The California Privacy Protection Agency lacks authority to regulate AI, business groups protested during a partially virtual CPPA hearing Tuesday. They urged that the agency pump the breaks on proposed rules for automated decision-making technology (ADMT) and other changes to privacy regulations under the California Consumer Protection Act (CCPA). However, workers’ rights groups and consumer privacy organizations urged that it proceed with increasing privacy rules.

The Arizona Corporation Commission should pull back regulations on Frontier Communications while eliminating Arizona Universal Service Fund (AUSF) subsidies for the wireline carrier, Frontier and commission staff argued at a livestreamed hearing Monday. Meanwhile in Connecticut, Frontier pushed back against a proposed $2.48 million fine for missing certain state service-quality metrics.

Frontier Communications would no longer receive Arizona Universal Service Fund (AUSF) subsidies under a proposed settlement in a ratemaking docket at the Arizona Corporation Commission. Frontier and ACC staff filed the pact Friday in docket T-03214A-23-0250. Frontier is the only company in the state receiving this high-cost support. If the proposal is approved, Frontier will forgo collecting any further AUSF funding as well as about $104,000 it's currently owed. In addition, the agreement would adjust Frontier basic service rates that were last revised in 1989. It would designate certain basic telecom services as competitive and deregulate other tariffed intrastate telecom services. Frontier would offer the basic services through a price-cap rate structure. The agreement said "appropriate ACC oversight of Frontier's regulated services” will continue. In March, Arizona commissioners refused hiking monthly AUSF surcharges because they said they wanted to address the issue in the Frontier ratemaking docket.

The entire Arizona Corporation Commission refused hiking monthly surcharges on customer bills for the state’s high-cost fund, despite projections that the Arizona Universal Service Fund (AUSF) will soon run out of cash. The ACC's lone Democrat joined four Republican commissioners in voting against increased surcharges during a livestreamed meeting Tuesday. Staff warned last month that the AUSF would be depleted by the end of April, meaning no more payments starting May for funding AUSF administrator Solix or Frontier Communications, the only company in the state receiving this high-cost support (see 2402280038). Frontier supported staff’s proposal to increase the monthly surcharge on customer bills. However, Arizona commissioners said during the livestreamed meeting that they preferred addressing the issue through an upcoming Frontier rate case planned for this fall. Commissioner Kevin Thompson (R) can’t support increasing the AUSF fee, he said. “Let’s look at this in the rate case and have a broader discussion on the merits of the AUSF as we go forward.” Arizona commissioners also declined raising AUSF contribution rates in 2022 and 2023 (see 2312050032).

Arizona Corporation Commission staff warned Tuesday that the Arizona Universal Service Fund (AUSF) could exhaust its money unless the commission increases contribution rates. Commissioners could vote March 12 on a staff-proposed order to raise fees. AUSF administrator Solix told commission staff “that although there were enough funds collected to fund the AUSF for January, February and March 2024, Solix has calculated that it's anticipated, by the end of April, the AUSF fund balance would be depleted and that the fund will not be able to pay the Commission-approved and contractual obligations to [Frontier Communications] and Solix, respectively, beginning in May 2024,” said a Tuesday (docket RT-00000H-97-0137). For basic local exchange and wireless service providers that interconnect with the public switched network, staff recommended increasing the monthly surcharge to 3.4 cents per access line, up from 2 cents, and to 34 cents per interconnecting trunk line, up from 20 cents. For intrastate toll service providers, Arizona commission staff recommended increasing the monthly surcharge to 45% of revenue, up from 34.1%. The new rates would start April 1 and would result in a $200,000 fund balance by year-end, a “reasonable level” that would “potentially eliminate the need to revise the AUSF surcharge rates again for 2024,” staff said. Arizona commissioners declined raising AUSF contribution rates in December (see 2312050032). Frontier is the only company receiving AUSF high-cost support.

A Frontier Communications rate case in Arizona can move forward, Arizona Corporation Commission staff said. Frontier’s application and schedules were filed Aug. 30, covered Arizona's White Mountains region and met the commission’s sufficiency requirements, Utilities Division Telecom and Energy Chief Barbara Keene wrote to the company Monday. Separately, staff asked an administrative law judge to set a procedural schedule that would extend into next fall. Under that schedule, staff and intervenor direct testimony on competitive classification and nonessential service determinations would be due May 3; their testimony on service cost, rate design and state USF issues would be due May 31. Frontier’s rebuttal would be due July 26, staff and intevenors’ rebuttal Aug. 23 and Frontier’s rejoinder Sept. 6. Staff suggested a prehearing conference Sept. 11 and a hearing Sept. 23. “Staff believes that the proposed schedule is reasonable in light of the potential number of issues presented in this case,” it said. ALJ Julia Matter in a Tuesday order scheduled a teleconference for Jan. 2 at 10 a.m MST to discuss procedure and next steps (docket T-03214A-23-0250). Frontier is the only company receiving Arizona USF high-cost support. The commission earlier decided to delay possible sweeping USF changes due to the upcoming Frontier rate case (see 2303160069). Commissioners declined to raise USF contribution rates earlier this month (see 2312050032).

Arizona commissioners questioned state USF accountability as they unanimously declined Tuesday to raise contribution rates. During a livestreamed meeting, commissioners voted 5-0 against staff’s proposed decision to raise state USF charges for 2024 (docket RT-00000H-97-0137). In addition, members unanimously granted a Verizon application to discontinue MCIMetro basic local exchange services to residential and small business customers throughout its service territory on Dec. 31 (docket T-03574A-23-0243).

Telecom companies raised concerns about adding state USF goals on service quality and other issues in comments posted Monday at the Nebraska Public Service Commission. And as the PSC considers sweeping Nebraska USF (NUSF) changes, Charter Communications warned that it might be unlawful to support broadband with a fund designed for telecom services. Small rural companies said the fund should support ongoing costs that make networks expensive in remote areas even after they are deployed.

The Arizona Corporation Commission will wait to change or repeal state USF, said a 5-0 decision released Thursday in docket T-00000A-20-0336. Staff recommended last month waiting for a Frontier Communications rate case coming Aug. 30 (see 2302070057).

The White House withdrew Gigi Sohn’s FCC nomination from Senate consideration Tuesday at her request, ending what had become an often fractious year-plus confirmation process that involved President Joe Biden naming her three times (see 2301030026). Sohn’s announcement followed shortly after Sen. Joe Manchin of West Virginia announced he'd be the first Senate Democrat to formally oppose her confirmation, but the former nominee and her supporters confirmed she reached her decision Monday. Sohn’s supporters grieved her withdrawal and strongly criticized her opponents inside and outside the communications sector for engaging in an unprecedented campaign of character assassination.