(1) Telecommunications companies which serve less than five percent of the state‘s subscriber lines in the aggregate statewide shall not be subject to rate regulation by the commission pursuant to sections 86-140 and 86-153 unless (a) the telecommunications company elects by action of its board of directors to be subject to such rate regulation by the commission, (b) the proposed rate increase exceeds thirty percent in any one year, (c) five percent of the subscribers petition the commission to regulate rates pursuant to subsections (2) through (4) of this section, or (d) the commission declares that the telecommunications company shall be subject to rate regulation by the commission pursuant to subsection (5) of this section.

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(2) Each such telecommunications company not subject to rate regulation shall, at least ninety days before the effective date of any proposed rate change, notify the commission and each of the telecommunications company’s subscribers of the proposed rate change. Notice to the commission shall include a list of the telecommunications company’s published subscribers. Notice by the telecommunications company to all subscribers shall be in a form prescribed by the commission, shall be by first-class mail, and shall include a schedule of the proposed rates, the effective date of the rates, and the procedure necessary for the subscribers to petition the commission to determine rates in lieu of the proposed rates.

(3) The subscribers of a telecommunications company not subject to the commission’s rate regulation may petition the commission to determine rates in lieu of any rate change proposed by the telecommunications company pursuant to subsection (2) of this section. A petition substantially in compliance with the rules and regulations of the commission shall not be deemed invalid due to minor errors in its form.

(4) If, by the effective date of the telecommunications company’s proposed rate change, the commission has received petitions from less than five percent of the subscribers requesting that the commission determine rates, the commission shall certify such fact to the telecommunications company and the telecommunications company’s proposed rates shall become effective as published in the notice to subscribers. If, on or before the effective date of the proposed rate change, the commission has received petitions from five percent or more of the subscribers requesting that the commission determine rates, the commission shall notify the telecommunications company that it will determine rates for the telecommunications company in lieu of the telecommunications company’s proposed rate change. Rates established by the commission or by a telecommunications company pursuant to subsections (2) through (4) of this section shall be in force for at least one year.

(5) In addition to the procedure for petition prior to any proposed rate change pursuant to subsections (2) through (4) of this section, the subscribers of a telecommunications company not subject to the commission’s rate regulation may at any time petition the commission to declare that the telecommunications company shall be subject to such rate regulation. If the commission determines that at least fifty-one percent of a telecommunications company’s subscribers have properly petitioned that the telecommunications company be subject to the commission’s rate regulation, the commission shall certify such fact to the telecommunications company and thereafter the telecommunications company shall be subject to rate regulation by the commission until at least fifty-one percent of the telecommunications company’s subscribers properly petition that the telecommunications company no longer shall be subject to the commission’s rate regulation. This section shall not be construed to exempt any local exchange carrier from regulation of its access charges pursuant to section 86-140.