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Wyoming Public Service Commission 
Rules of Practice & Procedure

Rule 500 Telecommunications Universal Service Fund.

§ 37-15-501    Universal service fund created; contributions; administration.

§ 37-15-502    Universal service fund eligibility and distributions to carriers using wireless technology.

§ 37-15-102    Legislative intent.

§ 37-15-103    Definitions.

§ 37-15-104    Services not regulated by this title.

§ 37-15-401    Commission powers

 

Section 500 Telecommunications Universal Service Fund.

(a) All definitions and provisions contained within W. S. § 37-15-103 and W. S. § 37-15-104 are incorporated herein by reference.

(b) The Commission may contract for the services of a universal service fund manager who shall perform routine collection, distribution, and other activities related to the universal service fund, subject to the oversight and direction of the Commission. The manager's compensation and necessary related expenses shall be incorporated into the required funding computations and paid for through funds collected from telecommunications providers. The Commission shall request the services of the Wyoming Attorney General's Office to enforce its universal service fund rules under W.S. § 37-15-401(a)(ii) including initiating civil proceedings against telecommunications providers that violate the universal service fund rules. The selection of the manager shall be subject to all applicable procurement rules of the State of Wyoming.

(c) No later than February 15th of each year, all telecommunications companies shall provide the information required by the Commission and/or the universal service fund manager to properly perform the computations necessary for collection and distribution of the universal service fund. This information may include names and addresses of purchasers of intrastate access from each local telecommunications provider, and names and addresses of pay telephone providers purchasing access to the local telecommunication provider's system, as well as rate and customer data. Specific customer data provided to the Commission and/or the fund manager under this section shall be deemed to be proprietary unless otherwise determined by the Commission. The universal service fund manager shall make no request for information from telecommunications companies without first having obtained the approval of the Commission to collect the information.

(d) At such time that contributions to and disbursements from the universal service fund become necessary, the universal service fund shall be audited, by an independent accountant not affiliated with the fund manager, no more frequently than annually and no less frequently than every three years. Expenses related to this audit shall be included in the administrative cost of the fund and shall be incorporated in the required funding computations and paid for through funds collected from telecommunications companies. The independent accountant shall be selected by the Commission under all applicable procurement rules of the State of Wyoming. Once selected, the accountant shall be eligible to perform not more than three (3) consecutive audits.

(e) No later than October 1st of each year, the fund manager shall submit a report to the Commission and to each telecommunications company which contributes to the universal service fund. This report shall summarize the preceding year's activity and shall contain the following:

(i) a statement of collections and distributions from the universal service fund;
(ii) a record of total cost of universal service fund administration; and
(iii) audit reports and recommendations provided by the independent accountant.

(f) The costs incurred by telecommunications companies associated with making payments into the universal service fund shall not be used as an offset to the required contributions and such costs shall not be incorporated into the funding calculation. Reasonable amounts for administrative costs may be treated as an operating expense.

(g) The statewide weighted average local service rate shall be computed by multiplying the number of residential and business service lines, as contained in the definition of essential services found in W.S. § 37-15-103(a)(iv), plus the number of subscribers taking service that meets the criteria of W.S. § 37-15-502 (supported wireless service), by the rate applicable to each line or subscriber, with the product of this computation divided by the total number of access lines, as contained in the definition of essential services found in W.S. § 37-15-103(a)(iv), plus the number of subscribers taking supported wireless service. The rate to be used in the computation shall include all standard charges associated with each telecommunication company's local service or each wireless company's supported wireless service. Such charges include, but are not limited to: the local service rate, whether flat rated or measured; touch-tone; as well as zone and mileage charges. The computation of the weighted statewide average local service rate shall exclude bill credits related to prior period Wyoming universal service fund receipts; federally mandated customer access line charges; mandatory extended area service charges; surcharges for 9-1-1; franchise taxes; the telephone assistance program surcharge; and other similar charges or taxes. The manager shall annually compute both the statewide weighted average service rate and each telecommunications provider's local service rate in a consistent manner based on end of calendar year line counts and prices set pursuant to the provisions of W.S. § 37-15-203 or otherwise by a price sheet lawfully filed exclusively under  W.S. § 37-15-204, taking into account the classification options available to telecommunications companies under paragraph (h) of this rule.  The manager's computation of the statewide weighted average rate shall also include the wireless companies' reported prices for supported wireless services.

