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California High Cost Fund-A

California High Cost Fund-A (CHCF-A)

CHCF-A Program Overview:

The CHCF-A was implemented in accordance with Public Utilities Code § 275.6 and § 739.3. It provides a source of supplemental revenues to 13 small local exchange carriers (LECs) for the purpose of minimizing any basic telephone service rate disparity between rural and metropolitan areas.

CHCF-A is funded by an all-end-user surcharge collected by telecommunications carriers which, in turn, remit the surcharge monies to a financial institution as directed by the Commission or its representatives. Procedures for the administration of CHCF-A are outlined in the Implementation of the California Intrastate High Cost Fund adopted by the Commission in D.91-09-042, available through this link:

The 13 small LECs in California that are eligible to draw revenue from the CHCF-A program are:

·     Calaveras Telephone Company

·     California-Oregon Telephone Company

·     Ducor Telephone Company

·     Foresthill Telephone Company

·     Happy Valley Telephone Company

·     Hornitos Telephone Company

·     Kerman Telephone Company

·     Pinnacles Telephone Company

·     The Ponderosa Telephone Company

·     Sierra Telephone Company

·     Siskiyou Telephone Company

·     The Volcano Telephone Company

·     Winterhaven Telephone Company

Three of the listed LECs do not currently draw from the CHCF-A fund:

·     Happy Valley Telephone Company

·     Hornitos Telephone Company

·     Winterhaven Telephone Company


CHCF-A Order Instituting Rulemaking:

This rulemaking (R.11-11-007) ordered a review of the CHCF-A.  The CPUC ordered the review in response to market, regulatory, and technological changes since the CHCF-A program was first established in 1987.  You may review the rulemaking application and documents submitted during the rulemaking process through this link:,57,RIR:P5_PROCEEDING_SELECT:R1111007

Advisory Committee

The CHCF-A Administrative Committee, is an advisory board formed pursuant to Public Utilities Code § 275(a), The CHCF-A Administrative Committee meets on a quarterly basis and advises the Commission on the development, implementation, and administration of the CHCF-A program.  More information on the CHCF-A Administrative Committee, including a list of members, is available through this link:

Additionally, information on the CHCF-A Administrative Committee charter is available through this link:

CHCF-A Reports

Staff Reports of small LECs operating in California who are eligible to receive CHCF-A funding:

·         Comparative Analysis of Small LEC CHCF A Carriers to Non CHCF A Carriers - 2011

·         Comparative Analysis of Small LEC CHCF-A Carriers to Non-CHCF-A Carriers - 2010

Contact Information


A hard copy of Commission decisions/orders can be obtained for a fee by calling 415-703-2045. Questions about this program should be directed to Felix Robles by phone at 415-703-2801 or by e-mail to




Last Modified: 2/28/2014

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