Consumer Groups Urge CPUC to Act on ICS Rate Proposal
California regulators should reject prison-phone provider claims that a competitive market is already bringing reduced intrastate rates, consumer groups said in Monday reply comments in docket R.20-10-002. They responded to Global Tel*Link (GTL) and Securus telling the California Public Utilities…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Commission earlier this month that proposed limits on inmate calling service (ICS) rates and some fees are illegal (see 2108030041). A 7 cent cap would be “just and reasonable,” said the CPUC’s Public Advocates Office (PAO). GTL and Securus arguments that the interim rules wouldn't allow them to recover costs are “invalid,” the PAO said. It plans to meet by videoconference Thursday with aides to President Marybel Batjer and Commissioner Darcie Houck, and Friday with aides to Commissioner Cliff Rechtschaffen, the public advocate said in filings Monday and Tuesday. The Center for Accessible Technology urged the CPUC to reject ICS provider arguments that they lack market power. “That ... providers cannot set prices as high as they might like is not evidence that the market is competitive.” The proposed decision “properly views the market through the lens of the end-user, who has no choice of IPCS [incarcerated persons calling services] service provider,” replied The Utility Reform Network: Provider “arguments claim theoretical negotiation dynamics and restrictions on rate changes within the RFP process but lack the end-user perspective entirely.” The Prison Policy Initiative said “numerous factors other than market competition can lead to lower calling rates: facilities may demand or encourage carriers to offer lower rates; legislative bodies may require lower rates; carriers or facilities may simply want the administrative ease of a uniform rate structure for inter- and intrastate calling; carriers may lower voice calling rates and compensate by boosting revenue through unregulated services that are bundled in the same contract.” A 7 cent rate “is feasible for all facilities ... based on existing lower rates in facilities with populations less than 500 people” in other states, including local jails in Maryland, New Jersey and Washington state, said the Californians for Jail and Prison Phone Justice Coalition. Providers repeated their opposition to the interim plan. “The arbitrarily low single-rate cap and limits on ancillary service fees are unworkable and unlawful,” and would “undermine the substantial progress” made through competition, commented GTL. The CPUC may vote Aug. 19 on the draft order.