HD9 - Regulatory Procedures for Small Telephone Companies

  • Published: 1986
  • Author: State Corporation Commission
  • Enabling Authority: House Joint Resolution 280 (Regular Session, 1985)

Executive Summary:
House Joint Resolution No. 280, adopted during the 1985 General Assembly Session, requested the State Corporation Commission to investigate and implement regulatory procedures that would reduce the cost of regulation and allow for timely changes in rates for small investor-owned telephone companies. The Commission appointed a task force to study the issue. After analyzing the statutes pertaining to public utilities, it determined that enabling legislation is required before the Commission may streamline regulation for small investor-owned telephone companies. (Draft legislation is attached as Appendix.)

The Commission defined a small investor-owned utility as one whose annual revenues do not exceed $3,000,000 and one that is not a subsidiary of a telecommunications company. The draft legislation will allow a small investor-owned telephone company's rate increases to become effective 30 days after notice has been given to its customers unless the Commission receives complaints from 20 or more customers, or a substantive issue is identified which, in the Commission's judgment, cannot be resolved without a hearing, or the Commission determines to investigate a rate change on its own motion.