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PUBLIC UTILITY COMMISSION

 

DIVISION 34

SMALL TELECOMMUNICATIONS UTILITIES AND COOPERATIVES

860-034-0010

Scope of the Rules

(1) Upon request or its own motion, the Commission may waive any of the Division 034 rules for good cause shown. A request for waiver must be made in writing, unless otherwise allowed by the Commission.

(2) The rules contained in this division apply exclusively to telecommunications cooperatives and small telecommunications utilities as defined in section (3) of this rule.

(3) As used in this division:

(a) "Small telecommunications utility" means a telecommunications utility partially exempt from regulation under ORS 759.040;

(b) "Telecommunications utility" has the meaning given the term in ORS 759.005;

(c) "Telecommunications cooperative" or "Type 1 cooperative" means an unincorporated association or cooperative corporation that provides telecommunications services; and

(d) "Type 2 cooperative" means an unincorporated association or cooperative corporation that charges joint rates or provides through services as defined in OAR 860-034-0015.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045, 759.220 & 759.225
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 2-2004(Temp), f. & cert. ef. 1-9-04 thru 7-2-04; PUC 11-2004, f. & cert. ef. 6-2-04; PUC 6-2009, f. & cert. ef. 5-5-09; PUC 6-2011, f. & cert. ef. 9-14-11

860-034-0015

Through Service

"Through service" means an Oregon intrastate telecommunications service the provision of which involves the facilities, equipment, or services of two or more telecommunications utilities and/or cooperatives. Examples of "through services" may include, but are not limited to, intrastate toll/access service, extended area service, and E 9-1-1 service. Whether a service is a "through service" is determined on a case-by-case basis.

Stat. Auth.: ORS 183 & 759
Stats. Implemented: ORS 756.040 & 759.220
Hist.: PUC 3-1998, f. & cert. ef. 2-24-98, PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0295

General

860-034-0020

Definitions for OAR 860-034-0030 through 860-034-0290

As used in OAR 860-034-0030 through 860-034-0290:

(1) "Applicant" means a person who:

(a) Applies for service with a small telecommunications utility; or

(b) Reapplies for service at a new or existing location after service has been discontinued.

(2) "Customer" means a person who has applied for, been accepted, and is currently receiving service. Notwithstanding section (1) of this rule, a customer who voluntarily disconnects service and later requests service with the same small telecommunications utility at a new or existing location within 20 days after disconnection retains customer status.

(3) "Local exchange service" has the meaning given to "local exchange telecommunications service" in ORS 759.005 (2)(c).

(4) "OTAP" has the meaning given to "Oregon Telephone Assistance Program" in OAR chapter 860, division 033.

(5) "Registered dispute" means an unresolved issue between a customer or applicant and a small telecommunications utility that is under investigation by the Commission's Consumer Services Division but is not the subject of a formal complaint.

(6) "Regulated charges" means charges for services delivered in Oregon and subject to the jurisdiction and approval of the Commission.

(7) "Utility service" means a service which is subject to Commission jurisdiction including local exchange service and intraLATA toll service.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 17-1997(Temp), f. 12-11-97, cert. ef. 1-1-98 thru 6-29-98; PUC 5-1998, f. & cert. ef. 3-13-98; PUC 4-1999, f. & cert. ef. 8-12-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0030

Applications for Service from a Small Telecommunications Utility

(1) An application for telecommunications utility service must be made when:

(a) Service is requested by a person who has not previously been served by the small telecommunications utility; or

(b) Service has been involuntarily discontinued in accordance with these rules, and the person later seeks to have service restored.

(2) An application for telecommunications utility service may be requested when service has been voluntarily discontinued, and a request to restore service has not been made within 20 days.

(3) An application is a request for telecommunications utility service. The small telecommunications utility shall not accept an application for service until the applicant:

(a) Establishes credit as set forth in OAR 860-034-0140; or

(b) Pays a deposit or deposit installment to the small telecommunications utility.

(3) A small telecommunications utility may require an applicant to provide the following information when applying for service:

(a) The name of person(s) responsible for payment on the account;

(b) The name to be used to identify the account, if different than the actual name;

(c) The birth date of person(s) responsible for payment on the account;

(d) The social security number of person(s) responsible for payment on the account;

(e) A current valid Oregon driver license number of the person(s) responsible for payment on the account;

(f) The service address;

(g) The billing address, if different than service address; and

(h) Any available telephone numbers where the applicant can be reached night and day.

(4) In lieu of providing a valid social security number or current valid Oregon driver license number under section (3) of this rule, an applicant may provide:

(a) A valid state or federal identification containing name and photograph of the person(s) responsible for payment on the account;

(b) A combination of:

(A) An original or certified true copy of his or her birth certificate;

(B) A current identification from school or employer containing a photograph; and

(C) The name, address, and telephone number of a person who can verify the applicant's identity, such as a teacher, employer, or caseworker; or

(c) Other information deemed sufficient by the utility to establish an applicant's identification.

(5) If an applicant is denied service for failure to provide an acceptable form of identification, the applicant may pursue conflict resolution under the Commission's rules.

(6) Upon request, the small telecommunications utility shall protect the account from access by others through the use of a personalized password or other means acceptable to both the small telecommunications utility and the customer.

(7) A small telecommunications utility shall protect the identity of a customer at risk of domestic violence or other abuse. At its option, the small telecommunications utility shall provide the identity protection by allowing the customer to use a modified or alternative name for a directory listing or by providing, at no cost, a non-published listing in accordance with other applicable tariff provisions for the length of time the endangerment exists. A customer requesting a nonpublished listing under this section must provide:

(a) A copy of a court order that restrains another person from contact with the customer by reason of risk of domestic violence, as defined in ORS 135.230, or unwanted sexual contact, as defined in ORS 163.305, abuse, as defined by the Elderly and Disabled Person Abuse Prevention Act, ORS 124.005 et seq., or stalking, as defined by ORS 163.730 et seq.; and

(b) An affidavit, stating that the customer is financially unable to pay for the nonpublished listing.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-034-0040

Information for Utility Customers and Applicants

(1) Each small telecommunications utility shall, upon request, furnish each customer and applicant with such information as is reasonable to permit them to secure efficient service.

(2) Each small telecommunications utility shall keep on file and open for public inspection at its offices, complete rate schedules, contract forms, rules and regulations of the utility, and a copy of the Commission's rules and regulations.

(3) Each small telecommunications utility shall supply, upon request, a copy of the tariffs applicable to the type or types of service furnished to the customer by the utility.

(4) Upon application for new service, or upon subsequent request, the small telecommunications utility shall assist the customer or applicant in selecting the most advantageous rate to meet individual service requirements. The customer or applicant shall be responsible for making the final selection of a rate schedule.

(5) When service is initiated and not less than once each year thereafter, every small telecommunications utility shall give its residential customers a written summary of their rights and responsibilities. If service is initiated without a personal visit between the small telecommunications utility and the customer, the utility shall mail the summary to the customer no later than when the first bill statement is mailed. A small telecommunications utility satisfies the annual notification requirement by prominent publication of the information in a telephone directory distributed to its customers annually. The summary shall include the text of a summary prepared by the Commission's Consumer Services Division or prepared by the small telecommunications utility and approved by the Commission that describes:

(a) The customer's option to designate a third party to receive bills and notices and the availability of notices in languages other than English;

(b) Applicable financial assistance programs, such as the Oregon Telephone Assistance Program and Link-Up America;

(c) The availability of medical certificates;

(d) Special payment options. Late-payment charges, if any, shall be explained, along with the availability of any preferred billing date option;

(e) Procedures for conflict resolution, including how to register a dispute with the small telecommunications utility and with the Commission and the toll-free number of the Commission's Consumer Services Division;

(f) Listings of consumer organizations that participate in Commission proceedings, including addresses and telephone numbers, may be requested from the Commission's Consumer Services Division; and

(g) The Commission's telephone solicitation rules.

(6) When service is initiated, the small telecommunications utility shall inquire whether the customer would like to receive notices in a language other than English and will inform the customer of the type of notices and translations currently available. If the language chosen is not available, the small telecommunications utility will tell the customer the translated version does not yet exist, but that the customer's interest will be recorded for the Commission. Each small telecommunications utility shall retain a record of the number of requests for notices and summaries in non-English languages in a format that can be forwarded to the Commission immediately upon request. The reports shall specify the number of requests for each language.

(7) Notices approved by the Commission shall be posted in a conspicuous place in each small telecommunications utility office where credit matters are transacted, setting forth the rights and responsibilities of customers under these rules. The notices shall be printed in large boldface type and shall be written in language that is easy to understand.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 4-1999, f. & cert. ef. 8-12-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0050

Multilingual Notices

(1) A small telecommunications utility shall provide a multilingual disconnect notice when 5 percent or 500 customers, whichever is the lesser, have requested such a notice.

(2) Disconnect notices as required in section (1) of this rule shall contain the following information translated into the requested languages:

IMPORTANT NOTICE: Your telephone services will be shut off due to an unpaid balance on your account. You must act immediately to avoid shutoff. Important information about how you can avoid shutoff is printed in English in the enclosed notice. If you cannot understand English, please find someone to translate the notice. If translation assistance is unavailable, please contact (name) at (phone number) who will try to help you. Information on customer's rights and responsibilities printed in this language is also available by calling that number. YOU MUST ACT NOW TO AVOID SHUTOFF.

(3) The Commission may grant a waiver of the multilingual notice requirement under OAR 860-034-0010(1), for a period not to exceed two calendar years, if the small telecommunications utility shows that it Oregon customers would not benefit from such notice. The small telecommunications utility may request a waiver of the multilingual notice every two years.

(4) The Commission will translate a consumer's rights and responsibilities summary into the following non-English languages: Spanish, Vietnamese, Cambodian, Laotian, and Russian. The Commission will provide copies to a small telecommunications utility upon request.

(5) The small telecommunications utility shall record all requests and promptly mail the requested version of the summary to the consumer.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.030
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 14-1997, f. & cert. ef. 11-20-97; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 6-2011, f. & cert. ef. 9-14-11

860-034-0060

Dispute Resolution

(1) When a dispute occurs between a customer or applicant and a small telecommunications utility about any bill, charge, or service, the utility shall thoroughly investigate the matter and promptly report the results of its investigation to the customer or applicant. Each small telecommunications utility shall prepare a written record showing the name and address of the customer or applicant involved, the date and character of the dispute, and the disposition of the matter. The small telecommunications utility shall retain records of the dispute pursuant to OAR 860-034-0580.

(2) The small telecommunications utility shall inform the customer or applicant of the right to supervisory review of any dispute, including but not limited to, establishment of credit and termination of service. If a dispute is not resolved, the small telecommunications utility shall notify the customer or applicant of the Commission's dispute resolution procedure and its toll-free telephone number.

(3) A customer or applicant may request the Commission's assistance in resolving the dispute by contacting the Commission's Consumer Services Division. The Commission shall notify the small telecommunications utility upon receipt of such a request.

(4) The Commission's Consumer Services Division shall assist the complainant and the small telecommunications utility in an effort to reach an informal resolution of the dispute.

(5) If a registered dispute cannot be resolved informally, the Commission's Consumer Services Division shall advise the complainant of the right to file a formal written complaint with the Commission. The complaint shall state the facts of the dispute and the relief requested. The small telecommunications utility shall answer the complaint within 15 days of service of the complaint. The matter shall then be set for expedited hearing. A hearing may be held on less than ten days' notice when good cause is shown.

(6) Pending resolution of the dispute, the complainant's obligation to pay undisputed amounts continues.

(7) A customer or applicant who has a registered dispute or formal complaint pending with the Commission shall be entitled to continued or restored service provided:

(a) Service was not terminated for theft of service or failure to establish credit;

(b) A bona fide dispute exists in which the facts asserted by the customer or applicant entitle the customer or applicant to service;

(c) When termination is based on nonpayment, the customer or applicant makes adequate arrangement to avoid future loss to the small telecommunications utility, such as prepaying estimated monthly utility charges; and

(d) The customer or applicant diligently pursues conflict resolution under the Commission's rules.

(8) If the conditions in section (7) of this rule are not satisfied, the small telecommunications utility has no obligation to provide continued service. A small telecommunications utility discontinuing service because of a failure to meet the conditions of subsections (7)(c) or (7)(d) of this rule shall give the customer five-day notice served in the same manner as provided by OAR 860-034-0260 except the notice need only describe the defect in performance, the date and time after which utility service will terminate, and the toll-free number of the Commission's Consumer Services Division. In deciding whether the conditions are met, the small telecommunications utility shall consult with the Commission's Consumer Services Division. A customer or applicant who has filed a formal complaint, the small telecommunications utility, or the Commission's Consumer Services Division may ask the Commission for a hearing to decide if the conditions are met. Unless extraordinary circumstances exist, the hearing will be conducted by telephone conference within three business days from the date requested. Notice of hearing will be given to the customer, the small telecommunications utility, and the Commission's Consumer Services Division at least 12 hours before the date and time of the hearing. Notice is effective when given in person, by telephone, or in writing delivered to the party's last known address. Mailed notice is effective two days after deposit in the U.S. mail, excluding Sundays and holidays.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.500
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 8-1999, f. & cert. ef. 10-18-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 11-2003, f. & cert. ef. 7-3-03

860-034-0070

Designation of Third Party to Receive Notices

Each small telecommunications utility shall offer its customers the option to designate a third party to receive bills and notices set forth in these rules. When a small telecommunications utility receives such designation, it shall send bills and notices required under these rules to the representative, with duplicate copies of disconnect notices also served on the customer.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0080

Restrictions on Entering a Customer Residence

No employee of a small telecommunications utility shall enter the residence of a customer without proper authorization except in an emergency endangering life or property.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0090

Interruption of Utility Service

(1) Each small telecommunications utility shall keep a record of any interruption of service affecting its whole system, or a major section thereof, including a statement of the time, duration, and cause of interruption.

(2) Each small telecommunications utility shall make all reasonable efforts to prevent interruptions of service and when such interruptions occur, shall endeavor to reestablish service with the shortest possible delay consistent with the safety of its customers and the general public.

(3) Each small telecommunications utility shall make all reasonable efforts to notify every customer affected in advance of any scheduled work that will interrupt service, but such notice shall not be required in case of interruption due to emergency repairs or for repairs or maintenance work that results in an interruption of less than five minutes. In determining reasonable notice, the small telecommunications utility shall consider the length of the planned interruption, the type and number of customers affected, the potential impact of the interruption on customers, and other surrounding circumstances. Notice may be given in writing, either via US mail or a door hanger on the affected premises, or by contact with the customer or an adult at the residence by personal visit or by telephone.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-034-0095

Annual Fees Payable to the Commission by a Small Telecommunications Utility

(1) On statement forms prescribed by the Commission, each small telecommunications utility must provide the requested information for the subject year.

(2) Each small telecommunications utility must pay to the Commission:

(a) An annual fee of no less than $100. The annual fee is due on or before April 1 of the year after the calendar year on which the annual fee is based. The annual fee rate will not exceed 25 hundredths of one percent (0.25 percent) of the gross retail intrastate revenue during the calendar year on which the annual fee is based.

