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Texas USF Surcharge May Jump to 24% From 3.3%

Texas commissioners will weigh increasing the state USF surcharge to 24% from 3.3% at Thursday's meeting, the Texas Public Utility Commission said Wednesday. The Texas USF (TUSF) revenue-based surcharge would increase effective Aug. 1, said a memo in docket 50796-58.…

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The PUC attributed the increase to reduction of intrastate voice revenue. “Currently, the fund is losing $10 to $11 million per month and the fund currently is in arrears $192 million,” it said. “Additionally, this fiscal year the commission is completing rate of return adjustments for some small and rural ILECs to increase their support payments, which could add an additional $18 million in expenditures per year.” A state court said last month the Texas PUC violated the state’s constitution and utility and administrative procedure laws when in June 2020 it chose not to increase the surcharge to fully fund TUSF (see 2207120028).