SS SCS HCS HB 1779 -- UTILITY SERVICES

This bill changes the laws regarding telecommunications services,
natural gas safety penalties, and excavation involving utilities.

TELECOMMUNICATIONS SERVICES

The bill:

(1)  Requires interconnected voice over Internet protocol (VOIP)
service providers to be registered with the Missouri Public
Service Commission;

(2)  Defines "interconnected VOIP service" based on the Federal
Communications Commission guidelines and specifies that
interconnected VOIP service is not to be considered as a
telecommunications service;

(3)  Requires VOIP service providers to be subject to the same
exchange access charges imposed on telecommunications services
providers;

(4)  Requires VOIP providers to charge, collect, and remit the
appropriate fees to fund the Missouri Universal Service Fund,
telecommunications relay services, and local enhanced 911; file
annual reports with the commission; and develop a process for
handling customer questions and complaints;

(5)  Reduces from 60 to 30 the number of days that the commission
can suspend a proposed rate for new telecommunications services;

(6)  Allows for the use of price caps by incumbent local exchange
companies (ILECs) where a VOIP service provider has registered
with the Missouri Public Service Commission.  Price caps for
basic services will be adjusted annually based upon the federal
Consumer Price Index.  Non-basic telecommunications services are
exempt from price caps;

(7)  Allows ILECs some discretion to set maximum rates for basic
local services in noncompetitive exchanges based on specified
criteria and imposes limited annual increases to protect
consumers;

(8)  Changes certain criteria for determining when ILECs gain
competitive status in exchanges;

(9)  Allows ILECs to obtain rule and statute waivers in the same
manner as other regulated companies.  The commission may reimpose
quality of service and billing standards if it finds that the
ILEC has engaged in a pattern or practice of inadequate service;

(10)  Allows ILECs providing basic local telecommunications
services to businesses to be classified as competitive if two or
more other service providers are providing either business or
residential basic local telecommunications services in the
exchange.  ILECs providing basic local telecommunications
services to residences may be classified as competitive if two or
more other service providers are providing residential basic
local telecommunications services in the exchange;

(11)  Requires the commission to maintain records of competitive
companies, changes the biannual review of competitive status from
mandatory to discretionary, and specifies new criteria for
maximum allowable prices in exchanges that are not deemed
competitive but imposes limited annual increases to protect
consumers;

(12)  Requires the commission to determine a price-cap regulated
company to be competitive and no longer subject to price-cap
regulation if 55% or more of its subscriber-access lines are in
competitive exchanges.  Rates for basic local service in formerly
noncompetitive exchanges are capped at the average rate for basic
local service in the ILEC's competitive exchanges for four years
in increments not to exceed $2 per month each year following the
finding to protect consumers;

(13)  Revises the manner in which price-cap regulated companies
can rebalance rates on a revenue neutral basis.  Price-cap
regulated companies experiencing competition may raise basic
local rates up to the average rate for similar services in that
company's competitive exchanges in increments not to exceed $2
per month each year for a four-year period to protect consumers;

(14)  Allows all companies an alternative method for gaining
competitive classification for individual services on a
company-wide basis.  A company may also gain competitive status
as a whole if a majority of its services are declared
competitive;

(15)  Eliminates additional certification requirements imposed on
competitive companies for certain small, rural areas served by an
ILEC;

(16)  Allows the commission to investigate and resolve customer
complaints based on federal laws and regulations;

(17)  Establishes a cap on the exchange access rates of local
exchange companies when they are classified as competitive so
that they cannot raise the exchange access service rates charged
to other carriers;

(18)  Allows existing alternative local exchange carriers that
possess a certificate of service authority to provide basic local
telecommunications service to be granted statewide authorization;
and

(19)  Allows market pricing on a statewide basis for intrastate
operator and directory services including directory assistance
services.

NATURAL GAS SAFETY PENALTIES

The bill creates penalties for corporations, persons, and public
utilities that violate any law, order, decision, decree, rule,
direction, demand, or requirement of the Missouri Public Service
Commission relating to federally mandated natural gas safety
standards.  Municipalities that own gas plants are only liable
for violations of natural gas safety laws, rules, and orders.

The maximum penalty per violation will be $15,000, and the
maximum penalty for multiple violations or a continuing violation
of the same rule will be $150,000.  Beginning January 1, 2015,
the maximum penalties will be $20,000 and $200,000; beginning
January 1, 2025, $25,000 and $250,000; beginning January 1, 2035,
$30,000 and $300,000; and beginning January 1, 2040, $40,000 and
$400,000.

In determining penalty amounts, the commission may consider the
degree of culpability, prior violations, the effect of the
penalty on operations, good faith efforts at compliance, ability
to pay, and any other matters deemed relevant.

The acts and omissions of officers, agents, and employees of any
corporation, person, public utility, or other owner of a gas
plant will be considered the acts or omissions of the gas plant
owner.

EXCAVATION INVOLVING UTILITIES

The bill:

(1)  Requires the owners of specified utility lines used for
certain public purposes or located on public easements, lands, or
right-of-ways or on private lands not owned by the owner to
conform to the requirements of the Underground Facility Safety
and Damage Prevention Act;

(2)  Exempts the Highways and Transportation Commission from
being a notification center participant for excavation purposes
after December 31, 2011, but it may continue to be a participant
if it chooses;

(3)  Reduces from five years to one year a record-keeping
requirement by the notification center regarding the list of
pipeline excavators who gave notice of their intent to excavate;

(4)  Requires excavators to provide the notification center with
information on whether their excavation involves public
right-of-ways or easements for vehicular traffic;

(5)  Removes the requirement that an excavator mark excavation
locations when the location of underground facilities cannot be
determined by the facility owner;

(6)  Removes the requirement that all notices of intent to
excavate be in a written document and allows oral and electronic
notification of the intent to be considered as an official
record;

(7)  Allows excavators to make a design request through the
notification center requiring the marking of underground
facilities within five working days by the facility owners.
These requests do not supersede other notice requirements for
excavation;

(8)  Requires facility owners to contact excavators within two
working days starting at 12:00 a.m. following the receipt of a
notice of intent to excavate;

(9)  Requires facility owners to respond to a notice of an
emergency within two hours.  Excavators may be liable for any
costs incurred by the owner or operator because of a false
emergency situation report; and

(10)  Repeals an agricultural exception to excavation
requirements in Section 319.036, RSMo.

The provisions regarding excavation involving utilities become
effective January 1, 2009.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm