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

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

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

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

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

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

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

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

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

10. If you have questions: