PROPOSED RULEMAKING
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA. CODE CH. 64]
[L-00060179]
Provision of Bundled Service Package Plans at a Single Monthly Rate by Local Exchange Carriers
[37 Pa.B. 1032]
[Saturday, March 3, 2007]The Pennsylvania Public Utility Commission, on June 22, 2006, adopted a proposed rulemaking order which permits a limited exception of the application of Chapter64 billing requirements under certain conditions and authorizes local exchange carriers to offer single-priced bundled service packages.
Executive Summary
By Order entered July 3, 2006, at Docket No. L-00060179, the Commission adopted a Proposed Rulemaking Order to amend Chapter 64 of Commission regulations, 52 Pa. Code §§ 64.1--64.213. The purpose of the proposed rulemaking is to create an exception to the current obligation for separate billing by telecommunications carriers offering bundled service package plans, and to eliminate the necessity of obtaining a waiver of Chapter 64 separate billing regulations in 52 Pa. Code §§ 64.14(a)(4) and (5), 64.17, 64.18, 64.21(a), and 64.63(1) and (2), where certain consumer safeguards are in place.
Under the current language of Chapter 64, the Commission is required to review and approve or deny a request for waiver from Chapter 64's separate billing requirements. The proposed amendment to Chapter 64 eliminates the need for administrative review and approval of a waiver from separate billing requirements, provided certain consumer safe guards are met, while preserving the Commission's oversight authority. Specifically, the need for administrative hours devoted to review of applications for waiver from Chapter 64 separate billing requirements will be eliminated.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 15, 2007, the Commission submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House and Senate Committees. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Commission, the General Assembly and the Governor of comments, recommendations or objections raised.
Public Meeting held
June 22, 2006Commissioners Present: Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson; Bill Shane; Kim Pizzingrilli; Terrance J. Fitzpatrick
Provision of Bundled Service Package Plans at a Single Monthly Rate by Local Exchange Carriers;
Doc. No. L-00060179
Proposed Rulemaking Order By the Commission:
By our order in Petition of Trinsic Communications, Inc., Docket No. P-00052169, (Order entered Feb. 1, 2006), the Commission ordered Staff's review of Chapter 64 regulations to examine whether an amendment to those regulations may be advisable to adapt to the current trend in the telecommunications industry of offering multiple services together in single-priced billing packages. As we then noted:
. . . the Commission has consistently granted conditional waivers of various sections of Chapter 641to allow telephone companies to offer bundled services packages.2 The purpose of these waivers has been to permit companies to offer bundled services packages while still preserving the customer protections currently in place to enable consumers to maintain basic telephone service as long as they meet their payment obligations regarding basic service. Additionally, in the past year, the General Assembly passed a law to allow telephone companies to ''offer and bill to customers on one bill bundled packages of services.'' 66 Pa.C.S. § 3016(e)(2).As technology continues to advance and the desires of consumers change, we need to ensure that our regulatory framework is appropriately structured to recognize these developments. Our regulations should also provide the flexibility needed to better serve consumers while still ensuring that Pennsylvania maintains its high telephone service penetration rate. To that end, it is important for this Commission to reevaluate its current Chapter 64 regulations in light of statutory changes as well as new desires in consumer preferences.Id at pp. 6-7.
Based upon Staff's evaluation of Chapter 64 and subsequent recommendations, we formally commence this rulemaking to propose certain amendments to Chapter 64 and seek comment from all interested parties on these proposed amendments, hereto set forth in Annex A. At the same time, to eliminate the need to act on repetitive waiver petitions, we will grant a temporary waiver of the applicable provisions of Chapter 64, effective until the final adoption of the regulations, provided that the necessary consumer safeguards are satisfied.
In order to ensure that the consumer protections under Chapter 64 are retained, the Commission has set forth certain conditions that local exchange carriers (LECs) offering bundled service packages need to satisfy before a waiver of the applicable Chapter 64 requirements is granted. See the Commission's Secretarial Letter to all Competitive Local Exchange Carriers regarding compliance with § 64.21, issued September 23, 2003, at Docket No. M-00031747; and Petition of North Pittsburgh Telephone for Waiver of Certain Billing and Collection Rule Requirements, Docket No. P-00011899 (Order entered Oct. 15, 2001).
The September 23, 2003, Secretarial Letter governs billing, disclosure statements, non-payment procedures, and notice of waiver requests for competitive local exchange carriers (CLECs) that offer single-price packages and request a waiver of Chapter 64 requirements. The Secretarial Letter states that the Commission has granted petitions for such waivers previously but that these waivers have been contingent on the satisfaction of certain conditions.3 The Secretarial Letter details the conditions, as follows:
First, the company must agree that failure to pay the package charge will not result in immediate termination of basic service. Instead, the account will be converted to a basic service account which could be subject to future suspension or termination for non-payment in accordance with Commission regulations. Second, the company must provide a disclosure statement to all customers currently subscribed to a bundled service package and to all consumers being offered the opportunity to subscribe to a bundled service package. This disclosure statement, the content of which is subject to Commission review for consistency with plain language guidelines, notifies the customer of the billing practices that will be implemented in the event of the customer's failure to pay the bundled service package charge in full, informs the customer that they will not lose basic service for failure to pay the bundled service package charge, and identifies the charge that must be paid to maintain basic service.4Secretarial Letter, issued September 23, 2003, at Docket No. M-00031747, p. 2, available through the search func- tion found at www.puc.state.pa.us.