(b) A late statement fee in accordance with OAR 860-001-0050, if the Commission has not received the utility's statement form, completed in compliance with section (1) of this rule, on or before 5 p.m. Pacific Time on the fifth business day following the due date.

(c) A penalty fee for failure to pay the full amount when due, as required under ORS 756.350 and OAR 860-032-0008(1).

(d) A service fee in accordance with OAR 860-001-0050 for each payment returned for non-sufficient funds.

(e) All costs incurred by the Commission to collect a past-due annual fee from the utility.

(3) The annual fee payment must be received by the Commission no later than 5 p.m. Pacific Time on the due date. A payment may be by cash, money order, bank draft, sight draft, cashier's check, certified, or personal check. A payment made by check will be conditionally accepted until the check is cleared by the bank on which it is drawn.

(4) Each small telecommunications utility must:

(a) Collect the annual fee by charging an equitable amount to each retail customer, using apportionment methods that are consistently applied by the utility throughout Oregon; and

(b) Describe the amount of the apportioned charge upon each retail customer's bill.

(5) Each small telecommunications utility must:

(a) Maintain its records in sufficient detail to readily provide gross retail intrastate revenue from Oregon telecommunications services, as defined in OAR 860-032-0080;

(b) Follow the revenue allocation procedures in OAR 860-032-0090; and

(c) Make its revenue accounting records available to the Commission upon the Commission's request.

(6) For any year in which a small telecommunications utility's statement form was due, the Commission may audit the utility as the Commission deems necessary and practicable:

(a) The Commission's audit must begin no later than three years after the statement form's due date.

(b) If the Commission determines that the utility has underreported its subject revenues, the Commission may assess an additional annual fee, along with a penalty fee for failure to pay under ORS 756.350.

(c) If the Commission determines that the utility has overpaid its annual fee, the Commission may, at is discretion, recompense the utility with a refund or a credit against annual fees subsequently due.

(7) If the Commission receives a public record request for the confidential information required by this rule, the Commission may assert that, subject to the limitations of the Public Records Law, the materials are trade secrets and, therefore, exempt from disclosure.

Stat. Auth.: ORS 183, 192, 756 & 759
Stats. Implemented: ORS 756.310, 756.320 & 756.350
Hist.: PUC 13-1999, f. & cert. ef. 12-7-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 8-2003, f. & cert. ef. 4-28-03; PUC 20-2003, f. & cert. ef. 11-14-03; PUC 16-2004, f. & cert. ef. 12-1-04; PUC 18-2004, f. & cert. ef. 12-30-04

860-034-0097

Estimated Annual Fees Payable to the Commission

(1) For any year in which a small telecommunications utility fails to file a completed statement form, the Commission may determine a proposed annual fee based upon any information available to the Commission. The proposed annual fee must:

(a) Include a penalty fee for failure to pay as required by ORS 756.350;

(b) Include a late statement fee in accordance with OAR 860-001-0050; and

(c) Be made no later than three (3) years after the statement form's due date.

(2) The Commission must provide written notice of the proposed annual fee to the small telecommunications utility.

(3) Within 30 days after service of the notice of proposed annual fee, the small telecommunications utility may file a petition with the Commission for a hearing. In its petition, the utility must specify its reasons for disputing the proposed annual fee. The Commission may conduct a hearing on the petition under its rules governing hearings and proceedings.

(4) If the small telecommunications utility does not file a petition within the 30-day period, the proposed annual fee is and payable.

(5) During the 30-day period allowed for filing a petition, the small telecommunications utility may file its completed statement form and pay the annual fee, penalties, and late statement fee. The Commission will accept the statement form, fees, and penalties in accordance with the original due date for that year's statement form and payment.

Stat. Auth.: ORS 183, 192, 756 & 759
Stats. Implemented: ORS 756.040, 756.310, 756.320 & 756.350
Hist.: PUC 8-2003, f. & cert. ef. 4-28-03; PUC 20-2003, f. & cert. ef. 11-14-03; PUC 16-2004, f. & cert. ef. 12-1-04; PUC 18-2004, f. & cert. ef. 12-30-04

860-034-0100

Temporary Utility Service

Each small telecommunications utility may render temporary service to a customer and may require the customer to bear all the cost of installing and removing the service in excess of any salvage realized. The length of temporary service shall be specified in the applicable tariffs on file with the Commission.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0110

Due and Payable Period

(1) Each small telecommunications utility shall establish procedures to ensure that the period from the billing transmittal for all current charges, including payment of final bills, to the due date, is not less than 15 days.

(2) If the bill is delivered by US mail, the due and payable period begins the day after the US Postal Service postmark or the day after the date of postage metering.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 4-1999, f. & cert. ef. 8-12-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-034-0120

Late-Payment Charge

(1) A small telecommunications utility may apply a late-payment charge to customer accounts not paid in full each month, provided the utility has filed the late-payment charge in its rate schedule.

(2) The charge will be based on a monthly late-payment rate applied to overdue account balances at the time of preparing the subsequent month's bill for residential accounts or by the bill due date for all other accounts. The late-payment charge may not be applied to time-payment accounts that are current. The current late-payment rate and the conditions for its application to customer accounts must be specified on the utility bill.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1997, f. & cert. ef. 10-30-97; PUC 4-1999, f. & cert. ef. 8-12-99; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 6-2009, f. & cert. ef. 5-5-09

860-034-0130

Adjustment of Utility Bills

(1) When a small telecommunications utility has incorrectly billed a retail customer, the utility must take corrective action as follows:

(a) If the date of the error can be determined, the small telecommunications utility must issue a bill credit or refund for the over-charge or a corrected bill for the under-charge back to such date. If the date of the error cannot be determined, the small telecommunications utility must issue a refund or bill credit for the over-charge or rebill the under-charge for no more than six months’ usage.

(b) In no event may a small telecommunications utility issue a corrected bill or refund for more than three years of incorrectly billed charges.

(2) When a small telecommunications utility issues a bill to collect under-billed amounts, a customer may enter into a time-payment agreement as provided in OAR 860-034-0276. If the utility customer is already on a time-payment plan, the utility must offer to renegotiate the payment plan to include the under-billing error. If the customer and utility cannot agree upon payment terms, the Commission will establish terms and conditions to govern the customers’ obligation.

(3) When a small telecommunications utility requires payment for amounts previously under-billed, the utility must provide a written notice that explains:

(a) The circumstance and time period of the under-billing;

(b) The corrected bill amount and the amount of the necessary adjustment,

(c) The Commission’s consumer complaint process; and

(d) The right for a customer to enter into a time-payment agreement with the utility.

(4) The small telecommunications utility may waive rebilling or issuing a refund check when costs make such action uneconomical.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 4-1999, f. & cert. ef. 8-12-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 5-2014, f. & cert. ef. 6-26-14

860-034-0140

Establishing Credit for Residential Utility Service

(1) An applicant or customer may demonstrate satisfactory credit for new or continuing service by showing any of the following, provided that a deposit is not required under section (2) of this rule:

(a) Received 12 months of continuous telecommunications utility service during the preceding 24 months and the small telecommunications utility can verify, either by contacting the former utility or through an authorized letter provided by the applicant or customer, that the applicant or customer voluntarily terminated service and timely paid for all services rendered; or

(b) Proof of ability to pay by providing either:

(A) Proof of employment during the entire 12 months previous to the application of service for person(s) responsible for payment on the account and a work telephone number to enable the small telecommunications utility to verify employment; or

(B) A statement or other documentation from the income provider or an authorized representative, that the small telecommunications utility can verify, indicating that the applicant or customer receives a regular source of income.

(2) In addition to the methods of demonstrating satisfactory credit set forth in section (1) of this rule, a small telecommunications utility may choose to offer an applicant the option of demonstrating satisfactory credit by meeting minimum credit requirements approved by the Commission.

(3) An applicant or customer may be required to pay a deposit at the time of application for new or continued service when:

(a) The applicant or customer is unable to establish credit as defined in section (1) of this rule;

(b) The applicant or customer received the same type of utility service from it or any Oregon telecommunications utility or telecommunications cooperative, as defined in ORS 759.005, within the preceding 24 months and owed an account balance that was not paid in full when service was terminated. Subsection (2)(b) of this rule does not apply to a customer who registered a dispute with the Commission within 60 days after service was terminated and who paid all undisputed or adjudicated amounts; or

(c) The applicant or customer was previously terminated for theft of service by any Oregon telecommunications utility or telecommunications cooperative as defined in ORS 759.005, was found to have tampered with other telecommunications utility facilities, or was otherwise found to have diverted telecommunications utility service.

(4) In lieu of paying a deposit, an applicant or customer may provide the small telecommunications utility a written surety agreement from a responsible party to secure payment in an amount equal to two months' average usage. For purposes of section (3) of this rule, a responsible party is a customer with the same utility who meets one of the qualifying conditions outlined in section (1) of this rule. The surety agreement obligation will automatically terminate should the responsible party no longer meet the conditions set forth herein. In the event a responsible party is subsequently found not to qualify, the applicant or customer will be required to either pay a deposit or obtain a written surety agreement from another responsible party. The surety obligation ceases when the customer establishes good credit.

(5) Deposits for telecommunications service shall be based upon two months' average or estimated bills for usage of the applicable telecommunications utility's tariff and price-listed services. Each deposit shall be rounded to the nearest whole dollar. For telecommunications service, applicants eligible for Oregon Telephone Assistance Program (OTAP) funding and who voluntarily elect to receive toll-blocked service, no deposit may be charged. The small telecommunications utility shall make toll blocking available at no charge to all applicants identified in OAR 860-033-0030.

(6) A new or additional deposit, calculated as provided by sections (4) of this rule with the most recent information available, may be required from a customer as a condition of continued service when:

(a) The small telecommunications utility discovers that the customer gave false information to establish an account and/or credit status;

(b) The small telecommunications utility discovers that the customer has stolen utility service, has tampered with the meter or other utility facilities, or was otherwise found to have diverted utility service; or

(c) If service records for the customer indicates unbilled intraLATA toll activity under the small telecommunications utility's tariff and price list is greater than the basis of the prior deposit.

(7) Paying a deposit does not excuse a customer from complying with the small telecommunications utility's tariffs or other regulations on file with the Commission, such as the obligation to promptly pay bills.

(8) A small telecommunications utility may file a tariff that contains less stringent deposit requirements than those specified in this rule.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 1987
Stats. Implemented: ORS 759.045 & Ch. 290, OL 1987
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 17-1997(Temp), f. 12-11-97, cert. ef. 1-1-98 thru 6-29-98; PUC 5-1998, f. & cert. ef. 3-13-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 2-2004(Temp), f. & cert. ef. 1-9-04 thru 7-2-04; PUC 11-2004, f. & cert. ef. 6-2-04; PUC 16-2004, f. & cert. ef. 12-1-04

860-034-0150

Payment Arrangements for Deposit and Installation Charges for Residential Utility Service

(1) Time payments for deposits and nonrecurring charges shall be limited to charges for residential utility service and intraLATA toll. When a small telecommunications utility requires deposits and/or nonrecurring charges to establish or reestablish utility service from an applicant, the applicant shall pay the deposit and/or nonrecurring charges in four installments. The first installment is due immediately; the remaining shall be paid in three installments which shall be due 30, 60, and 90 days, respectively, after the date the payment agreement is executed. Except for last payment, installments shall be the greater of $20 or one-fourth of the deposit and/or nonrecurring charges. In communicating with an applicant to establish utility service or to require a deposit and/or nonrecurring charges, the small telecommunications utility shall inform the applicant of the availability of Link-Up America and Oregon Telephone Assistance Program benefits and inform the customer or applicant that details are available from the Commission.

(2) When a customer makes an installment payment or a deposit with a payment for utility service, the small telecommunications utility shall first apply the amount paid toward the amount due for deposit and/or nonrecurring charges.

(3) A customer who is required to pay an additional deposit shall pay one-fourth of the total deposit or $20, whichever is greater, within five days to the small telecommunications utility. The remainder of the deposit is due under the terms of section (1) of this rule. If the customer has an existing deposit installment agreement, the remaining installment payments will be adjusted to include the additional deposit; however, two installment payments cannot be required within the same 30-day period.

(4) When a customer enters into an installment agreement for payment of a deposit and/or nonrecurring charges under section (1) of this rule, the small telecommunications utility shall provide written notice explaining its deposit and nonrecurring charges requirements. The notice shall specify the date each installment payment shall be due and shall include a statement printed in bold-face type informing the customer that utility service will be disconnected if the small telecommunications utility does not receive the payment when due.

(5) If a customer fails to abide by the terms of an installment agreement, the small telecommunications utility may disconnect local exchange service after providing a written five-day notice. The notice shall contain the information set forth in OAR 860-034-0260(3)(a) through (e) and shall be served as required by OAR 860-034-0260(4) and (5). In lieu of permanent disconnection, the small telecommunications utility may curtail service pursuant to OAR 860-034-0260(7).

(6) When good cause exists, the small telecommunications utility may provide or the Commission may require, more liberal arrangements for payment of deposits and/or nonrecurring charges than those set forth in this rule. The small telecommunications utility shall keep a written record of the reasons for such action.

(7) If disconnection for nonpayment of a deposit and/or nonrecurring charges occurs, the customer disconnected shall pay the full amount of the deposit and/or nonrecurring charges, any applicable reconnection fee, late-payment fee, and past due amount before service is restored. A customer may continue with an existing medical certificate time-payment agreement by paying all past-due installments.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 1987
Stats. Implemented: ORS 759.045 & Ch. 290, OL 1987
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0160

Interest on Deposits for Residential and Nonresidential Utility Service

(1) Each year, the Commission shall establish an annual interest rate that must be paid on customer deposits. The Commission will base the rate upon consideration of the effective interest rate for new issues of one-year Treasury Bills issued during the last week of October, the interest rate on the most recent issuance of one-year Treasury Bills, or the effective interest rate for the average yield of Treasury Bills of the closest term issued during the last week of October. This interest rate, rounded to the nearest one-half of one percent, shall apply to deposits held during January 1 through December 31 of the subsequent year. The Commission will advise all small telecommunications utilities of the changes in the rate to be paid on customer deposits held as needed.

(2) Upon payment of a deposit, the small telecommunications utility shall provide the customer documentation showing the date, name of the applicant or customer, the service address, the amount of deposit, a statement that the deposit will accrue interest at the rate prescribed by the Commission, and an explanation of the conditions under which the deposit will be refunded.

(3) If the deposit is held beyond one year, accrued interest will be paid by a credit to the customer's account. If held less than one year, interest will be prorated. A small telecommunications utility shall keep a detailed record of each deposit received until the deposit is credited or refunded.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 1987
Stats. Implemented: ORS 759.045 & Ch. 290, OL 1987
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1997, f. & cert. ef. 10-30-97; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 16-2003, f. & cert. ef. 10-1-03; PUC 16-2004, f. & cert. ef. 12-1-04

860-034-0170

Refund of Deposits for Residential and Nonresidential Utility Service

(1) A small telecommunications utility shall promptly refund a customer's deposit with accrued interest when utility service is terminated, provided a refund due shall first be applied to any unpaid balance on the customer's account.

