, withdraw its
     petition and plan and continue to be regulated under its
     existing form of regulation or a streamlined form of regulation
     for which it qualifies. If a local exchange telecommunications
     company's petition and plan are withdrawn and a subsequent
     petition and plan are not submitted within five years from the
     effective date of this chapter, the commission shall require the
     local exchange telecommunications company to show cause why it
     has not done so. If the commission rejects a petition and plan
     submitted by a local exchange telecommunications company, that
     company shall file another petition and plan within six months
     of the commission's final order.
        (c)  Commission review of network modernization
     implementation plan.--The commission shall review each local
     exchange telecommunications company's network modernization
     implementation plan to determine if the plan is consistent with
     the provisions of this chapter and in the public interest. In
     reviewing a network modernization implementation plan, the
     commission may require a local exchange telecommunications
     company to show cause why a specific joint venture opportunity
     has not been included in the plan. The commission may require
     that a local exchange telecommunications company provide
     universal broadband availability having a bandwidth greater than
     1.544 megabits per second.
        (d)  Criteria for commission review.--The commission shall
     approve the petition, after notice and hearing, only if it finds
     that the petition meets the following criteria:
            (1)  Ensures the continued affordability of protected
        telephone service.
            (2)  Assures that the rates for noncompetitive services
        are just, reasonable and not unduly discriminatory through
        the use of a price stability mechanism or other alternative
        form which may include indices, formulas, rate stability
        plans, zones of rate freedom or streamlined rate making
        plans. Subject to commission approval, a price stability
        mechanism that allows total annual revenues from
        noncompetitive services to increase or decrease from the
        previous year's total revenues from noncompetitive services
        as a result of tariff rate changes based on the annual change
        in the Gross Domestic Product Price Index, as calculated by
        the United States Department of Commerce, minus 2.25% may
        meet the requirements of this section. Tariffs to recover the
        additional revenues shall be subject to commission approval
        under section 1308 (relating to voluntary changes in rates).
            (3)  Provides for the rate deregulation of all
        competitive services, including the deregulation of rates,
        tolls, charges, rate structures, rate base, rate of return or
        earnings of competitive services. Notwithstanding the
        classification of a local exchange telecommunications service
        as competitive, a local exchange telecommunications company
        may not de-average standard message toll service rates unless
        authorized to do so by the commission.
            (4)  Will not unduly or unreasonably prejudice or
        disadvantage a customer class or providers of competitive
        services.
            (5)  Is in the public interest.
            (6)  Enhances economic development in this Commonwealth
        while maintaining affordable rates.
            (7)  Contains a comprehensive program of service quality
        standards in accordance with section 1501 (relating to
        character of service and facilities), including procedures
        for commission review.
            (8)  Specifically identifies the benefits to be derived
        from the alternative form of regulation, including, but not
        limited to, the reduction of regulatory delays and costs.
            (9)  Complies with section 3007 (relating to
        determination of access charges) under this chapter.
            (10)  Will permit the deployment of new voice, data and
        video services to rural, suburban and urban areas throughout
        the local exchange telecommunications company service
        territory.
            (11)  Considers the adequacy of local calling areas in
        view of relevant local communities of interest.
            (12)  Assures that low-income individuals are able to
        connect to and maintain in-home access to protected telephone
        services. The residential budget usage option service offered
        by the local exchange company on the effective date of this
        chapter shall not be eliminated.
            (13)  Assures that the provision of telecommunications
        products and services enhances the quality of life of people
        with disabilities.
            (14)  Ensures that the economic risks associated with the
        provision of a competitive service by a local exchange
        telecommunications company or its affiliates shall not be
        borne by those customers who do not purchase such services.
            (15)  Assures that a local exchange telecommunications
        company shall provide aggregate customer and network
        information on a nondiscriminatory basis to any other
        provider, unless prohibited by law.
        (e)  Burden of proof.--The burden of proof shall be on the
     local exchange telecommunications company requesting an
     alternative form of regulation.
      § 3005.  Competitive services.
