STATE OF ALASKA DEPARTMENT OF COMMERCE COMMUNITY AND ECONOMIC DEVELOPMENT Regulatory Commission of Alaska December 27, 2017 Bill lvalker, Governor Mike Navarre, CommiJJioller Stepbell McAlpille, Cbairman In reply refer to: Tariff Section File: T A26-998 LO#: L 1700543 Keegan Bernier Agent Alaska Universal Service Administrative Company 12350 Industry Way, Suite 200 Anchorage, AK 99515 Dear Ms. Bernier: Alaska Universal Service Administrative Company (AUSAC) filed TA25-998 on October 2,2017, seeking to increase the Alaska Universal Service Fund (AUSF) surcharge factor to 15.8% and approval of AUSAC's 2018 operating budget. On November 14,2017, the Regulatory Commission of Alaska (Commission) approved Tariff Sheet Nos. 2, 26, 27, and 29 and the revised Monthly Carrier Remittance Worksheet, filed October 2, 2017 by AUSAC with T A25-998. The effective date of the tariff sheets and the worksheet was set for January 1, 2018. In addition, the Commission approved AUSAC's 2018 operating budget. On November 16, 2017, the Superior Court of Alaska granted Matanuska Telephone Association, Inc.'s (MTA) stay of the Commission's decision in Order U-16-069(7), which removed MTA's status as a Carrier of Last Resort (COLR) and terminated MTA's associated COLR support paid from the AUSF, effective August 1, 2017. The court further ordered the Commission to continue to authorize monthly COLR support payments to MTA during the pendency of the MTA's appeal of that decision. On November 30,2017, the court granted an identical stay of the Commission's similar COLR status determination for ACS of Alaska, LLC (ACS-AK) in Order U-16-071 (7), and further ordered the Commission to continue to authorize COLR support payments to ACS-AK during the pendency of ACS-AK's appeal of that decision. In ordering both stays, the court cautioned both carriers that they "accept such payments with the understanding that, should [they] not prevail upon appeal, the funds will have to be repaid."1 However, the court declined to impose any explicit safeguards to secure repayment, such as a requirement to hold the disputed COLR support in an escrow account. On December 11, 2017, AUSAC filed TA26-998, seeking to increase the 2018 AUSF surcharge factor to 19.0% in order to accommodate both back-dated and future COLR support payments to MTA and ACS-AK. AUSAC also filed an associated request for expedited consideration and a waiver of the 45-day statutory notice period in order to fully replace the 15.8% surcharge factor set to go into effect on January 1, 2018, and to avoid 1 See Order Granting Stay Pending Appeal, 3AN-17-07893CI, dated November 16, 2017; and Order Granting ACS-AK's Motion for Stay Pending Appeal, 3AN-17-07893CI, dated November 30, 2017. 70 1 West 8th Avenue, Suite 300, Anchorage, Alaska 99501-3469 Telephone: (907) 276-6222 Fax: (907) 276-0160 TrY/ Alaska Relay: 7-1-1 or (800) 770-8973 Website: hup:/ / rca.alaska.gov
TA26-998 December 27, 2017 Page 2 of 2 customer confusion and administrative costs involved with enacting multiple surcharge factors in a relatively short time period. AUSAC also requested the Commission explicitly approve the updated COLR support amounts sought by MT A in T A 188-999 and by ACS AK in TA209-251, both of which were rejected as a consequence of the Commission's COLR status decisions noted above. After reviewing the court decisions staying the Commission's COLR status determinations for MTA and ACS-AK, the Commission concludes that in order to effectuate the court's intent, AUSAC should immediately begin regular COLR support payments to MTA and ACS-AK in an amount consistent with those carriers' requests in TA 188-999 and TA209-251, respectively, including backdated COLR support payments associated with the months of August through December 2017. Further, to avoid penalizing other carriers that currently draw support from the AUSF from the effects of the court's stay orders, the Commission hereby approves AUSAC's request to revise