R746.  Public Service Commission, Administration.
R746-347.  Extended Area Service (EAS).
R746-347-1.  Purpose and Authority.
	A.  Authorization -- This rule is adopted under authority of Sections 54-3-3 and 54-8b-11.
	B.  Title -- This rule shall be known and may be cited as the "EAS Rule."
	C.  Scope and Applicability -- This rule shall supersede all criteria and procedures for establishment and restructuring of EAS previously in effect.  This rules applies to the establishment or restructuring of EAS or expanded EAS by incumbent telephone corporations.  Provisions of this rule requiring provision of information to the Division of Public Utilities or the Commission apply to all providers of public telecommunications services.

R746-347-2.  Definitions.
	A.  "Extended Area Service" (EAS) -- A local exchange public telecommunications service that enlarges the toll-free calling area to include two or more local exchange areas for which pre-EAS calls incurred long distance charges.  A larger local calling area may result in an increase in the separately itemized EAS rate that local exchange carriers charge for local telephone service.
	B.  "Local Calling Area" -- An area encompassing one or more local exchange areas between which public telecommunication services are furnished by the local exchange carrier in accordance with its local exchange service tariffs, without message telephone service or toll charges.
	C.  "Local Exchange Area" -- A geographic area used by a local exchange carrier to furnish and administer telecommunication services in accordance with its local exchange service tariffs.  It may consist of one or more contiguous central offices serving areas as further defined in R746-340-1.
	D.  "Committee" -- Committee of Consumer Services
	E.  "Division" -- Division of Public Utilities

R746-347-3.  Petitioning Process.
	A.  Establishment of EAS -- The establishment of new or expanded EAS may be initiated by the Commission, by a petition requesting the establishment of new or expanded EAS signed by the residential customers of an incumbent telephone corporation in a local exchange area, or a petition from the incumbent telephone corporation.
	B.  Residential Petition -- The residential petition shall contain signatures from customers of record of the petitioning exchange, but only one signature per account, meeting the following applicable criteria:
	1.  In a petitioning local exchange area in which the incumbent telephone corporation has fewer then 500 residential access lines, the petition must be signed by 55 percent of the residential customers of record of the incumbent telephone corporation.
	2.  In a petitioning local exchange area in which the incumbent telephone corporation has more than 500 but fewer than 1,500 residential access lines, the petition must be signed by customers representing the greater of 275 or 30 percent of the total number of residential customers of record of the incumbent telephone corporation.
	3.  In a local exchange area in which the incumbent telephone corporation has more then 1,500 residential access lines, the petition must be signed by customers representing 30 percent of the total number of residential customers of record of the incumbent telephone corporation.
	C.  Petition Form -- The petition form must state that the signatory is willing to pay an estimated price for EAS to be determined as provided in R746-347-4 which may be within or above the range of current EAS prices of the incumbent telephone corporation.  The current range of EAS prices of the incumbent telephone corporation shall be clearly set forth on each sheet of the petition.
	D.  Petition Signatures -- Signatures on the petition shall include the full name of the customer of record in addition to the billed party telephone number.
	E.  Petition Distribution -- The petition shall be filed with the Commission.  Copies of the petition shall be served upon the Division, Committee and the incumbent telephone corporation.  If the petition requests establishment of new or expanded EAS between areas served by two or more incumbent telephone corporations, a copy of the petition shall be served on each incumbent telephone corporation.

R746-347-4.  Cost-Based Pricing.
	A.  Cost-Based Study -- If the threshold criteria specified in R746-347-3 are clearly met, the Commission shall direct the incumbent telephone corporations to conduct a study determining cost-based prices of providing EAS to the petitioned route.  The study shall determine a precise cost-based EAS rate for both the petitioning and non-petitioning exchanges. These prices shall be used in the survey conducted pursuant to R746-347-5.
	B.  Costing and Pricing Methodology -- The incumbent carrier shall comply with a uniform EAS costing and pricing methodology for EAS rate development, which shall be jointly defined by the local exchange carrier, the Division and the Committee.  The EAS costing and pricing methodology shall comport in all material respects with Total Service Long Run Incremental Cost, as required by Subsections 54-8b-2(13) and 54-8b-3.3.
	C.  Route-Specific Assumptions -- EAS cost studies shall reflect route-specific assumptions of demand and direct costs attributable to facilities investment and operating expenses.
	D.  Lost Toll Revenue -- Calculation of the incremental EAS price attributable to expansion of a local calling area may not include as a cost element any estimate of lost toll revenue.
	E.  Stimulation Factor -- The engineered cost of trunk and circuit facilities converted from toll to local calling may include a specified stimulation factor to reflect carriage of larger traffic volumes resulting from the substitution of flat-rated EAS for usage-sensitive toll rates.  In deriving the stimulation factor, consideration shall be given estimated toll traffic provided by the local exchange carriers, foreign exchange lines, and toll resellers.
	F.  Filing of Study -- The local exchange carrier shall conduct the route-specific EAS cost and pricing analysis and shall file the study promptly upon completion.

