Telecommunications: lifeline service rates.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations, as defined. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable. The Moore Universal Telephone Service Act established the Universal Lifeline Telephone Service program in order to provide low-income households with access to affordable basic residential telephone service. Lifeline service rates are required to be set at no more than 50% of either the basic rate for measured service or the basic flat rate service, as applicable, exclusive of federally mandated end user access charges that are available to the residential subscriber. This bill would prohibit the commission from authorizing a telephone corporation to increase rates or charges for local exchange services provided to lifeline telephone service subscribers above those in effect on January 1, 2009, except that rates and charges for local exchange services provided to lifeline telephone service subscribers may be increased in an amount no greater than the maximum annual cost-of-living percentage increase established for the CalWORKs program. The bill would prohibit the commission from authorizing telecommunications carriers using alternative technologies to traditional landline service, including mobile telephony service providers and carriers offering telecommunication using Voice over Internet Protocol, to provide lifeline service only if the commission finds that there will be no reduction in service quality or service capabilities for lifeline service subscribers than those in effect on January 1, 2009, resulting from use of the alternative technologies.