(2) A small telecommunications utility may continue holding a deposit until credit is satisfactorily established or reestablished. For purposes of this rule, credit shall be considered to be established or reestablished if one year after a deposit is made:

(a) The account is current;

(b) Not more than two five-day disconnection notices were issued to the customer during the previous 12 months; and

(c) The customer was not disconnected for nonpayment during the previous 12 months.

(3) After satisfactory credit has been established or reestablished, the deposit plus any accrued interest shall be promptly refunded or credited to the customer's account. A customer shall be entitled to a refund upon request.

(4) When the customer moves to a new address within the small telecommunications utility's service area, the deposit, plus accrued interest, will be transferred to the new account.

(5) Deposits plus accrued interest may be refunded or credited, in whole or in part, to the customer's account at any time earlier than prescribed in this rule, provided that procedures followed by the small telecommunications utility are nondiscriminatory.

(6) Unless otherwise specified by the customer, a small telecommunications utility shall mail deposit refunds to the customer's last known address. The small telecommunications utility shall promptly honor a valid claim for payment of refund if the request is received within one year of the date utility service is terminated. Funds held beyond one year will be disposed of in accordance with ORS 98.316.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 1987
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0180

Grounds for Disconnecting Utility Service

Utility service may be disconnected by a small telecommunications utility:

(1) When the applicant or customer fails to pay a deposit or make payments in accordance with the terms of a deposit payment arrangement.

(2) When the applicant or customer provides false identification to establish service, continue service, or verify identity.

(3) When the customer fails to pay Oregon tariff or price listed charges due for services rendered.

(4) When the customer fails to abide by the terms of a time payment agreement.

(5) When the customer requests the small telecommunications utility to disconnect service or close an account.

(6) When facilities provided are unsafe or do not comply with state and municipal codes governing service or the rules and regulations of the small telecommunications utility.

(7) When dangerous or emergency conditions exist at the service premises under OAR 860-034-0200.

(8) When there is evidence of diverting service or theft of service.

(9) When the Commission approves the disconnection of service.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 9-2009, f. & cert. ef. 8-25-09

860-034-0190

Voluntary Disconnection of Utility Service

Every customer who is about to vacate any premises supplied with utility service by the small telecommunications utility, or who for any reason wishes to have such service discontinued, shall give five days' notice in advance of specified date of discontinuance of service to the small telecommunications utility. Until the small telecommunications utility shall have such notice, the customer shall be held responsible for all utility service rendered.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0200

Emergency Disconnection of Utility Service

In emergencies endangering life or property, a small telecommunications utility may terminate utility service without following the procedures set forth in division 034. However, the small telecommunications utility shall immediately thereafter notify the Commission. In such cases, where the necessity for emergency termination was through no fault of the customer, there will be no charge made for restoration of utility service.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0210

Disconnection of Utility Service on Weekends and Holidays

Utility service shall not be disconnected for nonpayment on or the day prior to a weekend or a state or utility-recognized holiday

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 9-2001, f. & cert. ef. 3-21-01

860-034-0220

Accounts Not Related to Residential Utility Service

A small telecommunications utility may not deny or disconnect residential utility service due to the failure to pay for nonresidential utility service, or to meet obligations in connection with nonresidential utility service.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0230

Reconnection Fee for Utility Service

Where a utility service is disconnected pursuant to OAR 860-034-0180, the small telecommunications utility may charge the reconnection fee set forth in its tariff.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0240

Transfer Billings

(1) If a small telecommunications utility identifies a balance a customer owes the utility from the customer's prior account for Oregon utility service, the small telecommunications utility may transfer the amount to the customer's current account after giving the customer notice of the transfer, the amount due under the prior account, the period of time during which the balance was incurred, and the service address or telephone number under which the bill was incurred. The notice must also meet the provisions of OAR 860-034-0260(3)(d) and (e). If the bill is identified at the time a customer changes residences, the provisions of this rule apply. A small telecommunications utility may pursue disconnection for nonpayment of a customer's current utility service only in compliance with OAR 860-034-0260.

(2) A small telecommunications utility shall make more liberal payment arrangements for customers on medical certificates who cannot reasonably be expected to pay the outstanding balance in the time otherwise applicable under this rule.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 4-1999, f. & cert. ef. 8-12-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0250

Refusal of Utility Service

(1) Refusal of utility service by a small telecommunications utility:

(a) A small telecommunications utility may refuse to provide service to a customer or applicant until the utility receives full payment of any overdue amount of an Oregon tariffed or price-listed charge and any other like obligation related to a prior account except for residential utility service applicants who are eligible for OTAP.

(b) A small telecommunications utility may refuse to provide utility service to a residential customer or applicant who is eligible for OTAP until the utility receives full payment of any overdue amount relating to a prior account for tariffed local exchange and price-listed utility services, excluding any toll charges.

(2) A small telecommunications utility may refuse to provide utility service until the utility receives payment when all the following circumstances exist:

(a) An overdue balance has been incurred by a residential customer or applicant at a service address;

(b) A residential applicant for utility service resided at the service address described in subsection (2)(a) of this rule during the time the overdue balance was incurred; and

(c) The residential customer or applicant described in subsection (2)(a) of this rule will reside at the location to be served under the new application.

(3) Any small telecommunications utility shall refuse to provide utility service if a customer or applicant has not complied with state and city codes and regulations governing service and with the small telecommunications utility's rules and regulations.

(4) A small telecommunications utility shall not provide utility service or materially change service to a customer if, in the utility's best judgment, the desired service is likely to unfavorably affect service to other customers.

(5) A small telecommunications utility shall refuse to serve a customer or applicant if, in the best judgment of the utility, the facilities of the customer or applicant cannot provide safe and satisfactory utility service.

(6) When the small telecommunications utility refuses to provide utility service, the small telecommunications utility shall notify the customer or applicant of the reasons for refusal and of the Commission's complaint process.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 17-1997(Temp), f. 12-11-97, cert. ef. 1-1-98 thru 6-29-98; PUC 5-1998, f. & cert. ef. 3-13-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 22-2002, f. & cert. ef. 12-9-02

860-034-0260

Disconnection Procedures for Commercial and Residential Utility Customers

(1) This rule applies to the involuntary termination of all utility service provided by a small telecommunications utility.

(2) The small telecommunications utility must provide written notice to the customer at least five business days before disconnecting service except when the disconnection is made:

(a) At the request of the customer; or

(b) When the facilities provided are unsafe creating an emergency endangering life or property under OAR 860-021-0315.

(3) The notice must be printed in boldface type and must state language that is as clear and simple as possible:

(a) The reasons for the proposed disconnection;

(b) The earliest date for disconnection;

(c) The amount to be paid to avoid disconnection of utility services;

(d) An explanation of the Commission's complaint process and the Commission's toll-free number; and

(e) An explanation of the availability of an emergency medical certificate for local exchange residential service customers under OAR 860-034-0270.

(4) The small telecommunications utility may not send the notice before the due date for payment for the utility services billed.

(5) The small telecommunications utility must serve the notice of disconnection in person or send it by first-class mail to the last known addresses of the customer and the customer's designated representative. Notice is served on the date of personal delivery or, if delivery is by U S Mail, on the day after the U S Postal Service postmark or postage metering.

(6) If a premises visit is required to complete disconnection, the small telecommunications utility must make a good-faith effort to personally contact the customer or a resident at the service address to be disconnected. If the small telecommunications utility's attempt to make personal contact fails, the utility must leave a notice in a conspicuous place at the premises informing the customer that service has been disconnected.

(7) In lieu of permanent disconnection, a small telecommunications utility may temporarily curtail utility service by preventing the transmission of incoming telephone messages and/or outgoing toll messages while continuing to let the customer make outgoing local messages. Temporary curtailment of utility service, as defined in this section, shall be permitted only upon five days' written notice as set forth in section (3) of this rule. The notice shall state that permanent disconnection will follow within ten days unless the customer makes full payment of any overdue amount or any other obligation.

(8) Except for utility service provided by a small telecommunications utility to its customers served by an office incapable of restricting toll service, a small telecommunications utility shall not disconnect or deny local exchange service for an applicant's or customer's failure to pay for utility services not under the local exchange utility's tariff or price list. A small telecommunications utility may limit access to toll and special services using the "9XX" prefix or Numbering Plan Area (NPA) for the failure to pay for such services.

(9) A small telecommunications utility may not disconnect or deny local service to customers or applicants, who are eligible to receive OTAP, for failure to pay toll charges.

(10) A small telecommunications utility may request a limited waiver of the requirement of section (9) of this rule under OAR 860-034-0010(1), upon meeting all the following conditions:

(a) Showing the small telecommunications utility would incur substantial costs in complying with the requirement;

(b) Demonstrating the small telecommunications utility offers toll-blocking services to customers identified in section (9) of this rule; and

(c) Showing that telecommunications subscribership among low-income customers in its service area in Oregon is at least as high as the national subscribership level for low-income customers.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 1987
Stats. Implemented: ORS 759.045 & Ch. 290, OL 1987
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 17-1997(Temp), f. 12-11-97, cert. ef. 1-1-98 thru 6-29-98; PUC 5-1998, f. & cert. ef. 3-13-98; PUC 4-1999, f. & cert. ef. 8-12-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 9-2009, f. & cert. ef. 8-25-09; PUC 6-2011, f. & cert. ef. 9-14-11

860-034-0270

Emergency Medical Certificate for Residential Utility Service

(1) A small telecommunications utility shall not disconnect local exchange residential service if the customer submits certification from a qualified medical professional stating that disconnection would significantly endanger the physical health of the customer or a member of the customer's household. "Qualified medical professional" means a licensed physician, nurse-practitioner, or physician's assistant authorized to diagnose and treat the medical condition described without direct supervision by a physician.

(2) An oral certification must be confirmed in writing within 14 days by the qualified medical professional prescribing medical care. A written certification must include:

(a) The name of the person to whom the certificate applies and relationship to the customer;

(b) A complete description of the health conditions;

(c) An explanation of how the person's physical health will be significantly endangered by terminating the utility service;

(d) A statement indicating how long the health condition is expected to last;

(e) A statement specifying the particular type of utility service required (for example, access to medical facility for telemonitoring); and

(f) The signature of the qualified medical professional prescribing medical care.

(3) If an emergency medical certificate is not submitted in compliance with section (2) of this rule, the small telecommunications utility may disconnect local exchange service after providing five days' notice to the customer. The notice shall contain the information set forth in OAR 860-034-0260(3)(a) through (d) and shall be served as required by OAR 860-034-0260(4) and (5).

(4) An emergency medical certificate shall be valid only for the length of time the health endangerment is certified to exist, but no longer than six months without renewal.

(5) A customer submitting an emergency medical certificate:

(a) Remains responsible for payment of telecommunications services provided by the small telecommunications utility; and

(b) Must enter into a time payment agreement with the small telecommunications utility pursuant to OAR 860-034-0276 if the customer has an overdue balance. This time payment agreement must be entered into within 10 days after submission of the certificate.

(6) A small telecommunications utility may verify the accuracy of an emergency medical certificate. If the small telecommunications utility believes a customer does not qualify, or no longer qualifies for an emergency medical certificate, the utility may apply to the Commission for permission to disconnect utility service to the customer.

(7) After notice to the Commission, a small telecommunications utility may terminate local exchange residential service if the utility providing the service lacks the technical ability to terminate toll telecommunications service without also terminating local exchange service.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 1987
Stats. Implemented: ORS 759.045 & Ch. 290, OL 1987
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 17-1997(Temp), f. 12-11-97, cert. ef. 1-1-98 thru 6-29-98; PUC 5-1998, f. & cert. ef. 3-13-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 3-2006, f. & cert. ef. 2-27-06

860-034-0275

Termination of Local Exchange Residential Service for Telecommunications Customers at Significant Risk

(1) "At significant risk" means:

(a) At risk of domestic violence, as defined in ORS 135.230;

(b) At risk of unwanted sexual contact, as defined in ORS 163.305;

(c) A person with disabilities, as defined in ORS 124.005, who is at risk of abuse, as defined in ORS 124.005(1)(a), (1)(d), or (1)(e);

(d) An elderly person, as defined in ORS 124.005, who is at risk of abuse, as defined in ORS 124.005(1)(a), (1)(d), or (1)(e); or

(e) A victim of stalking, as described in ORS 163.732.

(2) To establish that termination of local exchange residential service would significantly endanger the customer, or a person in the household of the customer, the customer must give the small telecommunications utility:

(a) A copy of an order issued under ORS 30.866, 107.700 to 107.732, 124.005 to 124.040, or 163.738 that restrains another person from contact with the customer, or a person in the household of the customer, at significant risk; or

(b) A copy of any other court order that restrains another person from contact with the customer, or a person in the household of the customer, due to a significant risk; and

(c) An affidavit signed by the customer stating that termination would place the customer, or a person in the household of the customer, at significant risk. The affidavit must include the name of the person to whom the court order applies, the relationship of the person to the customer, and the expiration date of the order.

(3) A small telecommunications utility must establish and maintain procedures for receiving affidavits and orders from customers.

(4) A customer submitting an affidavit under section (2) of this rule:

(a) Remains responsible for payment of telecommunication services provided by the small telecommunications utility; and

(b) Must enter into a time payment agreement with the small telecommunications utility pursuant to OAR 860-034-0276 if the customer has an overdue balance. This time payment agreement must be made within 10 days after submission of the affidavit.

(5) If a customer who has submitted an affidavit and order fails to enter into or abide by the terms of a time payment agreement pursuant to OAR 860-034-0276, the small telecommunications utility may disconnect local exchange service after complying with all provisions of OAR 860-034-0260. Five days' notice of disconnection must also be provided to the Commission's Consumer Services Section.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: Ch. 290, OL 2005
Hist.: PUC 4-2005(Temp), f. 8-22-05, cert. ef. 9-1-05 thru 2-27-06; PUC 2-2006, f. & cert. ef. 2-27-06

860-034-0276

Time Payment Agreements for Small Telecommunications Utilities

(1) A time payment agreement must contain, at a minimum, the following terms:

(a) An initial customer down payment of $10 or 25 percent of the balance owing for tariffed or price-listed small telecommunications utility services on file with the Commission, whichever is greater;

(b) Full payment of the overdue balance within 90 days of the date of the agreement; and

(c) Customer agreement to keep subsequent bills current.

(2) The small telecommunications utility must send a letter to the customer confirming the terms of the time payment agreement.

(3) Payments must be made on a monthly basis. The small telecommunications utility cannot require more frequent payments unless agreed to by the customer. The customer cannot extend the time payment agreement beyond 90 days without the consent of the small telecommunications utility.

(4) The small telecommunications utility may not accelerate payments under a time payment agreement when the customer changes residences. The customer must pay tariff charges associated with the change in residence.

(5) The small telecommunications utility may terminate the customer's local exchange residential service pursuant to OAR 860-034-0260 if the customer refuses to enter into or fails to abide by the terms of the time payment agreement. The small telecommunications utility must provide five days' notice to the Commission's Consumer Services Section.

(6) Nothing in this rule prevents a small telecommunications utility and a customer from entering into a time payment agreement for other charges.

Stat. Auth.: ORS 183, 756, 759 & Ch. 290, OL 2005
Stats. Implemented: ORS 756.040, 757.750, 757.760, 757.755, Ch. 290, OL 1987 & Ch. 290, OL 2005
Hist.: PUC 3-2006, f. & cert. ef. 2-27-06

860-034-0280

Telephone Solicitation Notices by Small Telecommunications Utilities

Each small telecommunications utility shall notify its residential customers of the provisions of ORS 646.561, ORS 646.563, ORS 646.567 through 646.578, and ORS 646.608. The notice shall include a statement that a customer not wishing to be solicited may file a request, together with the required fees, with the telephone solicitation program administrator contracted by the State Attorney General. The notice shall include the address and the telephone number for the customer to contact the telephone solicitation program administrator. The notice shall be provided in the following manner and a copy shall be forwarded to the Commission:

(1) Annual inserts in the billing statements mailed to parties; or

(2) Conspicuous publication of the notice in the consumer information pages of local telephone directories.

Stat. Auth.: ORS 183, 646, 756 & 759
Stats. Implemented: ORS 646.578 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-2001, f. & cert. ef. 1-24-01; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0290

Customer Notification and Information Delivery Services for Small Telecommunications Utilities

(1) As used in this rule:

(a) "Information provider" means any person, company, or corporation that operates an information delivery service on a pay-per-call basis;

(b) "Information delivery service" means any telephone-recorded messages, interactive programs, or other information services that are provided for a charge to a caller through an exclusive telephone number prefix or service access code. When a preexisting written contract exists between the customer and the information provider, this definition does not apply.

(2) A small telecommunications utility providing billing services for information providers shall inform customers:

(a) Of the availability of blocking for information delivery services if and when it is technically available;

(b) That a customer's local and long distance service shall not be suspended or terminated for nonpayment of information deliver service charges;

(c) That any customer who suffers damage from a violation of ORS 646.608, 646.639, and 759.700 through 759.720 by an information provider has a cause of action against such information provider and a court may award the greater of three times the actual damages or $500, order an injunction or restitution and award attorney fees and court costs to a prevailing plaintiff;

(d) That when an information provider has failed to comply with any provision of ORS 646.608, 646.639, and 759.700 through 759.720 any obligation by a customer that may have arisen from dialing a pay-per-call telephone number is void and unenforceable;

(e) That any obligation that may have arisen from the dialing of a pay-per-call telephone number by an unemancipated child under 18 years of age; or

(f) For a person whose physician substantiates the following conditions, the obligation is void and unenforceable:

(A) The person has a mental or emotional disorder generally recognized in the medical or psychological community that makes the person incapable of rational judgments and comprehending the consequences of the persons' action; and

(B) The disorder was diagnosed before the obligation was incurred; and

(g) Upon written notification to the information provider or the billing agent for the information provider that a bill for information delivery services is void and unenforceable under subsections (2)(d), (2)(e), or (2)(f) of this rule, no further billing or collection activities shall be undertaken in regard to that obligation.

(3) The notice shall include text prepared by the Commission's Consumer Services Division or prepared by the small telecommunications utility and approved by the Commission. The notice shall be provided in the following manner:

(a) An annual insert in the billing statements mailed to customers or conspicuous publication of the notice in the consumer information pages of local telephone directories; and

(b) Including the notice in the letters setting out the rights and responsibilities of customers sent to all new customers.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 11-1995, f. & cert. ef. 11-27-95 (Order No 95-1217); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01

Utility Rates

860-034-0300

Tariffs of Small Telecommunications Utilities

(1) Small telecommunications utilities not subject to ORS 759.175 must, upon the Commission's request, provide copies of any schedules showing rates, tolls, and charges, including all rules and regulations that in any manner affect the rates charged or to be charged for any service.

(2) Small telecommunications utilities subject to ORS 759.175 must file tariffs in accordance with the following provisions:

(a) Form and style of tariffs:

(A) All tariffs must be in loose-leaf form so changes can be made by reprinting and inserting a single leaf;

(B) Each small telecommunications utility must designate the initial tariff as PUC Oregon No. 1, and thereafter designate successive tariffs with the next number in consecutive numerical order. Supplemental information not otherwise provided by the tariff must be inserted in the most appropriate location and denoted by the previous sheet numbers plus a letter, for example, 3A, 3B, etc. Revisions to tariffs must be denoted by 1st Revised Sheet No. 3, 2nd Revised Sheet No. 3, etc.;

(C) The title page should be uniform. Rates, rules, and regulations must be written only on one side of a sheet. If a single sheet is insufficient, two or more pages should be used. Blank forms will be furnished upon request;

(b) Size of tariffs and required:

(A) Tariffs and supplements thereto must be prepared using a readable font that, when printed, will fit on an 8-1/2 x 11 inch page; and

(B) Small telecommunications utilities must file with the Commission an original of each tariff, rate schedule, revision, or supplement. The utility must supplement the filing with an exact copy of the tariff in electronic form as required in OAR 860-001-0170. The advice letter accompanying the tariffs must bear the signature of the issuing officer or utility representative. The tariffs do not require a signature.

(c) Tariffs must explicitly state the rates and charges for each class of service rendered, designating the area or district to which they apply;

(d) The small telecommunications utility's rules and regulations that in any manner affect the rates charged or to be charged or that define the extent or character of the service to be given must be included with each tariff;

(e) Changes in tariffs may be made by filing an entirely new tariff or by filing revised sheets which must refer to the tariffs on file. Additions to the tariff on file may be made by filing additional sheets;

(f) Each small telecommunications utility filing tariffs or schedules changing existing tariffs or schedules must submit in the advice letter or other document the following information:

(A) A statement plainly indicating the increase, decrease, or other change thereby made in existing rates, charges, tolls, or rules and regulations;

(B) A statement setting forth the number of customers affected by the proposed change and the resulting change in annual revenue; and

(C) A detailed statement setting forth the reasons or grounds relied upon in support of the proposed change;

(g) All tariff changes must be made applicable with service rendered on and after the effective date of the changes, unless the Commission by order provides otherwise. As used in this rule, "service rendered" means units of toll calls connected, basic service provided, or likewise as the context requires;

(h) Small telecommunications utilities entering into special contracts with certain customers prescribing and providing rates, services, and practices not covered by or permitted in the general tariffs, schedules, and rules filed by such utilities are in legal effect tariffs and are subject to supervision, regulation, and control to the extent not exempted under ORS 759.040; and

(i) All special agreements designating service to be furnished at rates other than those shown in tariffs now on file in the Commission's office are rate schedules. A true and certified copy must be filed pursuant to requirements of this Division.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.175
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-034-0310

Announcement of Rate Increases by Small Telecommunications Utilities

(1) A small telecommunications utility that increases any rate contained in a tariff schedule must notify its affected customers at least 45 days before the proposed effective date of the increase. A copy of such notification must at the same time be provided to the Commission.

(2) The small telecommunications utility must notify its customers by:

(a) Inserting an announcement in the small telecommunications utility's regular billing to its customers; or

(b) Mailing an announcement to each customer.

(3) The announcement must contain the following information:

(a) The list of services subject to increase, current and proposed rates, and amount and percentage of increase for each service;

(b) The reasons for the proposed rate increase;

(c) The effective date of the proposed rate increase;

(d) The Commission's toll-free telephone number and address; and

(e) The following statement: "Customers may petition the Public Utility Commission of Oregon to investigate the rate increase. The Commission will investigate the rate increase if it receives petitions signed by customers (10 percent of customers or 500, whichever is the lesser), on or before (ten days before the proposed effective date). If the Commission does not receive sufficient petitions by (ten days before the proposed effective date), the proposed rates will become effective on (the proposed effective date) without Commission review. Petitions should be sent to the Commission's Consumer Services Division. The Company will provide a current copy of the local exchange directory and its service territory map within ten days of a request from any customer."

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-1999, f. & cert. ef. 10-18-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 11-2003, f. & cert. ef. 7-3-03; PUC 6-2009, f. & cert. ef. 5-5-09

860-034-0320

Notice to Interested Persons of Tariffs Filed Under ORS 759.175 by Small Telecommunications Utilities

(1) This rule applies to any tariff filed under ORS 759.175.

(2) Any person who requests of the Commission, in writing, to be notified of a small telecommunications utility's tariff filings covered under section (1) of this rule must be included on a notice list.

(3) The Commission must notify all persons on the notice list referred to in section (2) of this rule of any applicable tariff filing. The notice will be given within ten days of any tariff filing under section (1) of this rule that complies with OAR 860-034-0300.

(4) The Commission may periodically delete names of persons from the notice list who do not demonstrate a continued interest in receiving the notices set forth in section (2) of this rule. No person's name may be deleted from the list without 20 days' notice before deletion.

(5) The notice must include the following information:

(a) Name of the filing small telecommunications utility;

(b) Subject;

(c) Advice number;

(d) Filing date;

(e) Effective date;

(f) Customer classes affected, if readily ascertainable from the small telecommunications utility's advice letter; and

(g) Whether the tariff schedule is primarily related to price competition or a service alternative, if readily ascertainable from the small telecommunications utility's advice letter.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-034-0325

Requests to Abandon, Exempt from Regulation, or Price-List Regulated Telecommunications Services

A small telecommunications utility is subject to the requirements set forth in OARs 860-032-0020, 860-032-0023, 860-032-0025, and 860-032-0035.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.020, 759.036, 759.035, 759.045, 759.050, 759.190 & 759.195
Hist.: PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0330

Relating to City Privilege Taxes, Fees, and Other Assessments Imposed Upon a Small Telecommunications Utility or Type 2 Cooperative

(1) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a company, as defined in section (2) of this rule, by any city in Oregon for engaging in business within such city or for use and occupancy of city streets and public ways, whether applied to regulated revenues, net income, or other bases, shall be allowed as operating expenses of the company for rate-making purposes, subject to sections (2) through (4) of this rule.

(2) As used in this rule:

(a) "Company," as used in this rule, means a small telecommunications utility or Type 2 cooperative, as defined in OAR 860-034-0010;

(b) "Fees and other assessments" means business or occupation taxes or licenses; franchise or operating permit fees; sales, use, net income, gross receipts, and payroll taxes, levies, or charges; and other similar exactions imposed by cities, other than ad valorem taxes, upon revenues or income received from regulated telecommunications services by a company;

(c) "Local access revenues" means those revenues derived from exchange access services within the city, as defined in ORS 401.710, less related net uncollectibles;

(d) "Privilege taxes" means taxes levied and collected by cities from a company for use and occupancy of city streets, alleys, or highways, as provided under ORS 221.515;

(e) "Regulated revenues" means those revenues derived from regulated telecommunications services within the city less related net uncollectibles. Regulated revenues include, but are not limited to, local access revenues.

(3) Separate fees for street opening, installations, construction, and maintenance of fixtures or facilities to the extent such fees or charges are reasonably related to the city's costs for inspection, supervision, and regulation in the exercise of its police powers shall be allowed as operating expenses of a company for rate-making purposes. Such fees shall not be deducted in computing the percentage level set forth in section (4) of this rule.

(4) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a small telecommunications utility by a city, which does not exceed 4 percent of local access revenues, shall be allowed as operating expenses for rate-making purposes and shall not be itemized or billed separately. All privilege taxes and fees and other assessments in excess of 4 percent of local access revenues shall be charged pro rata to users of local access services within the city and the aggregate excess amount shall be separately itemized on customers' bills or billed separately.

(5) The aggregate amount of all privilege taxes and fees and other assessments imposed upon a Type 2 cooperative by a city, which does not exceed 4 percent of local access revenues, shall be allowed as operating expenses for rate-making purposes and shall not be itemized or billed separately. All privilege taxes and fees and other assessments in excess of 4 percent of local access revenues shall not be included in joint rates and rates for through services.

(6) The amount allowed as an operating expense may be described on customers' bills in a manner determined by the company.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 7-1998, f. & cert. ef. 4-8-98; PUC 17-2001, f. & cert. ef. 6-21-01; PUC 14-2003, f. & cert. ef. 7-24-03

860-034-0340

Relating to Local Government Fees, Taxes, and Other Assessments Imposed Upon a Small Telecommunications Utility or Type 2 Cooperative

(1) "Taxes," as used in this rule, means sales, use, net income, gross receipts, payroll, business or occupation taxes, levies, fees, or charges other than ad valorem taxes.

(2) For a Type 2 cooperative: If any county in Oregon, other than a city-county, should impose upon a Type 2 cooperative any taxes or license, franchise, or operating permit fees, the Type 2 cooperative may not collect such assessments from joint rates or rates for through services.

(3) For a small telecommunications utility:

(a) If any county in Oregon, other than a city-county, should impose upon a small telecommunications utility any new taxes or license, franchise, or operating permit fees, or increase any such taxes or fees, the small telecommunications utility required to pay such taxes or fees shall collect from its customers within the county imposing such taxes or fees the amount of the taxes or fees, or the amount of increase in such taxes or fees. However, if the taxes or fees cover the operations of a small telecommunications utility in only a portion of a county, then the affected utility shall recover the amount of the taxes or fees or increase in the amount thereof from customers in the portion of the county which is subject to the taxes or fees;

(b) The amount collected from each small telecommunications utility customer pursuant to section (3)(a) of this rule shall be separately stated and identified in all customer billings;

(c) This rule applies to new or increased taxes imposed on and after December 16, 1971, including new or increased taxes imposed retroactively after that date;

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045 & 759.500 - 759.675
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 7-1998, f. & cert. ef. 4-8-98; PUC 17-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04; PUC 6-2011, f. & cert. ef. 9-14-11

860-034-0350

Forced Conversion of Communication Facilities for Small Telecommunications Utilities and Type 2 Cooperatives

(1) As used in this rule:

(a) "Convert," "converting," or "conversion" means the removal of overhead communication facilities and the replacement of those facilities with underground communication facilities at the same or different locations.

(b) "Conversion cost" means the difference in cost between constructing an underground system and retaining the existing overhead system. This difference is equal to the cost of all necessary excavating, road crossings, trenching, backfilling, raceways, ducts, vaults, transformer pads, other devices peculiar to underground service, and "overhead retirement costs." However, if the conversion is required in conjunction with a public project which would necessitate the relocation of the company's facilities at the company's expense, "conversion costs" shall not include any "overhead retirement costs."

(c) "Communication facilities" means any works or improvements used or useful in providing communication service, including but not limited to poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances, and all related facilities required for the acceptance of communication services. However, "Communication facilities" excludes facilities used or intended to be used for the transmission of intelligence by microwave or radio, apparatus cabinets or outdoor public telephones; or facilities owned or used by or provided for a railroad or pipeline and located upon or above the right-of-way of the railroad or pipeline.

(d) "Company," as used in this rule, means a small telecommunications utility or Type 2 cooperative, as defined in OAR 860-034-0010.

(e) "Local government" includes cities; counties; authorities and agencies created pursuant to ORS Chapters 456 and 457; special districts of the type described in ORS 198.010 and 198.180; and all other political subdivisions of Oregon.

(f) "Overhead communication facilities" means communication facilities located above the surface of the ground.

(g) "Overhead retirement cost" means the original cost, less depreciation, less salvage value, plus removal costs, of existing overhead distribution facilities no longer used or useful by reason of the conversion.

(h) "Underground communication facilities" means communication facilities located below the surface of the ground exclusive of those facilities such as service terminals, pedestal terminals, splice closures, apparatus cabinets and similar facilities which normally are above the surface in areas where company facilities are underground in accordance with standard underground practices.

(2) This rule does not apply if the total conversion cost incurred by the company during one calendar year does not exceed five-one hundredths of 1 percent (.05 percent) of the company's annual revenues derived from customers residing within the boundaries of the local government.

(3) When a local government requires a company to convert communications facilities at the company's expense:

(a) A small telecommunications utility shall collect the conversion costs from customers located within the boundaries of the local government.

(b) A Type 2 cooperative may not collect the conversion costs from customer located outside the boundaries of the local government for purposes of joint rates and through services.

(4) The local government may direct the company to collect conversion costs from only a portion of the customers located within the boundaries of the local government.

(5) Conversion costs incurred by the small telecommunications utility shall be accumulated in a separate account in the small telecommunications utility's books. Interest shall accrue from the date the small telecommunications utility incurs the cost. The rate of such interest shall be equal to the effective cost of the senior security issue which most recently preceded the incurrence of the cost.

(6) The small telecommunications utility shall collect the conversion costs and interest over a reasonable period of time subject to approval by the Commission. However, the pay-back period shall not exceed the depreciable life of the new facilities. Collection shall begin as soon as practical after the end of the year in which the conversion costs are incurred.

(7) The conversion cost to be recovered from each customer of a small telecommunications utility shall be calculated by applying a uniform percentage to each customer's total monthly bill for service rendered within the boundaries of the local government. The amount collected shall be separately stated and identified on each bill.

(8) This rule applies to conversions upon which construction is commenced on or after August 13, 1984.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 10-2001, f. & cert. ef. 4-18-01

860-034-0380

Maintenance of Plant and Equipment by Small Telecommunications Utilities

Each small telecommunications utility shall have and maintain its entire plant and system in such condition that it will furnish safe, adequate, and reasonably continuous service. Each small telecommunications utility shall inspect its plant distribution system and facilities in such manner and with such frequency as may be needed to ensure a reasonably complete knowledge about their condition and adequacy at all times. The small telecommunications utility shall keep such records of the conditions found as the utility considers necessary to properly maintain its system, unless in special cases the Commission requires a more complete record.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 15-2001, f. & cert. ef. 6-21-01

Service Standards for Utilities

860-034-0390

Retail Telecommunications Service Standards for Small Telecommunications Utilities

Every small telecommunications utility must adhere to the following standards:

(1) Definitions.

(a) "Access Line" — A facility engineered with dialing capability to provide retail telecommunications service that connects a customer's service location to the Public Switched Telephone Network;

(b) "Average Busy Season Busy Hour" — The hour that has the highest average traffic for the three highest months, not necessarily consecutive, in a 12-month period. The busy hour traffic averaged across the busy season is termed the average busy season busy hour traffic;

(c) "Blocked Call" — A properly dialed call that fails to complete to its intended destination except for a normal busy (60 interruptions per minute);

(d) "Customer" — Any person, firm, partnership, corporation, municipality, cooperative, organization, governmental agency, or other legal entity that has applied for, been accepted, and is currently receiving local exchange telecommunications service;

(e) "Exchange" — Geographic area defined by maps filed with and approved by the Commission for the provision of local exchange telecommunications service;

(f) "Final Trunk Group" — A last-choice trunk group that receives overflow traffic and that may receive first-route traffic for which there is no alternative route;

(g) "Force Majeure" — Circumstances beyond the reasonable control of a small telecommunications utility, including but not limited to, delays caused by:

(A) A vendor in the delivery of equipment, where the small telecommunications utility has made a timely order of equipment;

(B) Local, state, federal, or tribal government authorities in approving easements or access to rights of way, where the small telecommunications utility has made a timely application for such approval;

(C) The customer, including but not limited to, the customer's construction project or lack of facilities, or failure to provide access to the customer's premises;

(D) Uncontrollable events, such as explosion, fire, floods, frozen ground, tornadoes, severe weather, epidemics, injunctions, wars, acts of terrorism, strikes or work stoppages, and negligent or willful misconduct by customers or third parties, including but not limited to, outages originating from introduction of a virus onto the provider's network;

(h) "Held Order for Lack of Facilities" — Request for access line service delayed beyond the initial commitment date due to lack of facilities. An access line service order includes an order for new service, transferred service, additional lines, or change of service;

(i) "Initial Commitment Date" — The initial date pledged by the small telecommunications utility to provide a service, facility, or repair action. This date is within the minimum time set forth in these rules or a date determined by good faith negotiations between the customer and the small telecommunications utility;

(j) "Network Interface" — The point of interconnection between the small telecommunications utility provider's communications facilities and customer terminal equipment, protective apparatus, or wiring at a customer's premises. The network interface must be located on the customer's side of the small telecommunications utility's protector;

(k) "Retail Telecommunications Service" — A telecommunications service provided for a fee to customers. Retail telecommunications service does not include a service provided by a small telecommunications utility to another telecommunications utility or competitive telecommunications provider, unless the telecommunications utility or competitive telecommunications provider receiving the service is the end user of the service;

(l) "Tariff" — A schedule showing rates, tolls, and charges that the small telecommunications utility has established for a retail service;

(m) "Trouble Report" — A report of a malfunction that affects the functionality and reliability of retail telecommunications service on existing access lines, switching equipment, circuits, or features made up to and including the network interface, to a small telecommunications utility by or on behalf of that small telecommunications utility's customer;

(n) "Wire Center" — A facility where local telephone subscribers' access lines converge and are connected to switching equipment that provides access to the Public Switched Telephone Network, including remote switching units and host switching units. A wire center does not include collocation arrangements in a connecting small telecommunications utility's wire center or broadband hubs that have no switching equipment.

(2) Measurement and Reporting Requirements. A small telecommunications utility that maintains 1,000 or more access lines on a statewide basis must take the measurements required by this rule and report them to the Commission as specified. Reported measurements must be reported to the first significant digit (i.e., one number should be reported to the right of the decimal point). A telecommunications utility that maintains fewer than 1,000 access lines on a statewide basis need not take the required measurements and file the required reports unless ordered to do so by the Commission. The service quality objective service levels set forth in sections 4 through 8 of this rule apply only to normal operating conditions and do not establish a level of performance to be achieved during force majeure events.

(3) Additional Reporting Requirements. The Commission may require a small telecommunications utility to submit additional reports on any item covered by this rule.

(4) Provisioning and Held Orders for Lack of Facilities. The representative of the small telecommunications utility must give a retail customer an initial commitment date of not more than six business days after a request for access line service, unless a later date is determined through good faith negotiations between the customer and the small telecommunications utility. The small telecommunications utility may change the initial commitment date only if requested by the customer. When establishing the initial commitment date, the small telecommunications utility may take into account the actual time required for the customer to meet prerequisites; e.g., line extension charges or trench and conduit requirements. If a request for service becomes a held order for lack of facilities, the serving small telecommunications utility must, within five business days, send or otherwise provide the customer a written commitment to fill the order.

(a) Measurement:

(A) Commitments Met — A small telecommunications utility must calculate the monthly percentage of commitments met for service, based on the initial commitment date, across its Oregon service territory. Commitments missed for reasons solely attributed to customers, another telecommunications utility or competitive telecommunications provider may be excluded from the calculation of the "commitments met" results;

(B) Held Orders for Lack of Facilities — A small telecommunications utility must determine the total monthly number of held orders, due to lack of facilities, not completed by the initial commitment date during the reporting month and the number of primary (initial access line) held orders, due to lack of facilities, over 30 days past the initial commitment date.

(b) Objective Service Level:

(A) Commitments Met — Each small telecommunications utility must meet at least 90 percent of its commitments for service.

(B) Held Orders:

(i) The number of held orders for the lack of facilities for each small telecommunications utility must not exceed the greater of two per wire center per month averaged over the small telecommunications utility's Oregon service territory, or five held orders for lack of facilities per 1,000 inward orders; and

(ii) The total number of primary held orders for lack of facilities in excess of 30 days past the initial commitment date must not exceed 10 percent of the total monthly held orders for lack of facilities within the small telecommunications utility's Oregon service territory.

(c) Reporting Requirement: Each small telecommunications utility must report monthly to the Commission the percentage of commitments met for service, total number of held orders for lack of facilities, and the total number of primary held orders for lack of facilities over 30 days past the initial commitment date.

(d) Retention Requirement: Each small telecommunications utility must maintain records about held orders for lack of facilities for one year. The record must explain why each order is held and the initial commitment date.

(5) Trouble Reports. Each small telecommunications utility must maintain an accurate record of all reports of malfunction made by its customers.

(a) Measurement: A small telecommunications utility must determine the number of customer trouble reports that were received during the month. The small telecommunications utility must relate the count to the total working access lines within a reporting wire center. A small telecommunications utility need not report those trouble reports that were caused by circumstances beyond its control. The approved trouble report exclusions are:

(A) Cable Cuts: A small telecommunications utility may take an exclusion if the "buried cable location" (locate) was either not requested or was requested and was accurate. If a small telecommunications utility or a utility's contractor caused the cut, the exclusion can only be used if the locate was accurate and all general industry practices were followed;

(B) Internet Service Provider (ISP) Blockage: If an ISP does not have enough access trunks to handle peak traffic;

(C) Modem Speed Complaints: An exclusion may be taken if the copper cable loop is tested at the subscriber location and the objective service levels in section 10 of this rule were met;

(D) No Trouble Found: Where no trouble is found, one exemption may be taken. If a repeat report of the same trouble is received within a 30-day period, the repeat report and subsequent reports must be counted;

(E) New Feature or Service: Trouble reports related to a customer's unfamiliarity with the use or operation of a new (within 30 days) feature or service;

(F) No Access: An exclusion may be taken if a repair appointment was kept and the copper based access line at the nearest accessible terminal met the objective service levels in section 10 of this rule. If a repeat trouble report is received within the following 30-day period, the repeat report and subsequent reports must be counted;

(G) Subsequent Tickets/Same Trouble/Same Access Line: Only one trouble report for a specific complaint for the same access line should be counted within a 48-hour period. All repeat trouble reports after the 48-hour period must be counted;

(H) Non-Regulated or Deregulated Equipment: Trouble associated with such equipment should not be counted;

(I) Trouble with Other Telecommunications Utilities or Competitive Telecommunications Providers: A trouble report caused solely by another telecommunications utility or competitive telecommunications provider;

(J) Lightning Strikes: Trouble reports received for damage caused by lightning strikes can be excluded if all accepted grounding, bonding, and shielding practices were followed by the small telecommunications utility at the damaged location; and

(K) Other exclusions: As approved by the Commission.

(b) Objective Service Level: A small telecommunications utility must maintain service so that the monthly trouble report rate, after approved trouble report exclusions, does not exceed:

(A) For wire centers with more than 1,000 access lines: two per 100 working access lines per wire center more than three times during a sliding 12-month period.

(B) For wire centers with 1,000 or less access lines: three per 100 working access lines per wire center more than three times during a sliding 12-month period.

(c) Reporting Requirement: Each small telecommunications utility must report monthly to the Commission:

(A) The trouble report rate by wire center;

(B) The reason(s) a wire center meeting the standard (did not exceed the trouble report rate threshold for more than three of the last 12 months) exceeded a trouble report rate of 3.0 per 100 working access lines during the reporting month;

(C) The reason(s) a wire center not meeting the standard, after the exclusion adjustment, exceeded the trouble report rate threshold per 100 access lines during the reporting month; and

(D) The access line count for each wire center.

(d) Retention Requirement: Each small telecommunications utility must maintain a record of reported trouble in such a manner that it can be forwarded to the Commission upon the Commission's request. The small telecommunications utility must keep all records for a period of one year. The record of reported trouble must contain as a minimum the:

(A) Telephone number;

(B) Date and time received;

(C) Time cleared;

(D) Type of trouble reported;

(E) Location of trouble; and

(F) Whether or not the present trouble was within 30 days of a previous trouble report.

(6) Repair Clearing Time. This standard establishes the clearing time for all trouble reports from the time the customer reports the trouble to the small telecommunications utility until the trouble is resolved. The small telecommunications utility must provide each customer making a network trouble report with a commitment time when the small telecommunications utility will repair or resolve the problem.

(a) Measurement: The small telecommunications utility must calculate the percentage of trouble reports cleared within 48 hours of receiving a report for each repair center. Alternatively, the small telecommunications utility may use the following weekend exception to calculate the percentage for trouble reports cleared for those reports that are received between 12 pm on Friday until 5 pm on Sunday.

(A) The trouble reports cleared must be calculated for reports received between 12 pm Friday and 5 pm Saturday and cleared by 5 pm the following Monday for each repair center.

(B) The trouble reports cleared must be calculated for reports received between 5 pm Saturday and 5 pm Sunday and cleared by 5 pm the following Tuesday for each repair center.

Alternative weekend repair calculations must be aggregated into the calculation for the percentage of trouble reports cleared within 48 hours.

(b) Objective Service Level: A small telecommunications utility must monthly clear at least 90 percent of all trouble reports within 48 hours of receiving a report for each repair center. Alternatively for those reports that are received between 12 pm Friday and 5 pm on Sunday, the small telecommunications utility may use the following weekend exception to calculate the percentage for trouble report cleared:

(A) The small telecommunications utility must clear 90 percent of all trouble reports received between 12 pm Friday and 5 pm Saturday by 5 pm the following Monday for each repair center.

(B) The small telecommunications utility must clear 90 percent of all trouble reports received between 5 pm Saturday and 5 pm Sunday by 5 pm the following Tuesday for each repair center.

(c) Reporting Requirement: Each small telecommunications utility must report monthly to the Commission the percentage of trouble reports cleared within 48 hours by each repair center, with optional adjustments allowed for weekend repair exceptions described in (b). A small telecommunications utility must use its best efforts to complete out-of-service restorations for business customers. In addition, a small telecommunications utility must use its best efforts to complete out-of-service restorations for residential customers who have identified either a medical necessity or no access to an alternative means of voice or E-911 communications.

(d) A small telecommunications utility must indicate in its report if it opts to use the alternative weekend exception period reporting.

(e) Retention Requirement: None.

(7) Blocked Calls. A small telecommunications utility must engineer and maintain all intraoffice, interoffice, and access trunking and associated switching components to allow completion of calls made during the average busy season busy hour without encountering blockage or equipment irregularities in excess of levels listed in subsection (7)(b) of this rule.

(a) Measurement:

(A) A small telecommunications utility must collect traffic data; i.e., peg counts and usage data generated by individual components of equipment or by the wire center as a whole, and calculate blockage levels of the interoffice final trunk groups.

(B) System blockage is determined by special testing at the wire center. Commission Staff or a small telecommunications utility technician will place test calls to a predetermined test number, and the total number of attempted calls and the number of completed calls will be counted. The percentage of calls completed must be calculated.

(b) Objective Service Level:

(A) A small telecommunications utility must maintain interoffice final trunk groups to allow 99 percent completion of calls during the average busy season busy hour without blockage (P.01 grade of service); and

(B) A small telecommunications utility must maintain its switch operation so that 99 percent of the calls do not experience blockage during the normal busy hour.

(C) When a small telecommunications utility fails to maintain the interoffice final trunk group P.01 grade of service for four or more consecutive months, it will be considered out-of-standard until the condition is resolved. A single repeat blockage within two months of restoring the P.01 grade of service will be considered a continuation of the original blockage.

(c) Reporting Requirement: Each small telecommunications utility must report monthly to the Commission:

(A) Local and extended area service (EAS) final trunk groups that do not meet the objective service level for trunk group blockage, measured from each of its switches, regardless of the ownership of the terminating switch;

(B) Its tandem switch final trunk group blockages associated with EAS traffic;

(C) Any known cause for the blockage and actions to bring the trunks into standard; and

(D) Identity of the telecommunications utility or competitive telecommunications provider, if other than the reporting small telecommunications utility, responsible for maintaining those final trunk groups not meeting the standard.

(d) Retention Requirement: Each small telecommunications utility must maintain records for one year.

(8) Access to Small Telecommunications Utility Representatives. Small telecommunications utilities are not required to measure or report repair center and sales office access times to the Commission.

(9) Interruption of Service Notification. A small telecommunications utility must report significant outages that affect customer service. These interruptions could be caused by switch outage, electronic outage, cable cut, or construction.

(a) Measurement: A small telecommunications utility must notify the Commission when an interruption occurs that exceeds any of the following thresholds:

(A) Cable cuts, excluding service wires and wires placed in lieu of cable, or electronic outages lasting longer than 30 minutes and affecting 50 percent or more of in-service lines.

(B) Toll or Extended Area Service isolation lasting longer than 30 minutes and affecting 50 percent or more of in-service lines.

(C) Isolation of a central office (host or remote) from the E 9-1-1 emergency dialing code or isolation of a Public Safety Answering Position (PSAP).

(D) Isolation of a wire center for more than 15 minutes.

(E) Outage of the business office or repair center access system lasting longer than 15 minutes in those instances where the traffic cannot be re-routed to a different center.

(b) Objective Service Level: Not applicable.

(c) Reporting Requirement: A small telecommunications utility must report service interruptions to the Commission engineering staff by telephone, by facsimile, by electronic mail, or personally within two hours during normal work hours of the business day after the company becomes aware of such interruption of service. Interim reports will be given to the Commission as significant information changes (e.g., estimated time to restore, estimated impact to customers, cause of the interruption, etc.) until it is reported that the affected service is restored.

(d) Retention Requirement: None.

(10) Customer Access Line Testing. All customer access lines must be designed, installed, and maintained to meet the levels in subsection (b) of this section.

(a) Measurement: Each small telecommunications utility must make all loop parameter measurements at the network interface, or as close as access allows.

(b) Objective Service Level: Each access line must meet the following levels:

(A) Loop Current: The serving wire center loop current, when terminated into a 400-ohm load, must be at least 20 milliamperes;

(B) Loop Loss: The maximum loop loss, as measured with a 1004-hertz tone from the serving wire center, must not exceed 8.5 decibels (dB);

(C) Metallic Noise: The maximum metallic noise level, as measured on a quiet line from the serving wire center, must not exceed 20 decibels above referenced noise level — C message weighting (dBrnC); and

(D) Power Influence: As a goal, power influence, as measured on a quiet line from the serving wire center, must not exceed 80 dBrnC.

(c) Reporting Requirement: A small telecommunications utility must report measurement readings as directed by the Commission.

(d) Retention Requirement: None.

(11) Customer Access Lines and Wire Center Switching Equipment. All combinations of access lines and wire center switching equipment must be capable of accepting and correctly processing at least the following network control signals from the customer premises equipment. The wire center must provide dial tone and maintain an actual measured loss between interoffice and access trunk groups.

(a) Measurement: Each small telecommunications utility must make measurements at or to the serving wire center;

(b) Objective Service Level:

(A) Dial Tone Speed. Ninety-eight percent of originating average busy hour call attempts must receive dial tone within three seconds; and

(B) A small telecommunications utility must maintain all interoffice and access trunk groups so that the actual measured loss (AML) in no more than 30 percent of the trunks deviates from the expected measured loss (EML) by more than 0.7 dB and no more than 4.5 percent of the trunks deviates from EML by more than 1.7 dB.

(c) Reporting Requirement: None.

(d) Retention Requirement: None.

(12) Special Service Access Lines. All special service access lines must meet the performance requirements specified in applicable small telecommunications utility tariffs or contracts.

(13) Small Telecommunications Utility Interconnectivity. A small telecommunications utility connected to the facilities of another telecommunications utility or competitive telecommunications provider must operate its system in a manner that will not impede either company's ability to meet required standards of service. A small telecommunications utility must report interconnection operational problems promptly to the Commission.

(14) Remedies for Violation of This Standard.

(a) If a small telecommunications utility subject to this rule fails to meet a minimum service quality standard, the Commission must require the small telecommunications utility to submit a plan for improving performance as provided in ORS 759.450(5). If a small telecommunications utility does not meet the goals of its improvement plan within six months, or if the plan is disapproved by the Commission, the Commission may assess penalties in accordance with ORS 759.450(5) through (7).

(b) In addition to the remedy provided under ORS 759.450(5), if the Commission believes that a small telecommunications utility subject to this rule has violated one or more of its service standards, the Commission must give the small telecommunications utility notice and an opportunity to request a hearing. If the Commission finds a violation has occurred, the Commission may require the small telecommunications utility to provide the following relief to the affected customers:

(A) An alternative means of telecommunications service for violations of paragraph (4)(b)(B) of this rule;

(B) Customer billing credits equal to the associated non-recurring and recurring charges of the small telecommunications utility for the affected service for the period of the violation; and

(C) Other relief authorized by Oregon law.

(15)(a) If the Commission determines that effective competition exists in one or more exchange(s), it may exempt all telecommunications utilities or competitive telecommunications providers providing telecommunications services in the exchange(s) from the requirements of this rule, in whole or in part. In making this determination, the Commission will consider:

(A) The extent to which the service is available from alternative providers in the relevant exchange(s);

(B) The extent to which the services of alternative providers are functionally equivalent or substitutable at comparable rates, terms, and conditions;

(C) Existing barriers to market entry;

(D) Market share and concentration;

(E) Number of suppliers;

(F) Price to cost ratios;

(G) Demand side substitutability (e.g., customer perceptions of competitors as viable alternatives); and

(H) Any other factors deemed relevant by the Commission.

(b) When a small telecommunications utility petitions the Commission for exemption under this provision, the Commission must provide notice of the petition to all relevant telecommunications utilities and competitive telecommunications providers providing the applicable service(s) in the exchange(s) in question. The Commission will provide such notified small telecommunications utilities and competitive telecommunications providers an opportunity to submit comments in response to the petition. The comments may include requests that, following the Commission's analysis outlined above in paragraphs (15)(a)(A) through (H), the commenting telecommunications utilities and competitive telecommunications providers be exempt from these rules for the applicable service(s) in the relevant exchange(s).

(c) The Commission may grant a small telecommunications utility's petition for an exemption from service quality reporting requirements if the small telecommunications utility meets all service quality objective service levels set forth in sections (4) through (8) of this rule for the 12 months prior to the month in which the petition is filed.

[Publications: Publications referenced are available from the agency]

Stat. Auth.: ORS 183 & 756
Stats. Implemented: : ORS 759.035, 759.050 & 759.240, 759.450
Hist.: PUC 164, f. 4-18-74, ef. 5-11-74 (Order No. 74-307); PUC 23-1985, f. & ef. 12-11-85 (Order No. 85-1171);PUC 4-1997, f. & cert. ef. 1-7-97; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 13-2000, f. & cert. ef. 6-9-00; PUC 13-2001, f. & cert. ef. 5-25-01; PUC 7-2002, f. & cert. ef. 2-26-02; PUC 10-2005, f. & cert. ef. 12-27-05; PUC 6-2011, f. & cert. ef. 9-14-11; PUC 2-2014, f. & cert. ef. 1-22-14

Finance, Accounting, and Annual Reports for Utilities

860-034-0392

Accounting for Directors' Fees by Small Telecommunications Utilities

Directors' fees paid by a small telecommunications utility to members of its board of directors, who are also paid as officers of the utility, shall not be recognized as a charge to operating expenses in Oregon.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0500; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0393

Uniform System of Accounts for Small Telecommunications Utilities

(1) The Uniform System of Accounts for Telecommunications Companies, Part 32, adopted by the Federal Communications Commission (FCC) on February 6, 2002, is hereby adopted and prescribed for all Type 2 cooperatives utilities except as modified for intrastate purposes in sections (2) through (5) of this rule.

(2) A Type 2 cooperative may follow Class B accounting except when Class A accounting is needed to complete intrastate depreciation and jurisdictional separation studies, to provide the details requested in annual reports under OAR 860-034-0750, and to comply with other Oregon rules and statutes.

(3) The allocation rules in Part 32, Section 32.27, are replaced by OAR 860-034-0740(3).

(4) For construction work in progress and property held for future use, each Type 2 cooperative shall maintain subsidiary records consistent with ORS 759.285.

(5) Each Type 2 telecommunications cooperative shall maintain subsidiary records sufficient to identify the following universal service fund collection, revenues, and expenses:

(a) [Reserved].

(b) Federal universal service fund collection (Account 5081).

(c) Federal universal service fund contribution (Account 6540).

(d) State universal service fund collection and contribution (Account 4010).

(e) Interstate and intrastate switched access revenue (Account 5082).

(f) Interstate and intrastate special access revenue (Account 5083).

(g) [Reserved].

(h) Distributions from the federal USF and the Oregon USF.

(i) Depreciation expenses related to telecommunications plant in service, depreciation expense related to property held for future use, and amortization expense.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 6-1998, f. & cert. ef. 3-13-98; PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0510; PUC 3-2000, f. & cert. ef. 2-9-00; PUC 9-2000, f. & cert. ef. 5-26-00; PUC 16-2000, f. & cert. ef. 9-12-00; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 14-2002, f. & cert. ef. 3-26-02; PUC 8-2010, f. & cert. ef. 12-20-10; PUC 3-2013, f. & cert. ef. 5-17-13

860-034-0394

Allocation of Costs by Small Telecommunications Utilities

(1) As used in this rule:

(a) "Affiliate transaction" means a transfer of assets, a sale of supplies, or a sale of services between accounts for regulated activities of a small telecommunications utility and accounts for nonregulated activities of a separate entity that is either an affiliated interest or another company in which the utility owns a controlling interest. The term also means a transfer of assets, a sale of supplies, or a sale of services between accounts for the regulated and nonregulated activities of a single small telecommunications utility;

(b) "Asset" means any tangible or intangible property of a small telecommunications utility or other right, entitlement, business opportunity, or other thing of value to which a utility holds claim;

(c) "Cost" means fully distributed cost, including the small telecommunications utility's authorized rate of return and all overheads;

(d) "Fair market value" means the potential sales price that could be obtained by selling an asset in an arm's-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;

(e) "Market rate" means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;

(f) "Net book value" means original cost less accumulated depreciation; and

(g) "Nonregulated service" means a service that is not a telecommunications service as defined by ORS 759.005(2)(g), or a service that the Commission has determined to be exempt from regulation.

(2) A small telecommunications utility that provides both regulated and nonregulated intrastate service shall:

(a) Allocate intrastate investments, expenses, and revenues between regulated activities and nonregulated activities according to principles, procedures, and accounting requirements, which the Federal Communications Commission (FCC) adopted December 23, 1986, and amended on reconsideration September 17, 1987, in CC Docket No. 86-111, except as otherwise provided in this rule;

(b) Part 64, Subpart I, Allocation of Costs, adopted by the Federal Communications Commission on October 11, 2001, is hereby adopted and prescribed.

(3) For intrastate purposes, FCC rules governing affiliate transactions (Section 32.27) are replaced as follows:

(a) When an asset is transferred to regulated accounts from nonregulated accounts, the transfer shall be recorded in regulated accounts at the lower of net book value or fair market value;

(b) When an asset is transferred from regulated accounts to nonregulated accounts, the transfer shall be recorded in regulated accounts at the tariff rate if an appropriate tariff is on file with the Commission. If no tariff is applicable, proceeds from the transfer shall be recorded in regulated accounts at the higher of net book value or fair market value;

(c) When an asset is transferred from a regulated account to a nonregulated account at a fair market value that is greater than net book value, the difference shall be considered a gain to the regulated activity. The small telecommunications utility shall the gain so the Commission can determine the proper disposition of the gain in a subsequent rate proceeding;

(d) When services or supplies are sold by a regulated activity to a nonregulated activity, sales shall be recorded in regulated revenue accounts at tariffed rates if an applicable tariff is on file with the Commission. Tariffed rates shall be established whenever possible. If services or supplies are not sold pursuant to a tariff, sales shall be recorded in regulated revenue accounts at the small telecommunications utility's cost;

(e) When services or supplies are sold to a regulated activity by a nonregulated activity, sales shall be recorded in regulated accounts at the nonregulated activity's cost or the market rate, whichever is lower. The nonregulated activity's cost shall be calculated using the small telecommunications utility's most recently authorized rate of return; and

(f) Income taxes shall be allocated among the regulated activities of the small telecommunications utility, its nonregulated divisions, and members of an affiliated group. When income taxes are determined on a consolidated basis, the small telecommunications utility shall record income tax expense as if it were determined for the small telecommunications utility separately for all time periods.

(4) If a small telecommunications utility is subject to ORS 759.120 through 759.130 and provides both regulated and nonregulated intrastate service, the utility shall maintain a current intrastate cost allocation manual on file with the Commission. If the FCC requires the small telecommunications utility to file an interstate cost allocation manual, the utility shall also maintain a current copy of its interstate manual with the Commission.

(5) An intrastate cost allocation manual shall contain the following:

(a) A description of each of the small telecommunications utility's nonregulated intrastate activities;

(b) A list of all intrastate activities to which the small telecommunications utility now accords incidental accounting treatment, and the justification for treating each as incidental;

(c) A chart showing the small telecommunications utility's affiliates;

(d) A statement identifying affiliates that engage in or will engage in transactions with the small telecommunications utility for the purpose of providing nonregulated intrastate service and describing the nature, terms, and frequency of such transactions; and

(e) A detailed specification of the cost categories to which amounts in each account and subaccount of Part 32 will be assigned, and a detailed specification of the basis on which each cost category will be apportioned between regulated and nonregulated activities.

(6) A cost allocation manual cannot be used to satisfy any other reporting requirement established by the Commission.

(7) The initial cost allocation manual filed by a small telecommunications utility pursuant to this rule must be filed with the Commission no less than 90 days before the manual's effective date. The manual shall go into effect unless rejected by the Commission before the manual's effective date.

(8) When a small telecommunications utility proposes any change to a cost allocation manual previously filed with the Commission, the utility shall file the proposed change with the Commission no less than 60 days before the effective date of the change. The changes shall go into effect unless rejected by the Commission before the effective date of the change.

