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PENNSYLVANIA

PUBLIC UTILITY COMMISSION

Harrisburg, PA. 17105-3265










Public Meeting held August 17, 2000

Commissioners Present:







John M. Quain, Chairman




Robert K. Bloom, Vice Chairman




Nora Mead Brownell




Aaron Wilson, Jr.




Terrance J. Fitzpatrick







Pennsylvania Public Utility Commission

v.

Bell Atlantic-Pennsylvania, Inc.



Docket Number:

P-00991648

P-00991649



ORDER
BY THE COMMISSION:

On November 30, 1999, Bell Atlantic-Pennsylvania, Inc.1 ("Bell" or "Company") filed a revision to Bell's Local Tariff-Telephone Pa. P.U.C. No. 1 to become effective January 28, 2000, which was voluntarily postponed until August 25, 2000. This filing establishes a new residential service called Lifeline 150 and changes the eligibility requirements for Link Up America, and is made in compliance with the Commission's Opinion and Order entered September 30, 1999 at Docket Nos. P-00991648 and P-00991649 ("Global Order").


Background
Bell's current Lifeline plan established at Docket No.

R-00974153 on November 21, 1997, modified Bell's original Lifeline plan approved at Docket Nos. P-00930715 and P-00950958, August 4, 1995. The instant filing continues Bell's current Lifeline plan ("Lifeline 100"), and introduces the Lifeline 150 plan, in compliance with the Global Order.


Bell's Lifeline 100 plan is available to eligible customers whose income level is at or below 100% of the federal poverty level. Under this plan, Bell provides a $9.852 total offset to its Lifeline service subscribers, and provides a total restriction on optional vertical services, except those provided in Bell's existing Lifeline tariff.
Bell's Lifeline 100 is funded by the Coin Paid Customer Dialed (CPCD) Surcharge. In accordance with Bell's original Lifeline plan, the CPCD would be the sole funding source for Bell's Lifeline program "until such time as the penetration rate exceeds 125,000 Lifeline subscribers or until the year 2000 (whichever comes sooner)." Bell's most recent Annual Lifeline Tracking Report shows that there was a reserve of almost $1.5 million as of April 1999. The Global Order designates that Bell will fund its share of any Lifeline contribution above the federal level from the Lifeline reserve, and from the first year value of the 1998 Price Change Opportunity (1998 PCO), and other funding sources as necessary.
Bell's Lifeline 150 Service is available to eligible customers whose income is at or below 150% of the federal poverty level, and are enrolled in Medicaid; food stamps; Supplemental Security Income (SSI); federal public housing assistance; or Low Income Home energy Assistance Program (LIHEAP). This expanded plan provides for the federal universal support offset, currently $6.10 3, and one (1) optional vertical service 4, in addition to those currently available in Bell's Lifeline tariff, at the applicable tariffed rate, to Bell's Lifeline 150 Service subscribers.
The Global Order established the eligibility criteria for enrollment in the Lifeline 150 program. The intent in offering an additional option (the Lifeline 150 Service) to Bell's tariff is to broaden eligibility requirements, remove obstacles to participation, make the program available to all of Bell's eligible customers and minimize the costs involved in administering the program.
Bell currently submits an Annual Lifeline Tracking Report on the status of Lifeline, Link Up and the Universal Telephone Assistance Program to the Commission on June 30. We believe there is a need to revise these reports to make them more comprehensive by providing, at a minimum, the following information: status of the Lifeline, Link Up and UTAP; telephone penetration rates on county and state levels segmented by income, rental/ownership of residence and other socio-economic demographics as used in the FCC/Joint Board Lifeline and Link Up Reports; and other such information as the parties may prescribe. Bell will then provide such a report to the Commission and other interested parties (including OCA, OSBA, City of Philadelphia, PULP and the Council on Utility Choice).
OCA Exceptions
On May 12, 2000, the Office of Consumer Advocate ("OCA") filed Exceptions to Bell Atlantic-Pennsylvania, Inc.'s and The Pennsylvania Telephone Association's Lifeline Compliance Tariffs (Exceptions) in the Global Proceeding. We hereby incorporate by reference, and take administrative notice of the Exceptions filed by the OCA. The OCA's Exception states: "The Lifeline Tariffs Do Not Comply With The Global Order, Because They Require Consumers To Participate in Public Assistance Programs in Order To Qualify For Lifeline Services."
The OCA contends that it was not the Commission's intent that a consumer had to be enrolled in a government assistance program and also have an income at or below 150% of the federal poverty level to qualify for Lifeline 150 services. The OCA notes that the current Lifeline eligibility criteria (prior to the Global Order) allows that a consumer can qualify for Lifeline services based on either public assistance enrollment or on an income level of at or below 100% of the federal poverty level. The OCA interprets the "and" in the Global Order eligibility criteria to state that the consumer is enrolled in a government assistance program, "and" the consumer falls within the income guidelines, as two separate criteria, not as an additive, (i.e., consumers below 150% of poverty are eligible, and consumers participating in certain public assistance programs are eligible.) The OCA requests the PUC to rule that Bell's Lifeline 150 tariff is not in compliance with the Global Order.
On June 12, 2000, Bell filed its Reply to the OCA's Exceptions, recommending that the Exceptions be denied. In its reply comments, Bell cited FCC eligibility criteria, and stated that their Lifeline 150 filing is in compliance with both the Global Order and 47 C.F.R.§54.409(b), which states that "to qualify to receive Lifeline in states that do not provide Lifeline support, a customer must participate in one of the following programs: Medicaid, food stamps, SSI, federal public housing assistance or LIHEAP." Bell explained that the Commission clearly intended that federal funds would be the only funding source for the Lifeline 150 services. Bell stated that their Lifeline 150 tariff complies with the Global Order, and that the OCA's Exceptions must be denied.
After reviewing the OCA's Exceptions and Bell's reply comments, the Commission must remind the OCA that a compliance filing is not the proper forum for seeking modifications which should have been the subject of litigation in the Global Order proceedings. Also, we have no indications that reconsideration or clarification has been sought by the OCA concerning its position. Therefore, the Exceptions of the OCA are beyond the scope of compliance and will not be considered. We find Bell's Lifeline 150 tariff in compliance with the Global Order.
On June 16, 2000, the FCC approved the application of Bell and GTE Corporation ("GTE") for the transfer of control of certain licenses and lines from GTE to Bell5 (Bell/GTE Merger Order). Pursuant to the conditions the FCC adopted in approving the merger agreement, Bell offered to file a tariff for an enhanced lifeline plan which would be for a new stand-alone lifeline plan comparable to the Ohio USA lifeline plan set forth in Ameritech's Ohio Alternative Regulation Plan, Case No. 93-487-TP-ALT. Under the FCC-approved merger condition, the Commission is under no obligation to accept Bell's offer. We have reviewed the Ohio USA Lifeline plan and believe it would be premature to adopt this plan given that we have just revised and expanded Lifeline to create consistency throughout Pennsylvania and to broaden participation. It would be administratively burdensome to add another program at this time. Accordingly, we determine that it is not accepted.


The Filing

On November 30, 1999, Bell filed a tariff revision to its Telephone Tariff-Pa. P.U.C. No. 1, Local General Tariff, in compliance with the Global Order, to become effective January 28, 2000, and voluntarily postponed until August 25, 2000. This tariff revision establishes a new residential service called Lifeline 150 Service and changes the eligibility requirements for Link Up America to match the requirements for Lifeline 150 in compliance with 47 C.F.R. §54.415.


Lifeline 150 Service will offer qualifying residence customers new service options and a new monthly benefit of $6.10 ($4.35 of the FCC Subscriber Line Charge, $1.00 of the applicable Residence Dial Tone Line with Touch Tone and $0.75 of the customer's Local Usage Option). The new Lifeline 150 Service changes and customer options are as follows: 1) the minimum Lifeline 150 Service will consist of the applicable Residence Dial Tone Line with Touch Tone and the Local Area Standard Usage Option ($2.60) with a monthly local usage allowance of $4.00; 2) Lifeline 150 customers will be able to choose the Local Area Unlimited Usage Option in place of the Local Area Standard Option; 3) Voluntary Toll Restriction, at the customer's option, will be installed without charge for Lifeline 150 Service customers; 4) Lifeline 150 Service customers may choose one optional service. Also, the requirements for Link Up America eligibility are being changed to reflect the same eligibility requirements as Lifeline 150 to be in compliance with 47 C.F.R. §54.415.
In order to qualify for Lifeline 150 Service, an applicant must have an income at or below 150% of the federal poverty level, and must be enrolled in one of the following Pennsylvania programs:

Temporary Assistance for Needy Families (TANF)

General Assistance (GA)

Supplemental Security Income (SSI)

Medicaid

Food Stamps

Low Income Home Energy Assistance Program (LIHEAP)

