The California Public Utilities Commission could collect feedback this fall on whether to revise its carrier of last resort (COLR) rules, according to a proposed decision released Monday. The CPUC plans a June 20 vote on opening a rulemaking to weigh possible changes to COLR rules, along with a related item that would deny COLR relief to AT&T (see 2406050016 and 2405310029), a meeting agenda also posted Monday said. “In general, the purpose of this proceeding is to consider whether the Commission should revise its COLR rules and, if yes, what those revisions should be,” the CPUC draft said. The proposed rulemaking would adopt “a rebuttable presumption that the COLR construct remains necessary, at least for certain individuals or communities in California,” it said. Among other questions, the CPUC would ask if there are areas that may no longer require a COLR, if it should require VoIP or wireless providers to be COLRs, and if it should revise rules on how current COLRs may shed those obligations. If approved by the California commissioners, comments would be due Sept. 30, replies Oct. 30.
The FCC urged the 6th U.S. Circuit Appeals Court Friday to move the challenge to the FCC’s net neutrality order to the D.C. Circuit (docket 24-3450). The FCC also issued an order declining to stay the rules, which take effect July 22, pending judicial review.
California could soon release more than $100 million in last-mile broadband grants through the California Public Utilities Commission's federal funding account (FFA), the CPUC said Friday. Three projects in Plumas County will receive $16.7 million through staff-delegated authority, the CPUC said. In addition, commissioners will consider two draft resolutions for an additional $88.6 million in awards at a July 11 meeting, the agency said. Draft resolution T-17826 recommends $44.1 million for unserved areas in Imperial, Lassen and Plumas counties. The Golden State Connect Authority and Plumas-Sierra Telecommunications would build the networks. Draft resolution T-17829 recommends $44.4 million for unserved areas in Alameda, San Francisco and Sierra counties. The awardees in that draft would be Plumas-Sierra and the cities of Oakland, Fremont and San Francisco. The CPUC has $2 billion available in the FFA and received applications requesting more than $4.6 billion total, the agency said. California Assembly Communications Committee Chair Tasha Boerner Horvath (D) raised concerns earlier this week about CPUC delays getting last-mile grants using 2021 American Rescue Plan Act dollars out the door (see 2406050065).
The California Public Utilities Commission may vote July 11 on a proposed decision related to ratemaking for small local exchange carriers. It would respond to Calaveras Telephone and other small LECs’ September 2022 application seeking approval to establish cost of capital for each company’s ratemaking purposes (see 2306070065). Cost of capital is the rate of return a company may recover on infrastructure investments. The CPUC draft would establish a cost of capital for 2022-2025. “To arrive at the Cost of Capital for the Small LECs, this decision adopts a hypothetical capital structure” of 55% equity and 45% debt, “which we find to be consistent with our findings with respect to the regulatory capital structure of these companies,” the draft said.
The California Public Utilities Commission should fine AT&T for “continuing misrepresentations” about its petition for carrier of last resort (COLR) relief, the CPUC’s independent Public Advocates Office said in reply comments Tuesday. AT&T last week raised legal and constitutional concerns as it protested a CPUC proposed decision that would dismiss the carrier’s application (see 2405310029). AT&T’s opening comments repeated already rejected arguments, said PAO: The commission should “conclude as a matter of law that AT&T violated” a CPUC ethics rule “and impose sanctions of $1,000 on AT&T’s signatory attorneys." Other consumer groups piled on in separate replies in docket R.23-03-003. The Center for Accessible Technology said, “AT&T’s comments are based on incorrect interpretations of Commission rules and the mistaken belief that AT&T is entitled to relinquish its COLR status.” The Utility Reform Network said the carrier’s argument for rejecting the CPUC’s draft incorrectly “rests on the proposition that the Commission misunderstands its own COLR rules.” But AT&T replied that the CPUC must accept “all of the factual allegations” in its application as true. “The opposing commenters turn that standard upside down when they attack the factual basis for this Application and propose the Commission include additional incorrect and inflammatory allegations about AT&T California and the reliability of its services,” it said.
Cash-strapped California has many challenges ahead as it seeks to connect everyone to broadband, said state, local and industry officials Wednesday at the livestreamed California Broadband Summit. Assembly Communications Committee Chair Tasha Boerner (D) said she has several concerns with state broadband policy, including that the California Public Utilities Commission is taking too long to distribute last-mile grants.
The California Public Utilities Commission should freeze California LifeLine specific support amounts (SSA) until state regulators and stakeholders can find a better way of calculating them, a consumer group and low-income wireless service providers said in comments Monday. The CPUC is considering freezing the SSA at $19 for wireline and wireless providers (see 2405070050). Meanwhile, consumer advocates defended their petition for temporary bridge funding through LifeLine that would help cover the loss of federal affordable connectivity program (ACP) support.
Weighing changes to state video franchise rules, the California Public Utilities Commission scheduled four hearings on updating the Digital Infrastructure and Video Competition Act (DIVCA) requirements. A 2021 state law required the DIVCA rulemaking (see 2306050051). A pair of in-person hearings is scheduled for Aug. 14 in Sacramento; two more will occur Sept. 5 in Monterey Park, California, the agency said Friday. Also, the CPUC will hold two virtual hearings Sept. 19, it said.
AT&T raised legal and constitutional concerns as it protested a California Public Utilities Commission proposed decision that denies it relief of carrier of last resort (COLR) obligations. But in other comments the agency received Thursday, some local representatives strongly supported the plan to dismiss AT&T’s application. “Upholding this decision is vital to ensure residents across California … continue to have access to basic telephone service,” said San Mateo County in docket R.23-03-003.
T-Mobile’s proposed acquisition of UScellular’s wireless operations, including about 30% of its spectrum, has already seen opposition (see 2405280047), with more expected. In addition, the deal will likely face heavy scrutiny from DOJ and the FCC, industry experts agree. Handicapping whether the transaction will receive approval is difficult, especially headed into a presidential election in November, industry officials say. Some of the 21 states where UScellular has a presence could play at least limited roles reviewing the deal, state and other officials said. T-Mobile’s buy of Mint and other assets from Ka’ena, a smaller deal that didn’t involve spectrum, took regulators more than a year to approve.