COM/DGX/jt2 Date of Issuance 8/25/2008

Decision 08-08-029 August 21, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Into Implementation of Federal Communications Commission Report and Order 04-87, as It Affects the Universal LifeLine Telephone Service Program.

Rulemaking 04-12-001 (Filed December 2, 2004)

DECISION ADOPTING A PRE-QUALIFICATION REQUIREMENT FOR THE CALIFORNIA LIFELINE TELEPHONE PROGRAM AND RESOLVING REMAINING PHASE 2 ISSUES

Table of Contents

Title Page

DECISION ADOPTING A PRE-QUALIFICATION REQUIREMENT
FOR THE CALIFORNIA LIFELINE TELEPHONE PROGRAM AND RESOLVING REMAINING PHASE 2 ISSUES 11

1. Summary 22

2. Background 22

3. Update on Recent Implementation Efforts 44

3.1. Improvements in Mail Delivery 44

3.2. Developing Contractual Solutions 44

3.3. Long-Term Outreach Efforts: 55

3.3.1. Rebranding 55

3.3.2. Assisting Community-Based Organizations (CBOs) 66

3.3.3. Enhancing the LifeLine Marketing Contract 66

3.4. Long-Term Solix-Carrier Interface Improvements 66

3.5. Long-Term Appeal and Complaint Solutions 77

3.6. Regular Meetings 77

4. Phase 2 Issues 88

4.1. Customer Pre-Qualification 88

4.1.1. Proposals to Mitigate the Impacts of Pre-Qualification 2626

4.1.2. Changes to General Order 153 as a Result of Pre-Qualification 3232

4.1.3. Implementation of Pre-Qualification 3939

4.2. Lessons From Other States 4444

4.2.1. Web-Based System 4444

4.2.2. Modification of the Certification Requirement 4646

4.3. Refinements in Customer Responses 5050

4.3.1. Processing Unscannable Mail 5050

4.3.2. Remedying Other Issues 5252

4.4. Synergies With Other Commission Low-Income Programs 5353

4.5. Results of the Solix Audit 5656

5. Comments on Proposed Decision 5757

6. Assignment of Proceeding 5757

Findings of Fact 5757

Conclusions of Law 5959

ORDER 6060

Appendix A - Backbilling Table

Appendix B - GO 153

DECISION ADOPTING A PRE-QUALIFICATION REQUIREMENT FOR THE CALIFORNIA LIFELINE TELEPHONE PROGRAM AND RESOLVING REMAINING PHASE 2 ISSUES

1. Summary

In this decision, we adopt a pre-qualification requirement for the California LifeLine Telephone Program (LifeLine or California LifeLine).¹ Under pre-qualification, a new applicant for the program will receive the discounted LifeLine rate for telephone service once Solix, the Certifying Agent determines that he/she is eligible. We adopt the necessary changes to General Order 153 to implement pre-qualification. Furthermore, we determine that we should not eliminate eligibility based on income but rather, continue to utilize eligibility based on both income and participation in other low-income programs. Some eligible customers do not participate in any of the means-tested programs and would therefore be excluded if we eliminated income-based eligibility.

We conclude that the changes we have made over the past year have been successful; the LifeLine program is operating effectively so there are no further steps we need to take at this time to improve our processes. However, we will keep this proceeding open so the Commission can monitor the implementation of pre-qualification.

¹ Also known as the Universal LifeLine Telephone Service Program.