DR 97-214
IMPLEMENTATION OF THE TELECOMMUNICATIONS ACT OF 1996
Order Nisi Establishing a Lifeline Program for Low Income
Customers Pursuant to FCC Order 97-157
O R D E R N O. 22,748
October 7, 1997
I. PROCEDURAL BACKGROUND
Pursuant to Order No. 97-157, issued May 8, 1997 in CC
Docket 96-45 (Universal Service Order), the Federal
Communications Commission (FCC) requires telecommunications
carriers to meet certain requirements, including, inter alia, the
provision of the federally funded Lifeline program (Lifeline),
in order to receive federal universal service funds. The
Universal Service Order directs state commissions to designate
qualifying carriers as Eligible Telecommunications Carriers.
Because New Hampshire carriers have not been required to provide
Lifeline in the past, this docket is commenced to declare the New
Hampshire Public Utilities Commission's intent to maximize the
federal support available for Lifeline customers and to establish
the method for identifying qualified Lifeline customers, thus
helping New Hampshire carriers to file appropriate Lifeline
tariffs which will meet that portion of the ETC designation
process. Completion of the ETC designation process is separate
and subsequent to the filing of Lifeline tariffs.
II. DESCRIPTION OF LIFELINE
Lifeline provides federal funds to reduce residential
end-user Subscriber Line Charges. Effective January 1, 1998, the
FCC will provide a $3.50 credit to the Subscriber Line Charge and
an additional $1.75 per line per month. Federal funding
eligibility is contingent upon state commission approval of a
tariff reducing the basic local exchange rate by $1.75, for a
total Lifeline discount of $5.25 per line per month for an
eligible customer. No state matching funds are required in order
to obtain the federal funding of $5.25.
States may provide additional state funds to support an
even greater Lifeline discount. The federal government will
provide an additional contribution of no more than $1.75 if the
state provides funding of $3.50, for a total Lifeline discount of
$10.50 ($7.00 in federal contributions, $3.50 in state
contributions).
New Hampshire, however, does not currently fund low
income telecommunications customers. In New Hampshire, Bell
Atlantic offers a low use measured local service for $9.61 per
month. Independent Telephone Companies' residential rates range
between $6.92 and $15.78 Lifeline would discount each of these
rates for eligible customers by $5.25.
Given the low basic exchange rates available in New
Hampshire, we believe a $5.25 Lifeline discount is sufficient,
but we will defer to the judgment of the Legislature whether a
greater discount should be provided. Such a program would,
presumably, be funded through a surcharge on all New Hampshire
telecommunications customers. The recently formed Joint
Oversight Committee on Telecommunications might be the
appropriate body to initially consider the question.
III. CUSTOMER QUALIFICATION FOR LIFELINE
Consistent with FCC orders, the Commission adopts a
"means-tested" eligibility standard for identifying qualified
Lifeline recipients. In order to receive Lifeline, a consumer
must be a current recipient of one of the following low income
assistance programs; Medicaid, food stamps, Supplementary
Security Income, federal public housing assistance, or Low Income
Home Energy Assistance Program. These programs are those
required by 47 C.F.R. 54.409(b) as qualification criteria in
states such as New Hampshire, that do not provide state Lifeline
support.
Carriers are required to verify a customer's
participation in one of the above-mentioned low income assistance
programs. As verification, the carrier may use a document,
signed by the customer and certifying under penalty of perjury
that the customer is in fact receiving benefits from at least
one of the assistance programs identified above. The document
must contain the names of the low income program(s) from which
the customer receives assistance, as well as an agreement by the
customer to notify the carrier when the customer ceases to
receive assistance. Carriers must keep the verification document
on file.
IV. REVISION OF CUSTOMER QUALIFICATION FOR LINK-UP
Link-Up is an assistance program which provides a
reduction in the carrier's customary charge for commencing
service at a qualifying low-income consumer's principal place of
residence. New Hampshire currently participates in the Link-Up
program and has established qualification criteria for
determining if a consumer may receive Link-Up. In order to
receive Link-Up, a New Hampshire consumer must be a current
recipient of one of a number of low income assistance programs.
Now, as a result of regulations adopted by the FCC in Order
97-157, the qualification criteria must expand to include
additional programs. Pursuant to 47 C.F.R. 54.415(a), Link-Up
qualification criteria in states that provide state Lifeline
service, which New Hampshire will forthwith, shall be the same as
the criteria set forth in 54.409(b), i.e., participation in one
of the programs listed above in order to receive Lifeline. New
Hampshire's Link-Up criteria currently do not include three of
the programs. Therefore, by this order we will expand the
Link-Up qualification criteria to include the following
additional programs; Medicaid, federal public housing assistance,
and the Low-Income Home Energy Assistance Program.
Based upon the foregoing, it is hereby
ORDERED NISI, that New Hampshire telecommunications
carriers which wish to obtain Eligible Telecommunications Carrier
designation shall file with the Commission Lifeline tariffs which
comply with the customer qualification methodology described
herein for Lifeline; and it is
FURTHER ORDERED, that the above-mentioned tariffs shall
contain the appropriate rate reductions by which New Hampshire
will comply with FCC Order No. 97-157;
FURTHER ORDERED, that telecommunications carriers which
offer Link-Up shall file with the Commission tariffs which comply
with the customer qualification criteria described herein for
Link-Up; and it is
FURTHER ORDERED, that pursuant to N.H. Admin. Rules,
Put 1601.05, the Executive Director and Secretary of the
Commission shall cause a copy of this Order Nisi to be published
once in a statewide newspaper of general circulation, such
publication to be no later than October 14, 1997; and it is
FURTHER ORDERED, that all persons interested in
responding to this Order Nisi shall submit their comments or file
a written request for a hearing on this matter before the
Commission no later than October 28, 1997; and it is
FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so no
later than November 4, 1997; and it is
FURTHER ORDERED, that this Order Nisi shall be
effective 30 days from its issuance, November 6, 1997, unless the
Commission provides otherwise in a supplemental order issued
prior to the effective date.
By order of the Public Utilities Commission of New
Hampshire this seventh day of October, 1997.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary