ORS 759.425, requires the Public Utility Commission of Oregon (PUC) to establish and implement a competitively neutral and nondiscriminatory Oregon Universal Service (OUS) fund. The purpose of the fund is to ensure that basic telephone service is available at a reasonable and affordable rate. The PUC’s investigation into the design and implementation of the OUS fund was docketed as UM 731. See UM 731 Orders 95-1103, 98-094, 98-430, 99-197, 00-312, 00-638, 00-760, 01-752 and 01-1063.  The PUC expanded the OUS fund to include rural local exchange carriers (LECs) in docket UM 1017.  See UM 1017 Order 03-082.

Basic telephone service means retail telecommunications service that is single party, has voice grade or equivalent transmission parameters and tone-dialing capability, provides local exchange calling, and gives the customer access to but does not include (a) extended area services, (b) long distance services, (c) relay services, (d) operator services, (e) directory assistance services, and (f) emergency 9-1-1 where available. See OAR 860-032-0260.

The OUS fund mechanism is designed to complement the federal Universal Service High-Cost Fund mechanism. All telecommunications service providers (TSPs) in Oregon shall contribute to the OUS fund. Only LECs certified and designated eligible by the PUC may receive distributions from the fund. The amount of distribution is based on the difference between the cost of providing basic telephone service and a PUC-set benchmark, less any explicit compensation received by the provider from federal sources specifically targeted to recovery of local loop costs and less any explicit support received by the provider from a federal universal service program. See ORS 759.425(3).

Implementation of the OUS fund requires that TSPs complete two types of OUS worksheets—OUS 1 and OUS 2. The OUS 1 Worksheet identifies the TSP, the contact person, and the mailing address. It also certifies the accuracy of the information provided on the worksheets. All TSPs must file the OUS 1 Worksheet to establish the provider’s identification information on the administrator’s database. The provider must file a corrected worksheet whenever changes occur to its business, organization structure, mailing address, contact person, or certifying officer (or designated manager). In addition, the OUS administrator shall request updated provider identification information annually so that the current identification information on the administrator’s database is not older than 12 months.

The OUS 2 Worksheet provides quarterly gross revenue information and is used for computing quarterly contributions. It also provides the retail end-user revenue base for the development of the OUS contribution and surcharge rates. All TSPs operating in Oregon must file the OUS 2 Worksheets with the OUS administrator within 40 days of the close of each quarter (i.e., by the tenth day of the second month following the close of the quarter). Even if there is zero revenue to report, the OUS 2 Worksheet must be filed. The certifying officer or designated manager must sign and date the revenue worksheet.

The OUS 3 Worksheet identifies basic telephone service access line counts by wire center support area. It provides the basis for calculating the size of the OUS fund and the monthly distribution of support to high-cost areas. Only eligible LECs, as designated by the PUC, must file the OUS 3 Worksheet with the administrator within 40 days of the close of each month (i.e., by the tenth day of the second month following the close of the current month). The certifying officer, or designated manager must sign and date the last page of the line count worksheet.

To become eligible to receive OUS support, new entrants must file an application with the PUC. The eligibility application is filed on the OUS 4 Worksheet.