Calif. LifeLine Users Could Lose FCC Support Under CPUC Plan: Public Advocate
California’s public advocate wants a delay in updating state LifeLine wireless minimum service standards until the California Public Utilities Commission considers the impact of the federal Lifeline MSS increasing Dec. 1 to 18 GB. By failing to acknowledge the federal MSS increase, the CPUC's Aug. 6 proposed decision could mean customers lose federal support, warned the agency's independent Public Advocates Office (PAO) in comments posted Friday. California’s proposal also includes automating the renewal eligibility process and updating specific service amounts. AT&T raised concerns about how much the state plans to replace federal support for wireline services that don’t meet federal broadband minimum standards.
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The California proposal would increase the wireless MSS for a basic plan to 4.5 GB from 4 GB Dec. 1, which would align it with the current FCC amount. But the federal amount could increase the same day to 18 GB, unless the FCC acts as it did in some past years (see 2107300058). The California proposal would keep MSS for standard plans at 6 GB, and 6 GB per line for family plans, and eliminate an “upgrade” 12 GB plan. The proposed decision says the CPUC may vote as soon as its Sept. 9 meeting.
Before adopting a final decision, the CPUC should seek comment on “the new federal MSS and the impact of aligning or failing to align California’s LifeLine requirements with that standard prior to adopting its final decision,” PAO commented in docket R.20-02-008. “If California’s LifeLine MSS do not meet or exceed the federal LifeLine MSS, California LifeLine service plans will be ineligible for the $9.25 federal LifeLine subsidy, which will increase the price of service for Lifeline participants.” The federal subsidy is about 38% of customers’ monthly support, it said.
Commenters supported a plan to streamline the renewals process by allowing the third-party administrator to check qualifying state and federal program databases for continuing eligibility. “This should make the renewal process easier for both LifeLine subscribers and providers and may improve renewal rates,” said AT&T. Nine in 10 participants are denied renewal because they fail to return renewal forms, said the National Lifeline Association and others. “That point of failure is avoided with eligibility database access.” Other supporters included Cox and Tracfone.
The proposed decision would set varying amounts of state support to replace federal support for wireline services that don’t meet minimum broadband MSS, depending on how much the FCC phases down support. Currently, the FCC has a $5.25 subsidy and California adds $2, which adds up to $7.25 total. If the FCC eliminates the federal subsidy, California would increase its support to $5.25 under the CPUC proposal. If the FCC reduces federal support by less than $2, California would continue to provide $2. If the FCC reduces by more than $2, California would replace the difference between $5.25 and the amount of federal support, meaning combined support could be anywhere between $5.26 and $7.24.
AT&T said all situations should add up to $7.25. “Any proposal that fails to make up entirely for eliminated federal subsidies is insufficient,” it said. “Failing to make up for lost support while forcing wireline providers to offer LifeLine will cause LifeLine prices for wireline customers to increase.” Also, AT&T asked the CPUC to “clarify that price increases made by LifeLine providers will not disqualify those providers from recovering from the California LifeLine Fund.”
CalTel and other small RLECS supported the proposed support-replacement policy as "an important acknowledgment of the value of continued LifeLine discounts for 'voice only' customers and customers who may select a broadband plan with speeds lower than” 25 Mbps download and 3 Mbps upload even where they can get 25/3 Mbps. The telcos suggested simplifying the proposed rule to say “combined federal support and California makeup support shall not exceed a total of $7.25 per customer per month.”
The CPUC should require staff to quickly complete work to develop an eligibility category that doesn't require someone to have a social security number, said the California Emerging Technology Fund. The commission ordered that in 2014, but it was never implemented. The CPUC now has an “opportunity ... to serve equity and social justice,” CETF said. The Utility Reform Network and other consumer groups agreed, adding the agency should also make foster youth “categorically eligible” for LifeLine support.