49-31-4. Determination and approval of rates and prices by commission--Attribution of revenues, investments and expenses--Rules.

Any charge established for the provision of telecommunications services shall be fair and reasonable. The commission shall determine and approve individual rates to be charged by any telecommunications company for a noncompetitive service pursuant to § 49-31-1.4, if applicable, and pursuant to §§ 49-31-12, 49-31-12.2 and 49-31-12.4. Except as provided in § 49-31-4.1, the commission shall utilize rate of return regulation when determining the charge for a noncompetitive service.

The commission shall determine and approve individual prices to be charged by a telecommunications company for any emerging competitive service pursuant to §§ 49-31-1.4, 49-31-12, 49-31-12.2 and 49-31-12.5. However, there is no rate of return regulation of emerging competitive services and no rate of return or price regulation of fully competitive services.

The commission shall separate, assign and distribute a telecommunications company's revenues, investments, and expenses among all services offered. The commission shall, by rules promulgated pursuant to chapter 1-26, prescribe the methodologies by which a telecommunications company shall segregate its revenues, investments and expenses. The methodologies prescribed by the rules shall be in accord with federal and state law. No telecommunications company may use the revenues from emerging competitive services to subsidize fully competitive services or revenues from noncompetitive services to subsidize emerging competitive services or fully competitive services. Expenses and investment of fully competitive services may not be attributed to emerging competitive services or noncompetitive services and the expenses and investment of emerging competitive services may not be attributed to noncompetitive services.

Rates being charged by a telecommunications company on July 1, 1988, shall be deemed to be the fair, reasonable, and effective rates until changed or altered pursuant to this chapter.

Source: SDC 1939, § 52.1302; SL 1987, ch 345, § 44; SL 1988, ch 375, § 11; SL 1992, ch 328, § 7.



SDLRC - Codified Law 49-31-4 - Determination and approval of rates and prices by commission--Attribution of revenues, investments and expenses--Rules.

49-31-4.1. Hearings on price regulation--Petition--Adoption of price regulation for noncompetitive service.

The commission shall, on its own motion or upon petition, hold public hearings investigating methods of price regulation consistent with § 49-31-1.4 and chapter 1-26. Within thirty days of its receipt of a petition filed pursuant to this section, the commission shall issue a procedural schedule setting forth dates by which written direct testimony or data shall be filed and ordering the date for commencement of a hearing.

If the investigation indicates that pricing regulation is appropriate for any noncompetitive service because such regulation has a positive impact on universal service and is more reasonable and fair than rate of return regulation, the commission may adopt pricing regulation for any such noncompetitive service.

Source: SL 1988, ch 375, § 12; SL 1992, ch 328, § 8.



SDLRC - Codified Law 49-31-4 - Determination and approval of rates and prices by commission--Attribution of revenues, investments and expenses--Rules.

49-31-4.2. Uniform prices for intrastate interexchange telecommunications services--Volume discounts--Taxes.

A telecommunications company providing intrastate interexchange telecommunications services shall charge uniform prices on all routes where it offers the services. However, notwithstanding this section and § 49-31-11, a telecommunications company may offer or provide volume discounts and may pass through any state, municipal or local taxes in the specific geographic areas from which the taxes originate.

Source: SL 1988, ch 375, § 13; SL 1992, ch 328, § 9.



SDLRC - Codified Law 49-31-4 - Determination and approval of rates and prices by commission--Attribution of revenues, investments and expenses--Rules.

49-31-4.3. Accounts of other businesses--Consideration by commission--Disallowance of unreasonable profits--Burden of proof.

Each telecommunications company engaged directly or indirectly in any business other than that of providing telecommunications service shall keep and, if requested by the commission, render separately to the commission, in like manner and form the relevant accounts of all such other businesses. The provisions of this chapter apply to the books, accounts, papers and records of relevant transactions with such other businesses. All profits and losses of such other business may be considered by the commission as are relevant to the general fiscal condition of the telecommunications company. The commission, in determining the allowance for materials or services to be included in costs of operations for rate of return or price regulation for noncompetitive services, may disallow any unreasonable profit made in the sale of materials to or service supplied for any telecommunications company by any firm or corporation owned or controlled directly or indirectly by such company or any affiliate, subsidiary, parent company, associate or any corporation whose controlling stockholders are also controlling stockholders of such telecommunications company. The burden of proof shall be on the telecommunications company to prove that no unreasonable profit is involved.

Source: SL 1988, ch 375, § 14.