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PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Telecommunications Division

RESOLUTION T-16559

Public Programs Branch

August 23, 2001

R E S O L U T I O N

RESOLUTION T-16559. TO ADOPT THE BUDGET FOR THE TIME PERIOD FROM JULY 1, 2002 THROUGH JUNE 30, 2003 FOR THE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) PLACEMENT INTERIM COMMITTEE (TPIC).

BY LETTER DATED MAY 30, 2001.

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SUMMARY

This resolution adopts an operating budget of $1,092,615 for the TDD Placement Interim Committee (TPIC), for the time period of July 1, 2002 through June 30, 2003. The resolution also reduces the current surcharge rate to zero effective July 1, 2002. A breakdown of the adopted budget is set forth in Appendix B.

BACKGROUND

Pursuant to Decision No. 97-12-104, effective December 16, 1997, the Commission established the TPIC to design and implement a program that provides for publicly available telecommunications devices capable of servicing the needs of the deaf or hearing impaired (program equipment) in existing buildings, structures, facilities, and public accommodations as required by Section 2881.2 of the Public Utilities Code. The TPIC is to be funded by an incremental surcharge of up to 0.0002, or 0.02%, applicable to the billing base to which the Deaf and Disabled Telecommunications Program (DDPT) surcharge is applied. The maximum funding limit for the DDTP surcharge (the aggregate of both the DDTP Program and the TPIC) is capped at 0.50%.

Subject to the direction, control, and approval of the Commission, the TPIC's mission is to specify locations within existing buildings, structures, facilities and public accommodations for the placement of program equipment and to ensure consideration for the procurement, installation, and maintenance of the program equipment. The TPIC also serves as an advisory committee on issues related to meeting the requirements of Section 2881.2 of the Public Utilities (P.U.) Code.

Decision (D.) 99-03-034 adopted the budget for 1999 and funded the program through an incremental surcharge of 0.012% in the Deaf Equipment Acquisition Fund (D.E.A.F.) surcharge for bills rendered on or after January 1, 1999. This adopted incremental surcharge was applied on all bills for subscribers' intrastate telephone service, other than one-way radio paging service and universal lifeline telephone service, as set forth in PU Code Section 2881 (d). The D.99-03-034 also states that subsequent budget and surcharge requests shall be submitted by letter to the Executive Director and served on the service list.

Resolution T-16362 adopted a year 2000 budget of $1,228,318 and reduced the surcharge rate from 0.012% to 0.001%. Resolution T-16403, adopted by the Commission on May 18, 2000, authorized a budget of $586,338 for the six- month period of January 1, 2001 through June 30, 2001, and continued the same surcharge rate. The same surcharge rate also was continued in Resolution T-16429 for the $464,179 budget for fiscal year 2001-2002.

BUDGET FILING PROCESS

The provisions of P.U. Code Section (Section) 279 (b) changed the filing requirements for TPIC budgets and surcharge levels and provided that TPIC Program funds be deposited to the State Treasury. To conform to the State Budget process, the TPIC budget process was modified from a calendar year basis to a State of California fiscal year budget basis.

To comply with the requirements of P.U. Code Section 273 (a), the TPIC Administrative Committee must submit a proposed budget through a letter request to the Commission on or before June 1. The Commission has ninety (90) calendar days to approve the proposed TPIC budget since the Commission must submit a Budget Change Proposal for the TPIC Program to the Department of Finance (DOF) by September 1.

Furthermore, P.U. Code Section 274 includes a provision that requires the Commission to conduct a financial and compliance audit of public programs' related costs and activities at least once every three years, beginning January 1, 2000. In future years under the provisions of P.U. Code Section 270 (b), if the State budget, which includes the TPIC Program budget expenses, is not adopted by the Legislature and signed by the Governor on or before the beginning of the fiscal year, any TPIC related expenses will not be paid even if the associated expenses are approved by the TPIC Administrative Committee.

The PSPE budget for the fiscal year July 1, 3003 through June 30, 3004 should be submitted to the Commission's Executive Director on or before June 1, 2002.

NOTICE/PROTESTS

On May 30, 2001, the TPIC Program submitted to the Commission its proposed budget of $360,629 for the time period from July 1, 2002 through June 30, 2003. This filing was publicly noticed on the Commission's Daily Calendar on July 12, 2001 stating that any responses and/or protests must be made in writing and received by the Commission within 20 days. The Telecommunications Division (TD) will incorporate any comments received on a timely basis.

DISCUSSION

TPIC requested a budget of $360,629 for the 2002/2003 fiscal year which is approximately $103,000 less than the budget for the current fiscal year 2001/2002. The requested amount, however, doesn't include the cost of $732,615 to purchase Text Teletype (TTY) equipment which was authorized in the prior budget year and for which funds have been earmarked. TD recommends that the $732,615 be added to the TTY equipment expense.

TD estimates that the reserve balance available at the end of fiscal year 2003, without any surcharge revenue, will be $1,176,615 as set forth in Appendix B. This amounts to over four months of operating expenses. TD recommends that the current surcharge should be reduced to zero effective July 1, 2002.

NOTICE OF AVAILABILITY OF CONFORMED RESOLUTION

In the past the Commission has served hard copies of resolutions on carriers and parties on the appropriate service list(s). To be consistent with the Commission's commitment to utilize the CPUC Internet for distributing Commission orders and information, TD has sent a letter of notice to the parties of record in I. 88-04-029 as well as the Local Exchange Carriers (LECs) and the Competitive Local Exchange Carriers (CLECs) informing them of the availability of the draft resolution as well as the conformed resolution, when adopted by the Commission, on the Commission website, www.cpuc.ca.gov. In addition, a hard copy of the draft resolution in this matter was sent to the parties of record in I. 88-04-029 on July 24, 2001. Comments received on a timely basis will be addressed by TD in this resolution. A copy of the conformed resolution also will be provided to all parties on the service list of I. 88-04-029

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All LECs and CLECs that provide a line for a pay telephone should file an advice letter with associated tariff sheets revising the TPIC surcharge on or before June 15, 2002, consistent with the provisions of General Order No. 96-A. The notice requirement of G. O. 96-A, Section III, G.1, (to furnish competing utility companies, either public or private, with copies of the related tariff sheets), should be waived. The advice letter and tariff sheets should become effective on July 1, 2002.

For administrative efficiency, it is reasonable to allow all LECs and CLECs that collect various public program charges, for Fiscal Year 2002-2003, to file one advice letter, accompanied by associated tariff sheets, revising the surcharge rates in accordance with commission adopted resolutions and/or decisions.

FINDINGS

1. SB 669 changes the filing requirements for proposed public program budgets and surcharge rates to a fiscal year basis from a calendar year basis.

2. TD's recommended budget of $1,092,615 for the fiscal budget period of July 1, 2002 through June 30, 2003, as set forth in Column D of Appendix B, is reasonable and should be adopted.

3. The TPIC Program positions and salaries set forth in Appendix A are reasonable and should be adopted.

4. TD's recommendation that the current surcharge should be reduced to zero due to sufficient available reserves to cover expenses without any surcharge funding the fiscal year beginning July 1, 2002 and ending June 30, 2003 is reasonable and should be adopted.

5. All LECs and CLECs that provide a line for a pay telephone should file an advice letter with associated tariff sheets revising the TPIC surcharge on or before June 15, 2002, consistent with the provisions of General Order No. 96-A. The notice requirement of G. O. 96-A, Section III, G.1., (to furnish competing utility companies, either public or private, with copies of the related tariff sheets), should be waived. The advice letter and tariff sheets should become effective on July 1, 2002.

6. For administrative efficiency, it is reasonable to allow all LECs and CLECs that collect various public program charges, for Fiscal Year 2002-2003, to file one advice letter, accompanied by associated tariff sheets, revising the surcharge rates in accordance with commission adopted resolutions and/or decisions.

7. The PSPE budget for the Fiscal year July 1, 2003 through June 30, 2004, should be submitted to the Commission's Executive Director on or before June 1, 2002.

THEREFORE, IT IS ORDERED that:

1. The Telecommunications Devices for the Deaf (TDD) Interim Placement Committee (TPIC)'s annual budget from July 1, 2002 through June 30, 2003 of $1,092,615 as set forth in Column D of Appendix D is adopted.

2. The TPIC Program positions and salaries set forth in Appendix A are adopted.

3. The TPIC surcharge rate is reduced to zero, effective July 1, 2002.

4. All LECs and CLECs that provide a line for a pay telephone must file an advice letter with associated tariff sheets revising the TPIC surcharge on or before June 15, 2002, consistent with the provisions of General Order No. 96-A. The notice requirement of G. O. 96-A, Section III, G.1., (to furnish competing utility companies, either public or private, with copies of the related tariff sheets), is waived. The advice letter and tariff sheets shall be effective on July 1, 2002.

5. For administrative efficiency, it is reasonable to allow all LECs and CLECs that collect various public program charges, for Fiscal Year 2002-2003, to file one advice letter, accompanied by associated tariff sheets, revising the surcharge rates in accordance with commission adopted resolutions and/or decisions.

6. The TPIC budget for the fiscal year July 1, 2003 through June 30, 2004 shall be submitted to the Commission's Executive Director on or before June 1, 2002.

This Resolution is effective today.

I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on August 23, 2001. The following Commissioners approved it:

APPENDIX A

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