KRS 278.5435: Modification of price regulation plan -- Permitted and prohibited

actions -- Jurisdiction of commission -- Exemptions.

(1) Notwithstanding any other provision of law, a telephone utility operating under

a price regulation plan pursuant to KRS 278.543 may, at any time after the

expiration of the applicable rate cap period set forth in that section, elect to

operate under the modifications to that plan contained in this section. The

election of this modification by the utility shall become effective upon the filing

of a notice with the commission. The notice shall identify all exchanges served

by the modifying utility which, as of January 1, 2015, contained fifteen

thousand (15,000) or more housing units based on United States Census data

current as of January 1, 2015.

(2) As used in this section:

(a) "Basic local exchange service" has the same meaning as in KRS

278.541;

(b) "Exchange" means a geographical area established by a telephone utility

for the administration of telephone service. An exchange may embrace a

city, town, or village and its environs or a portion thereof, and may consist

of one (1) or more central offices together with the associated plant used

in furnishing communication services in that area;

(c) "IP-enabled service," as used in the context of subsection (4)(c) of this

section, means any service, capability, functionality, or application

provided using Internet protocol, or any successor protocol that enables

an end user to send or receive voice communication, either separately or

in conjunction with data communication, video communication, or both, in

Internet protocol format, or any successor format;

(d) "Modifying utility" means a utility that makes an election to adopt the

modified price regulation plan set out in this section; and

(e) "Voice service" means a retail service provided through any technology or

service arrangement that includes the applicable functionalities described

in 47 C.F.R. sec. 54.101(a).

(3) In exchanges with fifteen thousand (15,000) or more housing units as of

January 1, 2015, based on United States Census data current as of January 1,

2015, and after September 1, 2017, in all exchanges:

(a) The commission shall not impose any requirements or otherwise regulate

the terms, conditions, rates, or availability of any retail service of the

modifying utility; and

(b) For exchanges with fifteen thousand (15,000) or more housing units, the

tariffs of a modifying utility which are in effect on June 24, 2015, shall

remain binding until such tariffs are withdrawn by the utility. For all

exchanges, the tariffs of a modifying utility which are in effect on

September 1, 2017, shall remain binding until they are withdrawn by the

utility.

(4) (a) The provisions of this subsection shall apply until September 1, 2017, to

all areas that are not described in subsection (3) of this section and in

which the modifying utility is operating as an incumbent local exchange

carrier, as defined in 47 U.S.C. sec. 251(h), as of June 24, 2015.

(b) In response to a request for service at a location to which the modifying

utility or any predecessor in interest has not installed landline facilities

necessary to provide basic local exchange service, the modifying utility

shall offer voice service either directly or through an affiliate. The

modifying utility is not obligated to offer basic local exchange service at

the location. The commission shall not impose any requirements or

otherwise regulate the terms, conditions, rates, or availability of the voice

service.

(c) 1. In response to all other requests for service, the modifying utility

may offer the requesting customer an IP-enabled service or a

wireless service either directly or through an affiliate.

2. If the requesting customer does not order an IP-enabled service or a

wireless service, the modifying utility, upon request by the customer,

shall provide basic local exchange service at that location. The

commission retains the jurisdiction to enforce this obligation.

3. If the requesting customer orders an IP-enabled service or a

wireless service, the modifying utility shall notify the customer in

writing that:

a. It is providing service using an IP-enabled service or a wireless

service provided by the modifying utility or an affiliate; and

b. The customer has sixty (60) days from service initiation to

notify the modifying utility in writing that the customer no longer

wants the service.

4. If the customer gives written notice within sixty (60) days that the

service is no longer wanted, the modifying utility, upon request by

the customer, shall provide basic local exchange service at that

location. The commission retains the jurisdiction to enforce this

obligation.

5. If the customer does not give written notice that the service is no

longer wanted within sixty (60) days, the modifying utility shall offer

voice service, either directly or through an affiliate, at the requested

location. The modifying utility shall not be obligated to offer basic

local exchange service at that location. The commission shall not

impose any requirements or otherwise regulate the terms,

conditions, rates, or availability of the voice service.

(5) Nothing in this section:

(a) Shall affect the obligations of a modifying utility under federal law,

including without limitation any obligation to maintain existing voice

service in compliance with rules and orders of the Federal

Communications Commission; or

(b) Diminishes or expands the commission's jurisdiction over wholesale

rights, duties, and obligations of carriers or over complaints regarding

anti-competitive practices under federal and state law, including

subsequent rules and orders of the Federal Communications Commission

that address carrier-to-carrier issues in and applicable to this state.

Unless otherwise directed by federal law or regulation, carrier-to-carrier

complaints within the commission's jurisdiction shall be resolved by final

commission order within one hundred eighty (180) days of the filing of the

complaint.