U-11043

S T A T E O F M I C H I G A N

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

* * * * *

In the matter, on the Commission's own motion,)

to establish billing standards for basic residential )

telecommunication service.)Case No. U-11043

)

At the June 18, 1996 meeting of the Michigan Public Service Commission in Lansing, Michigan.

PRESENT: Hon. John G. Strand, Chairman

Hon. John C. Shea, Commissioner

ORDER FORMALLY ADOPTING ADMINISTRATIVE RULES

On February 22, 1996, the Commission commenced this rulemaking proceeding pursuant to the authority granted in section 213 of the Michigan Telecommunications Act, 1991 PA 179, as amended by 1995 PA 216, MCL 484.2101 et seq.; MSA 22.1469(101) et seq. By order dated May 31, 1996, the Commission adopted administrative rules regarding billing standards for basic residential telecommunication service and transmitted the rules to the Legislative Service Bureau and the Office of Regulatory Reform for their approval. The Legislative Service Bureau approved the form of the proposed rules on June 3, 1996. The Office of Regulatory Reform approved the legality of the proposed rules on June 5, 1996.

On June 13, 1996, the Michigan Cable Telecommunications Association (MCTA) filed a petition for clarification that requested adoption of an additional administrative rule to explicitly authorize providers of basic local exchange service to assess reasonable late payment charges to the accounts of customers that are delinquent.

The Commission finds that the rule proposed by the MCTA is not necessary. Unlike R 460.2211 to R 460.2279, which are being rescinded, the billing standards that are being formally adopted by this order do not prohibit the assessment of late payment charges. Moreover, in several previous orders the Commission has already indicated that, in the absence of a prohibition, the assessment of a late payment charge by a provider of basic local exchange service is sufficiently related to the provision of basic local exchange service to be governed by the filing of a tariff in accordance with the requirements of MCL 484.2202(b); MSA 22.1469(202)(b). The Commission FINDS that:

a. Jurisdiction is pursuant to 1991 PA 179, as amended by 1995 PA 216, MCL 484.2101 et seq.; MSA 22.1469(101) et seq.; 1969 PA 306, as amended, MCL 24.201 et seq.; MSA 3.560(101) et seq.; and the Commission's Rules of Practice and Procedure, 1992 AACS, R 460.17101 et seq.

b. Administrative rules regarding billing standards for basic residential telecommunication service should be formally adopted by the Commission and transmitted to the Office of Regulatory Reform for filing with the Secretary of State.

c. The petition for clarification filed by the MCTA should be denied because the Commission is not persuaded that the administrative rules need to be revised or clarified with regard to the issue of whether providers of basic local exchange service can assess late payment charges to the accounts of customers that are delinquent.

THEREFORE, IT IS ORDERED that:

A. The administrative rules regarding billing standards for basic residential telecommunication service, attached as Exhibit A, are formally adopted.

B. The administrative rules regarding billing standards for basic residential telecommunication service shall be transmitted to the Office of Regulatory Reform for filing with the Secretary of State in accordance with the requirements of law.

C. The petition for clarification filed by the Michigan Cable Telecommunications Association is denied.

The Commission reserves jurisdiction and may issue further orders as necessary.

MICHIGAN PUBLIC SERVICE COMMISSION

/s/ John G. Strand

Chairman

( S E A L )

/s/ John C. Shea

Commissioner

By its action of June 18, 1996.

/s/ Dorothy Wideman

Its Executive Secretary THEREFORE, IT IS ORDERED that:

A. The administrative rules regarding billing standards for basic residential telecommunication service, attached as Exhibit A, are formally adopted.

B. The administrative rules regarding billing standards for basic residential telecommunication service shall be transmitted to the Office of Regulatory Reform for filing with the Secretary of State in accordance with the requirements of law.

C. The petition for clarification filed by the Michigan Cable Telecommunications Association is denied.

The Commission reserves jurisdiction and may issue further orders as necessary.

MICHIGAN PUBLIC SERVICE COMMISSION

Chairman

Commissioner

By its action of June 18, 1996.

Its Executive SecretaryIn the matter, on the Commission's own motion,)

to establish billing standards for basic residential)

telecommunication service.)Case No. U-11043

)

Suggested Minute:

"Adopt and issue order dated June 18, 1996 formally adopting administrative rules regarding billing standards for basic residential telecommunication service and denying the petition for clarification filed by the Michigan Cable Telecommunications Association, as set forth in the order."


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