Universal Service: Lessons from Other States

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Presentation transcript:

Universal Service: Lessons from Other States Roger D. Colton Fisher, Sheehan & Colton Public Finance and General Economics 34 Warwick Road, Belmont, MA 617-484-0597 (voice) *** 617-484-0594 (fax) September 2001

Essential Elements of a Universal Service Program Rate affordability assistance Arrearage forgiveness Crisis assistance Energy efficiency Performance measurement

Some Essential Keys to Workable Universal Service Set ideology aside! Perfect not the enemy of the good What works vs. what’s “best”

Rate Affordability Assistance Needs To Be burden-based Address payment-troubles Recognize the “paid but unaffordable” bill Be tariff-based assistance

Arrearage Forgiveness Needs To Be affordability-based Administratively practicable Allow for customer contribution

Crisis Assistance Needs To Be shutoff free if agreed payments made Recognize economic fragility A “reasonable amount” set aside.

Energy Efficiency Needs To Be integrated with rate affordability. Minimize lost opportunities program-wide. Minimize lost opportunities per each household.

Performance Measurement Needs To Collect adequate performance data Be outcome based Affordability-based (not merely payment-based)

Source of Funding Not shareholder contributions May but need not be legislative Not merely residential responsibility

If you have questions: roger@fsconline.com