2004 Minnesota Statutes

     237.766 Plan duration and extension. 

    Subdivision 1.    Plan duration.  An alternative 
 regulation plan approved by the commission under section 237.764 
 must remain in force as approved for the term specified in the 
 plan, which must be for no less than three years.  Except as 
 otherwise provided in this section, within six months prior to 
 the termination of the plan the company shall give notice that 
 it will propose a new plan, extend an existing plan, or revert 
 to rate of return regulation. 

    Subd. 2.    New plan.  A new plan proposed by a company 
 must be reviewed by the commission and, with the consent of the 
 company, revised or approved consistent with sections 237.76 to 
 237.774, except that the justification of earnings levels in 
 section 237.764, subdivision 1, paragraph (c), if required, and 
 the provisions prohibiting rate increases at the initiation of 
 or during the first three years of a plan contained in section 
 237.762, shall not apply to a new plan.  Any new plan must be 
 approved by the commission and shall contain a mechanism under 
 which a telephone company may reduce the rates for 
 price-regulated services below the initial rates or prices or 
 increase the rates or prices during the term of the plan.  The 
 plan must specify the reports required of the telephone company 
 for review of the plan and specify that the telephone company 
 shall maintain records in sufficient detail to facilitate the 
 review.  A new plan is not an extension, which must be made 
 pursuant to subdivision 3.  

    Subd. 3.    Plan extension.  (a) Notwithstanding the 
 provisions of its plan, a telephone company operating under a 
 plan as of May 20, 2004, may elect to extend that plan for up to 
 three years from the expiration date of the plan or until 
 December 31, 2007, whichever is earlier.  The election is 
 effective upon notification to customers, the commission, the 
 department, and the Office of the Attorney General.  A telephone 
 company must provide notification of its election within 30 days 
 of May 20, 2004, or within six months of the expiration of its 
 current or expired plan, whichever is later.  Once a telephone 
 company has elected to exercise the option provided under this 
 subdivision, the company may elect at any time to terminate the 
 plan by notifying customers, the commission, the department, and 
 the Office of the Attorney General, in writing, six months prior 
 to the termination date.  Upon termination of a plan, the 
 company shall be regulated as provided in this chapter. 

    (b) A telephone company may elect to extend a plan entered 
 into after May 20, 2004, in lieu of proposing a new plan only if 
 the company is in substantial compliance with the plan's service 
 quality provisions and has met its infrastructure obligations 
 under the plan.  If the company elects to extend a plan, the 
 rates for price-regulated services shall be capped at the rate 
 levels in effect at the time the extension commences, provided, 
 however, exceptions to a price cap contained in the plan being 
 extended may remain in force.  Unless otherwise specified in the 
 plan, all other provisions of the plan shall continue in effect 
 throughout the extension period.  A plan may not be extended for 
 less than one year or more than three years, and may only be 
 extended once. 

    (c) The Department of Commerce or the Office of the 
 Attorney General may file an objection to the extension with the 
 commission if the company is not in substantial compliance with 
 the service quality provisions of its plan or has not met its 
 infrastructure obligations under the plan.  An objection must be 
 filed within 45 days of the company's notice of its intention to 
 extend the plan. 

    (d) If an objection is filed by the Department of Commerce 
 or the Office of the Attorney General, the commission may hold a 
 hearing on the issues raised in the objection.  The hearings 
 shall be completed within 30 days of the deadline for filing the 
 objections.  If the commission finds that the issues raised in 
 the objection are valid, it may reject the extension.  If the 
 commission finds that the issues raised in the objection are not 
 valid, it shall approve the extension.  The commission shall 
 issue its decision within 15 days of the completion of the 
 hearings concerning the objection.  

    (e) If the Department of Commerce or the Office of the 
 Attorney General does not file an objection, the commission 
 shall approve the extension within 60 days of the company's 
 filing of its notice of its intention to extend the plan.  

    HIST: 1995 c 156 s 13,25; 1997 c 223 s 16; 2003 c 97 s 2; 2004 c 214 
 s 2