(a) Commission determination of protected, retail nonprotected and retail noncompetitive services as competitive.--

(1) A local exchange telecommunications company may petition the commission for a determination of whether a protected or retail noncompetitive service or other business activity in its service territory or a particular geographic area, exchange or group of exchanges or density cell within its service territory is competitive based on the demonstrated availability of like or substitute services or other business activities provided or offered by alternative service providers. The commission, after notice and hearing, shall enter an order granting or denying the petition within 60 days of the filing date or within 150 days of the filing date where a protest is timely filed, or the petition shall be deemed granted.

(2) The local exchange telecommunications company shall serve a copy of its petition on the Office of Consumer Advocate, the Office of Small Business Advocate and each of the parties to the commission's proceeding in which the company's network modernization plan that was in effect on December 31, 2003, was approved by the commission.

(3) In making its determination, the commission shall consider all relevant information submitted to it, including the availability of like or substitute services or other business activities, and shall limit its determination to the service territory or the particular geographic area, exchange or group of exchanges or density cell in which the service or other business activity has been proved to be competitive.

(4) The burden of proving that a protected or retail noncompetitive service or other business activity is competitive rests on the local exchange telecommunications company.

(b) Declaration of retail nonprotected services as competitive.--Notwithstanding the provisions of subsection (a), a local exchange telecommunications company may declare any retail nonprotected service as competitive by filing its declaration with the commission and serving it on the Office of Consumer Advocate, Office of Small Business Advocate and each of the parties to the commission's proceeding in which the company's network modernization plan that was in effect on December 31, 2003, was approved by the commission, provided that a local exchange telecommunications company may not use this declaration process for any service that the commission previously has reclassified as noncompetitive under either subsection (c) or prior law. A declaration of a retail nonprotected service as competitive shall be effective upon filing by the local exchange telecommunications company with the commission.

(c) Reclassification.--

(1) A party may petition the commission for a determination of whether a service or other business activity previously determined or declared to be competitive is noncompetitive. The commission, after notice and hearing, shall enter an order deciding the petition within 60 days of the filing date or 90 days of the filing date where a protest is timely filed, or the petition shall be approved.

(2) The petitioner shall serve a copy of the petition on the affected local exchange telecommunications company if the petitioner is not the company, the Office of Consumer Advocate, the Office of Small Business Advocate and each of the parties to the commission's proceeding in which the company's network modernization plan that was in effect on December 31, 2003, was approved by the commission.

(3) In making its determination, the commission shall consider all relevant information submitted to it, including the availability of like or substitute services or other business activities, and shall limit its determination to the particular geographic area, exchange or density cell in which the service or other business activity has been proved to be noncompetitive.

(4) The burden of proving that a competitive service or other business activity should be reclassified as noncompetitive rests on the party seeking the reclassification.

(5) If the commission reclassifies a service or other business activity as noncompetitive, the commission shall determine a just and reasonable rate for the reclassified service or business activity in accordance with section 1301 (relating to rates to be just and reasonable).

(d) Additional requirements.--

(1) The prices which a local exchange telecommunications company charges for competitive services shall not be less than the costs to provide the services.

(2) The commission may not require tariffs for competitive service offerings to be filed with the commission.

(3) A local exchange telecommunications company at its option may tariff its rates subject to rules and regulations applicable to the provision of competitive services.

(4) The commission may require a local exchange telecommunications company to maintain price lists with the commission applicable to its competitive services. Price changes that are filed in a company's tariff for competitive services will go into effect on a one-day notice.

(e) Pricing flexibility and bundling.--

(1) Subject to the requirements of subsection (d)(1), a local exchange telecommunications company may price competitive services at the company's discretion.

(2) A local exchange telecommunications company may offer and bill to customers on one bill bundled packages of services which include nontariffed, competitive, noncompetitive or protected services, including services of an affiliate, in combinations and at a single price selected by the company. A local exchange telecommunications company may file an informational tariff for a bundled package effective on a one-day notice.

(3) When an alternative service provider is offering local exchange telecommunications services within an exchange of a rural telecommunications carrier, the rural telecommunications carrier may reduce its prices on services offered within the exchange below the rates set forth in its otherwise applicable tariff in order to meet such competition. A rural telecommunications carrier may not offset revenue reductions resulting from such competitive pricing by increasing rates charged to other customers through its price stability mechanism or otherwise.

(f) Prohibitions.--

(1) A local exchange telecommunications company shall be prohibited from using revenues earned or expenses incurred in conjunction with noncompetitive services to subsidize competitive services.

(2) Paragraph (1) shall not be construed to prevent the marketing and billing of packages containing both noncompetitive and competitive services to customers.

(Nov. 30, 2004, P.L.1398, No.183, eff. imd.)

2004 Amendment. Act 183 added section 3016.

Cross References. Section 3016 is referred to in sections 3012, 3013, 3019 of this title.