ROBERT M. TOMLINSON aTH D l s r R l o

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HARRISBURm, PA 171- (717) 767-BO7Z

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T R A N S W R T M I O N VCTLRANS AFFAIRS & EMEROMCT PREPAREDNESS

L M I S L A T I V E BUU6CI .I F INANCE EOMMTrCCE, CHAIRMAN P R I A A BOARD

PKNNSILVANIA FlRCFIaCPTeRS AND LMLROTNCY S E ~ C W L u a l g L A m v E CAUCUS

A W l a O R Y BOARD, DELAWARE V A U I W V-ERANS HOME

October 3 1,2006

Alvin Bush Chaixman Independent Regulatory Review Commission 1 4 ~ Floor, Harristown 2 333Market S M Harrisburg, PA 1 7 101

Dear Chairmm Bush rand members of the Commission:

As Chimen of the Senate Conmer Protection and Professional Licensure Committee, and the House Consumer Affairs Committee, we wanted to offer cumment of the Wlic Utility Commission's W-form regulation on Local Exchange Carrier Filing and Reporting Requirements (57-247).

This regulation has had a great deal of public comment at the Public Utility Commission, as the Commission attempted to implement the dwegulatory provisions of A G ~ 183 of 2004.

The regulation does eliminate numerous incumbent local exchange canier (ILEC) reports that are unnecessary in a competitive telecmmuxzications environment.

Unfortunately, this regulation fails to completely reflect the Legislature" intention to eliminate all but nine enumerated reports by preserving two additional reports (Lifeline T r a c k and Service Qutage). In addition it sets precedent for additional reports not required by Act 1 83 of 2004.

The Legislature provided the Commission with the flexibility to require reports, in addition to those specifically preserved, by establishing a process in Section 3 0 1 S(f) of the act which dows for the submission of additional reports. It requires the Commission to prove that the report is necessary to mwe that rates are Chapter 30 compliant and that the benefits of the report outweigh the expense to produce the report.

This mandate imposed was intentionally made stringent to reflect ow wishes to decrease the regulatory burdens an JLECs (as set forth in the declaration of policy in Act 183.) The fd - fo rm regulation d i e t s with legislative intent

It is our belief that the regulation should be modified to confarm to law, We enclose far your additional information oomrnents that were presented to the Commission related to this tQpic.

Sincerely,

Robert M. Tomfinson State Senator, 6th District

Sincerely,

Robert J. Flick State Representative, 1 67fi District

Cc Public Utility Commission Enclosure

RE: FlLING AND REPORTING REQ- ON IN-ENT LOCAL EX-- C-

Fran Ueavw, Esq. Counsel and Executive Dimor,

~ ~ a n s u m c r ~ o t e c t i o a a n d ~ r o f c s s i d ~ i c a w r c ~ ~ Smmtm Robert Tombcm, Cbairrnan

fixthis oppommitybofferr 1egidativepmptho.the

reporting and filing ~ ~ t s provkhs of Act 103 of 200). My oame is

Fran CIWCT arnd I m e S-or R O W Todinma as C w d and

Executive Dhxtaroftbe Seaate Corn R u t d m & P r o a s i d

f imreCommi#ee ,

The G e n d Amembly passes b u d d s ofpieces of ledslation c v ~ y

d o n ad, on occasion, questions arise as the new lawa ate bdng

did in fact ex* and the G m d Assembly took a c l d y diffacnt direction .

that d& pntif the signature by the G o v m r on Novmlm 30,20W, tbe

eight ~cporb on'gino~y rrquired the bin nmained, with the ninth report

required because of the BFRFZ p g a m . Thm wa! no requests f a

add i t id mpollts or =&ad Impage to be added, eitber publicly or m my

of the nlnaeraas mediags. It is of nabt h t these inchdsd

the Con-Ad- Chairman Holland, and C m d W w C

M y a s ~ t h ~ ~ ~ ~ ~ ' a o f f i c e m d o t h a r ~ ~ ~ ~ ~ 1 p a r t i w

i n t b i e H w t s e p u b l k m s e o i n g s a n d ~ ~ f f b t ~ m a h g & ~ ~

cxprrascdoancanthatthaopmvisimwaetooacmowmneededtobc

ACS ~ 8 3 ~ ~ ~ ~ t ~ t h e ~ i n ~ C b the

Assemblydidnotkaow the fall impmofwha~tl@idiet~ iguamche

1- of the it tooL and the mount of **c@tiop of lcgirtmn in

show that $8 minim dollam were @&bythe tel-*maan

Wust ry t~ a t b e OenedAs~&lydthe G r w m o n theae b e s .

in accmbct with the goals aftbe Legidatu~~ 'IW i s eatainly ia pa&ti~e

Howev, t h e apperm~ to be some confusion about the weight ofthe

Legislative Budgct md Finance Camittee report issued grarsugnt to Boust

Resolution 786 that was ismd. & the & h m of both the sbmdiq

committee ~ ~ ~ ~ m i b l c for the diqwitiw of Houre BW 30 and CZlainara of

, ths Legislative Budget md F h c e C d t & Scoator Tomlimn w m P

clear up any m i s ~ n d W i a g q i i d n g his wmmjtt~&s + TheLBFCrept wasclcvclqxd w h i l t ~ c t 1 8 3 w a s b e i a g ~ i d m d

It is my understanding tbat bacausc ofthe dave1ctpmt of that study& thc

concerns about theormount ofreportingthat prim to tht passage ofAct 183,

the Cdmmisslon had becn reviewing their repwting and filing qm&

bath i n t d y md u n k the d W o n ofHmse RmIutjOPI 786,

Thefinalwordonwhatreportsan:repuiradismtcontaidio~

LBFC report but in Ad 1.83. HR 786 provides hishorid value to u b t

bd been required but has no relevaace to this W g . Thc Resolution

reinforces the frus!mtion ofthe House with the Miefthat thc Commi~m

q ~ r e d ~ t o B e a l a r g c w r l u m e o f ~ ~ W i t b a d W b t

cmtaild through legisMo11,

Like the original Chapter 30 statute which expired at the end uf2m3,

Act f 83 d t s the incumbent local exchange caniem (EEC) to uni.vmdy

deploy hm netwarks in their -a tenitdries. Act 183 ilnihr*

. providing a. option for acceI~'m of b d deplaymd, in some

cases lopphg a MI seym yeam ofhmpmies' eumnt deploymmt

~ e d u l e s . As m h~e~ltive ta perf of^ this Cody aad thtwonmrming

exdm the staMt provides for regulatory relief in n n~mbor of most

notably the strict limitation o i ~ what repom are raquind of an TLEC.

h thy 's marketplacq the major ~~ to tbe ILECS are

ullfegu1d at the state level, The prwaot ofeel1u1ar and cable

telecommu~catim h c e s d the mergence af VOlP and Win (mmq . .

otbm), has snbstaatiaEly diminished tbe tn~%tioaal land based p W

mket~ToanrviveinUlt:~laet@~~movebaless

mkktive mp1ation. Tbe clays of the mnspaly and moaopoly -lation

me gone. The General Assembly has s a t a -sage to the Commission that

thcydonotprrant~ *-quo.

Underthe original Chapter30 legisbtioa in 1993, tbe commission

~ d ' d t o ~ r c p m h g r e q ~ ~ t s o n m d l a ~ . There

The ntlevom~ sections of the statute me 301 5 (e) and (f). S e c b 3015

(e) lists the eight npm& that U C a must contirwe & file with the

*

kdssion. A h t b report is filed d y by those Ems who are =@mhle

for offering tbe Bona Fide Retail Request @ERR) Program M mtablished in

he nine reports mmmtcd (or a oommrssion mtpw far addMomfd

d~tffylng Wolplstiaa w ope d tbe nine reports) must be ordered by the

commission after having met a Wepronged

are in cump1iamx with 0 e statute and jts alternative forrn OfrtqydrrtE~n;

2.) The benefits to the cummjssjoa of having the report subrsfane

oumefdl the expanspfo them 0 f ~ ~ c i P ~ t b e report

The LRgis~8tme retained tbe provisions a f ~ m 3015 (t) and (0

. eight sepmtc: tinaeg the bill was mended as it was deliberating B m e B'i

30, It is quik unusual fbs the Generat h d 1 y to dictate the msnms~ of

teports tbat agency may regaest, The limitatim ofrepwt9 dates directly to

the law's Decldm ofP01iw wbich seeks a decreased remlmtam bardm

on Pmyl~ania's ILECs and offers an k t i v e to tbege q n i w who am

From a kgh1atIvc W v c , the lmpage ia Sectim 3015 (e) md

(f) is clcac Eight md where appropriate nins npotts will be f l l d Ths

codssicm may seek clarification an my of the nine re- Each report

d its fomt w e ideatifid, b&m it tm mmemted in-law. Any

addjtioaal infunmation q d m the findings and order h a a c e jmdtm

outlined. The eight ~ e p o r h shdd nd c h g e in my way h m their pr&Act

183 fm ex- & tb A d Report h i & ig now limited to simply r

Mmce she& and income statemmt ('The BFRR Report is a ncw I.epwt

made necesmy by Act 383 and the only rtport which form may b Befined

by the Cammimion kame it is a new reporr).

1tras t th i s in fb~ i shdpfW. T b a n l r y a n f a r f f i e w t y t o

o ~ ~ m m t s a n d ~ l o o k f ~ ~ ~ ~ ~ w i t h y o u o n t b j s ~ h ~

TOTAL P. 07