Okla. Stat. tit. 17, § 17-139.103

telecommunications service rates required - Charges for basic local

exchange service rates limited - Application and effect of act -

Alternative form of regulation - Enforcement of quality of service

standards - Jurisdiction over access services and rates.

A. Except as provided as follows, no company shall increase or

decrease any regulated telecommunications service rate without

approval of the Corporation Commission, consistent with Commission

rules. The Commission shall promulgate rules, to be effective no

later than January 1, 1999, eliminating any regulatory disparities

between the CLECs and ILECs with respect to the process of reviewing

and approving tariffs.

B. Unless approved by the Legislature, no local exchange

telecommunications service provider may charge a basic local

exchange service rate that exceeds a basic local exchange service

Oklahoma Statutes - Title 17. Corporation Commission Page 57

rate previously approved by the Commission and in effect on March

20, 1997, unless the local exchange telecommunications service

provider is regulated under traditional rate base, rate of return

regulation. Provided, companies serving less than fifteen percent

(15%) of the total access lines in the state or which are subject to

subsection B of Section 137 of this title may adjust local exchange

rates in the manner provided for in subsection B of Section 137 of

this title.

C. Nothing in this act shall be construed as modifying,

affecting, or nullifying the responsibilities of the Commission or

any telecommunications carrier as required pursuant to the National

Labor Relations Act, the Communications Act of 1934 as amended by

the Telecommunications Act of 1996, or the provisions relating to

refund liability for overcharges pursuant to Section 121 et seq. of

this title.

D. Except as otherwise provided for in this subsection, nothing

in this act shall be construed as abrogating any rate case

settlement agreement approved by the Corporation Commission prior to

the effective date of this act. With respect to local exchange

telecommunications service providers serving fifteen percent (15%)

or more of the access lines in the state:

1. The company shall not request and the Commission shall not

approve an increase in basic local exchange service rates before

February 5, 2001;

2. The Commission shall not initiate or conduct a traditional

rate base, rate of return or earnings proceeding for any such

company before February 5, 2001, unless such company proposes and

the Commission approves an increase in a service rate that results

in an increase in overall revenues of more than five percent (5%) on

an annual basis for that company, excluding rate changes made

pursuant to subsection E of Section 139.106 of this title and rate

changes required or authorized by federal or state law, rules,

orders or policies;

3. Notwithstanding any other provision of this act, no later

than July 15, 1997, each such company shall submit to the

Commission, and the Commission shall approve tariff changes reducing

the intrastate access rates of that company by an amount necessary

to generate a reduction in the annual intrastate access revenues of

that company of Five Million Dollars ($5,000,000.00). The company

may seek recovery from the OUSF of only that portion of the annual

five-million-dollar revenue reduction taken as directed in this

paragraph that exceeds that amount necessary to achieve parity with

the interstate access rates of that company in effect on May 30,

1997. Thereafter the Commission shall continue to adjust the

intrastate access rates of such company as necessary to keep such

rates in parity with the interstate access rates of that company,

until the intrastate access revenues of that company have been

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reduced by a cumulative annual amount of Eleven Million Five Hundred
May 30,

1997. Thereafter the Commission shall continue to adjust the

intrastate access rates of such company as necessary to keep such

rates in parity with the interstate access rates of that company,

until the intrastate access revenues of that company have been

Oklahoma Statutes - Title 17. Corporation Commission Page 58

reduced by a cumulative annual amount of Eleven Million Five Hundred

Thousand Dollars ($11,500,000.00), in addition to the five-million-

dollar annual reduction taken as directed in this paragraph. The

company may seek recovery of all or part of the eleven-million-five-

hundred-thousand-dollar annual revenue reduction from the OUSF. If

the company seeks recovery from the OUSF of such access revenue

reductions described in this paragraph, the Commission shall, after

notice and hearing, make a determination of the portion, if any, of

the amounts requested that the company is eligible to receive from

the OUSF;

4. No later than July 15, 1997, each such company shall submit

to the Commission, and the Commission shall approve revised tariffs

amending the terms and conditions provisions of the intrastate

access tariffs of that company so that those tariffs are in parity

with the terms and conditions provisions of the interstate access

tariffs of that company. Thereafter, on an ongoing basis, such

company shall maintain the terms and conditions provisions of the

intrastate access tariffs of that company so that they are in parity

with the terms and conditions provisions of the interstate access

tariffs of that company; and

5. All reductions in access rates provided for in paragraph 3

of this subsection shall be flowed through to customers, consistent

with the Commission's Order No. 282453, as issued by the Commission

in Cause No. 29217.

E. Upon application of a provider of regulated

telecommunications services, the Commission may implement an

alternative form of regulation other than traditional rate base,

rate of return regulation. In determining whether to approve an

alternative form of regulation or whether to continue regulation as

established in paragraph 2 of subsection D of this section beyond

February 5, 2001, the Commission shall consider the compliance of

the company with the federal Telecommunications Act of 1996 in

opening its network to local competition and implementing the

interconnection and access provisions of such act.

F. Nothing in this section shall be construed as restricting

any right of a consumer to complain to the Commission regarding

quality of service or the authority of the Commission to enforce

quality of service standards through the Commission's contempt

powers or authority to revoke or rescind a certificate of

convenience and necessity if the provider fails to provide adequate

service. A certificate shall not be revoked or rescinded without

notice, hearing, and a reasonable opportunity to correct any

inadequacy.

G. The rules of the Corporation Commission governing quality of

service shall apply equally to all local exchange telecommunications

service providers.

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H. In a manner consistent with the provisions of this act and

rules promulgated by the Commission, the Commission shall retain

jurisdiction over access services and rates.