NAC704.6807. Classification of service as competitive.

     1. A person who requests that the Commission classify a service which is provided by a small-scale provider of last resort as competitive shall file the following information:

     (a) The number of alternative providers of the service, or a comparable service, available in the relevant geographic market;

     (b) The percentage of the households or businesses, or both, in the relevant geographic market which have the service, or a comparable service, available from alternative providers; and

     (c) The percentage of the market share of the relevant geographic market held by alternative providers of the service and comparable services.

     2. To determine if a service may be classified as competitive, the Commission will consider the following factors:

     (a) Whether a comparable service is available;

     (b) Whether subscribers of the service to be classified as deregulated may reasonably obtain that service from a provider other than a regulated provider of the service;

     (c) The ability of the regulated small-scale provider of last resort to determine or control the price of the service;

     (d) The prices, terms, conditions and availability of similar competitive and alternative services;

     (e) The need for approval by the Commission of the price of the service to be classified as deregulated;

     (f) The ability of other providers of the service to enter the market to provide the service;

     (g) The likelihood that other providers of the service will enter the market;

     (h) The suitability of substituting a comparable service for the service to be classified as deregulated;

     (i) The share of the market for the service held by competitors providing alternative services;

     (j) The extent of the entry into the market by providers of alternative or competitive services;

     (k) The extent to which competition exists in the geographic area for which a certificate of public convenience and necessity is issued to a small-scale provider of last resort to provide the service;

     (l) Whether the service is reasonably necessary to the operations of a subscriber to the service; and

     (m) Any other factors considered to be relevant by the Commission.

     3. In making a determination, it is not necessary for the Commission to find in favor of a party on a majority of the factors set forth in subsection 2, except that the Commission will classify a service as competitive if:

     (a) The service, or a comparable service, is available from at least two alternative providers in the relevant geographic market;

     (b) The service, or a comparable service, is available from alternative providers to more than 50 percent of the households or businesses, or both, in the relevant geographic market; and

     (c) All alternative providers of the service and comparable services have a market share of the relevant geographic market of 15 percent or more if the relevant geographic market is an exchange or larger, or a market share of the relevant geographic market of 30 percent or more if the relevant geographic market is smaller than an exchange.

     4. For the purposes of this section, the Commission will determine a market share by using one of the following measurements, as deemed appropriate by the Commission:

     (a) The number of households or businesses, or both, in a relevant geographic market supplied with a service by a provider will be divided by the total number of households or businesses, or both, in the same relevant geographic market supplied with the service and all comparable services by all providers; or

     (b) The number of units of the service supplied to households or businesses, or both, in a relevant geographic market by a provider will be divided by the total number of units of the service and all comparable services supplied to households or businesses, or both, in the same relevant geographic market by all providers of these services.

     5. As used in this section:

     (a) “Alternative provider” means an entity that is not affiliated with or under the common control with another alternative provider or with a small-scale provider of last resort. As used in this paragraph, “affiliation” and “control” have the meaning ascribed to them in 47 C.F.R. Part 32.9000, as that section existed on October 25, 1995.

     (b) “Relevant geographic market” means the geographic area for which the classification of a service as competitive is sought pursuant to NAC 704.68062.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R136-07, 1-30-2008)