PUBLIC SERVICE COMMISSION OF WISCONSIN
Review of Universal Service Fund Rules 1-AC-236
ORDER ADOPTING FINAL RULES
The Public Service Commission of Wisconsin adopts an order to repeal PSC 160.02 (4g), (4m ), and (8) 160.031, 160.035, 160.04 (5) and (6), 160.05 (1) (h) to (j) and (L), 160.05 (1) (o) and (r) and (4), 160.062 (1), (2), (5) and (6), 160.071 (1) (d), (2) and (3), 160.073, 160.09 (8), 160.091, 160.092 (4), 160.10, 160.11, 160.14, 160.15, 160.18 (10) and 161.05 (4); to renumber PSC 160.02 (1g), (1m), (3), (5) and (9) to (11), 160.05 (1) (s), 160.071 (1) (b) (intro.) 2., 3., (m) and 160.115 (6) (c); to renumber and amend 160.01 (5), 160.02 (2), (6) to (8), (12) and (13), 160.03 (1), 160.04 (1), 160.06 (1), (4) and (5), 160.062 (3), 160.07 (title), (1) and (2), 160.071 (1) (title), (a), (b) 1., 4. to 6., (c), (e) to (L), (n), (6) (b), 160.09 (1), 160.092 (1), 160.125 (2) (c) 1., and 160.18 (9) (b); to amend 160.01 (1), (2) (b) and (4), 160.05 (intro.), (1) (intro.), (a), (c), (d), (n), (p), (2) and (3), 160.06 (2) and (3), 160.062 (7), 160.063 (1) to (4), 160.071 (title), (4) to (6), 160.08, 160.09 (2), (4) to (7) and (9), 160.092 (2) and (3), 160.115 (1) (a), (b) 1. and 2., (2) (intro.), (b), (c), (3), (4) (a), (5) (intro.), (b), (c) and (g), (6) (a) (intro.), 4., (b) and (6), 160.125 (1) (title), (a), (b), (e), (2) (a) and (b), (c) 2., 3., 5. and (d) to (f), 160.16 (1) and (2), 160.17 (1) (c), (2) and (4), 160.18 (4), (6), and (9) (a), 160.181, 160.19 (1), and (2) and (4) (b); repeal and re-create 160.03 (2), 160.04 (title) and (2) to (4), 160.06 (5), 160.061, 160.062 (4), 160.09 (3), and 160.13; and create PSC 160.01 (5) (a) to (c), 160.02 (2) to (4) and (6), (9), (11) to (16), (18), (21), (22), (25), (26), (28), and (31), 160.03 (1), 160.04 (1) (a) 1. to 5., (b) and (c), 160.05 (1) (s) and (t) and (6) to (12), 160.06 (1) (b), (c), and (4) (a), 160.062 (1) to (2r), (3) (title) and (b), (5), (6), (7) (title) and (8), 160.063 (3m), 160.071 (1m) (a), and (L) 2. and 3., (6) (b), (6m) (b) and (c) and (7), 160.09 (1), (1r), 160.092 (1) (intro.), and (b) and (c), 160.115 (6) (c), 160.125 (2) (c) 1. and 160.18 (9) (b) 2. and 3., regarding the provisions and administration of the universal service fund.
REPORT TO THE LEGISLATURE
The Report to the Legislature is set forth as Attachment A.
FISCAL ESTIMATE
The Economic Impact Analysis for this rulemaking is included as Attachment A2.
FINAL REGULATORY FLEXIBILITY ANALYSIS
Existing Universal Service Fund (USF) rules may have an effect on small telecommunications utilities, which are small businesses under s. 196.216, Stats., for the purposes of s. 227.114, Stats. These small telecommunications utilities, like other telecommunications providers (both large and small), may have obligations under the USF, including an obligation for payments to the USF. These rules should have no significant impact on small businesses. The commission already has established, in s. PSC 160.18(1), an exemption from fund assessments to protect entry by and continued operation of small telecommunications providers as directed by statutory objectives. In s. PSC 160.01(2)(b), the existing rules allow the commission to give individual consideration to unusual situations and to adopt different requirements for particular telecommunications providers. Small businesses can request that the commission provide an exception to a rule requirement. Finally, Eligible Telecommunications Carrier status, which is the trigger for most USF obligations, is voluntary. EFFECTIVE DATE
These rules shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats. CONTACT PERSON
Questions regarding this matter, including small business questions, should be directed to Jeff Richter, USF Director, at (608) 267-9624 or jeff.richter@wisconsin.gov. Media questions should be directed to Elise Nelson, Communications Director at (608) 267-3589. Hearing or speech‑impaired individuals may also use the commission’s TTY number, if calling from Wisconsin (800) 251‑8345, if calling from outside Wisconsin (608) 267-1479. The commission does not discriminate on the basis of disability in the provision of programs, services, or employment. Any person with a disability who needs accommodations to participate in this proceeding or who needs to obtain this document in a different format should contact the docket coordinator listed above.
REPORT TO THE LEGISLATURE
A. TEXT OF THE RULE
The text of the rule is included as Attachment A1.
