DAR File No. 42426
This rule was published in the January 15, 2018, issue (Vol. 2018, No. 2) of the Utah State Bulletin.
Public Service Commission, Administration
Rule R746-360
Universal Public Telecommunications Service Support Fund
Notice of Proposed Rule
(Repeal)
DAR File No.: 42426
Filed: 01/02/2018 09:35:56 AM
RULE ANALYSIS
Purpose of the rule or reason for the change:
During the 2017 General Session, the Utah Legislature enacted S.B. 130 which made numerous changes to the laws governing the Utah Universal Service Fund (UUSF), including the laws governing the Lifeline program. This rule is being repealed in conjunction with a separate filing enacting Rule R746-8, which enacts the necessary UUSF provisions consistent with S.B. 130.
Summary of the rule or change:
Rule R746-360 is repealed in its entirety, and the rules governing the UUSF program are set forth in the new Rule R746-8 that is filed concurrently with this repeal. (EDITOR'S NOTE: The proposed new Rule R746-8 is under Filing No. 42424 in this issue, January 15, 2018, of the Bulletin.)
Statutory or constitutional authorization for this rule:
- Section 54-3-1
- Section 54-8b-10
- Section 54-8b-15
- Section 54-4-1
Anticipated cost or savings to:
the state budget:
None--Repealing Rule R746-360 does not create any costs or savings to the state.
local governments:
None--Repealing Rule R746-360 does not create any impact to local governments.
small businesses:
None--Repealing Rule R746-360 does not create any impact on small businesses.
persons other than small businesses, businesses, or local governmental entities:
None--Repealing Rule R746-360 does not create any impact to other persons.
Compliance costs for affected persons:
None. Repealing R746-360 does not have any impact on any affected persons.
Comments by the department head on the fiscal impact the rule may have on businesses:
A new rule governing the UUSF program, Rule R746-8, will be made effective at the same time Rule R746-360 is repealed. Any fiscal impact of this change is discussed in the rule filing enacting Rule R746-8.
Thad LeVar, Commission Chair
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:
Public Service CommissionAdministration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316
Direct questions regarding this rule to:
- Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at sbintz@utah.gov
- Melanie Reif at the above address, by phone at 801-530-6709, by FAX at 801-530-6796, or by Internet E-mail at mreif@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:
02/14/2018
This rule may become effective on:
02/21/2018
Authorized by:
Michael Hammer, Administrative Law Judge
RULE TEXT
Appendix 1: Regulatory Impact Summary Table*
Fiscal Costs |
FY 2018 |
FY 2019 |
FY 2020 |
State Government |
$0 |
$0 |
$0 |
Local Government |
$0 |
$0 |
$0 |
Small Businesses |
$0 |
$0 |
$0 |
Non-Small Businesses |
$0 |
$0 |
$0 |
Other Person |
$0 |
$0 |
$0 |
Total Fiscal Costs: |
$0 |
$0 |
$0 |
|
|
|
|
Fiscal Benefits |
|
|
|
State Government |
$0 |
$0 |
$0 |
Local Government |
$0 |
$0 |
$0 |
Small Businesses |
$0 |
$0 |
$0 |
Non-Small Businesses |
$0 |
$0 |
$0 |
Other Persons |
$0 |
$0 |
$0 |
Total Fiscal Benefits: |
$0 |
$0 |
$0 |
|
|
|
|
Net Fiscal Benefits: |
$0 |
$0 |
$0 |
*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.
Appendix 2: Regulatory Impact to Non - Small Businesses
This rule repeal does not carry any fiscal impact. The repeal is accompanied by a separate rule filing enacting a new Rule R746-8. Any fiscal impact that may indirectly result from this rule repeal is discussed in that rule filing.
PSC Chair Thad LeVar has reviewed and approved this fiscal analysis.
R746. Public Service Commission, Administration.
[R746-360. Universal Public Telecommunications Service
Support Fund.
R746-360-1. General Provisions.
A. Authorization -- Section 54-8b-15 authorizes the
Commission to establish an expendable trust fund, known as the
Universal Public Telecommunications Service Support Fund, the
"universal service fund," "USF" or the
"fund," to promote equitable cost recovery and
universal service by ensuring that customers have access to basic
telecommunications service at just, reasonable and affordable
rates, consistent with the Telecommunications Act of
1996.