R746-347-5.  Customer Survey for New or Expanded EAS.
	A.  When to Conduct Survey -- Upon approval by the Commission of the proposed prices pursuant to Section R746-347-4, a survey shall be conducted of residential telephone subscribers of the incumbent telephone corporation in each petitioning and each non-petitioning local exchange area proposed to be included in the new or expanded EAS.  The Division, Committee and involved incumbent telephone corporations shall arrange to conduct a poll within the affected local exchange areas.
	B.  Who to Survey -- A statistical sample of residential subscribers, sized to produce a final result with at least a ten percent level of significance with a plus or minus five percent margin of error shall be surveyed.
	C.  Public Interest -- The Commission will presume that the proposed EAS is in the public interest if:
	1.  the survey results indicate that at least 67 percent of the customers of the incumbent telephone corporation in each petitioning local exchange area desire EAS at the price represented in the survey questionnaire, and
	2.  the survey results further show that at least 30 percent of customers of the incumbent telephone corporation in each non-petitioning local exchange area desire EAS at the price represented in the survey questionnaire.
	D.  Minimum Monthly Increase -- Notwithstanding R746-347-5-C.2, if the cost study results show that the EAS rate increase in the non-petitioning exchange represents less than a 3.5 percent monthly increase in the local exchange carriers tariff for a basic dial-tone line and local usage, then the residential customer survey need not be conducted in the non-petitioning local exchange area.  The Commission will presume that the proposed EAS is in the public interest if 67 percent of the customers in the petitioning local exchange areas desire EAS at the price represented in the survey questionnaire.
	E.  When Customers Pay Entire Cost of EAS -- If the customer survey indicates that the criterion for R746-347-5.C.2 has not been met, the customers of the petitioning exchange area(s) may pay the entire cost of establishing the EAS route(s).  In this instance, the Commission will presume that the proposed EAS is in the public interest if the survey results indicate that 67 percent of the customers of the incumbent telephone corporation in each petitioning local exchange areas desire EAS at a price representing the petitioning exchange area(s) paying the entire cost of the proposed EAS.

R746-347-6.  Approval of EAS.
	If the criteria of R746-347-3 through R746-347-5 of this Rule are satisfied, the Commission may issue an order approving the establishment of EAS between the petitioning and non-petitioning exchanges at the prices approved by the Commission under R746-347-5.  Such EAS shall be mandatory for all customers of the incumbent telephone corporation in each petitioning and non-petitioning exchange unless otherwise ordered by the commission.

R746-347-7.  Restructuring of Existing EAS.
	Each incumbent telephone corporation providing EAS pursuant to tariff may petition the Commission for approval of a restructuring of EAS to simplify EAS prices or to reduce the number of EAS areas.  The petition shall be served upon the Division and Committee.  The petition shall be handled in accordance with the Commission?s rules of procedure for other petitions.  The Commission may grant or deny the petition in the public interest.

R746-347-8.  Information from Telecommunications Service Providers and Resellers.
	The Division may conduct discovery or otherwise obtain information from telecommunication service providers and resellers reasonably related to the consideration of an EAS petition, including, but not limited to traffic between petitioning and non-petitioning exchanges or areas carried by the telecommunications service providers or resellers.  Information provided to the Division shall be deemed to be confidential and shall be used only for purposes of this Rule and for no other purpose.

KEY:  extended area service, public utilities, telecommunications
Date of Enactment or Last Substantive Amendment:  June 30, 2003
Notice of Continuation:  February 14, 2018
Authorizing, and Implemented or Interpreted Law:  54-3-3; 54-8b-11