00                     CS FOR SENATE BILL NO. 205(L&C)                                                                    
01 "An Act relating to the Regulatory Commission of Alaska; relating to the public utility                                 
02 regulatory cost charge; and relating to telecommunications regulations, exemptions,                                     
03 charges, and rates."                                                                                                    
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 29.35.070(a) is amended to read:                                                                   
06 (a)  The assembly acting for the area outside all cities in the borough and the                                         
07 council acting for the area in a city may regulate, fix, establish, and change the rates                                
08 and charges imposed for a utility service provided to the municipality or its inhabitants                               
09 by a utility that is not subject to regulation under AS 42.05 unless that utility is                                    
10 exempted from regulation under AS 42.05.711(a), (d) - (k), (o), (p), or (r) [, OR IS                                    
11 EXEMPTED UNDER REGULATIONS ADOPTED UNDER AS 42.05.810 FROM                                                              
12 COMPLYING WITH ALL OR PART OF AS 42.05.141 - 42.05.712, 42.05.990, OR                                                   
13       42.05.995].                                                                                                       
14    * Sec. 2. AS 42.05.141 is amended by adding new subsections to read:                                               

01            (e)  The commission may not designate a local exchange carrier or an                                         
02       interexchange carrier as the carrier of last resort.                                                              
03            (f)  The commission may designate an eligible telecommunications carrier                                     
04       consistent with 47 U.S.C. 214(e).                                                                                 
05    * Sec. 3. AS 42.05.211 is amended to read:                                                                         
06            Sec. 42.05.211.  Annual report.  The commission shall, by November 15 of                                   
07       each year, publish an annual report reviewing its activities during the previous fiscal                           
08       year and notify the legislature that the report is available. The report must                                     
09                 (1)  address the regulation of public utility service in the state as of                            
10 June 30 and must contain details about the commission's compliance with the                                             
11 requirements of AS 42.05.175(a) - (e), with the timeline extensions made by the                                         
12 commission under AS 42.05.175(f), and with other performance measures established                                       
13       by the commission; and                                                                                        
14 (2)  describe the activity and costs related to regulating each type of                                             
15       telecommunications carrier.                                                                                   
16    * Sec. 4. AS 42.05.254(a) is amended to read:                                                                      
17 (a)  A regulated public utility or a utility that provides telecommunications                                       
18 services operating in the state shall pay to the commission an annual regulatory cost                               
19 charge in an amount not to exceed the maximum percentage of adjusted gross revenue                                      
20 that applies to the utility sector of which the utility is a part. The regulatory cost                                  
21 charges that the commission expects to collect from all regulated utilities and utilities                           
22 providing telecommunications services may not exceed the sum of the following                                       
23 percentages of the total adjusted gross revenue of all regulated public utilities, and                              
24 utilities providing telecommunications services, derived from operations in the                                     
25 state: (1) not more than .7 percent to fund the operations of the commission, and (2)                                   
26 not more than .17 percent to fund operations of the public advocacy function under                                      
27 AS 42.04.070(c) and AS 44.23.020(e) within the Department of Law. An exempt                                             
28 utility that does not provide telecommunications services shall pay the actual cost                                 
29       of services provided to it by the commission.                                                                     
30    * Sec. 5. AS 42.05.254(h) is amended to read:                                                                      
31 (h)  The commission shall by regulation establish a method to determine                                                 

01 annually the maximum percentage of adjusted gross revenue that will apply to each                                       
02 regulated public utility sector or the telecommunications utility sector and the                                    
03 maximum percentage of gross revenue that will apply to the regulated pipeline carrier                                   
04 sector. Other than the cost of services provided to exempt utilities that do not provide                            
05 telecommunications services, the method established shall allocate the commission's                                 
06 costs, and the Department of Law's certified costs of its public advocacy function                                      
07 under AS 42.04.070(c) and AS 44.23.020(e), among the regulated public utility                                           
08 sectors, the telecommunications utility sector, and the regulated pipeline carrier                                  
09 sector based on the relative amount of the commission's annual costs and the                                            
10 Department of Law's certified costs that is attributable to regulating each sector. For                                 
11 purposes of this subsection, the Department of Law shall annually certify to the                                        
12 commission the costs of its public advocacy function under AS 42.04.070(c) and                                          
13       AS 44.23.020(e).                                                                                                  
14    * Sec. 6. AS 42.05.254(i)(2) is amended to read:                                                                   
15 (2)  "exempt utility" means a public utility that does not provide                                                  
16 telecommunications services and is certificated by the commission under                                             
17 AS 42.05.221 - 42.05.281 but, in accordance with AS 42.05.711(a) - (t)                                              
18       [AS 42.05.711], is exempt from other regulatory requirements of this chapter;                                     
19    * Sec. 7. AS 42.05.711 is amended by adding a new subsection to read:                                              
20 (u)  A utility that provides telecommunications services is exempt from the                                             
21 provisions of this chapter, other than AS 42.05.141(f), 42.05.221 - 42.05.281,                                          
22       42.05.296, 42.05.306, 42.05.631, 42.05.641, and 42.05.830 - 42.05.860.                                            
23    * Sec. 8. AS 42.05.820 is amended to read:                                                                         
24 Sec. 42.05.820. No municipal regulation. A long distance telephone company                                            
25 or a local exchange carrier that is exempted in whole or in part from complying with                                
26 all or a portion of this chapter may not be regulated by a municipality under                                           
27       AS 29.35.060 and 29.35.070.                                                                                       
28    * Sec. 9. AS 42.05.890 is amended to read:                                                                         
29 Sec. 42.05.890. Definitions. In AS 42.05.820 - 42.05.890 [AS 42.05.800 -                                          
30       42.05.890],                                                                                                       
31 (1)  "local exchange carrier" means any carrier certificated to provide                                                 

01       local telephone services;                                                                                         
02                 (2)  "long distance carrier" or "long distance telephone company"                                       
03       means any carrier certificated to provide long distance telephone services;                                       
04                 (3)  "long distance telephone service" or "long distance service" means                                 
05       intrastate, interexchange telephone service.                                                                      
06    * Sec. 10. AS 42.06.286(e) is amended to read:                                                                     
07 (e)  The commission shall by regulation establish a method to determine                                                 
08 annually the maximum percentage of gross revenue that will apply to each regulated                                      
09 public utility sector and the telecommunications utility sector and the maximum                                     
10       percentage of gross revenue that will apply to the regulated pipeline carrier sector in                           
11       accordance with AS 42.05.254(h).                                                                                  
12    * Sec. 11. AS 42.05.325, 42.05.800, and 42.05.810 are repealed.