(h) Each telecommunications company shall report its rates separately for each distinct geographic area, zone or mileage grouping, or other distinct customer grouping that is applicable because of differences in customer rates.  Wyoming universal service fund support payments shall be distributed on the difference between the rate, as calculated in paragraph (g) of this rule, and the 130% benchmark as indicated in paragraph (p) following, except that the support for a supported wireless service will not exceed the amount of per line support that would have been offered to a wireline telecommunications customer in the geographic service area in which the supported wireless service is offered.

(i) Mid period revisions to a telecommunications company's local service rate or to a supported wireless service, for purposes of drawing from the fund, shall only be permitted upon application and approval by the Commission and after a showing of need or special circumstances.

(j) Each company's incremental amount of federal universal service fund receipts resulting from changes in the company's high cost loop fund support shall also be credited, monthly, to the bills of customers on a per line basis.  The amount of the credit for each of the customers shall be computed, and authorized by the Commission, in a manner consistent with federal receipt of such funds.  The amount of this credit shall equal the difference between the amount of federal universal service funds received in the most recent calendar year and the amount of federal universal service funds most recently used in the computation of rates.

(k) No later than April 1st of each year, the universal service fund manager shall file, with the Commission and with each affected telecommunications company, a report that details the computation of the recommended level of assessment that shall be attributable to a percent of gross retail revenues. This recommended level of assessment shall be based on the computed amounts needed for payment to telecommunications companies, the prior year gross retail revenues, and any over or under collection in the fund from the previous year. Additionally, such charges shall be assessed as a separate line item on each customer's bill unless a specific waiver is requested and granted by the Commission.

(l) No later than May 15th of each year, the Commission shall issue an order stating the universal service fund level of assessment that shall be applicable for the twelve-month period beginning July 1st of each year.

(m) All telecommunications companies realizing intrastate revenue from operations in Wyoming are required to report such gross revenues to the fund manager, and pay into the fund, the assessment calculated by multiplying the company's gross revenue, net of any wholesale transactions described in paragraph (n) of this rule, by the applicable assessment rate.  Reports of revenue and payments of assessment are required no less often than quarterly.  The due date of such reports and payments shall be determined for an individual telecommunication company as follows:

If the assessment amount for the first or second month of the calendar quarter (plus any unpaid assessment amount of $100 or less from any prior month of the calendar quarter) exceeds $100, then the report of revenue and payment of assessment amount for such period is due on or before the last day of the month after the month in which the unpaid assessment amount exceeded $100.  If the assessment amount is $100 or less, a report and payment is not required, and the unpaid assessment amount shall carry over to the next month.  Provided, however, that regardless of the assessment amount, the report of revenue and payment of assessment amount is required on or before the last day of the first month after the end of any calendar quarter in which a telecommunication company realizes any intrastate revenue from its operations in Wyoming.

    Assessment amounts not timely paid according to the above state rule shall be subject to a late payment charge equal to one and one-half percent (1.5%) for each month, or part thereof, that the assessment amount remains unpaid.

(n) The universal service fund assessment shall apply only to retail telecommunications service revenues and shall not be applied to revenues associated with wholesale services.  For the purposes of this section, wholesale services are defined as any service which is resold, without or without additional value-added features, to end users by the purchaser of that service, except that lines purchased and resold by internet service providers shall not be considered wholesale services.  Wholesale services include, but are not limited to: switched access; the use of software defined network services for purposes of resale; interconnection for the resale of local services; public access lines used to service pay telephones; lines used to serve radio common carriers; and the use of wide area telecommunications service for the purposes of resale.  The universal service fund payment percentage shall also not apply to non-telecommunications services including, without limitation: one-way transmission of radio or television signals for broadcast purposes; billing and collection services; inside wire and premise cable installation and maintenance; directory services; private telecommunications networks; non-voice data services not operated by a company providing local exchange services; and internet services, even if provided by a local exchange company.

