5.__Service quality.__The rural telephone company is subject to service quality standards and an accompanying enforcement mechanism that are similar to those applicable to the largest nonrural incumbent local exchange carrier.

The commission may not adopt provisions for an alternative form of regulation that are inconsistent with the provisions of this section without the rural telephone company's consent.

SUMMARY

This bill enacts law governing the alternative forms of regulation that may be adopted for telephone companies, so as to prescribe a standard form of streamlined alternative rate regulation for the small rural telephone companies of the State. The bill allows a rural telephone company the option of placing itself under the standard alternative form of regulation by proposing an alternative form of regulation to the Public Utilities Commission that contains the standard provisions established by the Legislature in this law. If the proposal conforms to the standard alternative form of regulation, the commission must adopt the proposal and may not adopt provisions that are inconsistent with the standard provisions in the law, unless the rural telephone company consents.

The bill allows the rural telephone company to establish its rates for local basic service if the rates do not exceed the rates of the largest nonrural telephone company in the State. Also, the bill allows the rural telephone company to establish rates for interexchange services, optional calling features and other services that are generally directive with regard to rates for intrastate access services. The bill requires the company to comply with current law with regard to rates for intrastate access services. The bill requires the rural telephone company to be subject to service quality requirements and enforcement mechanisms similar to those applicable to the largest nonrural telephone company in the State under its alternative form of regulation.