16 TAC §§26.401, 26.403, 26.404, 26.410, 26.413, 26.414, 26.415, 26.417, 26.418
The Public Utility Commission of Texas adopts amendments
to §26.401, §26.403, §26.404, §26.413, §26.414, §26.415, §26.417,
and §26.418 and new §26.410 relating to the Texas Universal Service
Fund (TUSF). The amendments are adopted with changes to the proposed text
as published in the November 26, 1999 issue of the
Texas Register
(24 TexReg 10462). The new rule and amended rules are
necessary as a result of Senate Bill 560 (SB 560), Act of May 30, 1999, 76th
Legislature, Regular Session, chapter 1212, 1999 Texas Session Law Service
4210 (Vernon) (to be codified as amendments to the Public Utility Regulatory
Act (PURA), Texas Utilities Code Annotated §§56.021, 56.023, 56.024,
56.026, 56.028, 56.071, 56.072). The amendments and new rule are adopted under
Project Number 21163. The commission will not adopt amendments to §26.420
as published in the
Texas Register
. The commission
will republish §26.420 to make changes further clarifying the administration
of the TUSF.
The commission received comments on the proposed new and amended rules
from AT&T Communications of the Southwest, Inc. (AT&T), MCI WorldCom
(MCIW), Southwestern Bell Telephone (SWBT), and Texas Statewide Telephone
Cooperative, Inc. (TSTCI).
Commentors in favor of adoption of the rules are AT&T, MCIW, and TSTCI.
SWBT is not in favor of the adoption of the rules.
TSTCI has no problems with the rules as published.
Section 26.403 established financial guidelines for financial assistance
to eligible telecommunications providers (ETPs) that serve high cost areas.
Section 26.403(e) established the criteria for determining the amount of support
an ETP will receive under the Texas High Cost Universal Service Plan (THCUSP).
AT&T recommends that §26.403(e)(3)(D) be deleted and instead insert
the word "partially" at the appropriate place in §26.403(e)(3)(C). AT&T
contends that the statute mentions services "partially" and "solely" provisioned
through the use of unbundled network elements (UNEs) in a single breath and
refers to a single allocation method.
The commission agrees with AT&T's recommendation that the allocation
methods be clarified. The commission modifies §26.403(e)(3)(C) appropriately.
Section 26.403(e)(3) sets forth the calculations for THCUSP payments. Subsection
(e)(3)(C) sets forth the calculation adjustments made when service is provided
solely or partially through the purchase of UNEs. Section 26.420(g)(3)(B)
is related to §26.403(e)(3)(C) in that it discusses TUSF disbursement
reductions applicable when service is provided solely or partially through
the purchase of UNEs. AT&T states that §26.420(g)(3)(B) should refer
to the commission decision in Docket Number 18515, instead of merely incorporating
that decision by reference.
The commission agrees with AT&T's suggestion. However, the commission
believes the change is more appropriately incorporated into §26.403.
Therefore the commission incorporates into §26.403(e)(3)(C) the commission's
decision in Docket Number 18515 regarding the allocation of support when service
is provided either solely or partially through UNEs.
Section 26.410 implements the provisions of PURA §56.028. AT&T
states that it is unaware of any other reasonable criteria, beyond PURA §56.028,
that should be applied to further define the scope of the eligible High Cap
services addressed in §26.410. AT&T states that the reimbursements
for rate reductions supported under §26.410 should not duplicate discounts
or other rate reductions supported through the educational percentage discount
rate (e- rate) discounts in §26.216 relating to Educational Percentage
Discount Rates (E-Rates). AT&T proposes that the extent that a discount
to a tariffed rate is available under §26.216, TUSF support under §26.410
should be applied only to any remaining difference between the discounted
rate and the lowest rate offered by a Chapter 58 incumbent local exchange
carrier (ILEC), pursuant to PURA §56.028. Alternatively, AT&T suggests
that the commission require a carrier to elect to receive support only under
one of the two sections.
The commission agrees that to the extent a discount to a tariffed rate
is available under §26.216 TUSF support under §26.410 should be
applied only to any remaining difference between the discounted rate and the
lowest rate offered by a Chapter 58 ILEC, pursuant to PURA §56.028. Therefore, §26.410(c),
which addresses the terms of reimbursement, is modified appropriately.
AT&T also states that §26.410 may require a local exchange carrier
(LEC) to establish rates below its costs, whereas, §26.141(e) and (f),
relating to Distance learning, Information Sharing Programs, and Interactive
Multimedia Communications, require service to be provided at cost based rates.
To avoid problems with the conflicting language, AT&T suggests that carriers
be required to state the basis on which they are establishing rates (statewide
cost, customer specific cost, or by price comparison). At a minimum, AT&T
urges the commission to establish some comparability between customers before
allowing a small LEC to receive reimbursement for reducing its rates to a
Chapter 58 company's customer-specific contract rate.
The commission agrees with AT&T's concern and modifies §26.410(d),
which establishes the reporting requirements for ILECs receiving reimbursement
for providing intraLATA interexchange high capacity service at reduced rates
for entities described in PURA §58.253(a). The commission adds §26.410(d)(2)
to require a small LEC, upon commission request, to designate the basis on
which it is establishing rates.
Section 26.414 establishes the statewide Telecommunications Relay Service
(TRS). Section 26.414(e) addresses the composition and responsibilities of
the Relay Texas Advisory Committee (RTAC). AT&T recommends that §26.414(e)(1)(A)
be revised because it is awkward. AT&T believes the language would be
more understandable if revised to read: "(A) two persons with disabilities
other than disabilities of hearing and speech that impair the ability to effectively
access the telephone network."
The commission agrees and incorporates the modification.
Section 26.417 provides the requirements for the commission to designate
telecommunications providers as ETPs to receive funds from the TUSF. Section
26.417(g) establishes the circumstances in which an ETP designation can be
relinquished. SWBT argues that §26.417(g)(3)(A) and (B) inappropriately
give the commission authority to eliminate or partially reduce an electing
company's TUSF disbursements for reasons other than as specifically set forth
in PURA §56.026(c)(1) and (c)(2). SWBT asserts that these two sections
do not comply with PURA and therefore recommends that they be deleted from
the rules. SWBT adds that these two sections rely on the quality of service
rules under development in Project 19666, which as currently drafted, only
apply to dominant certificated telecommunications utilities (DCTU). To ensure
equality, the proposed quality of service rules should be amended to make
sure that they apply either to all telecommunications providers or, at a minimum,
to any telecommunications provider that seeks to be designated as an ETP to
receive TUSF support.
AT&T has no opposition to the amended §26.417(g)(3)(A) and new §26.417(g)(3)(B).
AT&T states that SWBT's recommendation would allow SWBT to receive TUSF
disbursements even if it were no longer qualified as an ETP and not offering
local service to customers. AT&T believes the commission should support
a more balanced and reasonable construction of PURA than that suggested by
SWBT. AT&T opposes SWBT's suggestion that the quality of service rules
be applied to all telecommunications providers. AT&T states that whatever
justification may exist in the statute for treating all ETPs the same does
not extend to all telecommunications providers generally.
The commission disagrees with SWBT's assertion that the only two criteria
that allow the commission to eliminate or partially reduce an electing company's
TUSF disbursements are those specifically set forth in PURA §56.026(c)(1)
and (c)(2). The commission relies on PURA §56.023(a)(1) and (b) as its
source of authority. PURA §56.023(a)(1) requires the commission to adopt
eligibility criteria and review procedures. PURA §56.023(b) mandates
that the eligibility criteria require that a telecommunications provider be
in compliance with the commission's quality of service requirements.
The commission also modifies §26.417(f)(1)(B)(V) to update references
to §23.61(c), (d) and (e) that were repealed and replaced by §§26.52,
26.53 and 26.54. This change conforms the rule to the same change already
made in §26.417(c)(1)(D).
As regards SWBT's suggestion that the quality of service rules be amended
to apply to all telecommunications providers, the commission does not believe
this is the appropriate forum to make that specific modification. However,
the commission notes that these TUSF rules, as amended, apply the same service
quality standards to all ETPs, as suggested by SWBT, in a manner consistent
with AT&T's comments.
All comments, including any not specifically referenced herein, were fully
considered by the commission.
These sections are adopted under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2000) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction and PURA §56.021, which requires the commission to adopt
and enforce rules requiring local exchange companies to establish a universal
service fund.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
56.021, 56.023, 56.024, 56.026, 56.028, 56.071, 56.072, and 56.1085.
§26.401.Texas Universal Service Fund (TUSF).
(a)
Purpose. The purpose of the Texas Universal Service Fund
(TUSF) is to implement a competitively neutral mechanism that enables all
residents of the state to obtain the basic telecommunications services needed
to communicate with other residents, businesses, and governmental entities.
Because targeted financial support may be needed in order to provide and price
basic telecommunications services in a manner to allow accessibility by consumers,
the TUSF will assist telecommunications providers in providing basic local
telecommunications service at reasonable rates in high cost rural areas. In
addition, the TUSF will reimburse qualifying entities for revenues lost as
a result of providing Lifeline and Tel-assistance services to qualifying low-income
consumers under the Public Utility Regulatory Act (PURA); reimburse telecommunications
carriers providing statewide telecommunications relay access service and qualified
vendors providing specialized telecommunications devices and services for
the disabled; and reimburse the Texas Department of Human Services, the Texas
Department of Housing and Community Affairs, the Texas Department for the
Deaf and Hard of Hearing, the TUSF administrator, and the Public Utility Commission
for costs incurred in implementing the provisions of PURA Chapter 56 (relating
to Telecommunications Assistance and Universal Service Fund).
(b)
Programs included in the TUSF.
(1)
Section 26.403 of this title (relating to the Texas High
Cost Universal Service Plan (THCUSP));
(2)
Section 26.404 of this title (relating to the Small
and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan);
(3)
Section 26.406 of this title (relating to the Implementation
of the Public Utility Regulatory Act §56.025);
(4)
Section 26.408 of this title (relating to Additional
Financial Assistance (AFA));
(5)
Section 26.410 of this title (relating to Universal
Service Fund Reimbursement for Certain IntraLATA Service);
(6)
Section 26.412 of this title (relating to Lifeline
Service and Link Up Service Programs);
(7)
Section 26.413 of this title (relating to Tel-Assistance
Service);
(8)
Section 26.414 of this title (relating to Telecommunications
Relay Service (TRS));
(9)
Section 26.415 of this title (relating to Specialized
Telecommunications Assistance Program (STAP);
(10)
Section 26.417 of this title (relating to Designation
as Eligible Telecommunications Providers to Receive Texas Universal Service
Funds (TUSF));
(11)
Section 26.418 of this title (relating to Designation
of Common Carriers as Eligible Telecommunications Carriers to Receive Federal
Universal Service Funds); and
(12)
Section 26.420 of this title (relating to Administration
of Texas Universal Service Fund (TUSF)).
§26.403.Texas High Cost Universal Service Plan (THCUSP).
(a)
Purpose. This section establishes guidelines for financial
assistance to eligible telecommunications providers (ETPs) that serve the
high cost rural areas of the state, other than study areas of small and rural
incumbent local exchange companies (ILECs), so that basic local telecommunications
service may be provided at reasonable rates in a competitively neutral manner.
(b)
Definitions. The following words and terms when used in
this section shall have the following meaning unless the context clearly indicates
otherwise:
(1)
Benchmark - The per-line amount above which THCUSP support
will be provided.
(2)
Business line - The telecommunications facilities
providing the communications channel that serves a single-line business customer's
service address. For the purpose of this definition, a single-line business
line is one to which multi-line hunting, trunking, or other special capabilities
do not apply.
(3)
Eligible line - A residential line and a single-line
business line over which an ETP provides the service supported by the THCUSP
through its own facilities, purchase of unbundled network elements (UNEs),
or a combination of its own facilities and purchase of UNEs.
(4)
Eligible telecommunications provider (ETP) - A telecommunications
provider designated by the commission pursuant to §26.417 of this title
(relating to Designation as Eligible Telecommunications Providers to Receive
Texas Universal Service Funds (TUSF)).
(5)
Residential line - The telecommunications facilities
providing the communications channel that serves a residential customer's
service address. For the purpose of this definition, a residential line is
one to which multi-line hunting, trunking, or other special capabilities do
not apply.
(c)
Application. This section applies to telecommunications
providers that have been designated ETPs by the commission pursuant to §26.417
of this title.
(d)
Service to be supported by the THCUSP. The THCUSP shall
support basic local telecommunications services provided by an ETP in high
cost rural areas of the state and is limited to those services carried on
all flat rate residential lines and the first five flat rate single-line business
lines at a business customer's location. Local measured residential service,
if chosen by the customer and offered by the ETP, shall also be supported.
(1)
Initial determination of the definition of basic local
telecommunications service. Basic local telecommunications service shall consist
of the following:
(A)
flat rate, single party residential and business local
exchange telephone service, including primary directory listings;
(B)
tone dialing service;
(C)
access to operator services;
(D)
access to directory assistance services;
(E)
access to 911 service where provided by a local authority;
(F)
dual party relay service;
(G)
the ability to report service problems seven days a week;
(H)
availability of an annual local directory;
(I)
access to toll services; and
(J)
lifeline and tel-assistance services.
(2)
Subsequent determinations.
(A)
Timing of subsequent determinations.
(i)
The definition of the services to be supported by the THCUSP
shall be reviewed by the commission every three years from February 10, 1998.
(ii)
The commission may initiate a review of the definition
of the services to be supported on its own motion at any time.
(B)
Criteria to be considered in subsequent determinations.
In evaluating whether services should be added to or deleted from the list
of supported services, the commission may consider the following criteria:
(i)
the service is essential for participation in society;
(ii)
a substantial majority, 75% of residential customers,
subscribe to the service;
(iii)
the benefits of adding the service outweigh the costs;
and
(iv)
the availability of the service, or subscription levels,
would not increase without universal service support.
(e)
Criteria for determining amount of support under THCUSP.
The TUSF administrator shall disburse monthly support payments to ETPs qualified
to receive support pursuant to this section. The amount of support available
to each ETP shall be calculated using the base support amount available as
provided under paragraph (1) of this subsection as adjusted by the requirements
of paragraph (3) of this subsection.
(1)
Determining base support amount available to ETPs. The
monthly per-line support amount available to each ETP shall be determined
by comparing the forward-looking economic cost, computed pursuant to subparagraph
(A) of this paragraph, to the applicable benchmark as determined pursuant
to subparagraph (B) of this paragraph. The monthly base support amount is
the sum of the monthly per-line support amounts for each eligible line served
by the ETP, as required by subparagraph (C) of this paragraph.
(A)
Calculating the forward-looking economic cost of service.
The monthly cost per-line of providing the basic local telecommunications
services and other services included in the benchmark shall be calculated
using a forward-looking economic cost methodology.
(B)
Determination of the benchmark. The commission shall establish
two benchmarks for the state, one for residential service and one for single-line
business service. The benchmarks for both residential and single-line businesses
will be calculated using the statewide average revenue per line as described
in clause (i) and (ii) of this subparagraph for all ETPs participating in
the THCUSP.
(i)
Residential revenues per line are the sum of the residential
revenues generated by basic and discretionary local services, as well as a
reasonable portion of toll and access services, for the year ending December
31, 1997, divided by the average number of residential lines served for the
same period, divided by 12.
(ii)
Business revenues per line are the sum of the business
revenues generated by basic and discretionary local services for single-line
business lines, as well as a reasonable portion of toll and access services
for the year ending December 31, 1997, divided by the average number of single-line
business lines served for the same period, divided by 12.
(C)
Support under the THCUSP is portable with the consumer.
An ETP shall receive support for residential and the first five single-line
business lines at the business customer's location that it is serving over
eligible lines in such ETP's THCUSP service area.
(2)
Proceedings to determine THCUSP base support.
(A)
Timing of determinations.
(i)
The commission shall review the forward-looking cost methodology,
the benchmark levels, and/or the base support amounts every three years from
February 10, 1998.
(ii)
The commission may initiate a review of the forward-looking
cost methodology, the benchmark levels, and/or the base support amounts on
its own motion at any time.
(B)
Criteria to be considered in determinations. In considering
the need to make appropriate adjustments to the forward-looking cost methodology,
the benchmark levels, and/or the base support amount, the commission may consider
current retail rates and revenues for basic local service, growth patterns,
and income levels in low-density areas.
(3)
Calculating amount of THCUSP support payments
to individual ETPs. After the monthly base support amount is determined, the
TUSF administrator shall make the following adjustments each month in order
to determine the actual support payment that each ETP may receive each month.
(A)
Access revenues adjustment. If an ETP is an ILEC that has
not reduced its rates pursuant to §26.417 of this title, the base support
amount that such ETP is eligible to receive shall be decreased by such ETP's
carrier common line (CCL), residual interconnection charge (RIC), and toll
revenues for the month.
(B)
Adjustment for federal USF support. The base support amount
an ETP is eligible to receive shall be decreased by the amount of federal
universal service high cost support received by the ETP.
(C)
Adjustment for service provided solely or partially through
the purchase of unbundled network elements (UNEs). If an ETP provides supported
services over an eligible line solely or partially through the purchase of
UNEs, the THCUSP support for such eligible line may be allocated between the
ETP providing service to the end user and the ETP providing the UNEs according
to the methods outlined below.
(i)
Solely through UNEs.
(I)
USF cost > (UNE rate + retail cost additive (R)) >revenue
benchmark (RB). USF support should be explicitly shared between the ETP serving
the end user and the ILEC selling the UNEs in the instance in which the area-specific
USF cost/line exceeds the sum of (combined UNE rate/line + R), and the latter
exceeds the RB. Specifically, the ILEC would receive the difference between
USF cost and (UNE rate + R), while the ETP would receive the difference between
(UNE rate + R) and RB. Splitting the USF support payment in this way allows
both the ILEC and the ETP to recover, on average, the costs of serving the
subscriber at rates consistent with the benchmark. Moreover, this solution
is competitively neutral in an additional respect: the ILEC, as the carrier
of last resort (COLR), is indifferent between directly serving the average
end user and indirectly doing so through the sale of UNEs to a competing ETP.
