65-407 C.M.R. ch. 289
SUMMARY: This Chapter establishes consumer protection requirements associated with the provision of bundled services by Incumbent Local Exchange Carriers (ILECs); establishes methods for recording revenue from bundled services; establishes the upper and lower limits of bundled service prices that will result in predictable regulatory treatment of revenues; and establishes the treatment of certain consumer programs.
It is the purpose of this Chapter to:
A. Establish minimum consumer protection standards. Establish minimum consumer protection standards that all ILECs must meet when offering a bundled service. An ILEC may provide greater levels of consumer protection than those established in this Chapter.
B. Establish financial treatment of revenues. Establish methods for recording revenue from bundled services that will result in predictable regulatory treatment of those revenues, unless an ILEC is governed by an Alternative Form of Regulation.
C. Establish pricing parameters. Establish the lower limits of bundled service prices, unless an ILEC is governed by an Alternative Form of Regulation.
D. Establish the treatment of certain consumer programs. Establish the applicability of Lifeline, Link-Up, and discounted service for deaf, hard-of-hearing, and speech-impaired persons to all ILECs' bundled services.
A. Account balance. "Account balance" is the total amount owed by a customer that has been billed in accordance with this Chapter.
B. Advance billing. "Advance billing" is a requirement that a customer prepay charges for services that will be provided during a specific, identifiable period in the future. Advance billing does not include any funds retained as a security deposit.
C. Amount overdue. "Amount overdue" is the amount that an ILEC has billed to a customer and that has not been paid by the due date of the bill or by a date otherwise agreed upon.
D. Basic service. "Basic service" is single-party service, voice grade access to the public switched telephone network, Dual Tone Multi-frequency or its functional digital equivalent, access to emergency services, access to operator services, access to interexchange service, access to directory assistance, and access to toll limitation. Basic
service also includes all basic service attributes and standards mandated by federal and state statutes and Commission Rules.
access to the public switched telephone network.
T. Local Exchange Carrier. "Local Exchange Carrier" is any telephone utility that provides local exchange service."
U. Residential service. "Residential service" is telecommunications service that is provided to a residence and used primarily for domestic purposes.
V. Service provider. "Service provider" is any entity that offers a product or service to a customer, the charge for which appears on the bill of the ILEC.
W. Toll service. For purposes of this Chapter, "toll service" is intrastate or interstate interexchange telecommunications service, but does not include unlimited intrastate or interstate service made as a component of bundled service.
X. Toll service provider. "Toll service provider" is any service provider that provides toll service to its customers.
When the Commission or the Director of the Consumer Assistance Division determines that, due to an emergency, termination of telecommunications service by one or more ILECs would present a clear danger to the health or safety of customers, the Commission or the Consumer Assistance Division Director may declare a partial or complete moratorium on the termination or disconnection of telecommunications service by any or all ILECs offering bundled service.
An ILEC shall provide service and apply credit and collections policies to customers receiving bundled service without discrimination on the basis of race, color, ancestry, sex, age, national origin, religion, marital status, receipt of public assistance or the exercise of rights under state or federal consumer protection laws and pursuant to the terms of 35-A M.R.S.A. §702 (1).
A. Deceptive names prohibited. An ILEC offering bundled service may not use a company name that is deceptive or unreasonably confusing to consumers.
B. Application of Maine Unfair Trade Practices Act. An ILEC offering bundled service shall not engage in conduct prohibited by the Maine Unfair Trade Practices Act, 5 M.R.S.A. §§ 205-A-214 and related consumer protection statutes.
An ILEC offering bundled service shall comply with the Federal Communication Commission's Customer Proprietary Network Information Rules, 47 CFR §§ 64.2001-2009.
A. Before confirming the provision to a customer of a bundled service, an ILEC shall inform the customer:
1. Disconnection. That it may disconnect the bundled service of a customer for any reason not in violation of sections 4 and 5 of this Chapter, with 14-days notice to a residential customer and with 7-days notice to a nonresidential customer, with the exception that the customer must be transferred to basic service pursuant to section 11(C). If the ILEC charges a termination fee, it must disclose the existence and amount of the fee;
2. Calling area. Of the geographic area that will be included within the customer's bundled service calling area;
3. Pre-subscribed toll service and access to toll providers. Whether pre-subscribed toll service will be available and of any limitation regarding access to toll providers; and
4. Billing information. Of the billing period for the bundled service and any requirement for advance billing.
B. Lowest rate service plan. Upon the request of a customer receiving bundled service, an ILEC shall inform the customer of the lowest rate basic service plan available to that customer.
An ILEC shall provide customers with written confirmation of orders for bundled service generated by outbound sales calls. The written confirmation must include the specific terms and conditions for each bundled service ordered by the customer and must be provided no later than the time the customer receives the first bill for service. The written confirmation may be included with the first bill for services. Orders for bundled services generated by inbound calls from customers do not require written confirmation.
A. Services and fees.
1. Price, fees and terms and conditions. The written confirmation shall disclose the bundled service ordered by the customer with its separate price, late fees, fees for installation, disconnection, termination or cancellation, registration fees, and any other terms and conditions to which the customer is required to adhere.
2. Disputes. The written confirmation shall include instructions on how to dispute charges with the ILEC.
3. Price of service. The written confirmation shall include all relevant information necessary for the customer to calculate the full price of the bundled service.
B. Customer option to cancel order. Upon receipt of a written confirmation, a customer may, for any reason, cancel the order without penalty or further obligation. The customer
shall pay or formally dispute any charges incurred prior to canceling the service.
C. Electronic confirmation. In situations where an ILEC solicits the sale of a bundled service electronically, e.g. using the Internet, the written confirmation may also be provided by similar electronic means.
D. Written contracts for services. To the extent that the requirements of this section are consistent with the information contained in a written contract for services between the ILEC and the customer, the written contract can serve as the written notice required by this section. Written confirmation of an order is required, however, in situations where the written contract does not address each of the requirements of section A above. In such situations, the written notice may include only the requirements not included in the written contract.
A. Twenty-five day notice required. An ILEC must provide each of its customers at least 25 days written notice of any price increase or any change in the terms and conditions that will result in a price increase for a bundled service provided by the ILEC before the increase or change may take effect. A customer may terminate the bundled service without penalty at any time before the increase or change takes effect.
B. Adequate written notice. Written notice to customers of a price increase or change in terms and conditions that will result in a price increase provided in accordance with this section shall:
1. Form. Be in the form of a letter, a message on the bill, or a bill insert that contains only the notification language required by this section;
2. Readable and clear. Be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;
3. Not included with promotional material. Be sent or provided independently of any advertising or promotional material of any kind;
4. Content of notice. Notify the customer of the amount of the increase and the date the increase will take effect; and
5. Right to cancel. Notify the customer of the customer's right to cancel the bundled service for which the price increase or change in terms and conditions that will result in a price increase applies prior to the increase or change taking effect.
C. Failure to provide adequate written notice. A customer who is not supplied with adequate written notice in accordance with this section is not obligated to pay for any increase in the bill attributable to an increase in price or change in terms and conditions.
D. Customer refund. An ILEC shall refund or credit any increase in the customer's payments attributable to an increase in price or change in terms and conditions if the ILEC fails to provide adequate written notice in accordance with this section.
E. Notice of Customer Rights. An ILEC shall provide notice to its customers of the requirement for notification of price increases, as well as the customer's right to not pay the increases and to be reimbursed for payments that are attributable to an increase in price or change in terms and conditions where the customer was not properly notified. The notice shall be:
1. Form. In the form of a letter or bill insert or in the ILEC's directory and printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;
2. Separate document. A separate document containing only the notification language required by this section;
3. Customer receiving a new bundled service. Provided to each customer at the time the customer first accepts a bundled service; and
4. Annual notice. Provided to each existing customer receiving a bundled serive on an annual basis.
F. Exception. This section does not apply to an increase or change in terms and conditions associated with an individual customer contract or promotional offering, provided the customer was notified before entering the contract or accepting the offer that the price or terms and conditions were subject to change.
A. Bill content. Each bill issued by an ILEC shall:
1. Identification of ILEC. Include a clear and conspicuous identification of the ILEC providing the customer's bundled service. If the ILEC has more than one name, the name appearing on the bill must be the name used to market the service;
2. Date. Identify the date that the bill is issued;
3. Balance. Identify the balance in each billed account at the beginning of the current billing cycle, using a term such as "previous balance;"
4. Charges debited for current billing cycle. Identify the amount of the charges debited to each billed account during the current billing cycle, using a term such as "current service;"
5. Payments made. Identify the amount of payments made to each billed account from the previous billing cycle, using a term such as "payments."
