Telecommunications: small independent telephone corporations: rates: universal service: California High-Cost Fund-A.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for every public utility. Existing law, with certain exceptions, prohibits a public utility from changing any rate, except upon a showing before the commission and a finding by the commission that the new rate is justified. Existing law requires the commission to exercise its regulatory authority to maintain the California High-Cost Fund-A Program (CHCF-A program) to provide universal service rate support to small independent telephone corporations, as defined, in amounts sufficient to meet the revenue requirement, as defined, established by the commission through rate-of-return regulation in furtherance of the state's universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state. This bill would revise the CHCF-A program requirements to provide that the revenue requirement of a small independent telephone corporation includes rate case expenses, as defined. This bill would require the commission to issue its final decision on a general rate case of a small independent telephone corporation no later than 390 days following the corporation's filing of its general rate case application or advice letter initiating the general rate case. If the commission fails to issue a final decision by the 390th day, the bill would authorize the small independent telephone corporation to file a tariff implementing interim rates. The interim rates would generally be effective on the first day of the first test year in the general rate case application, subject to refund and adjustment upward or downward back to the interim rate effective date, consistent with the final rates adopted by the commission. The bill would provide that these provisions may be waived at any time by mutual consent of the executive director of the commission and the small independent telephone corporation.