(o) Affected telecommunications providers subject to paragraph (k) of this rule include but are not limited to: local exchange companies; competitive access providers; interexchange companies; cable companies providing telephony; cellular providers; wireless providers; commercial radio common carriers; personal communications service providers; pagers; and pay telephone providers. All telecommunications companies, as defined by W. S. § 37-15-103(a)(xi), as well as those companies which provide telecommunications services, as defined by W.S. § 37-15-103(a)(xii), shall report and pay into the fund as provided for in paragraph (m) of this rule.

(p) Distributions from the fund shall be made monthly, beginning October 1, 1998. Pursuant to W. S. § 37-15-501(d) and W.S. § 37-15-502, and consistent with the Commission's administration of the fund as specified in these rules, telecommunications companies shall receive funds to the extent that their local exchange rates or supported wireless service price(s), after consideration of any contributions from the federal universal service fund, exceed one hundred thirty percent (130%) of the weighted statewide average local exchange rates.

(i) Distributions to telecommunications companies relative to local rates shall equal: the sum of the products resulting from the difference, expressed in dollars, by which each local service rate or supported wireless service price exceeds one hundred thirty percent (130%) of the statewide weighted average local service rate multiplied by the total number of lines or subscribers to which that rate applies.

(ii) Telecommunications companies receiving Wyoming universal service funds shall display the amount of such support, for each affected customer, as a separate line item credit on each affected customer's bill unless a specific waiver is requested and granted by the Commission.

(q) For purposes of this rule, the Commission establishes that the amount of minutes of use of exchange service provided free of charge to end users, as part of the supported wireless service, shall be unlimited.

§ 37-15-501. Universal service fund created; contributions; administration.

(a) There is hereby established the universal service fund within the special revenue fund to be administered in accordance with this section. The fund shall be administered by the commission. All telecommunications companies shall contribute to the universal service fund. The dates for contributions to the fund and disbursements from the fund shall be set by the commission, after notice and opportunity for hearing, as necessary to accomplish the objectives of the fund as specified in subsections (c) and (d) of this section. The costs of administering the fund may be included in determining required contributions.

(b) The commission shall after notice and opportunity for hearing, designate the method by which the contributions shall be calculated, collected and distributed in order to achieve the goals set forth in W.S. 37-15-102. The commission shall authorize an additional monthly charge to customers, in the amount specified by the commission, to recover each contributor's required payment to the universal service fund.  Any charge related to mobile telecommunications service shall only apply if the customer's place of primary use is in this state as provided by the Mobile Telecommunications Sourcing Act, 4 U.S.C. 116 to 126.  The provisions of the Mobile Telecommunications Sourcing Act shall apply to this subsection.

Note:  The last two sentences of (b), beginning with the words "Any charge related to . . . ", were added by House Bill No. HB0139, effective August 1, 2002.

(c) The commission shall administer the monies in the universal service fund to assist only those customers of telecommunications companies located in areas of this state with relatively high rates for essential services. The commission, after notice and opportunity for hearing, shall determine a reasonable amount and a fair method of distributing monies. The commission may authorize a credit to customer bills, in the amount specified by the commission, to reflect distributions received by the local exchange company from the universal service fund. The commission shall ensure that the method shall promote the emergence of competition in providing local exchange service.

(d) In accordance with the method of distribution determined by the commission, a telecommunications company shall receive funds under this section to the extent that its local exchange rates, after consideration of any contributions from the federal universal service fund, exceed one hundred thirty percent (130%) of the weighted statewide average local exchange rates.

(e) The operation of the universal service fund may be suspended by the commission, based upon a public interest finding, after notice and an opportunity for a hearing, that the fund is not then serving its intended purpose.

(f) The commission's decisions under this section shall be subject to the provisions of the Wyoming Administrative Procedure Act.

History: Laws 1995, ch. 181, § 1; W.S. 1977, § 37-15-501.