We note that while the Public Utility Code expressly grants local exchange telecommunications companies5 (incumbent local exchange carriers or ILECs) permission to offer single-rate package plans, 66 Pa.C.S. § 3016(e)(2), nothing in the Code precludes the Commission from authorizing competitive local exchange carriers (CLECS) to provide single-rate package plans. In fact, we believe that authorizing CLECS to provide such service packages advances two important policy goals: (1) to encourage diversity in services and products; and (2) to promote the provision of competitive services by a variety of service providers without jeopardizing universal service. See, 66 Pa.C.S. § 3011(5)(8).
Therefore, we are proposing to amend our regulations to permit a limited exception to the application of the Chapter 64 billing requirements, where the company meets certain conditions regarding protection of basic service and provision of a disclosure statement. In particular, the proposed amendment to Chapter 64 in Annex A, adds § 64.24 to Chapter 64 which authorizes LECs to offer single-priced bundled service packages and incorporates the same conditions previously established by Commission Order, including: (1) an agreement by the local exchange carrier that basic service will not be immediately suspended for failure of a customer to pay in full the monthly charge for the bundled service package; and (2) the provision of a bundled service package disclosure statement to customers who are offered, or who already subscribe to a bundled service package. This amendment creates an exception to the application of Chapter 64, which remains in effect where the circumstances addressed in this order are not at issue.
At the same time, to eliminate the need to act on repetitive waiver petitions, we will grant, by this order, a temporary waiver of Chapter 64 billing requirements to the extent necessary to permit LECs to offer bundled service packages without petitioning the Commission, so long as the conditions previously set forth in the September 23, 2003, Secretarial Letter are met. Compliance with these conditions obviates the requirement that CLECs petition the Commission for a waiver of the applicable Chapter 64 regulations, including 52 Pa. Code §§ 64.14(a)(4) and (5), 64.17, 64.18, 64.21(a) and 64.63(1) and (2). We note that the temporary waiver of these regulations operates only to the extent required to facilitate the offering of bundled service packages. See, e.g., Petition of North Pittsburgh Telephone for Waiver of Certain Billing and Collection Rule Requirements, P-00011899 (Order entered Oct. 15, 2001), p.2, fn. 2-4. The temporary waiver granted by this order will remain in effect pending final resolution of this rulemaking.
All interested parties are invited to submit comments on the proposal set forth in Annex A. We propose to amend Chapter 64 of our regulations by adding 52 Pa. Code § 64.24, which will authorize all LECs to offer bundled service packages at a single monthly rate, so long as consumer protections are observed. Accordingly, pursuant to sections 501, 1501, and 1504 of the Public Utility Code, 66 Pa.C.S. § 501, § 1501 and § 1504, and the Commonwealth Documents Law, 45 P. S. §§ 501 et seq., and regulations promulgated thereunder at 1 Pa. Code §§ 7.1--7.4, we propose to amend the regulations in 52 Pa. Code Chapter 64 as previously noted and as set forth in Annex A; Therefore,
It Is Ordered That:
1. The proposed amendments to 52 Pa. Code Chapter 64, as set forth in Annex A, be issued for comment.
2. The Secretary shall submit a copy of this order and Annex A to the Office of Attorney General for preliminary review as to form and legality.
3. The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.
4. The Secretary shall submit this order and Annex A for review and comments by the Independent Regulatory Review Commission and the designated Legislative Standing Committees of both Houses of the General Assembly.
5. The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
6. A copy of this order and Annex A shall be posted on the Commission's Web site and served on all jurisdictional local exchange carriers, the Pennsylvania Telephone Association, the Broadband Cable Association of Pennsylvania (BCAP), the Public Utility Law Project, Competitive Telecommunications Association (COMPTEL),the Office of Trial Staff, Office of Consumer Advocate and Office of Small Business Advocate.
7. Interested persons may submit an original and 15 copies of written comments to the Office of the Secretary, Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265 within 30 days from the date this order is published in the Pennsylvania Bulletin. A paper copy and an electronic copy of filed comments shall be provided to the Commission contact persons listed in ordering paragraph 8.
8. The contact persons for this matter are Elizabeth Lion Januzzi, Assistant Counsel, Law Bureau, (717) 772-0696, elionjanuz@state.pa.us; and Holly Frymoyer, Telecommunications Policy and Evaluation Unit Supervisor, Bureau of Consumer Services, (717) 783-1628, mfrymoyer@state.pa.us. Alternate formats of this document are available to persons with disabilities and may be obtained by contacting Sherri DelBiondo, Regulatory Coordinator, Law Bureau, (717) 772-4597, sdelbiondo@ state.pa.us.