B. PLAIN LANGUAGE ANALYSIS
1. Statutory Authority and Explanation of Authority
Section 227.11 authorizes agencies to promulgate administrative rules. Section 196.02 (1) authorizes the commission to do all things necessary and convenient to its jurisdiction. Section 196.02 (3) grants the commission specific authority to promulgate rules. Sections 196.218 (5) (b) and (5m) authorize the commission’s creation and revision of these specific rules. Statutes Interpreted
This rule interprets s. 196.218, Stats. Related Statutes or Rules
None.
2. Brief Summary of Proposed Rules
The objective of this rulemaking is to revise the existing chapter PSC 160, Universal Service Support Funding and Programs. These rules were originally created in 1996, and then revised in 2000. Minor changes are also made to ch. PSC 161. In the proposed rule, the commission revises existing Universal Service programs that provide access to telecommunications service to all Wisconsin customers regardless of geographic location, income or disability. In this same chapter are revisions to the mechanism for funding those programs and for administering the Universal Service Fund (USF). Any changes made as a result of this rulemaking are intended to continue and enhance support for these general purposes stated in the statutes.
A prior USF rulemaking was withdrawn by act of law on December 31, 2010. That draft of the rules included several issues that were contentious, and time for promulgation expired. This rulemaking is primarily intended to promulgate those portions of the previously proposed rules that are less contentious, such as program-specific updates. While these proposed rules were being drafted, changes occurred on both the state and federal levels that required additional revisions to these rules. For example, 2011 Wisconsin Act 22 changed the statutory definition of “essential telecommunications services.” Additionally, the federal Lifeline and Link-up programs were changed dramatically. As a result, these proposed rules were also crafted to make changes necessitated by state and federal law changes. PSC 160.02 (2), (3) and (4)
These are definitions of call blocking, call control and call limitation. The changes provide consistency with applicable federal language and usage.
PSC 160.02 (9), (12), (14) and (22)
The commission now recognizes three different types of eligible telecommunications carrier (ETC). A definition of each type has been added.
PSC 160.03
This section on essential telecommunications services has been extensively rewritten to reflect changes made by 2011 Wisconsin Act 22. The prior requirements for and definition of essential services have been replaced with those in the federal law, as required by 2015 Wisconsin Act 55. PSC 160.031
PSC 160.035
PSC 160.04
The section on call limitation (formerly toll blocking) has been rewritten to bring it more into line with current federal rules and definitions.
PSC 160.05
This section lists programs that can be funded through the Universal Service Fund (USF). The programs themselves are described elsewhere in the rules. Likewise, a description and explanation of changes appear in the program-specific parts of this analysis.
PSC 160.06
This section addresses eligibility requirements for low-income USF programs. Language is added throughout section PSC 160.06 to address the different types of Eligible Telecommunications Carriers (ETCs) now recognized by the commission. Subsection (1) requires all subject providers to use the state verification databases, as required under federal rules. Subsection (1) (c) addresses situations in which the state databases cannot be used for verification. Subsection PSC 160.06 (2) requires providers to re‑verify the eligibility of all lifeline recipients annually. This requirement has existed in state rules for years and has now been adopted by the Federal Communications Commission (FCC) as well. PSC 160.061
The FCC has eliminated the federal link-up program (that waives certain service connection charges for low-income customers) for all but tribal lands. This rule change eliminates the existing statewide link-up program. More limited programs targeted at specific customer groups, including those on tribal lands, who show a clear need for support may be authorized under s. PSC 160.125
PSC 160.062 (1)
Customers are eligible for only one lifeline credit at a time under federal law. The commission and FCC have both needed to take action to prevent lifeline fraud in this area. The draft rule specifically states that a customer may not request more than one lifeline credit, and requires the providers to take steps to prevent customers from receiving multiple lifeline credits.
PSC 160.062 (1r)
ETCs apply the lifeline adjustment to an eligible customer’s bill, regardless of whether that customer is purchasing service on a standalone basis or as part of a bundle. The adjustment is made to whatever service or bundle the customer purchases.
PSC 160.062 (2), (2g) and (2r)
The lifeline base rate is defined as the rate for essential services, when offered on a standalone basis, or a fixed $25, when essential service is only offered as part of a service bundle. The lifeline discount is tied to these rates, and is either $10 or an amount necessary to reduce the lifeline base rate to $15 (subject to a maximum contribution from the state of $9.25). Another provision allows for automatic adjustment of lifeline benefits, provided they do not put the state universal service fund at risk. Where federal changes could require additional state payments, the commission would have to consider the impact of those changes before authorizing the resultant state USF expenditures. The draft rules also include a section addressing prepaid wireless service, which offers free minutes of use in lieu of a discount to monthly rates, since prepaid service has no monthly rates. Subsection (2r) contains language for lifeline on tribal lands to keep that portion consistent with the federal program.
PSC 160.062 (4m)
This lifeline provision clarifies the process for a provider to follow if it determines that an existing customer is no longer eligible for lifeline discounts.