6. Charges debited for past charges. Identify the amount of the charges debited to each billed account during the current billing cycle for untimely payment of past charges, using a term such as "late charge;"
1. 7. Closing dates and balance. Include the closing dates of the current billing cycle and the outstanding balance in each billed account on that date, specifying the 'current amount due' and the 'past due';
2. 8. Class of service. Identify the applicable class of service or otherwise recognizeable name of the bundled service as stated in the ILEC's bundled service literature;
3. 9. Due date. Include the statement, or payment, due date;
4. 10. Receipt deadline. Include the date by which payment of the new balance must be received to avoid assessment of a late charge;
5. 11. Interest rate. Identify the effective monthly interest rate that will be imposed if the bill is not paid by the due date;
6. 12. Contact information. Clearly and conspicuously disclose any information that the subscriber may need to make inquiries about, or contest, charges on the bill; and
7. 13. Customer service representatives. Include the toll-free phone number(s) for customer service representatives of the ILEC and any other service provider to which charges are due, and to which customer questions or disputes concerning bills or services should be directed.B. Compliance with federal 'truth-in-billing' rules. An ILEC shall comply with the Federal Communication Commission's 'Truth-in-Billing' Rules, 47 CFR §§ 64.2400-2401.C. Billing errors. An ILEC shall promptly notify a customer of a billing error after it discovers or is notified of the error. The ILEC shall correct the error within 45 days of discovery or notice. The ILEC shall investigate the possibility that a billing error may affect multiple customers and shall immediately notify the Consumer Assistance Division if more than 10 customers in the State are affected by a billing error.1. 1. Make-up bills. An ILEC may issue a corrected bill for previously unbilled bundled service, or for service billed below the correct rate, that was provided in the previous 12 months. An ILEC may agree to a settlement that abates all or a portion of the previously unbilled service.
2. 2. Refunds. An ILEC shall refund any charge billed in excess of correct rates within the previous 6 years from the date of discovery or notice.D. Late payment fees. An ILEC may charge a fee for the late payment of bundled service charges in accordance with a rate schedule consistent with Chapter 870 of the Commission's Rules.
A. Disconnection. An ILEC may disconnect a customer's bundled service for any reason not
in violation of sections 4 and 5 upon 14 days prior notice to residential customers and 7 days prior notice to nonresidential customers.
B. Content of disconnection notice. Each notice shall be in writing and conspicuously:
1. Disconnection date. Identify the disconnection date;
2. Services. Identify the services that will be disconnected;
3. Curability of disconnection. Indicate whether the disconnection may be cured and if so, how; and
4. Notice of transfer to basic service. That the customer will be transferred to a basic service rate and the treatment of any arrearages associated with the bundled service, as well as the customer's right to contact the CAD for assistance. The notice must include the CAD's current address, phone number, and website URL. C. Transfer to basic service upon disconnection from bundled service. In situations where a bundled service is disconnected, the ILEC must transfer the customer to basic service without an interruption of basic service. An arrearage accumulated as a result of bundled service shall not be considered an arrearage applicable to basic service for the purposes of applying the terms of Chapter 290. D. Interexchange service disconnections. If interexchange service is disconnected pursuant to this section, the disconnection must be completed in compliance with section 14 of Chapter 292 of the Commission's rules.
A. Toll-free line. An ILEC shall have a toll-free number for customers to call to resolve billing or service disputes regarding bundled services. B. Employees available. An ILEC shall have an adequate number of properly trained employees available during business hours to respond to questions from customers, resolve disputes, and address requests for bundled service. Customers calling the toll-free number discussed in section A above must be provided the opportunity to talk to a live customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system. C. Dispute resolution process. When an ILEC becomes aware of a dispute by a customer regarding a bundled service, whether or not disconnection is pending, the ILEC shall:
1. Investigate dispute. Investigate the dispute, preserving a record of the substance and results of the investigation;
2. Report results. Report the results of its investigation to the customer based on the record; and
3. Attempt to resolve dispute. Attempt in good faith to resolve the dispute.
D. Notification of right to file a complaint with the Consumer Assistance Division. If an ILEC cannot resolve the dispute with the customer after the procedures set forth above have been completed, the ILEC shall orally inform the customer of the right to file a complaint with the Consumer Assistance Division and of the toll-free telephone number of the Commission.E. CAD complaint process1. 1. Consumer Assistance Division acceptance of complaint. The Consumer Assistance Division may reject, without investigation, a complaint that is outside its jurisdiction or is without merit. A complaint may be considered to be 'without merit' if, among other things, the Consumer Assistance Division has previously issued a decision regarding the same issue that is the basis for the complaint. The customer may appeal the rejection of a complaint to the Commission. If the Consumer Assistance Division accepts a complaint, the Consumer Assistance Division shall investigate the complaint.
