A.R.S. tit. 40 ch. 2 — Arizona Revised Statutes Title 40 Chapter 2 — Public Service Corporations Generally

40-201. Definitions In this chapter, unless the context otherwise requires: 1. "Appliance application" means central space heating, clothes drying, water heating and indoor cooking. 2. "Commission" means the corporation commission. 3. "Common carrier" means a railroad or street railroad. 4. "Electric distribution facilities" means all property used in connection with the distribution of electricity from an electric generating plant to retail electric customers except electric transmission facilities. 5. "Electric distribution service" means the distribution of electricity to retail electric customers through the use of electric distribution facilities. 6. "Electric distribution utility" means a public service corporation or public power entity that operates, controls or maintains electric distribution facilities. 7. "Electric generation plant" means all property used in connection with the generation for sale of electricity to retail electric customers but excluding any services provided by electric transmission facilities or electric distribution facilities. 8. "Electric generation service" means the provision of electricity for sale to retail electric customers but does not include electric distribution or transmission services and generation that are necessary for the reliable operation of the electric distribution or transmission system. 9. "Electric transmission facilities" means all property so classified by the federal energy regulatory commission or, to the extent permitted by law, so classified by the Arizona corporation commission. 10. "Electric transmission service" means the transmission of electricity to retail electric customers or to electric distribution facilities that is so classified by the federal energy regulatory commission or, to the extent permitted by law, so classified by the Arizona corporation commission. 11. "Electricity" or "electric service" means electric energy, electric capacity or electric capacity and energy. 12. "Electricity supplier" means a person, whether acting in a principal, agent or other capacity, that is a public service corporation that offers to sell electricity to a retail electric customer in this state. 13. "Pipeline" includes all property used in transmission for compensation of air, steam or fluid substances, except water, through pipelines. 14. "Railroad" includes every railway, other than a street railroad, operated for public transportation of persons or property. 15. "Residential structure" means a detached owner-occupied or rental one or two family dwelling unit, an attached duplex or fourplex unit, a manufactured home, a residential factory-built building as defined in section 41-4001 or a mobile home designed to be used with a permanent structure, excluding real property used to accommodate more than four attached dwelling units. 16. "Retail electric customer" means a person who purchases electricity for that person's own use, including use in that person's trade or business, and not for resale, redistribution or retransmission. 17. "Service territory" means the geographic area in which a public power entity as defined in section 30-801 or public service corporation owns, operates, controls or maintains electric distribution facilities or natural gas distribution facilities and that additional area in which the public power entity or public service corporation has agreed to extend electric distribution facilities or natural gas distribution facilities, whether established by a certificate of convenience and necessity, by official action by a public power entity or by contract or agreement. 18. "Sewer corporation" includes every person owning, controlling, operating or managing any sewage system for profit. 19. "Sewerage system" includes all property used in connection with the collection, treatment, purification and disposal transmission, storage or treatment of sewage. 20. "Street railroad" includes every railway operated along any street or public way for public transportation of persons or property, but does not include a commercial or interurban railway. 21. "Telecommunications corporation" means a public service corporation other than municipal engaged in transmitting messages or furnishing public telegraph or telephone service or operating as a telecommunications common carrier. 22. "Telegraph line" includes all property used in connection with communication by telegraph for compensation with or without the use of transmission wires. 23. "Telephone line" includes all property used in connection with communication by telephone, for compensation, with or without the use of transmission wires. 24. "Transportation of persons" includes every service in connection with the carriage and delivery of a person and the person's baggage. 25. "Transportation of property" includes every service in connection with the transportation and handling of property. 40-202. Supervising and regulating public service corporations; telecommunications promotion; consumer protection; duty to comply A. The commission may supervise and regulate every public service corporation in this state and do all things, whether specifically designated in this title or in addition thereto, necessary and convenient in the exercise of that power and jurisdiction. In supervising and regulating long-distance telecommunications corporations, the commission shall encourage competition and growth in the telecommunications industry and promote economic development and investment in new telecommunications technologies, infrastructure and services. In furtherance of this policy, the commission shall establish procedures and standards for identifying and regulating competitive long-distance telecommunications markets. When the commission determines that a long-distance telecommunications market is competitive, it shall establish appropriate supervisory and regulatory treatment for competitive long-distance telecommunications markets as distinguished from noncompetitive telecommunications markets. In imposing any assessments or other charges on mobile telecommunications service providers, the commission shall comply with the requirements of the mobile telecommunications sourcing act (P.L. 106-252; 114 Stat. 626; 4 United States Code sections 116 through 126). B. In supervising and regulating public service corporations, the commission's authority is confirmed to adopt rules to: 1. Protect the public against deceptive, unfair and abusive business practices, practices related to deposit requirements and reconnection fees, intrusive and abusive marketing, deceptive or untrue advertising practices and practices prohibited under subsection E of this section. 2. Provide that, notwithstanding any other law, customer information, account information and related proprietary information are confidential unless specifically waived by the customer in writing. 3. Ensure that public service corporations that employ the services of a contractor for interior household energy service, either directly or through any affiliate, require the contractors and subcontractors to be licensed by the registrar of contractors and shall comply with all municipal permit and inspection standards and applicable life safety codes. For the purposes of this paragraph, "contractor" has the same meaning prescribed in section 32-1101. C. Except as provided in subsection D of this section, during the initial construction of a residential structure, electric and natural gas facilities at a minimum shall be installed in and to the structure in a manner that provides the retail energy consumer ultimately residing in the structure with the capability to choose between electricity and natural gas as an energy source for each appliance application. D. A residential structure may be constructed without the installation of any particular facilities if: 1. The structure is not located within the service territory of a public service corporation certificated to furnish the associated energy service. 2. Unless mandated otherwise by law or governmental regulation, the public service corporation certificated to furnish the associated energy notifies the contractor or owner that the extension of the facilities to the structure is not economically feasible. 3. The public service corporation certificated to furnish a particular energy service and the owner or contractor agree that the extension of the facilities to the subdivision, to the structure or to any appliance application would not be economically feasible or would otherwise be inappropriate. In this case, the parties may agree to install no facilities in the subdivision, to install service to any or all residential structures without providing service to any appliance application or to install facilities to some but not all appliance applications. E. Unless mandated by law or a generally accepted industry code, a person or entity, including municipal corporations and political subdivisions, shall not engage in any practice that interferes with the opportunity to have electric and natural gas facilities at a minimum installed in and to an existing residential structure in a manner that provides the retail energy consumer ultimately residing in the structure and all subsequent retail energy consumers residing in the structure with the capability to choose between electricity and natural gas as an energy source for each appliance application. This subsection does not apply to reasonable sales and marketing activities. F. If a trench is provided by a contractor or a property owner for the purpose of having utility facilities installed to a residential structure, electric and natural gas facilities at a minimum shall be permitted to occupy the trench if the installation of the facilities is completed in compliance with generally accepted industry safety codes applicable to the installation. Except in the case of underground conversion service areas provided for in sections 40-341 through 40-355 and improvement districts for underground utility facilities provided for in section 48-620, if the contractor or property owner conditions occupancy in a trench on a reimbursement of costs associated with providing the trench, the contractor or property owner may require an occupant to pay a pro rata share of the costs associated with providing the trench. A public service corporation may use as a credit against the payment money paid through the public service corporation's conduit or other reimbursement programs. G. Before initiating a complaint with a public service corporation or the commission, the parties to a dispute arising under subsections C, D, E and F of this section shall meet and in good faith attempt to resolve the dispute through an informal dispute resolution process. Compliance with subsections C, D, E and F of this section does not require inspection or enforcement by a city, town or county. H. After facilities have been installed initially in accordance with subsection C of this section, the public service corporation, the homeowner, the home builder or the contractor is not responsible or liable for any subsequent modification to the number of initially installed facilities. I. A public service corporation shall comply with every order, decision, rule or regulation made by the commission in any matter relating to or affecting its business as a public service corporation and shall do everything necessary to secure compliance with and observance of every such order, decision, rule or regulation. 40-203. Power of commission to determine and prescribe rates, rules and practices of public service corporations When the commission finds that the rates, fares, tolls, rentals, charges or classifications, or any of them, demanded or collected by any public service corporation for any service, product or commodity, or in connection therewith, or that the rules, regulations, practices or contracts, are unjust, discriminatory or preferential, illegal or insufficient, the commission shall determine and prescribe them by order, as provided in this title. 40-204. Reports by public service corporations to commission; duty of corporation to deliver documents to commission; confidential nature of information furnished; exception; classification A. Every public service corporation shall furnish to the commission, in the form and detail the commission prescribes, tabulations, computations, annual reports, monthly or periodical reports of earnings and expenses, and all other information required by it to carry into effect the provisions of this title and shall make specific answers to all questions submitted by the commission. If a corporation is unable to answer any question, it shall give a good and sufficient reason therefor. B. When required by the commission, a public service corporation shall deliver to the commission copies of any maps, profiles, contracts, franchises, books, papers and records in its possession, or in any way relating to its property or affecting its business, and also a complete inventory of all its property in the form the commission directs. C. No information furnished to the commission by a public service corporation, except matters specifically required to be open to public inspection, shall be open to public inspection or made public except on order of the commission entered after notice to the affected public service corporation, or by the commission or a commissioner in the course of a hearing or proceeding. D. Any officer or employee of the commission who knowingly divulges any such information is guilty of a class 2 misdemeanor. 40-205. Regulation of commercial flight operators by commission prohibited; definitions A. Notwithstanding any other provision of law, the corporation commission may not regulate commercial flight operations or commercial flight operators. B. For purposes of this section: 1. "Commercial flight operation" means the carrying of persons or goods for hire, including the conducting of flight instruction for compensation. 2. "Commercial flight operator" means a person who conducts commercial flight operations. 40-206. Exemption of motor carriers This chapter does not apply to motor carriers as defined in section 28-5851. 40-207. Electric service corporations; new extra high load factor customers; semiannual reports; rules; applicability (Rpld. 1/1/34) A. An electric public service corporation operating in this state shall file with the corporation commission semiannual reports regarding new extra high load factor customers, as defined by the corporation commission, that include both of the following with respect to the immediately preceding six-month period: 1. The number of requests for interconnection. 