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ORDER BY THE COMMISSION: On July 28, 2000, GTE North Incorporated1 ("GTE" or "Company") filed a Petition for approval of its Lifeline plan in accordance with the Commission's Opinions and Orders entered September 30, 1999, at Docket Nos. P-00991648 and P-00991649 ("Global Order"), and November 4, 1999 at Docket Nos. A-310200F0002, A-310222F0002, A-310291F0003, and A311350F002, Bell Atlantic Corporation and GTE Corporation parent level merger ("Merger"). Pursuant to the conditions of the Memorandum of Understanding entered into between the Pennsylvania Office of Attorney General and the Applicants as part of the Merger, the Commission directed that GTE would file a Petition to offer Lifeline service under the same terms and conditions as directed for Bell in the Global Order. In the instant petition, GTE is filing its Lifeline plan to mirror Bell's existing Lifeline plan (prior to the Global Order) and the Lifeline 150 Service plan to become effective August 25, 2000. Background GTE's Lifeline program will mirror Bell Atlantic-Pennsylvania Inc.'s ("Bell") existing Lifeline program (Lifeline 100) and the Lifeline 150 Service plan in accordance with the provisions of the Bell/GTE Merger. Lifeline 100 is available to eligible customers whose income level is at or below 100% of the federal poverty level. Under this plan, Bell provides a $9.85 2 total offset to its Lifeline service subscribers, and provides a total restriction on optional vertical services, except those provided in Lifeline 100. Bell's Lifeline 100 program has funding sources as directed at Docket Nos. P-00930715, P-00950958, P-00974153 and the Global Order. GTE does not have any such provisions, so the Company will loose revenue for each customer who takes Lifeline 100, as the additional customer credit offset of $3.75 3 per month will be at GTE's expense. (Prior to the Merger, GTE was a member of the Pennsylvania Telephone Association ("PTA"). As such, GTE's Lifeline service was established by the criteria in the Commission's Opinion and Order at Docket Nos.I-00940035 and P-00971274 entered November 21, 1997. Therefore, the Lifeline credit offset of $5.25 was totally funded with the federal universal support, and GTE was not liable for funding of the Lifeline program). 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 4, and one (1) optional vertical service 5, in addition to those currently available in Lifeline 100, at the applicable tariffed rate, to 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) tariff is to broaden eligibility requirements, remove obstacles to participation, make the program available to all eligible Lifeline 100 customers and minimize the costs involved in administering the program. As a member of the PTA, GTE has been submitting an Annual Lifeline Tracking Report on the status of the Lifeline and Link Up programs to the Commission on March 31. We believe there is a need to revise this report to make it as consistent as possible to Bell's report to facilitate the gathering of comparable data. In addition, the due date should be revised so it is consistent with Bell's. 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 the Commission did not intend for Lifeline customers to be required to meet both the income eligibility criteria and be enrolled in a public assistance program 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 permit a Lifeline customer to meet either criterion instead of both, (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 the Bell's and PTA Model Lifeline tariffs are not in compliance with the Global Order. On June 12, 2000, GTE filed its Reply to the OCA's Exceptions, recommending that the Exceptions be denied. In its reply comments, GTE cited FCC eligibility criteria, and stated that its 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." GTE explained that the Commission clearly intended that federal funds would be the only funding source for the Lifeline 150 services, and therefore the eligibility criteria must include participation in one of the above programs. GTE 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 GTE'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 indication 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 GTE's Lifeline 150 tariff in compliance with the Global Order. On June 16, 2000, the FCC approved the application of Bell and GTE for the transfer of control of certain licenses and lines from GTE to Bell 6 (Bell/GTE Merger Order). Pursuant to the conditions the FCC adopted in approving the merger agreement, GTE offered to file a tariff for an enhanced lifeline plan. The tariff 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 GTE'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 July 28, 2000, GTE filed a Petition for Approval of its Lifeline plan in accordance with Opinion and Order entered September 30, 1999, at Docket Nos. P-00991648 and P-00991649 (Global Order), and Opinion and Order entered November 4, 1999 at Docket Nos. A-310200F0002, A-310222F0002, A-310291F0003, and A-311350F0002, Bell Atlantic Corporation and GTE Corporation parent level merger (Merger). Pursuant to the conditions of the Memorandum of Understanding entered into between the Pennsylvania Office of Attorney General and the Applicants as part of the Merger, the Commission directed that GTE would file a Petition to offer Lifeline service under the same terms and conditions as directed for Bell in the Global Order. In the instant petition, GTE is filing its Lifeline plan to mirror Bell's existing Lifeline plan (prior to the Global Order) and the Lifeline 150 Service plan to become effective August 25, 2000. 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 LinkUp 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 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, GTE 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, GTE 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, GTE's customers will have two options to choose from for Lifeline service. The advantage of requiring the continuation of the existing Lifeline 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, GTE's filing generally appears to be reasonable, in the public interest, and in compliance with our Opinion and Orders entered September 30, 1999, at Docket Nos. P-00991648 and P-00991649 and November 4, 1999 at Docket Nos. A-310200F0002, A-310222F0002, A-310291F0003, and A-311350F0002. Therefore, we shall permit the proposed tariff to become effective. However, this permission does not constitute a determination that the filing is lawful, just and reasonable, but only that suspension or further investigation is not warranted at this time; THEREFORE, IT IS ORDERED: 1. That GTE North Incorporated file a Lifeline program under the same terms and conditions contained in Bell Atlantic-Pennsylvania Inc.'s Lifeline program with all provisions of Bell's Lifeline service as established at Docket No P-00930715, P-00950958 and R-00974153, in accordance with the Bell/GTE Merger Agreement. 2. That Supplement No. 165 to GTE North Inc.'s Tariff Telephone-Pa. P.U.C. No. 1, Supplement No. 159 to GTE North Inc.'s Tariff Telephone-Pa. P.U.C. No. 3, Supplement No. 152 to GTE North Inc.'s Tariff Telephone-Pa. P.U.C. No. 4, and Supplement No. 160 to GTE North Inc.'s Tariff Telephone-Pa. P.U.C. No. 6, 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 GTE North Incorporated 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 and revise the due date to June 30. 4. That GTE North Incorporated 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. 5. That this Order is without prejudice to any Formal Complaints timely filed against these proposed tariff revisions. 6. 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 GTE's name change to Verizon North Incorporated, and Bell Atlantic-Pennsylvania, Inc.'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.) GTE is a price cap company; thus the offset was increased to $9.85 at Docket No. R-00005554 approved by Commission Secretarial Letter July 28, 2000. 3 $9.85 total offset less $6.10 federal universal support. 4 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. 5 When a Lifeline 150 Service customer elects Voice Mail from GTE 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. 6 Application of GTE Corporation, Transferor and Bell Atlantic Corporation, Transferee, Memorandum Opinion and Order, CC Docket No. 98-184, FCC 00-221 (rel. 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