State Codes and Statutes
Statutes > Wisconsin > 196 > 196.204196.204
196.204 Cross-subsidization limited.196.204(1)
(1) Except for retained earnings, a telecommunications utility may not subsidize, directly or indirectly, any activity, including any activity of an affiliate, which is not subject to this chapter or is subject to this chapter under s. 196.194, 196.195, 196.202 or 196.203. No telecommunications utility may allocate any costs or expenses in a manner which would subsidize any activity which is not subject to this chapter or is subject to this chapter under s. 196.194, 196.195, 196.202 or 196.203. Except as provided in subs. (2) and (4) the commission may not allocate any revenue or expense so that a portion of a telecommunications utility's business which is fully regulated under this chapter is subsidized by any activity which is not regulated under this chapter or is partially deregulated under s. 196.194, 196.195, 196.202 or 196.203.196.204(2)
(2) The commission may attribute revenues derived from the sale of directory advertising or directory publishing rights to the regulated activities of a telecommunications utility for rate making and other utility purposes.196.204(3)
(3) The commission shall establish the necessary minimum accounting and reporting requirements, and structural separation requirements if necessary, for telecommunications utilities to enable it to enforce this section. For a telecommunications utility regulated under s. 196.195 or 196.196, these requirements shall at a minimum include the filing of cost support documentation demonstrating compliance with subs. (5) and (6) before the effective date of each new service, including any unbundled service element or basic network function; before any reduction in the price of a service offered to end users; and before any increase in the price of a service offered to other telecommunications providers. The commission, on its own motion or upon complaint, may order any telecommunications utility to file cost support documentation showing that a service that the utility offers or a contract that the utility has entered into under s. 196.194 complies with subs. (5) and (6).196.204(4)
(4) In order to protect the public interest, the commission may allocate the earnings derived from sale of services partially deregulated under s. 196.195, 196.202 or 196.203 to the fully regulated activities of a telecommunications utility for rate-making purposes.196.204(5)
(5)196.204(5)(ag)
(ag) In this subsection:196.204(5)(ag)1.
1. "Local government telecommunications utility" means a municipality that owns, operates, manages, or controls any plant or equipment, or that wholly owns, operates, manages, or controls any entity that owns, operates, manages, or controls any plant or equipment, used to furnish telecommunications services within the state directly or indirectly to the public.196.204(5)(ag)2.
2. "Nongovernmental telecommunications utility" means a telecommunications utility that is not a local government telecommunications utility.196.204(5)(ar)
(ar)196.204(5)(ar)1.
1. In addition to the other requirements of this section, each telecommunications service, relevant group of services and basic network function offered or used by a telecommunications utility shall be priced to exceed its total service long-run incremental cost. The commission may waive the applicability of this subdivision to a nongovernmental telecommunications utility's basic local exchange service if the commission determines that a waiver is consistent with the factors under s. 196.03 (6).196.204(5)(ar)2.
2. For purposes of subd. 1., the total service long-run incremental cost of a local government telecommunications utility shall take into account, by imputation or allocation, equivalent charges for all taxes, pole rentals, rights-of-way, licenses, and similar costs that are incurred by nongovernmental telecommunications utilities. This subdivision does not apply to a local government telecommunications utility that is subject to the exemption under s. 66.0422 (3n). This subdivision also does not apply to a telecommunications service, relevant group of services, or basic network function if all of the following conditions apply:196.204(5)(ar)2.a.
a. On November 1, 2003, the commission has determined that the local government telecommunications utility is an alternative telecommunications utility under s. 196.203.196.204(5)(ar)2.b.
b. A majority of the governing board of the local government telecommunications utility votes to submit the question of supporting the operation of the local government telecommunications utility to the electors in an advisory referendum and a majority of the voters in the local government telecommunications utility voting at the advisory referendum vote to support operation of the local government telecommunications utility.196.204(5)(ar)3.
3. Subdivision 2. does not apply to a telecommunications service, relevant group of services, or basic network function, that is used to provide broadband service and that is offered by a municipal telecommunications utility, if all of the following apply:196.204(5)(ar)3.a.
a. The municipal telecommunications utility offers the telecommunications service, relevant group of services, or basic network function on a nondiscriminatory basis to persons who provide broadband service to end users.196.204(5)(ar)3.b.
b. The municipality does not provide to end users the telecommunications service, relevant group of services, or broadband service provided by the basic network function.196.204(5)(ar)3.c.
c. The municipal utility determines that, at the time that the municipal utility authorizes the provision of the telecommunications service, relevant group of services, or basic network function, the municipal utility's provision of the service, group of services, or function does not compete with more than one provider of broadband service.196.204(5)(b)
(b) Unless ordered by the commission, par. (ar) does not apply to basic local exchange service or to business access line and usage service within a local calling area offered by a nongovernmental telecommunications utility with 150,000 or less access lines in use in this state. If par. (ar) does not apply, the nongovernmental telecommunications utility may not reduce its rates for basic local exchange service below the monthly rate under s. 196.215 (7) or total service long-run incremental cost, whichever is lower, and may not reduce its rates for business access line and usage service within a local calling area below total service long-run incremental cost.196.204(6)
(6)196.204(6)(a)
(a) In addition to the other requirements of this section, a telecommunications utility shall meet the imputation test in this subsection if all of the following apply:196.204(6)(a)1.
1. The telecommunications utility has a service offering that competes with an offering of another telecommunications provider.196.204(6)(a)2.
2. The other telecommunications provider's offering utilizes a service, including any unbundled service element or basic network function, from the telecommunications utility that is not available within the relevant market or geographic area on reasonably comparable terms and conditions from any other telecommunications provider.196.204(6)(a)3.
3. The telecommunications utility's own offering uses that same noncompetitive service, or its functional equivalent.196.204(6)(b)
(b) The price of a telecommunications service subject to an imputation test shall exceed the sum of all of the following:196.204(6)(b)1.
1. The tariffed rates, including access, carrier common line, residual interconnection and similar charges, for the noncompetitive service or its functional equivalent that is actually used by the telecommunications utility in its service offering, as those rates would be charged any customer for the use of that service.196.204(6)(b)2.
2. The total service long-run incremental costs of all other components of the telecommunications utility's service offering, including access charges actually paid.196.204(6)(c)
(c) Upon complaint of a telecommunications utility and after notice and opportunity for hearing, the commission may make reasonable adjustments to the methodology specified in this subsection if the commission finds that adjustments are appropriate in order to recognize network efficiencies in the provision of services by the utility and will not give the utility a competitive advantage. The commission may not make an adjustment under this paragraph before January 1, 1998, for a telecommunications utility with more than 500,000 access lines in use in this state.196.204(6)(d)
(d)196.204(6)(d)1.
1. The commission may suspend the application of the imputation test for basic local exchange service if that action is consistent with the factors under s. 196.03 (6).196.204(6)(d)2.
2. Unless ordered by the commission, par. (b) does not apply to basic local exchange service or to business access line and usage service within a local calling area offered by a telecommunications utility with 150,000 or less access lines in use in this state. If par. (b) does not apply, the telecommunications utility may not reduce its rates for basic local exchange service below the monthly rate under s. 196.215 (7) and may not reduce its rates for business access line and usage service within a local calling area.196.204 - ANNOT.
History: 1985 a. 297; 1993 a. 496; 2003 a. 278, 327; 2007 a. 42.