(a) Provide adequate and safe service to the customers of this state; and

(b) Serve all customers in an adequate and nondiscriminatory manner.

(2) The obligations described in this section may be referenced as carrier of last resort obligations.

(3) The commission, upon petition from a telecommunications utility, cooperative corporation or municipality, may exempt the telecommunications utility, cooperative corporation or municipality from the obligations described in this section if the commission finds, for a property with four or more single-family dwellings, that the owner or developer of the property, or a person acting on behalf of the owner or developer:

(a) Permits an alternative service provider to install its facilities or equipment used to provide local telecommunications service based on a condition of exclusion of the telecommunications utility, cooperative corporation or municipality during the construction phase of the real property;

(b) Accepts or agrees to accept incentives or rewards from an alternative service provider that are contingent upon the provision of any or all local telecommunications services by one or more alternative service providers to the exclusion of the telecommunications utility, cooperative corporation or municipality; or

(c) Collects from the occupants or residents of the property mandatory charges for the provision of any local telecommunications service provided to the occupants or residents by an alternative service provider in any manner, including, but not limited to, collection through rent, fees or dues.

(4) If the commission, upon petition from any interested person located within the property for which the commission has waived the carrier of last resort obligations under subsection (3) of this section, finds that the existing public convenience and necessity requires reinstatement of the carrier of last resort obligations, then the commission has the power to assign the obligations to a telecommunications utility, cooperative corporation or municipality after a public hearing. The commission shall determine how the costs of serving the customers are allocated so that the telecommunications utility, cooperative corporation or municipality will be allowed an opportunity to recover reasonable and prudent costs that exceed the costs that would have been incurred to initially construct or acquire facilities to serve customers of the territory. The determination of cost allocation by the commission must also divide the costs allowed equitably among all customers of the territory to which service is being reinstated. [2005 c.232 §26; 2009 c.124 §1]

Note: Sections 1 and 2, chapter 143, Oregon Laws 2019, provide:

Sec. 1. (1) The Public Utility Commission shall establish a public process for the purpose of investigating the continuing relevance of the carrier of last resort obligations provided for under ORS 759.500 to 759.570. The investigation shall focus on whether developing industry trends, technologies and policy drivers in the telecommunications sector impact the existing regulatory system administered by the commission for ensuring adequate and reasonable access for residential customers to telecommunications service in all areas of this state.

(2) As part of the public process established under subsection (1) of this section, the commission shall investigate changes to the existing regulatory system and incentives that could accommodate developing industry trends and support new policy objectives without compromising residential customers’ access to reliable and safe service at just and reasonable prices in an adequate and nondiscriminatory manner. The investigation required by this subsection shall specifically focus on:

(a) Customers whose individual circumstances and needs may impact their access to and usage of telecommunications services, including low-income customers;

(b) Residential customers with access at their domicile to fewer than two of the following terrestrial-based service alternatives:

(A) Telecommunications services provided by a facilities-based competitive local exchange carrier;

(B) Voice service offered via interconnected Voice over Internet Protocol; or

(C) Voice service offered by a cellular communications service; and

(c) The comparability of voice service offered by wireless Internet service providers and satellite providers.

(3) If the commission determines that changes to the existing regulatory system and incentives would be in the interest of residential customers and the public generally, the commission shall develop plans to administratively implement changes to the regulatory system and incentives within its existing statutory authority or shall make recommendations to the Legislative Assembly for the purpose of legislatively implementing changes to the regulatory system and incentives.

(4) As part of the public process established under subsection (1) of this section, the commission shall:

(a) Solicit input from:

(A) All telephony providers, including telecommunications utilities, cooperative corporations and municipalities certified by the commission to provide local exchange telecommunications service;

(B) The Citizens’ Utility Board;

(C) Residents of, or groups who represent, residents of rural areas of this state;

(D) Advocates for low-income persons; and

(E) Senior citizens; and

(b) Provide the public with an opportunity to comment.

(5) The commission shall submit a report on the findings of the public process established under subsection (1) of this section and the progress of investigations conducted under subsection (2) of this section in the manner provided by ORS 192.245 to the interim committees of the Legislative Assembly related to economic development and business and general government no later than September 15, 2020. The commission may include, as part of the commission’s report, recommendations for legislation. [2019 c.143 §1]

Sec. 2. Section 1 of this 2019 Act is repealed on January 2, 2021. [2019 c.143 §2]