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A prior USF rulemaking was withdrawn by act of law on December 31, 2010.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.
PSC 160.062 (5m)
This section requires providers to file requests for compensation for lifeline credits in a timely manner. The provision strikes a balance: allowing providers sufficient time to file requests for compensation while not requiring the USF to budget for potential reimbursement claims filed years after occurrence.
PSC 160.063
The changes to this section clarify application procedures and provide flexibility for low-income outreach programs.
PSC 160.07
The provisions on special needs certification are moved into s. PSC 160.071. PSC 160.071
This section addresses service and equipment for individuals with special needs and includes the Telecommunications Equipment Purchase Program (TEPP). Changes in the amount of reimbursement reflect changes to the costs and technologies used to provide the equipment necessary to allow customers with disabilities to use telecommunications services. Subsection (1m) (c) clarifies coverage of TEPP co-payments for low-income customers. Subsection (1m) (j) allows the commission to suspend vendors for cause and stops payments to suspended vendors. Subsection (1m) (L) 2. allows the program to cover the cost of computing equipment, if that is both required and the most cost-effective means of providing the assistance necessary for the customer to utilize telecommunications services. Sections (4), (5) and (6) continue to require providers to waive fees for operator service, directory assistance and custom calling services, when required by an individual with special needs. Providers will receive payment for such waivers. The section which provided for discounted long distance service is obsolete and has been removed. The draft also creates a filing deadline in sub. (7) to prevent providers from claiming reimbursement years after the fact.
PSC 160.073
The commission has ceased funding this public interest payphone program, so the language is being removed.
PSC 160.09
This section addresses high rate assistance credits, a program that reduces what customers are charged for essential services, when those charges exceed a threshold tied to median household income. The majority of the changes to this section clarify the sources of data used to calculate the credits, the various changes to what is considered part of essential service, and program procedures. Subsection 160.09 (1r) states when providers must recalculate those credits, and allows providers to avoid the expenses involved in such changes when those changes would be insignificant. The changes also set forth the procedure for providers to show what portion of a bundled rate covers essential service. The draft also creates a filing deadline in sub. (5) to prevent providers from claiming reimbursement years after the fact.
PSC 160.091
This section on qualifications for high rate assistance credits is eliminated and those requirements have been incorporated into ss. PSC 160.09 and PSC 160.13. PSC 160.092
This section allows the commission to create alternative universal service protection plans on an experimental, temporary basis. The changes clarify the procedure to create such plans and specify what such plans could address. Subsection (4) is eliminated, as the program to which it refers is also being eliminated.
PSC 160.10
Rate Shock Mitigation applied only in cases where commission-ordered retail rate increases would negatively impact customers. Since the commission no longer has authority to order rate changes, the rate shock mitigation program is being eliminated.
PSC 160.11
The TEACH Program made this program for institutional assistance obsolete, so the language is being deleted.
