{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-235.5.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-235.5.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-235.5.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-235.5.html"}],"law_id":55844,"edition_id":1,"section_id":55844,"structure_id":14465,"section_number":"56-235.5","catch_line":"Telephone regulatory alternatives","history":"1993, c. 21; 1996, c. 18; 2002, cc. 479, 489; 2003, c. 711; 2009, c. 788.","full_text":"A\n\nAs used in this section, “telephone company” means any public service corporation or public service company which holds a certificate of public convenience and necessity to furnish local exchange telephone service, except that companies which are regulated pursuant to Chapter 16 (§ 56-485 et seq.) or 19 (§ 56-531 et seq.) of this title are not included within this definition.B\n\nIn regulating telephone services of any telephone company, and notwithstanding any provision of law to the contrary, the Commission, after giving notice and an opportunity for hearing, may replace the ratemaking methodology set forth in § 56-235.2 with any alternative form of regulation which: (i) protects the affordability of basic local exchange telephone service, as such service is defined by the Commission; (ii) reasonably ensures the continuation of quality local exchange telephone service; (iii) will not unreasonably prejudice or disadvantage any class of telephone company customers or other providers of competitive services; and (iv) is in the public interest. Alternatives may differ among telephone companies and may include, but are not limited to, the use of price regulation, ranges of authorized returns, categories of services, price indexing or other alternative forms of regulation. A hearing under this section shall include the right to present evidence and be heard. Prior to any hearing under this section, the Commission shall provide parties an opportunity to conduct discovery.C\n\nAny telephone company or company regulated pursuant to Chapter 16 (\u00a7 56-485 et seq.) or 19 (\u00a7 56-531 et seq.) of this title may apply to the Commission at any time to obtain an alternative form of regulation. The Commission shall approve the application if it finds, after notice to all affected parties and hearing, that the proposal meets the standards for an alternative form of regulation set forth in subsection B.1\n\nA Commission order, including appropriate findings of fact and conclusions of law, denying or approving, with or without modification, an application for an alternative form of regulation shall be entered no more than 90 days from the filing of the application, except that the Commission, upon notice to all parties in interest, may extend that period in additional 30-day increments not to exceed an additional 90 days in all.2\n\nIf the Commission approves the application with modifications, the telephone company, or company regulated pursuant to Chapter 16 (§ 56-485 et seq.) or 19 (§ 56-531 et seq.) of this title, may, at its option, withdraw its application and continue to be regulated under the form of regulation that existed immediately prior to the filing of the application, unless it is modified for a telephone company by the Commission pursuant to subsection B.D\n\nThe Commission may, after notice and opportunity for hearing, alter, amend or revoke any alternative form of regulation previously implemented if it finds that (i) the affordability of basic local exchange service, as such service is defined by the Commission, is threatened by the alternative form of regulation; (ii) the quality of local exchange telephone service has deteriorated or will deteriorate to the point that the public interest will not be served by continuation of the alternative form of regulation; (iii) the terms ordered by the Commission in connection with approval of a company’s application for alternative form of regulation have been violated; (iv) any class of telephone company customers or other providers of competitive services are being unreasonably prejudiced or disadvantaged by the alternative form of regulation; or (v) the alternative form of regulation is no longer in the public interest.E\n\nThe Commission shall have the authority, after notice to all affected parties and an opportunity for hearing, to determine whether any telephone service of a telephone company is subject to competition and to provide, either by rule or case-by-case determination, for deregulation, detariffing, or modified regulation determined by the Commission to be in the public interest for such competitive services.F\n\nThe Commission may determine telephone services of any telephone company to be competitive when it finds competition or the potential for competition in the market place is or can be an effective regulator of the price of those services. Such determination may be made by the Commission on a statewide or a more limited geographic basis, such as one or more political subdivisions or one or more telephone exchange areas, or on the basis of a category of customers, such as business or residential customers, or customers exceeding a revenue or service quantity threshold, or some combination thereof. The Commission may also determine bundles composed of a combination of competitive and noncompetitive services to be competitive if the noncompetitive services are available separately pursuant to tariff or otherwise. In determining whether competition effectively regulates the prices of services, the Commission shall consider: (i) the ease of market entry, (ii) the presence of other providers reasonably meeting the needs of consumers, and (iii) other factors the Commission considers relevant. For purposes of this section, the Commission shall consider all wireless communications providers that offer voice communications services to be facilities-based competitors owning wireline network