BILL: SB 2410

SUBJECT: Increased Public Service Commission Jurisdiction over Independent Telephone Companies

DESCRIPTION: A bill that would make telephone cooperatives and independent telephone companies with more than 2,500 access lines subject to the jurisdiction of the Public Service Commission. If passed, the telephone cooperative exemption from rate regulation, tariff filings and PSC rate cases would be abolished. The bill also applies to commercial telephone companies with more than 2,500 lines. The legislation allows the PSC to conduct hearings to "originate, establish, modify, adjust, promulgate, and enforce tariffs, rates, joint rates, and charges of all public utilities." The Commission will also be able to set aside any rates or service offerings it believes are unjust, unreasonable, insufficient or otherwise in violation of the law. The Commission will then be able to set the rate. The language of SB 2410 will also be extended to rural electric cooperatives with more than 2,500 customers.

IMPACT OF INDEPENDENT TELEPHONE COMPANIES: The Association believes that SB 2410 is unwarranted in light of the service North Dakota telephone cooperatives and independent telephone companies have provided the residents of this State. Members of the Association have invested in excess of $700 million in rural infrastructure, including $115 million in the last three years providing a state-of-the-art telecommunications network, while charging the most affordable prices possible. The affect of SB 2410 is to return telecommunications regulation in North Dakota to a pre-divestiture, pre-Federal Telecommunications Act era. It is a tremendous step backwards at a time when all telecommunications providers, including telephone cooperatives and small commercial companies are facing unprecedented competition from Internet, wireless and satellite transmission providers.

ASSOCIATION RECOMMENDATION: Oppose SB 2410.