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Download Proposed Regulation REVISED 12/16 Regulatory Analysis• Form JA9FPF F I 4TORV (Completed by Promulgating Agency) (McommentswbmktedonthlsregubtlonwlNappearonlRRc’swthsite) MAR 115 ZOZI (I) Agency: Independent Regulatory . Review Commission Pennsylvania Public Ltihty Commission (2) Auency Number: Docket No. L-20 18-3001391 Identification Number: 57-331 IRRC Number: 3 Z. 9 7 (3) PA Code Cite: 52 Pa. Code § 53.57—53.60; 63.1 — 63.137; 64.1 — 64.2; 64.12 —64.15; 64.22; 64.34—64.38; 64.61; 64.73-64.74; 64.103; 64.153; 64.181-64.182; 64.191; 64.201; and 64.211. (4) Short Title: Rulemaking to Comply with the Competitive Classification of Telecommunication Retail Services Under 66 Pa.C.S § 3016(a); General Review of Regulations 52 Pa. Code, Chapter 53, Chapter 63 and Chapter 64 (5) Agency Contacts (List Telephone Number and Email Address): Primary Contact: David B. Screven, Deputy Chief Counsel, 717-787-2126, [email protected] Secondary Contact: (6)Type of Rulemaking (check applicable box): Proposed Regulation fl Emergency Certification Regulation; Final Regulation LI Certification by the Governor Final Omitted Regulation LI Certification by the Attorney General (7) Briefly explain the regulation in clear and nontechnical language. (100 words or less) This Proposed Rulemaking would revise regulations applicable to jurisdictional telecommunications carriers. In particular, the proposal addresses the effects of increased competition which led to the reclassification of the retail telecommunications services offered to residential and business customers in certain geographic areas served by our two non-rural incumbent local exchange carriers (ILECs) Verizon Pennsylvania LLC (Verizon PA) and Vedzon North LLC (Verizon North) (collectively Verizon), which are the two largest jurisdictional telecommunications carriers in the Commonwealth. Specifically, due to the advent of viable competitive alternatives from unregulated alternative providers in the telecommunications market, the proposed regulation eliminates and’or modifies certain reporting obligations applicable to jurisdictional telecommunications carriers in the Commonwealth in both competitive and noncompetitive geographic markets in Pennsylvania. See Rulemaking to Comply iiith the Competitive Classification of Telecomnuniication Retail Services Under 66 Pa. C.S § 30 16(a); General Review ofRegilations 52 Pa. Code, Chapter 53, Chapter 63 and Chapter 64, Docket No. L-2018-3001391 (Order entered Sept. 21, 2020). (8) State the statutory authority for the regulation. Include specific statutory citation. 66 Pa.C.S. §* 501, 504, 505, 506, 1501, 1504, 1507, 1508, 1509, and 3011—3019; 45 P.S. § 1201; 71 P.S. § 732 204(b)); 71 P.S. § 745.5; and 71 P.S. § 232. 3001391 NOPR RAE Chapters 53, 63, 64; 11/13/2020; Page I (9) Is the regulation mandated by any federal or state law or court order, or federal regulation? Are there any relevant state or federal court decisions? If yes, cite the specific law, case or regulation as well as, any deadlines for action. Yes. 47 U.S.C. § 251, et seq., and 66 Pa.C.S. § 1501 and 3019(b)(2). As part of its Reclassification Order, the Commission, i,ster cilia, granted a five-year temporary waiver of certain of the Commission’s chapter 63 and Chapter 64 regulations to Verizon and those competitive local exchange carriers (CLECs) operating in the 153 wire centers that had been reclassified as competitive. The Commission ruled that this temporary waiver would remain effective pending a rulemaking to determine the amendment of these regulations in competitive and noncompetitive wire centers on a permanent and industry-wide basis. See Joint Petition of Verizon Pennsylvania LLC and Verizon North LLCJör Competitive ClassifIcation ofAll Retail Services in Certain Geographic Areas and for a Waiver of Regulationsfor Competitive Sen’iccs, Docket Nos. P-20 14-2446303 and P-20 14-2446304 (Order entered March 4,2015) (Reclassification Order). There are no relevant federal court decisions or deadlines. (10) State why the regulation is needed. Explain the compelling public interest that justifies the regulation. Describe who will benefit from the regulation. Quantify the benefits as completely as possible and approximate the number of people who will benefit. The telecommunications market has evolved because of the increased presence of unregulated alternative service providers. The Commission’s applicable telecommunications regulations should be updated so that they provide a meaningful balance between the reasonable exercise of the Commission’s jurisdiction over service adequacy, reliability and safety, and the alleviation of some unnecessary or vestigial burdens in a competitive marketplace. The proposed changes would benefit the regulated utilities as well as residential