The Kan. Corporation Commission (KCC) closed its generic docket r...
The Kan. Corporation Commission (KCC) closed its generic docket relating to state universal service funding for incumbent telcos under rate-of-return regulation. The KCC opened the docket (Case 04-GIMT-1080-GIT) earlier this year after its staff recommended the agency study whether…
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incumbents under rate-of-return should be allowed rate adjustments between general rate cases if their contribution to or draw from the state universal service fund changed as a result of a fund audit. The staff had proposed allowing up to a 3% increase or decrease in the intrastate revenue requirement between rate cases. But the telcos opposed the staff plan and said the KCC should continue its traditional policy of addressing universal service contributions during rate case hearings. The telcos said the staff’s plan might not be lawful under current statutes, and would create uncertainties regarding reasonableness of rates every time the state fund is audited. The KCC said situations in which a particular telco had a disproportionate fund contribution or fund draw could be dealt with on a case-by-case basis.