2. 2. Consumer Assistance Division investigation of a complaint. The Consumer Assistance Division will inform an ILEC in writing, by telephone, by e-mail, by fax, or by any other means that is acceptable to both the Consumer Assistance Division and the ILEC, that a complaint associated with a bundled service has been filed and the date of the filing. The Consumer Assistance Division will conduct an informal investigation of the dispute that may include:
1. a. an informal meeting with the customer and/or an ILEC representative;
2. b. a review of the written record of the ILEC's investigation required by section C above; and
3. c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that the Consumer Assistance Division deems relevant to the dispute.
3. 3. Provision of information to the Consumer Assistance Division by an ILEC. An ILEC shall provide information requested by the Consumer Assistance Division within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the utility's investigation of the customer's dispute required by section C above, or any other information in the ILEC's possession or that is readily available to the ILEC that the Consumer Assistance Division deems necessary to investigate the customer's dispute. If the ILEC cannot provide the requested information within the 10-day time period, it may request an extension from the Director of the Consumer Assistance Division or his designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.
4. 4. Decision. The Consumer Assistance Division shall complete its investigation and issue an oral or written decision as soon as practicable. The decision by the Consumer Assistance Division shall impose any just and reasonable requirements necessary to resolve the dispute.
5. Notice of appeal rights. When a decision is rendered, the Consumer Assistance Division shall inform the customer and the ILEC of the right to appeal the Consumer Assistance Division's decision to the Commission and of the rights of both parties while an appeal to the Commission is pending.
F. Appeal to the Commission
1. Appeal process. The customer or the ILEC may appeal a Consumer Assistance Division decision to the Commission by filing a notice of appeal with the Administrative Director of the Commission within 10 calendar days after the date of the decision. Notwithstanding section 6(D) of the Maine Rules of Civil Procedure and section 305 of the Commission's Rules of Practice and Procedure (Chapter 110), no additional time is allowed for mailing.
2. Commission review. The Commission shall review the decision to determine if it complies with applicable statutory and regulatory requirements, is based on sound facts, and does not represent an abuse of discretion by the Consumer Assistance Division.
3. Order. The Commission shall issue an order affirming the Consumer Assistance Division's decision or, if the decision is not affirmed, the Commission shall: a. remand the complaint to the Consumer Assistance Division for reconsideration with an explanation of the basis for the remand; b. remand the complaint back to CAD to gather further facts; or c. issue an order reversing or altering the Consumer Assistance Division's decision.
§ 13 TREATMENT OF CERTAIN CONSUMER PROGRAMS
A. Lifeline and Link-Up. An ILEC shall provide Lifeline and Link-Up pursuant to Chapter 294 of the Commission's rules to all customers that receive a bundled service and are eligible for these programs under the terms of Chapter 294. B. Discounted service for deaf, hard-of-hearing, and speech-impaired persons. The discount required by 35-A M.R.S.A. §7302 is not applicable to unlimited intrastate calling made as part of bundled service offered by an ILEC, but is applicable to any measured intrastate component included in a bundled service.
This Section shall not apply to an ILEC that is governed by an Alternative Form of Regulation as it is defined in 35-A M.R.S.A. Chapter 91.
1. Lower price limiter. The lower limit of the safe harbor for a bundled service price is the marginal cost of separately offering all components of the bundled service.
2. Reasonable estimations. For the purposes of this section, the utility may make a reasonable estimation of the lower price limiter.
1. Conformance to safe harbor. If the price of a bundled service falls within the safe harbor for a bundled service price established in section 14(A), the price will be considered just and reasonable for the purposes of ratemaking and establishing the level of universal service the ILEC receives.
2. Non-conformance. If the price of a bundled service does not fall within the safe harbor for a bundled service price established in section 14(A), the treatment of the revenues received from the bundled service shall be determined at the time the Commission determines the ILEC's revenue requirements or the level of universal service it receives.
This Section shall not apply to an ILEC that is governed by an Alternative Form of Regulation as it is defined in 35-A M.R.S.A. Chapter 91.
1. Jurisdictional revenue limiter. The discount percentage applied to jurisdictional revenues shall not exceed the discount percentage applied to non-jurisdictional revenues.