        (a)  Identification of competitive service.--The commission
     is authorized to determine, after notice and hearing, whether a
     telecommunications service or other service or business activity
     offered by a local exchange company is a competitive service. A
     local exchange telecommunications company may petition the
     commission for a determination of whether a telecommunications
     service or other service or business activity offered is
     competitive, either in conjunction with a petition to be
     regulated under an alternative form of regulation or at any time
     after the granting of the petition. Requests for a competitive
     classification not filed as part of a petition for an
     alternative regulatory framework shall have an effective date of
     not less than 60 days from the filing date. The commission shall
     enter an order approving or disapproving the petition within 180
     days of the filing date. In making the determination, the
     commission shall consider all relevant evidence submitted to it,
     including evidence presented by providers of competitive
     services. In a proceeding to determine whether a
     telecommunications service or other service or business activity
     offered is a competitive service, the following shall apply:
            (1)  The commission shall make findings which, at a
        minimum, shall include evidence of ease of market entry,
        including the existence and impact of cross-subsidization,
        rights-of-way, pole attachments and unavoided costs; presence
        and viability of other competitors, including market shares;
        the ability of competitors to offer those services or other
        activities at competitive prices, terms and conditions; the
        availability of like or substitute services or other
        activities in the relevant geographic area; the effect, if
        any, on protected services; the overall impact of the
        proposed regulatory changes on the continued availability of
        existing services; whether the consumers of the service would
        receive an identifiable benefit from the provision of the
        service or other activity on a competitive basis; the degree
        of regulation necessary to prevent abuses or discrimination
        in the provision of the service or other activity and any
        other relevant factors which are in the public interest. If a
        local exchange telecommunications company introduces a
        telecommunications service or other service or business
        activity that has not previously been offered, the service or
        other activity will not be deemed competitive unless it is so
        determined by the commission under the provisions of this
        chapter.
            (2)  The burden of proving that a telecommunications
        service or other service or business activity offered is
        competitive rests on the party seeking to have the service
        classified as competitive.
        (b)  Regulations.--The commission shall establish regulations
     to prevent local exchange telecommunications companies from
     engaging in unfair competition and require that local exchange
     telecommunications companies provide reasonable
     nondiscriminatory access to competitors for all services and
     facilities necessary to provide competing services to consumers.
        (c)  Reports.--The commission shall determine, by rule,
     regulation or order, what reports are necessary to monitor the
     accounting for and competitiveness of a competitive service.
        (d)  Reclassification.--The commission shall have the
     authority to reclassify a telecommunications service or other
     service or business activity that it has previously found to be
     competitive if, after notice and hearing, it determines, upon
     application of the criteria set forth in this chapter, that
     sufficient competition is no longer present, that the local
     exchange company has engaged in unfair competition with respect
     to the service or that the local exchange company has failed to
     provide nondiscriminatory access in the provision of the
     service. If the commission finds that a reclassification is
     necessary, the commission must determine whether the rate for
     the telecommunications service or other service or business
     activity is just and reasonable in accordance with section 1301
     (relating to rates to be just and reasonable). If the
     telecommunications service or other service or business activity
     subsequently becomes competitive, the local exchange
     telecommunications company shall petition the commission to make
     a determination of competitiveness for the service under the
     provisions of this chapter.
        (e)  Additional determinations.--The commission shall
     determine whether local exchange telecommunications companies
     are complying with the following provisions:
            (1)  The local exchange telecommunications company shall
        unbundle each basic service function on which the competitive
        service depends and shall make the basic service functions
        separately available to any customer under nondiscriminatory
        tariffed terms and conditions, including price, that are
        identical to those used by the local exchange
        telecommunications company and its affiliates in providing
        its competitive service.
            (2)  The price which a local exchange telecommunications
        company charges for a competitive service shall not be less
        than the rates charged to others for any basic service
        functions used by the local exchange telecommunications
        company or its affiliates to provide the competitive service.
        Revenues from the rates for access services reflected in the
        price of competitive services shall be included in the total
        revenues produced by the noncompetitive services.
            (3)  Tariffs or price lists for competitive services
        filed with the commission shall either be in the public
        records or, if the commission determines that the rates are
        proprietary, be filed under seal and made available under the
        terms of an appropriate protective agreement of the type used
        in cases before the commission.
