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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 26SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
SUBCHAPTER PTEXAS UNIVERSAL SERVICE FUND
RULE §26.412Lifeline Service Program

  (1) Lifeline discount amounts. All Lifeline providers shall provide the following Lifeline discounts to all eligible Lifeline customers so long as the total of all the Lifeline discounts combined does not result in a rate of less than zero for a customer's basic local service. Should the total of all Lifeline discounts result in a rate of less than zero on a customer's bill, the Lifeline provider shall only provide a Lifeline discount amount up to the price a customer is charged for basic local service.

    (A) Federally approved reduction--Up to the federal monthly basic Lifeline support amount outlined in 47 C.F.R. 54.403.

    (B) Additional federal Lifeline reduction for an eligible customer who is a resident of Tribal lands, as defined in 47 C.F.R. §54.400, up to the federal monthly Lifeline amount outlined in 47 C.F.R. §54.403.

    (C) State reduction--A state-approved reduction of up to a maximum of $3.50 in the monthly amount of intrastate charges.

    (D) Texas High Cost Universal Service Plan (THCUSP) Incumbent Local Exchange Carrier (ILEC) Area Discount--

      (i) All Lifeline providers operating in the service areas of Southwestern Bell Telephone Company d/b/a AT&T Texas, GTE Southwest Incorporated d/b/a Verizon Southwest, Central Telephone Company d/b/a CenturyLink, United Telephone Company d/b/a CenturyLink, and Windstream Communications Southwest, or their successors, (collectively, THCUSP ILECs) shall provide a reduction (THCUSP ILEC Area Discount) up to 25% of any actual increase by a THCUSP ILEC to its residential basic network service rate that occurs in a THCUSP ILEC's Public Utility Regulatory Act (PURA) Chapter 58 regulated exchanges.

      (ii) A THCUSP ILEC Area Discount shall be calculated by a THCUSP ILEC on the basis of the weighted average of the Rate Increase(s). The calculation of the weighted average of the Rate Increase(s) shall use a denominator that is the sum of all PURA Chapter 58 regulated residential lines with Rate Increases, and shall use a numerator that is the sum of each product that results from multiplying the number of PURA Chapter 58 regulated residential lines affected by each discrete Rate Increase times the corresponding Rate Increase. The weighted average of the Rate Increase(s) calculation shall be included in the tariff filing made to implement the THCUSP ILEC Area Discount.

      (iii) A THCUSP ILEC Area Discount shall be provided to all qualifying Lifeline customers who are located in the service area of the THCUSP ILEC that has implemented the corresponding Rate Increase.

      (iv) A THCUSP ILEC shall file with the commission tariffs implementing a THCUSP ILEC Area Discount at the time it files for a rate increase. The effective date of a THCUSP ILEC Area Discount shall have the same effective date as the corresponding rate increase.

      (v) A competitive local exchange carrier (CLEC) Lifeline provider operating in the service area of a THCUSP ILEC shall file with the commission tariffs or price lists implementing the appropriate THCUSP ILEC Area Discount.

    (E) Small and Rural Incumbent Local Exchange Company Universal Service Plan (SRILEC USP) Area Discount--

      (i) Beginning January 1, 2014, all Lifeline providers operating in the service areas of those incumbent local exchange carriers that participate in the SRILEC USP shall provide an increase in the Lifeline service discount up to 25% of any actual increase by a SRILEC USP ILEC to its residential basic network service rate that occurs in a SRILEC USP ILEC's regulated exchanges and is consistent with §26.404 of this title (relating to Small and Rural Incumbent Local Exchange Company (ILEC) Universal Service Plan).

      (ii) A SRILEC shall file with the commission tariffs implementing a SRILEC USP Area Discount at the time it files for a rate increase. The effective date of a SRILEC USP Area Discount shall have the same effective date as the corresponding rate increase

      (iii) A CLEC Lifeline provider operating in the service area of a SRILEC shall file with the commission tariffs or price lists implementing the appropriate SRILEC USP Area Discount.

