UTILITIES CODE
CHAPTER 59. INFRASTRUCTURE PLAN
SUBCHAPTER A. GENERAL PROVISIONS
§ 59.001. POLICY. It is the policy of this state that an
incumbent local exchange company that does not elect to be
regulated under Chapter 58 should have incentives to deploy
infrastructure that will benefit the residents of this state while
maintaining reasonable local rates and universal service.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.002. DEFINITIONS. In this chapter:
(1) "Electing company" means an incumbent local
exchange company that elects for an infrastructure commitment and
corresponding regulation under this chapter.
(2) "Election date" means the date on which the
commission receives notice of election under Subchapter B.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. INFRASTRUCTURE INCENTIVES
§ 59.021. ELECTION. (a) An incumbent local exchange
company may elect to make an infrastructure commitment and to be
subject to corresponding regulation under this chapter if the
company:
(1) serves less than five percent of the access lines
in this state; and
(2) has not elected incentive regulation under Chapter
58.
(b) A company makes the election by notifying the commission
in writing of the company's election.
(c) A company electing under this chapter may renew the
election for successive two-year periods. An election that is
renewed under this subsection remains in effect until the earlier
of the date that:
(1) the election expires because it was not renewed;
(2) the commission allows the company to withdraw its
election under Section 59.022; or
(3) the legislature eliminates the incentive
regulation authorized by this chapter and Chapter 58.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 1212, § 46, eff. Sept. 1, 1999.
§ 59.022. WITHDRAWAL OF ELECTION. (a) The commission
may allow an electing company to withdraw the company's election
under this chapter:
(1) on application by the company; and
(2) only for good cause.
(b) In this section, "good cause" includes only matters
beyond the control of the company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.023. ELECTION UNDER CHAPTER 58. (a) This chapter
does not prohibit a company electing under this chapter from
electing incentive regulation under Chapter 58.
(b) If a company makes an election under Chapter 58, the
infrastructure commitment made under this chapter offsets the
infrastructure commitment required in connection with the Chapter
58 election.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.024. RATE CHANGES. (a) Except for the charges
permitted under Subchapter C, Chapter 55, Subchapter B, Chapter 56,
and Section 55.024, an electing company may not, before the end of
the company's election period under this chapter, increase a rate
previously established for that company under this title unless the
commission approves the proposed change as authorized under
Subsection (c) or (d).
(b) For purposes of Subsection (a), the company's
previously established rates are the rates charged by the company
on its election date without regard to a proceeding pending under:
(1) Section 15.001;
(2) Subchapter D, Chapter 53; or
(3) Subchapter G, Chapter 2001, Government Code.
(c) The commission, on motion of the electing company or on
its own motion, shall adjust prices for services to reflect changes
in Federal Communications Commission separations that affect
intrastate net income by at least 10 percent.
(d) Notwithstanding Subsection (a), the commission, on
request of the electing company, shall allow a rate group
reclassification that results from access line growth.
(e) Section 58.059 applies to a rate change under this
section.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 1212, § 47, eff. Sept. 1, 1999.
§ 59.025. SWITCHED ACCESS RATES. Notwithstanding any
other provision of this title, the commission may not, on the
commission's own motion, reduce an electing company's rates for
switched access services before the expiration of the election
period prescribed by Section 59.024, but may approve a reduction
proposed by the electing company.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 1212, § 48, eff. Sept. 1, 1999.
§ 59.026. COMPLAINT OR HEARING. (a) On or before the
end of the company's election period, an electing company is not,
under any circumstances, subject to:
(1) a complaint or hearing regarding the
reasonableness of the company's:
(A) rates;
(B) overall revenues;
(C) return on invested capital; or
(D) net income; or
(2) a complaint that a rate is excessive.
(b) Subsection (a) applies only to a company that is in
compliance with the company's infrastructure commitment under this
chapter.
