CHAPTER 59. INFRASTRUCTURE PLAN
UTILITIES CODE
TITLE 2. PUBLIC UTILITY REGULATORY ACT
SUBTITLE C. TELECOMMUNICATIONS UTILITIES
CHAPTER 59. INFRASTRUCTURE PLAN
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 59.001. POLICY. It is the policy of this state that an
incumbent local exchange company that does not elect to be
regulated under Chapter 58 should have incentives to deploy
infrastructure that will benefit the residents of this state
while maintaining reasonable local rates and universal service.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.002. DEFINITIONS. In this chapter:
(1) "Electing company" means an incumbent local exchange company
that elects for an infrastructure commitment and corresponding
regulation under this chapter.
(2) "Election date" means the date on which the commission
receives notice of election under Subchapter B.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER B. INFRASTRUCTURE INCENTIVES
Sec. 59.021. ELECTION. (a) An incumbent local exchange company
may elect to make an infrastructure commitment and to be subject
to corresponding regulation under this chapter if the company:
(1) serves less than five percent of the access lines in this
state; and
(2) has not elected incentive regulation under Chapter 58.
(b) A company makes the election by notifying the commission in
writing of the company's election.
(c) A company electing under this chapter may renew the election
for successive two-year periods. An election that is renewed
under this subsection remains in effect until the earlier of the
date that:
(1) the election expires because it was not renewed;
(2) the commission allows the company to withdraw its election
under Section 59.022; or
(3) the legislature eliminates the incentive regulation
authorized by this chapter and Chapter 58.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 46, eff. Sept. 1,
1999.
Sec. 59.022. WITHDRAWAL OF ELECTION. (a) The commission may
allow an electing company to withdraw the company's election
under this chapter:
(1) on application by the company; and
(2) only for good cause.
(b) In this section, "good cause" includes only matters beyond
the control of the company.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.023. ELECTION UNDER CHAPTER 58. (a) This chapter does
not prohibit a company electing under this chapter from electing
incentive regulation under Chapter 58.
(b) If a company makes an election under Chapter 58, the
infrastructure commitment made under this chapter offsets the
infrastructure commitment required in connection with the Chapter
58 election.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.024. RATE CHANGES. (a) Except for the charges
permitted under Subchapter C, Chapter 55, Subchapter B, Chapter
56, and Section 55.024, an electing company may not, before the
end of the company's election period under this chapter, increase
a rate previously established for that company under this title
unless the commission approves the proposed change as authorized
under Subsection (c) or (d).
(b) For purposes of Subsection (a), the company's previously
established rates are the rates charged by the company on its
election date without regard to a proceeding pending under:
(1) Section 15.001;
(2) Subchapter D, Chapter 53; or
(3) Subchapter G, Chapter 2001, Government Code.
(c) The commission, on motion of the electing company or on its
own motion, shall adjust prices for services to reflect changes
in Federal Communications Commission separations that affect
intrastate net income by at least 10 percent.
(d) Notwithstanding Subsection (a), the commission, on request
of the electing company, shall allow a rate group
reclassification that results from access line growth.
(e) Section 58.059 applies to a rate change under this section.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 47, eff. Sept. 1,
1999.
Sec. 59.025. SWITCHED ACCESS RATES. Notwithstanding any other
provision of this title, the commission may not, on the
commission's own motion, reduce an electing company's rates for
switched access services before the expiration of the election
period prescribed by Section 59.024, but may approve a reduction
proposed by the electing company.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 48, eff. Sept. 1,
1999.
Sec. 59.026. COMPLAINT OR HEARING. (a) On or before the end of
the company's election period, an electing company is not, under
any circumstances, subject to:
(1) a complaint or hearing regarding the reasonableness of the
company's:
(A) rates;
(B) overall revenues;
(C) return on invested capital; or
(D) net income; or
(2) a complaint that a rate is excessive.
(b) Subsection (a) applies only to a company that is in
compliance with the company's infrastructure commitment under
this chapter.
(c) This section does not prohibit a complaint, hearing, or
determination on an electing company's implementation of a
competitive safeguard required by Chapter 60.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1212, Sec. 49, eff. Sept. 1,
1999.
