NAC704.7593. Application for approval to deregulate service.  


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  • Any person may apply to the Commission for approval to deregulate any service provided by a local exchange company. The service to be deregulated may involve an identifiable exchange or the entire area of service of the local exchange company. The application must:

         1. Fully identify and describe the service proposed to be deregulated including the:

         (a) Technical and common names of the service;

         (b) Number of the service;

         (c) Facilities and equipment used in providing the service;

         (d) Nature and extent of the market for the service such as the type of subscribers for that service, the source of revenues for that service, and the geographic regions served; and

         (e) Current price charged a subscriber for that service.

         2. Specify the extent to which the service is to be deregulated, including a list and description of the statutes, regulations, and tariffs from which the service is to be exempted.

         3. If it is for an exemption from tariff or total deregulation, discuss each factor listed in NAC 704.7595 and 704.7596 and:

         (a) Identify alternatives to that service which are available to subscribers;

         (b) List the suppliers of the alternatives; and

         (c) Describe the share of the market for that service held by the providers of the service and the providers of the alternative to that service.

         4. Specify a method of accounting for the service to be deregulated which satisfies the requirements of NAC 704.7594.

         5. If it is for an exemption from tariff, provide an analysis which demonstrates that the rate which the local exchange company will charge for the service will recover at least the long-run incremental costs associated with the service.

         6. If it is for an exemption from tariff or total deregulation, include a plan which sets forth the procedures which the company will use for the protection, use, sharing, and issuance of information regarding its competitors and customers and the services they request or receive. The procedures must include:

         (a) The terms and conditions governing access by the local exchange company and other persons to such information if it is used to promote or provide competitive services; and

         (b) The manner in which the local exchange company will obtain authorization from the customer to release such information.

         7. If it is for total deregulation, include information and documentation required pursuant to subsection 1 of NAC 704.7597 to be filed with an annual report.

         8. If it is for a service to be allowed flexibility of pricing or exemption from tariff, include information and documentation required pursuant to subsection 2 of NAC 704.7597 to be filed with an annual report.

         9. Include plans:

         (a) Which set forth safeguards to ensure that the local exchange company will not impede competition by its control of the local network.

         (b) To monitor and report the quality of service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 9-30-88; 1-11-91)