        (f)  Service and notice.--At the time a local exchange
     telecommunications company files a petition for an alternative
     form of regulation to classify any service or other activity as
     competitive or to reclassify an existing service or other
     activity as competitive or for the transfer of any assets of
     services or other activities classified as competitive by the
     commission, the local exchange telecommunications company shall
     serve a copy on all interexchange telecommunications carriers
     who have requested notice of the filings from the local exchange
     telecommunications company as well as the Office of Consumer
     Advocate and the Office of Small Business Advocate. At the same
     time, the local exchange telecommunications company must give
     notice to the public, its employees and its ratepayers through a
     billing insert or bill message in accordance with the
     commission's rules and regulations.
        (g)  Prohibitions.--The local exchange telecommunications
     company shall be prohibited from engaging in the following:
            (1)  The local exchange telecommunications company shall
        not maintain or impose any resale or sharing restrictions on
        any service which the commission finds to be competitive.
            (2)  A local exchange telecommunications company may not
        use revenues earned or expenses incurred in conjunction with
        noncompetitive services to subsidize or support any
        competitive services. The commission shall establish
        regulations which must be followed by local exchange
        telecommunications companies for the purpose of allocating
        costs for accounting and rate making among telephone services
        in order to prevent subsidization or support for competitive
        services.
        (h)  Subsidiary.--For local exchange telecommunications
     companies serving over 1,000,000 access lines, the commission
     may require that a competitive service be provided through a
     subsidiary which is fully separated from the local exchange
     telecommunications company if the commission finds that there is
     a substantial possibility that the provision of the service on a
     nonseparated basis will result in unfair competition.
      § 3006.  Streamlined form of rate regulation.
        (a)  Streamlined form of rate regulation petition.--In
     accordance with sections 3003 (relating to local exchange
     telecommunications company request for alternative regulation
     and network modernization implementation plan) and 3004
     (relating to commission review and approval of petition and
     plan), local exchange telecommunications companies serving less
     than 50,000 access lines within this Commonwealth may petition
     the commission to establish a streamlined form of rate
     regulation to be applicable to their operations. The streamlined
     form of rate regulation shall be designed to decrease regulatory
     delays and costs and may include, but is not limited to, use of
     an index formula, price stability plan, zone of rate freedom or
     a combination thereof. The streamlined form of rate regulation
     may be proposed to revise or decrease notice periods, suspension
     periods and other procedures currently required by Chapter 13
     (relating to rates and rate making) consistent with due process
     requirements. The streamlined form of rate regulation shall be
     proposed to be applicable to all of the local exchange
     companies' rates and services within the commission's
     jurisdiction.
        (b)  Required service.--Petitions for a streamlined form of
     rate regulation shall be served on the Office of Consumer
     Advocate, the Office of Small Business Advocate and any
     interexchange carrier that has requested notice of the filings
     from the local exchange telecommunications company. At the same
     time, the company shall give notice to its ratepayers and the
     public of the filing of its petition.
        (c)  Commission review.--The commission shall review a
     streamlined form of rate regulation for a local exchange
     telecommunications company within nine months of the filing of
     the petition. If the commission does not act within nine months
     of the filing of the petition, the plan shall be deemed
     approved. The commission shall approve a streamlined form of
     rate regulation for a local exchange telecommunications company
     upon reaching the following findings:
            (1)  The proposal reduces regulatory delays and costs.
            (2)  The proposal is consistent with general due process
        requirements.
            (3)  The proposal is consistent and in compliance with
        all of the provisions of this chapter.
            (4)  The proposal is in the public interest.
        (d)  Filing requirements.--For local exchange
     telecommunications companies serving less than 50,000 access
     lines in this Commonwealth, filing requirements and audit
     requirements are limited to an annual financial report,
     including rate of return data for surveillance purposes; an
     annual deaf, speech-impaired and hearing-impaired relay
     information report; an annual service report; an annual access
     line report; an annual State tax adjustment computation for
     years in which a tax change has occurred; a biennial-extended
     area service traffic study; and any additional special reports
     or studies for which the commission determines that the benefits
     generated will justify the attendant expense and administrative
     time requirements of preparing them.
        (e)  Implementation.--Upon commission approval of a
     streamlined form of rate regulation, the streamlined form of
     regulation shall be implemented and shall govern the regulation
     of the local exchange telecommunications company and shall,
     consistent with the provisions of this chapter, supersede any
     conflicting provisions of this title or other laws of this
     Commonwealth.