B. Purpose -- The purposes of these rules are:
1. to govern the methods, practices and procedures by
which:
a. the USF is created, maintained, and funded by end-user
surcharges applied to retail rates;
b. funds are collected for and disbursed from the USF to
qualifying telecommunications corporations so that they are able
to recover the reasonable and prudent costs of providing basic
telecommunications service while charging just, reasonable and
affordable rates; and,
2. to ensure funds collected and disbursed from the USF
are used efficiently and in the public interest.
C. Application of the Rules -- The rules apply to all
retail providers that provide intrastate public
telecommunications services.
R746-360-2. Definitions.
A. Affordable Base Rate (ABR) -- means the monthly per
line retail rates, charges or fees for basic telecommunications
service which the Commission determines to be just, reasonable,
and affordable for a designated support area. The Affordable Base
Rate shall be established by the Commission. The Affordable Base
Rate does not include the applicable USF retail surcharge,
municipal franchise fees, taxes, and other incidental
surcharges.
B. Average Revenue Per Line -- means the average revenue
for each access line computed by dividing the sum of all revenue
derived from a telecommunications corporation's provision of
public telecommunications services, including, but not limited
to, revenues received from the provision of services in both the
interstate and intrastate jurisdictions, whether designated
"retail," "wholesale," or some other
categorization, all revenues derived from providing network
elements, services, functionalities, etc. required under the
Federal Telecommunications Act of 1996, Pub. L. 104-104,110
Stat.56 or the Utah Telecommunications Reform Act, Laws of Utah
1995, Chapter 269, all support funds received from the Federal
Universal Service Support Fund, and each and every other revenue
source or support or funding mechanism used to assist in
recovering the costs of providing public telecommunications
services in a designated support area by that telecommunications
corporation's number of access lines in the designated
support area.
C. Basic Telecommunications Service -- means a local
exchange service consisting of access to the public switched
network; touch-tone, or its functional equivalent; local
flat-rated, unlimited usage, exclusive of extended area service;
single-party service with telephone number listed free in
directories that are received free; access to operator services;
access to directory assistance, lifeline and telephone relay
assistance; access to 911 and E911 emergency services; access to
long-distance carriers; access to toll limitation services; and
other services as may be determined by the Commission.
D. Designated Support Area -- means the geographic area
used to determine USF support distributions. A designated support
area, or "support area," need not be the same as a USF
proxy model's geographic unit. The Commission will determine
the appropriate designated support areas for determining USF
support requirements. Unless otherwise specified by the
Commission, the designated support area for a rate-of-return
regulated Incumbent telephone corporation shall be its entire
certificated service territory located in the State of
Utah.
E. Facilities-Based Provider -- means a
telecommunications corporation that uses its own facilities, a
combination of its own facilities and essential facilities or
unbundled network elements obtained from another
telecommunications corporation, or a telecommunications
corporation which solely uses essential facilities or unbundled
network elements obtained from another telecommunications
corporation to provide public telecommunications
services.
F. Geographic Unit -- means the geographic area used by a
USF proxy cost model for calculating costs of public
telecommunications services. The Commission will determine the
appropriate geographic area to be used in determining public
telecommunications service costs.
G. Net Fund Distributions -- means the difference between
the gross fund distribution to which a qualifying
telecommunications corporation is entitled and the gross fund
surcharge revenues collected by that company, when the former
amount is greater than the latter amount.
H. Net Fund Contributions -- means the difference between
the gross fund distribution to which a qualifying
telecommunications corporation is entitled and the gross fund
surcharge revenues generated by that company, when the latter
amount is greater than the former amount.
I. USF Proxy Model Costs -- means the total,
jurisdictionally unseparated, cost estimate for public
telecommunications services, in a geographic unit, based on the
forward-looking, economic cost proxy model(s) chosen by the
Commission. The level of geographic cost disaggregation to be
used for purposes of assessing the need for and the level of USF
support within a geographic unit will be determined by the
Commission. These models shall be provided by the Commission by
January 2, 2001.
J. Universal Service Fund (USF or fund) -- means the
Universal Public Telecommunications Service Support Fund
established by 54-8b-15 and set forth by this rule.
R746-360-3. Duties of Administrator.
