BILL: House Bill 1133

SUBJECT: Allows Public Service Commission to implement a $100 annual fee on all utilities operating in North Dakota.

DESCRIPTION: The Public Service Commission is seeking permission to charge each utility in the State a $100 fee that will be due prior to July 1st each year. The money raised by the measure will be deposited in the State's general fund. All public utilities regulated by the Commission, including telephone companies, resellers, telephone cooperatives, investor-owned and cooperative electric providers, gas utilities and pipeline utilities, will be obligated to pay the annual fee. The Commission estimates that approximately 650 companies are affected by the proposal. The Commission acknowledged during a House Industry, Business and Labor committee hearing that self-funding of agencies was a policy decision for the Legislature to make and that the agency would be pleased to participate in interim hearings to study the matter.

IMPACT ON INDEPENDENT TELEPHONE COMPANIES: Members of the Association have two primary concerns. First, there is no relationship between the money the measure seeks to raise and regulation by the Commission. The money goes directly to the State's general fund. Second, we believe that $100 is just the starting point and that there will never be any cap on the annual fee. The Commission failed two years ago on their attempt to impose a $250 annual fee on long distance companies.

ASSOCIATION RECOMMENDATION: Oppose HB 1133

January, 2003