Sec. 59.027. CONSUMER COMPLAINTS REGARDING TARIFFS. (a) This
chapter does not restrict:
(1) a consumer's right to complain to the commission about the
application of an ambiguous tariff; or
(2) the commission's right to determine:
(A) the proper application of that tariff; or
(B) the proper tariff rate if that tariff does not apply.
(b) This section does not permit the commission to:
(1) lower a tariff rate except as specifically provided by this
title;
(2) change the commission's interpretation of a tariff; or
(3) extend the application of a tariff to a new class of
customers.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.028. CONSUMER COMPLAINTS REGARDING SERVICES; ENFORCEMENT
OF STANDARDS. This chapter does not restrict:
(1) a consumer's right to complain to the commission about
quality of service; or
(2) the commission's right to enforce a quality of service
standard.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.029. INVESTMENT LIMITATION ON SERVICE STANDARDS. (a)
The commission may not raise a service standard applicable to the
provision of local exchange telephone service by an electing
company if the increased investment required to comply with the
raised standard in any year exceeds 10 percent of the company's
average annual intrastate additions in capital investment for the
most recent five-year period.
(b) In computing the average under Subsection (a), the electing
company shall exclude:
(1) extraordinary investments made during the five-year period;
and
(2) investments required by Section 59.052.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.030. NEW SERVICES. (a) An electing company may
introduce a new service 10 days after providing an informational
notice to the commission, to the office, and to any person who
holds a certificate of operating authority in the electing
company's certificated area or areas or who has an effective
interconnection agreement with the electing company.
(b) An electing company shall price each new service at or above
the service's long run incremental cost. The commission shall
allow a company serving fewer than one million access lines to
establish a service's long run incremental cost by adopting, at
that company's option, the cost studies of a larger company for
that service that has been accepted by the commission.
(c) An affected person, the office on behalf of residential or
small commercial customers, or the commission may file a
complaint at the commission challenging whether the pricing by an
electing company of a new service is in compliance with
Subsection (b).
(d) If a complaint is filed under Subsection (c), the electing
company has the burden of proving that the company set the price
for the new service in accordance with the applicable provisions
of this subchapter. If the complaint is finally resolved in favor
of the complainant, the electing company:
(1) shall, not later than the 10th day after the date the
complaint is finally resolved, amend the price of the service as
necessary to comply with the final resolution; or
(2) may, at the company's option, discontinue the service.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 50, eff. Sept. 1,
1999.
Sec. 59.031. PRICING AND PACKAGING FLEXIBILITY. (a)
Notwithstanding Section 59.027(b) or Subchapter F, Chapter 60, an
electing company may exercise pricing flexibility in accordance
with this section, including the packaging of any regulated
service such as basic local telecommunications service with any
other regulated or unregulated service or any service of an
affiliate. The electing company may exercise pricing flexibility
10 days after providing an informational notice to the
commission, to the office, and to any person who holds a
certificate of operating authority in the electing company's
certificated area or areas or who has an effective
interconnection agreement with the electing company. Pricing
flexibility includes all pricing arrangements included in the
definition of "pricing flexibility" prescribed by Section
51.002(7) and includes packaging of regulated services with
unregulated services or any service of an affiliate.
(b) An electing company, at the company's option, shall price
each regulated service offered separately or as part of a package
under Subsection (a) at either the service's tariffed rate or at
a rate not lower than the service's long run incremental cost.
The commission shall allow a company serving fewer than one
million access lines to establish a service's long run
incremental cost by adopting, at that company's option, the cost
studies of a larger company for that service that have been
accepted by the commission.
(c) An affected person, the office on behalf of residential or
small commercial customers, or the commission may file a
complaint alleging that an electing company has priced a
regulated service in a manner that does not meet the pricing
standards of this subchapter. The complaint must be filed before
the 31st day after the company implements the rate.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 50, eff. Sept. 1,
1999.
Sec. 59.032. CUSTOMER PROMOTIONAL OFFERINGS. (a) An electing
company may offer a promotion for a regulated service for not
more than 90 days in any 12-month period.
