Affiliated interest contracts. Under current law, the PSC has supervisory
jurisdiction over contracts between TUs and affiliated interests as necessary to
enforce certain provisions under current law regarding access services,
interconnection, and other requirements for protecting consumers and other
telecommunications providers. Under this bill, the PSC's jurisdiction over such
contracts is limited to TUs and affiliated interests that do not offer a bundle or
package, as defined as described above. However, the bill requires a TU that offers
a bundle or package to provide copies of contracts with affiliated interests if the PSC
requests the copies in a complaint proceeding and if the copies are necessary to
investigate violations of the foregoing provisions. In addition, the bill requires any
contract between a TU and an affiliated interest to specify certain information,
including the services furnished under the contract; the properties or rights
purchased, leased, or exchanged under the contract; and the contract's rates, terms,
and conditions. Also, the bill requires a TU retain a copy of such contracts for three
years.
Finally, the bill changes the deadline by which public utilities must file annual
accounting balance sheets with the PSC. This requirement generally applies to any
type of public utility, including a TU that is not an ATU. The bill changes the deadline
from April 1 to May 1.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB128, s. 1 1Section 1. 196.07 (1) of the statutes is amended to read:
SB128,4,42 196.07 (1) Each public utility shall close its accounts annually on December 31
3and promptly prepare a balance sheet of that date. On or before the following April

1May 1 every public utility shall file with the commission the balance sheet together
2with any other information the commission prescribes, verified by an officer of the
3public utility. The commission, for good cause shown, may extend the time for filing
4the balance sheet and prescribed information.
SB128, s. 2 5Section 2. 196.194 (1) of the statutes is amended to read:
SB128,5,46 196.194 (1) Telecommunications utilities. Except as provided in this
7subsection, nothing
Nothing in this chapter prohibits the commission from
8approving the filing of a tariff which permits with general terms and conditions
9allowing
a telecommunications utility to enter into an individual contract with an
10individual customer if substitute telecommunications services are available to
11customers or potential customers of the telecommunications utility and the absence
12of such a tariff will cause the telecommunications utility to be disadvantaged in
13competing for business. A tariff filed under this subsection shall include the
14condition that any such contract shall be compensatory as determined under s.
15196.204 (5) and (6). The tariff shall include any other condition and procedure
16required by the commission in the public interest. Within 20 days after a contract
17authorized under this subsection or an amendment to such a contract has been
18executed, the telecommunications utility shall submit to the commission written
19notice of the general nature of the contract and the parties to the contract. Upon
20request, the commission shall inform a person, or direct that the person be informed,
21that notice has been received by the commission of execution of a contract under this
22subsection. Within 6 months after receiving substantial evidence that a contract
23may be noncompensatory, or upon its own motion, the commission shall investigate
24and determine whether the contract is compensatory. If the commission determines
25that the contract is noncompensatory, the commission may make appropriate

1adjustments in the rates or tariffs of the telecommunications utility that has entered
2into the contract, in addition to other remedies under this chapter. The dollar
3amount of the adjustment may not be less than the amount by which the contract was
4found to be noncompensatory
.
SB128, s. 3 5Section 3. 196.203 (1) of the statutes is renumbered 196.203 (1g) and amended
6to read:
SB128,5,117 196.203 (1g) Alternative telecommunications utilities are exempt from all
8provisions of ch. 201 and this chapter, except as provided in this section and except
9that an alternative telecommunications utility that is a local government
10telecommunications utility, as defined in s. 196.204 (5) (ag) 1., is subject to s. 196.204
11(5).
SB128, s. 4 12Section 4. 196.203 (1d) of the statutes is created to read:
SB128,5,1413 196.203 (1d) In this section, "local government telecommunications utility"
14has the meaning given in s. 196.204 (5) (ag) 1.
SB128, s. 5 15Section 5. 196.203 (2) of the statutes is renumbered 196.203 (2) (a) and
16amended to read:
SB128,5,2017 196.203 (2) (a) No person may commence providing service as an alternative
18telecommunications utility unless the person petitions for and the commission issues
19a determination certification that the person is an alternative telecommunications
20utility.