facilities and reasonably meeting the needs of consumers, regardless of whether such wireless providers own wireline network facilities. In its determination, the Commission shall not exclude as a competitor any affiliate of the telephone company. Notwithstanding any other provisions of this subsection, any telephone services that are the functional equivalent of the services offered individually or as part of a bundle of services by a county, city or town pursuant to § 56-265.4:4 or Article 5.1 (§ 56-484.7:1 et seq.) of Chapter 15 of this title, either directly or pursuant to a public-private partnership, shall be deemed competitive services in the geographic area where the services of the county, city or town are offered for purposes of this article and any alternate regulatory plans approved by the Commission.G\n\nThe Commission shall monitor the competitiveness of any telephone service previously found by it to be competitive under any provision of subsection F above and may change that conclusion, if, after notice and an opportunity for hearing, it finds that competition no longer effectively regulates the price of that service.H\n\nWhenever the Commission adopts an alternative form of regulation pursuant to subsection B or C above, or determines that a service is competitive pursuant to subsections E and F above, the Commission shall adopt safeguards to protect consumers and competitive markets. At a minimum these safeguards must ensure that there is no cross subsidization of competitive services by monopoly services.I\n\nIf the Commission determines pursuant to subsections E and F that 75 percent or more of residential households or businesses in a telephone company’s incumbent territory are in areas that have been determined by the Commission to be competitive for a telephone service, the Commission shall expand, for that telephone service throughout the company’s incumbent territory, its competitive determination and apply the same regulatory treatment already adopted by the Commission for that telephone service in competitive areas, including any safeguards under subsection H.J\n\nIf a telephone company provides 90 percent or more of its residential and business lines access to fiber optic or copper-based broadband service, as defined by the Federal Communications Commission, within an exchange area, the Commission shall expand, for basic and associated telephone services in that exchange area, its competitive determination and apply the same regulatory treatment already adopted by the Commission for those services in competitive areas, including any safeguards under subsection H.","order_by":null,"text":{"0":{"id":204581,"text":"As used in this section, “telephone company” means any public service corporation or public service company which holds a certificate of public convenience and necessity to furnish local exchange telephone service, except that companies which are regulated pursuant to Chapter 16 (§ 56-485 et seq.) or 19 (§ 56-531 et seq.) of this title are not included within this definition.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":204582,"text":"In regulating telephone services of any telephone company, and notwithstanding any provision of law to the contrary, the Commission, after giving notice and an opportunity for hearing, may replace the ratemaking methodology set forth in § 56-235.2 with any alternative form of regulation which: (i) protects the affordability of basic local exchange telephone service, as such service is defined by the Commission; (ii) reasonably ensures the continuation of quality local exchange telephone service; (iii) will not unreasonably prejudice or disadvantage any class of telephone company customers or other providers of competitive services; and (iv) is in the public interest. Alternatives may differ among telephone companies and may include, but are not limited to, the use of price regulation, ranges of authorized returns, categories of services, price indexing or other alternative forms of regulation. A hearing under this section shall include the right to present evidence and be heard. Prior to any hearing under this section, the Commission shall provide parties an opportunity to conduct discovery.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":204583,"text":"Any telephone company or company regulated pursuant to Chapter 16 (\u00a7 56-485 et seq.) or 19 (\u00a7 56-531 et seq.) of this title may apply to the Commission at any time to obtain an alternative form of regulation. The Commission shall approve the application if it finds, after notice to all affected parties and hearing, that the proposal meets the standards for an alternative form of regulation set forth in subsection B.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":204584,"text":"A Commission order, including appropriate findings of fact and conclusions of law, denying or approving, with or without modification, an application for an alternative form of regulation shall be entered no more than 90 days from the filing of the application, except that the Commission, upon notice to all parties in interest, may extend that period in additional 30-day increments not to exceed an additional 90 days in all.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":204585,"text":"If the Commission approves the application with modifications, the telephone company, or company regulated pursuant to Chapter 16 (§ 56-485 et seq.) or 19 (§ 56-531 et seq.) of this title, may, at its option, withdraw its application and continue to be regulated under the form of regulation that existed immediately prior to the filing of the application, unless it is modified for a telephone company by the Commission pursuant to subsection B.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"5":{"id":204586,"text":"The Commission may, after notice and opportunity for hearing, alter, amend or revoke any alternative form of regulation previously implemented if it finds that (i) the affordability of basic local exchange service, as such service is defined by the Commission, is threatened by the alternative form of regulation; (ii) the quality of local exchange telephone service has deteriorated or will deteriorate to the point that the public interest will not be served by continuation of the alternative form of regulation; (iii) the terms ordered by the Commission in connection with approval of a company’s application for alternative form of regulation have been violated; (iv) any class of telephone company customers or other providers of competitive services are being unreasonably prejudiced or disadvantaged by the alternative form of regulation; or (v) the alternative form of regulation is no longer in the public interest.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"6":{"id":204587,"text":"The Commission shall have the authority, after notice to all affected parties and an opportunity for hearing, to determine whether any telephone service of a telephone company is subject to competition and to provide, either by rule or case-by-case determination, for deregulation, detariffing, or modified regulation determined by the Commission to be in the public interest for such competitive services.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"7":{"id":204588,"text":"The Commission may determine telephone services of any telephone company to be competitive when it finds competition or the potential for competition in the market place is or can be an effective regulator of the price of those services. Such determination may be made by the Commission on a statewide or a more limited geographic basis, such as one or more political subdivisions or one or more telephone exchange areas, or on the basis of a category of customers, such as business or residential customers, or customers exceeding a revenue or service quantity threshold, or some combination thereof. The Commission may also determine bundles composed of a combination of competitive and noncompetitive services to be competitive if the noncompetitive services are available separately pursuant to tariff or otherwise. In determining whether competition effectively regulates the prices of services, the Commission shall consider: (i) the ease of market entry, (ii) the presence of other providers reasonably meeting the needs of consumers, and (iii) other factors the Commission considers relevant. For purposes of this section, the Commission shall consider all wireless communications providers that offer voice communications services to be facilities-based competitors owning wireline network facilities and reasonably meeting the needs of consumers, regardless of whether such wireless providers own wireline network facilities. In its determination, the Commission shall not exclude as a competitor any affiliate of the telephone company. Notwithstanding any other provisions of this subsection, any telephone services that are the functional equivalent of the services offered individually or as part of a bundle of services by a county, city or town pursuant to § 56-265.4:4 or Article 5.1 (§ 56-484.7:1 et seq.) of Chapter 15 of this title, either directly or pursuant to a public-private partnership, shall be deemed competitive services in the geographic area where the services of the county, city or town are offered for purposes of this article and any alternate regulatory plans approved by the Commission.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"8":{"id":204589,"text":"The Commission shall monitor the competitiveness of any telephone service previously found by it to be competitive under any provision of subsection F above and may change that conclusion, if, after notice and an opportunity for hearing, it finds that competition no longer effectively regulates the price of that service.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"9":{"id":204590,"text":"Whenever the Commission adopts an alternative form of regulation pursuant to subsection B or C above, or determines that a service is competitive pursuant to subsections E and F above, the Commission shall adopt safeguards to protect consumers and competitive markets. At a minimum these safeguards must ensure that there is no cross subsidization of competitive services by monopoly services.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"10":{"id":204591,"text":"If the Commission determines pursuant to subsections E and F that 75 percent or more of residential households or businesses in a telephone company’s incumbent territory are in areas that have been determined by the Commission to be competitive for a telephone service, the Commission shall expand, for that telephone service throughout the company’s incumbent territory, its competitive determination and apply the same regulatory treatment already adopted by the Commission for that telephone service in competitive areas, including any safeguards under subsection H.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"11":{"id":204592,"text":"If a telephone company provides 90 percent or more of its residential and business lines access to fiber optic or copper-based broadband service, as defined by the Federal Communications Commission, within an exchange area, the Commission shall expand, for basic and associated telephone services in that exchange area, its competitive determination and apply the same regulatory treatment already adopted by the Commission for those services in competitive areas, including any safeguards under subsection H.