Residential Utility Consumer OfficeProposed Amendment to the Arizona Universal Service Fund
This case involves a generic docket that was opened by the
Arizona Corporation Commission (“ACC” or “Commission”)
in 1997. Recently, the Commission consolidated
this docket with another generic access charge docket
(T-00000D-00-0672) for the purpose of determining
whether or not the subjects of these two dockets need
reform.
The Arizona Universal Service Fund (“AUSF”) was
established to maintain statewide average rates and the
availability of basic telephone service to the greatest
extent reasonably possible. RUCO has taken the position
that the Commission should investigate opportunities to
reduce intrastate access charges (i.e. intercarrier
compensation – what one carrier pays to another) without
substantially increasing basic local exchange rates.
One way the Commission could do this is by restructuring
and expanding the AUSF. If the AUSF is
restructured, it could help ensure that universal
service is advanced and customers are protected against
unreasonable increases in basic local exchange rates.
RUCO has several concerns regarding these generic dockets.
RUCO’s paramount concern is that changes to access rates
for individual carriers requires a finding of fair value
since it will take place outside of a rate case. Another
concern is assurance that there is not to large a shift
of revenues from the access charges to the AUSF
surcharges or residential basic rates.
After the parties to the case filed several rounds of comments, a
“straw man“ proposal was circulated to see if a consensus concerning reform
could be reached. RUCO
filed comments on January 7, 2008.
After the filing of the “straw man” proposal and an issues
matrix, the parties
met on several other occasions and were unable to reach a
resolution. As a result of this impasse, an
evidentiary hearing was scheduled by the Administrative
Law Judge ("ALJ") assigned to the case.
Direct testimony was filed on January 6, 2010. Rejoinder testimony was filed on Friday March 5, 2010.
Per the ALJ's Procedural Order, issued on Tuesday, September 29, 2009, the hearing on the matter began as scheduled at 10:00 a.m. on Tuesday, March 16, 2010 at 400 W. Congress in Tucson and was concluded on Thursday, March 18, 2010 at approximately 7:00 p.m.
Initial closing legal briefs were filed on Friday, July 9, 2010. Reply briefs will be filed on Friday, August 27, 2010.
After the filing of legal briefs, the ALJ will weigh all of the evidence presented during the proceeding (including public comments and correspondence from concerned ratepayers) and will issue a Recommended Opinion and Order ("ROO") that will be voted on by the five sitting ACC Commissioners. The Commissioners can either accept, reject or amend the ROO during a noticed Open Meeting.