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<br /> <br />Public Utility Commission 0' Texas <br /> <br />1701 N. Congress Ave., PO Box 13326, Austin, TX 78711-3326 <br /> <br />2007 CONSUMER PRICE INDEX ADJUSTMENT TO MUNICIPAL <br />TELECOMMUNICATIONS RIGHT-OF-WAY ACCESS LINE RATES <br /> <br />March 20, 2007 <br />PURPOSE <br /> <br />This letter is to notify you that your city's 2006 maximum access line rates have increased by 1.7% due to <br />inflation, also known as CPI. This adjustment has been made pursuant to Chapter 283 of the Local <br />Government Code (House Bill 1777) <br /> <br />DEFAiJLT RATES FOR 2007: INCREASE <br /> <br />Based on the choices made by your city in April 2006, your city's 2007 rate will be adjusted for <br />inflation, or will remain the same as your 2006 rate. According to our records, when similar CPI <br />adjustments were made in April 2006, your city chose the MAXIMUM allowable CPI-adjusted rates. <br />Therefore, your 2007 rates will reflect an increase of 1.7% from your 2006 rates. You have the option <br />to decline this increase in rates by taking the action explained below. <br /> <br />ACTION BY CITY: TO REFUSE THE INCREASE <br /> <br />(1) You do not have to respond to accept the increased access line rates. (2) Respond ONLY if you <br />want to DECLINE the increase in access line rates. (3) To decline, notify the PUC using page 2 of this <br />letter no later than April 30, 2007. (4) The PUC does not require City council authorization; however, if <br />your city charter requires it, please do so immediately. (5) Verify your contact information and <br />highlight any changes. (6) Make a copy of this document. <br /> <br />WHA T HAPPENS IF A CITY DOES NOT RESPOND BY APRIL 30, 200n <br /> <br />If a city does not respond by April 30, 2007, the rates for your city will increase from 2006 levels. <br />The next opportunity to adjust your rates will be September 1,2007. <br /> <br />WHAT HAPPENS NEXT'? <br /> <br />The rue will notify telephone companies of your desired rates and you will be compensated <br />accordingly no later than July 1,2007. <br /> <br />FUTURE REVISIONS TO CPI <br />The access line rates will be revised annually in March depending on whether the CPI changes for the <br />previous year. If the CPI changes for the year 2007, you will receive a similar letter in March 2008. <br /> <br />See over... <br /> <br />,..-.-...,. <br />