2. Calculations a. Discount percentage calculation. The “undiscounted revenue” is a reasonable estimation of the sum of the revenue that would be received for a group of bundled service components if those components were purchased individually. The “discount amount” is the difference between the undiscounted revenue and the revenue assumed to be actually received for those same bundled components when sold as part of the bundled service. The “discount percentage” is the ratio of the discount amount to the undiscounted revenue.
b. Jurisdictional revenues calculation. Jurisdictional revenues shall include revenues for all bundled service components that are or would be imputed to the ILEC for ratemaking purposes. For the purposes of this Chapter, intrastate interexchange service offered by an ILEC's affiliate shall be included in the ILEC's jurisdictional revenues.
c. Separating interexchange service. The intrastate portion of revenue derived from interexchange service that applies on an unseparated basis to both intrastate and interstate interexchange service shall be determined by applying the ratio of Maine intrastate directly assigned retail revenues (e.g., usage charged at a per-minute rate) to total (intrastate plus interstate) directly assigned retail revenue for service rendered in Maine. Upon petition by an ILEC, the Commission or the Director of Finance may approve an alternative separation method.
d. Purchases from a third party. A bundled service component that the ILEC purchases from a third party and for which the ILEC has no ability to obtain or extract a discount may be excluded from the calculations carried out pursuant to this section.
e. Subscriber Line Charge (SLC). The SLC may be excluded from the calculations carried out pursuant to this section.
f. Estimations. The ILEC may reasonably estimate portions of the discount percentage calculations by considering revenue that would be received by subsets of customers, by estimating minutes of use of unlimited services, and by other means made necessary by the terms of the bundled and individual services.
B. Treatment of safe harbor discount allocation
1. Conformance to safe harbor. If an ILEC allocates revenues received for a bundled service using the safe harbor for discount allocation established in section 15(A), the allocation will be considered just and reasonable for the purposes of ratemaking and establishing the level of universal service the ILEC receives.
2. Non-conformance. If an ILEC allocates revenues received for a bundled service using a method other than the safe harbor for discount allocation established in section 15(A), the treatment of the revenues received from the bundled service shall be determined at the time the Commission conducts a rate proceeding or determines the level of universal service the ILEC receives.
C. Reporting. For each bundled service it offers, the ILEC shall submit the following information, at the Commission's request and annually at a time to be established by the Commission.
1. The number of customers that received the bundled service
2. The annual revenue received in payment for the bundled service
3. Information that shows the extent to which the bundled service price is likely to conform to the safe harbor for a bundled service price
4. Information that shows the extent to which the ILEC's treatment of the bundled service is likely to conform to the safe harbor for discount allocation
If a provision of this Chapter conflicts with a provision in Chapter 290 or Chapter 292 of the Commission's rule, when providing bundled services the provisions of this Chapter shall apply.
A. General waiver. Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance Division, or the Hearing Examiner assigned to a proceeding related to this Chapter may grant the waiver.
B. Individual customer exemption
1. Request requirements. An ILEC may request that the Consumer Assistance Division grant an exemption from any provision of this Chapter in any case involving an individual customer whose conduct and known financial condition pose a clear danger of substantial losses to the ILEC. A request for exemption under this section must be made to the Consumer Assistance Division. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation must include a detailed statement of the facts alleged by the ILEC in support of the request. The ILEC shall immediately notify, in writing, the individual customer whose service would be affected by the proposed exemption, describing the nature and effect of the exemption requested and the facts alleged in support of the request.
2. Consumer Assistance Division investigation. The Consumer Assistance Division may reject, without investigation, any request that does not present facts that satisfy the standard of section 1 above. Before granting any exemption, the Consumer Assistance Division shall informally investigate the matter.
3. Decision. When the Consumer Assistance Division completes its investigation or summarily rejects the request, it shall issue a decision granting, denying, or granting in part the requested exemption. When the Consumer Assistance Division determines that an exemption is required to avoid a clear danger of substantial losses to the ILEC, it shall notify the customer and the ILEC of the decision. The notification may be made orally, but the Consumer Assistance Division shall promptly issue a written confirmation of the decision. The decision or written confirmation shall:
a. describe the nature and effect of the exemption;
b. explain why the exemption was granted or denied; and
c. inform the customer and the ILEC of the right to appeal the Consumer Assistance Division's decision to the Commission, as provided in section 4 below.
4. Appeal to Commission. By following the procedures in section 13 (F), a party may appeal a decision by the Consumer Assistance Division granting or denying, in whole or in part, a request for an exemption. If the Consumer Assistance Division grants an exemption, the ILEC may not act on the exemption until the appeal period expires.
BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission's Order Adopting Rule, Docket No. 2008-15 issued on June 24, 2008. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, Maine 04333-0018.
STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 704, and 7302.
EFFECTIVE DATE: This Rule was approved as to form and legality by the Attorney General on July 7, 2008. It was filed with the Secretary of State on July 8, 2008 and became effective on July 13, 2008.