Public Service Commission, Administration

Section R746-360-4

Application of Fund Surcharges to Customer Billings

Notice of Proposed Rule

(Amendment)

DAR File No.: 34979
Filed: 06/27/2011 05:53:38 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed amendment will increase the Universal Public Telecommunications Service Support Fund surcharge from 0.25 percent to 1 percent. This will more closely match future anticipated funds and fund balance to future anticipated expenditures.

Summary of the rule or change:

The intrastate retail surcharge will be increased from 0.25 to 1 percent.

State statutory or constitutional authorization for this rule:

• Section 54-8b-15

Anticipated cost or savings to:

the state budget:

There will be an increase in costs. The surcharge is assessed on all retail intrastate telecommunications services. An increase in the surcharge will result in an increase 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 to determine the amounts paid by specific customers of the telecommunications carriers. A secondary affect are the additional collections for the universal service fund itself, which will amount to approximately $6,000,000 annually.

local governments:

There will be an increase in costs. The surcharge is assessed on all retail intrastate telecommunications services. An increase in the surcharge will result in an increase in the amount paid by local governments 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 to determine the amounts paid by specific customers of the telecommunications carriers.

small businesses:

There will be an increase in costs. The surcharge is assessed on all retail intrastate telecommunications services. An increase in the surcharge will result in an increase in the amount paid by all businesses 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 to determine the amounts paid by specific customers of the telecommunications carriers.

persons other than small businesses, businesses, or local governmental entities:

There will be an increase in costs. The surcharge is assessed on all retail intrastate telecommunications services. An increase in the surcharge will result in an increase in the amount paid by all customers 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 to determine the amounts paid by specific customers of the telecommunications carriers.

Compliance costs for affected persons:

The Commission will make the rule effective at a future date which will allow telecommunications carriers collecting the surcharge adequate time to become aware of the increase and change their billing systems to accommodate the change. This date is anticipated to be 09/01/2011. Costs for telecommunications carriers to collect the increased surcharge are expected to remain the same as before the proposed amendment. However, there could be an increase in telecommunications costs. The surcharge is assessed on all retail intrastate telecommunications services. An increase in the surcharge will result in an increase in the amount paid by for retail intrastate telecommunications services purchased from telecommunications carriers which are not self-provided by a carrier. While the Commission has information concerning the periodic surcharge amounts collected by telecommunications carriers, it does not have the ability to disaggregate those amounts to determine the amounts paid by specific customers of the telecommunications carriers.

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

Although there will be an increase in the amount of the surcharge, the exact impact upon businesses is difficult to project beyond the absolute percentage increase, from 0.25 to 1 percent. The dollar amount of the increase for any individual entity will depend upon the amount of retail intrastate telecommunications services used by the customer.

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
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• David Clark at the above address, by phone at 801-530-6709, by FAX at 801-530-6796, or by Internet E-mail at drexclark@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:

08/15/2011

This rule may become effective on:

08/22/2011

Authorized by:

David Clark, 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 [0.25]1 percent of billed intrastate retail rates.

 

KEY: public utilities, telecommunications, universal service fund

Date of Enactment or Last Substantive Amendment: [January 19,] 2011

Notice of Continuation: November 25, 2008

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