SB128,5,24 21(6) The commission shall maintain information on authorized certified
22alternative telecommunications utilities and on applicants for alternative
23telecommunications utility status certification and make that information available
24to any person, upon request.
SB128, s. 6 25Section 6. 196.203 (2) (b) and (c) of the statutes are created to read:
SB128,6,8
1196.203 (2) (b) Except for an alternative telecommunications utility that is a
2local government telecommunications utility, certification as an alternative
3telecommunications utility shall be on a statewide basis and any certification issued
4by the commission before the effective date of this paragraph .... [LRB inserts date],
5to an alternative telecommunications utility that is not a local government
6telecommunications utility is considered amended to be a statewide certification.
7This paragraph does not alter any conditions of a certification issued before the
8effective date of this paragraph .... [LRB inserts date], except for geographic scope.
SB128,6,139 (c) The commission may deny a petition for certification as an alternative
10telecommunications utility described in s. 196.01 (1d) (f) if the commission finds that
11the petitioner does not have the financial, managerial, or technical capabilities to
12provide its proposed services or to comply with conditions that the commission is
13authorized to impose under sub. (3) (a).
SB128, s. 7 14Section 7. 196.203 (3) (a) of the statutes is amended to read:
SB128,6,2515 196.203 (3) (a) In response to a petition from any interested person, or upon
16its own motion, the commission shall determine whether the public interest requires
17that any provision of ch. 201 or this chapter be imposed on a person providing or
18proposing to provide service as an alternative telecommunications utility in a
19relevant market. In making this determination, the commission may consider
20factors including the quality of service, customer complaints, concerns about the
21effect on customers of local exchange telecommunications utilities and the extent to
22which similar services are available from alternative sources. The commission may
23impose a condition under this paragraph on the certification of an alternative
24telecommunications utility described in s. 196.01 (1d) (f) only if the condition is
25consistent with 47 USC 253 (a) and (b).
SB128, s. 8
1Section 8. 196.203 (3) (b) (intro.) of the statutes is amended to read:
SB128,7,62 196.203 (3) (b) (intro.) The commission may not deny a petition filed under par.
3(a) by a provider of cable service for alternative telecommunications utility status
4certification in a particular geographical area as not being in the public interest if
5basic local exchange service is provided in the same geographical area by any of the
6following:
SB128, s. 9 7Section 9. 196.203 (3) (d) of the statutes is repealed.
SB128, s. 10 8Section 10. 196.203 (3) (e) 1. (intro.) of the statutes is amended to read:
SB128,7,149 196.203 (3) (e) 1. (intro.) If a provider of cable service files a petition under par.
10(a) for alternative telecommunications status utility certification to offer local
11exchange service, as defined in s. 196.50 (1) (b) 1. 196.219 (1) (b), in a geographical
12area served by a telecommunications utility with less than 50,000 access lines in use
13in this state on September 1, 1994, or at any time thereafter, the commission may not
14deny the petition as not being in the public interest and shall do any of the following:
SB128, s. 11 15Section 11. 196.203 (5) of the statutes is amended to read:
SB128,7,1816 196.203 (5) The commission may establish a reasonable fee schedule and may
17assess an alternative telecommunications utility to cover the cost of making a
18certification or other determination under this section.
SB128, s. 12 19Section 12. 196.204 (8) of the statutes is created to read:
SB128,7,2020 196.204 (8) (a) In this subsection:
SB128,7,2121 1. "Affiliated interest" has the meaning given in s. 196.52 (1).
SB128,7,2522 2. "Bundle" means a multiservice retail offering by a telecommunications
23utility that combines one or more telecommunications services provided by the
24telecommunications utility with one or more services provided by an affiliated
25interest of the telecommunications utility or by an unaffiliated 3rd party.
SB128,8,4
13. "Package" means a multiservice retail offering by a telecommunications
2utility that combines a telecommunications service provided by the
3telecommunications utility with one or more other telecommunications or other
4services provided by the telecommunications utility.
SB128,8,65 (b) This section does not apply to a telecommunications utility, or any affiliated
6interest of a telecommunications utility, that offers services in a bundle or package.
