093_SB0885enr

 
SB885 Enrolled                       LRB093 07820 JLS 08009 b

 1        AN ACT concerning telecommunications.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Public Utilities Act is amended by adding
 5    Sections 13-408 and 13-409 as follows:

 6        (220 ILCS 5/13-408 new)
 7        Sec.  13-408.  Unbundled  network  element  rates.   This
 8    Section  applies  to  and  covers  certain  unbundled network
 9    element rates  that  shall  be  charged  by  incumbent  local
10    exchange  carriers  that  are  subject to regulation under an
11    alternative regulation plan under Section  13-506.1  of  this
12    Act. The General Assembly finds and determines that it should
13    provide   direction   to  the  Illinois  Commerce  Commission
14    regarding the establishment of the  monthly  recurring  rates
15    that  such  incumbent  local  exchange  carriers shall charge
16    other  telecommunications  carriers  for   unbundled   loops,
17    whether provided on a standalone basis or in combination with
18    other unbundled network elements, in order to ensure (i) that
19    such  rates  are  consistent  with  the  requirements  of the
20    federal  Telecommunications  Act  of  1996,  the  regulations
21    promulgated thereunder, and subsection (g) of Section  13-801
22    of  this  Act,  and  (ii)  that such incumbent local exchange
23    carriers are able to recover the  efficient,  forward-looking
24    costs  of  creating,  operating,  and maintaining the network
25    outside  plant  infrastructure  capacity  and  switching  and
26    transmission  network  capacity  necessary  to  permit   such
27    incumbent  local  exchange  carriers  to meet in a timely and
28    adequate fashion the obligations imposed by Section 8-101  of
29    this Act.
30        In  order  to  ensure recurring unbundled network element
31    rates  for  loops  that  accomplish  these  objectives,   the
 
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 1    Illinois  Commerce  Commission  shall set the recurring rates
 2    affected  incumbent  local  exchange  carriers  receive   for
 3    unbundled loops, whether provided on a standalone basis or in
 4    combination   with   other  unbundled  network  elements,  in
 5    accordance with the requirements delineated below.
 6        (a)  Fill factors. The General Assembly directs that  the
 7    Illinois  Commerce  Commission shall employ fill factors (the
 8    proportion of a facility or element  that  will  be  "filled"
 9    with network usage) that represent a reasonable projection of
10    actual total usage of the elements in question, in accordance
11    with  applicable federal law. The General Assembly finds that
12    existing actual total usage of  the  elements  that  affected
13    incumbent  local exchange carriers are required to provide to
14    competing  local  exchange  carriers,  as  reflected  in  the
15    current actual fill factors for the elements in question,  is
16    the  most  reasonable  projection  of actual total usage. The
17    Commission,  therefore,  shall  employ  current  actual  fill
18    factors that reflect such existing actual total  usage  on  a
19    going forward basis in establishing cost based rates for such
20    unbundled network elements. In addition, the Commission shall
21    adjust  all  existing Commission-approved rates for unbundled
22    loops,  whether  provided  on  a  standalone  basis   or   in
23    combination  with  other unbundled network elements, that are
24    currently in effect to make such rates consistent  with  this
25    provision.
26        (b)  Depreciation  rates.  The  General  Assembly further
27    directs that the Commission shall employ  depreciation  rates
28    that  are  forward-looking  and  based  on  economic lives as
29    reflected in the incumbent local exchange carrier's books  of
30    accounts  as  reported  to the investment community under the
31    regulations of the Securities and Exchange Commission. Use of
32    an accelerated depreciation mechanism shall  be  required  in
33    all  cases.  Use  of  a depreciation rate based on historical
34    rate-of-return regulation derived lives of the  elements  and
 
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 1    facilities  in question shall be prohibited. In addition, the
 2    Commission  shall  adjust  all  existing  Commission-approved
 3    rates for unbundled loops, whether provided on  a  standalone
 4    basis   or   in  combination  with  other  unbundled  network
 5    elements, that are currently in effect  to  make  such  rates
 6    consistent with this provision.
 7        (c)  The rate adjustments required by subsections (a) and
 8    (b)  of  this Section must be completed within 30 days of the
 9    effective date of this Section. In the case of any  incumbent
10    local  exchange  carrier  that  is  subject to an alternative
11    regulation plan under  Section  13-506.1  at  the  time  this
12    Section  becomes effective, in making these rate adjustments,
13    the  Commission  shall  determine   the   specific   required
14    adjustments  with  respect  to  fill factors and depreciation
15    lives  by  employing  the  models  and  methodology  used  to
16    generate the proposed rates submitted by  such  an  incumbent
17    local  exchange carrier in ICC Docket 02-0864. The Commission
18    proceedings initiated to establish such adjusted rates  shall
19    be  deemed interconnection agreement arbitration and approval
20    proceedings under Sections 252(b)  and  (e)  of  the  federal
21    Telecommunications  Act  of 1996. Immediately upon conclusion
22    of such proceedings, all existing interconnection  agreements
23    in  this  State of affected incumbent local exchange carriers
24    shall  be  deemed  amended  to  contain  the  adjusted  rates
25    established in such  proceedings.  In  addition,  immediately
26    upon  conclusion  of such proceedings, all wholesale tariffs,
27    currently effective in  this  State,  of  affected  incumbent
28    local  exchange  carriers  shall be deemed amended to contain
29    the  adjusted  rates  established  in  such  proceedings.  In
30    accordance  with  these  provisions,  immediately  upon   the
31    establishment by the Commission of the adjusted rates covered
32    hereby,  each affected incumbent local exchange carrier shall
33    charge such adjusted rates, to the extent applicable, for all
34    of the network element products that are  provided  to  other
 