Also, facilities-based competition is encouraged only if it is economic, i.e.,
reflective of real cost advantages in serving the customer; or
(II)
USF cost > RB > (UNE rate + R). The ILEC would receive
the difference between USF cost and RB. In this case, where USF cost > RB
> (UNE rate + R), giving (USF cost - RB) to the ILEC is necessary to diminish
the undue incentive for the ETP to provide service through UNE resale, and
to lessen the harm done to the ILEC in such a situation. Allowing the ILEC
to recover (USF cost -RB) would minimize financial harm to the ILEC; or
(III)
(UNE rate + R)> USF cost > RB. The ETP would receive
the difference between USF cost and RB. Where (UNE rate + R)> USF cost > RB,
giving (USF cost - RB) to the ETP is necessary to diminish the undue incentive
for the ETP not to serve the end user by means of UNE resale. Allowing the
ETP to recover (USF cost - RB) would minimize financial harm to the ETP.
(ii)
Partially through UNEs. For the partial-provision scenario,
THCUSP support shall be shared between the ETP and the ILEC based on the percentage
of total per-line cost that is self-provisioned by the ETP. Cost-category
percentages for each wire center shall be derived by adding a retail cost
additive and the HAI model costs for five UNEs (loop, line port, end-office
usage, signaling, and transport). The ETP's retail cost additive shall be
derived by multiplying the ILEC-specific wholesale discount percentage by
the appropriate (residential or business) revenue benchmark.
(f)
Reporting requirements. An ETP eligible to receive support
pursuant to this section shall report the following information to the commission
or the TUSF administrator.
(1)
Monthly reporting requirements. An ETP shall report the
following to the TUSF administrator on a monthly basis:
(A)
information regarding the access lines on the ETP's network
including:
(i)
the total number of access lines on the ETP's network,
(ii)
the total number of access lines sold as UNEs,
(iii)
the total number of access lines sold for total service
resale,
(iv)
the total number of access lines serving end use customers,
and
(v)
the total number of eligible lines for which the ETP seeks
TUSF support;
(B)
the rate that the ETP is charging for residential and single-line
business customers for the services described in subsection (d) of this section;
and
(C)
a calculation of the base support computed in accordance
with the requirements of subsection (e)(1) of this section showing the effects
of the adjustments required by subsection (e)(3) of this section.
(2)
Annual reporting requirements. An ETP shall report
annually to the TUSF administrator that it is qualified to participate in
the THCUSP.
(3)
Other reporting requirements. An ETP shall report
any other information that is required by the commission or the TUSF administrator,
including any information necessary to assess contributions to and disbursements
from the TUSF.
(g)
Review of THCUSP after implementation of federal universal
service support. The commission shall initiate a project to review the THCUSP
within 90 days of the Federal Communications Commission's adoption of an order
implementing new or amended federal universal service support rules for rural,
insular, and high cost areas.
§26.404.Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan.
(a)
Purpose. This section establishes guidelines for financial
assistance to eligible telecommunications providers (ETPs) that provide service
in the study areas of small and rural ILECs in the state so that basic local
telecommunications service may be provided at reasonable rates in a competitively
neutral manner.
(b)
Definitions. The following words and terms when used in
this section shall have the following meaning unless the context clearly indicates
otherwise:
(1)
Eligible line - A residential line and a single-line business
line over which an ETP provides the service supported by the Small and Rural
ILEC Universal Service Plan through its own facilities, purchase of unbundled
network elements (UNEs), or a combination of its own facilities and purchase
of UNEs.
(2)
Eligible telecommunications provider (ETP) - A telecommunications
provider designated by the commission pursuant to §26.417 of this title
(relating to the Designation as Eligible Telecommunications Providers to Receive
Texas Universal Service Funds (TUSF)).
(3)
Small incumbent local exchange company (ILEC) - An
ILEC that qualifies as a "small local exchange company" as defined in the
Public Utility Regulatory Act (PURA), §53.304(a)(1).
(4)
Test year - The fiscal year ending in 1997.
(c)
Application.
(1)
Small or rural ILECs. This section applies to small ILECs
and rural ILECs, as defined in subsection (b) of this section and/or §26.5
of this title (relating to Definitions), that have been designated ETPs by
the commission pursuant to §26.417 of this title.
(2)
Other ETPs providing service in small or rural ILEC
study areas. This section applies to telecommunications providers other than
small or rural ILECs that provide service in small or rural ILEC study areas
that have been designated ETPs by the commission pursuant to §26.417
of this title.
(d)
Service to be supported by the Small and Rural ILEC Universal
Service Plan. The Small and Rural ILEC Universal Service Plan shall support
the provision by ETPs of basic local telecommunications service as defined
in §26.403(d) of this title (relating to the Texas High Cost Universal
Service Plan (THCUSP)).
(e)
Small and Rural ILEC Universal Service Plan monthly per-line
support. A monthly per-line amount of support for each small or rural ILEC
study area shall be determined in a one-time calculation using data from such
small or rural ILEC's test year that has been audited by an independent auditor
in conformance with generally accepted accounting principles (GAAP).
(1)
Calculation of the monthly per-line amount of support for
each small or rural ILEC. The toll pool amounts and access/toll revenue reductions
determined in accordance with subparagraphs (A) and (B) of this paragraph
shall be added together. To calculate the per-line amount of support, the
resulting sum will then be divided by the average number of eligible lines
served by such small or rural ILEC during the test year. To calculate the
monthly per-line amount of support, the result shall be divided by 12.
(A)
Toll pool amounts. The toll pool amount for a small or
rural ILEC shall be determined by subtracting the actual toll billed by the
small or rural ILEC during the test year from its toll pool revenue requirement
for the for the test year, as certified by the TUSF administrator.
(B)
Access/toll revenue reduction. At the time this section
is implemented, a small or rural ILEC may reduce carrier common line (CCL),
residual interconnection charge (RIC), and/or intraLATA toll rates. Upon commission
approval a small or rural ILEC may recover a reasonable amount of the difference
between the previous rates and the new rates, computed on the basis of minutes
of use in the test year. This amount is calculated by multiplying the difference
between the previous rates and the new rates by the test year minutes of use.
(2)
Freeze on support levels. The per-line amount
of support calculated in paragraph (1) of this subsection shall remain constant
as long as the small or rural ILEC is eligible to receive funds pursuant to
this section.
(3)
Switched Access Service Rate Reductions. To the extent
that the disbursements from the universal service fund under PURA §56.021(1)
for small and rural local exchange companies are used to decrease the implicit
support in intraLATA toll and switched access rates, the decrease shall be
made in a competitively neutral manner.
(f)
Small and Rural ILEC Universal Service Plan support payments
to ETPs. The TUSF administrator shall disburse monthly support payments to
ETPs qualified to receive support pursuant to this section.
(1)
Payments to small or rural ILEC ETPs. The payment to each
small or rural ILEC ETP shall be computed by multiplying the per-line amount
established in subsection (e) of this section by the number of eligible lines
served by the small or rural ILEC ETP for the month.
(2)
Payments to ETPs other than small or rural ILECs.
The payment to each ETP other than a small or rural ILEC shall be computed
by multiplying the per-line amount established in subsection (e) of this section
for a given small or rural ILEC study area by the number of eligible lines
served by the ETP in such study area for the month.
(g)
Reporting requirements. An ETP eligible to receive support
under this section shall report information as required by the commission
and the TUSF administrator.
(1)
Monthly reporting requirements. An ETP shall report the
total number of eligible lines served by the ETP in its study area to the
TUSF administrator on a monthly basis.
(2)
Annual reporting requirements. An ETP shall report
annually to the TUSF administrator that it is qualified to participate in
the Small and Rural ILEC Universal Service Plan.
(3)
Other reporting requirements. An ETP shall report
any other information required by the commission or the TUSF administrator,
including any information necessary to assess contributions and disbursements
to the TUSF.
(h)
Review of Small and Rural ILEC Universal Service Plan after
implementation of federal universal service support. Within 90 days of the
Federal Communications Commission's adoption of an order implementing new
or amended federal universal service support rules for rural, insular, and
high cost areas, the commission shall initiate a project to investigate a
mechanism by which ETPs receiving support pursuant to this section would transition
to receiving support pursuant to §26.403 of this title (relating to Texas
High Cost Universal Service Plan (THCUSP).
§26.410.Universal Service Fund Reimbursement for Certain IntraLATA Service.
(a)
Purpose. The purpose of this section is to implement the
provisions of the Public Utility Regulatory Act (PURA) §56.028.
(b)
Applicability. Under this section, an incumbent local exchange
company (ILEC) that is not an electing company under PURA Chapters 58 and
59 may request reimbursement through the Texas Universal Service Fund (TUSF)
when providing intraLATA interexchange high capacity (1.544 Mbps) service
at reduced rates for entities described in PURA §58.253(a).
(c)
Reimbursement. Reimbursement shall be retroactive to the
date on which a non-electing ILEC's tariff containing the reduced rate was
approved by the commission, or September 1, 1999, whichever is later. The
amount of reimbursement shall be the difference between the ILEC's tariffed
rate for that service, less any applicable discounts, and the lowest rate
for that service offered by any local exchange company electing incentive
regulation under PURA Chapter 58, multiplied by the number of eligible lines.