A. Selection of Administrator -- The Division of Public
Utilities will be the fund administrator. If the Division is
unable to fulfill that responsibility, the administrator, who
must be a neutral third party, unaffiliated with any fund
participant, shall be selected by the Commission.
B. Cost of Administration -- The cost of administration
shall be borne by the fund; unless administered by a state
agency.
C. Access to Books -- Upon reasonable notice, the
administrator shall have access to the books of account of all
telecommunications corporations and retail providers, which shall
be used to verify the intrastate retail revenue assessed in an
end-user surcharge, to confirm the level of eligibility for USF
support and to ensure compliance with this rule.
D. Maintenance of Records -- The administrator shall
maintain the records necessary for the operation of the USF and
this rule.
E. Report Forms -- The administrator shall develop report
forms to be used by telecommunications corporations and retail
providers to effectuate the provisions of this rule and the USF.
An officer of the telecommunications corporation or retail
provider shall attest to and sign the reports to the
administrator.
F. Administrator Reports -- The administrator shall file
reports with the Commission containing information on the average
revenue per line calculations, projections of future USF needs,
analyses of the end-user surcharges and Affordable Base Rates,
and recommendations for calculating them for the following
12-month period. The report shall include recommendations for
changes in determining basic telecommunications service,
designated support areas, geographic units, USF proxy cost models
and ways to improve fund collections and distributions.
G. Periodic Review -- The administrator, under the
direction of the Commission, shall perform a periodic review of
fund recipients to verify eligibility for future support and to
verify compliance with all applicable state and federal laws and
regulations.
H. Proprietary Information -- Information received by the
administrator which has been determined by the Commission to be
proprietary shall be treated in conformance with Commission
practices.
I. Information Requested -- Information requested by the
administrator which is required to assure a complete review shall
be provided within 45 days of the request. Failure to provide
information within the allotted time period may be a basis for
withdrawal of future support from the USF or other lawful
penalties to be applied.
R746-360-4. Application of Fund Surcharges to Customer
Billings.
(1)(a) "Access line" is defined at Utah Code
Subsection 54-8b-2(1) and is used in this rule, R746-360, to the
extent consistent with federal law.
(b) For purposes of applying the statutory definition of
"access line," the term "connection" is
defined at Utah Code Subsection 54-8b-15(1)(c) and is used in
this rule, R746-360, to the extent consistent with federal
law.
(c)(i) Providers of access lines and providers of
connections are hereafter referred to jointly as
"providers."
(ii) Access lines and connections are hereafter referred
to jointly as "access lines."
(2) Through December 31, 2017, providers shall remit to
the Commission 1.65 percent of billed intrastate retail
rates.
(3) As of January 1, 2018, the Utah Universal Public
Telecommunications Service Support Fund (UUSF) shall be funded as
follows.
(a) Unless Subsection R746-360-4(5) applies, providers
shall remit to the Commission $0.36 per month per access line
that, as of the last calendar day of each month, has a place of
primary use in Utah in accordance with the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et
seq.
(b)(i) "Place of primary use" means the street
address representative of where the customer's use of the
telecommunications service primarily occurs.
(ii) A provider of mobile telecommunications service
shall consider the customer's place of primary use to be the
customer's residential street address or primary business
street address.
(iii) A provider of non-mobile telecommunications service
shall consider the customer's place of primary use to
be:
(A) the customer's residential street address or
primary business street address; or
(B) the customer's registered location for 911
purposes.
(c) A provider may collect the surcharge:
(i) as an explicit charge to each end-user; or
(ii) through inclusion of the surcharge within the
end-user's rate plan.
(d) A provider that offers a multi-line service shall
apply the surcharge to each concurrent real-time voice
communication call session that an end-user can place to or
receive from the public switched telephone network.
(e) A provider that offers prepaid access lines or
connections that permit access to the public telephone network
shall remit to the Commission $0.36 per month per access line for
such service (new access lines or connections, or recharges for
existing lines or connections) purchased on or after January 1,
2018.
(4)(a) A provider shall remit to the Commission no less
than 98.69 percent of its total monthly surcharge
collections.
(b) A provider may retain a maximum of 1.31 percent of
its total monthly surcharge collections to offset the costs of
administering this rule.
(5)(a) Subject to Subsection R746-360-4(5)(b), a provider
may omit the UUSF surcharge with respect to an access line that
is described in Subsection R746-360-4(3), and:
(i) generates revenue that is subject to a universal
service fund surcharge in a state other than Utah for the
relevant month for which the provider omits the UUSF surcharge;
or
(ii) for the relevant month for which the provider omits
the UUSF surcharge, was not used to access Utah intrastate
telecommunications services.
(b) A provider that omits any UUSF surcharge pursuant to
Subsection R746-360-5(a) shall:
(i) maintain documentation for at least 36 months that
the omission complied with Subsection R746-360-5(a); and
(ii) consent to any audit of the documentation requested
by the:
(A) Commission; or
(B) Division of Public Utilities.
R746-360-5. Fund Remittances and Disbursements.
A. Remitting Surcharge Revenues --
1. Telecommunications corporations, not eligible for USF
support funds, providing telecommunications services subject to
USF surcharges shall collect and remit surcharge revenues to the
Commission as follows:
a. if the average monthly USF surcharge collections over
the prior six months was ten dollars or greater, within 45 days
after the end of each month,
b. if the average monthly USF surcharge collections over
the prior six months was less than ten dollars, the
telecommunications corporation may accrue the USF surcharge
collections and submit the accrued collections on a semiannual
basis.
2. Telecommunications corporations eligible for USF
support funds shall make remittances as follows:
a. Prior to the end of each month, the fund administrator
shall inform each qualifying telecommunications corporation of
the estimated amount of support that it will be eligible to
receive from the USF for that month.
b. Net fund contributions shall be remitted to the
Commission within 45 calendar days after the end of each month.
If the net amount owed is not received by that date, remedies,
including withholding future support from the USF, may
apply.
3. The Commission will forward remitted revenues to the
Utah State Treasurer's Office for deposit in a USF
account.
B. Distribution of Funds -- Net Fund distributions to
qualifying telecommunications corporations for a given month
shall be made 60 days after the end of that month, unless
withheld for failure to maintain qualification or failure to
comply with Commission orders or rules.
R746-360-6. Eligibility for Fund Distributions.
A. Qualification --
1. To qualify to receive USF support funds, a
telecommunications corporation shall be designated an
"eligible telecommunications carrier," pursuant to 47
U.S.C. Section 214(e), and shall be in compliance with Commission
orders and rules. Each telecommunications corporation receiving
support shall use that support only to provide basic
telecommunications service and any other services or purposes
approved by the Commission.
2. Additional qualification criteria for Incumbent
telephone corporations - In addition to the qualification
criteria of R746-360-6A.1.,
a. Non-rate-of-return Incumbent telephone corporations,
except Incumbent telephone corporations subject to pricing
flexibility pursuant to 54-8b-2.3 shall make Commission approved,
aggregate rate reductions for public telecommunications services,
provided in the State of Utah, equal to each incremental increase
in USF distribution amounts received after December 1,
1999.
b. Rate-of-return Incumbent telephone corporations shall
complete a Commission review of their revenue requirement and
public telecommunications services' rate structure prior to
any change in their USF distribution which differs from a prior
USF distribution, beginning with the USF distribution for
December, 1999.
B. Rate Floor.
1. Unless a petition brought pursuant to Subsection
(B)(2) is granted after adjudication, to be eligible for USF
subsidization, a telecommunications corporation shall charge, at
a minimum, $18 per line for basic telecommunications
service.
2.a. A telecommunications corporation may petition the
Commission to deviate from the Affordable Base Rate set forth in
this Subsection (B)(1).
b. A telecommunications corporation that files a petition
under this Subsection (B)(2)(a) shall:
i. demonstrate that the Affordable Base Rate is not
reasonable in the particular geographic area served; or
ii. impute income up to the Affordable Base Rate in
calculating the telecommunications corporation's state USF
subsidization.
C. Lifeline Requirement -- A telecommunications
corporation may qualify to receive distributions from the fund
only if it offers Lifeline service on terms and conditions
prescribed by the Commission.
D. Exclusion of Resale Providers -- Only facilities-based
providers, will be eligible to receive support from the fund.
Where service is provided through one telecommunications
corporation's resale of another telecommunications
corporation's service, support may be received by the latter
only.
R746-360-7. Calculation of Fund Distributions in
Non-rate-of-Return Regulated Incumbent Telephone Corporation
Territories.
