DAR File No. 31704

Public Service Commission, Administration

R746-360-4

Application of Fund Surcharges to Customer Billings

NOTICE OF PROPOSED RULE

DAR File No.: 31704
Filed: 07/15/2008, 09:07
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Fund is sufficient and future accruals will be greater than expected expenditures. The Division of Public Utilities has suggested decreasing the surcharge rate to decrease the prospect of a higher Fund balance not warranted by anticipated future expenditures.

Summary of the rule or change:

The existing surcharge of 0.5 percent would be decreased to 0.45 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 cost reduction equal to 0.05 percent of expenditures made for intrastate public telecommunications services. No other change in state agency costs or savings is expected from the rule change.

local governments:

There will be a cost reduction equal to 0.05 percent of expenditures made for intrastate public telecommunications services. No other change in local government costs or savings is expected from the rule change.

small businesses and persons other than businesses:

There will be a cost reduction equal to 0.05 percent of expenditures made for intrastate public telecommunications services. No other change in telephone customers' costs or savings is expected from the rule change.

Compliance costs for affected persons:

Total Fund collections for the first six months of 2008 amounted to $3,395,457. Using this as a representative amount, changing the Fund surcharge will result in a reduction in total monthly Fund collections of $56,590. The specific dollar reduction for an individual customer will vary based upon the amount of public telecommunications services used during any billing period.

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

The Commission sees no need to increase the total Fund balance. Reduction in the surcharge amount will place the Fund and future collections commensurate with anticipated expenditures. All consumers will see a slight, 0.05 percent, reduction in their expenditures for intrastate public telecommunications services. The specific amount a customer will save will be dependent upon the amount spent on such services during any month. Ted Boyer, Commission Chairman

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

Public Service Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at sbintz@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:

09/02/2008

This rule may become effective on:

09/09/2008

Authorized by:

Sandy Mooy, Legal Counsel

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 [0.5]0.45 percent of billed intrastate retail rates.

 

KEY: public utilities, telecommunications, universal service

Date of Enactment or Last Substantive Amendment: [August 1, 2006]2008

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