The non- electing ILEC's rate for purposes of reimbursement shall be the rate
effective on January 1, 1998. A non-electing ILEC without a tariffed rate
on January 1, 1998, shall use the rate most recently approved by the commission.
(d)
Reporting requirements.
(1)
An ILEC awarded support under this section shall provide
the TUSF administrator:
(A)
the number of lines eligible for support; and
(B)
the ILEC's tariffed rate, as of January 1, 1998, for the
service; and
(C)
the lowest rate offered for the service by any local exchange
company electing incentive regulation under PURA Chapter 58.
(2)
Upon request of the commission, the ILEC awarded
support under this section shall designate the basis on which it is establishing
rates.
§26.413.Tel-Assistance Service.
(a)
Application. This section applies to local exchange companies
(LECs) as defined by §26.5 of this title (relating to Definitions). In
addition, this section applies to telecommunications providers that receive
TUSF support in accordance with the TUSF rules, and any reference to or requirement
imposed on LECs in this section shall also apply to those telecommunications
providers.
(b)
Definition. The term "eligible consumer", when used in
this section, shall mean that in order to be eligible for Tel-Assistance Service,
the consumer must be a head of household and disabled, as determined by the
Texas Department of Human Services (TDHS), or be 65 years of age or older;
and have a household income at or below the poverty level, as reported annually
by the United States Office of Management and Budget in the
Federal Register
.
(c)
Provision of Tel-Assistance Service. Each LEC shall provide
Tel-Assistance Service as provided in this section. A consumer eligible for
Tel-Assistance Service also qualifies for Lifeline Service and Link Up Service
as provided in §26.412 of this title (relating to Lifeline Service and
Link Up Service Programs). Nothing in this section shall prohibit a person
otherwise eligible to receive Tel-Assistance Service from obtaining and using
telecommunications equipment or services designed to aid such person in utilizing
qualifying telecommunications services.
(1)
Rate reductions under Tel-Assistance Service.
(A)
Each LEC shall provide Tel-Assistance Service to all eligible
consumers within its certificated area in the form of a 65% reduction in the
applicable tariff rate for the qualifying services provided.
(B)
The reduction for local area calling usage shall be limited
to an amount such that, together with the reduction for local exchange access
service, the overall rate reduction does not exceed the comparable reduction
applicable to flat rate service.
(2)
Texas Universal Service Fund (TUSF) reimbursement.
LECs providing Tel- Assistance Service to eligible consumers under this section
are eligible for reimbursement from the TUSF of the lost revenue associated
with the application of a 65% reduction in the applicable tariff rate for
those accounts.
(d)
Obligations of the consumer, TDHS, and the LEC.
(1)
Consumer. Consumers may apply for Tel-Assistance Service
by obtaining an application form from TDHS. Persons who are eligible for Tel-Assistance
Service, but do not have telephone service at the time TDHS provides its eligibility
list to LECs, are responsible for initiating a request for qualifying services
from their serving LEC.
(2)
TDHS. TDHS shall review the consumer's application
form and shall determine if the consumer meets the eligibility criteria. TDHS
shall provide each LEC with an initial list of persons eligible for Tel-Assistance
Service and shall provide an updated list to each LEC on a semi-annual basis.
(3)
LEC.
(A)
The LEC shall provide Tel-Assistance Service to all eligible
consumers identified by TDHS within its certificated area if the existing
service of those consumers meets the qualifications set forth in subsection
(b) of this section. The LEC shall identify those consumers on the TDHS list
to whom it is providing telephone service and shall determine if the existing
telephone service qualifies. Within 60 days after receipt of the list, the
LEC shall begin reduced billing for those eligible consumers subscribing to
qualifying services.
(B)
If the existing telephone service does not qualify, the
LEC shall advise the eligible consumer by direct mail of changes necessary
to satisfy Tel- Assistance Service criteria. The LEC shall advise the eligible
consumer by direct mail that persons choosing not to make necessary changes
to their telephone service arrangements will not receive Tel-Assistance Service
and that the eligible consumer shall not be charged for changes in telephone
service arrangements that are made in order to qualify for Tel- Assistance
Service, or for service order charges associated with transferring the account
into Tel-Assistance Service. If the eligible consumer changes the existing
telephone service to qualifying services or initiates new qualifying service,
the LEC shall begin reduced billing at the time the change of service becomes
effective or at the time new service is established.
(C)
The LEC shall notify TDHS on a semi-annual basis of changes
in the status of its Tel-Assistance Service consumers.
(e)
Specific service exceptions for Tel-Assistance Service.
No other local voice service may be provided to the dwelling place of a Tel-Assistance
Service consumer, nor may single or party line optional extended area service,
optional extended area calling service, foreign zone service or foreign exchange
service be provided to a Tel-Assistance Service consumer.
(f)
Retroactive prohibition for Tel-Assistance Service. Tel-Assistance
Service shall not be available on a retroactive basis except for such instances
in which the LEC failed to initiate reduced billing within the time frame
established in subsection (d)(3)(A) of this section.
(g)
Termination of Tel-Assistance Service. Consumer certification
is provided by TDHS subject to annual renewal. Reduced billing will continue
until such time as either the TDHS notifies the LEC that the consumer is no
longer eligible or the consumer establishes telephone service arrangements
that do not satisfy the qualifications for Tel- Assistance Service. After
Tel-Assistance Service is established, if the recipient requests a change
in telephone service arrangements such that the new arrangements do not meet
the qualifications, before making such changes, the LEC shall advise the consumer
by direct mail that the requested changes will result in removal of the Tel-Assistance
Service discount. If the consumer then chooses to have such changes made,
the LEC shall terminate the discount at the time the change of service becomes
effective.
(h)
Reporting requirements for the provision of Tel-Assistance
Service. LECs shall file monthly reports with the TUSF administrator detailing
the lost revenues associated with the 65% discount applied to Tel-Assistance
Service accounts. The LECs shall also file activity reports showing the total
number of accounts transferred into and out of Tel- Assistance Service in
the previous month and the total number of Tel-Assistance Service accounts
at the end of the month.
(i)
Tariff requirement. Each LEC shall file a tariff to implement
Tel-Assistance Service in compliance with this section and with applicable
law within 30 days of beginning to provide service. No other revision, addition,
or deletion unrelated to Tel-Assistance Service shall be contained in the
tariff.
§26.414.Telecommunications Relay Service (TRS).
(a)
Purpose. The provisions of this section are intended to
establish a statewide telecommunications relay service for individuals who
are hearing-impaired or speech- impaired using specialized telecommunications
devices and operator translations. Telecommunications relay service shall
be provided on a statewide basis by one telecommunications carrier, except
that the commission may contract with another vendor for a special feature
in certain circumstances. Certain aspects of telecommunications relay service
operations are applicable to local exchange companies and other telecommunications
providers.
(b)
Provision of TRS. TRS shall provide individuals who are
hearing-impaired or speech- impaired with access to the telecommunications
network in Texas equal to that provided to other customers.
(1)
Components of TRS. TRS shall meet the mandatory minimum
standards defined in §26.5 of this title (relating to Definitions) and
further shall consist of the following:
(A)
switching and transmission of the call;
(B)
oral and print translations by either live or automated
means between individuals who are hearing-impaired or speech-impaired who
use specialized telecommunications devices and others who do not have such
devices;
(C)
sufficient operators and facilities to meet the grade and
quality of service standards established by the commission for TRS, including
the operator answering performance standards listed in §26.54(c)(2)(A)
and (D) of this title (relating to Service Objectives and Performance Benchmarks).
(D)
appropriate procedures for handling emergency calls;
(E)
confidentiality regarding existence and content of conversations;
(F)
capability of providing sufficient information to allow
calls to be accurately billed;
(G)
capability of providing for technologies such as hearing
carryover or voice carryover;
(H)
operator training to relay the contents of the call as
accurately as possible without intervening in the communications;
(I)
operator training in American Sign Language and familiarity
with the special communications needs of individuals who are hearing-impaired
or speech- impaired;
(J)
capability for callers to place calls through TRS from
locations other than their primary location and to utilize alternate billing
arrangements;
(K)
capability of providing both inbound and outbound intrastate
and interstate service;
(L)
capability for carrier of choice; and
(M)
other service enhancements approved by the commission.
(2)
Conditions for interstate service. The TRS carrier
shall not be reimbursed from the Texas Universal Service Fund (TUSF) for the
cost of providing interstate TRS. Interstate TRS shall be funded through the
interstate jurisdiction as mandated by the Federal Communications Commission.
Separate funds and records shall be maintained for intrastate TRS and interstate
TRS.
(3)
Rates and charges. The following rates and charges
shall apply to TRS:
(A)
Local calls. The calling and called parties shall bear
no charges for calls originating and terminating within the same toll-free
local calling scope.
(B)
Intrastate long distance calls. The TRS carrier shall discount
its tariffed intrastate rates by 50% for TRS users.
(C)
Access charges. Telecommunications providers shall not
impose access charges on calls that make use of this service and which originate
and terminate within the same toll-free local calling scope.
(D)
Billing and collection services. Upon request by the TRS
carrier, telecommunications providers shall provide billing and collection
services in support of this service at just and reasonable rates.
(c)
Contract for the TRS carrier.