        (f)  Rate increases.--For local exchange telecommunications
     companies serving less than 50,000 access lines in this
     Commonwealth, a formal complaint to deny rate increases for
     protected services, unless signed by at least 20 customers of
     the local exchange telecommunications company, shall not stop
     the implementation of the rate increases, pending the
     adjudication of the formal complaint by the commission.
      § 3007.  Determination of access charges.
        Local exchange telecommunications companies serving more than
     250,000 access lines in this Commonwealth as of the effective
     date of this chapter shall comply with the following provisions:
            (1)  Local exchange telecommunications companies shall
        have an effective per-minute switched-access service price
        that shall not exceed 12¢ for the first five years from the
        implementation date of the petition and plan, unless the
        company can justify a higher rate based on the total cost of
        switched-access services. The per-minute switched-access
        service price includes both originating and terminating rates
        and excludes nonrecurring rates. A local exchange
        telecommunications company with an effective per-minute
        switched-access service price greater than 12¢ on the
        implementation date of the petition and plan shall provide
        for a revenue-neutral phasedown to not more than 12¢ in not
        more than three equal annual increments commencing with the
        implementation of the petition and plan. Upon the sixth year
        from the implementation date of the plan, the commission
        shall review the per-minute switched-access service price
        and, after notice and hearing, determine a just and
        reasonable per-minute switched-access service price.
            (2)  Local exchange telecommunications companies with an
        effective per-minute switched-access service price at or
        below 12¢, including both originating and terminating rates
        and excluding nonrecurring rates, may not increase switched-
        access prices either in conjunction with the filing or
        consideration of a petition and plan or for four years from
        the approval date of a petition, not to extend beyond
        December 31, 1999, unless the company can show that, absent
        an increase, total switched-access revenues would be below
        total switched-access cost. Revenue-neutral access tariff
        rate changes and restructures may be proposed subject to
        commission approval.
            (3)  Upon the commission's evaluation of the consistency
        of tariff rates and structures with the interstate access
        service tariff, revenue-neutral tariff rate changes and
        restructures may be proposed by local exchange
        telecommunications companies in order to implement the
        results of the commission evaluation. No rate change or
        restructure shall be approved if it constitutes or promotes
        unfair competition. Rate changes and restructures for access
        services submitted in accordance with this paragraph are
        subject to commission approval, after notice and hearing.
            (4)  Any existing limits, by tariff or otherwise, on the
        amount of revenue that a local exchange telecommunications
        company may recover from the carrier common line rate shall
        continue at the effective date of this chapter. At the
        conclusion of any phasedown period provided in paragraph (1),
        the annual revenues to be derived from carrier common line
        rates shall be no more than the total carrier common line
        revenues applicable to the final 12 months of any phasedown
        period.
      § 3008.  Interexchange telecommunications carrier.
        (a)  Competitive and noncompetitive services.--
     Telecommunications services provided by interexchange
     telecommunications carriers shall be deemed to be competitive
     services after January 1, 1994, except for the provision of the
     following interexchange services which will be deemed to be
     noncompetitive services unless determined otherwise by the
     commission:
            (1)  Interexchange service to aggregator telephones.
            (2)  Optional calling plans required by the commission to
        be offered when justified by usage over an interexchange
        route.
        (b)  Rate regulations.--The commission shall not fix or
     prescribe the rates, tolls, charges, rate structures, rate base,
     rate of return, operating margin or earnings for interexchange
     competitive services or otherwise regulate interexchange
     competitive services except as set forth in this chapter. The
     commission may require that the interexchange telecommunications
     carriers file and maintain tariffs or price lists for
     competitive telecommunications services. Nothing in this chapter
     shall limit the authority of the commission to regulate the
     privacy of interexchange service and the ordering, installation,
     restoration and disconnection of interexchange service to
     customers.
        (c)  Reclassification.--The commission shall have the
     authority to reclassify telecommunications services provided by
     an interexchange telecommunications carrier as noncompetitive
     if, after notice and hearing, it determines, upon application of
     the criteria set forth in this chapter, that sufficient
     competition is no longer present.
