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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Telecommunications Division

RESOLUTION T-16237

Public Program Branch

Date: November 19, 1998


R E S O L U T I O N

RESOLUTION T-16237. ROSEVILLE TELPHONE COMPANY

(U-1015-C). REQUEST TO IMPLEMENT A PERMANENT CALIFORNIA HIGH COST FUND-B SURCREDIT IN COMPLIANCE WITH DECISION 98-09-039.

BY ADVICE LETTER NO. 425 FILED ON SEPTEMBER 21, 1998 AND SUPPLEMENTAL ADVICE LETTER 425 - A FILED ON NOVEMBER 5, 1998

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SUMMARY

On September 21, 1998, Roseville Telephone Company (Roseville) filed an Advice Letter and a supplemental Advice Letter in compliance with Ordering Paragraphs (O. P.) 1 and 28, respectively, of Decision (D.) 98-09-039 to implement a permanent surcredit beginning on December 1, 1998 relating to the California High Cost Fund-B (CHCF-B). This resolution approves on a provisional basis the permanent CHCF-B surcredit of 0.8271% pending the review of CHCF-B claims submitted by Roseville to the CHCF-B Administrative Committee (AC). The company's surcredit reduces all rates, except for residential basic service, contracts, and coin-sent paid calls.

BACKGROUND

D.96-10-066

In D.96-10-066, the Commission established the CHCF-B to subsidize basic exchange service provided by five telecommunications carriers, including Roseville, in designated high cost areas in California. The subsidy from the CHCF-B substitutes for the internal subsidies that utilities received from other services as well as rates and charges for basic services offered in low cost areas. CHCF- B is funded through a surcharge on end-users of telecommunications services. The CHCF-B surcharge has been in place since February 1, 1997.

D.96-10-066 provided the following requirement for the large and mid-size local exchange carriers including Roseville which serve designated high cost areas to reduce their rates by an amount equal to their subsidies drawn from the CHCF-B:

D. 98-09-039

In D. 98-09-039 the Commission partially implemented the CHCF-B and adopted the following ordering paragraphs which are applicable to this advice letter filing:

Roseville Advice Letter

1. Roseville filed Advice Letter 425 on September 21, 1998 in compliance with O. P. 1 of D. 98-09-039 to implement a permanent surcredit of 0.8271% beginning on December 1, 1998. This surcredit is based on a monthly rate reduction of approximately $32,121 which Roseville asserts is equal to the monthly average of the CHCF-B claims dated September 15, 1998 as filed by Roseville for the period of August 1997 through July 1998. Roseville also filed a supplemental Advice Letter on November 5, 1998 in compliance with the O.P. 28 of D.98-09-039.

NOTICE/PROTESTS

Roseville states that a copy of the Advice Letter and the supplemental Advice Letter related tariff sheets were mailed to Pacific Bell, GTE California, AT&T, and California Telephone Association. Notice of Advice Letter No. 425 was published in the Commission Daily Calendar of September 25, 1998. To date, no protest to this Advice Letter has been received.

DISCUSSION

The AC has not formally approved any of the CHCF-B claims filed by Roseville. Therefore, the Telecommunications Division recommends that the Commission require the implementation of the surcredit filed in Advice Letter 425 to be on a provisional basis subject to revision, if necessary, by the Commission utilizing the process as set forth in Ordering Paragraph 3 of D.98-09-039. The Telecommunications Division further recommends that the provisional status be effective until the Commission acts through subsequent resolution action to establish the permanent surcredit. We will adopt the Telecommunications Division recommendation to require the implementation of the surcredit filed in Advice Letter 425 to be on a provisional basis subject to further revision by further Commission action.

Tariff Sheets

The tariff sheets filed by Advice Letter 425 provide for the surcredit to be on a permanent basis. Providing for the surcredit to be on a provisional basis as adopted in this resolution will require Roseville to amend the tariff sheets filed by Advice Letter 425 to specify that the surcredit is provisional and subject to revision by further action of the commission. We will therefore require Roseville to so amend the tariff sheets filed by Advice Letter 425 through the filing of a supplemental to Advice Letter 425.

FINDINGS

1. Roseville has timely filed its claims for California High Cost Fund-B funds for the period of August 1997 through July 1998

2. The surcredit of 0.8271% as filed by Roseville is based on the monthly average of the California High Cost Fund-B claims filed by Roseville for the period of August 1997 through July 1998.

3. The California High Cost Fund-B Administrative Committee has not formally approved any California High Cost Fund-B claims filed by Roseville.

4. The surcredit of 0.8271% as filed by Roseville in Advice Letter 425 should be implemented on a provisional basis and should be subject to revision by the Commission through subsequent resolution action. The adoption of a permanent surcredit for Roseville should be through the process set forth in Ordering Paragraph 3 of D.98-09-039.

5. Roseville should file a supplement Advice Letter within five days of the effective date of this resolution to reflect that the surcredit of 0.8271% as adopted herein is implemented on a provisional basis subject to revision through subsequent Commission action by resolution.

THEREFORE, IT IS ORDERED that:

















This Resolution is effective today.

I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on November 19, 1998. The following Commissioners approved it:

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