2. The number of completed interconnections. B. Beginning two years after September 12, 2026, the corporation commission may suspend the semiannual report requirement by a majority vote If the numbers reported by the electric public service corporation pursuant to subsection A of this section are zero for at least two consecutive six-month periods. The corporation commission may vote to reinstate the semiannual report requirement at any time. C. The corporation commission, pursuant to article XV, section 3, Constitution of Arizona, may establish required characteristics that govern the terms for electric service that is provided to extra high load factor customers that are not otherwise provided service under a preexisting electric public service corporation tariff. The required characteristics may include all of the following and ensure flexibility for an electric public service corporation to define specific terms for each transaction on a case-by-case basis: 1. Provisions for minimum billing requirements. 2. Minimum contract length. 3. Provisions that govern early exit or termination of service before the term of a contract concludes. 4. Requirements for customer-provided security, guarantees or collateral to support service contract obligations. 5. Requirements for extra high load factor customer payments to cover the costs of any infrastructure improvements, additions or expansions that are necessary to facilitate service to the customer, which shall be supported by schedules that are filed by the electric public service corporation that demonstrate the protection of nonextra high load factor customers from subsidizing extra high load factor customers. D. This section does not apply to member-owned electric cooperatives or electric public service corporations that serve forty thousand connections or less. 40-209. Franchises; electric generation suppliers; limitations Regulation of electricity suppliers providing electric generation service is a matter of statewide concern. Cities, including charter cities, towns and counties shall not require franchises for electricity suppliers to provide electric generation service within its jurisdiction and shall not impose rents, charges or taxes on the use of public streets, roads and alleys on electricity suppliers for the provision of electric generation service within its jurisdiction, except that a fee equal to the franchise fee of the electric distribution utility may be charged to the electricity supplier on any portion of a retail electricity sale not otherwise subject to a franchise fee made using electric distribution facilities in service territories that are franchised as of the effective date of this section. Nothing in this subsection affects the authority of cities, including charter cities, towns and counties to require franchises for electricity suppliers providing electric distribution service within their jurisdiction. 40-210. Contractors; requirements; prohibition; definition A. A contractor who is licensed by the registrar of contractors pursuant to title 32 is eligible to participate in a commission approved rebate or other pricing program offered by a public service corporation if the contractor obtains the same or equivalent training or certification required under the program. B. A contractor who is licensed under the registrar of contractors pursuant to title 32 shall not be required to: 1. Join any trade association or other membership organization. 2. Pay dues to any trade association or other membership organization. C. For the purposes of this section, "contractor" has the same meaning prescribed in section 32-1101. 40-211. Public service corporations; electronic filings Notwithstanding any other law, the commission may accept electronically any document that a public service corporation is required to submit pursuant to this chapter, any rules adopted pursuant to this chapter or a commission order. 40-212. Internet protocol services; definitions A. A person that offers, furnishes or provides for profit or otherwise internet protocol-enabled service or voice over internet protocol service is not providing message transmission service to the public and is not a public service corporation. The commission may not regulate, directly or indirectly, the entry, exit, rates, terms, conditions or service quality standards of internet protocol-enabled service or voice over internet protocol service. B. This section does not affect or modify: 1. The commission's authority to enforce the requirements on voice over internet protocol service that are provided for or allowed by federal law, including the collection of nondiscriminatory 911 or E911 fees, telecommunications relay service fees and universal service fees. 2. A person's obligations under or any right granted to a person by 47 United States Code sections 251 and 252. 3. The commission's jurisdiction over intrastate switched access rates, including the implementation of federal law with respect to intercarrier compensation. C. For the purposes of this section: 1. "Internet protocol-enabled service" means a service, functionality or application that uses internet protocol or a successor protocol and enables an end user to send or receive a voice, data or video communication in internet protocol format or a successor format. 2. "Voice over internet protocol service" means a service that meets all of the following: (a) Enables real-time, two-way voice communication that originates from or terminates at the user's location in internet protocol or a successor protocol. (b) Uses a broadband connection from the user's location. 40-213. Electric charging providers; fees; definition A. Notwithstanding any other law, services engaged by companies to charge batteries for electric vehicles does not qualify electric charging providers as public service corporations. B. In addition to the fee assessed for the quantity of electrical energy sold, fees may be assessed for other services and may be based on time measurement or a fixed fee or both. C. For the purposes of this section, "electric charging providers" means entities that both: 1. Offer the use of specialized equipment for the specific purpose of charging batteries for electric vehicles. 2. Sell electricity for the purpose of charging batteries for electric vehicles by kilowatt hour or by megajoule. 40-221. Power of commission to prescribe record-keeping methods and accounts; conformity with interstate commerce commission requirements; limitation on keeping of accounts A. The commission may establish a system of accounts to be kept by public service corporations, or classify the corporations and establish a system of accounts for each class, and prescribe the manner in which accounts shall be kept. It may prescribe the forms of accounts, records and memoranda to be kept, including the records of the movement of traffic as well as the receipts and expenditures of money, and any other records necessary to carry out the provisions of this article. The commission may prescribe the accounts in which particular outlays and receipts shall be entered, charged or credited. B. The system of accounts established or forms prescribed shall not, in the case of corporations subject to the regulations of the interstate commerce commission, be inconsistent with the systems and forms established for the corporations by the interstate commerce commission, but the corporation commission may prescribe forms of accounts, records and memoranda covering information in addition to that required by the interstate commerce commission. C. It shall be unlawful for any such corporation to keep any accounts, records or memoranda other than those prescribed by the commission, or those prescribed by or under the authority of any other state or of the United States, excepting such accounts, records or memoranda as shall be explanatory of and supplemental to the accounts, records or memoranda prescribed. 