        (d)  Service quality standards.--The commission may establish
     service quality standards for interexchange telecommunications
     carriers. Nothing in this chapter shall limit the authority of
     the commission to promulgate service quality standards for
     interexchange telecommunications carriers or to resolve
     complaints regarding the quality of interexchange
     telecommunications carrier service. Notwithstanding the
     classification of telecommunications services as competitive,
     interexchange carriers shall not be permitted to de-average
     standard message toll service rates unless authorized to do so
     by the commission.
        (e)  Authority of commission not limited.--Nothing in this
     chapter shall limit the authority of the commission to determine
     whether an interexchange telecommunications carrier should be
     extended the privilege of operating within this Commonwealth or
     to order the filing of such reports, documents and information
     as may be necessary to monitor the market for and
     competitiveness of interexchange telecommunications services.
      § 3009.  Additional powers and duties.
        (a)  General rule.--The commission may certify more than one
     local exchange telecommunications company to provide local
     telecommunications service. Such certification shall be granted
     upon a showing that it is in the public interest and that the
     applicant possesses sufficient technical, financial and
     managerial resources.
        (b)  Powers and duties retained.--The commission shall retain
     the following powers and duties relating to the regulation of
     all local exchange telecommunications companies and
     interexchange telecommunications carriers:
            (1)  The commission shall have the power to audit the
        accounting and reporting systems of local exchange
        telecommunications companies and their transactions with
        affiliates in accordance with this title and the commission's
        present or future rules and regulations to provide a proper
        allocation of investments, costs or expenses for all
        telecommunications services or other services or business
        activities, competitive and noncompetitive.
            (2)  Nothing in this chapter shall limit the authority of
        the commission to ensure that local exchange
        telecommunications companies do not make or impose unjust
        preferences, discriminations or classifications for protected
        telephone service and other noncompetitive services.
            (3)  The commission shall establish such additional
        requirements and regulations as it determines to be necessary
        to ensure the protection of consumers.
            (4)  Notwithstanding any other provisions of this
        chapter, all services provided by a local exchange
        telecommunications company or interexchange
        telecommunications carrier shall remain subject to all
        provisions of this title and other laws of this Commonwealth
        regarding the safety, adequacy, reliability and privacy of
        telecommunications services or other services or business
        activities. All new services or changes to existing
        noncompetitive services must be reviewed by the commission
        prior to their being offered to the public to insure
        compliance with all applicable provisions regarding safety,
        adequacy, reliability and privacy of telecommunications
        services. The commission shall have the authority to reject
        or modify any such service to the extent the commission
        finds, after notice and opportunity for hearing, that the
        service is not in compliance with any such provision. Nothing
        in this chapter shall affect the commission's authority to
        regulate with respect to the ordering, installation,
        suspension, termination and restoration of any service.
            (5)  A local exchange carrier shall not disclose
        information relating to any customer's pattern of use,
        equipment and network information and any accumulated records
        about the customer to any other person unless required by
        law. This prohibition, however, shall not prevent the
        disclosure of such information pursuant to court order, nor
        shall it preclude the releasing of aggregate data which does
        not identify particular persons.
        (c)  Consistency with other requirements.--In providing video
     programming, a local exchange telecommunications company shall
     be subject to all the same laws, regulations and requirements of
     service as mandated upon other providers of video programming
     which are not local exchange telecommunications companies.
        (d)  Rules and regulations.--The commission may promulgate
     rules and regulations to administer and enforce this chapter.
        (e)  Report.--Not later than two years following the
     effective date of this chapter, the commission shall submit a
     report to the Governor and the General Assembly reviewing the
     implementation of the provisions of this chapter. The report
     shall include, but not be limited to, an evaluation of any
     alternative or streamlined form of regulation approved by the
     commission, the progress of local exchange telecommunications
     companies in implementing their network modernization
     implementation plans and the success of the deregulation of
     competitive services permitted by this chapter. In its
     recommendations, the commission may also propose any legislative
     or other changes, which it deems appropriate, to the Governor
     and the General Assembly.