  (2) Lifeline support amounts. The following Lifeline providers shall receive support amounts for the Lifeline discounts outlined in paragraph (1) of this subsection. Note: A Lifeline provider shall not receive a support amount greater than the amount it provided to each qualifying Lifeline customer.

    (A) ETC--Pursuant to 47 C.F.R. §54.403, the federal Lifeline support an ETC shall receive is:

      (i) Federally approved support amount pursuant to 47 C.F.R. §54.403.

      (ii) Additional federal Lifeline reduction for an eligible resident of Tribal lands, as defined in 47 C.F.R. §54.400--up to the federal monthly Lifeline amount outlined in 47 C.F.R. §54.403.

    (B) ETP--

      (i) State support of up to a maximum of $3.50.

      (ii) THCUSP ILEC Area support--Amount calculated pursuant to paragraph (1)(D) of this subsection.

      (iii) SRILEC USP support--Amount calculated pursuant to paragraph (1)(E) of this subsection.

      (iv) If an ETP has been designated as an ETC, then the certificated provider shall also receive support amounts prescribed by subparagraph (A) of this paragraph.

    (C) Resale ETP--A resale ETP shall receive Lifeline Service support up to or equal to the following state and federal amounts as long as the Lifeline Service was not purchased as a wholesale offering from the ILEC. Any Lifeline Service purchased as a wholesale offering from the ILEC includes the Lifeline Discount and is therefore not eligible to receive an additional discount. The TUSF, regardless of whether the Lifeline Service Discount is state or federally mandated, will provide the Lifeline Service support so long as the total of all the Lifeline discounts combined does not result in a rate of less than zero for a customer's basic local service. Should the total of all Lifeline discounts result in a rate of less than zero on a customer's bill, the Lifeline provider shall only provide a Lifeline discount amount up to the price a customer is charged for basic local service.

      (i) Federally approved support amount pursuant to 47 C.F.R. §54.403.

      (ii) Additional federal Lifeline reduction for an eligible resident of Tribal lands, as defined in 47 C.F.R. §54.400--up to the federal monthly Lifeline amount outlined in 47 C.F.R. §54.403;

      (iii) State support of up to a maximum of $3.50.

      (iv) THCUSP Area support--Amount calculated pursuant to paragraph (1)(D) of this subsection.

      (v) SRILEC USP support--Amount calculated pursuant to paragraph (1)(E) of this subsection.

    (D) Non-ETP/ETC--A Non-ETP/ETC is not eligible to receive any state or federal Lifeline support.

(g) Obligations of the customer and the Lifeline provider.

  (1) Obligations of the customer.

    (A) Customers who meet the low-income requirement for qualification but do not receive benefits under the programs listed in subsection (d) of this section may provide the LIDA with self-enrollment for Lifeline benefits.

    (B) Customers receiving benefits under the programs listed in subsection (d) of this section and who have telephone service will be subject to the Lifeline automatic enrollment procedures as provided by the LIDA unless they provide the LIDA with a request to be excluded from Lifeline Service.

    (C) Customers receiving benefits under the programs listed in subsection (d) of this section and who do not have telephone service must initiate a request for service from a participating telecommunications carrier providing local service in their area.

    (D) The LIDA shall provide a self-enrollment form by direct mail at the customer's request.

    (E) Opportunity for contest.

      (i) A customer who believes that their self-enrollment application has been erroneously denied may request in writing that LIDA review the application, and the customer may submit additional information as proof of eligibility.

      (ii) A customer who is dissatisfied with LIDA's action following a request for review under clause (i) of this subparagraph may request in writing that an informal hearing be conducted by the commission staff.

      (iii) A customer dissatisfied with the determination after an informal hearing under clause (ii) of this subparagraph may file a formal complaint pursuant to §22.242(e) of this title (relating to Complaints).

  (2) Obligations of Lifeline providers.

    (A) A Lifeline provider shall only provide Lifeline Service to all eligible customers identified by the LIDA within its service area in accordance with this section.

Cont'd...

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