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 1    carriers,  whether  those  products  are  provided  under  an
 2    interconnection  agreement or a tariff. The proceeding in ICC
 3    Docket 02-0864 is hereby abated as of the effective  date  of
 4    this amendatory Act of the 93rd General Assembly.
 5        (d)  Notwithstanding  anything  to the contrary contained
 6    in Section 13-505.1 of this Act,  unbundled  network  element
 7    rates  established  in accordance with the provisions of this
 8    Section shall not require any increase in  any  retail  rates
 9    for any telecommunications service.

10        (220 ILCS 5/13-409 new)
11        Sec.   13-409.  Application   of  Sec.  13-408  unbundled
12    network element rates.
13        (a)  During the first 2  years  following  the  effective
14    date  of  Section  13-408,  for  the first 35,000 voice grade
15    equivalent access lines used  by  an  individual  carrier  to
16    provide  local  exchange  service  to  end users, the monthly
17    recurring rate for the unbundled network elements  associated
18    with  those lines and leased from an incumbent local exchange
19    carrier to which Section 13-408 applies shall  be  frozen  at
20    the  levels in effect immediately prior to the effective date
21    of Section 13-408.
22        (b)  Thereafter, the  monthly  recurring  rates  for  all
23    unbundled  network  elements  provided by any incumbent local
24    exchange carrier to which Section 13-408 applies shall be the
25    rates established by the Commission in  accordance  with  the
26    provisions of Section 13-408.
27        (c)  If,  as  of the effective date of Section 13-408 and
28    this Section, an individual telecommunications  carrier  uses
29    unbundled  network  elements leased from a specific incumbent
30    local exchange carrier to provide local exchange service over
31    more than 35,000 voice grade equivalent  access  lines,  that
32    carrier  must  designate  the  35,000  voice grade equivalent
33    access lines to which the provisions of subsections  (a)  and
 
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 1    (b) of this Section apply. If subsequent to such designation,
 2    the  individual  carrier  loses  the  customer  served  by  a
 3    designated  access  line,  and therefore no longer leases the
 4    unbundled network elements associated  with  that  line,  the
 5    individual  carrier may not designate a different access line
 6    to substitute  for  the  lost  line.  All  unbundled  network
 7    elements  leased  to  provide service over undesignated voice
 8    grade equivalent access lines shall be subject  to  the  full
 9    monthly  recurring  rates  established  by  the Commission in
10    accordance with the provisions of Section 13-408.
11        (d)  If, as of the effective date  of  this  Section,  an
12    individual  carrier  uses  unbundled  network elements leased
13    from a specific  local  exchange  carrier  to  provide  local
14    exchange   service   over   fewer  than  35,000  voice  grade
15    equivalent access lines,  that  carrier  must  designate  the
16    access  lines  to which the provisions of subsections (a) and
17    (b) of this Section apply. If subsequent to such designation,
18    the  individual  carrier  loses  the  customer  served  by  a
19    designated access line, and therefore no  longer  leases  the
20    unbundled  network  elements  associated  with that line, the
21    individual carrier may not designate a different access  line
22    to   substitute   for   the   lost  line.  Subject  to  these
23    limitations,  subsequent  to  the  effective  date  of   this
24    Section,  such a carrier may designate additional voice grade
25    equivalent access lines to which it wishes the provisions  of
26    subsections  (a)  and (b) of this Section to apply, until the
27    total  designated  lines  equal  35,000.  If  a  subsequently
28    designated line is lost, the carrier will not be permitted to
29    designate a different line to substitute for that lost  line.
30    All unbundled network elements leased to provide service over
31    undesignated  voice  grade  equivalent  access lines shall be
32    subject to the full monthly recurring  rates  established  by
33    the  Commission  in accordance with the provisions of Section
34    13-408.
 
SB885 Enrolled             -6-       LRB093 07820 JLS 08009 b
 1        (e)  For purposes of this Section, in determining when an
 2    individual  telecommunications  carrier  has  reached  35,000
 3    voice grade equivalent access lines, a specific carrier,  any
 4    affiliate  of that carrier, any carrier serving as a sales or
 5    marketing agent for that carrier, and any carrier  with  whom
 6    that carrier has a cooperative sales or marketing arrangement
 7    all shall be treated as a single individual carrier.
 8        (f)  Notwithstanding   any   other   provisions  of  this
 9    Section, access lines provided to payphone service  providers
10    are  not  eligible for the freeze or discount provided for in
11    subsections (a) and (b) of  this  Section.  Accordingly,  the
12    provisions  of  subsections  (a)  and  (b) shall not apply to
13    unbundled network elements  that  are  leased  by  individual
14    telecommunications carriers to provide local exchange service
15    to payphone service providers.

16        Section  99.  Effective  date. This Act takes effect upon
17    becoming law.