(9) After the Commission has issued an order to exempt from regulation a telecommunications service provided by a small telecommunications utility that is subject to ORS 759.120 through 759.130, the affected utility shall file with the Commission either an initial cost allocation manual or a change to its previously filed manual.

(10) A small telecommunications utility that is required to file annual independent cost allocation audits with the FCC shall at the same time file copies of the annual audits with the Commission.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0520; PUC 10-2000, f. & cert. ef. 5-26-00; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 24-2002, f. & cert. ef. 12-20-02

860-034-0395

Annual Report Requirements for Small Telecommunications Utilities

Small telecommunications utilities shall submit annual reports. The report Form O for the previous calendar year shall be submitted on or before April 1, using the most current forms approved by the Commission. The intrastate report Form I for the previous calendar year shall be submitted on or before October 31, using the most current form approved by the Commission.

[ED. NOTE: Forms referenced in this rule are available from the agency.]

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 3-1995, f. & cert. ef. 6-19-95 (Order No. 95-516); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0530; PUC 19-2000, f. & cert. ef. 12-28-00; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0396

Reporting of Affiliated Transactions by Small Telecommunications Utilities

(1) By April 1, on forms approved and provided by the Commission, all small telecommunications utilities shall file with the Commission a list of all affiliated interest contracts executed during the period from January 1 through December 31 of the immediately preceding year. The list shall consist of the names of the parties to the contracts, the dollar amounts of the contracts, and the dates of execution of the contracts.

(2) As used in this rule, "affiliated interest transactions" mean transactions between affiliated interests as defined by ORS 757.015 and ORS 759.390.

[ED. NOTE: Forms referenced in this rule are available from the agency.]

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0550; PUC 8-2001, f. & cert. ef. 3-21-01; PUC 18-2001, f. & cert. ef. 6-21-01

860-034-0397

Use of Deferred Accounting by Small Telecommunications Utilities

(1) Definitions: As used in this rule:

(a) "Amortization" means the inclusion in rates of an amount which has been deferred under ORS 759.200 and is designed to eliminate, over time, the balance in an authorized deferred account. Amortization excludes the normal positive and negative fluctuations in a balancing account; and

(b) "Deferred accounting" means recording an amount, as allowed by ORS 759.200, in a balance sheet account for later reflection in rates.

(2) Expiration: Any authorization to use a deferred account shall expire 12 months from the date the deferral is authorized to begin. If a deferral under ORS 759.200 is reauthorized, the reauthorization shall expire 12 months from the date the reauthorization becomes effective.

(3) Contents of Application: Application for deferred accounting, by a small telecommunications utility or a customer, shall include:

(a) A description of the small telecommunications utility expense or revenue for which deferred accounting is requested;

(b) The reason(s) deferred accounting is being requested and a reference to the section(s) of ORS 759.200 under which deferral may be authorized;

(c) The account proposed for recording of the amounts to be deferred and the account which would be used for recording the amounts in the absence of approval of deferred accounting;

(d) An estimate of the amounts to be recorded in the deferred account for the 12-month period after the application; and

(e) A copy of the notice of application for deferred accounting and list of persons served with the notice.

(4) Reauthorization: Application for reauthorization to use a deferred account shall be made not more than 60 days before the expiration of the previous authorization for the deferral. Application for reauthorization shall include the requirements in subsections (3)(a) through (3)(e) of this rule and the following information:

(a) A description and explanation of the entries in the deferred account to the date of the application for reauthorization; and

(b) The reason(s) for continuation of deferred accounting.

(5) Exceptions: Authorization under ORS 759.200 to use a deferred account is necessary only to add amounts to an account, not to retain an existing account balance and not to amortize amounts which have been entered in an account under an authorization by the Commission. Interest, once authorized to accrue on unamortized balances in an account, may be added to the account without further authorization by the Commission, even though authorization to add other amounts to an account has expired.

(6) Notice of Application: The applicant shall serve a notice of application upon all persons who were parties in the small telecommunications utility's last general rate case. If the applicant is other than a small telecommunications utility, the applicant shall serve a copy of the application upon the affected utility. A notice of application shall include:

(a) A statement that the applicant has applied to the Commission for authorization to use deferred accounting, or for an order requiring that deferred accounting be used by a small telecommunications utility;

(b) A description of the utility expense or revenue for which deferred accounting is requested;

(c) The way an interested person can obtain a copy of the application;

(d) A statement that any person may submit to the Commission written comment on the application by the date in the notice, which may be no sooner than 25 days from the date of the application; and

(e) A statement that the granting of the application will not authorize a change in rates, but will permit the Commission to consider allowing such deferred amounts in rates in a subsequent proceeding.

(7) Public Meetings: Unless otherwise ordered by the Commission, applications for use of deferred accounting will be considered at the Commission's Public Meetings.

(8) Reply Comments: Within ten days after the due date for comments on the application from interested persons, the applicant, and the small telecommunications utility if the utility is not the applicant, reply comments may be filed with the Commission and served on persons who filed the initial comments on the application.

(9) Amortization: Amortization in rates of a deferred amount shall only be allowed in a rate proceeding, whether initiated by the small telecommunications utility or another party. The Commission may authorize amortization of such amounts only for utility expenses or revenues for which the Commission previously has authorized deferred accounting. Upon request for amortization of a deferred account, the small telecommunications utility shall provide the Commission with its financial results for a 12-month period or for multiple 12-month periods to allow the Commission to perform an earnings review. The period selected for the earnings review will encompass all or part of the period when the deferral took place or must be reasonably representative of the deferral period. Unless authorized by the Commission to do otherwise:

(a) A small telecommunications utility shall request that amortizations of deferred accounts commence no later than one year from the date that deferrals cease for that particular account; and

(b) In the case of ongoing balancing accounts, the small telecommunications utility shall request amortization at least annually, unless amortization of the balancing account is then in effect.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99, Renumbered from 860-034-0560; PUC 15-2001, f. & cert. ef. 6-21-01

Construction and Safety Standards for Utilities and Telecommunications Cooperatives, General

860-034-0400

Maps and Records of Small Telecommunications Utilities and Telecommunications Cooperatives

(1) Each small telecommunications utility and telecommunications cooperative shall keep on file current maps and records of the entire plant showing size, location, character, and date of installation of major plant items.

(2) Upon request, each small telecommunications utility and telecommunications cooperative shall file with the Commission an adequate description or maps to define the territory served. All maps and records, which the Commission may require the small telecommunications utility or telecommunications cooperative to file, shall be in a form satisfactory to the Commission.

Stat. Auth.: ORS 183, 756, 758 & 759
Stats. Implemented: ORS 756.040, 758.215 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 3-1999, f. & cert. ef. 8-10-99; PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0420

Location of Underground Facilities

A small telecommunications utility or telecommunications cooperative and its customers shall comply with requirements of chapter 952 regarding the prevention of damage to underground facilities.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 757.542 - 757.562 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 12-1999, f. & cert. ef. 11-18-99; PUC 23-2001, f. & cert. ef. 10-11-01

860-034-0430

Construction, Safety, and Reporting Standards for Small Telecommunications Utilities and Telecommunications Cooperatives

Every small telecommunications utility and telecommunications cooperative shall comply with the construction, safety, and reporting standards set forth in OAR chapter 860, division 024.

Stat. Auth.: ORS 183, 654, 756, 757 & 759
Stats. Implemented: ORS 654.715, 757.035 & 759.045
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 3-1994, f. & cert. ef. 1-14-94 (Order No. 94-074); PUC 13-1994, f. & cert. ef. 8-31-94 (Order No. 94-1243); PUC 7-1997, f. & cert. ef. 2-6-97; PUC 23-2001, f. & cert. ef. 10-11-01

Regulations to Prevent Duplication of Facilities for Utilities and Telecommunications Cooperatives

860-034-0440

Applicability and Formal Requirements for Small Telecommunications Utilities and Telecommunications Cooperatives

(1) The rules contained in this division are auxiliary to and supplemental to the rules contained in division 001 of this chapter, Practice and Procedure, and all applications or petitions for approval of contracts or amendments thereto, allocations of territory, assignment or transfer of rights acquired pursuant to an allocation of territory, and all other pleadings filed with the Commission pursuant to ORS 759.500 to 759.595 inclusive, are governed by the rules in division 001 of this chapter, Practice and Procedure, except as provided in sections (2) and (3) of this rule.

(2) All applications and petitions must contain the full and correct name and business address of the applicant or petitioner.

(3) An original and three conformed of all applications and petitions, as well as supplemental electronic copies, must be filed with the Commission.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 759.045 & 759.500 - 759.675
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 13-2002, f. & cert. ef. 3-26-02; PUC 18-2004, f. & cert. ef. 12-30-04

860-034-0450

Applications for Approval of Contracts to Avoid or Eliminate Duplicate Utility Service for Small Telecommunications Utilities and Telecommunications Cooperatives

For purposes of this rule, "utility service" means telecommunications utility service as defined in ORS 759.500(3). An application under ORS 759.500 through ORS 759.595 for an order of the Commission approving a contract authorized thereunder shall contain in addition to the contract, if not contained therein, the following information:

(1) A map or maps, to appropriate scale, showing the general location and boundaries of the respective applicant's service areas.

(2) A map or maps, to appropriate scale, showing the location of customers who are being served by either or both of the parties, or who could be economically served by the then existing facilities of either party, or by reasonable and economic extensions thereto, who are covered by the contract.

(3) A description by county, section lines, river, highway, road, street, or metes and bounds, where applicable and necessary, designating the boundaries of the territory to be served by each party to the contract. Such legal description of boundary lines may be drawn and described:

(a) To eliminate minor irregularities in the boundary of each party when to do so will include within each party's territory, only that unserved area which may be economically served by the then existing facilities of the respective parties or by reasonable and economic extensions thereto; and

(b) In the case of persons providing utility service who have entered into exchange boundary agreements before May 31, 1961, to define mutually exclusive exchange service areas, the area affected by such agreement may be described by reference to the exchange area map in that agreement. However, the applicant shall not be relieved by such reference from showing that it can economically serve the unserved areas within the exchange area map with its existing facilities or by a reasonable and economic extension thereto.

(4) A description of the equipment and facilities of each party, which are the subject of sale, exchange, transfer, or lease pursuant to the contract and the consideration to be paid therefore.

(5) Facts showing that the contract will eliminate or avoid unnecessary duplicating facilities, and will promote the efficient and economic use and development and the safety of operation of the utility service systems of the parties to the contract, while providing adequate and reasonable service to all territories and customers affected thereby.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.500 - 759.595
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0460

Applications for Approval of Amendments to Contracts to Avoid or Eliminate Duplicate Utility Service for Small Telecommunications Utilities and Telecommunications Cooperatives

For purposes of this rule, "utility service" means telecommunications utility service as defined in ORS 759.500(3). An application under ORS 759.560 for a Commission order approving an amendment to a contract approved pursuant to ORS 759.560, shall contain the amendatory contract and such information required by OAR 860-034-0450 as is pertinent to the Commission in making a decision thereon.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.560
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0470

Applications for Allocation of Exclusively Served Territory by Small Telecommunications Utilities and Telecommunications Cooperatives

For purposes of this rule, "utility service" means telecommunications utility service as defined in ORS 759.500(3). An application under ORS 759.535 for an order of the Commission to allocate territory to a person providing exclusive utility service in a territory shall contain the following information:

(1) A map or maps, drawn to appropriate scale, showing the general location and boundaries of the applicant's service area.

(2) A map or maps, drawn to appropriate scale, showing the location of the applicant's customers and facilities in the vicinity of the boundaries of the territory applied for in sufficient detail to enable the Commission to determine the boundaries of that territory served exclusively by applicant.

(3) A description by county, section lines, river, highway, road, street, or metes and bounds, where applicable and necessary, of the boundaries of applicant's exclusive service area. Such map and legal description of boundary lines may be drawn and described to eliminate minor irregularities in the boundary.

(4) Facts showing that applicant is lawfully and in good faith providing exclusive utility service within the area described in the application and that no other person is providing a similar utility service within such territory.

(5) Such additional information as needed for a full understanding of the situation.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.535
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0480

Applications for Allocation of Unserved Territory for Small Telecommunications Utilities and Telecommunications Cooperatives

For purposes of this rule, "utility service" means telecommunications utility service as defined in ORS 759.500(3). An application under ORS 759.535, for an order of the Commission to allocate territory to a person providing exclusive utility service in a territory and adjacent unserved territory, shall contain the following information:

(1) The information required under OAR 860-034-0470.

(2) A map or maps similar to that required by OAR 860-034-0470(2) and description comparable to that required by OAR 860-034-0470(3), showing and describing the boundary of the adjacent unserved territory covered by the application.

(3) The names and addresses of all persons providing similar utility service in proximity to the unserved area applied for who may have an interest in or be affected by an approval or disapproval of the application.

(4) Facts showing that it is more economical and feasible to serve the adjacent unserved territory by an extension of the applicant's existing facilities than by an extension of the facilities of another person, including but not limited to the following:

(a) A map or maps, drawn to appropriate scale, showing location and capability of equipment, plant, or facilities including the capability, location, and route of proposed facilities, if any, which relate to the applicant's ability to extend utility service into the adjacent unserved area.

(b) Copies of such franchises or permits as the appropriate public authorities may require for extending service into the adjacent unserved area, or a statement that they will be filed at the hearing or a statement that no such authority is required by said public authorities.

(c) The kind or nature and extent of the need or demand, or reasonably anticipated need or demand, for utility service within the unserved area.

(d) The estimated construction, operating, and related costs of and revenues from providing the proposed utility service within the unserved area.

(5) Such additional information as needed for a full understanding of the situation.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.535
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0490

Applications to Transfer Rights to Allocated Territory for Small Telecommunications Utilities and Telecommunications Cooperatives

For purposes of this rule, "utility service" means telecommunications utility service as defined in ORS 759.500(3). An application under ORS 759.560 for an order of the Commission to approve the transfer of rights acquired by an allocation of territory shall contain the following information:

(1) A statement of the purposes for the transfer, the supporting reasons therefore and a detailed explanation thereof justifying why the transfer will not be contrary to the public interest.

(2) A copy of all written evidence and a statement of all oral understanding comprising the agreement between the transferor and transferee covering the transfer of the territory described in the application and sought to be transferred.

(3) A map or maps, drawn to appropriate scale, showing the general location and boundaries of the allocated territory sought to be transferred and the transferor's and transferee's adjacent service areas.

(4) A map or maps, drawn to appropriate scale, showing:

(a) The number and, as practicable, the location of customers and equipment or facilities of the transferor with a detailed description of such equipment or facilities within the territory sought to be transferred; and

(b) The location of equipment or facilities of the transferor and transferee, with a detailed description of the same, which are in the territory immediately adjacent to that sought to be transferred and which are or will be interconnected therewith.

(5) A legal description comparable to that required in OAR 860-034-0470(4) of the boundaries of the territory sought to be transferred.

