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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Telecommunications Division

RESOLUTION T- 16917

Public Programs Branch

February 24, 2005

R E S O L U T I O N

RESOLUTION T-16917. APPROVAL OF THE UNIVERSAL LIFELINE TELEPHONE SERVICE SURCHARGE RATE OF 1.55% EFFECTIVE APRIL 1, 2005.

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Summary

This resolution adopts a revised Universal Lifeline Telephone Service (ULTS) surcharge rate of 1.55% to take effect on April 1, 2005. This revised surcharge rate shall remain in effect until further revised by the Commission. All certificated telecommunications carriers shall assess a ULTS rate of 1.55% on their end-user's billings for intrastate telecommunications services rendered on April 1, 2005, and thereafter.

Background

ULTS was implemented by the California Public Utilities Commission (CPUC or Commission) in 1984 pursuant to Public Utilities (PU) Code § 871 to provide discounted basic telephone services to qualifying low-income households. ULTS discounted services are provided by local exchange service providers, which, in turn, receive reimbursement from the ULTS fund net of payments from the federal Lifeline and Link-Up programs.

The ULTS program is funded through the ULTS surcharge billed and collected by all telecommunications carriers, which in turn remit the surcharge monies to the financial institution designated by the Commission. Historical ULTS surcharge rates since the inception of the program are available online at http://www.cpuc.ca.gov.

Discussion

This Resolution resets the ULTS surcharge from the current rate of 1.10% to 1.55% for the funding of the ULTS program through fiscal year (FY) 2005-06. This 1.55% ULTS surcharge rate shall remain in effect until further revised by the Commission.

All certificated telecommunications carriers shall assess a revised ULTS rate of 1.55% on their end-user's billings for intrastate telecommunications services rendered on April 1, 2005, and thereafter.

The development of the ULTS revised surcharge rate was developed by the Telecommunications Division (TD) and is shown in Appendix A. TD's recommendation of a 1.55% ULTS surcharge rate effective April 1, 2005 for the funding of the ULTS program through fiscal year 2005-06 is reasonable and is therefore adopted.

Notice of Availability and Public Comments

To be consistent with the Commission's commitment to utilize the Internet for distributing Commission orders and information, TD has sent notification, by e-mail to all regulated telecommunications carriers, the parties of record in R.04-12-001, and committee members of the ULTS Administrative Committee informing them that:

· This Draft Resolution proposes to revise the ULTS surcharge rate from the current rate of 1.10% to 1.55% effective April 1, 2005.

· This Draft Resolution is available for public comments, and opening comments are due on February 9, 2005 and reply comments are due on February 14, 2005.

· This Draft Resolution and the conformed resolution when adopted by the Commission are available on the Commission's web-site, www.cpuc.ca.gov.

TD has also sent, by regular service mail, the same notification to regulated telecommunications carriers, parties of record in R.04-12-001, and committee members whose e-mail addresses are not on file with the Commission.

On February 7, 2005, the Greenling Institute (Greenling) filed comments on the Draft Resolution supporting the revision of ULTS surcharge rate from 1.10 to 1.55% to take effect on April 1, 2005. Greenling also recommended that the Commission issue a new proceeding designed to examine the utility of the ULTS system to include other technologies such as wireless and Voice Over Internet Platform for low-income, underserved communities. This recommendation is hereby dismissed since the recommendation is beyond the scope of the Draft Resolution.

Advice Letter Filing

In accordance with Resolution T-16901 dated December 2, 2004, SBC shall file an Advice Letter on or before March 15, 2005, modifying the ULTS surcharge rate from 1.10% to 1.55% to take effect on April 1, 2005, until further revised by the Commission.

To maximize administrative efficiency, SBC is allowed to file simultaneously on or before March 15, 2005 the revised tariff schedules in compliance with resolutions revising various public program surcharges effective on April 1, 2005 in accordance with the provisions of G.O. 96, as modified by first, second, and third interim orders.

Findings

9. To maximize administrative efficiency, SBC is allowed to file simultaneously on or before March 15, 2005 the revised tariff schedules in compliance with resolutions revising various public program surcharges effective on April 1, 2005 in accordance with the provisions of G.O. 96, as modified by first, second, and third interim orders.

10. On February 7, 2005, the Greenling Institute (Greenling) filed comments on the Draft Resolution supporting the revision of ULTS surcharge rate from 1.10 to 1.55% to take effect on April 1, 2005. Greenling also recommended that the Commission issue a new proceeding designed to examine the utility of the ULTS system to include other technologies such as wireless and Voice Over Internet Platform for low-income, underserved communities. This recommendation should be dismissed since the recommendation is beyond the scope of the Draft Resolution.

THEREFORE, IT IS ORDERED that:

This Resolution is effective today.

I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on February 24, 2005. The following Commissioners approved it:

UNIVERSAL LIFELINE TELEPHONE SERVICE TRUST ADMINISTRATIVE COMMITTEE FUND 

 

  

Funding Development for FY 2004-05 and FY 2005-06 and Projected Fund Balance as of Jun 30, 2006

Per FY Ending Jun 30, 2004 Financial Reports submitted to the State Controller's Office

       

1

Projected Intrastate Revenues Subject to Surcharge:

    

2

FY 2004-05 (Per Resolution T-16898 adopted by the Commission on 12/16/04)

$18,441,522,000

 

3

FY 2005-06 (Per Resolution T-16898 adopted by the Commission on 12/16/04)

$18,828,692,000

 

 

  

 

  

4

Surcharge Rate from Jul 1, 2004 thru Mar 31, 2005

1.10%

  

5

Surcharge Rate effective April 1, 2005

1.55%

  

 

  

 

  

6

Beginning Fund Balance

$15,138,048

$98,669,219

 

  

 

  

7

Revenues:

 

  

8

Surcharge (based on Ln 2 thru Ln 5)

$515,448,180

$155,029,094

9

Investment Income

$150,000

$1,441,438

10

Total Revenues (Ln 8 + Ln 9)

$515,598,180

$156,470,532

 

  

 

  

11

Expenditures:

 

  

12

FY 2001-02

 

$524,984

13

FY 2002-03

 

($5,075,695)

14

FY 2003-04

 

$244,552,414

15

FY 2004-05 (Per State Budget Act)

$251,619,000

 

16

FY 2005-06 (Per Governor's Proposed Budget)

$271,394,000

 

17

Total Expenditures (sum of Ln 12 thru Ln 16)

$523,013,000

$240,001,703

       

18

Ending Fund Balance (Ln 6 + Ln 10 - Ln 17)

$7,723,228

$15,138,048

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