and business customers. The benefits inure from the proposed modification to the regulations that are more equitable for the industry, sufficiently protective for consumers, and user-friendly for both Commission staff and the industry. Specifically, the Commission has endeavored to reduce utility reports and other burdens while still ensuring a meaningftfl manner of addressing regulated services in order to find the right balance between relieving utilities of existing burdens while retaining an adequate layer of consumer protections. (11) Are there any provisions that are more stringent than federal standards? If yes, identify the specific provisions and the compelling Pennsylvania interest that demands stronger regulations. No. The proposed regulations do not set forth any provisions that are more stringent than federal standards. (12) How does this regulation compare with those of the other states? How will this affect Pennsylvania’s ability to compete with other states? The proposed regulation is consistent with actions by other states in the regulatory oversight of the telecommunications industry. By way of background, oversight of traditional retail wireline telecommunications services in the United States has been reduced over time as a result of increased competition and the transition of end-users from traditional wireline service to the more lightly regulated wireless telecommunications services and voice over Internet protocol (VoIP) services. Although traditional regulation has been reduced, the states continue to oversee telecommunications carrier 300139! NOPR RAF Chapters 53. 63, 64; 11/13/2020; Page 2 operations and services under the federal Telecommunications Act of 1996 and applicable state statutes, including the following (1) interconnection agreements (ICAs) and other wholesale access services, (2) numbering, (3) the designation of eligible telecommunications carriers (ETCs), (4) the collection and distribution of state and federal universal service hinding support, (5) Lifeline, (6) basic local retail services (in some states), (7) carrier-of-last-resort obligations and services (in those states that still require it), (8) Telecommunications Relay Services (TRS), (9) etc. Several states have passed legislation limiting direct oversight of retail wireline telecommunications services provided by the traditional incumbent local exchange carrier (ILEC). Other states, like Pennsylvania, also have reduced oversight, in all or part of the state, after a state utility commission formal examination proceeding finds that the availability of alternative service providers and the resulting competition, reduces or obviates the need for traditional regulatory oversight. (13) Will the regulation affect any other regulations of the promulgating agency or other state agencies? Ifyes. explain and provide specific citations. No. The regulation would not affect any other regulations of the Commission or any other state agencies. (14) Describe the communications with and solicitation of input from the public, any advisory’ council/group, small businesses and groups representing small businesses in the development and drafting of the regulation. List the specific persons and/or groups who were involved. (“Small business” is defined in Section 3 of the Regulatory Review Act, Act 76 of 2012.) In 2015, based on a joint petition filed by Verizon Pennsylvania LLC (Verizon PA) and Verizon North LLC (Vedzon North) (collectively Verizon), the Commission conducted a reclassification proceeding under 66 Pa. C.S. 3016. In that proceeding, the Commission partially granted the petition filed jointly by Verizon by reclassifying retail services offered to residential and small business customers as competitive in 153 of their 504 total wire centers and also waiving certain regulations tin Title 52 related to service quality and billing standards. See Joint Petition of Verizon Pennsvhania LLC and Verizon ;\1o,th LLCJbr Competitive Classification of A II Retail Services in Certain Geographic Areas and for a Waiver of Regulations/hr Competitive Services, Docket Nos. P-20l4-2446303 and P-2014-2446304 (Order entered March 4, 2015) (Reclassification Order). In 2018, the Commission initiated an Advance Notice of Proposed Rulemaking (ANOPR) at Docket No. L-20 18-3001391, pursuant to its Reclassification Order entered IVlarch 4, 2015. The ANOPR addressed not only those regulations that were temporarily waived due to Verizons partial competitive reclassification determination but also those regulations that, in effect, had become less vital given the evolution of the provision of telecommunications services today. Multiple parties participated with comments and reply comments, including Verizon, the 35 rural ILECS, AT&T, Coalition for Affordable Utility
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