12-C CPI Adjustments - ROW Access
ISSUES RELATED TO ~
EST ABLISMENT OF, AND ANNUAL ~
REVISIONS TO, ACCESS LINE RATES ~
FOR TEXAS MUNICIPALITIES ~
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PROJECT NO. 24640 2001 '", ><S"f.:/ }l.t:'.",
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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.
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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
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MICHAEL E. FIELD
DIRECTOR, DOCKET MANAGEMENT
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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.
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