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PUCN approves initial draws from Nevada Universal Service Fund for two small telephone companies; commissioner questions sustainability

December 31, 2024 | Public Utilities Commission of Nevada, Independent Boards, Commissions, or Councils, Organizations, Executive, Nevada


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PUCN approves initial draws from Nevada Universal Service Fund for two small telephone companies; commissioner questions sustainability
The Public Utilities Commission of Nevada granted applications from two small telephone providers for initial disbursements from the Nevada Universal Service Fund and approved related rate design proposals, actions the Commission approved by voice vote.

Hearing Officer Crano presented docket 24-06007 (Moapa Valley Telephone Company), recommending that the company’s basic service rates be set at $23 for residential lines and $38 for business lines and that the company be awarded an initial draw "460 $6,239" from the Fund to maintain telephone availability beginning in 2025. Crano told commissioners he "didn't feel comfortable doing that math" and issued a compliance item directing the parties to calculate and confirm the exact draw amount. Crano also asked the Commission to open an investigatory docket to review the future of the Nevada Universal Service Fund.

Commissioner Brown raised concerns about the Fund’s sustainability. "The request from Moapa, for a draw is 58% of their revenue requirement, which I don't know that the fund ever contemplated numbers that high," Brown said, and warned the Fund base is shrinking while requests increase.

The Commission then considered docket 24-06008 (Filer Mutual dba TrueLeap Technologies). Crano proposed awarding TrueLeap an initial draw of $79,988.25 (subject to minor adjustments for tax effects). Commissioner Brown observed the initial request represented a large share of that company's revenue requirement as well — the transcript records his comment that the request was about 77% of the total requirement — and reiterated the need for an investigatory docket to examine the Fund's long-term viability.

Chair Haley Williamson moved to grant the applications with the hearing officer's proposed modifications; the motions were seconded and carried with all commissioners voting "Aye." The hearing officer’s orders will include compliance items to verify final draw calculations and an investigatory docket to study the Nevada Universal Service Fund.

Details: The transcript records the Moapa rates ($23 residential, $38 business), the hearing officer’s preliminary draw figure for Moapa (spoken as "460 $6,239") and Crano’s proposed $79,988.25 initial draw for TrueLeap, with both amounts described as subject to final calculation and minor tax adjustments.

What’s next: The Commission approved the orders and directed compliance steps for exact calculations, and a proposed investigatory docket will examine the fund’s structure and sustainability.

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