California Public Utilities Commission Releases Staff Report On Universal Service Surcharge Mechanisms,

The California Public Utilities Commission (CPUC) released a ruling and staff report on "Equity and Transparency of Fees, Taxes and Surcharges Assessed on Customers of Telecommunications Services in California." The report found that the total number of communications subscribers in the state has increased substantially over the past decade. Yet, over the same period, the surcharges have yielded diminishing revenues.

The staff report concludes by saying with the review of the CPUC’s universal service surcharge mechanisms, as well as the universal service surcharge mechanisms of other states and the Federal Communications Commission, the CPUC is well-positioned to consider alterations or alternative funding mechanisms to address concerns with the declining intrastate billing base. Additionally, the fees that providers add onto consumer bills have increased significantly in recent years. Information obtained from for this report demonstrates an alarming issue: as providers have contributed less to programs that assist the public, they have increased fees that benefit their companies.