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I"}},"ancestry":[{"id":14465,"edition_id":1,"name":"Services, Rates, Charges, Etc","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13238,"metadata":{},"date_created":"2026-06-26 03:48:13","date_modified":"2026-06-26 03:48:13","permalink":{"id":248755,"object_type":"structure","relational_id":14465,"identifier":"2","token":"56\/10\/2","url":"\/56\/10\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13238,"edition_id":1,"name":"Heat, Light, Power, Water and Other Utility Companies Generally","identifier":"10","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:30","date_modified":"2026-06-26 03:44:30","permalink":{"id":248721,"object_type":"structure","relational_id":13238,"identifier":"10","token":"56\/10","url":"\/56\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":87361,"structure_id":14465,"section_number":"56-234","catch_line":"Duty to furnish adequate service at reasonable and uniform rates","url":"\/56-234\/","token":"56\/10\/2\/56-234","metadata":false},{"id":74382,"structure_id":14465,"section_number":"56-234.1","catch_line":"Liability to customer for violation of duty to determine and charge lowest rate applicable","url":"\/56-234.1\/","token":"56\/10\/2\/56-234.1","metadata":false},{"id":56457,"structure_id":14465,"section_number":"56-234.2","catch_line":"Review of rates","url":"\/56-234.2\/","token":"56\/10\/2\/56-234.2","metadata":false},{"id":78493,"structure_id":14465,"section_number":"56-234.3","catch_line":"Approval of expenditures for and monitoring of new generation facilities and projected operation programs of electric utilities","url":"\/56-234.3\/","token":"56\/10\/2\/56-234.3","metadata":false},{"id":72152,"structure_id":14465,"section_number":"56-234.4","catch_line":"Authority to investigate utility operations to determine efficiency","url":"\/56-234.4\/","token":"56\/10\/2\/56-234.4","metadata":false},{"id":84236,"structure_id":14465,"section_number":"56-234.5","catch_line":"Required disclosure by certain officers and directors of certain utilities","url":"\/56-234.5\/","token":"56\/10\/2\/56-234.5","metadata":false},{"id":77453,"structure_id":14465,"section_number":"56-235","catch_line":"When Commission may fix rates, schedules, etc.; conformance with chapter","url":"\/56-235\/","token":"56\/10\/2\/56-235","metadata":false},{"id":85095,"structure_id":14465,"section_number":"56-235.1","catch_line":"Conservation of energy and capital resources","url":"\/56-235.1\/","token":"56\/10\/2\/56-235.1","metadata":false},{"id":57116,"structure_id":14465,"section_number":"56-235.10","catch_line":"Recovery of eligible safety activity costs; administration; procedure","url":"\/56-235.10\/","token":"56\/10\/2\/56-235.10","metadata":false},{"id":68057,"structure_id":14465,"section_number":"56-235.11","catch_line":"Retail rates of affiliated water utilities","url":"\/56-235.11\/","token":"56\/10\/2\/56-235.11","metadata":false},{"id":69890,"structure_id":14465,"section_number":"56-235.12","catch_line":"Economic development programs","url":"\/56-235.12\/","token":"56\/10\/2\/56-235.12","metadata":false},{"id":80899,"structure_id":14465,"section_number":"56-235.1:1","catch_line":"Rates for stand-by electric service at renewable cogeneration facilities","url":"\/56-235.1_1\/","token":"56\/10\/2\/56-235.1_1","metadata":false},{"id":80993,"structure_id":14465,"section_number":"56-235.1:2","catch_line":"Costs of using small, women-owned, or minority-owned businesses","url":"\/56-235.1_2\/","token":"56\/10\/2\/56-235.1_2","metadata":false},{"id":62621,"structure_id":14465,"section_number":"56-235.2","catch_line":"All rates, tolls, etc., to be just and reasonable to jurisdictional customers; findings and conclusions to be set forth; alternative forms of regulation for electric companies","url":"\/56-235.2\/","token":"56\/10\/2\/56-235.2","metadata":false},{"id":66652,"structure_id":14465,"section_number":"56-235.3","catch_line":"Procedures for investigation of rate applications","url":"\/56-235.3\/","token":"56\/10\/2\/56-235.3","metadata":false},{"id":63163,"structure_id":14465,"section_number":"56-235.4","catch_line":"Prohibition of multiple rate increases within any twelve-month period; exception","url":"\/56-235.4\/","token":"56\/10\/2\/56-235.4","metadata":false},{"id":55844,"structure_id":14465,"section_number":"56-235.5","catch_line":"Telephone regulatory alternatives","url":"\/56-235.5\/","token":"56\/10\/2\/56-235.5","metadata":false},{"id":87078,"structure_id":14465,"section_number":"56-235.5:1","catch_line":"Local exchange telephone service competition policy","url":"\/56-235.5_1\/","token":"56\/10\/2\/56-235.5_1","metadata":false},{"id":71641,"structure_id":14465,"section_number":"56-235.6","catch_line":"Optional performance-based regulation of certain utilities","url":"\/56-235.6\/","token":"56\/10\/2\/56-235.6","metadata":false},{"id":77670,"structure_id":14465,"section_number":"56-235.7","catch_line":"Jurisdiction of Commission when federal governmental facility ceases to be retail customer of electric utility","url":"\/56-235.7\/","token":"56\/10\/2\/56-235.7","metadata":false},{"id":78685,"structure_id":14465,"section_number":"56-235.8","catch_line":"Retail supply choice for natural gas customers","url":"\/56-235.8\/","token":"56\/10\/2\/56-235.8","metadata":false},{"id":62516,"structure_id":14465,"section_number":"56-235.9","catch_line":"Recovery of funds used for capital projects prior to a rate case for strategic natural gas facilities","url":"\/56-235.9\/","token":"56\/10\/2\/56-235.9","metadata":false},{"id":59697,"structure_id":14465,"section_number":"56-236","catch_line":"Public utilities required to file schedules of rates and charges; rules and regulations; when detariffing of telephone services to be permitted","url":"\/56-236\/","token":"56\/10\/2\/56-236","metadata":false},{"id":85571,"structure_id":14465,"section_number":"56-236.1","catch_line":"Rates to be charged churches","url":"\/56-236.1\/","token":"56\/10\/2\/56-236.1","metadata":false},{"id":74562,"structure_id":14465,"section_number":"56-236.2","catch_line":"Suspension of service to sewerage system","url":"\/56-236.2\/","token":"56\/10\/2\/56-236.2","metadata":false},{"id":57569,"structure_id":14465,"section_number":"56-237","catch_line":"How