(1)
Selection. On or before April 1, 2000, the commission shall
issue a request for proposal and select a carrier to provide statewide TRS
based on the following criteria: price, the interests of individuals who are
hearing-impaired and speech- impaired in having access to a high quality and
technologically-advanced telecommunications system, and all other factors
listed in the commission's request for proposals. The commission shall consider
each proposal in a manner that does not disclose the contents of the proposal
to competing offerers. The commission's determination shall include evaluations
of charges for the service, service enhancements proposed by the offerers,
and technological sophistication of the network proposed by the offerers.
The commission shall make a written award of the contract to the offerer whose
proposal is the most advantageous to the state.
(2)
Location. The operator centers used to provide statewide
TRS shall be located in Texas.
(3)
Contract administration.
(A)
Contract amendments. All recommendations for amendments
to the contract shall be filed with the executive director of the commission
on June 1 of each year. The executive director is authorized to approve or
deny all amendments to the contract between the TRS carrier and the commission,
provided, however, that the commission specifically shall approve any amendment
that will increase the cost of TRS.
(B)
Reports. The TRS carrier(s) and telecommunications providers
shall submit reports of their activities relating to the provision of TRS
upon request of the commission or the Relay Texas administrator.
(C)
Compensation. The TRS carrier(s) shall be compensated by
the TUSF for providing TRS at the rates, terms, and conditions established
in its contract with the commission, subject to the following conditions:
(i)
Reimbursement shall include the TRS costs that are not
paid by the calling or the called party, except the TRS carrier shall not
be reimbursed for the 50% discount set forth in subsection (b)(3)(B) of this
section.
(ii)
Reimbursement may include a return on the investment required
to provide the service and the cost of unbillable and uncollectible calls
placed through the service, provided that the cost of unbillable and uncollectible
calls shall be subject to a reasonable limitation as determined by the commission.
(iii)
The TRS carrier shall submit a monthly report to the
commission justifying its claims for reimbursement under the contract. Upon
approval by the commission, the TUSF shall make a disbursement in the approved
amount.
(d)
Special features for TRS.
(1)
The commission may contract for a special feature for the
state's telecommunications relay access service if the commission determines:
(A)
the feature will benefit the communication of persons with
an impairment of hearing or speech;
(B)
installation of the feature will be of benefit to the state;
and
(C)
the feature will make the relay access service available
to a greater number of users.
(2)
If the carrier selected to provide the telecommunications
relay access service is unable to provide the special feature at the best
value to the state, the commission may make a written award of a contract
for a carrier to provide the special feature to the telecommunications carrier
whose proposal is most advantageous to the state, considering;
(A)
factors stated in subsection (c)(1) of this section;
(B)
the past performance demonstrated capability and experience
of the carrier.
(3)
The commission shall consider each proposal in
a manner that does not disclose the contents of the proposal to a telecommunications
carrier making a competing proposal.
(4)
The commission's evaluation of a telecommunications
carrier's proposal shall include the considerations listed in subsection (c)(1)
of this section.
(e)
Advisory Committee. The commission shall appoint an Advisory
Committee, to be known as the Relay Texas Advisory Committee (RTAC) to assist
the commission in administering TRS and the specialized telecommunications
assistance program, as specified by the Public Utility Regulatory Act (PURA) §56.111.
The Relay Texas administrator shall serve as a liaison between the RTAC and
the commission. The Relay Texas administrator shall ensure that the RTAC receives
clerical and staff support, including a secretary or court reporter to document
RTAC meetings.
(1)
Composition. The commission shall appoint RTAC members
based on recommended lists of candidates submitted by the organizations named
as follows. The RTAC shall be composed of:
(A)
two persons with disabilities other than disabilities of
hearing and speech that impair the ability to effectively access the telephone
network;
(B)
one deaf person recommended by the Texas Deaf Caucus;
(C)
one deaf person recommended by the Texas Association of
the Deaf;
(D)
one hearing-impaired person recommended by Self-Help for
the Hard of Hearing;
(E)
one hearing-impaired person recommended by the American
Association of Retired Persons;
(F)
one deaf and blind person recommended by the Texas Deaf/Blind
Association;
(G)
one speech-impaired person and one speech-impaired and
hearing-impaired person recommended by the Coalition of Texans with Disabilities;
(H)
two representatives of telecommunications utilities, one
representing a local exchange company and one representing a telecommunications
carrier other than a local exchange company, chosen from a list of candidates
provided by the Texas Telephone Association;
(I)
two persons, at least one of whom is deaf, with experience
in providing relay services, recommended by the Texas Commission for the Deaf;
and
(J)
two public members recommended by organizations representing
consumers of telecommunications services.
(2)
Conditions of membership. The term of office
of each RTAC member shall be two years. A member whose term has expired shall
continue to serve until a qualified replacement is appointed. In the event
a member cannot complete his or her term, the commission shall appoint a qualified
replacement to serve the remainder of the term. RTAC members shall serve without
compensation but shall be entitled to reimbursement at rates established for
state employees for travel and per diem incurred in the performance of their
official duties, provided such reimbursement is authorized by the Texas Legislature
in the General Appropriations Act.
(3)
Responsibilities. The RTAC shall undertake the following
responsibilities:
(A)
monitor the establishment, administration, and promotion
of the statewide TRS;
(B)
advise the commission regarding the pursuit of services
that meet the needs of individuals who are hearing-impaired or speech-impaired
in communicating with other users of telecommunications services;
(C)
advise the commission regarding issues related to the contract
between the TRS carrier and the commission, including any proposed amendments
to such contract;
(D)
advise the commission and the Texas Commission for the
Deaf and Hard of Hearing, at the request of either commission, regarding issues
related to the specialized telecommunications assistance program, including
devices or services suitable to meet the needs of persons with disabilities
in communicating with other users of telecommunications services.
(4)
Committee activities report. After each RTAC
meeting, the Relay Texas administrator shall prepare a report to the commission
regarding the RTAC activities and recommendations.
(A)
The Relay Texas administrator shall file in Central Records
under Project Number 13928, and provide to each commissioner, a report containing:
(i)
the minutes of the meeting;
(ii)
a memo summarizing the meeting; and
(iii)
a list of items, recommended by the RTAC, for the Relay
Texas administrator to discuss with the TRS carrier, including issues related
to the provisioning of the service that do not require amendments to the contract.
(B)
Within 20 days after a report is filed, any commissioner
may request that one or more items described in the report be placed on an
agenda to be discussed during an open meeting of the commission. If no commissioner
requests that the list be placed on an agenda for an open meeting, the report
is deemed approved by the commission.
(5)
Evaluation of RTAC costs and effectiveness. The
commission shall evaluate the advisory committee annually. The evaluation
shall be conducted by an evaluation team appointed by the executive director
of the commission. The commission liaison, RTAC members, and other commission
employees who work directly or indirectly with the RTAC, TRS, or the equipment
distribution program shall not be eligible to serve on the evaluation team.
The evaluation team will report to the commission in open meeting each August
of its findings regarding:
(A)
the committee's work;
(B)
the committee's usefulness; and
(C)
the costs related to the committee's existence, including
the cost of agency staff time spent in support of the committee's activities.
§26.415.Specialized Telecommunications Assistance Program (STAP).
(a)
Purpose. The provisions of this section are intended to
establish procedures for a specialized telecommunications assistance program
and for reimbursement to vendors and service providers who submit vouchers
issued under the program.
(b)
Program responsibilities.
(1)
Texas Commission for the Deaf and Hard of Hearing (TCDHH)
responsibilities. TCDHH is responsible for:
(A)
Adopting rules and procedures regarding the issuance of
STAP vouchers to eligible individuals;
(B)
Establishing a database containing sufficient information
to enable the commission to verify the issuance of a particular STAP voucher;
and
(C)
Depositing amounts paid by eligible individuals for STAP
vouchers into the Texas Universal Service Fund (TUSF).
(2)
Commission responsibilities. The commission is
responsible for:
(A)
Adopting rules and procedures regarding the reimbursement
to vendors for properly redeemed STAP vouchers;
(B)
Administering the TUSF to ensure adequate funding of the
specialized telecommunications assistance program ; and
(C)
Appointing and providing administrative support for the
Relay Texas Advisory Committee (RTAC), in accordance with the Public Utility
Regulatory Act (PURA), §56.110 and §56.112.
(c)
Program administration.
(1)
Vendor and service provider registration. To facilitate
the timely reimbursement of STAP vouchers, the TUSF administrator may specify
that a vendor or service provider who accepts STAP vouchers shall register
with the administrator by providing their name, contact person, address, telephone
number, facsimile number (if available), and information sufficient to permit
the administrator to reimburse the vendor or service provider by direct deposit
rather than by check.
(2)
Vendor or service provider reimbursement. A vendor
or service provider who exchanges an STAP voucher for the purchase of approved
equipment or services in accordance with the terms of the specialized telecommunications
assistance program specified by TCDHH shall be eligible for reimbursement
of the lesser of the face value of the STAP voucher or the actual price of
the equipment or service.
(A)
TUSF disbursements shall be made only upon receipt from
the vendor or service provider of a completed STAP voucher and a receipt showing
the actual price of the equipment or service exchanged for the STAP voucher.
