WEST virginia legislature

2019 regular session

Introduced

Senate Bill 390

By Senators Maynard, Tarr, Plymale, Cline, and Sypolt

[Introduced January 22, 2019; Referred
to the Committee on Economic Development]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §31G-5-1 and §31G-5-2, all relating to determining the feasibility of electric utilities constructing and operating middle-mile broadband Internet projects to serve certain unserved and underserved areas; defining certain terms; delineating the factors that must be contained in certain feasibility studies; requiring the Broadband Enhancement Council and the Public Service Commission to assist electric utilities in determining the feasibility of certain proposed middle-mile broadband development projects; requiring that the Broadband Enhancement Council render a judgment as to the feasibility of middle-mile broadband Internet projects within a certain period of time; and requiring certain reports be submitted to certain officials and committees.

Be it enacted by the Legislature of West Virginia:

article 5. Project feasibility study.

§31G-5-1. Definitions.

For purposes of this article:

(a) “Commission” means the West Virginia Public Service Commission.

(b) “Council” means the Broadband Enhancement Council, as defined in article 1 of this chapter.

(c) “Electric Utility” means any electric utility operating within this state that is regulated by the Commission.

(d) “Project” means a middle-mile broadband infrastructure expansion project proposed by an electric utility.

§31G-5-2. Mandatory feasibility study; Evaluation.

(a) Each Electric Utility shall investigate the feasibility of constructing and operating a project within Electric Utility's distribution system and submit a feasibility study of a proposed project to the council on or before December 1, 2019.

(b)  The council and the commission shall assist each such Electric Utility in its preparation of such a feasibility study.

(c) A feasibility study shall include an evaluation of the following:

(i) The scope of the proposed project for which the feasibility study is conducted, which shall include, but not be limited to:

(A) The route of the middle-mile Infrastructure proposed for the project, the number of fiber strands that would be utilized in connection with the proposed project and dedicated to serve as the middle mile, the location of the Electric Utility's distribution infrastructure that will be utilized  in connection with the proposed project, the capacity of the middle mile broadband  infrastructure that will be available to lease to last-mile broadband Internet providers upon completion of the proposed project

(B) The estimated cost of the proposed project, including, but not limited to, engineering costs, construction costs, permitting costs, materials and labor, right of way costs, and a reasonable  rate of return to the Electric Utility;

(C) The proposed schedule of construction of the proposed project.; and

(D) The method of attachment and connection of the middle-mile broadband fiber assets to the Electric Utility's distribution Infrastructure:

(ii) The regulatory barriers to an Electric Utility constructing a project and operating middle-mile  broadband infrastructure to provide access to unserved and underserved areas of the state, and proposed legislation to address such regulatory barriers:

(iii) Whether it is in the public interest and the interest of the Electric Utility to make improvements to the distribution grid in furtherance of providing such middle-mile broadband Internet services in conjunction with its program of electric distribution projects;

(iv) Whether it is in the public interest and the interest of the Electric Utility to operate middle-mile broadband Internet assets to provide access to unserved and underserved areas of the state:

(v) Whether it is in the public interest and the interest of the Electric Utility to permit a third-party to lease such capacity to provide last-mile broadband Internet services to unserved and underserved areas of the state:

(vi) Whether construction of middle-mile broadband Internet infrastructure utilizing Electric Utility distribution systems is feasible with respect to the maturity of the relevant technology, the compatibility of such services with existing electric services, and the financial requirements to undertake such project;

(vii) The anticipated level of rate adjustment necessary to allow the Electric Utility to recover its costs associated with the proposed project, and a reasonable rate of return, on an expedited basis, that will be recovered by the Electric Utility through a rate adjustment at the commission; and

(viii) Such other information that is pertinent to the project.

(d) Upon receipt of a feasibility study, the council shall render a determination, by a majority vote of the council, as to the feasibility of the proposed project.

(e) In its consideration of the feasibility of a project, the council shall identify one or more last-mile broadband Internet providers that will lease the middle-mile broadband Internet capacity created by the proposed project pursuant to lease terms and conditions set by the council.

(f) The council shall render such feasibility determination within 60 days from the data the feasibility study is submitted to the council.

(g) Commencing January 1, 2020, and each year thereafter, the council shall give a report of Its consideration of feasibility studies submitted pursuant to this section of the code to the Governor, the President of the Senate, the Speaker of the House of Delegates, and the Joint Committee on Government and Finance.

NOTE: The purpose of this bill is to require Electric Utilities to submit feasibility studies of potential middle-mile broadband internet service projects to the Broadband Enhancement Council for the council's consideration.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.