the 2018 AUSF surcharge factor upward to 19.0%, and waives statutory notice to allow Tariff Sheet Nos. 2, 26, 27, and 29, along with the revised Monthly Carrier Remittance Worksheet, filed December 11, 2017, by AUSAC with TA26-998, to go into effect on January 1, 2018. Enclosed are validated copies of the approved tariff sheets and revised worksheet. In approving TA26-998, the Commission notes that the FCC has recently approved an increase in the federal Universal Service Fund contribution factor to 19.5% and the Commission is cognizant that the approval of an AUSF surcharge factor of 19.0%, on top of the Network Access Fee and other federal fees, adds substantially to the financial burdens that Alaska consumers must endure for access to telecommunication services. The Commission notes that the increase in the surcharge factor approved with this letter order is directly tied to the court's decisions to the stay the Commission's COLR status determinations for MTA and ACS-AK. To date neither MTA nor ACS-AK have revealed their internal plans to repay funds should they fail to prevail on appeal. In order to safeguard the AUSF and the thousands of ratepayers that are now being asked to pay for the surcharge increase, AUSAC, in its fiduciary role, is hereby authorized to seek whatever assurances it deems prudent from both carriers to ensure the repayment of funds in the event MTA and ACS-AK do not prevail on appeal. BY DIRECTION OF THE COMMISSION (Commissioner Stephen McAlpine dissenting and Commissioner Rebecca L. Pauli not participating) Enclosures Sincerely, REGULATORY COMMISSION OF ALASKA MJ\c;t'\ :S Stephen McAlpine Chairman C 701 West 8th Avenue, Suite 300, Anchorage, Alaska 99501-3469 Telephone: (907) 276-6222 Fax: (907) 276-0160 TIYI Alaska Relay. 7-1-1 or (800) 770-8973 Website: http://rca.alaska.gov
RCA No. 998 Twenty-fifth Revised Sheet No.2 Cancelling Twenty-fourth Revised Sheet No.2 STATE OF ALASKA REGULATORY COMMISSION OF ALASKA CHECK SHEET Original and revised pages as named below contain all changes from the original tariff that are in effect on the date hereof. Page Revision Page Revision 1 First 26 Twenty-fi rst 2 Twenty-fifth (T) 27 Twenty-Fi rst 3 Original 28 Original 4 Third 29 Tenth 5 First 6 Original 7 Original 8 Third 9 Third 10 Second 10.1 Original 11 First 12 First 13 Original 14 First 15 Second 16 Original 17 First 18 Original 19 Original 20 Original 21 First 22 Original 23 First 24 Original 25 First 25.1 Original (T) (T) (T) Tariff Advice No.: TA26-998 Effective: January 1. 2018 Date Issued: Issued By: By: 1itle:
RCA No. 998 Twenty-first Revised Sheet No. 26 Cancelling Twentieth Revised Sheet No. 26 STATE OF ALASKA REGULATORY COMMISSION OF AlASKA RATES AND CHARGES A. Amount of Surcharge Surcharge Percentage 19.0% (I) The surcharge is assessed on End User Revenues of Intrastate Telecommunications Carriers providing the services listed on Tariff Sheet No. 15 of this tariff, except for carriers exempted. More detailed descriptions and examples of End User Revenues and exclusions are contained in the instructions for the monthly Carrier Remittance Worksheet in Appendix I to this tariff. B. Collection from End Users Concurring Carriers are authorized by the Commission to bill and collect from End Users the percentage surcharge in effect on the date bills are rendered to End Users. Tariff Advice No.: TA26-998 Effective: January 1, 2018 Date Issued: Issued By: By: Title:
RCA No. 998 Twenty-first Revised Sheet No. 27 Cancelling Twentieth Revised Sheet No. 27 STATE OF ALASKA REGULATORY COMMISSION OF AlASKA RATES AND CHARGES C. History of Surcharges in Effect The following is a history of all prior AUSF surcharge amounts authorized by the Commission and the effective dates: Tariff Advice Number Effective Date Surcharge Amount TA-1-998 TA-2-998 TA-3-998 TA-4-998 TA-5-998 TA-6-998 TA-7-998 TA-8-998 TA-9-998 TA-10-998 TA-11-998 TA-12-998 TA-13-998 TA-14-998 TA-15-998 TA-16-998 TA-18-998 TA-19-998 U-16-075(1) U-16-075(3) TA-23-998 TA-25-998 March 1, 1999 January 1, 2000 January 1, 2001 January 1, 2002 January 1, 2003 January 1, 2004 January 1, 2005 January 1, 2006 January 1, 2008 January 1, 2009 January 1, 2010 January 1, 2011 August 1, 2011 January 1, 2012 January 1, 2013 January 1, 2014 January 1, 2015 January 1, 2016 September 1, 2016 (Interim) October 1, 2016 January 1, 2017 January 1, 2018 1.8% 1.2% 0.4% 0.56% 0.65% 0.96% 1.00% 1.2% 0.77% 1.05% 1.39% 1.32% 9.5% 9.5% 9.3% 9.2% 10.4% 11.5% 14.2% 14.2% 14.2% 15.8% (N) Tariff Advice No.: TA26-998 Effective: January 1, 2018 Date Issued: Issued By: By: Title:
RCANo.~9=9=8 ~T~e~nt=h~R~e~v=is=ed~ ~S=h~e~e~t~No~.~29 Cancelling Ninth Revised Sheet No. 29 STATE OF AlASKA REGULATORY COMMISSION OF ALASKA APPENDIX I This Appendix contains samples of current Forms and Reports for the administration of the AUSF that have been approved by the Commission. The Forms and Reports are not numbered as tariff sheets. Forms and Reports included in Appendix I are: Name of Form Effective Date No. of Pages Monthly Carrier Remittance Worksheet Monthly Carrier Remittance Worksheet Instructions Nonpooling Monthly Carrier Common Line Worksheet Nonpooling Monthly Carrier Common Line Worksheet Instructions Pooling Monthly Carrier Common Line Worksheet Pooling Monthly Carrier Common Line Worksheet Instructions January 1, 2018 1 March 8, 2017 11 August 1, 2011 1 August 1, 2011 4 August 1, 2011 1 August 1, 2011 3 Tariff Advice: TA26-998 Effective: January 1 2018 Date Issued: Issued By: By: Title:
1. Company Name:,, _~.. <~:;;~~~ > ~.L~,,~, 1.a. Complete Mailing Address: State of Alaska Universal Service Fund Monthly Carrier Remittance Worksheet A. Company Code: B. Submission Date: C. Revenue Data MMIYY: Please read instructions before completing. D. Original SECTION 1 - CARRIER IDENTIFICATION Revision ~ @ ~~ c :u -<~ m (")~ n m I~ - n ~~ m -c;:) ~~ <..., 0 -... m 0 ~ ~ 1'0') - 1.b. Telephone: 1.c. Email Address: SECTION 2 - MONTHLY INTRASTATE END USER REVENUE DATA 2. 3. 4. 5. 6. 7. 8. Local Service Revenues 2. Wirelessl PCSIMobilelPag ing Revenues 3. Interexchange Switched Toll and Private Line Revenues 4. Pay Telephone Revenues 5. VolP Revenues 6. Other Revenues 7. 7.a. Less Uncollectible Revenue 7.a. Total Intrastate End User Revenues (sum of lines 2 through 7. a.) 8 1 SECTION 3 - REMITTANCE CALCULATION I 9. 10. AUSF Rate (effective 01/01/2018) 9. 19.00% AUSF Amount Due (line 8 X line 9) 10. (I) 11. Monthly worksheets and remittances must be received by AUSAC by the 20th calendar day of each month. If payment is not received in immediately available funds by the due date, interest at the rate of.000287, calculated on the total amount due, will be charged until the date paid. In addition to interest, if payment is not received in immediately available funds within two (2) days of the due date, a one time liquidated damages sum equal to one percent (1%) of the total amount due will be charged. Number of Lifeli ne Customers 11. SECTION 4 - CHANGE IN COMPANY STATUS 12. 13. Date: If business has been discontinued in Alaska: Business Sold Business Merged Business Discontinued (date) (date) (date) 13.a. Company sold to or merged with: If business has recently started in Alaska, (date) business began. SECTION 5 - CERTIFICATION 14. 15. 16. 17. Under penalties as provided by law, I certify that I have examined this repcrt and to the best of my knowledge and belief it is true, correct, and complete. I further acknowledge AUSAC's au thority to request additional suppcrting information as may be necessary. Date Contact Name Signer's Mailing Address: Signer's Email Address: Name Authorized Signature Contact Title Title Phone Number Send worksheet and payment to: Alaska Universal Service Administrative Company 12350 Industry Way, Suite 200 Anchorage, AK 99515 Phone: (907) 561-6300 Fax: (907) 561-6303 Make check payable to AUSF Payment Method: D Check Email: info@ausac.org Appendix 1 TA26-998 Effective: January 1, 2018