The New York State Public Service Commission moved today to set up a State Universal Service Fund (SUSF) that will provide four years of funding to keep residential local telephone service available in the state’s high-cost rural areas.
The SUSF will be able to provide up to $17 million in funding from 2013 to the end of 2016. Its approval comes under the terms of a joint proposal supported by the state Department of Public Service, the Utility Intervention Unit of New York’s Department of State, and Verizon, as well as the state’s small telephone, cable, and wireless companies.
“While the telecommunications environment has become more diverse, competitive, and continues to evolve, the commission remains dedicated to ensuring the availability of affordable basic residential telephone service throughout New York state,” Public Service Commission Chairman Garry Brown said in a news release. The commission said the fund will ease pressures to increase local telephone rates.
The SUSF will make $5 million available in 2013 and $4 million available each year from 2014 to 2016. A total of 31 local exchange companies will be eligible for funding after demonstrating need in rate cases.
In 2016, the Public Service Commission plans to review whether a successor fund to the SUSF should be established. The SUSF is a replacement for an expiring funding mechanism known as the Transition Fund.
Contact Seltzer at rseltzer@cnybj.com