6. Miscellaneous Errors

The Decision adopts a rate cap on basic residential rates (including measured and flat-rate residential service) that are subsidized by the CHCF-B and LifeLine (hereafter ULTS) programs. The rate cap is imposed until issues related to those programs are determined in the Public Purpose Program (PPP) OIR. (D.06-08-030, pp. 153, 255, 280 [Ordering Paragraphs 2, 6].).

With respect to non-subsidized basic residential service, we found that market conditions generally support pricing flexibility. However, we adopted a temporary price cap until January 1, 2009. (D.06-08-030, pp. 153-154, 280 [Ordering Paragraph 3].) In connection with this price cap, we approved the principle of revenue neutrality to allow carriers to offset rates in response to rate price changes mandated by the FCC for services still subject to its price controls. (D.06-08-030, pp. 155-156.)

According to TURN and DRA, the Decision contains three technical errors and inconsistencies which must be remedied. These relate to: (a) the price caps for services "associated" with ULTS subsidized residential basic service; (b) protection for CHCF-B and ULTS residential basic service offered in bundles; and (c) revenue neutrality. (TURN/DRA Rhg. App., pp. 41- 45.)