The Nebraska Public Service Commission will mull changing state USF contribution in a Jan. 6 hearing at 10 a.m., members decided 4-0 Tuesday. One member was excused. The state commission is weighing a proposal in docket NUSF-119 to extend its connections-based mechanism to business and government services. Big carriers oppose that change (see 2009020032). The Oklahoma Corporation Commission could vote next week on changing state USF contribution from a revenue-based method to a connections-based mechanism with a 91 cents per line monthly surcharge (see 2008110047). An administrative law judge last month recommended changing to connections. Commissioners, scheduled to hold a hearing on exceptions to the ALJ recommendation next Tuesday, “might vote at the end of the hearing, or take the matter under advisement,” an OCC spokesperson emailed Monday. CTIA complained Oct. 30 that the ALJ barely discussed its views, including that the connections method may violate state or federal law and hurt poor or unemployed people (see 2008170054). AT&T, CTIA and the Oklahoma AG “place an outsized emphasis on potential changes to amounts contributed by customer classes and completely ignore the record concerning growing inequities under the current revenue-based methodology,” the OUSF administrator responded, posted Nov. 10. Meanwhile, in Texas last week, the Public Utility Commission again urged the legislature to deal with state USF, despite concerns by state lawmakers, small telcos and others that the fund may become insolvent without PUC action before the legislature meets in 2021 (see 2010160052). Texans paid more than $2.7 billion into TUSF over the past 10 years, so the commission “was reluctant, in the midst of a pandemic and economic downturn, to further burden the Texans who pay into the fund,” Executive Director John Paul Urban responded to four Texas House members who raised concerns. The PUC didn’t consider increasing the surcharge until funds nearly ran out because telecom companies who pay into TUSF didn’t “provide any insight into the drastic declines in reviews that abruptly occurred,” Urban said. “When Commission staff estimated the fee needed to support all the requested TUSF subsidies, they had to account for the downward trends in revenue and a depleting fund balance. These trends continue to worsen and the fund balance continues to deplete.”
State commissioners can influence broadband policy even with limited telecom authority, said NARUC broadband task force members at the association’s virtual annual meeting Thursday. Utility regulators’ telecom role “has diminished significantly” in most states, but they can still “play the role of honest broker,” said Idaho Public Utilities Commissioner Paul Kjellander, who next week becomes NARUC president. Collaboration with federal government is a must, said other commissioners.
State commissioners can influence broadband policy even with limited telecom authority, said NARUC broadband task force members at the association’s virtual annual meeting Thursday. Utility regulators’ telecom role “has diminished significantly” in most states, but they can still “play the role of honest broker,” said Idaho Public Utilities Commissioner Paul Kjellander, who next week becomes NARUC president. Collaboration with federal government is a must, said other commissioners.
New Mexicans voted to switch from an elected Public Regulation Commission to one that's governor-appointed, with 55% voting yes Tuesday. It's the 40th state with appointed commissioners. A key state telecom commissioner will continue in her job, and many other elected incumbents also appeared to hold seats, showed state results Wednesday (see 2011040019). Denver is the latest and largest city to opt out of Colorado’s ban on municipal broadband.
A possible switch from an elected to governor-appointed New Mexico Public Regulation Commission is dividing current and possibly future members. New Mexicans will vote Nov. 3 on that issue and on who will fill two commissioner seats at least until 2023, when the change would take effect. Nine other states also have utility regulator elections this year, with several candidates talking broadband.
The Nebraska Public Service Commission should keep the revenue-based USF contribution for business and government services because it’s less complex than a connections-based mechanism, big telecom and cable companies said in comments received Monday and emailed to us Wednesday. The PSC is proposing to expand its connections-based method that now applies only to residential services (see 2008110047). “Business customers' connections may fluctuate” and “the applicable surcharge would need to be examined, and potentially changed on a monthly basis,” Cox Communications, Charter Communications and Time Warner Cable commented jointly in docket NUSF-119. Large business customers might relocate to a lesser taxed state due to rate shock, the cablers warned. Carriers understand revenue-based contribution; applying contributions to business and government services “will be complex, costly and confusing,” said AT&T. Complexities applying the connections method to business and government services have increased in the past three years, said CenturyLink. COVID-19 “has caused an unprecedented shift to work from home and away from business communications services which is likely to impact the analysis,” it added. Nebraska law requires revenue-based contribution for prepaid wireless services, said CTIA. A connections method for residential services stabilized and increased the fund, so "the financial threat to the NUSF viability has been overcome,” said Frontier Communications. Moving to connections for business and government lines is "impractical at this time," said Windstream. Small rural telcos countered that applying connections-based contribution for all kinds of services is fairer. “Much of rural Nebraska remains unserved or underserved," and current remittances "will come nowhere close" to providing enough support, commented the Rural Telecommunications Coalition of Nebraska. Exempt prepaid wireless, toll revenue and directory, private line and paging services, which don't lend themselves to a connections-based surcharge, said a state group of rural independent companies. Keep revenue-based at least for institutional operator service providers, urged Securus, saying it doesn’t “have the ability to determine or charge the NUSF applying a connections-based methodology" because it charges prison customers per call.
Nebraska lawmakers voted 47-0 Tuesday for a broadband infrastructure bill. LB-992 would ease deployment on existing electric easements. It would require the Nebraska Public Service Commission to establish an E-rate special construction matching fund program to support fiber installation at libraries with state USF. Profits from leasing excess capacity on dark fiber that currently go to an internet enhancement fund would go instead to state USF, with the former fund to be terminated June 30. The bill would also create a state broadband coordinator and four regional technicians to support libraries with internet and computer access. The bill goes next to Gov. Pete Ricketts (R), who didn’t comment Wednesday.
Nebraska lawmakers voted 47-0 Tuesday for a broadband infrastructure bill. LB-992 would ease deployment on existing electric easements. It would require the Nebraska Public Service Commission to establish an E-rate special construction matching fund program to support fiber installation at libraries with state USF. Profits from leasing excess capacity on dark fiber that currently go to an internet enhancement fund would go instead to state USF, with the former fund to be terminated June 30. The bill would also create a state broadband coordinator and four regional technicians to support libraries with internet and computer access. The bill goes next to Gov. Pete Ricketts (R), who didn’t comment Wednesday.
More state commissions are eyeing contribution and other USF changes. The Oklahoma Corporation Commission may vote later this year on a USF administrator recommendation to switch to a connections-based mechanism. The Texas Public Utility Commission asked legislators to consider USF contribution changes next year. Oregon, New Mexico and Nebraska commissions are also reviewing state USF.
California lawmakers tinkered with rival bills on state broadband funding. Eyes are on the clock after the Assembly Communications Committee postponed Tuesday's hearing on SB-1130 to raise the standard to 25 Mbps symmetrical. The delay was due to an unrelated row over the relative volume of bills in the legislature, and it's the second time the committee delayed the hearing. A $100 billion state stimulus bill unveiled Monday included broadband for distance learning.