(B)
TUSF disbursements may also be subject to such other limitations
or conditions as determined by the commission to be just and reasonable, including
investigation of whether the presentation of an STAP voucher represents a
valid transaction for equipment or service under the STAP.
(C)
The TUSF administrator shall ensure that reimbursement
to vendors for STAP vouchers shall be issued within 45 days after the STAP
voucher is received by the TUSF administrator.
(D)
The commission may delay payment of a voucher to a distributor
of devices or a service provider if there is a dispute regarding the amount
or propriety of the payment or whether the device or service is appropriate
or adequate to meet the needs of the person to whom the Texas Commission for
the Deaf and Hard of Hearing issued the voucher until the dispute is resolved.
(E)
The commission may provide that payment of the voucher
is conditioned on the return of the payment if the device is returned to the
distributor or if the service is not used by the person to whom the voucher
was issued. The commission may provide an alternative dispute resolution process
for resolving a dispute regarding the equipment or service provided.
§26.417.Designation as Eligible Telecommunications Providers to Receive Texas Universal Service Funds (TUSF).
(a)
Purpose. This section provides the requirements for the
commission to designate telecommunications providers as eligible telecommunications
providers (ETPs) to receive funds from the Texas Universal Service Fund (TUSF)
under §26.403 of this title (relating to the Texas High Cost Universal
Service Plan (THCUSP)) and §26.404 of this title (relating to the Small
and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan).
Only telecommunications providers designated by the commission as ETPs shall
qualify to receive universal service support under these programs.
(b)
Requirements for establishing ETP service areas.
(1)
THCUSP service area. THCUSP service area shall be based
upon census block groups (CBGs) or other geographic area as determined appropriate
by the commission. A telecommunications provider may be designated an ETP
for any or all CBGs that are wholly or partially contained within its certificated
service area. An ETP must serve an entire CBG, or other geographic area as
determined appropriate by the commission, unless its certificated service
area does not encompass the entire CBG, or other geographic area as determined
appropriate by the commission.
(2)
Small and Rural ILEC Universal Service Plan service
area. A Small and Rural ILEC Universal Service Plan service area for an ETP
serving in a small or rural ILEC's territory shall include the entire study
area of such small or rural ILEC.
(c)
Criteria for designation of ETPs.
(1)
Telecommunications providers. A telecommunications provider,
as defined in §26.5 of this title (relating to Definitions), shall be
eligible to receive TUSF support pursuant to §26.403 or §26.404
of this title in each service area for which it seeks ETP designation if it
meets the following requirements:
(A)
the telecommunications provider has been designated an
eligible telecommunications carrier, pursuant to §26.418 of this title
(relating to the Designation of Common Carriers as Eligible Telecommunications
Carriers to Receive Federal Universal Service Funds), and provides the federally
designated services to customers in order to receive federal universal service
support;
(B)
the telecommunications provider defines its ETP service
area pursuant to subsection (c) of this section and assumes the obligation
to offer any customer in its ETP service area basic local telecommunications
services, as defined in §26.403 of this title, at a rate not to exceed
150% of the ILEC's tariffed rate;
(C)
the telecommunications provider offers basic local telecommunications
services using either its own facilities, purchased unbundled network elements
(UNEs), or a combination of its own facilities, purchased UNEs, and resale
of another carrier's services;
(D)
the telecommunications provider renders continuous and
adequate service within the area or areas, for which the commission has designated
it an ETP, in compliance with the quality of service standards defined in §26.52
of this title (relating to Emergency Operations), §26.53 of this title
(relating to Inspections and Tests), and §26.54 of this title (relating
to Service Objectives and Performance Benchmarks);
(E)
the telecommunications provider offers services in compliance
with §26.412 of this title (relating to Lifeline Service and Link Up
Service Programs) and §26.413 of this title (relating to Tel-Assistance
Service); and
(F)
the telecommunications provider advertises the availability
of, and charges for, supported services using media of general distribution.
(2)
ILECs. If the LEC is an ILEC, as defined in §26.5
of this title, it shall be eligible to receive TUSF support pursuant to §26.403
of this title in each service area for which it seeks ETP designation if it
meets the requirements of paragraph (1) of this subsection and the following
requirements:
(A)
If the ILEC is regulated pursuant to the Public Utility
Regulatory Act (PURA) Chapter 58 or 59 it shall either:
(i)
reduce rates for services determined appropriate by the
commission to an amount equal to its THCUSP support amount; or
(ii)
provide a statement that it agrees to a reduction of its
THCUSP support amount equal to its CCL, RIC and intraLATA toll revenues.
(B)
If the ILEC is not regulated pursuant to PURA Chapter 58
or 59 it shall reduce its rates for services determined appropriate by the
commission by an amount equal to its THCUSP support amount.
(C)
Any reductions in switched access service rates for ILECs
with more than 125,000 access lines in service in this state on December 31,
1998, that are made in accordance with this section shall be proportional,
based on equivalent minutes of use, to reductions in intraLATA toll rates,
and those reductions shall be offset by equal disbursements from the universal
service fund under PURA §56.021(1).
(d)
Designation of more than one ETP.
(1)
In areas not served by small or rural ILECs, as defined
in §26.404(b) of this title, the commission may designate, upon application,
more than one ETP in an ETP service area so long as each additional provider
meets the requirements of subsection (c) of this section.
(2)
In areas served by small or rural ILECs as defined
in §26.404(b) of this title, the commission may designate additional
ETPs if the commission finds that the designation is in the public interest.
(e)
Proceedings to designate telecommunications providers as
ETPs.
(1)
At any time, a telecommunications provider may seek commission
approval to be designated an ETP for a requested service area.
(2)
In order to receive support under §26.403 or §26.404
of this title for exchanges purchased from an unaffiliated provider, the acquiring
ETP shall file an application, within 30 days after the date of the purchase,
to amend its ETP service area to include those geographic areas in the purchased
exchanges that are eligible for support.
(3)
If an ETP receiving support under §26.403 or §26.404
of this title sells an exchange to an unaffiliated provider, it shall file
an application, within 30 days after the date of the sale, to amend its ETP
designation to exclude, from its designated service area, those exchanges
for which it was receiving support.
(f)
Requirements for application for ETP designation and commission
processing of application.
(1)
Requirements for notice and contents of application for
ETP designation.
(A)
Notice of application. Notice shall be published in the Texas Register
. The presiding officer may require
additional notice. Unless otherwise required by the presiding officer or by
law, the notice shall include at a minimum a description of the service area
for which the applicant seeks designation, the proposed effective date of
the designation, and the following language: "Persons who wish to comment
on this application should notify the Public Utility Commission by (specified
date, ten days before the proposed effective date). Requests for further information
should be mailed to the Public Utility Commission of Texas, P.O. Box 13326,
Austin, Texas 78711-3326, or you may call the Public Utility Commission's
Office of Customer Protection at (512) 936-7120 or (888) 782-8477. Hearing-
and speech-impaired individuals with text telephones (TTY) may contact the
commission at (512) 936-7136, or use Relay Texas (800) 735-2989 to reach the
commission's toll free number (888) 782-8477."
(B)
Contents of application. A telecommunications provider
seeking to be designated as an ETP for a high cost service area in this state
shall file with the commission an application complying with the requirements
of this section. In addition to copies required by other commission rules,
one copy of the application shall be delivered to the commission staff and
one copy shall be delivered to the Office of Public Utility Counsel.
(i)
Telecommunications providers. The application shall:
(I)
show that the applicant is a telecommunications provider
as defined in §26.5 of this title;
(II)
show that the applicant has been designated by the commission
as a telecommunications provider eligible for federal universal service support
and show that the applicant offers federally supported services to customers
pursuant to the terms of 47 United States Code §214(e) (relating to
Provision of Universal Service) in order to receive federal universal service
support;
(III)
specify the THCUSP or small and rural ILEC service area
in which the applicant proposes to be an ETP, show that the applicant offers
each of the designated services, as defined in §26.403 of this title,
throughout the THCUSP or small and rural ILEC service area for which it seeks
an ETP designation, and show that the applicant assumes the obligation to
offer the services, as defined in §26.403 of this title, to any customer
in the THCUSP or small and rural ILEC service area for which it seeks ETP
designation;
(IV)
show that the applicant does not offer the designated
services, as defined in §26.403 of this title, solely through total service
resale;
(V)
show that the applicant renders continuous and adequate
service within the area or areas, for which it seeks designation as an ETP,
in compliance with the quality of service standards defined in §§26.52,
26.53, and 26.54 of this title;
(VI)
show that the applicant offers Lifeline, Link Up, and
Tel- Assistance services in compliance with §26.412 and §26.413
of this title;
(VII)
show that the applicant advertises the availability of
and charges for designated services, as defined in §26.403 of this title,
using media of general distribution;
(VIII)
a statement detailing the method and content of the
notice the applicant has provided or intends to provide to the public regarding
the application and a brief statement explaining why the notice proposal is
reasonable and that the notice proposal complies with applicable law;
(IX)
provide a copy of the text of the notice;
(X)
state the proposed effective date of the designation; and
(XI)
provide any other information which the applicant wants
considered in connection with the commission's review of its application.