40-222. Depreciation accounting The commission may, after hearing, require public service corporations to carry a proper and adequate depreciation account in accordance with regulations and forms of account it prescribes. It may ascertain and fix the proper and adequate rates of depreciation of the several classes of property for each, and each corporation shall conform its depreciation accounts to the rates so ascertained and fixed, and shall set aside the money so provided for out of earnings and carry such money in a depreciation fund and expend the fund, and the income therefrom, only for the purposes and under rules and regulations, both as to original expenditure and subsequent replacement, as the commission prescribes. 40-241. Power to examine records and personnel of public service corporations; filing record of examination A. The commission, each commissioner and person employed by the commission may, at any time, inspect the accounts, books, papers and documents of any public service corporation, and any of such persons who are authorized to administer oaths may examine under oath any officer, agent or employee of such corporation in relation to the business and affairs of the corporation. B. Any person other than a commissioner or an officer of the commission demanding such inspection shall produce under the hand and seal of the commission his authority to make the inspection. C. A written record of such testimony or statement given under oath shall be made and filed with the commission. 40-242. Production of records kept without state The commission may require by order served on any public service corporation in the manner provided in this chapter for the service of orders, the production within this state, at a time and place it designates, of any books, accounts, papers or records kept in any office or place without this state, or, at its option, verified copies thereof, so that an examination may be made by the commission or under its direction. 40-243. Conduct of hearings and investigations; representation by corporate officer or employee; arbitration A. All hearings and investigations before the commission or a commissioner shall be governed by this article, and by rules of practice and procedure adopted by the commission. Neither the commission nor a commissioner shall be bound by technical rules of evidence, and no informality in any proceeding or in the manner of taking testimony before the commission or a commissioner shall invalidate any order, decision, rule or regulation made, approved or confirmed by the commission. B. In a hearing or rehearing conducted pursuant to this article, a public service corporation may be represented by a corporate officer or employee who is not a member of the state bar if: 1. The corporation has specifically authorized the officer or employee to represent it. 2. The representation is not the officer's or employee's primary duty for the corporation but is secondary or incidental to such officer's or employee's duties relating to the management or operation of the corporation. C. The commission may adopt or administer arbitration procedures to resolve complaints or disputes brought by a party against a telecommunications company, except that the commission shall not subject a wireless provider to arbitration unless the wireless provider and customer consent in writing. This section does not prohibit the commission from arbitrating disputes or complaints against a wireline service provider, involving telecommunications services contained in the bundle of services, to the extent the commission has jurisdiction as authorized pursuant to this chapter. 40-244. Administration of oaths and certification to official acts by commissioners; taking of depositions; witness fees and mileage A. Each commissioner may administer oaths and certify to all official acts. The commission, or a commissioner, or any party, may take depositions as in a court of record. B. Each witness who appears by order of the commission or a commissioner shall receive for his attendance the same fees allowed by law to a witness in civil actions, which shall be paid by the party at whose request the witness is subpoenaed. The fees of a witness subpoenaed by the commission shall be paid from the fund appropriated for the use of the commission as other expenses of the commission are paid. Any witness subpoenaed, except one subpoenaed by the commission, may, at the time of service, demand his mileage and one days attendance, and if not paid need not attend. A witness furnished free transportation shall not receive mileage. 40-245. Admissibility in evidence of copies of documents filed with commission; orders, authorizations or certificates issued by commission required to be in writing; recording A. Copies of all official documents and orders filed or deposited according to law in the office of the commission, certified by a commissioner or by the secretary under the official seal of the commission to be true copies of the originals, shall be received in evidence in a like manner as the originals. B. Every order, authorization or certificate issued or approved by the commission under this article shall be in writing and entered on the records of the commission. Any such order, authorization or certificate, or a copy thereof, or a copy of the record thereof certified by a commissioner or by the secretary under the official seal of the commission to be a true copy of the original, may be recorded in the office of the county recorder of any county in which is located the principal place of business of the corporation affected thereby, or in which is located any of its property. A certificate under the seal of the commission that any such order, authorization or certificate has not been modified, stayed, suspended or revoked may also be likewise recorded. 40-246. Complaint alleging violation by public service corporation of law or rule or order of commission; exception; joinder of complaints; notice of hearing A. Complaint may be made by the commission of its own motion, or by any person or association of persons by petition or complaint in writing, setting forth any act or thing done or omitted to be done by any public service corporation in violation, or claimed to be in violation, of any provision of law or any order or rule of the commission, but no complaint shall be entertained by the commission, except upon its own motion, as to the reasonableness of any rates or charges of any gas, electrical, water or telephone corporation, unless it is signed by the mayor or a majority of the legislative body of the city or town within which the alleged violation occurred, or by not less than twenty-five consumers or purchasers, or prospective consumers or purchasers, of the service. B. All matters upon which complaint may be founded may be joined in one hearing, and a complaint is not defective for misjoinder or nonjoinder of parties or causes, either before the commission, or on review by the courts. The commission need not dismiss a complaint because of the absence of direct damage to the complainant. C. Upon filing the complaint, the commission shall set the time when and a place where a hearing will be had upon it and shall serve notice thereof, with a copy of the complaint, upon the party complained of not less than ten days before the time set for the hearing, unless the commission finds that public necessity requires that the hearing be held at an earlier date. Service may be made as a summons in a civil action is required to be served, or may be made in any manner giving actual notice, and no irregularity in the service is an excuse or defense. 