All major parties to the Texas Public Utility Commission’s review...
All major parties to the Texas Public Utility Commission’s review of the state’s universal service programs agreed to a settlement proposal for the high-cost fund that would reduce fund 36.5 percent -- $144 million annually -- in steps over…
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three years. The proposal (Case 34723) would reduce the universal service surcharge on landline and wireless phone bills to 3.4 percent from 4.4. Signers included AT&T, Verizon, the PUC staff, Office of Public Utility Counsel, the USF Reform Coalition of cable and wireless telecom providers, Embarq, Windstream and rural landline competitive carriers. The PUC, complying with a legislative mandate, opened a comprehensive review of the fund in the fall. The PUC staff had recommended cutting the $395 million high-cost fund 60 percent to $165 million -- but competitive carriers supported deeper cuts and incumbents called for roughly doubling the fund. The PUC urged negotiations. Other provisions of the agreement would end universal service subsidies in deregulated exchanges with population higher than 30,000. Subsidies in deregulated exchanges with fewer than 30,000 people could continue if market rates exceeded “reasonable” levels specified. Large incumbents would be allowed rate increases to offset the reduction in universal service subsidies. The pact also would increase the Lifeline discount. The signing parties agreed to not seek any changes to high-cost or Lifeline programs from the PUC or state legislature before 2012.