(b) The electing company shall file with the commission a
promotional offering that consists of:
(1) waiver of installation charges or service order charges, or
both, for not more than 90 days in a 12-month period; or
(2) a temporary discount of not more than 25 percent from the
tariffed rate for not more than 60 days in a 12-month period.
(c) An electing company is not required to obtain commission
approval to make a promotional offering described by Subsection
(b).
(d) An electing company may offer a promotion of any regulated
service as part of a package of services consisting of any
regulated service with any other regulated or unregulated service
or any service of an affiliate.
Added by Acts 1999, 76th Leg., ch. 1212, Sec. 50, eff. Sept. 1,
1999.
SUBCHAPTER C. INFRASTRUCTURE COMMITMENT AND GOALS
Sec. 59.051. INFRASTRUCTURE COMMITMENT. (a) An electing
company shall commit to make in this state, during the six years
after the election date, the telecommunications infrastructure
investment prescribed by this chapter.
(b) The company shall make the commitment to the governor and
the commission in writing.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.052. INFRASTRUCTURE GOALS. (a) The commission shall
ensure that each electing company achieves the infrastructure
goals described by this section.
(b) Each new central office switch installed for an electing
company in this state after September 1, 1995, must be digital.
(c) An electing company shall make available to each customer in
the company's territory access to end-to-end digital
connectivity. In this subsection, "make available" has the
meaning assigned by 16 T.A.C. Section 23.69.
(d) In each electing company's territory, 50 percent of the
local exchange access lines must be served by a digital central
office switch.
(e) An electing company's public switched network backbone
interoffice facilities must employ broadband facilities that
serve at least 50 percent of the local exchange access lines and
are capable of 45 or more megabits a second. The company may
employ facilities at a lower bandwidth if technology permits the
delivery of video signal at the lower bandwidth at a quality
level comparable to a television broadcast signal. The
requirements of this subsection do not apply to local loop
facilities.
(f) An electing company shall install Common Channel Signaling 7
capability in each access tandem office.
(g) The infrastructure goals specified by Subsections (c)-(f)
must be achieved not later than January 1, 2000.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.053. WAIVER OF INFRASTRUCTURE REQUIREMENTS. (a) For an
electing company that serves fewer than one million lines, the
commission may waive a requirement prescribed by Section 59.052
if the company demonstrates that the investment is not viable
economically.
(b) Before granting a waiver under Subsection (a), the
commission must consider the public benefits that would result
from compliance with the requirement.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.054. PROGRESS REPORT. (a) On each anniversary of the
company's election date, an electing company shall file with the
commission a report on the company's progress on its
infrastructure commitment.
(b) The report must include a statement of:
(1) the institutions requesting service under Subchapter D;
(2) the institutions served under Subchapter D;
(3) the investments and expenses for the previous period and the
total investments and expenses for all periods; and
(4) other information the commission considers necessary.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.055. IMPLEMENTATION COSTS; INCREASE IN RATES AND
UNIVERSAL SERVICE FUNDS. The commission may not consider the
cost of implementing Section 59.052 in determining whether an
electing company is entitled to:
(1) a rate increase under this chapter; or
(2) increased universal service funds under Subchapter B,
Chapter 56.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
SUBCHAPTER D. INFRASTRUCTURE COMMITMENT TO CERTAIN ENTITIES
Sec. 59.071. DEFINITIONS. In this subchapter:
(1) "Educational institution" has the meaning assigned by
Section 57.021.
(2) "Library" means:
(A) a public library or regional library system as those terms
are defined by Section 441.122, Government Code;
(B) a library operated by an institution of higher education or
a school district; or
(C) a library operated by a nonprofit corporation as defined by
Section 441.221(3), Government Code.
(3) "Private network services" means telecommunications services
provided to an entity described by Section 59.072(a), including
broadband services, customized services, and packaged network
services.
(4) "Telemedicine center" means a facility that is equipped to
transmit, by video or data service, medical information for the
diagnosis or treatment of illness or disease and that is:
(A) owned or operated by a public or not-for-profit hospital; or
(B) owned by a state-licensed health care practitioner and
operated on a nonprofit basis.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
831, Sec. 13, eff. September 1, 2008.
Sec. 59.072. PRIVATE NETWORK SERVICES FOR CERTAIN ENTITIES. (a)
On customer request, an electing company shall provide private
network services to:
(1) an educational institution;
(2) a library;
(3) a telemedicine center; or
(4) a legally constituted consortium or group of entities listed
in this subsection.
(b) Except as provided by Section 59.081, the electing company
shall provide the private network services for the private and
sole use of the receiving entity. However, the company may
provide the services with a facility that is used to provide
another service to another customer.
(c) The customers listed in Subsection (a) are a special class
of customers for purposes of the private network for distance
learning, telemedicine, and information-sharing purposes.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.073. INVESTMENT PRIORITIES. An electing company shall
give investment priority to serving:
(1) rural areas;
(2) areas designated as critically underserved medically or
educationally; and
(3) educational institutions with high percentages of
economically disadvantaged students.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.074. CONTRACTS FOR PRIVATE NETWORK SERVICES. (a) An
electing company shall provide a private network service under a
customer-specific contract.
(b) An electing company shall offer private network service
contracts under this subchapter at 110 percent of the long run
incremental cost of providing the private network service,
including installation costs.
(c) Each contract shall be filed with the commission. Commission
approval of a contract is not required.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.075. PREFERRED RATE TREATMENT WARRANTED. The classes of
customers described by Section 59.072(a) warrant preferred rate
treatment. However, a rate charged for a service must cover the
service's long run incremental cost.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.076. ELECTION OF RATE TREATMENT. An educational
institution or a library may elect the rate treatment provided by
this subchapter or the discount provided by Subchapter B, Chapter
57.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.077. PRIVATE NETWORK SERVICES RATES AND TARIFFS. (a)
Notwithstanding the pricing flexibility authorized by this
subtitle, an electing company's rates for private network
services may not be increased before January 1, 2012.
(b) An electing company may not assess an entity described by
Section 59.072(a) a tariffed special construction or installation
charge unless the company and the entity agree on the assessment.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., 2nd C.S., Ch.
2, Sec. 22, eff. September 7, 2005.
Sec. 59.078. PRIVATE LINE OR SPECIAL ACCESS RATES. (a) On
request by an educational institution or a library, an electing
company shall provide 1.544 megabits a second private line or
special access service at 110 percent of the service's long run
incremental cost, including installation costs.
(b) The rate provided by Subsection (a) is in lieu of the
discount provided by Subchapter B, Chapter 57.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.079. COMPLAINTS LIMITED. Notwithstanding any other
provision of this title, an electing company is subject to a
complaint under Subchapter C or this subchapter only by an entity
described by Section 59.072(a).
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.080. INTERCONNECTION OF NETWORK SERVICES. The private
network services provided under this subchapter may be
interconnected with other similar networks for distance learning,
telemedicine, and information-sharing purposes.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.081. SHARING OR RESALE OF NETWORK SERVICES. (a) A
private network service may be used and shared among the entities
described by Section 59.072(a) but may not be otherwise shared or
resold to other customers.
(b) A service provided under this subchapter may not be required
to be resold to other customers at a rate provided by this
subchapter.
(c) This section does not prohibit an otherwise permitted resale
of another service that an electing company may offer through the
use of the same facilities used to provide a private network
service offered under this subchapter.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.082. IMPLEMENTATION COSTS; INCREASE IN RATES AND
UNIVERSAL SERVICE FUNDS. The commission may not consider the
cost of implementing this subchapter in determining whether an
electing company is entitled to:
(1) a rate increase under this chapter; or
(2) increased universal service funds under Subchapter B,
Chapter 56.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Sec. 59.083. CONTINUATION OF OBLIGATION. Notwithstanding any
other provision of this title, an electing company shall continue
to comply with this subchapter until January 1, 2012, regardless
of:
(1) the date the company elected under this chapter; or
(2) any action taken in relation to that company under Chapter
65.
Added by Acts 2005, 79th Leg., 2nd C.S., Ch.
2, Sec. 23, eff. September 7, 2005.