40-247. Hearing; process to witnesses; report of proceedings; decision; service of order A. The complainant and the party complained of, and such persons as the commission allows to intervene, shall be heard in person or by attorney, and may introduce evidence at the hearing. The commission shall issue process to enforce attendance of all necessary witnesses. Proceedings on any formal hearing, and all testimony, shall be stenographically reported by a shorthand reporter appointed by the commission. B. After conclusion of the hearing, the commission shall make and file an order containing its decision. A copy of the order, certified under the seal of the commission, shall be served upon the person complained of, or his attorney. The order shall become operative twenty days after service thereof, except as otherwise provided, and shall continue in force either for the period designated therein, or until changed or abrogated by the commission. The commission may on application and for good cause shown extend the time for compliance with the order as recited therein. 40-248. Reparation of overcharge; action to recover overcharge; limitations A. When complaint is made to the commission concerning any rate, fare, toll, rental or charge made by any public service corporation, and the commission finds, after investigation, that the corporation has made an excessive or discriminatory charge, the commission may order that the corporation make reparation to the complainant with interest at the legal rate from the date of collection, if no discrimination will result from such reparation. If the corporation does not comply with the order for payment of reparation within the time specified in the order, an action may be brought to recover the amount thereof. B. All complaints concerning excessive or discriminatory charges shall be filed with the commission within two years from the time the cause of action accrues, and the action to enforce the order shall be brought within one year from the date of the order of the commission. C. The remedy afforded in this section is cumulative and in addition to any other remedy provided for failure of a public service corporation to obey an order or decision of the commission. 40-249. Complaint by public service corporation; hearing Any public service corporation shall have the same privilege to complain as is afforded other parties under this article, and the same procedure shall be followed as in other cases, except that the complaint may be heard ex parte by the commission, or may be served upon any parties designated by the commission. 40-250. Hearing on rate or other change in operations by public service corporation; establishment of rates or other practices by order of commission; rates for retail telecommunications services A. No public service corporation shall raise any rate, fare, toll, rental or charge, or alter any classification, contract, practice, rule or regulation to result in any increase thereof, except on a showing before the commission and a finding by the commission that an increase is justified. The showing before the commission by a public service corporation with gross operating revenues derived from intrastate operations of less than one million dollars, including the requested rate relief, by a telecommunications corporation or by a member-owned nonprofit cooperative corporation may be made with or without a hearing as determined by order or rule of the commission. B. When any schedule is filed with the commission stating an individual or joint rate, fare, toll, rental, charge, classification, contract, practice, rule or regulation not increasing or resulting in an increase, the commission, without answer or other pleadings by the interested corporation, but on reasonable notice, may conduct a hearing concerning the propriety of the rate, fare, toll, rental, charge, classification, contract, practice, rule or regulation, and pending the hearing and the decision thereon, it shall not go into effect. The period of suspension thereof shall not extend one hundred twenty days beyond the time when it would otherwise go into effect, unless the commission extends the period of suspension for a further period not exceeding six months. C. On the hearing the commission shall by order establish the rates, fares, tolls, rentals, charges, classifications, contracts, practices, rules or regulations proposed, in whole or in part, or establish others in lieu thereof, that it finds just and reasonable, and that, if not suspended, shall, on the expiration of thirty days from the time of filing the order, or in such lesser time as the commission grants, become effective and be established, subject to the power of the commission to alter or modify the order. D. A state regulation of telecommunications providers that is subject to the jurisdiction of the commission shall be competitively neutral in relation to all telecommunications providers competing in this state. Just and reasonable rates for retail telecommunications services that have been classified as competitive by the commission do not need to be based on the rate of return evaluation traditionally used in establishing rates for noncompetitive telecommunications services. Notwithstanding any provision of this chapter and this section to the contrary, maximum rates, terms of service or standards of service for retail telecommunications services classified as competitive may be established or changed on forty calendar days' notice to affected customers and to the commission. The maximum rates, terms of service or standards of service are effective within forty days after the notice unless the commission suspends the effective date. This subsection does not diminish the commission's authority and duty to set just and reasonable rates. An order denying or modifying the filing shall not be ordered until after the commission holds a hearing and finds and determines that such action does not unduly burden or disadvantage the entity in a manner that is not competitively neutral in relation to other telecommunications providers competing in this state regardless of the technology used and the regulatory classification of the other providers. Any period of suspension may not be longer than thirty days after the end of the forty-day notice period. At the end of the suspension period, the requested maximum rates, terms of service or standards of service are effective unless the commission has already acted on the request. 