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ALJ/MAB/eap Mailed 5/30/2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Rulemaking on the Commission's Own Motion to Review the Telecommunications Public Policy Programs.

FILED
PUBLIC UTILITIES COMMISSION
MAY 25, 2006
SAN FRANCISCO OFFICE
RULEMAKING 06-05-028

ORDER INSTITUTING RULEMAKING
ON TELECOMMUNICATIONS PUBLIC POLICY PROGRAMS

I. Summary

With this decision, the Commission initiates a comprehensive review of its Telecommunications Public Policy Programs - California LifeLine, Payphones Programs, Deaf and Disabled Telecommunications Program, and California Teleconnect Fund.1 California is a leader in adopting programs that ensure a ubiquitous and affordable telecommunications system. These programs are funded by surcharges on California jurisdictional revenues of each telephone service provider in California, both landline and wireless providers, with a total cost of over $350 million per year.

This rulemaking sets out questions to focus discussion on funding, accountability, and whether the program is meeting its statutory goal. Most importantly, we seek proposals to address identified deficiencies in any program. We are committed to improving our administration of these programs, and we will do so without increasing the total cost.

1 For purposes of the funding mechanism only, we are including the California High Cost Funds A and B in this proceeding. Programmatic review of Funds A and B will be conducted in other proceedings.

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