CODE OF VIRGINIA

RATES, CHARGES AND REGULATIONS FOR LOCAL EXCHANGE TELEPHONE SERVICES PROVIDED BY
NEW ENTRANTS (§ 56-481.2)

If, under subsection B of § 56-265.4:4, a certificate of public convenience and
necessity is issued to a new entrant to provide local exchange telephone
service, the Commission shall at the same time adopt a form of regulation for
the new entrant’s local exchange services and, upon application pursuant
to § 56-235.5, for the incumbent local exchange telephone company, that does
not regulate the earnings of either. In approving the form of regulation of the
new entrant’s local exchange services, the Commission shall do so in a
manner that is equitable to the new entrant and the incumbent local exchange
telephone company and in the public interest. In determining the appropriate
form of regulation for the new entrant, the Commission shall: (i) consider
whether the form of regulation reasonably protects the affordability of basic
local exchange telephone service, as such service is defined by the Commission,
and reasonably assures the continuation of quality local exchange telephone
service; and (ii) find that such action will not unreasonably prejudice or
disadvantage any class of telephone company customers or telephone service
providers, including the new entrant and incumbent local exchange telephone
company, and is in the public interest. In approving the appropriate form of
regulation for the new entrant, the Commission may take such action as it deems
appropriate in the public interest, with due consideration being given to the
competitiveness of the services, including deregulation and detariffing the
services. Nothing in this section shall be construed to deprive the Commission
of its power to modify the form of regulation, after notice and an opportunity
for hearing, if it finds that competition or the potential for competition no
longer effectively regulates the price of a service. Except as provided for in
this section and in subsection B of § 56-265.4:4, no other provision of law
relating to the regulation of rates, charges, and regulation of local exchange
telephone services shall apply to the provision of such services by new
entrants.

HISTORY: 1995, cc. 22, 35, 187; 2001, c. 75.