A. Use of Proxy Cost Models -- The USF proxy cost
model(s) selected by the Commission and average revenue per line
will be used to determine fund distributions within designated
support areas.
B. Use of USF Funds --Telecommunications corporations
shall use USF funds to support each primary residential line in
active service which it furnishes in each designated
area.
C. Determination of Support Amounts --
1. Incumbent telephone corporation - Monies from the fund
will equal the numerical difference between USF proxy model cost
estimates of costs to provide residential Basic
Telecommunications Service in the designated support area and the
product of the Incumbent telephone corporation's Average
Revenue per line, for the designated support area, times the
number of Incumbent telephone corporation's active
residential access lines in the designated support area.
2. Telecommunications corporations other than Incumbent
telephone corporations - Monies from the fund will equal the
Incumbent telephone corporation's average residential access
line support amount for the respective designated support area,
determined by dividing the Incumbent telephone corporation's
USF monies for the designated support area by the Incumbent
telephone corporation's active residential access lines in
the designated support area, times the eligible
telecommunications corporation's number of active residential
access lines.
D. Lifeline Support -- Eligible telecommunications
corporations shall receive additional USF funds to recover any
discount granted to lifeline customers, participating in a
Commission approved Lifeline program, that is not recovered from
federal lifeline support mechanisms.
E. Exemptions -- Telecommunications corporations may
petition to receive an exemption for any provision of this rule
or to receive additional USF support, for use in designated
support areas, to support additional services which the
Commission determines to be consistent with universal service
purposes and permitted by law.
R746-360-8. Calculation of Fund Distributions in
Rate-of-Return Incumbent Telephone Corporation Territories.
(A) Determination of Support Amounts --
(1) Incumbent telephone corporation - Monies from the
fund will equal the numerical difference between the Incumbent
telephone corporation's total embedded costs of providing
public telecommunications services, for a designated support
area, less the product of the Incumbent telephone
corporation's Average Revenue Per Line, for the designated
support area, times the Incumbent telephone corporation's
active access lines in the designated support area. To the extent
the Commission finds that inclusion of any cost will result in an
inefficient use of USF funds or in a use of USF funds that is
inconsistent with the public interest, such cost will be excluded
from total embedded costs. Total embedded costs shall include a
weighted average rate of return on capital of the intrastate and
interstate jurisdictions. For example, in the case of an
Incumbent telephone corporation whose costs are allocated fifty
percent to each jurisdiction and whose interstate return is 11.25
percent and whose intrastate return authorized by the Commission
is 9 percent, the weighted average return on capital would be
10.125 percent.
(a) In order to determine the interstate return on
capital to calculate the weighted average rate of return on
capital for Incumbent telephone corporations, the Commission
shall:
(i) use the prior year return reported by the National
Exchange Carriers Association (NECA) to the Federal
Communications Commission (FCC) on FCC Form 492 for Incumbent
telephone corporations that do separations between intrastate and
interstate jurisdictions under 47 CFR Part 36. In the event that
the Incumbent local telephone corporation uses a future test
period as provided in Utah Code Ann. Subsection 54-4-4(3)(b)(i),
the interstate return for these Incumbent telephone corporations
shall be the average of the actual return for the prior three
years as reported on FCC Form 492.
(ii) use NECA's most recent interstate allocation
computation filed at the FCC under 47 CFR Part 69.606 and the
actual interstate return on capital reported by NECA as described
in R746-360-8 A.1.a.i. for average schedule Incumbent telephone
corporations.
(iii) use the actual interstate return of an Incumbent
telephone corporation's relevant tariff group reported to the
FCC in its most recent FCC Form 492A for Incumbent telephone
corporations that are regulated on a price-cap basis in the
interstate jurisdiction.
(2) Telecommunications corporations other than Incumbent
telephone corporations - Monies from the fund will equal the
respective Incumbent telephone corporation's average access
line support amount for the designated support area, determined
by dividing the Incumbent telephone corporation's USF monies
for the designated support area by the Incumbent telephone
corporation's active access lines in the designated support
area, times the eligible telecommunications corporation's
number of active access lines in the designated support
area.
(B) Lifeline Support -- Eligible telecommunications
corporations shall receive additional USF funds to recover any
discount granted to lifeline customers, participating in a
Commission-approved Lifeline program, that is not recovered from
federal lifeline support mechanisms.