(ii)
ILECs. If the applicant is an ILEC, in addition to the
requirements of clause (i) of this subparagraph, the application shall show
compliance with the requirements of subsection (c)(2) of this section.
(2)
Commission processing of application.
(A)
Administrative review. An application considered under
this section may be reviewed administratively unless the telecommunications
provider requests the application be docketed or the presiding officer, for
good cause, determines at any point during the review that the application
should be docketed.
(i)
The effective date of the ETP designation shall be no earlier
than 30 days after the filing date of the application or 30 days after notice
is completed, whichever is later.
(ii)
The application shall be examined for sufficiency. If
the presiding officer concludes that material deficiencies exist in the application,
the applicant shall be notified within ten working days of the filing date
of the specific deficiency in its application. The earliest possible effective
date of the application shall be no less than 30 days after the filing of
a sufficient application with substantially complete information as required
by the presiding officer. Thereafter, any deadlines shall be determined from
the 30th day after the filing of the sufficient application and information
or from the effective date if the presiding officer extends that date.
(iii)
While the application is being administratively reviewed,
the commission staff and the staff of the Office of Public Utility Counsel
may submit requests for information to the applicant. Three copies of all
answers to such requests for information shall be provided to the commission
staff and the Office of Public Utility Counsel within ten days after receipt
of the request by the applicant.
(iv)
No later than 20 days after the filing date of the application
or the completion of notice, whichever is later, interested persons may provide
written comments or recommendations concerning the application to the commission
staff. The commission staff shall and the Office of Public Utility Counsel
may file with the presiding officer written comments or recommendations regarding
the application.
(v)
No later than 35 days after the proposed effective date
of the application, the presiding officer shall issue an order approving,
denying, or docketing the application.
(B)
Approval or denial of application. The application shall
be approved by the presiding officer if it meets the following requirements.
(i)
The provision of service constitutes basic local telecommunications
service as defined in §26.403 of this title.
(ii)
Notice was provided as required by this section.
(iii)
The applicant has met the requirements contained in subsection
(c) of this section.
(iv)
The ETP designation is consistent with the public interest
in a technologically advanced telecommunications system and consistent with
the preservation of universal service.
(C)
Docketing. If, based on the administrative review, the
presiding officer determines that one or more of the requirements have not
been met, the presiding officer shall docket the application. The requirements
of subsection (c) of this section may not be waived.
(D)
Review of the application after docketing. If the application
is docketed, the effective date of the application shall be automatically
suspended to a date 120 days after the applicant has filed all of its direct
testimony and exhibits, or 155 days after the proposed effective date, whichever
is later. Three copies of all answers to requests for information shall be
filed with the commission within ten days after receipt of the request. Affected
persons may move to intervene in the docket, and a hearing on the merits shall
be scheduled. A hearing on the merits shall be limited to issues of eligibility.
The application shall be processed in accordance with the commission's rules
applicable to docketed cases.
(g)
Relinquishment of ETP designation. A telecommunications
provider may seek to relinquish its ETP designation.
(1)
Area served by more than one ETP. The commission shall
permit a telecommunications provider to relinquish its ETP designation in
any area served by more than one ETP upon:
(A)
written notification not less than 90 days prior to the
proposed effective date of the relinquishment;
(B)
determination by the commission that the remaining ETP
or ETPs can provide basic local service to the relinquishing telecommunications
provider's customers; and
(C)
determination by the commission that sufficient notice
of relinquishment has been provided to permit the purchase or construction
of adequate facilities by any remaining ETP or ETPs.
(2)
Area where the relinquishing telecommunications
provider is the sole ETP. In areas where the relinquishing telecommunications
provider is the only ETP, the commission may permit it to relinquish its ETP
designation upon:
(A)
written notification that the telecommunications provider
seeks to relinquish its ETP designation; and
(B)
commission designation of a new ETP for the service area
or areas through the auction procedure provided in subsection (h) of this
section.
(3)
Relinquishment for non-compliance. The TUSF administrator
shall notify the commission when the TUSF administrator is aware that an ETP
is not in compliance with the requirements of subsection (c) of this section.
(A)
The commission shall revoke the ETP designation of any
telecommunications provider determined not to be in compliance with subsection
(c) of this section.
(B)
The commission may revoke a portion of the ETP designation
of any telecommunications provider determined not to be in compliance with
the quality of service standards defined in §26.52 of this title (relating
to Emergency Operations), §26.53 of this title (relating to Inspections
and Tests), and §26.54 of this title (relating to Service Objectives
and Performance Benchmarks) in that portion of its ETP service area.
(h)
Auction procedure for replacing the sole ETP in an area.
In areas where a telecommunications provider is the sole ETP and seeks to
relinquish its ETP designation, the commission shall initiate an auction procedure
to designate another ETP. The auction procedure will use a competitive, sealed
bid, single-round process to select a telecommunications provider meeting
the requirements of subsection (f)(1) of this section that will provide basic
local telecommunications service at the lowest cost.
(1)
Announcement of auction. Within 30 days of receiving a
request from the last ETP in a service area to relinquish its designation,
the commission shall provide notice in the
Texas
Register
of the auction. The announcement shall at minimum detail the
geographic location of the service area, the total number of access lines
served, the forward-looking economic cost computed pursuant to §26.403
of this title, of providing basic local telecommunications service and the
other services included in the benchmark calculation, existing tariffed rates,
bidding deadlines, and bidding procedure.
(2)
Bidding procedure. Bids must be received by the TUSF
administrator not later than 60 days from the date of publication in the Texas Register
.
(A)
Every bid must contain:
(i)
the level of assistance per line that the bidder would
need to provide all services supported by universal service mechanisms;
(ii)
information to substantiate that the bidder meets the
eligibility requirements in subsection (c)(1) of this section; and
(iii)
information to substantiate that the bidder has the ability
to serve the relinquishing ETP's customers.
(B)
The TUSF administrator shall collect all bids and within
30 days of the close of the bidding period request that the commission approve
the TUSF administrator's selection of the successful bidder.
(C)
The commission may designate the lowest qualified bidder
as the ETP for the affected service area or areas.
§26.418.Designation of Common Carriers as Eligible Telecommunications Carriers to Receive Federal Universal Service Funds.
(a)
Purpose. This section provides the requirements for the
commission to designate common carriers as eligible telecommunications carriers
(ETCs) to receive support from the federal universal service fund (FUSF).
Only common carriers designated by the commission pursuant to 47 United States
Code §214(e) (relating to Provision of Universal Service) as eligible
for federal universal service support may qualify to receive universal service
support under the FUSF.
(b)
Service areas. The commission may designate eligible telecommunications
carrier service areas according to the following criteria.
(1)
Non-rural service area. To be eligible to receive federal
universal service support in non-rural areas, a carrier must provide federally
supported services pursuant to 47 Code of Federal Regulations §54.101
(relating to Supported Services for Rural, Insular, and High Cost Areas) throughout
the area for which the carrier seeks to be designated an eligible telecommunications
carrier.
(2)
Rural service area. In the case of areas served by
a rural telephone company, as defined in §26.404 of this title (relating
to the Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service
Plan), a carrier must provide federally supported services pursuant to 47
Code of Federal Regulations §54.101 throughout the study area of the
rural telephone company in order to be eligible to receive federal universal
service support.
(c)
Criteria for determination of eligible telecommunications
carriers. A common carrier shall be designated as eligible to receive federal
universal service support if it:
(1)
offers the services that are supported by the federal universal
service support mechanisms under 47 Code of Federal Regulations §54.101
either using its own facilities or a combination of its own facilities and
resale of another carrier's services; and
(2)
advertises the availability of and charges for such
services using media of general distribution.
(d)
Criteria for determination of receipt of federal universal
service support. In order to receive federal universal service support, a
common carrier must:
(1)
meet the requirements of subsection (c) of this section;
(2)
offer Lifeline Service to qualifying low-income consumers
in compliance with 47 Code of Federal Regulations Part 54, Subpart E (relating
to Universal Service Support for Low-Income Consumers); and
(3)
offer toll limitation services in accordance with
47 Code of Federal Regulations §54.400 (relating to Terms and Definitions)
and §54.401 (relating to Lifeline Defined).
(e)
Designation of more than one eligible telecommunications
carrier.
(1)
Non-rural service areas. In areas not served by rural telephone
companies, as defined in §26.404 of this title, the commission shall
designate, upon application, more than one eligible telecommunications carrier
in a service area so long as each additional carrier meets the requirements
of subsection (b)(1) of this section and subsection (c) of this section.
(2)
Rural service areas. In areas served by rural telephone
companies, as defined in §26.404 of this title, the commission may designate
as an eligible telecommunications carrier a carrier that meets the requirements
of subsection (b)(2) of this section and subsection (c) of this section if
the commission finds that the designation is in the public interest.
(f)
Proceedings to designate eligible telecommunications carriers.
(1)
At any time, a common carrier may seek commission approval
to be designated an ETC for a requested service area.
(2)
In order to receive support under this section for
exchanges purchased from an unaffiliated carrier, the acquiring eligible telecommunications
carrier shall file an application, within 30 days after the date of the purchase,
to amend its eligible telecommunications carrier service area to include those
geographic areas that are eligible for support.
