7. Comments on Proposed Decision

The proposed decision in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Comments on the proposed decision were filed on March 14, 2011. The Utility Reform Network, National Consumer Law Center, and Disability Rights Advocates (Joint Consumers) submitted joint comments questioning whether fully reimbursing carriers up to their unregulated basic service rates could result in a "pure windfall of profit" for the carriers that would place a "tremendous strain" on the Lifeline fund.⁵ These parties recommended that that scoping memo for the new proceeding be more detailed and included the following issues:

1. declining levels of enrollment in the Lifeline program,

2. creating a process for determination of Lifeline eligibility prior to signing up with a carrier, and

3. issues raised by applying Lifeline subsidy to bundled services.

The Joint Consumers also asked for an explicit finding that their previous intervenor compensation filings and findings will be transferred to this new docket.

Verizon California, Inc. (Verizon) submitted comments asking the Commission to change the implementation deadline to 90 days after GO 153 changes have been approved by the Commission. Verizon also recommends that the PD establish December 31, 2012 as the end of the transition period and further recommends confirming Finding of Fact 25 of the Lifeline Decision such that the Specific Support Amount discount also applies to regular measured service. Lastly, Verizon suggests the Commission provide an extended implementation period to allow carriers an opportunity to notice Lifeline measured customers of the change and provide an orderly transition.⁶

Cox California Telcom, L.L.C., dba Cox Communications (Cox) submitted comments suggesting that the Commission clarify when the transition period commences and strongly recommending that the Commission maintain a ninety-day transition period to ensure that carriers have time to make the necessary changes to comply with the proposed GO 153. Cox also proposed that the Commission adopt a general procedural schedule for the period of time between the Commission adopting a decision in this docket and the date the Commission adopts an updated version of GO 153.⁷

SureWest Telephone and SureWest TeleVideo (SureWest) submitted comments supporting the PD's clarification that the SSA would be implemented 90 days following issuance of the resolution of GO 153. SureWest also recommends that the transition period should include all of the time from the effective date forward, not just from the implementation of the Set Support Amount. Lastly, SureWest proposes that the Commission further consider the status of Lifeline measured rate of free calls in the Proposed OIR.⁸

AT&T, AT&T Communications of California, Inc., TCG San Francisco, TCG Los Angeles, Inc., TCG San Diego, AT&T Advanced Solutions, Inc., and New Cingular Wireless PCS, LLC. (AT&T) submitted comments urging the Commission to amend the Findings of Fact and Conclusions of Law to reflect that in addition to the allowable Set Support Amount applied against the monthly recurring rate of LifeLine Measured Service, carriers may collect lost revenues associated with untimed local calls consistent with current program rules and the start date and duration of the transition period should be set in pending draft resolution modifying GO 153.⁹

Calaveras Telephone Company, Cal-Ore Telephone Co., Ducor Telephone Company, Foresthill Telephone Co., Happy Valley Telephone Company, Hornitos Telephone Company, Kernan Telephone Co., Pinnacles Telephone Company, the Ponderosa Telephone Company, Sierra Telephone Company, Inc., The Siskiyou Telephone Company, Volcano Telephone Company, and Winderhaven Telephone Company (Small LEC's) submitted comments echoing SureWest, Cox, and Verizon, suggesting that the Set Support Amount system should occur 90 days after the Commission adopts an updated version of GO 153. The Small LEC's also recommend defining the transition period from the "effective date of the decision through December 31, 2012."¹⁰ Lastly, the Small LEC's support the initiation of a proceeding to evaluate implementation issues as the changes to the LifeLine program move forward.

DRA filed reply comments on March 18, 2011, concurring with Joint Consumers on including the three listed issues within the scope of the new proceeding, and suggested that the implementation schedule should be more specific. DRA also agreed that allowing carriers to be reimbursed up to their full unregulated basic service price will stress the fund, and that measured service should be retained with provision for collecting "lost revenues" arising from the untimed local calls.¹¹

Cox also filed reply comments on March 21, 2011 further suggesting that the Commission adopt an interim period, an implementation period, and a transition period. Lastly, Cox submits that the PD adopted rules for measured service.¹² Cox suggests the Commission consider the date by which carriers will implement that change.