Wyoming Supreme Court upholds PSC regulatory authority over noncompetitive telecommunications services.  TriCounty Telephone Assn., Inc. and TCT West, Inc.  v.  The Wyoming Public Service Commission, et al. 

§ 37-15-502. Universal service fund eligibility and distributions to carriers using wireless technology.

(a) Telecommunications companies which use cellular, radio spectrum or other wireless technology to provide supported services to customers who are otherwise eligible to receive universal service fund support pursuant to W. S. 37-15-501, may establish eligibility to receive universal service fund distributions in an amount to be determined by the commission, provided that:

(i) The telecommunications company will offer and advertise all universal service fund supported services throughout the entire local exchange area;

(ii) The telecommunications company will provide unlimited local calling throughout an entire local exchange area;

(iii) the telecommunications company's bill to the customer reflects a credit for the amount of distribution the company receives from the state universal service fund for providing universal service fund supported services to that customer; and

(iv) The company and services meet such additional criteria, if any, the commission determines are necessary to further the stated  intent of W.S. 37-15-102.  During its consideration and determination, the commission shall consider technological and competitive neutrality.  The commission shall adopt rules setting forth any such criteria on or before December 31, 2001.

History: Laws 2001, ch. ____, § __; W.S. 1977, § 37-15-502

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§ 37-15-102. Legislative intent.

It is the intent of this act to ensure essential telecommunications services are universally available to the citizens of this state while encouraging the development of new infrastructure, facilities, products and services. The provision of telecommunications services has been developed and regulated under a monopolistic environment. This act recognizes the increasingly competitive nature of the telecommunications industry and the benefits of competition. It is the intent of this act to provide a transition from rate of return regulation of a monopolistic telecommunications industry to competitive markets and to maintain affordable essential telecommunications services through the transition period, and the provisions of this act shall be construed to achieve those goals.

History: Laws 1995, ch. 181, § 1; W.S. 1977, § 37-15-102

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§ 37-15-103. Definitions.

(a) As used in this chapter:

(i) "Affiliated telecommunications companies" means telecommunications companies:

(A) In which five percent (5%) or more of the voting stock is controlled or owned, directly or indirectly, by a common principal; or

(B) Whose management and policies are found by the commission, after notice and opportunity for hearing, to be controlled by a common principal.

(ii) "Commission" means the public service commission of Wyoming;
(iii) "Competitive telecommunications services" means those services found by the legislature or the commission to be competitive in accordance with W.S. 37-15-102;
(iv) "Essential telecommunications service" means a customer's access to service that is necessary for the origination or termination, or both, of two-way, switched telecommunications for both residential and business service within a local exchange area. Essential telecommunications services are limited to:

(A) Access to interexchange services provided by interexchange telecommunications companies;
(B) Single line flat-rate or single line measured residence or business service;
(C) Transmission service and facilities necessary for the connection between the end user's or customer's premises or location and the local network switching facility including the necessary signaling service used by customers to access essential telecommunications services;
(D) Services necessary to connect 911 emergency services to the local network;
(E) Switched access, which for the purposes of this chapter shall mean the switching and transport necessary to connect an interexchange telecommunications company with the local exchange central office for the purpose of originating or terminating, or both, the interexchange telecommunications company's switched telecommunications service.

(v) "Interexchange telecommunications company" means a person providing telecommunications service to connect end users located in different local exchange areas, but excluding companies which also provide noncompetitive local exchange services;

(vi) "Local access transport area (LATA)" means geographic regions created as part of the divestiture of American Telephone and Telegraph Company which defined the areas where regional Bell operating companies were permitted to provide telecommunication services;

(vii) "Local exchange area" means a geographic territorial unit established by the commission for providing telecommunications services;

(viii) "Local exchange service" means the provision of essential telecommunications service within a local exchange area;

(ix) "Noncompetitive telecommunications services" means those services which have not been found by the legislature or the commission to be competitive in accordance with W.S. 37-15-102;

(x) "Price" means any rate or charge set and published in accordance with this chapter and collected by the telecommunications company for any telecommunications service offered by it to the public or other telecommunications companies;