changes in rates effected; notice required; changes to be indicated on schedules","url":"\/56-237\/","token":"56\/10\/2\/56-237","metadata":false},{"id":64233,"structure_id":14465,"section_number":"56-237.1","catch_line":"Notification of intent to seek rate change in schedules required to be filed under \u00a7 56-236","url":"\/56-237.1\/","token":"56\/10\/2\/56-237.1","metadata":false},{"id":67487,"structure_id":14465,"section_number":"56-237.2","catch_line":"Public hearings on protests or objections to rate changes","url":"\/56-237.2\/","token":"56\/10\/2\/56-237.2","metadata":false},{"id":80068,"structure_id":14465,"section_number":"56-238","catch_line":"Suspension of proposed rates, etc.; investigation; effectiveness of rates pending investigation and subject to bond; fixing reasonable rates, etc","url":"\/56-238\/","token":"56\/10\/2\/56-238","metadata":false},{"id":78378,"structure_id":14465,"section_number":"56-239","catch_line":"Appeal from action of Commission","url":"\/56-239\/","token":"56\/10\/2\/56-239","metadata":false},{"id":64527,"structure_id":14465,"section_number":"56-240","catch_line":"Proposed rates, etc., or changes thereof, not suspended effective subject to later change by Commission; refund or credit; appeal; investor-owned public utilities required to show increase complies with \u00a7 56-235.2","url":"\/56-240\/","token":"56\/10\/2\/56-240","metadata":false},{"id":57241,"structure_id":14465,"section_number":"56-241","catch_line":"Rates of telephone companies","url":"\/56-241\/","token":"56\/10\/2\/56-241","metadata":false},{"id":83712,"structure_id":14465,"section_number":"56-241.1","catch_line":"Flat and measured telephone rates; certain rates prohibited","url":"\/56-241.1\/","token":"56\/10\/2\/56-241.1","metadata":false},{"id":74999,"structure_id":14465,"section_number":"56-241.2","catch_line":"Approval of rates for resale of telephone service","url":"\/56-241.2\/","token":"56\/10\/2\/56-241.2","metadata":false},{"id":72101,"structure_id":14465,"section_number":"56-242","catch_line":"Temporary reduction of rates","url":"\/56-242\/","token":"56\/10\/2\/56-242","metadata":false},{"id":79154,"structure_id":14465,"section_number":"56-243","catch_line":"Duration of such temporary reduction","url":"\/56-243\/","token":"56\/10\/2\/56-243","metadata":false},{"id":84025,"structure_id":14465,"section_number":"56-244","catch_line":"Increase to make up for losses due to excessive temporary reduction","url":"\/56-244\/","token":"56\/10\/2\/56-244","metadata":false},{"id":67793,"structure_id":14465,"section_number":"56-245","catch_line":"Temporary increase in rates","url":"\/56-245\/","token":"56\/10\/2\/56-245","metadata":false},{"id":75868,"structure_id":14465,"section_number":"56-245.1","catch_line":"Meters to be kept in good working condition; defective meters","url":"\/56-245.1\/","token":"56\/10\/2\/56-245.1","metadata":false},{"id":80955,"structure_id":14465,"section_number":"56-245.1:1","catch_line":"Customers to be notified about nuclear emergency evacuation plans","url":"\/56-245.1_1\/","token":"56\/10\/2\/56-245.1_1","metadata":false},{"id":61620,"structure_id":14465,"section_number":"56-245.1:2","catch_line":"Customers to be notified of renewable power options","url":"\/56-245.1_2\/","token":"56\/10\/2\/56-245.1_2","metadata":false},{"id":70183,"structure_id":14465,"section_number":"56-245.1:3","catch_line":"Disconnection suspension for utilities","url":"\/56-245.1_3\/","token":"56\/10\/2\/56-245.1_3","metadata":false},{"id":86241,"structure_id":14465,"section_number":"56-245.1:4","catch_line":"Notice procedures for nonpayment; disconnecting utility service","url":"\/56-245.1_4\/","token":"56\/10\/2\/56-245.1_4","metadata":false}],"previous_section":{"id":63163,"structure_id":14465,"section_number":"56-235.4","catch_line":"Prohibition of multiple rate increases within any twelve-month period; exception","url":"\/56-235.4\/","token":"56\/10\/2\/56-235.4","metadata":false},"next_section":{"id":87078,"structure_id":14465,"section_number":"56-235.5:1","catch_line":"Local exchange telephone service competition policy","url":"\/56-235.5_1\/","token":"56\/10\/2\/56-235.5_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-235.5\/","history_text":"

This law was first created in 1993. The record of its establishment is cataloged in chapter 21 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1993 \u201cActs\u201d aren\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1996, chapter 18<\/a>; in 2002, chapters 479<\/a> and 489<\/a>; in 2003, chapter 711<\/a>; in 2009, chapter 788<\/a>.<\/p>","references":[{"id":58465,"section_number":"56-481.2","catch_line":"Rates, charges and regulations for local exchange telephone services provided by new entrants","order_by":null,"url":"\/56-481.2\/"},{"id":78043,"section_number":"56-54.2","catch_line":"Definitions","order_by":null,"url":"\/56-54.2\/"},{"id":61976,"section_number":"56-57","catch_line":"Securities to which chapter is applicable","order_by":null,"url":"\/56-57\/"}],"refers_to":[{"id":62621,"section_number":"56-235.2","catch_line":"All rates, tolls, etc., to be just and reasonable to jurisdictional customers; findings and conclusions to be set forth; alternative forms of regulation for electric companies","order_by":null,"url":"\/56-235.2\/"},{"id":55350,"section_number":"56-265.4:4","catch_line":"Certificate to operate as a telephone utility","order_by":null,"url":"\/56-265.4_4\/"},{"id":60584,"section_number":"56-484.7:1","catch_line":"Offering of communications services","order_by":null,"url":"\/56-484.7_1\/"},{"id":63853,"section_number":"56-485","catch_line":"Short title","order_by":null,"url":"\/56-485\/"},{"id":86664,"section_number":"56-531","catch_line":"Definitions","order_by":null,"url":"\/56-531\/"}],"permalink":{"id":248821,"object_type":"law","relational_id":55844,"identifier":"56-235.5","token":"56\/10\/2\/56-235.5","url":"\/56-235.5\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-235.5\/","token":"56\/10\/2\/56-235.5","dublin_core":{"Title":"Telephone regulatory alternatives","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-235.5","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “telephone company<\/span>” means any public service corporation<\/span> or public service company<\/span> which holds a certificate of public convenience and necessity to furnish local exchange telephone service<\/span>, except that companies which are regulated pursuant to Chapter 16 (§ 56-485<\/a> et seq.) or 19 (§ 56-531<\/a> et seq.) of this title are not included within this definition. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In regulating telephone services of any telephone company<\/span>, and notwithstanding any provision of law<\/span> to the contrary, the Commission<\/span>, after giving notice and an opportunity for hearing<\/span>, may replace the ratemaking methodology set forth in § 56-235.2<\/a> with any alternative form of regulation which: (i) protects the affordability of basic local exchange telephone service<\/span>, as such service is defined by the Commission<\/span>; (ii) reasonably ensures the continuation of quality local exchange telephone service<\/span>; (iii) will not unreasonably prejudice or disadvantage any class of telephone company<\/span> customers or other providers of competitive services; and (iv) is in the public interest. Alternatives may differ among telephone companies and may include, but are not limited to, the use of price regulation, ranges of authorized returns, categories of services, price indexing or other alternative forms of regulation. A hearing<\/span> under this section shall include the right to present evidence<\/span> and be heard. Prior to any hearing<\/span> under this section, the Commission<\/span> shall provide parties an opportunity to conduct discovery<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any telephone company<\/span> or company regulated pursuant to Chapter 16 (\u00a7 56-485<\/a> et seq.) or 19 (\u00a7 56-531<\/a> et seq.) of this title may apply to the Commission<\/span> at any time to obtain an alternative form of regulation. The Commission<\/span> shall approve the application if it finds, after notice to all affected parties and hearing<\/span>, that the proposal meets the standards for an alternative form of regulation set forth in subsection B. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A Commission<\/span> order<\/span>, including appropriate findings<\/span> of fact<\/span> and conclusions of law<\/span>, denying or approving, with or without modification, an application for an alternative form of regulation shall be entered no more than 90 days from the filing of the application, except that the Commission<\/span>, upon notice to all parties in interest, may extend that period in additional 30-day increments not to exceed an additional 90 days in all. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the Commission<\/span> approves the application with modifications, the telephone company<\/span>, or company regulated pursuant to Chapter 16 (§ 56-485<\/a> et seq.) or 19 (§ 56-531<\/a> et seq.) of this title, may, at its option, withdraw its application and continue to be regulated under the form of regulation that existed immediately prior to the filing of the application, unless it is modified for a telephone company<\/span> by the Commission<\/span> pursuant to subsection B. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Commission<\/span> may, after notice and opportunity for hearing<\/span>, alter, amend<\/span> or revoke any alternative form of regulation previously implemented if it finds that (i) the affordability of basic local exchange service, as such service is defined by the Commission<\/span>, is threatened by the alternative form of regulation; (ii) the quality of local exchange telephone service<\/span> has deteriorated or will deteriorate to the point that the public interest will not be served by continuation of the alternative form of regulation; (iii) the terms ordered by the Commission<\/span> in connection with approval of a company’s application for alternative form of regulation have been violated; (iv) any class of telephone company<\/span> customers or other providers of competitive services are being unreasonably prejudiced or disadvantaged by the alternative form of regulation; or (v) the alternative form of regulation is no longer in the public interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Commission<\/span> shall have the authority, after notice to all affected parties and an opportunity for hearing<\/span>, to determine whether any telephone service of a telephone company<\/span> is subject to competition and to provide, either by rule or case-by-case determination, for deregulation, detariffing, or modified regulation determined by the Commission<\/span> to be in the public interest for such competitive services. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Commission<\/span> may determine telephone services of any telephone company<\/span> to be competitive when it finds competition or the potential for competition in the market place is or can be an effective regulator of the price of those services. Such determination may be made by the Commission<\/span> on a statewide or a more limited geographic basis, such as one or more political subdivisions or one or more telephone exchange areas, or on the basis of a category of customers, such as business or residential customers, or customers exceeding a revenue or service quantity threshold, or some combination thereof. The Commission<\/span> may also determine bundles composed of a combination of competitive and noncompetitive services to be competitive if the noncompetitive services are available separately pursuant to tariff or otherwise. In determining whether