        (f)  Method for fixing rates.--The commission shall not fix
     or prescribe the rates, tolls, charges, rate structures, rate
     base, rate of return or earnings of competitive services or
     otherwise regulate competitive services except as set forth in
     this chapter. The commission may require that the local exchange
     telecommunications company file and maintain tariffs or price
     lists for competitive telecommunications services.
        Section 2.  Title 66 is amended by adding a section to read:
      § 3316.  Protection of public utility employees.
        (a)  Persons not to be discharged.--No employer may
     discharge, threaten or otherwise discriminate or retaliate
     against an employee regarding the employee's compensation,
     terms, conditions, location or privileges of employment because
     the employee or a person acting on behalf of the employee made
     or was about to make a good faith report, verbally or in
     writing, to the employer, the commission, the Office of Consumer
     Advocate, the Office of Small Business Advocate or the Office of
     Attorney General on an instance of wrongdoing or waste.
        (b)  Discrimination prohibited.--No employer may discharge,
     threaten or otherwise discriminate or retaliate against an
     employee regarding the employee's compensation, terms,
     conditions, location or privileges of employment because the
     employee is requested by the commission, the Office of Consumer
     Advocate, the Office of Small Business Advocate or the Office of
     Attorney General to participate in an investigation, hearing or
     inquiry held by the commission or the Office of Attorney General
     or in a court action relating to the public utility.
        (c)  Civil action.--A person who alleges a violation of this
     section may bring a civil action in a court of competent
     jurisdiction for appropriate injunctive relief or damages, or
     both, within 180 days after the occurrence of the alleged
     violation.
        (d)  Necessary showing of evidence.--An employee alleging a
     violation of this section must show by a preponderance of the
     evidence that, prior to the alleged reprisal, the employee or a
     person acting on behalf of the employee had reported or was
     about to report in good faith, verbally or in writing, an
     instance of wrongdoing or waste to the employer, the commission,
     the Office of Consumer Advocate, the Office of Small Business
     Advocate or the Office of Attorney General.
        (e)  Defense.--It shall be a defense to an action under this
     section if the defendant proves by a preponderance of the
     evidence that the action by the employer occurred for separate
     and legitimate reasons, which are not merely pretextual.
        (f)  Enforcement.--A court, in rendering a judgment in an
     action brought under this section, shall order, as the court
     considers appropriate, reinstatement of the employee, the
     payment of back wages, full reinstatement of fringe benefits and
     seniority rights, actual damages or any combination of these
     remedies. A court shall also award the complainant all or a
     portion of the costs of litigation, including reasonable
     attorney fees and witness fees, if the court determines that the
     award is appropriate.
        (g)  Penalties.--A person who, under color of an employer's
     authority, violates this section shall be liable for a civil
     fine of not more than $500. A civil fine which is ordered under
     this section shall be paid to the State Treasurer for deposit
     into the General Fund.
        (h)  Notice.--An employer shall post notices and use other
     appropriate means to notify employees and keep them informed of
     protections and obligations under this section.
        (i)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Employee."  A person who performs a service for wages or
     other remuneration under a contract of hire, written or oral,
     express or implied, for a public utility.
        "Employer."  A person supervising one or more employees,
     including the employee in question, a superior or an agent of a
     public utility.
        "Good faith report."  A report which is made without malice
     or consideration of personal benefit and which is made with
     reasonable cause to believe in its truth.
        "Waste."  An employer's conduct or omissions which result in
     substantial abuse, misuse, destruction or loss of funds or
     resources belonging to or derived from a public utility.
        "Wrongdoing."  A violation which is not of a merely technical
     or minimal nature of a Federal or State statute or regulation or
     of a political subdivision ordinance or regulation or of a code
     of conduct or ethics designed to protect the interest of the
     public or the employer.
        Section 3.  The provisions of this act are severable. If any
     provision of this act or its application to any person or
     circumstance is held invalid, the invalidity shall not affect
     other provisions or applications of this act which can be given
     effect without the invalid provision or application.
        Section 4.  The addition of 66 Pa.C.S. Ch. 30 shall expire on
     December 31, 2003, unless sooner reenacted by the General
     Assembly.
        Section 5.  This act shall take effect immediately.

     APPROVED--The 8th day of July, A. D. 1993.

     MARK L. SINGEL
     ACTING GOVERNOR

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