(xi) "Telecommunications company" means a person engaged in the furnishing of telecommunications service within this state;

(xii) "Telecommunications service" means the offering or transmitting for hire of telecommunications by means of telecommunications facilities using wire, radio, lightwave or other means;

(xiii) "Total service long-run incremental cost" means the total forward-looking cost, using least cost technology, for a telecommunications service or basic network function that the telecommunications provider would incur if it were to initially offer such telecommunications service or basic network function;

(xiv) "Universal service" means the general availability of essential telecommunications service at an affordable and reasonable price;

(xv) "Video dial tone service" means the transmission of entertainment video programming and other forms of two-way, interactive video programming using a common video dial tone platform.

(b) In determining the number of access lines of a telecommunications company for purposes of this chapter, the number of access lines of all affiliated telecommunications companies shall be aggregated in this state.

History: Laws 1995, ch. 181, § 1; W.S. 1977, § 37-15-103.

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§ 37-15-104 Services not regulated by this title.

(a) Except for contributions to the universal service fund required pursuant to W.S. 37-15-501 and the assessment levied pursuant to W.S. 37-2-106 through 37-2-109, telecommunications service does not include, and the provisions of this title do not apply to:

(i) One-way transmission of radio or television signals for broadcast purposes, including the one-way transmission of video programming by a cable television or other system as well as subscriber interaction which is required for the selection of video programming;

(ii) Except as provided in this paragraph, home and business and coinless, or coin operated public or semipublic telephone terminal equipment, and the use, location and charges for the use of such equipment. The commission may regulate the location of and charges for coinless or coin operated public or semipublic telephone terminal equipment in areas of the state which the commission finds are not subject to competition for such equipment;

(iii) Any billing and collection services;

(iv) Any inside wire and premise cable installation and maintenance;

(v) Directory services, except as provided in W.S. 37-12-130;

(vi) Except for the quality of cellular service to the extent not preempted by federal law, telecommunications services using radio spectrum or cellular technology;

(vii) Video dial tone and multimedia services;

(viii) Private telecommunications networks, which for the purposes of this act shall mean a system for the provision of telecommunications service by a person or entity for the sole and exclusive use of the person or entity and not for resale directly or indirectly;

(ix) Nonvoice data services not operated by a company providing local exchange service;

(x) Networks established by a person other than the local exchange company providing essential telecommunications services within the local exchange area to provide access to interexchange carrier services;

(xi) Except as provided in this paragraph, direct inward dial services and other services needed by answering services and paging services. To the extent not preempted by federal law or regulation the commission shall regulate direct inward dial services and other services needed by answering services and paging services as noncompetitive services in any local exchange area until there are at least two (2) telecommunications companies effectively offering direct inward dial and other needed services to the answering services and paging services serving that local exchange area;

(xii) Remote meter reading; and

(xiii) Any other telecommunications service that is not regulated by this title.

History: Laws 1995, ch. 181, § 1; W.S. 1977, § 37-15-104; 1997, ch. 110, § 1.

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§ 37-15-401
. Commission powers.

(a) In addition to the powers exercised pursuant to the provisions of W.S. 37-15-408, the commission has the power to:

(i) Investigate the methods and practices of any telecommunications company;

(ii) Require any telecommunications company to conform to the laws of this state and to all rules, regulations and orders of the commission not contrary to law;

(iii) Make any rules and regulations, in accordance with the Wyoming Administrative Procedure Act, necessary for the commission to carry out its powers in this chapter, including rules objectively established and consistent with commonly accepted industry standards, where applicable standards exist;

(iv) Require reports and studies as to prices and terms and conditions of service, necessary and relevant for the commission's exercise of its authority, including those protected as trade secret or confidential based on legitimate competitive or other operational concerns;

(v) Hold hearings on complaints, or for good cause, upon notice and subject to the provisions of the Wyoming Administrative Procedure Act; and

(vi) Regulate telecommunications companies only as provided for in this chapter.

History: Laws 1995, ch. 181, § 1; W.S. 1977, § 37-15-401.

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