DAR File No. 28771

Public Service Commission, Administration

R746-360-4

Application of Fund Surcharges to Customer Billings

NOTICE OF PROPOSED RULE

DAR File No.: 28771
Filed: 06/01/2006, 09:57
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this proposed amendment is to reduce the Universal Public Telecommunications Service Support Fund surcharge from 0.9 to 0.5 percent. This will more closely match future anticipated funds to future expenditures.

Summary of the rule or change:

The retail surcharge will be reduced from 0.9 to 0.5 percent.

State statutory or constitutional authorization for this rule:

Section 54-8b-15

Anticipated cost or savings to:

the state budget:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will necessarily result in a decrease in the amount paid by state government for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts into the specific classifications of state government, local government, or other persons. The overall reduction in the surcharge funds is expected to be $2,000,000 over a 5-year period.

local governments:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will necessarily result in a decrease in the amount paid by state government for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts into the specific classifications of state government, local government, or other persons. The overall reduction in the surcharge funds is expected to be $2,000,000 over a 5-year period.

other persons:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will necessarily result in a decrease in the amount paid by state government for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts into the specific classifications of state government, local government, or other persons. The overall reduction in the surcharge funds is expected to be $2,000,000 over a 5-year period.

Compliance costs for affected persons:

There will be a reduction in costs. The surcharge is assessed on all retail intrastate telecommunications services. A reduction in the surcharge will necessarily result in a decrease in the amount paid for retail intrastate telecommunications services. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts into the specific classifications of state government, local government, or other persons. The overall reduction in the surcharge funds is expected to be $2,000,000 over a 5-year period. For an individual customer, the reduction will equal 0.4 percent of the charges paid for intrastate retail telecommunications services.

Comments by the department head on the fiscal impact the rule may have on businesses:

Although there will be a reduction in the amount of the surcharge, the exact impact upon businesses is difficult to project beyond the percentage reduction, 0.4 percent, that will be made on intrastate retail public telecommunications services' charges. The individual dollar amount of the reduction will be dependent upon the amount an entity expends for such services. Ric Campbell, Chairman

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Sandy Mooy or Barbara Stroud at the above address, by phone at 801-530-6708 or 801-530-6714, by FAX at 801-530-6796 or 801-530-6796, or by Internet E-mail at smooy@utah.gov or bstroud@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/17/2006

This rule may become effective on:

07/25/2006

Authorized by:

Barbara Stroud, Paralegal

RULE TEXT

R746. Public Service Commission, Administration.

R746-360. Universal Public Telecommunications Service Support Fund.

R746-360-4. Application of Fund Surcharges to Customer Billings.

A. Commencement of Surcharge Assessments -- Commencing June 1, 1998, end-user surcharges shall be the source of revenues to support the fund. Surcharges will be applied to intrastate retail rates, and shall not apply to wholesale services.

B. Surcharge Based on a Uniform Percentage of Retail Rates -- The retail surcharge shall be a uniform percentage rate, determined and reviewed annually by the Commission and billed and collected by all retail providers.

C. Surcharge -- The surcharge to be assessed shall equal [0.9]0.5 percent of billed intrastate retail rates.

KEY: public utilities, telecommunications, universal service

Date of Enactment or Last Substantive Amendment: [August 8, 2005]2006

Notice of Continuation: November 25, 2003

Authorizing, and Implemented or Interpreted Law: 54-3-1; 54-4-1; 54-7-25; 54-7-26; 54-8b-12; 54-8b-15

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Sandy Mooy or Barbara Stroud at the above address, by phone at 801-530-6708 or 801-530-6714, by FAX at 801-530-6796 or 801-530-6796, or by Internet E-mail at smooy@utah.gov or bstroud@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.