Why did the PUC implementing an OUS fund surcharge?
The PUC was directed by the 1999 Oregon Legislative Assembly to create and implement the OUS fund and pay for it with a surcharge on all retail telecommunications sales in Oregon. The fund is designed to support carriers that provide basic telephone service in high-cost rural areas in Oregon. The purpose is to ensure that basic telephone service is available at reasonably comparable and affordable rates throughout the state. In the past, basic telephone service rates in high-cost rural areas were supported through implicit subsidies included in other telephone rates such as those for toll and business services. The OUS fund replaces that implicit subsidy with an explicit subsidy. Creating an explicit state fund at this time allows the industry to move toward cost-based rates without adversely affecting rates in rural areas. The fund is also designed to remove any competitive advantages between incumbent providers and new providers entering the market.
