COM/CRC/hl2 Date of Issuance 11/19/2007
Decision 07-11-039 November 16, 2007
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking into the Review of the California High Cost Fund B Program. |
Rulemaking 06-06-028 (Filed June 29, 2006) |
ORDER CORRECTING ERRORS IN
DECISION 07-09-020
This order corrects certain non-substantive errors in Decision (D.) 07-09-020 regarding the reform of the California High Cost Fund-B (CHCF-B or B-Fund) program. These corrections are nonsubstantive in nature.
Summary of Corrections
Procedure for Implementing CHCF-B Surcharge Reduction
The description of the procedure to implement adopted B-Fund surcharge reduction as set forth in D.07-09-020 is hereby corrected. D.07-09-020 described the advice letter for implementing the reduction as requiring a Commission resolution for approval. No Commission resolution is necessary, however, for Tier 1 advice letters, such as the one to implement the B-Fund surcharge reduction authorized in D.07-09-020. Also, the correct procedure requires that only AT&T file an advice letter to implement the surcharge reduction. Other telephone corporations are not required to file an advice letter, but merely to adjust the surcharge appearing on their customer's bills to conform to the 0.5% level effective January 1, 2008.
To make the necessary corrections to D.07-09-020, the relevant portion of page 52 of the decision is amended as follows:
"We direct AT&T to file a Tier 1 advice letter on or before December 3, 2007, modifying the surcharge from 1.3% to 0.5% effective January 1, 2008, and thereafter until further revised by the Commission. Furthermore, all telephone corporations subject to the B-Fund surcharge are directed to assess the revised CHCF-B surcharge of 0.5% on their end-users' bills rendered for intrastate telecommunications services on January 1, 2008 and thereafter, until further revised by the Commission."
The footnote 79 is also modified to read as follows:
"Since the AT&T advice letter implementing the 0.5% surcharge reduction will merely be a ministerial act, the advice letter shall be categorized as Tier 1."
A corresponding correction is made to Ordering Paragraph 5 of D.07-09-020.
Correction of Ordering Paragraph 6
Ordering Paragraph 6 is revised to add explicit authorization for AT&T and Verizon to increase their basic residential rate by up to 2.36% on January 1, 2008.
Correction of Ordering Paragraph 7 and 13(b)
Ordering Paragraph 7 and 13(b) of D.07-09-020 are corrected to describe the phase-in of increases in the basic rate caps in a manner consistent with the discussion within the decision's text. Thus, instead of stating that the phase-in will increase the basic rate cap up to the adopted $36 high-cost benchmark, the language is corrected to state that the cap will increase to a level to be determined as necessary to avoid sudden large rate increases and for an orderly transition to full pricing flexibility.
The corrected Ordering Paragraph 7, with revised text underlined, thus reads:
7. On those dates, respectively, the basic rate freeze shall be lifted on all remaining basic residential lines, but subsequent increases in ILEC basic rates shall be phased in under a process to be determined in Phase II of this proceeding in order to bring basic rate caps up to the level as necessary for a transition to full pricing flexibility to avoid sudden large increases in basic service rates.
The corrected Order Paragraph 13(b), with revised text underlined, thus reads:
13. The Commission shall undertake a second phase of this proceeding to resolve the remaining issues in this proceeding. Specifically, the second phase of the proceeding shall address the following issues:
. . .
(b) Implement a process for the phase-in of increases in the caps on COLR basic rates to transition from the current levels up to a level to be determined as necessary for a gradual transition to full pricing flexibility and to avoid sudden large rate increases in basic service.
Waiver of Comment Period
This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Section 311(g)(2) of the Public Utilities Code, the otherwise applicable 30-day period for public review and comment is being waived.
Assignment of Proceeding
Rachelle B. Chong is the assigned Commissioner and Thomas R. Pulsifer is the assigned ALJ in this proceeding.
IT IS ORDERED that:
1. Decision (D.) 07-09-020 is amended to incorporate the correction of nonsubstantive errors, as described in the text above.
2. The revised corrections, as incorporated in the attached amended pages, supersede the original pages appearing in D.07-09-020.
This order is effective today.
Dated November 16, 2007, at San Francisco, California.
D.07-09-020 - Page 52 (Revised)
payment subsequent to this order, we direct that any new claims for B-Fund support clearly identify the specific CBGs, and associated proxy costs, that have been eliminated and that are no longer eligible for B-Fund support due to revisions in the threshold benchmark. COLRs shall provide this documentation separately for each successive change in the benchmark level, as set forth in the Appendix Table 1 schedule of this order.
We also shall authorize a B-Fund surcharge of 0.5%, which represents a reduction from the current 1.3% surcharge. We believe that this reduction is appropriate given the diminishing levels of claims we anticipate going forward as a result of the revised threshold we are adopting. We direct AT&T to file a Tier 1 advice letter to implement the revised 0.5% surcharge, to become effective by January 1, 2008.79 Furthermore, all telephone corporations subject to the CHCF-B surcharge shall assess the revised 0.5% CHCF-B surcharge beginning January 1, 2008.
79 Since the AT&T Advice Letter implementing the 0.5% surcharge will merely be a ministerial act, the Advice Letter shall be categorized as Tier I.