40-251. Hearings on valuation of property of public service corporations; notice; introduction of evidence; written findings of fact required; admissibility in evidence; effect; exception A. For the purpose of ascertaining matters concerning the valuation or revaluation of the property of public service corporations, the commission may conduct hearings at times or places it designates. Before any hearing or supplemental or further hearing is had the commission shall give the corporation affected thereby at least thirty days' written notice, specifying the time and place of the hearing, but such notice shall not prevent the commission from making any preliminary examination or investigation into such matters or from inquiring into them in any other investigation or hearing. B. All corporations affected shall be heard and may introduce evidence at the hearing. The commission may receive evidence from other sources of information. The evidence introduced at the hearing shall be reduced to writing and certified under the seal of the commission. The commission shall make and file its finding of facts in writing upon all matters concerning which evidence is introduced which in its judgment relates to the value of the property. C. The original or supplemental findings, so made and filed, when properly certified under seal, shall be admissible in evidence in any action, proceeding or hearing before the commission or any court in which the commission, the state, or any officer, department or institution thereof, or any county, city, municipality or other body politic, and the corporation affected, is interested, whether arising under the provisions of this article or otherwise. Such findings, when received in evidence in any action or proceeding arising under this article, shall be conclusive evidence of the facts therein stated as of the dates therein stated under conditions then existing, and such facts may only be controverted by showing a subsequent change in conditions bearing upon the facts therein determined. D. Findings made at supplemental hearings or investigations shall be considered in connection with and as a part of the original findings except insofar as the supplemental findings change or modify the findings made at the original hearing or investigation. E. For purposes of this section, the commission may establish simplified procedures and may by order or rule dispense with a hearing for a telecommunications corporation or a member-owned nonprofit cooperative corporation. 40-252. Rescission or amendment of orders by commission; collateral attack on final orders or decisions prohibited The commission may at any time, upon notice to the corporation affected, and after opportunity to be heard as upon a complaint, rescind, alter or amend any order or decision made by it. When the order making such rescission, alteration or amendment is served upon the corporation affected, it is effective as an original order or decision. In all collateral actions or proceedings, the orders and decisions of the commission which have become final shall be conclusive. 40-253. Application for rehearing; hearing; effect; decision A. After any final order or decision is made by the commission, any party to the action or proceeding or the attorney general on behalf of the state may apply for a rehearing of any matter determined in the action or proceeding and specified in the application for rehearing within twenty days of entry of the order or decision. Unless otherwise ordered, the filing of such an application does not stay the decision or order of the commission. If the commission does not grant the application within twenty days, it is deemed denied. If the commission grants the application, the commission shall promptly hear the matter and determine it within twenty days after final submission. B. No claim arising from any order or decision of the commission shall accrue in any court to any party or the state unless the party or the state makes, before the effective date of the order or decision, application to the commission for a rehearing. C. The application shall set forth specifically the grounds on which it is based, and no person, nor the state, shall in any court urge or rely on any ground not set forth in the application. D. An application for rehearing shall not excuse any person from complying with and obeying any order or decision, or any requirements of any order or decision of the commission theretofore made, or operate in any manner to stay or postpone the enforcement thereof, except in such cases and upon such terms as the commission by order directs. E. If, after a rehearing and a consideration of all the facts, including those arising since the making of the order or decision, the commission finds that the original order or decision or any part thereof is in any respect unjust or unwarranted, or should be changed, the commission may abrogate, change, or modify the order or decision, and such order or decision has the same force and effect as an original order or decision, but shall not affect any right or the enforcement of any right arising from or by virtue of the original order or decision, unless so ordered by the commission. 40-254. Action to set aside or modify certain orders of commission; filing; limitation; superior court A. Except as provided in section 40-254.01, any party in interest, or the attorney general on behalf of the state, being dissatisfied with an order or decision of the commission, may within thirty days after a rehearing is denied or granted, and not afterwards, commence an action in the superior court in the county in which the commission has its office, against the commission as defendant, to vacate, set aside, affirm in part, reverse in part or remand with instructions to the commission such order or decision on the ground that the valuation, rate, joint rate, toll, fare, charge or finding, rule, classification or schedule, practice, demand, requirement, act or service provided in the order or decision is unlawful, or that any rule, practice, act or service provided in the order is unreasonable. The answer of the commission shall be served and filed within twenty days after service of the complaint, whereupon the action shall be at issue and ready for trial upon ten days' notice to either party. The action shall be tried and determined as other civil actions except as provided in this section. B. If the commission rescinds the order complained of, the action shall be dismissed, and if the commission alters, modifies or amends the order, the altered, modified or amended order shall replace the original order complained of, and judgment shall be given thereon as though made by the commission in the first instance. C. The trial shall conform, as nearly as possible, and except as otherwise prescribed by this section, to other trials in civil actions. Judgment shall be given affirming, modifying or setting aside the original or amended order. D. Either party to the action, or the attorney general on behalf of the state, within thirty days after the judgment of the superior court is given, may appeal to the supreme court. E. In all trials, actions and proceedings the burden of proof shall be upon the party adverse to the commission or seeking to vacate or set aside any determination or order of the commission to show by clear and satisfactory evidence that it is unreasonable or unlawful. F. Except as provided by this section no court of this state shall have jurisdiction to enjoin, restrain, suspend, delay or review any order or decision of the commission, or to enjoin, restrain or interfere with the commission in the performance of its official duties, and the rules, orders or decrees fixed by the commission shall remain in force pending the decision of the courts, but a writ of mandamus shall