SB 226

Abstract

The Public Service Commission’s (“PSC”) authority over public utilities has been changed by recent decisions by the Federal Communications Commission (“FCC”) and legislation enacted in Delaware. This Act changes the statutory requirements for PSC public utilities to remove requirements that are no longer consistent with the FCC decisions and revised State laws but impose unnecessary burdens and costs on utilities and administrative costs to the PSC. This Act also removes an unnecessary administrative requirement regarding motor vehicle dealers. The specific changes are as follows: Section 1. Removes the requirement in § 4915 of Title 6 that an annual assessment be sent to motor vehicle dealers so that the PSC has the flexibility to send an annual assessment and notification to motor vehicle dealers only when the annual assessment is necessary to cover actual administrative costs. Current law requires that the annual assessment be sent even when the actual cost of administering this chapter is zero or de minimis. The PSC has had only 2 cases in the past 6 years and both were settled without significant cost. Section 2. Revises an internal reference to reflect a subsection redesignated by this Act. Section 3, Section 5, Sections 6 through 8. Amend §§ 215, 704, 705, 706, and 707 of Title 26 so that PSC approval is not needed for telecommunication filings for mergers, transfers of control, securities issuance, and financings. The telecommunications industry has continued to evolve and provide competitive services in Delaware. The FCC exercises regulatory authority over telecommunication service providers and recent statutory changes eliminated the PSC’s authority to regulate telecommunication customer service. Thus, applications for merger or transfer of control are typically permitted after there has been no PSC action within the required 30 day period. This section eliminates an unnecessary regulatory requirement and loses little oversight of competitive telecommunication service providers. Section 4. Eliminates PSC authority to regulate “rates changed” for basic cable services. On September 9, 2015, the FCC issued new rules declaring basic cable service to be competitive in all areas because fiber and satellite services offer a competitive alternative. To retain rate regulatory authority, states must petition the FCC showing a lack of competitive alternatives with their boundaries and Delaware has not filed a petition to do so. This change codifies the impact of that FCC ruling on PSC authority. Section 8. Amends § 707 of Title 26 to eliminate the annual rate filing by telecommunication providers. In 2013, HB 96 redefined basic service in Delaware to include an individual access line and residential local usage at a location where there is no alternative provider of telephone service available and switched access services. This revised definition eliminated all basic service in Delaware and the need for a telecommunication provider to file applications for rate changes, which had been calculated using the Gross Domestic Product Price Inflation Index. Under federal law, carriers are prohibited from increasing intrastate switched access rates, so there is no need for a State filing regarding a calculation related to switched access services. Thus, this change eliminates unnecessary regulatory filings. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.