competition effectively regulates the prices of services, the Commission<\/span> shall consider: (i) the ease of market entry, (ii) the presence of other providers reasonably meeting the needs of consumers, and (iii) other factors the Commission<\/span> considers relevant. For purposes of this section, the Commission<\/span> shall consider all wireless communications providers that offer voice communications services to be facilities-based competitors owning wireline network facilities and reasonably meeting the needs of consumers, regardless of whether such wireless providers own wireline network facilities. In its determination, the Commission<\/span> shall not exclude as a competitor any affiliate of the telephone company<\/span>. Notwithstanding any other provisions of this subsection, any telephone services that are the functional equivalent of the services offered individually or as part of a bundle of services by a county, city or town pursuant to § 56-265.4:4<\/a> or Article 5.1 (§ 56-484.7:1<\/a> et seq.) of Chapter 15 of this title, either directly or pursuant to a public-private partnership, shall be deemed competitive services in the geographic area where the services of the county, city or town are offered for purposes of this article and any alternate regulatory plans approved by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The Commission<\/span> shall monitor the competitiveness of any telephone service previously found by it to be competitive under any provision of subsection F above and may change that conclusion, if, after notice and an opportunity for hearing<\/span>, it finds that competition no longer effectively regulates the price of that service. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Whenever the Commission<\/span> adopts an alternative form of regulation pursuant to subsection B or C above, or determines that a service is competitive pursuant to subsections E and F above, the Commission<\/span> shall adopt safeguards to protect consumers and competitive markets. At a minimum these safeguards must ensure that there is no cross subsidization of competitive services by monopoly services. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> If the Commission<\/span> determines pursuant to subsections E and F that 75 percent or more of residential households or businesses in a telephone company<\/span>’s incumbent territory are in areas that have been determined by the Commission<\/span> to be competitive for a telephone service, the Commission<\/span> shall expand, for that telephone service throughout the company’s incumbent territory, its competitive determination and apply the same regulatory treatment already adopted by the Commission<\/span> for that telephone service in competitive areas, including any safeguards under subsection H. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> If a telephone company<\/span> provides 90 percent or more of its residential and business lines access to fiber optic or copper-based broadband service, as defined by the Federal Communications Commission<\/span>, within an exchange area, the Commission<\/span> shall expand, for basic and associated telephone services in that exchange area, its competitive determination and apply the same regulatory treatment already adopted by the Commission<\/span> for those services in competitive areas, including any safeguards under subsection H. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTELEPHONE REGULATORY ALTERNATIVES (\u00a7 56-235.5)\n\nA. As used in this section, “telephone company” means any public\nservice corporation or public service company which holds a certificate of\npublic convenience and necessity to furnish local exchange telephone service,\nexcept that companies which are regulated pursuant to Chapter 16 (§ 56-485\net seq.) or 19 (§ 56-531 et seq.) of this title are not included within\nthis definition.\n\nB. In regulating telephone services of any telephone company, and\nnotwithstanding any provision of law to the contrary, the Commission, after\ngiving notice and an opportunity for hearing, may replace the ratemaking\nmethodology set forth in § 56-235.2 with any alternative form of regulation\nwhich: (i) protects the affordability of basic local exchange telephone service,\nas such service is defined by the Commission; (ii) reasonably ensures the\ncontinuation of quality local exchange telephone service; (iii) will not\nunreasonably prejudice or disadvantage any class of telephone company customers\nor other providers of competitive services; and (iv) is in the public interest.\nAlternatives may differ among telephone companies and may include, but are not\nlimited to, the use of price regulation, ranges of authorized returns,\ncategories of services, price indexing or other alternative forms of regulation.\nA hearing under this section shall include the right to present evidence and be\nheard. Prior to any hearing under this section, the Commission shall provide\nparties an opportunity to conduct discovery.\n\nC. Any telephone company or company regulated pursuant to Chapter 16 (\u00a7 56-485\net seq.) or 19 (\u00a7 56-531 et seq.) of this title may apply to the Commission at\nany time to obtain an alternative form of regulation. The Commission shall\napprove the application if it finds, after notice to all affected parties and\nhearing, that the proposal meets the standards for an alternative form of\nregulation set forth in subsection B.\n\n 1. A Commission order, including appropriate findings of fact and conclusions\n of law, denying or approving, with or without modification, an application for\n an alternative form of regulation shall be entered no more than 90 days from\n the filing of the application, except that the Commission, upon notice to all\n parties in interest, may extend that period in additional 30-day increments\n not to exceed an additional 90 days in all.