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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 §26.403Texas High Cost Universal Service Plan (THCUSP)

acceleration obligate the ETP to reduce its THCUSP support in excess of the total reduction obligation initially calculated under paragraph (3) of this subsection.

  (3) Annual reductions to THCUSP base support and per-line support recalculation. As part of the contested case proceeding referenced in paragraph (2) of this subsection, each ILEC ETP must, using line counts as of the end of the month preceding the effective date of this rule, calculate the amount of additional revenue that would result if the ILEC ETP were to charge the reasonable rate for basic local telecommunications service to all residential customers for those services where the price, or imputed price, are below the reasonable rate. Lines in exchanges for which an application for deregulation is pending as of June 1, 2012 must not be included in this calculation. If the application for deregulation for any such exchanges subsequently is denied by the commission, the ILEC ETP must, within 20 days of the final order denying such application, submit revised calculations including the lines in those exchanges for which the application for deregulation was denied. Without regard to whether an ILEC ETP increases its rates for basic local telecommunications service to the reasonable rate, the ILEC ETP's annual base support must be reduced on January 1 of each year for four consecutive years, with the first reduction occurring on January 1, 2013. The ETP's annual base support amount must be reduced by 25% of the additional revenue calculated in accordance with this paragraph in each year of the transition period. This reduction must be accomplished by reducing support for each wire center served by the ETP proportionally.

  (4) Portability. The support amounts established in accordance with this section are applicable to all ETPs and are portable with the customer.

  (5) Limitation on availability of THCUSP support.

    (A) THCUSP support must not be provided in a wire center in a deregulated market that has a population of at least 30,000.

    (B) An ILEC may receive support from the THCUSP for a wire center in a deregulated market that has a population of less than 30,000 only if the ILEC demonstrates to the commission that the ILEC needs the support to provide basic local telecommunications service at reasonable rates in the affected market. An ILEC may use evidence from outside the wire center at issue to make the demonstration. An ILEC may make the demonstration for a wire center before or after submitting a petition to deregulate the market in which the wire center is located.

  (6) Total Support Reduction Plan. Within 10 days of the effective date of this section, an ILEC may elect to participate in a Total Support Reduction Plan (TSRP) as prescribed in this subsection, by filing a notification of such participation with the commission. The TSRP would serve as an alternative to the reduction plan prescribed in paragraph (3) of this subsection. The TSRP will be implemented as follows:

    (A) For an ILEC making this election, the ILEC must reduce its THCUSP funding in accordance with paragraph (3) of this subsection with the exception that THCUSP reductions due to exchange deregulation may be credited against the electing ILEC's annual reduction obligation in the calendar year immediately following such deregulation.

    (B) In no event will an electing ILEC seek or receive THCUSP funding after January 1, 2017 even if the electing ILEC would otherwise be entitled to such funding as of this date.

(f) Support Reduction. Subject to the provisions of §26.405(f)(3) of this title (relating to Financial Need for Continued Support), the commission will adjust the support to be made available from the THCUSP according to the following criteria.

  (1) For each ILEC that is not electing under subsection (e)(6) of this section and that served greater than 31,000 access lines in this state on September 1, 2022, or a company or cooperative that is a successor to such an ILEC, the monthly per-line support that the ILEC is eligible to receive for each exchange on December 31, 2023 from the THCUSP is reduced:

    (A) on January 1, 2024, to 75 percent of the level of support the ILEC was eligible to receive on December 31, 2023;

    (B) on January 1, 2025, to 50 percent of the level of support the ILEC was eligible to receive on December 31, 2023;

    (C) on January 1, 2026, to 25 percent of the level of support the ILEC was eligible to receive on December 31, 2023; and

    (D) on January 1, 2027, to zero percent of the level of support the ILEC was eligible to receive on December 31, 2023.

  (2) An ILEC subject to this subsection may file a petition to show financial need for continued support, in accordance with§26.405(f)(1) of this title, before January 1, 2027.

(g) Reporting requirements. An ETP that receives support in accordance with this section must report the following information:

  (1) Monthly reporting requirement. An ETP must report the following to the TUSF administrator on a monthly basis:

    (A) the total number of eligible lines for which the ETP seeks TUSF support; and

    (B) a calculation of the base support computed in accordance with the requirements of subsection (d) of this section.

  (2) Quarterly filing requirements. An ETP must file quarterly reports with the commission showing actual THCUSP receipts by study area.

    (A) Reports must be filed electronically in the project number assigned by the commission's central records office no later than 3:00 p.m. on the 30th calendar day after the end of the calendar quarter reporting period.

    (B) Each ETP's reports must be filed on an individual company basis; reports that aggregate the disbursements received by two or more ETPs will not be accepted as complying with the requirements of this paragraph.

    (C) All reports filed in accordance with paragraph (3) of this subsection must be publicly available.

  (3) Annual reporting requirements. An ETP must report annually to the TUSF administrator that it is qualified to participate in the THCUSP.

  (4) Other reporting requirements. An ETP must report any other information that is required by the commission or the TUSF administrator, including any information necessary to assess contributions and disbursements from the TUSF.


Source Note: The provisions of this §26.403 adopted to be effective July 8, 2012, 37 TexReg 5120; amended to be effective December 21, 2014, 39 TexReg 9976; amended to be effective September 14, 2016, 41 TexReg 7076; amended to be effective December 21, 2023, 48 TexReg 7524

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