(c) This section does not prohibit a complaint, hearing, or
determination on an electing company's implementation of a
competitive safeguard required by Chapter 60.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997. Amended
by Acts 1999, 76th Leg., ch. 1212, § 49, eff. Sept. 1, 1999.
§ 59.027. CONSUMER COMPLAINTS REGARDING
TARIFFS. (a) This chapter does not restrict:
(1) a consumer's right to complain to the commission
about the application of an ambiguous tariff; or
(2) the commission's right to determine:
(A) the proper application of that tariff; or
(B) the proper tariff rate if that tariff does
not apply.
(b) This section does not permit the commission to:
(1) lower a tariff rate except as specifically
provided by this title;
(2) change the commission's interpretation of a
tariff; or
(3) extend the application of a tariff to a new class
of customers.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.028. CONSUMER COMPLAINTS REGARDING SERVICES;
ENFORCEMENT OF STANDARDS. This chapter does not restrict:
(1) a consumer's right to complain to the commission
about quality of service; or
(2) the commission's right to enforce a quality of
service standard.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.029. INVESTMENT LIMITATION ON SERVICE
STANDARDS. (a) The commission may not raise a service standard
applicable to the provision of local exchange telephone service by
an electing company if the increased investment required to comply
with the raised standard in any year exceeds 10 percent of the
company's average annual intrastate additions in capital
investment for the most recent five-year period.
(b) In computing the average under Subsection (a), the
electing company shall exclude:
(1) extraordinary investments made during the
five-year period; and
(2) investments required by Section 59.052.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.030. NEW SERVICES. (a) An electing company may
introduce a new service 10 days after providing an informational
notice to the commission, to the office, and to any person who holds
a certificate of operating authority in the electing company's
certificated area or areas or who has an effective interconnection
agreement with the electing company.
(b) An electing company shall price each new service at or
above the service's long run incremental cost. The commission
shall allow a company serving fewer than one million access lines to
establish a service's long run incremental cost by adopting, at
that company's option, the cost studies of a larger company for that
service that has been accepted by the commission.
(c) An affected person, the office on behalf of residential
or small commercial customers, or the commission may file a
complaint at the commission challenging whether the pricing by an
electing company of a new service is in compliance with Subsection
(b).
(d) If a complaint is filed under Subsection (c), the
electing company has the burden of proving that the company set the
price for the new service in accordance with the applicable
provisions of this subchapter. If the complaint is finally
resolved in favor of the complainant, the electing company:
(1) shall, not later than the 10th day after the date
the complaint is finally resolved, amend the price of the service as
necessary to comply with the final resolution; or
(2) may, at the company's option, discontinue the
service.
Added by Acts 1999, 76th Leg., ch. 1212, § 50, eff. Sept. 1,
1999.
§ 59.031. PRICING AND PACKAGING
FLEXIBILITY. (a) Notwithstanding Section 59.027(b) or
Subchapter F, Chapter 60, an electing company may exercise pricing
flexibility in accordance with this section, including the
packaging of any regulated service such as basic local
telecommunications service with any other regulated or unregulated
service or any service of an affiliate. The electing company may
exercise pricing flexibility 10 days after providing an
informational notice to the commission, to the office, and to any
person who holds a certificate of operating authority in the
electing company's certificated area or areas or who has an
effective interconnection agreement with the electing company.
Pricing flexibility includes all pricing arrangements included in
the definition of "pricing flexibility" prescribed by Section
51.002(7) and includes packaging of regulated services with
unregulated services or any service of an affiliate.
(b) An electing company, at the company's option, shall
price each regulated service offered separately or as part of a
package under Subsection (a) at either the service's tariffed rate
or at a rate not lower than the service's long run incremental cost.
The commission shall allow a company serving fewer than one million
access lines to establish a service's long run incremental cost by
adopting, at that company's option, the cost studies of a larger
company for that service that have been accepted by the commission.