(C) Exemptions -- Telecommunications corporations may
petition to receive an exemption for any provision of this rule
or to receive additional USF support, for use in designated
support areas, to support additional services which the
Commission determines to be consistent with universal service
purposes and permitted by law.
R746-360-9. One-Time Distributions From the Fund.
A. Applications for One-Time Distributions --
Telecommunications corporations, whether they are or are not
receiving USF funds under R746-360-7 or R746-360-8, potential
customers not presently receiving service because facilities are
not available, or customers receiving inadequate service may
apply to the Commission for one-time distributions from the fund
for extension of service to a customer, or customers, not
presently served or for amelioration of inadequate
service.
1. These distributions are to be made only in
extraordinary circumstances, when traditional methods of funding
and service provision are infeasible.
2. One-time distributions will not be made for:
a. New subdivision developments;
b. Property improvements, such as cable placement, when
associated with curb and gutter installations; or
c. Seasonal developments that are exclusively vacation
homes.
i. Vacation home is defined as: A secondary residence
which is primarily used for recreation and is unoccupied for a
period of four consecutive weeks per year.
3. An application for a one-time distribution may be
filed with the Commission by an individual or group of consumers
desiring telephone service or improved service, a
telecommunications corporation on behalf of those consumers, the
Division of Public Utilities, or any entity permitted by law to
request agency action. An application shall identify the
service(s) sought, the area to be served and the individuals or
entities that will be served if the one-time distribution is
approved.
4. Following the application's filing, affected
telecommunications corporations shall provide engineering,
facilities, costs, and any other pertinent information that will
assist in the Commission's consideration of the
application.
5. In considering the one-time distribution application,
the Commission will examine relevant facts including the type and
grade of service to be provided, the cost of providing the
service, the demonstrated need for the service, whether the
customer is within the service territory of a telecommunications
corporation, whether the proposed service is for a primary
residence, the provisions for service or line extension currently
available, and other relevant factors to determine whether the
one-time distribution is in the public interest.
B. Presumed Reasonable Amounts and Terms -- Unless
otherwise ordered by the Commission, the maximum one-time
distribution will be no more than $10,000 per customer for
customers of rate-of-return regulated companies. For customers of
non-rate of return companies, the maximum one-time distribution
shall be calculated so that the required customer payments would
equal the payments required from a customer of a rate-of-return
regulated company. The Commission will presume a company's
service or line extension terms and conditions reasonable, for a
subscriber in connection with one-time universal service fund
distribution requests, if the costs of service extension, for
each extension, are recovered as follows:
1. For rate-of-return regulated Local Exchange Carriers
who request USF One-Time Distribution support for facility
placement: The first $2,500 of cost coverage per account is
provided by the company; and for cost amounts exceeding $2,500
per account up to two times the statewide average loop investment
per account for rate-of-return regulated telecommunication
companies, as determined annually by the Division of Public
Utilities, the company will pay 50 percent of the costs of the
project.
2. For non-rate-of-return Local Exchange Carriers who
request USF One-Time Distribution support for facility placement
the first $2,500 of cost coverage per account is provided by the
company; and all other costs are shared between the customer and
the fund as provided herein.
3. For projects that exceed $2,500 per account, but are
equal to or less than $10,000 per account, the customer shall pay
25 percent of the costs that exceed $2,500. For projects that
exceed $10,000 per account, but are equal to or less than $20,000
per account, the customer shall pay 50 percent of the costs that
are greater than $10,000 plus the previously calculated amount.
For projects exceeding $20,000 per account the customer shall pay
75 percent of the cost above $20,000 until the State Universal
Service Support Fund has paid the maximum amount as provided
herein, any project costs above that level will be paid for 100
percent by the customer.
4. The State Universal Service Support Fund shall pay the
difference between the sum of the defined company contributions
plus customer contribution amounts and the total project cost up
to the maximum amount provided herein. To the extent the
Commission finds that inclusion of any cost will result in an
inefficient use of USF funds or in a use of USF funds that is
inconsistent with the public interest, such cost will be excluded
from the total project cost.
5. Other terms and conditions for service extension shall
be reviewed by the Commission in its consideration of an
application and may be altered by the Commission in order to
approve the use of universal service funds through the requested
one-time distribution.
C. Combination of One-Time Distribution Funds with
Additional Customer Funds and Future Customer Payment Recovery
--
1. At least 51 percent of the potential customers must be
full-time residents in the geographic area being petitioned for
and must be willing to pay the initial up-front contribution to
the project as calculated by the Commission or its
agent.
2. Qualified customers in the area shall be notified by
the telecommunications corporation of the nature and extent of
the proposed service extension including the necessary customer
contribution amounts to participate in the project. Customer
contribution payments shall be made prior to the start of
construction. In addition to qualified customers, the Local
Exchange Company needs to make a good faith effort to contact all
known property owners within the geographic boundaries of the
proposed project and invite them to participate on the same terms
as the qualified customers. Local Exchange Companies may ask
potential customers to help in the process of contacting other
potential customers.
3. New developments and empty lots will not be considered
in the cost analysis for USF construction projects unless the
property owner is willing to pay the per account costs for each
lot as specified in this rule.
4. Potential customers who are notified and initially
decline participation in the line extension project, but
subsequently decide to participate, prior to completion of the
project, may participate in the project if they make a customer
contribution payment, prior to completion of the project, of 105
percent of the original customer contribution amount.
5. For a period of five years following completion of a
project, new customers who seek telecommunications service in the
project area, shall pay a customer contribution payment equal to
110 percent of the amount paid by the original customers in the
project.
6. The telecommunications corporation shall ensure that
all customer contribution payments required by R746-360-9(C)(3),
(4), and (5) are collected. Funds received through these payments
shall be sent to the universal service fund administrator. The
company is responsible for tracking and notification to the
Commission when the USF has been fully compensated. All monies
will be collected and reported by the end of each calendar year,
December 31st.
7. For each customer added during the five-year period
following project completion, the telecommunications corporation
and new customers shall bear the costs to extend service pursuant
to the company's service or line extension terms and
conditions, up to the telecommunications corporation's
original contribution per customer for the project and the
customer contributions required by this rule. The company may
petition the Commission for a determination of the recovery from
the universal service fund and the new customer for costs which
exceed this amount.
D. Impact of Distribution on Rate of Return Companies --
A one-time distribution from the fund shall be recorded on the
books of a rate base, rate of return regulated LEC as an aid to
construction and treated as an offset to rate base.
E. Notice and Hearing -- Following notice that a one-time
distribution application has been filed, any interested person
may request a hearing or seek to intervene to protect his
interests.
F. Bidding for Unserved Areas -- If only one
telecommunications corporation is involved in the one-time
distribution request, the distribution will be provided based on
the reasonable and prudent actual or estimated costs of that
company. If additional telecommunications corporations are
involved, the distribution will be determined on the basis of a
competitive bid. The estimated amount of the one-time
distribution will be considered in evaluating each bid. Fund
distributions in that area will be based on the winning
bid.
R746-360-10. Altering the USF Charges and the End-User
Surcharge Rates.
The uniform surcharge shall be adjusted periodically to
minimize the difference between amounts received by the fund and
amounts disbursed.
R746-360-11. Support for Schools, Libraries, and Health Care
Facilities. Calculation of Fund Distributions.
The Universal Service Fund rules for schools, libraries
and health care providers, as prescribed by the Federal
Communications Commission in Docket 96-45, 97-157 Sections X and
XI, paragraphs 424 - 749, of Order issued May 8, 1996, and CFR
Sections 54.500 through 54.623 inclusive, incorporated by this
reference, is the prescribed USF method that shall be employed in
Utah. Funding shall be limited to funds made available through
the federal universal service fund program.
KEY: affordable base rate, public utilities,
telecommunications, universal service fund
Date of Enactment or Last Substantive Amendment: October 11,
2017
Notice of Continuation: November 13, 2013
Authorizing, and Implemented or Interpreted Law: 54-3-1;
54-4-1; 54-8b-15]
Additional Information
More information about a Notice of Proposed Rule is available online.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2018/b20180115.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at sbintz@utah.gov; Melanie Reif at the above address, by phone at 801-530-6709, by FAX at 801-530-6796, or by Internet E-mail at mreif@utah.gov. For questions about the rulemaking process, please contact the Office of Administrative Rules.