Securus Challenges CPUC Inmate Call Rate Cap in Calif. Court

its petition last month to rehear the agency's August interim IPCS decision (see 2204130007 and 2204120047). "Securus supports data-driven, reasoned regulation such as the IPCS rate caps adopted by the FCC in its May 24, 2021 Interim Rate Order following an exhaustive analysis of cost data submitted by IPCS providers,” said the suit. Securus supported a CPUC staff recommendation to use the FCC rate regulation as an interim measure in California, but commissioners rejected that “and adopted rate regulation divorced from reasoned decision-making and lacking any substantial evidentiary foundation. As a result, companies providing IPCS to the state’s over 200 jails are saddled with a rate cap that is well below their cost of providing service to many of those facilities.” It was “an abuse of discretion and authority by the” CPUC, said Securus: The decision was “substantively and procedurally defective and raises issues of both administrative and constitutional dimensions.” The CPUC decision was interim, but “it is likely to remain in effect for years, as these proceedings are already over a year behind schedule, necessitating this Court’s intervention now.” Securus has tried “to find common purpose with federal and state regulators … in formulating meaningful rate caps and other reforms,” said Securus parent Aventiv Technologies CEO Dave Abel: But California commissioners’ rejected staff’s recommendation and instead chose “arbitrary rate caps without considering the necessary data for a thoughtful decision that complied with California law.” Securus didn’t “come to this decision lightly,” Abel said. “We’ve undertaken a national effort to reduce costs and create better outcomes for consumers. Regulation based on the thoughtful evaluation of relevant data is vital.” The CPUC didn’t comment.