(c) An affected person, the office on behalf of residential
or small commercial customers, or the commission may file a
complaint alleging that an electing company has priced a regulated
service in a manner that does not meet the pricing standards of this
subchapter. The complaint must be filed before the 31st day after
the company implements the rate.
Added by Acts 1999, 76th Leg., ch. 1212, § 50, eff. Sept. 1,
1999.
§ 59.032. CUSTOMER PROMOTIONAL OFFERINGS. (a) An
electing company may offer a promotion for a regulated service for
not more than 90 days in any 12-month period.
(b) The electing company shall file with the commission a
promotional offering that consists of:
(1) waiver of installation charges or service order
charges, or both, for not more than 90 days in a 12-month period; or
(2) a temporary discount of not more than 25 percent
from the tariffed rate for not more than 60 days in a 12-month
period.
(c) An electing company is not required to obtain commission
approval to make a promotional offering described by Subsection
(b).
(d) An electing company may offer a promotion of any
regulated service as part of a package of services consisting of any
regulated service with any other regulated or unregulated service
or any service of an affiliate.
Added by Acts 1999, 76th Leg., ch. 1212, § 50, eff. Sept. 1,
1999.
SUBCHAPTER C. INFRASTRUCTURE COMMITMENT AND GOALS
§ 59.051. INFRASTRUCTURE COMMITMENT. (a) An electing
company shall commit to make in this state, during the six years
after the election date, the telecommunications infrastructure
investment prescribed by this chapter.
(b) The company shall make the commitment to the governor
and the commission in writing.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.052. INFRASTRUCTURE GOALS. (a) The commission
shall ensure that each electing company achieves the infrastructure
goals described by this section.
(b) Each new central office switch installed for an electing
company in this state after September 1, 1995, must be digital.
(c) An electing company shall make available to each
customer in the company's territory access to end-to-end digital
connectivity. In this subsection, "make available" has the meaning
assigned by 16 T.A.C. Section 23.69.
(d) In each electing company's territory, 50 percent of the
local exchange access lines must be served by a digital central
office switch.
(e) An electing company's public switched network backbone
interoffice facilities must employ broadband facilities that serve
at least 50 percent of the local exchange access lines and are
capable of 45 or more megabits a second. The company may employ
facilities at a lower bandwidth if technology permits the delivery
of video signal at the lower bandwidth at a quality level comparable
to a television broadcast signal. The requirements of this
subsection do not apply to local loop facilities.
(f) An electing company shall install Common Channel
Signaling 7 capability in each access tandem office.
(g) The infrastructure goals specified by Subsections
(c)-(f) must be achieved not later than January 1, 2000.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.053. WAIVER OF INFRASTRUCTURE
REQUIREMENTS. (a) For an electing company that serves fewer than
one million lines, the commission may waive a requirement
prescribed by Section 59.052 if the company demonstrates that the
investment is not viable economically.
(b) Before granting a waiver under Subsection (a), the
commission must consider the public benefits that would result from
compliance with the requirement.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.054. PROGRESS REPORT. (a) On each anniversary of
the company's election date, an electing company shall file with
the commission a report on the company's progress on its
infrastructure commitment.
(b) The report must include a statement of:
(1) the institutions requesting service under
Subchapter D;
(2) the institutions served under Subchapter D;
(3) the investments and expenses for the previous
period and the total investments and expenses for all periods; and
(4) other information the commission considers
necessary.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.055. IMPLEMENTATION COSTS; INCREASE IN RATES AND
UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
of implementing Section 59.052 in determining whether an electing
company is entitled to:
(1) a rate increase under this chapter; or
(2) increased universal service funds under
Subchapter B, Chapter 56.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
SUBCHAPTER D. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
§ 59.071. DEFINITIONS. In this subchapter:
(1) "Educational institution" has the meaning
assigned by Section 57.021.
(2) "Library" has the meaning assigned by Section
57.042.
