Trade Law Daily is a Warren News publication.
NARUC Next Week

States Urge Rosenworcel to Reengage USF Joint Board

With a full complement of FCC commissioners possible soon, Federal-State Joint Board on Universal Service state members told us they’re looking forward to reconvening with the federal side. At NARUC’s Sunday through Nov. 10 hybrid meeting, state regulators plan to discuss possible changes to the USF contribution mechanism and consider a resolution to support energy utilities expanding broadband. FCC Commissioner Brendan Carr is to speak on a Wednesday NARUC panel on USF contribution with consultant Carol Mattey and AT&T and NCTA officials (agenda).

Under the last administration with ex-FCC Commissioner Mike O’Rielly as joint board federal chair, the agency side rejected states’ recommendation on revamping USF contribution. “It was an absolute, utter mess, and never was engaged,” said Mississippi Public Service Commissioner Brandon Presley (D), “but I’m hoping we can turn the page on that.” The joint board state member hopes having a full commission means the FCC will “fully engage” the USF joint board, he said in an interview: Chairwoman Jessica Rosenworcel should “put that committee to work.” O’Rielly condemned the board as ineffective last year (see 2011100060). The FCC didn’t comment now. O'Rielly declined to comment.

The joint board is ready and willing to engage with the FCC whenever they feel it’s appropriate on whatever issue they believe is appropriate,” said joint board state Chair Chris Nelson (R) in an interview. “It is far past time to deal” with USF contribution methodology. State members “finished our task” by delivering a recommendation on that item, said the South Dakota Public Utilities Commission chairman. “It’s really in the FCC’s court to finish the job.” When Rosenworcel was the joint board’s federal chair, “we had a very productive working relationship ... and I anticipate that will continue now that she’s been designated the full chair.”

As we move in the direction of seating a full Commission,” emailed NARUC Telecom Committee Chair Karen Charles Peterson, a joint board member, “I look forward to working with my fellow members on the Joint Board to address the complex issues currently facing universal service.”

Presley earlier urged President Joe Biden to nominate a state commissioner to the FCC (see 2107200063), but the commissioner said he’s “a political realist” who's pleased with who was ultimately selected. When Presley was NARUC president 2019-2020, he worked closely with Rosenworcel on broadband mapping, he noted: “She’s the right person at the right time with the right focus.”

Grid-Broadband Nexus

A draft resolution by Presley would urge regulators and industry to support utility wireline and wireless broadband for grid communications with the idea that the infrastructure could be shared to consumers (see 2110260063). It would ask lawmakers and state commissioners to reduce regulatory barriers. It follows a NARUC broadband task force report that recommended seeking ways to encourage utility broadband (see 2106250048).

Mississippi policymakers are working on “coupling grid modernization with broadband expansion,” and grid upgrades will likely be a big topic in states after the federal infrastructure bill is enacted, said Presley. His proposal aims to remove any state rules and laws standing in the way nationally, he said. “Any idea that we are going to somehow connect every home in America to broadband without utilizing electric utilities ... is nonsensical.”

Presley said he hasn’t heard any concerns from traditional ISPs, even though some bristled earlier this year at NARUC's emphasis on nontraditional broadband providers (see 2106020077). “The telecom providers that are most interested in serving rural America ... are finding ways to partner with electric utilities.” Some NARUC members took issue at past meetings with resolutions that advocate for state legislative action (see 2107200063 and 2011100033). Presley said he’s open to hearing “friendly amendments” if such concerns are raised.

Presley’s draft resolution is “exactly in keeping with our broadband task force recommendations,” said Nelson, who chaired that NARUC body. While recognizing traditional ISPs’ role, “we encourage new providers ... to help solve the problem.” Presley established the task force when he was NARUC president.

The Utilities Technology Council “applauds NARUC’s draft resolution supporting energy company communications infrastructure for broadband expansion,” emailed UTC President Sheryl Riggs. “Utility broadband infrastructure supports both critical grid communications and middle mile connectivity for consumer broadband access.” It will improve utility service, expand broadband and enhance wireless communications for utilities with overlapping territories, Riggs said.

CTIA has no position on the resolution, a spokesperson said. USTelecom and NCTA declined to comment.