Neb. Commissioners Launch 'Holistic' State USF Review

Nebraska will comprehensively reassess state USF rules, commissioners agreed at a Nebraska Public Service Commission meeting Tuesday. The all-Republican commission voted 5-0 to consider changes to the Nebraska USF (NUSF) high-cost distribution mechanism and associated reporting requirements (docket NUSF-139). The commission will seek feedback this fall.

The PSC’s impending NUSF review will require much work but is warranted, said Nebraska PSC Commissioner Tim Schram, who also chairs NARUC’s Telecom Committee. “As we continue to migrate our copper legacy networks to modern advanced communication networks … we really need to take a holistic look at our policies.” Schram said. Now is the right time to review all NUSF policies, Commissioner Kevin Stocker agreed at the partially virtual meeting.

The Nebraska PSC seeks comments by Sept. 29 on more immediate possible changes, with a hearing scheduled Oct. 24 at 1:30 p.m. CDT, said the 29-page approved order: The PSC wants broader NUSF overhaul comments by Nov. 17. “This proceeding is designed to take into account changes impacting the pace at which broadband services will be deployed and to investigate transitional mechanisms which will need to be in place to ensure that broadband networks are sustainable over the long term,” the order said. The commission noted it welcomes comments on USF items not addressed in the order, plans to "narrow the issues after comments have been filed” and may later seek more comments on specific proposals.

Nebraska isn't the only state with plans to review state USF in the coming months. The Pennsylvania Public Utility Commission opened a rulemaking last week to amend its state USF (see 2308240072). Commissions likely want to adjust programs to account for the minimum $100 million that states will receive from NTIA’s broadband equity, access and deployment programs, said NARUC General Counsel Brad Ramsay.

Responding to the COVID-19 pandemic, Congress appropriated more than $80 billion to address the digital divide nationwide, noted the Nebraska PSC’s Tuesday order. “Collectively, with state and federal universal service fund support, these funding streams will be designed to connect all unserved locations in the state with high-speed internet access over the next few years. Such events have, once again, precipitated a need to consider a review and potential changes to the NUSF program goals, the high-cost distribution mechanism, and the oversight needed to ensure that networks built in high-cost areas are sustainable over the long-term.”

The PSC “seeks comment on immediate interim reforms needed to account for" the FCC ending Form 477 broadband data reporting, the order said. The state commission proposed aggregating the FCC's newer, more granular broadband data collection to determine high-cost support distributions in the next calendar year. Also, the PSC sought comment on possible changes to its challenge process, since providers currently can use Form 477 data to show a census block is served. The agency asked if it should instead rely on carrier challenges to data in the FCC's national broadband map. And it asked about using a 100 Mbps download and upload speeds broadband definition when considering if an area is served, rather than 25/3 Mbps used now. The order notes the PSC already requires 100 Mbps speeds for projects funded through NUSF.

For another possible near-future change, the PSC asked if it should continue its reimbursement-based mechanism for making NUSF payments. "While the Commission believes this is a robust way to ensure accountability, an ancillary disadvantage is that the balance of the NUSF has built up significantly since the measures were implemented.”

The commission sought broader input, including "general comments on appropriate revisions and updates to its strategic plan relative to broadband funding, maintenance of reliable and affordable voice and broadband services, and oversight." The PSC asked if it should revise its NUSF strategic plan to include a broadband affordability goal and update another goal "to specifically ensure a certain level of quality access to broadband" and telecom services is provided. Also, the PSC asked if it should adopt reliability, sustainability, adaptability and cybersecurity goals. It noted the FCC declined to adopt such goals.

The PSC sought comment on seven objectives driving possible changes to the high-cost program, including to create "incentives for carriers to make new broadband investments and to update existing networks as they age" and to make "a transitional mechanism to support a more robust ongoing funding mechanism once broadband networks are deployed." It sought input on possibly revising "the portable support mechanism for competitive providers receiving grant funds for deployment of networks in high-cost areas" and enhancing consumer protections for accessing last-resort providers and quality services. The agency asked how to ensure rural areas have affordable rates and services that are reasonably comparable to those in urban areas. Commenters should additionally discuss possible oversight mechanisms to prevent "duplicative or excessive" NUSF funding and ways to simplify regulatory accounting and annual eligible telecom carrier recertification reporting, said the PSC.