lie from the supreme court to the commission in cases authorized by law. 40-254.01. Action to set aside or modify certain commission orders; limitation; court of appeals A. The attorney general on behalf of the state or any party to a proceeding before the commission who is dissatisfied with any order of the commission involving public service corporations and relating to rate making or rate design pursuant to sections 40-243, 40-246, 40-250 and 40-251 may file within thirty days after a rehearing is denied or granted, and not afterwards, a notice of appeal in the court of appeals to vacate, set aside, affirm in part, reverse in part or remand with instructions to the commission the order if the court of appeals determines upon a clear and satisfactory showing that the order is unlawful or unreasonable. B. If the commission rescinds the order complained of, the action shall be dismissed, and if the commission alters, modifies or amends the order, the altered, modified or amended order shall replace the original order complained of, and judgment shall be given thereon as though made by the commission in the first instance. C. The appellate procedure shall be pursuant to rules adopted by the supreme court. The rules shall conform, as nearly as possible, to the manner in which other appeals are undertaken, including indicating the content of the record on review, the briefs to be filed and the time and manner for filing the briefs, record and other documents. D. Any party to the action, or the attorney general on behalf of the state, may appeal to the supreme court as provided by law. E. In all appeals that are taken pursuant to this section, the party adverse to the commission or seeking to vacate or set aside an order of the commission must make a clear and satisfactory showing that the order is unlawful or unreasonable. F. Except as provided by this section, no court of this state has jurisdiction to enjoin, restrain, suspend, delay or review any order or decision of the commission involving public service corporations and relating to rate making or rate design pursuant to sections 40-243, 40-246, 40-250 and 40-251, or to enjoin, restrain or interfere with the commission in the performance of its official duties, and the rules, orders or decrees fixed by the commission remain in force pending the decision of the courts, but a writ of mandamus shall lie from the supreme court to the commission in cases authorized by law. 40-255. Precedence of actions All actions and proceedings to which the commission or the state is a party, or in which the attorney general has been allowed to intervene, and in which any question arises under this title, or under or concerning any order or decision of the commission, shall be preferred and shall be heard and determined in preference to other civil matters except election actions. 40-256. Time periods for rate decisions; calculation; simplified filing rules; interim rates and charges; definitions A. From the date on which a utility's rate filing is determined to be sufficient in accordance with this section, the commission shall issue a decision establishing rates and charges for service within the following time periods: 1. For class 1 utilities, within two hundred seventy days. 2. For class 2 utilities, within one hundred eighty days. B. For the purposes of calculating the time periods prescribed in subsection A, a rate filing shall be deemed sufficient if it substantially complies with the commission's rules governing the filing requirements for applications for increased rates or charges for utility service. The utilities division shall review each rate filing to ascertain whether it substantially complies with the applicable rules and shall submit its findings to the commission not more than thirty days after the date of the rate filing. If it is determined that a rate filing does not substantially comply with the applicable rules, the utilities division shall notify the utility, in writing, of the basis for its determination to allow the utility to cure its filing. If this written notice is not provided within thirty days after the date of the utility's rate filing, the rate filing is presumed to be in substantial compliance with the applicable rules and the applicable time period established in subsection A begins. If any deficiencies in the rate filing are identified and written notice is given to the utility, the applicable time period begins on the date the rate filing is amended to cure the deficiencies. C. On the motion of any party to the contested case proceedings relating to the rate filing or on its own motion, the commission may determine that an extraordinary event that would substantially alter the relief requested in the utility's rate filing has occurred. If such a determination is made, the time period prescribed in subsection A begins again from the date of the determination. D. To expedite the issuance of final decisions and to minimize the fees and expenses incurred by utilities, the commission shall promptly adopt rules providing for simplified filing requirements and procedures for rate filings by utilities whose annual operating revenues do not exceed two hundred fifty thousand dollars. E. If a decision in the rate filing has not been issued within the required time period, the commission shall provide that the utility may implement reasonable modifications to rates and charges based on those proposed in the rate filing, on an interim basis, and subject to refund, pending the issuance of a final decision. Notice of the implementation shall be given by keeping open for public inspection new schedules stating the modifications to be made in the schedules then in force and by mailing a written notice to all customers of the utility advising them of the modifications at least thirty days before the effective date of the modifications. Any party to the contested case proceedings relating to the rate filing, including the utilities division, or the commission on its own motion may request that a hearing be scheduled for the limited purpose of determining whether the utility should be required to file a bond approved by the commission in such amount and with sufficient security to ensure prompt payment of any refunds to the persons entitled to them, including an interest rate of not more than the maximum interest otherwise allowed by law, if the modified rates or charges placed into effect are finally determined by the commission to be excessive. The utility may substitute for the bond other arrangements satisfactory to the commission for the protection of the parties involved. F. For purposes of this section: 1. "Annual operating revenues" means gross utility operating revenues derived from a utility's jurisdictional operations, including the requested rate relief. 2. "Class 1 utility" means a utility with annual operating revenues of one million dollars or more. 3. "Class 2 utility" means a utility with annual operating revenues of less than one million dollars. 4. "Combination utility" means a utility that provides more than one of the commodities or services in paragraph 7. For combination utilities, departmental operating revenues shall be used for classification purposes. 5. "Decision" means a final order, decision or determination of the commission that disposes of all issues involved in all parts or phases of the proceedings before the agency concerning a rate filing. 