House approves telecommunications bill aimed at encouraging residential competition

The Utah House voted to pass House Bill 338, a set of changes to state telecommunications law intended to move the residential market toward competition by adjusting how wholesale and retail prices are treated under a forthcoming pricing-index system.

Sponsor Representative Susan J. Cohen said the measure is intended to encourage competition by ensuring retail prices do not drop below an identified wholesale floor once the Public Service Commission adopts a pricing index in 2001. The bill also directs the PSC to establish timelines for handling petitions on pricing flexibility and provides a limited consumer-protection mechanism to allow direct credits to customers when service quality is found faulty.

Representative Becker moved Amendment No. 3 to address the valuation and imputation of directory (Yellow Pages) assets into the rate base so that ratepayers would receive value for assets developed with ratepayer dollars. Supporters of the amendment argued the change would protect ratepayer interests; opponents contended the amendment would improperly pre-empt PSC authority and create inconsistency. After extended floor debate the amendment failed and HB 338 passed the House 64-7.

Why it matters: The bill alters regulatory footing as the state approaches a pricing-index transition, affecting how incumbent carriers and potential entrants compete for residential customers. Lawmakers emphasized the need to balance competition with consumer protection and the PSCs ongoing regulatory role.

The bill will be sent to the Senate for further consideration.