State Blind Pension

Federal Public Housing Assistance
Bell's Link Up America program has been revised to reflect the eligibility criteria as established for the Lifeline 150 Service in addition to the existing eligibility criteria, to be in compliance with 47 C.F.R. 54.415.
To ensure the success of the Lifeline programs, it is necessary to inform as many eligible individuals or families of the availability of Lifeline services. To meet this objective, Bell will publicize the availability of Lifeline services through annual bill inserts, bill messages, bilingual customer brochures and information in the Customer Guide pages of its telephone directories. Prior to releasing these notices, Bell will submit the forms of notice to the Commission's Bureau of Consumer Services for review and approval.
Before concluding, we believe it is important to note that by expanding the Lifeline program eligibility requirements to include customers with an income level at or below 150% of the federal poverty level, Bell's customers will have two options to choose from for Lifeline service. The advantage of requiring the continuation of the Lifeline 100 program is that it makes extra benefits available to eligible customers. Customers who are willing to accept stricter restrictions on optional services will be eligible to receive assistance totaling $9.85 per month. With the new Lifeline 150 Service, the customer will be permitted to purchase one optional vertical service with the offset benefit of the federal universal support, currently $6.10 per month.
Conclusion
Upon our review, Bell's tariff revisions generally appear to be reasonable, in the public interest, and in compliance with our Opinion and Order entered September 30, 1999, at Docket Nos. P-00991648 and P-00991649. Therefore, we shall permit the proposed tariff to become effective. However, this permission does not constitute a determination that the tariff revisions are lawful, just and reasonable, but only that suspension or further investigation is not warranted at this time;
THEREFORE,
IT IS ORDERED:
1. That Bell Atlantic-Pennsylvania, Inc.'s current Lifeline program is continued as it currently exists in accordance with all provisions of Bell's Lifeline service as established at Docket No P-00930715, P-00950958 and

R-00974153.


2. That the tariff revision for Bell Atlantic-Pennsylvania, Inc.'s Telephone Tariff-Pa. P.U.C. No. 1, introducing Lifeline 150 Service in compliance with Commission Opinion and Order at Docket Nos. P-00991648 and P-00991649 entered September 30, 1999, be permitted to become effective on August 25, 2000.
3. That Bell Atlantic-Pennsylvania, Inc. fund its share of any Lifeline contribution above the federal level from the Lifeline reserve ($1.5 million as of April 1999) and from the first year value of the 1998 Price Change Opportunity, guaranteed by Bell in the amount of $8.5 million.
4. That Bell Atlantic-Pennsylvania, Inc. work with the Commission's Bureau of Consumer Services and the Council on Utility Choice to develop a new format for its Annual Lifeline Tracking Report.
5. That Bell Atlantic-Pennsylvania, Inc. will provide customer notification, which has been reviewed and approved by the Commission's Bureau of Consumer Services, through the use of annual bill inserts, bill messages, bilingual customer brochures and information in the Customer Guide pages of its directories.
6. That this Order is without prejudice to any Formal Complaints timely filed against these proposed tariff revisions.

7. That a copy of this Order be served upon all parties to Docket Nos. P-00991648 and P-00991649.


BY THE COMMISSION,

James J. McNulty

Secretary
(SEAL)
ORDER ADOPTED: August 17, 2000
ORDER ENTERED: August 17, 2000


1 We hereby take Administrative Notice to Bell's name change to Verizon Pennsylvania, effective

August 1, 2000.



2 The total offset amount had been $9.00, from inception until FCC Order 00-193, Released May 31, 2000, to become effective July 1, 2000, increased the Subscriber Line Charge (SLC) from $3.50 per month to $4.35 per month, an increase of $0.85, for interstate price cap local exchange carriers. (The SLC is one of the components of the total offset.) Bell is a price cap company, thus the offset was increased to $9.85 at Docket No. R-00005496 approved by Commission Secretarial Letter dated July 10, 2000.

3 The federal universal support was increased by $0.85, from $5.25 to $6.10 for interstate price cap companies by FCC 00-193 referenced in Footnote 2.

4 When a Lifeline 150 Service customer elects Voice Mail from Bell or a private vendor, the customer may choose one of the following options, at its tariffed rate, to make the voice mail service work: Call Forwarding Busy Line; Call Forwarding Busy Line, Don't Answer; and Call Forwarding Don't Answer.

5 Application of GTE Corporation, Transferor and Bell Atlantic Corporation, Transferee, Memorandum Opinion and Order, CC Docket No. 98-184, FCC 00-221 (rel. June 16,2000)




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