High Cost Study - FCC Impact Report

As directed by Act 169, as it amends 30 V.S.A. § 7515(b)(6), the PSD released the FCC Impact Report portion of its High Cost Study, titled Revenue Effects of FCC Reforms to Intercarrier Compensation and Federal Universal Service Mechanisms, on February 19, 2013.  The Department, in conjunction with the Public Service Board (“Board”), contracted the consulting firm Rolka Loube Saltzer Associates (“RLSA”) to conduct this FCC impact study as the first of a three part study into whether high cost services should be supported through the Vermont Universal Service Fund (“VUSF”).  This report concludes that while FCC actions will have an impact on ILEC revenues, until the regulated and non-regulated revenues are studied in further reports, due to be submitted to the legislature in March and April, respectively, the Department cannot make a recommendation regarding the activation of high cost voice support at this time.