(6) A legal description comparable to that required in OAR 860-034-0470(4) of the resulting boundaries of the remaining allocated portion of the parcel of the transferor's territory where the territory sought to be transferred is only part of a parcel of transferor's allocated territory and a similar description of the resulting boundaries of the transferee's allocated territory where the territory sought to be transferred will be contiguous to a parcel of transferee's allocated territory.

(7) A copy of each franchise and permit, as the appropriate public authorities may require, authorizing the transferee to serve in the territory sought to be transferred, or evidence of the approval of the appropriate public authorities of the transfer to the transferee of the transferor's franchise or permit to serve the territory sought to be transferred.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.560
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0495

Application by an Unserved Person for Service from a Small Telecommunications Utility

An application under ORS 759.590 for an order of the Commission directing another telecommunications utility to provide local exchange service to an unserved person shall comply with OAR 860-032-0220.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045, 759.580, 759.585, 759.590& 759.595
Hist.: PUC 13-2002, f. & cert. ef. 3-26-02

860-034-0505

Attachments to Poles and Conduits Owned by Public, Telecommunications, and Consumer-Owned Utilities

Pole and conduit attachments shall comply with the rules set forth in OAR chapter 860, division 028.

Stat. Auth.: ORS 183, 756, 757 & 759
Stats. Implemented: ORS 756.040, 757.270 - 757.290, 759.045 & 759.650 - 759.675
Hist.: PUC 23-2001, f. & cert. ef. 10-11-01

Reports and Records for Utilities and
Telecommunications Cooperatives

860-034-0580

Preservation and Destruction of Records for Small Telecommunications Utilities and Type 2 Cooperatives

The Regulations to Govern the Preservation of Records of Communication Common Carriers, Part 42, 47 Code of Federal Regulations Chapter 1 (October 1, 2003, edition) is hereby adopted and prescribed by the Commission for all small telecommunications utilities and Type 2 telecommunications cooperatives.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.045 & 759.225
Hist.: PUC 6-1993, f. & cert. ef. 2-19-93 (Order No. 93-185); PUC 3-1999, f. & cert. ef. 8-10-99; PUC 8-2000, f. & cert. ef. 5-26-00; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 15-2004, f. & cert. ef. 10-28-04

Rules Relating to Establishment of and Exceptions to
Depreciation Guidelines for Utilities and Type 2 Cooperatives

860-034-0600

Definitions for Depreciation Guidelines for Small Telecommunications Utilities and Type 2 Cooperatives

As used in OARs 860-034-0600 through 860-034-0670:

(1) "Exception" means a rate for the depreciation of an investment made by a small telecommunications utility or Type 2 cooperative that exceeds the guideline rate. "Exception" also includes a rate for amortization of retired investment if the rate of amortization exceeds the otherwise applicable guideline rate for depreciation of that investment.

(2) "File" means compliance with Commission rules.

(3) "Guidelines" means the standards used by this Commission to determine rates for the depreciation of investment made by a small telecommunications utility or Type 2 cooperative to provide a through service.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.135, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01; PUC 18-2004, f. & cert. ef. 12-30-04

860-034-0610

Revision of Depreciation Guidelines

During February of 1995 and every three years thereafter, the Commission will open a docket to consider changes to the guidelines. The Commission will hold a prehearing conference to establish dates to resolve the issues.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.135, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98

860-034-0620

Filing Deadlines for a Request for an Exception by a Small Telecommunications Utility or Type 2 Cooperatives

(1) A small telecommunications utility or Type 2 cooperative requesting an exception from the depreciation guidelines for one or more calendar years shall file a request for an exception on or before June 1 of the year preceding the first calendar year for which it seeks an exception.

(2) A small telecommunications utility or Type 2 cooperative may file a request for an exception after June 1 only if the Commission grants a motion to file out of time. The Commission may grant such a motion if the small telecommunications utility or Type 2 cooperative shows good cause for its failure to file timely and if the Commission concludes it has sufficient time to rule on the request on or before December 31 of the year preceding the first calendar year for which the small telecommunications utility or Type 2 cooperative seeks an exception.

(3) If the Commission grants a motion to file out of time, the time line set forth in OARs 860-034-0640 through 860-034-0660 shall begin on the date of the order granting the motion.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0630

Information to be Included With a Request for an Exception Filed Under OAR 860-034-0620

Information included with filing a request for an exception, at a minimum, shall:

(1) State the account(s) for which the small telecommunications utility or Type 2 cooperative seeks the exception;

(2) State the number of calendar years for which the small telecommunications utility or Type 2 cooperative seeks the exception; and

(3) Include an engineering analysis, economic analysis, or both, or other support for the exception.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0640

Review by Staff of a Request for an Exception Filed Under OAR 860-034-0620

On or before the 30th day following the filing of a request for an exception, staff shall issue a written response to the small telecommunications utility or Type 2 cooperative stating whether staff recommends approval or denial of the request.

(1) If staff recommends approval, it shall, within 15 days of notifying the small telecommunications utility or Type 2 cooperative of the recommendation, place on a Public Meeting agenda a recommendation that the Commission approve the request.

(2) If staff recommends denial, it shall provide written notice to the small telecommunications utility or Type 2 cooperative of such recommendation, specify the reason(s) therefore, and provide to the small telecommunications utility or Type 2 cooperative all documents, including, but not limited to, workpapers, studies, calculations, and internal memoranda which support its recommendation.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0650

Petition to Open Depreciation Docket

If staff recommends denial of a request for an exception, a small telecommunications utility or Type 2 cooperative may file a petition with the Commission requesting that the Commission open a docket to determine whether to grant the exception. The small telecommunications utility or Type 2 cooperative shall file its petition with both the Administrative Hearings Division and staff on or before the 20th day following the small telecommunications utility's or Type 2 cooperative's receipt of staff's notification of recommended denial.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0660

Review Procedure and Schedule for a Request for an Exception Filed Under OAR 860-034-0650

(1) A small telecommunications utility or Type 2 cooperative filing a petition pursuant to OAR 860-034-0650 shall include as exhibits to the petition:

(a) Its request for exception and any material submitted in support of that request;

(b) Staff's notification of recommended denial of the request for exception and all material provided by staff to the small telecommunications utility or Type 2 cooperative in support of staff's recommended denial; and

(c) Any other arguments or evidence the small telecommunications utility or Type 2 cooperative chooses to submit.

(2) The petition and exhibits shall constitute the entire record unless, within 20 days following the small telecommunications utility's or Type 2 cooperative's filing, the staff files objections to the petition or exhibits or files supplemental evidence.

(3) If staff files an objection to the petition or exhibits or files supplemental evidence, the small telecommunications utility or Type 2 cooperative may file its response within 20 days from the date of the staff's filing.

(4) Within ten days after the date when the small telecommunications utility or Type 2 cooperative is to respond, either staff or the small telecommunications utility or Type 2 cooperative may request a hearing. If neither staff nor the small telecommunications utility or Type 2 cooperative requests a hearing, then the record shall be closed.

(5) The Administrative Law Judge (ALJ) shall establish a schedule for the filing of briefs, upon request of either the small telecommunications utility or Type 2 cooperative or staff.

(6) The ALJ shall have discretion, for cause, to modify the schedule, but in no event may modify the schedule so as to prevent the Commission from issuing an order on or before December 31.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 12-1999, f. & cert. ef. 11-18-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0670

Extension of Time for a Request for an Exception

The Commission or a Hearings Officer may grant, upon a showing of good cause, a request to modify the filing dates set forth in OARs 860-034-0640 through 860-034-0660.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 12-1994, f. & cert. ef. 8-31-94 (Order No. 94-1242); PUC 12-1998, f. & cert. ef. 5-7-98; PUC 3-1999, f. & cert. ef. 8-10-99; PUC 9-2001, f. & cert. ef. 3-21-01

Joint Rates or Rates Charged for
Through Services by Type 2 Cooperatives

860-034-0710

Extension of Time for a Request for an Exception Filed Under OAR 860-034-0650

Type 2 cooperatives shall, upon the Commission's request, provide copies of any schedules showing rates, tolls, and charges, including all rules and regulations that in any manner affect any joint rates or rates charged for through services.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 9-2001, f. & cert. ef. 3-21-01

860-034-0720

Announcement of Rate Increases for Joint Rates or Rates Charged for Through Services by Type 2 Cooperatives

A Type 2 cooperative that increases any joint rate or rate charged for a through service shall notify its affected customers, who have requested notice, at least 30 days before the proposed effective date of the increase, or as ordered by the Commission. The Type 2 cooperative shall file a copy of such notification at the same time with the Commission.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 15-2001, f. & cert. ef. 6-21-01

860-034-0725

Telephone Solicitation Notices by Telecommunications Cooperatives

Each telecommunications cooperative shall notify its residential customers of the provisions of ORS 646.561, ORS 646.563, ORS 646.567 through 646.578, and ORS 646.608. The notice shall include a statement that a customer not wishing to be solicited may file a request, together with the required fees, with the telephone solicitation program administrator contracted by the State Attorney General. The notice shall include the address and the telephone number for the customer to contact the telephone solicitation program administrator. The notice shall be provided in the following manner and a copy shall be forwarded to the Commission:

(1) Annual inserts in the billing statements mailed to parties; or

(2) Conspicuous publication of the notice in the consumer information pages of local telephone directories.

Stat. Auth.: ORS 183, 646, 756 & 759
Stats. Implemented: ORS 646.578 & 756.040
Hist.: PUC 3-2001, f. & cert. ef. 1-24-01; PUC 15-2001, f. & cert. ef. 6-21-01

Finance, Accounting, and Annual Reports for Type 2 Cooperatives

860-034-0730

Uniform System of Accounts for Type 2 Cooperatives

(1) The Uniform System of Accounts for Telecommunications Companies, Part 32, adopted by the Federal Communications Commission (FCC) on February 6, 2002, is hereby adopted and prescribed for all Type 2 cooperatives utilities except as modified for intrastate purposes in sections (2) through (5) of this rule.

(2) A Type 2 cooperative may follow Class B accounting except when Class A accounting is needed to complete intrastate depreciation and jurisdictional separation studies, to provide the details requested in annual reports under OAR 860-034-0750, and to comply with other Oregon rules and statutes.

(3) The allocation rules in Part 32, Section 32.27, are replaced by OAR 860-034-0740(3).

(4) For construction work in progress and property held for future use, each Type 2 cooperative shall maintain subsidiary records consistent with ORS 759.285.

(5) Each Type 2 telecommunications cooperative shall maintain subsidiary records sufficient to identify the following universal service fund collection, revenues, and expenses:

(a) [Reserved].

(b) Federal universal service fund collection (Account 5081).

(c) Federal universal service fund contribution (Account 6540).

(d) State universal service fund collection and contribution (Account 4010).

(e) Interstate and intrastate switched access revenue (Account 5082).

(f) Interstate and intrastate special access revenue (Account 5083).

(g) [Reserved].

(h) Distributions from the federal USF and the Oregon USF.

(i) Depreciation expenses related to telecommunications plant in service, depreciation expense related to property held for future use, and amortization expense.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 3-2000, f. & cert. ef. 2-9-00; PUC 9-2000, f. & cert. ef. 5-26-00; PUC 16-2000, f. & cert. ef. 9-12-00; PUC 4-2001, f. & cert. ef. 1-24-01; PUC 14-2002, f. & cert. ef. 3-26-02; PUC 8-2010, f. & cert. ef. 12-20-10; PUC 3-2013, f. & cert. ef. 5-17-13

860-034-0740

Allocation of Costs by Type 2 Cooperatives

(1) As used in this rule:

(a) "Affiliate transaction" means a transfer of assets, a sale of supplies, or a sale of services between accounts for services for which a joint rate is charged or for through services offered by a Type 2 cooperative and accounts for nonregulated activities of a separate entity that is either an affiliated interest or another company in which the Type 2 cooperative owns a controlling interest;

(b) "Asset" means any tangible or intangible property of a Type 2 cooperative or other right, entitlement, business opportunity, or other thing of value to which a Type 2 cooperative holds claim;

(c) "Cost" means fully distributed cost, including all overheads and rate of return as defined in section (1)(h) of this rule;

(d) "Fair market value" means the potential sales price that could be obtained by selling an asset in an arm's-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;

(e) "Market rate" means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;

(f) "Net book value" means original cost less accumulated depreciation;

(g) "Nonregulated service" means a service that is neither a through service nor a service for which a joint rate is charged, as defined by OAR 860-034-0015; and

(h) "Rate of return" means the rate or return established by the Commission for the calculation of a rate for a through service or for which a joint rate is charged.

(2) A Type 2 cooperative that provides both regulated and nonregulated intrastate service shall:

(a) Allocate intrastate investments, expenses, and revenues between regulated activities and nonregulated activities according to principles, procedures, and accounting requirements, which the Federal Communications Commission (FCC) adopted December 23, 1986, and amended on reconsideration September 17, 1987, in CC Docket No. 86-111, except as otherwise provided in this rule.

(b) Part 64, Subpart I, Allocation of Costs, adopted by the Federal Communications Commission on October 11, 2001, is hereby adopted and prescribed.

(3) For intrastate purposes, FCC rules governing affiliate transactions (Section 32.27) are replaced as follows:

(a) When an asset is transferred to regulated accounts from nonregulated accounts, the transfer shall be recorded in regulated accounts at the lower of net book value or fair market value;

(b) When an asset is transferred from regulated accounts to nonregulated accounts, the proceeds from the transfer shall be recorded in regulated accounts at the higher of net book value or fair market value;

(c) When an asset is transferred from a regulated account to a nonregulated account at a fair market value that is greater than net book value, the difference shall be considered a gain to the regulated activity. The Type 2 cooperative shall record the gain in a manner that will enable the Commission to determine the proper disposition of the gain in a subsequent rate proceeding;

(d) When services or supplies are sold by a regulated activity to a nonregulated activity, sales shall be recorded in regulated revenue accounts at the Type 2 cooperative's cost; and

(e) When services or supplies are sold to a regulated activity by a nonregulated activity, sales shall be recorded in regulated accounts at the nonregulated activity's cost or the market rate, whichever is lower. The nonregulated activity's cost shall be calculated using the Type 2 cooperative's most recently authorized rate of return.

(f) Income taxes shall be allocated among the regulated activities of the Type 2 cooperative, its nonregulated divisions, and members of an affiliated group. When income taxes are determined on a consolidated basis, the Type 2 cooperative shall record income tax expense as if it were determined for the Type 2 cooperative separately for all time periods.

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 10-2000, f. & cert. ef. 5-26-00; PUC 24-2002, f. & cert. ef. 12-20-02

860-034-0750

Annual Report Requirements for Type 2 Cooperatives

Annual reports will be submitted by Type 2 cooperatives. The total company Form O report for the previous calendar year shall be submitted on or before April 1, using the most current forms approved by the Commission. The Form I report for the previous calendar year shall be submitted on or before October 31, using the most current forms approved by the Commission.

[ED. NOTE: Forms referenced in this rule are available from the agency.]

Stat. Auth.: ORS 183, 756 & 759
Stats. Implemented: ORS 756.040, 759.220 & 759.225
Hist.: PUC 3-1999, f. & cert. ef. 8-10-99; PUC 19-2000, f. & cert. 12-28-00

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