6. "Rate filing" means an application filed by a utility for the permanent modification to any rate or charge for service requiring the commission to determine the fair value of the utility's jurisdictional property used for the provision of utility service and the rate of return. 7. "Utility" means a public service corporation that is engaged in supplying electric, gas, telephone, water or sewer utility service in this state and that is subject to the jurisdiction of the commission. 40-281. Certificate required before construction by public service corporation; exceptions; complaint by corporation injuriously affected by construction hearing; exclusive franchise or monopoly A. A public service corporation, other than a railroad, shall not begin construction of a street railroad, a line, plant, service or system, or any extension thereof, without first having obtained from the commission a certificate of public convenience and necessity. B. This section shall not require such corporation to secure a certificate for an extension within a city, county or town within which it has lawfully commenced operations, or for an extension into territory either within or without a city, county or town, contiguous to its street railroad or line, plant or system, and not served by a public service corporation of like character, or for an extension within or to territory already served by it, necessary in the ordinary course of its business. If a public service corporation, in constructing or extending its line, plant or system, interferes or is about to interfere with the operation of the line, plant or system of any other public service corporation already constructed, the commission, on complaint of the corporation claiming to be injuriously affected, may, after hearing, make an order and prescribe terms and conditions for the location of lines, plants or systems affected as it deems just and reasonable. C. No such corporation shall exercise any right or privilege under any franchise or permit without first having obtained from the commission a certificate of public convenience and necessity. D. This article shall not be construed as granting or as having granted to any telecommunications corporation an exclusive franchise or monopoly within the territory described by its certificate unless the commission determines after notice and hearing that such an exclusive franchise or monopoly is in the public interest. E. When the commission determines after notice and hearing that any product or service of a telecommunications corporation is neither essential nor integral to the public service rendered by such corporation, it shall declare that such product or service is not subject to regulation by the commission. 40-282. Application for certificate; hearing; application upon contemplated franchise A. If the applicant for a certificate of convenience and necessity is a corporation, a certified copy of its articles of incorporation shall be filed in the office of the commission before any certificate of convenience and necessity may issue. B. Every applicant for a certificate shall submit to the commission evidence required by the commission to show that the applicant has received the required consent, franchise or permit of the proper county, city and county, municipal or other public authority. C. The commission may, after a hearing, issue the certificate or refuse to issue it, or issue it for the construction of only a portion of the contemplated street railroad, line, plant or system, or extension thereof, or for the partial exercise only of the right or privilege, and may attach to the exercise of rights granted by the certificate terms and conditions it deems that the public convenience and necessity require. The commission may act after an application or after a hearing, if requested by any party, on an application for a certificate to provide any of the following telecommunications services: 1. Pay telephone service to end users if the applicant has not received a certificate to provide local exchange telecommunications service within the area where the pay telephone is or will be located. 2. Automated or live operator services accessed from a location where telephones are available to the public or transient users of the premises and where the applicant has not been certificated as either: (a) A local exchange carrier for the location by January 1, 1996. (b) A facilities based interexchange carrier by January 1, 1996. 3. Telecommunications services resold to the public for profit if the applicant obtains the services from another entity. D. If a public service corporation desires to exercise a right or privilege under a franchise or permit which it contemplates securing, but which has not yet been granted to it, the corporation may apply to the commission for an order preliminary to the issue of the certificate. The commission may make an order declaring that it will thereafter, upon application, under rules it prescribes, issue the desired certificate, upon terms and conditions it designates, after the corporation has obtained the contemplated franchise or permit or may make an order issuing a certificate on the condition that the contemplated franchise or permit is obtained and on other terms and conditions it designates. If the commission makes an order preliminary to the issuance of the certificate, upon presentation to the commission of evidence that the franchise or permit has been secured by the corporation, the commission shall issue the certificate. 40-283. Transmission lines; use of public streets for utility right-of-way; notice; election A. Any person engaged in transportation or transmission business within the state may construct and operate lines connecting any points within the state and connect at the state boundary with like lines, except that within the confines of municipal corporations the use and occupancy of streets shall be under rights acquired by franchises according to law or licenses pursuant to title 9, chapter 5, articles 1.1 and 4, and subject to control and regulation by the municipal authorities. The use of highways, except state highways, by public utilities not within any incorporated city or town shall be regulated by the board of supervisors of the county by license or franchise. B. A board of supervisors in granting a license or franchise, or at any time after it is granted, may impose restrictions and limitations upon the use of the public roads as it deems best for the public safety or welfare. C. Every franchise granted under this article shall include provisions requiring the grantee to bear all expenses, including damage and compensation for any alteration of the direction, surface, grade or alignment of a county road, made for the purpose of such franchise. If the surface of a county highway is used by any grantee for trackage, the franchise shall include reasonable regulations for maintenance by the grantee of that portion of the highway so used. D. A board of supervisors may authorize public service corporations, telecommunications corporations, cable operators or video service providers to construct a line, plant, service or system within the right-of-way of any road, highway or easement that is designated for access or public use by plat or survey of record of a subdivision, or of unsubdivided land as defined in section 32-2101, provided that any such authorization or construction pursuant to such authorization does not impo