SB128, s. 13 7Section 13. 196.213 (3) of the statutes is created to read:
SB128,8,98 196.213 (3) This section does not apply to a rate increase for a bundle, as
9defined in s. 196.204 (8) (a) 2., or package, as defined in s. 196.204 (8) (a) 3.
SB128, s. 14 10Section 14. 196.219 (1) (b) of the statutes is amended to read:
SB128,8,1311 196.219 (1) (b) "Local exchange service" has the meaning given in s. 196.50 (1)
12(b) 1.
includes access service, basic local exchange service, and business access line
13and usage service within a local calling area.
SB128, s. 15 14Section 15. 196.219 (2) (a) of the statutes is amended to read:
SB128,8,2015 196.219 (2) (a) Notwithstanding any exemptions identified in this chapter
16except sub. (3) (g) and s. 196.202, a telecommunications utility or provider shall
17provide protection to its consumers under this section unless exempted in whole or
18in part by rule or order of the commission under this section. The commission shall
19promulgate rules that identify the conditions under which provisions of this section
20may be suspended.
SB128, s. 16 21Section 16. 196.219 (3) (g) of the statutes is amended to read:
SB128,9,222 196.219 (3) (g) Provide services, products or facilities in violation of s. 196.204.
23This paragraph does not apply to a telecommunications utility, or any affiliated
24interest, as defined in s. 196.52 (1), of a telecommunications utility, that offers

1services in a bundle, as defined in s. 196.204 (8) (a) 2., or package, as defined in s.
2196.204 (8) (a) 3.
SB128, s. 17 3Section 17. 196.50 (1) (b) 1. of the statutes is repealed.
SB128, s. 18 4Section 18. 196.50 (1) (b) 2. of the statutes is repealed.
SB128, s. 19 5Section 19. 196.50 (1) (b) 3. of the statutes is renumbered 196.50 (1) (bm).
SB128, s. 20 6Section 20. 196.52 (5) (b) of the statutes is renumbered 196.52 (5) (b) 2. and
7amended to read:
SB128,9,118 196.52 (5) (b) 2. For a telecommunications utilities utility that does not offer
9a bundle or package
, the commission shall have supervisory jurisdiction over the
10terms and conditions of contracts and arrangements under this section as necessary
11to enforce ss. 196.204 and 196.219.
SB128, s. 21 12Section 21. 196.52 (5) (b) 1. of the statutes is created to read:
SB128,9,1313 196.52 (5) (b) 1. In this paragraph:
SB128,9,1414 a. "Bundle" has the meaning given in s. 196.204 (8) (a) 2.
SB128,9,1515 b. "Package" has the meaning given in s. 196.204 (8) (a) 3.
SB128, s. 22 16Section 22. 196.52 (5) (b) 3. and 4. of the statutes are created to read:
SB128,9,2217 196.52 (5) (b) 3. Except for subd. 4., this section does not apply to a
18telecommunications utility, or any affiliated interest of a telecommunications utility,
19that offers a bundle or package, except that such a telecommunications utility shall
20provide a copy of any contract or arrangement with an affiliated interest that is
21necessary for an investigation of a violation of s. 196.219, other than s. 196.219 (3)
22(g), and has been requested in a complaint proceeding by the commission.
SB128,9,2523 4. Any contract or arrangement between a telecommunications utility and an
24affiliated interest shall specify the services furnished, and the properties, rights, or
25things purchased, sold, leased, or exchanged, under the contract or arrangement,

1and shall specify the rates, terms, and conditions for such furnishing, purchase, sale,
2lease, or exchange. A telecommunications utility shall retain a copy of any contract
3or arrangement with an affiliated interest for 3 years after the termination date of
4the contract or arrangement.
SB128, s. 23 5Section 23. Nonstatutory provisions.
SB128,10,96 (1) Notwithstanding the treatment of sections 196.203 (2) (b) and 196.50 (1) (b)
71., 2., and 3. of the statutes by this act, the parties to the proceeding before the Public
8Service Commission in docket 3355-NC-104 shall comply with the settlement
9agreement accepted by the commission in that proceeding.
SB128, s. 24 10Section 24. Initial applicability.
SB128,10,1211 (1) The treatment of section 196.194 (1) of the statutes first applies to tariffs
12filed on the effective date of this subsection.
SB128,10,1313 (End)
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