Agenda Date: August 30, 2000 Item Number: 2E thru 2X and 2C thru 2AC Dockets: UT-001240, UT-001247, UT-001248, UT-001249, UT-001274, UT-001276, UT-001277, UT-001278, UT-001279, UT-001280, UT-001284, UT-001285, UT-001286, UT-001287, UT-001288, UT-001289, UT-001290, UT-001291, UT-001292, UT-001293, UT-001309, UT-001312, UT-001313, and UT-001314 Companies: Verizon Northwest, Inc., Century Tel of Washington (WNU-1), Century Tel of Washington (WNU-5), Century Tel of Cowiche, Sprint/United Telephone, The Toledo Telephone Company, Ellensburg Telephone Company, Mashell Telecom, Inc., YCOM Networks, Inc., Pend Oreille Telephone Company, Hat Island Telephone Company, Whidby Telephone Company, Hood Canal Telephone Co., Inc., Western Wahkiakum County Telephone Company, Inland Telephone Company, Prescott Telephone and Telegraph Co., Kalama Telephone Company, Tenino Telephone Company, St. John, Co-operative Telephone and Telegraph Company, Pioneer Telephone Company, Qwest Corporation, McDaniel Telephone Co., Lewis River Telephone Company, Inc., and Asotin Telephone Company. Staff: Bob Shirley, Telecommunications Analyst Tim Zawislak, Policy Research Specialist Recommendation: Approve the Tariffs concerning the Lifeline and Link Up programs filed in the dockets listed on this memorandum, with effective dates as indicated on each filing. Background The Federal Communications Commission (FCC) has determined that telephone subscribershhip of Indians living on reservation land is 46.6 percent. This is less than half the over-all subscribership rate for Washington. In order to assist those who live on reservations and near reservations, the FCC has revised the rules concerning the Lifeline and Link Up programs effective October 1, 2000. Under the revised rules, Lifeline support can be as much as $31.10 for certain qualifying low-income individuals, but the basic monthly rate for telephone service cannot fall below $1.00 per month. Link Up, which provides support for connection fees, has been expanded to include support for service extensions. The present Link Up support covers one-half of the cost of the fee for initial connection to the network, or $30.00, whichever is less. Under the revised rule, for certain qualified low-income consumers, Link Up will provide up to an additional $70 in support. Eligible telecommunications carriers (ETCs) must certify to the Universal Service Administrative Company (USAC) not later than September 1, 2000 that this Commission has given the necessary approval to assure revised rates will take effect October 1, 2000. Eligibility: The additional support will be available on October 1 to eligible residents of tribal lands. The eligibility is not limited to Indians, but to any qualifying low-income consumer who lives on Tribal lands. The FCC extended the benefit to all low income consumers to relieve carriers of the administrative burden of determining which low-income consumers are Native Americans and which are not. In Washington, eligibility is automatic for recipients of Temporary Assistance to Needy Families, State Family Assistance, General Assistance, Refugee Assistance, Food Assistance, state Supplemental Security Income, Medical Assistance, Community Options Program Entry System (COPES), and DSHS Chore services (these are the same programs participation in which results in automatic eligibility for the Washington Telephone Assistance Plan). In addition to eligibility based on those programs, residents of tribal lands may qualify if they participate in Bureau of Indian Affairs (BIA) general assistance, tribally administered Temporary Assistance for Needy Families, Head Start (only those meeting its income qualifying standard), or National School Lunch Program's free lunch program. Tribal Lands: Tribal lands include reservations and "near reservation" communities designated by the BIA pursuant to 25 C.F.R. § 20.1(r). In Washington, near reservation designations include a large part of the state. The areas are: Whatcom, Skagit, Snohomish, King, Kitsap, Pierce, Mason, Thurston, Grays Harbor, Jefferson, Lewis, Cowlitz, Pacific, Klickitat, Grant, Yakima, Skamania, Pend Oreille, Stevens, Spokane, Lincoln, Ferry, Okanogan, Douglas, and Clallam counties; and the cities of Wenatchee, Ellensburg, Hoquiam, Asotin and Clarkston. September 1 Certification: All ETCs must provide the increased support beginning October 1. In order to claim reimbursement for the additional support ETCs must provide between October 1 and December 31, the FCC required ETCs to make several certifications to USAC. One of the certifications that must be made is that the ETC has the approval of the state commission for revised Lifeline and Link Up rates. There is a penalty if the certification is not timely made by an ETC. ETCs must provide the increased discounts to low-income consumers for the fourth quarter under any circumstance, but will be reimbursed at the previous, lower rate if the certification is not timely made. It is not necessary to grant the less than statutory notice requests made by ETCs in their filings because the effective dates are more than 30 days from the dates the tariffs were filed, but an affirmative action-approval of the tariffs-appears necessary to permit them to make the required certification. Outreach: The FCC has also revised its rules to require ETCs to publicize the availability of Lifeline and Link Up in a manner reasonably designed to reach those likely to qualify for service. Commission Staff are organizing a workshop for October 10, 2000, for the purpose of providing ETCs with information about how they can comply with the requirement. The workshop title is "Successful Methods for Targeted Outreach to Low-Income Consumers: Compliance with 47 C.F.R. § 54.405(b) and § 54.411(d). " The workshop will consist of presentations from persons who have experience working with various segments of the low-income population. We anticipate inviting speakers who can discuss how to reach low-income tribal members, how to reach low-income seniors, and how to reach other segments of the population. The speakers will be asked to make specific recommendations concerning the effectiveness of direct mail, advertising in various media, and other means of reaching specific low-income groups. We are co-sponsoring the workshop on outreach to low-income consumers with the Governor's Office of Indian Affairs and have extended an invitation to DSHS and WITA to be a co-sponsors as well. Summary: Approval of the tariffs will promote increased telecommunications service to low- income consumers.