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PA Bulletin, Doc. No. 01-1722

PROPOSED RULEMAKING

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Advance Notice of Proposed Rulemaking Re: Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications Services in the Commonwealth; Doc. No. L-00950102

[31 Pa.B. 5371]

   Public Meeting held
September 7, 2001

Commissioners Present: Glen R. Thomas, Chairperson; Robert K. Bloom, Vice-Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick

Order

By the Commission:

   This Order closes our Advance Notice of Proposed Rulemaking Re: Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications Services in the Commonwealth, Docket No. L-00950102.

Procedural History

   An Advance Notice of Proposed Rulemaking in Universal Service was adopted at public meeting on March 20, 1995, at L-00950102. The rulemaking was designed to develop procedures for evaluating the evolution of the definition of ''basic universal services'' and it scheduled a public forum to solicit input regarding cost studies and related allocation issues. It was published in the Pennsylvania Bulletin at 25 Pa.B. 1521 with a 30-day comment period that ended on May 22, 1995. Subsequently, a decision was made to hold the rulemaking process in abeyance pending a Global Settlement conference that began in October, 1998 and ended March 1, 1999. With the initiation of the Global Settlement, the issues relating to a Universal Service Fund (USF), including the size and structure of the fund, and its interplay with access and toll rate reduction, rate caps, and rate rebalancing, were bundled with the myriad of other complex telecommunications issues the parties were seeking to resolve. Ultimately, after settlement talks were completed, two joint petitions were filed before this Commission on March 18, 1999, at Docket Nos. P-00991648 and P-00991649. Both of the petitions to resolve these complex telecommunications issues contained proposals for a USF.

   Our Global Order was issued on September 30, 1999, and addressed a multitude of issues presented in the two competing petitions, including the issue of how and when to establish a Pennsylvania USF. The Global Order closed two cases related to the instant rulemaking, specifically, Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications in the Commonwealth, at I-00940035, and Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications Services in the Commonwealth, at L-00950105. However, the instant proceeding at L-00950102 remained open.

   Ultimately, as the Global Order directed, a Pennsylvania USF was established in March, 2000, and it is expected to run through December 31, 2003. Regulations pertaining to the USF were finalized in a separate proceeding at L-00000148 (Rulemaking Re Establishing Universal Service Fund Regulations at 52 Pa. Code §§ 63.161--63.172). The regulations are now codified at 52 Pa. Code §§ 63.161--63.171, et seq.

Discussion:

   The rulemaking at L-00950102 can now be closed because the new USF regulations published and effective June 30, 2001, cover these issues of concern in L-00950102 regarding the evolving definition of what constitutes basic universal services. Section 63.162 of the new regulations states in pertinent part:

Basic universal service--An evolving set of telephone services, as defined by the Commission, which represents the set of services essential for a resident of this Commonwealth to participate in modern society at any point in time.

   In our revised final rulemaking order at L-00000148, entered March 23, 2001, the Commission stated:

We note that we have defined basic universal service as 'an evolving set of telephone services, as defined by the Commission, which represents the set of services essential for a resident of this Commonwealth to participate in modern society at any point in time.' By order entered April 10, 1995, I-00940035 and L-00950102, the Commission has specifically defined basic universal service to consist of the following service components: 1) single party, voice grade, incoming and outgoing access to the public switched network and usage within a local calling area; 2) touch tone capability; 3) annual local directory; 4) access to operator services; 5) access to directory assistance; 6) access to telecommunications relay service and other services designed for persons with disabilities; and 7) access to emergency services.1

31 Pa.B. at 3405.

   Our regulatory definition of ''basic universal service'' expressly recognizes the Commission's authority to revise that definition by order. The definition is currently as set forth in our Order of April 10, 1995, at L-00000148. The regulation at § 63.162 (relating to definitions), provides flexibility for the Commission to revise by future order the definition of what constitutes basic universal service by future orders. Consequently, there is no need at this time for an open rulemaking for developing procedures for evaluating the evolution of the definition nor the need for a public forum to solicit input regarding cost study and related allocation issues; Therefore:

It Is Ordered:

   1.  That the Advance Notice of Proposed Rulemaking Re: Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications Services in the Commonwealth, Docket No. L-00950102, shall be marked closed.

   2.  That a copy of this Order shall be served upon the Pennsylvania Telephone Association, all jurisdictional telecommunications utilities, the Office of Trial Staff, Office of Consumer Advocate, and the Office of Small Business Advocate and published in the Pennsylvania Bulletin.

JAMES J. MCNULTY,   
Secretary

_____

   1In Re: Formal Investigation to Examine and Establish Updated Universal Service Principles and Policies for Telecommunications Services in the Commonwealth: Declaratory Order, Advance Notice of Proposed Rulemaking, Scheduling of Public Forum. Order entered April 10, 1995. Docket Nos. 1-00940035 and L-00950102.

[Pa.B. Doc. No. 01-1722. Filed for public inspection September 21, 2001, 9:00 a.m.]



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