\n\n 2. If the Commission approves the application with modifications, the\n telephone company, or company regulated pursuant to Chapter 16 (§ 56-485\n et seq.) or 19 (§ 56-531 et seq.) of this title, may, at its option,\n withdraw its application and continue to be regulated under the form of\n regulation that existed immediately prior to the filing of the application,\n unless it is modified for a telephone company by the Commission pursuant to\n subsection B.\n\nD. The Commission may, after notice and opportunity for hearing, alter, amend or\nrevoke any alternative form of regulation previously implemented if it finds\nthat (i) the affordability of basic local exchange service, as such service is\ndefined by the Commission, is threatened by the alternative form of regulation;\n(ii) the quality of local exchange telephone service has deteriorated or will\ndeteriorate to the point that the public interest will not be served by\ncontinuation of the alternative form of regulation; (iii) the terms ordered by\nthe Commission in connection with approval of a company’s application for\nalternative form of regulation have been violated; (iv) any class of telephone\ncompany customers or other providers of competitive services are being\nunreasonably prejudiced or disadvantaged by the alternative form of regulation;\nor (v) the alternative form of regulation is no longer in the public interest.\n\nE. The Commission shall have the authority, after notice to all affected parties\nand an opportunity for hearing, to determine whether any telephone service of a\ntelephone company is subject to competition and to provide, either by rule or\ncase-by-case determination, for deregulation, detariffing, or modified\nregulation determined by the Commission to be in the public interest for such\ncompetitive services.\n\nF. The Commission may determine telephone services of any telephone company to\nbe competitive when it finds competition or the potential for competition in the\nmarket place is or can be an effective regulator of the price of those services.\nSuch determination may be made by the Commission on a statewide or a more\nlimited geographic basis, such as one or more political subdivisions or one or\nmore telephone exchange areas, or on the basis of a category of customers, such\nas business or residential customers, or customers exceeding a revenue or\nservice quantity threshold, or some combination thereof. The Commission may also\ndetermine bundles composed of a combination of competitive and noncompetitive\nservices to be competitive if the noncompetitive services are available\nseparately pursuant to tariff or otherwise. In determining whether competition\neffectively regulates the prices of services, the Commission shall consider: (i)\nthe ease of market entry, (ii) the presence of other providers reasonably\nmeeting the needs of consumers, and (iii) other factors the Commission considers\nrelevant. For purposes of this section, the Commission shall consider all\nwireless communications providers that offer voice communications services to be\nfacilities-based competitors owning wireline network facilities and reasonably\nmeeting the needs of consumers, regardless of whether such wireless providers\nown wireline network facilities. In its determination, the Commission shall not\nexclude as a competitor any affiliate of the telephone company. Notwithstanding\nany other provisions of this subsection, any telephone services that are the\nfunctional equivalent of the services offered individually or as part of a\nbundle of services by a county, city or town pursuant to § 56-265.4:4 or\nArticle 5.1 (§ 56-484.7:1 et seq.) of Chapter 15 of this title, either\ndirectly or pursuant to a public-private partnership, shall be deemed\ncompetitive services in the geographic area where the services of the county,\ncity or town are offered for purposes of this article and any alternate\nregulatory plans approved by the Commission.\n\nG. The Commission shall monitor the competitiveness of any telephone service\npreviously found by it to be competitive under any provision of subsection F\nabove and may change that conclusion, if, after notice and an opportunity for\nhearing, it finds that competition no longer effectively regulates the price of\nthat service.\n\nH. Whenever the Commission adopts an alternative form of regulation pursuant to\nsubsection B or C above, or determines that a service is competitive pursuant to\nsubsections E and F above, the Commission shall adopt safeguards to protect\nconsumers and competitive markets. At a minimum these safeguards must ensure\nthat there is no cross subsidization of competitive services by monopoly\nservices.\n\nI. If the Commission determines pursuant to subsections E and F that 75 percent\nor more of residential households or businesses in a telephone company’s\nincumbent territory are in areas that have been determined by the Commission to\nbe competitive for a telephone service, the Commission shall expand, for that\ntelephone service throughout the company’s incumbent territory, its\ncompetitive determination and apply the same regulatory treatment already\nadopted by the Commission for that telephone service in competitive areas,\nincluding any safeguards under subsection H.\n\nJ. If a telephone company provides 90 percent or more of its residential and\nbusiness lines access to fiber optic or copper-based broadband service, as\ndefined by the Federal Communications Commission, within an exchange area, the\nCommission shall expand, for basic and associated telephone services in that\nexchange area, its competitive determination and apply the same regulatory\ntreatment already adopted by the Commission for those services in competitive\nareas, including any safeguards under subsection H.\n\nHISTORY: 1993, c. 21; 1996, c. 18; 2002, cc. 479, 489; 2003, c. 711; 2009, c.\n788.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}