Part 2. PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 26. SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Subchapter P. TEXAS UNIVERSAL SERVICE FUND
The Public Utility Commission of Texas (commission) proposes an amendment to §26.403, relating to the Texas High Cost Universal Service Plan (THCUSP). This amendment is proposed in order to accommodate changes that have occurred in the telecommunications industry of potential impact to the THCUSP.
The section establishes the guidelines for determining financial assistance to eligible telecommunications providers that service the high cost rural areas of the state, other than the study areas of small and rural incumbent local exchange companies so that basic local telecommunications service may be provided at reasonable rates in a competitively neutral manner. Further, the section sets forth the criteria for determining the amount of the support and which eligible lines shall receive support.
The proposed amendment would revise certain provisions of subsections (d) and (e) of this section. Subsections (d) and (e) would be revised to delete the existing rule language as to the specific eligible lines to be supported. Under the amendment, after notice and opportunity for hearing, the commission would determine which eligible lines should receive support under this section. Subsection (e) would be further modified to remove the existing rule language regarding the determination of the benchmark used to calculate the support amounts and to require the commission, after notice and opportunity for hearing, to establish an appropriate benchmark or benchmarks to be used in calculating the support amounts. In addition, two conforming revisions are reflected in subsection (e)(3)(C)(ii).
Considerable change has occurred in the telecommunications industry and in state law and policy regarding the telecommunications industry since the original adoption of this section in January 1998 and the implementation of this section in 2000. This section needs to be modified to allow the commission to determine the appropriate eligible lines to be supported and the benchmark or benchmarks to be used to calculate the support based upon current information and conditions in the telecommunications industry, law, and policy. The actual determination of which eligible lines will be supported and what benchmark(s) will be used to calculate support going forward would be made after notice and opportunity for hearing.
Project Number 34060 is assigned to this proceeding.
Marshall Adair, Director, Communications Industry Oversight Division and Gary Mann, Attorney, Legal Division, have determined that for each year of the first five-year period the proposed amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amended section
Mr. Adair and Mr. Mann have determined that for each year of the first five years the proposed amendment is in effect the public benefit anticipated as a result of enforcing the amended section will be that the commission will be able to determine the appropriate support to be made available in the high cost rural areas of the state affected by this section.
There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing the amended section. There is no anticipated economic cost to persons who are required to comply with the amendment as proposed.
Mr. Adair and Mr. Mann have also determined that for each year of the first five years the proposed amendment is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Monday, June 4, 2007, at 10:00 a.m. The request for a public hearing must be received within 32 days after publication.
Comments on the proposed amendment may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 20 days after publication. Sixteen copies of comments to the proposed amendment are required to be filed pursuant to §22.71(c) of this title. Reply comments may be submitted within 32 days after publication. Comments should be organized in a manner consistent with the organization of the proposed rule. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed amendment. The commission will consider the costs and benefits in deciding whether to adopt the amended section. All comments should refer to Project Number 34060.
This amendment is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement 2006) (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 specifically, PURA §56.021 which requires the commission to adopt and enforce rules to establish a universal service fund to assist local exchange companies in providing basic local telecommunications services at reasonable rates in high cost rural areas of the state.
Cross Reference to Statutes: Public Utility Regulatory Act §14.002 and §56.021.
§26.403.Texas High Cost Universal Service Plan (THCUSP).
(a) - (c) (No change.)
(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) - (2) (No change.)
(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 and 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) (No change.)
(B) Determination of the benchmark.
After notice and opportunity
for hearing, the commission shall establish an appropriate benchmark or benchmarks
[
The commission shall establish two benchmarks for the state,
one for residential service and one for single-linebusiness service. The benchmarks
for both residential and single-line businesses will be calculated using the
statewide average revenue per line as described in clauses (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 available under the THCUSP.
(i) After notice and opportunity for hearing, the commission shall determine which eligible lines shall receive support.
(ii)
[
(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) (No change.)
(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) - (B) (No change.)
(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) (No change.)
(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) - (g) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on April 12, 2007.
TRD-200701392
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: May 27, 2007
For further information, please call: (512) 936-7223