9. Pending the final resolution of this rulemaking, the Chapter 64 separate billing requirement, including 52 Pa. Code §§ 64.14(a)(4) and (5), 64.17, 64.18, 64.21(a), and 64.63(1) and (2), are temporarily waived to the extent necessary to permit all LECs to offer bundled services packages, provided that the LEC agrees to the conditions set forth in the Secretarial Letter issued September 23, 2003, at Docket No. M-00031747.
JAMES J. MCNULTY,
SecretaryFiscal Note: 57-251. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart C. FIXED SERVICE UTILITIES
CHAPTER 64. STANDARDS AND BILLING PRACTICES FOR RESIDENTIAL TELEPHONE SERVICE
Subchapter B. PAYMENT AND BILLING STANDARDS (Editor's Note: The following section is new. It has been printed in regular type to enhance readability.)
§ 64.24. Provision of bundled service packages at a single monthly rate.
An LEC may offer bundled packages of services including nontariffed, competitive, noncompetitive, basic service or services of an affiliate, combined in a single package plan at a single monthly rate, under the following conditions:
(1) The LEC may not suspend or terminate a customer's basic service when the customer fails to make payment on the bundled service package, in accordance with § 64.21(b) (relating to separate billing for basic service).
(2) When a customer fails to make payment on a bundled service package, the LEC shall convert the customer's service to a basic service plan, subject to future suspension or termination for nonpayment in accordance with Commission regulations in §§ 64.61--64.63, 64.71--64.74 and 64.101--64.111 for suspension, and §§ 64.121--64.123 for termination.
(3) The LEC provides a disclosure statement to customers subscribing to or being offered a bundled service package. The bundled service package disclosure statement must contain the following:
(i) A statement that a customer's basic service may not be suspended or terminated when the customer fails to make payment in full on the monthly charge for the bundled service package.
(ii) A statement that, in the event of nonpayment or partial payment on a bundled service package, a customer shall receive a notice of suspension for the bundled service package advising the customer that the bundled service package will be converted to a basic service plan at the current basic service rate in the LEC's tariff, stated in dollar amount.
(4) The LEC may offer payment agreements for past-due amounts on bundled service packages.
(5) Notices issued by the LEC pertaining to the bundled service package, including the disclosure statement, a suspension or termination notice, or other communication, will be subject to Commission review and approval for compliance with Commission regulations and consistency with plain language guidelines in § 69.251 (relating to plain language--statement of policy).
[Pa.B. Doc. No. 07-349. Filed for public inspection March 2, 2007, 9:00 a.m.] _______
1 Chapter 64 pertains to ''Standards and Billing Practices for Residential Services'' and became effective on January 1, 1985. 52 Pa. Code §§ 64.1--64.213
2 See Petition of Bell Atlantic--Pa., Inc. for Expedited Modification of Consent Order and Waiver of Certain Chapter 64 Requirements, Docket No. C-00881727 (Order entered June 12, 1997); Petition of North Pittsburgh Telephone for Waiver of Certain Billing and Collection Rule Requirements, Docket No. P-00011899 (Order entered October 15, 2001); Petition of Commonwealth Telephone Company for Waiver of Certain Billing and Collection Requirements, Docket No. P-0021982 (Order entered December 20, 2002); Secretarial Letter to All Competitive Local Exchange Carriers Re: Compliance with 52 Pa. Code § 64.21 Separate Billing for Basic Service, Docket No. M-00031747 (issued September 23, 2003); In re: Petition of Marianna and Scenery Hill Telephone Company for Waiver of Certain Billing and Collection Requirements Set Forth at 52 Pa. Code Chapter 64 to Permit Provision of Singly Priced Service Packages to Customers, including Residential Customers, Docket No. P-00042124 (Order entered November 22, 2004); Petition of Comcast Phone of Pennsylvania LLC for Waiver of Certain Billing and Collection Rule Requirements Set Forth at 52 Pa. Code Chapter 64 to Permit Provision of Singly Priced Service Packages to Customers, including Residential Customers, Docket No. P-00042119 (Order entered August 12, 2005); and, Petition of ACN Communication Services, Inc. for Waiver of Certain Billing and Collection Rule Requirements Set Forth at 52 Pa. Code chapter 64 to Permit Provision of Singly-Priced Service Packages to Customers, Docket No. P-00052173 (Order entered October 28, 2005).
3 Citing Petition of Bell Atlantic-Pa., Inc. for Expedited Modification of Consent Order and Waiver of Certain Chapter 64 Requirements, C-00881727 (Order entered June 12, 1997); Petition of North Pittsburgh Telephone for Waiver of Certain Billing and Collection Rule Requirements, P-00011899 (Order entered Oct. 15, 2001); and Petition of Commonwealth Telephone Co. for Waiver of Certain Billing and Collection Requirements, P-00021982 (Order entered Dec. 20, 2001).
4 These conditions are consistent with the Federal Communications Commission's (''FCC'') Truth-in-Billing standard that carriers identify on customer bills the charges for which failure to pay will not result in disconnection of basic service. See CC Docket No. 98-170; FCC 00-111, released July 13, 2000.
5 A local exchange telecommunications company is defined at 66 Pa.C.S. § 3012 as ''an incumbent carrier authorized by the commission to provide local exchange telecommunications services.''
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