Public Service Commission, Administration

Section R746-360-4

Application of Fund Surcharges to Customer Billings

Notice of Proposed Rule

DAR File No.: 32851
Filed: 07/29/2009

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment will reduce the Universal Public Telecommunications Service Support Fund surcharge from 0.5 percent to 0.25 percent. This will more closely match future anticipated funds and fund balance to future anticipated expenditures.

Summary of the rule or change:

The intrastate retail surcharge will be reduced from 0.5 percent to 0.25 percent.

State statutory or constitutional authorization for this rule:

• Section 54-8b-15

Anticipated cost or savings to:

the state budget:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will result in a decrease in the amount paid by state government for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts to determine the amounts paid by specific customers of the telecommunications carriers. The overall reduction in the fund balance over a 2-year period is expected to be $4,000,000, while still retaining a $4,000,000 balance in the fund.

local governments:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will result in a decrease in the amount paid by local governments for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts to determine the amounts paid by specific customers of the telecommunications carriers.

small businesses:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will result in a decrease in the amount paid by all businesses for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts to determine the amounts paid by specific customers of the telecommunications carriers.

persons other than business:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will result in a decrease in the amount paid by all customers for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts to determine the amounts paid by specific customers of the telecommunications carriers.

Compliance costs for affected persons:

The Commission will make the rule effective at a future date which will allow telecommunications carriers collecting the surcharge adequate time to become aware of the reduction and change their billing systems to accommodate the change. This date is anticipated to be 11/01/2009. Costs for telecommunications carriers to collect the reduced surcharge are expected to remain the same as before the proposed amendment. However, there could be a reduction in telecommunications costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will result in a decrease in the amount paid by for retail intrastate telecommunications services purchased from telecommunications carriers which are not self-provided by a carrier. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts to determine the amounts paid by specific customers of the telecommunications carriers.

Comments by the department head on the fiscal impact the rule may have on businesses:

Although there will be a reduction in the amount of the surcharge, the exact impact upon businesses is difficult to project beyond the absolute percentage reduction, from 0.5 to 0.25 percent, a reduction of one half the surcharge amount previously applied to intrastate retail telecommunications services. The dollar amount of the reduction for any individual entity will depend upon the amount of retail intrastate telecommunications services used by the customer.

Ted Boyer, Chairman

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Public Service Commission
Administration
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Sandy Mooy at the above address, by phone at 801-530-6708, by FAX at 801-530-6796, or by Internet E-mail at smooy@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2009

This rule may become effective on:

09/23/2009

Authorized by:

Sandy Mooy, Legal Counsel

R746. Public Service Commission, Administration.

R746-360. Universal Public Telecommunications Service Support Fund.

R746-360-4. Application of Fund Surcharges to Customer Billings.

A. Commencement of Surcharge Assessments -- Commencing June 1, 1998, end-user surcharges shall be the source of revenues to support the fund. Surcharges will be applied to intrastate retail rates, and shall not apply to wholesale services.

B. Surcharge Based on a Uniform Percentage of Retail Rates -- The retail surcharge shall be a uniform percentage rate, determined and reviewed annually by the Commission and billed and collected by all retail providers.

C. Surcharge -- The surcharge to be assessed shall equal [0.45] 0.25 percent of billed intrastate retail rates.

 

KEY: public utilities, telecommunications, universal service

Date of Enactment or Last Substantive Amendment: [October 1, 2008] 2009

Notice of Continuation: November 25, 2008

Authorizing, and Implemented or Interpreted Law: 54-3-1; 54-4-1; 54-7-25; 54-7-26; 54-8b-12; 54-8b-15