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12-C CPI Adjustments - ROW Access ISSUES RELATED TO ~ EST ABLISMENT OF, AND ANNUAL ~ REVISIONS TO, ACCESS LINE RATES ~ FOR TEXAS MUNICIPALITIES ~ r\ ..... ;. /' ,.. PROJECT NO. 24640 2001 '", ><S"f.:/ }l.t:'.", !fAY ,;) PUBLIC UTILl1'.yi~9l\1ins~~ i/I/';". 22 '-'Ai" I c", OF TEXAS v CLfRl',vv,c' " 'i ORDER SETTING CPI-ADJUSTED CITY-PREFERRED ACCESS LINE RATES FOR YEAR 2007 This Order administratively approves City-preferred access line rates for the Year 2007. Pursuant to P.U.c. SUBST. R. 26.467(j) and TEX. Loc. GOV'T CODE 9283.055(g), Texas cities are allowed to annually revise their access line rates by an amount equal to one-half the annual change in the most recent consumer price index (CPI). For the year 2006, this amount equals I. 7%. On March 15, 2007, the Public Utility Commission of Texas (Commission) issued an Order approving a 1.7% increase in maximum access line rates for Texas cities with Commission-approved rates. However, since several cities adopt less than maximum rates, the Commission also ordered that: · A municipality whose 2006 city-preferred access line rate(s) is below its 2006 CPI-adjusted maximum access line rates will remain at its 2006 city- preferred rate(s) unless it provides notification to the Commission of its desired rates no later than April 30, 2007. · For a municipality whose 2006 city-preferred access line rate(s) is equal to its 2006 CPI-adjusted maximum access line rate(s), the new 2007 city- preferred access line rate will be set equal to the new 2007 CPI-adjusted maximum access line rate(s) unless the municipality provides a notification to the Commission of its desired rate(s) no later than April 30, 2007. In response to that Order, several cities have responded to Staff either by affirming the Commission's default rates or by declining the Commission's default rates and choosing different rates. /# , Project No. 24640 Order Page 2 The Commission issued an order delegating authority to Staff to administratively approve revisions to access line rates on October 23, 2001. This Order is being issued pursuant to that authority. Attachment A contains the year 2007 city-preferred access line rates, incorporating any adjustments requested by the cities. These rates shall be implemented prospectively no later than July 1, 2007. SIGNED AT AUSTIN, TEXAS the JD~4day of May 2007. PUBLIC UTILITY COMMISSION OF TEXAS ~f J;41 MICHAEL E. FIELD DIRECTOR, DOCKET MANAGEMENT p:\hb 1777\2007cpi\finalorder2007.doc c2. Public Utility Commission 0' Texas 1701 N. Congress Ave., PO Box 13326, Austin, TX 78711-3326 2007 CONSUMER PRICE INDEX ADJUSTMENT TO MUNICIPAL TELECOMMUNICATIONS RIGHT-OF-WAY ACCESS LINE RATES March 20, 2007 PURPOSE This letter is to notify you that your city's 2006 maximum access line rates have increased by 1.7% due to inflation, also known as CPI. This adjustment has been made pursuant to Chapter 283 of the Local Government Code (House Bill 1777) DEFAiJLT RATES FOR 2007: INCREASE Based on the choices made by your city in April 2006, your city's 2007 rate will be adjusted for inflation, or will remain the same as your 2006 rate. According to our records, when similar CPI adjustments were made in April 2006, your city chose the MAXIMUM allowable CPI-adjusted rates. Therefore, your 2007 rates will reflect an increase of 1.7% from your 2006 rates. You have the option to decline this increase in rates by taking the action explained below. ACTION BY CITY: TO REFUSE THE INCREASE (1) You do not have to respond to accept the increased access line rates. (2) Respond ONLY if you want to DECLINE the increase in access line rates. (3) To decline, notify the PUC using page 2 of this letter no later than April 30, 2007. (4) The PUC does not require City council authorization; however, if your city charter requires it, please do so immediately. (5) Verify your contact information and highlight any changes. (6) Make a copy of this document. WHA T HAPPENS IF A CITY DOES NOT RESPOND BY APRIL 30, 200n If a city does not respond by April 30, 2007, the rates for your city will increase from 2006 levels. The next opportunity to adjust your rates will be September 1,2007. WHAT HAPPENS NEXT'? The rue will notify telephone companies of your desired rates and you will be compensated accordingly no later than July 1,2007. FUTURE REVISIONS TO CPI The access line rates will be revised annually in March depending on whether the CPI changes for the previous year. If the CPI changes for the year 2007, you will receive a similar letter in March 2008. See over... ,..-.-...,.