(3)
If an eligible telecommunications carrier receiving
support under this section sells an exchange to an unaffiliated carrier, it
shall file an application, within 30 days after the date of the sale, to amend
its eligible telecommunications carrier designation to exclude from its designated
service area those exchanges for which it was receiving support.
(g)
Application requirements and commission processing of applications.
(1)
Requirements for notice and contents of application.
(A)
Notice of application. Notice shall be published in the Texas Register
. The presiding officer may require
additional notice. Unless otherwise required by the presiding officer or by
law, the notice shall include at a minimum a description of the service area
for which the applicant seeks eligibility, the proposed effective date of
the designation, and the following statement: "Persons who wish to comment
on this application should notify the Public Utility Commission of Texas by
(specified date, ten days before the proposed effective date). Requests for
further information should be mailed to the Public Utility Commission of Texas,
P.O. Box 13326, Austin, Texas 78711-3326, or you may call the Public Utility
Commission's Office of Customer Protection at (512) 936- 7120 or (888) 782-8477.
Hearing- and speech-impaired individuals with text telephones (TTY) may contact
the commission at (512) 936-7136, or use Relay Texas (800) 735-2989 to reach
the commission's toll free number (888) 782-8477."
(B)
Contents of application for each common carrier seeking
eligible telecommunications carrier designation. A common carrier that seeks
to be designated as an eligible telecommunications carrier shall file with
the commission an application complying with the requirements of this section.
In addition to copies required by other commission rules, one copy of the
application shall be delivered to the commission's Regulatory Division and
one copy shall be delivered to the Office of Public Utility Counsel. The application
shall:
(i)
show that the applicant offers each of the services that
are supported by the FUSF support mechanisms under 47 United States Code §254(c)
(relating to Universal Service) either using its own facilities or a combination
of its own facilities and resale of another carrier's services throughout
the service area for which it seeks designation as an eligible telecommunications
carrier;
(ii)
show that the applicant assumes the obligation to offer
each of the services that are supported by the FUSF support mechanisms under
47 United States Code §254(c) to any consumer in the service area for
which it seeks designation as an eligible telecommunications carrier;
(iii)
show that the applicant advertises the availability of,
and charges for, such services using media of general distribution;
(iv)
show the service area in which the applicant seeks designation
as an eligible telecommunications carrier;
(v)
contain a statement detailing the method and content of
the notice the applicant has provided or intends to provide to the public
regarding the application and a brief statement explaining why the proposed
notice is reasonable and in compliance with applicable law;
(vi)
contain a copy of the text of the notice;
(vii)
contain the proposed effective date of the designation;
and
(viii)
contain any other information which the applicant wants
considered in connection with the commission's review of its application.
(C)
Contents of application for each common carrier seeking
eligible telecommunications carrier designation and receipt of federal universal
service support. A common carrier that seeks to be designated as an eligible
telecommunications carrier and receive federal universal service support shall
file with the commission an application complying with the requirements of
this section. In addition to copies required by other commission rules, one
copy of the application shall be delivered to the commission staff and one
copy shall be delivered to the Office of Public Utility Counsel. The application
shall:
(i)
comply with the requirements of subparagraph (B) of this
paragraph;
(ii)
show that the applicant offers Lifeline Service to qualifying
low- income consumers in compliance with 47 Code of Federal Regulations Part
54, Subpart E; and
(iii)
show that the applicant offers toll limitation services
in accordance with 47 Code of Federal Regulations §54.400 and §54.401.
(2)
Commission processing of application.
(A)
Administrative review. An application considered under
this section may be reviewed administratively unless the presiding officer,
for good cause, determines at any point during the review that the application
should be docketed.
(i)
The effective date shall be no earlier than 30 days after
the filing date of the application or 30 days after notice is completed, whichever
is later.
(ii)
The application shall be examined for sufficiency. If
the presiding officer concludes that material deficiencies exist in the application,
the applicant shall be notified within ten working days of the filing date
of the specific deficiency in its application. The earliest possible effective
date of the application shall be no less than 30 days after the filing of
a sufficient application with substantially complete information as required
by the presiding officer. Thereafter, any deadlines shall be determined from
the 30th day after the filing of the sufficient application and information
or from the effective date if the presiding officer extends that date.
(iii)
While the application is being administratively reviewed,
the commission staff and the staff of the Office of Public Utility Counsel
may submit requests for information to the telecommunications carrier. Three
copies of all answers to such requests for information shall be provided to
the commission staff and the Office of Public Utility Counsel within ten days
after receipt of the request by the telecommunications carrier.
(iv)
No later than 20 days after the filing date of the application
or the completion of notice, whichever is later, interested persons may provide
the commission staff with written comments or recommendations concerning the
application. The commission staff shall and the Office of Public Utility Counsel
may file with the presiding officer written comments or recommendations regarding
the application.
(v)
No later than 35 days after the proposed effective date
of the application, the presiding officer shall issue an order approving,
denying, or docketing the application.
(B)
Approval or denial of application.
(i)
An application filed pursuant to paragraph (1)(B) of this
subsection shall be approved by the presiding officer if the application meets
the following requirements:
(I)
the provision of service constitutes the services that
are supported by the FUSF support mechanisms under 47 United States Code §254(c);
(II)
the applicant will provide service using either its own
facilities or a combination of its own facilities and resale of another carrier's
services;
(III)
the applicant advertises the availability of, and charges
for, such services using media of general distribution;
(IV)
notice was provided as required by this section;
(V)
the applicant satisfies the requirements contained in subsection
(b) of this section; and
(VI)
if, in areas served by a rural telephone company, the
eligible telecommunications carrier designation is consistent with the public
interest.
(ii)
An application filed pursuant to paragraph (1)(C) of this
subsection shall be approved by the presiding officer if the application meets
the following requirements:
(I)
the applicant has satisfied the requirements set forth
in clause (i) of this subparagraph;
(II)
the applicant offers Lifeline Service to qualifying low-income
consumers in compliance with 47 Code of Federal Regulations Part 54, Subpart
E; and
(III)
the applicant offers toll limitation services in accordance
with 47 Code of Federal Regulations §54.400 and §54.401.
(C)
Docketing. If, based on the administrative review, the
presiding officer determines that one or more of the requirements have not
been met, the presiding officer shall docket the application.
(D)
Review of the application after docketing. If the application
is docketed, the effective date of the application shall be automatically
suspended to a date 120 days after the applicant has filed all of its direct
testimony and exhibits, or 155 days after the proposed effective date, whichever
is later. Three copies of all answers to requests for information shall be
filed with the commission within ten days after receipt of the request. Affected
persons may move to intervene in the docket, and a hearing on the merits shall
be scheduled. A hearing on the merits shall be limited to issues of eligibility.
The application shall be processed in accordance with the commission's rules
applicable to docketed cases.
(E)
Waiver. In the event that an otherwise eligible telecommunications
carrier requests additional time to complete the network upgrades needed to
provide single-party service, access to enhanced 911 service, or toll limitation,
the commission may grant a waiver of these service requirements upon a finding
that exceptional circumstances prevent the carrier from providing single-party
service, access to enhanced 911 service, or toll limitation. The period for
the waiver shall not extend beyond the time that the commission deems necessary
for that carrier to complete network upgrades to provide single-party service,
access to enhanced 911 service, or toll limitation services.
(h)
Designation of eligible telecommunications carrier for
unserved areas. If no common carrier will provide the services that are supported
by federal universal service support mechanisms under 47 United States Code §254(c)
to an unserved community or any portion thereof that requests such service,
the commission, with respect to intrastate services, shall determine which
common carrier or carriers are best able to provide such service to the requesting
unserved community or portion thereof and shall order such carrier or carriers
to provide such service for that unserved community or portion thereof.
(i)
Relinquishment of eligible telecommunications carrier designation.
A common carrier may seek to relinquish its eligible telecommunications carrier
designation.
(1)
Area served by more than one eligible telecommunications
carrier. The commission shall permit a common carrier to relinquish its designation
as an eligible telecommunications carrier in any area served by more than
one eligible telecommunications carrier upon:
(A)
written notification not less than 90 days prior to the
proposed effective date that the common carrier seeks to relinquish its designation
as an eligible telecommunications carrier;
(B)
determination by the commission that the remaining eligible
telecommunications carrier or carriers can offer federally supported services
to the relinquishing carrier's customers; and
(C)
determination by the commission that sufficient notice
of relinquishment has been provided to permit the purchase or construction
of adequate facilities by any remaining eligible telecommunications carrier
or carriers.
(2)
Area where the common carrier is the sole eligible
telecommunications carrier. In areas where the common carrier is the only
eligible telecommunications carrier, the commission may permit it to relinquish
its eligible telecommunications carrier designation upon:
(A)
written notification not less than 90 days prior to the
proposed effective date that the common carrier seeks to relinquish its designation
as an eligible telecommunications carrier; and
(B)
commission designation of a new eligible telecommunications
carrier for the service area or areas.
This agency hereby certifies that the adoption
has been reviewed by legal counsel and found to be a valid exercise of the
agency's legal authority.
Filed with the Office of
the Secretary of State on May 4, 2000.
TRD-200003142
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Effective date: May 24, 2000
Proposal publication date: November 26, 1999
For further information, please call: (512) 936-7308