(3) "Private network services" means
telecommunications services provided to an entity described by
Section 59.072(a), including broadband services, customized
services, and packaged network services.
(4) "Telemedicine center" means a facility that is
equipped to transmit, by video or data service, medical information
for the diagnosis or treatment of illness or disease and that is:
(A) owned or operated by a public or
not-for-profit hospital; or
(B) owned by a state-licensed health care
practitioner and operated on a nonprofit basis.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.072. PRIVATE NETWORK SERVICES FOR CERTAIN
ENTITIES. (a) On customer request, an electing company shall
provide private network services to:
(1) an educational institution;
(2) a library;
(3) a telemedicine center; or
(4) a legally constituted consortium or group of
entities listed in this subsection.
(b) Except as provided by Section 59.081, the electing
company shall provide the private network services for the private
and sole use of the receiving entity. However, the company may
provide the services with a facility that is used to provide another
service to another customer.
(c) The customers listed in Subsection (a) are a special
class of customers for purposes of the private network for distance
learning, telemedicine, and information-sharing purposes.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.073. INVESTMENT PRIORITIES. An electing company
shall give investment priority to serving:
(1) rural areas;
(2) areas designated as critically underserved
medically or educationally; and
(3) educational institutions with high percentages of
economically disadvantaged students.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.074. CONTRACTS FOR PRIVATE NETWORK
SERVICES. (a) An electing company shall provide a private
network service under a customer-specific contract.
(b) An electing company shall offer private network service
contracts under this subchapter at 110 percent of the long run
incremental cost of providing the private network service,
including installation costs.
(c) Each contract shall be filed with the commission.
Commission approval of a contract is not required.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.075. PREFERRED RATE TREATMENT WARRANTED. The
classes of customers described by Section 59.072(a) warrant
preferred rate treatment. However, a rate charged for a service
must cover the service's long run incremental cost.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.076. ELECTION OF RATE TREATMENT. An educational
institution or a library may elect the rate treatment provided by
this subchapter or the discount provided by Subchapter B, Chapter
57.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.077. PRIVATE NETWORK SERVICES RATES AND
TARIFFS. (a) Notwithstanding the pricing flexibility authorized
by this subtitle, an electing company's rates for private network
services may not be increased on or before the sixth anniversary of
the company's election date.
(b) An electing company may not assess an entity described
by Section 59.072(a) a tariffed special construction or
installation charge unless the company and the entity agree on the
assessment.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.078. PRIVATE LINE OR SPECIAL ACCESS RATES. (a) On
request by an educational institution or a library, an electing
company shall provide 1.544 megabits a second private line or
special access service at 110 percent of the service's long run
incremental cost, including installation costs.
(b) The rate provided by Subsection (a) is in lieu of the
discount provided by Subchapter B, Chapter 57.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.079. COMPLAINTS LIMITED. Notwithstanding any
other provision of this title, an electing company is subject to a
complaint under Subchapter C or this subchapter only by an entity
described by Section 59.072(a).
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.080. INTERCONNECTION OF NETWORK SERVICES. The
private network services provided under this subchapter may be
interconnected with other similar networks for distance learning,
telemedicine, and information-sharing purposes.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.081. SHARING OR RESALE OF NETWORK SERVICES. (a) A
private network service may be used and shared among the entities
described by Section 59.072(a) but may not be otherwise shared or
resold to other customers.
(b) A service provided under this subchapter may not be
required to be resold to other customers at a rate provided by this
subchapter.
(c) This section does not prohibit an otherwise permitted
resale of another service that an electing company may offer
through the use of the same facilities used to provide a private
network service offered under this subchapter.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
§ 59.082. IMPLEMENTATION COSTS; INCREASE IN RATES AND
UNIVERSAL SERVICE FUNDS. The commission may not consider the cost
of implementing this subchapter in determining whether an electing
company is entitled to:
(1) a rate increase under this chapter; or
(2) increased universal service funds under
Subchapter B, Chapter 56.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
