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B-226527 1 (1988-02-03)

handle is hein.gao/gaobadmzh0001 and id is 1 raw text is: ,Lc The Comptroller General of the United States Washington, D.C. 20548 Decision Surcharge of Utah Public Service Commission's Matterof- Lifeline Telephone Service Program. File: B-226527 Date: February 3, 1988 DIGESTS 1. United States Department of the Interior can pay a surcharge levied indiscriminately against the United States, commercial businesses, and private residences, pursuant to a Utah Public Service Commission lifeline telephone service program that provides discounted residential telephone rates for Utah residents eligible for various public assistance programs. Discrimination by a public utility in setting its rates is not unlawful when based upon a classification corresponding to economic differences among its consumers. 2. Surcharge assessed by telephone service providers to implement Utah Public Service Commission's lifeline tele- phone service program by which lower income individuals receive less expensive service is not a tax, but part of an authorized rate for telephone services. The surcharge represents a partial redistribution of costs incurred by telephone service providers whereby the poorer users pay less for their services. 64 Comp. Gen. 655 (1985) distinguished. DECISION A certifying officer with the National Park Service of the United States Department of the Interior asks whether a surcharge levied pursuant to the Utah Public Service Commission's Lifeline Telephone Service Program can be certified for payment. For the reasons given below, we find that the payment can be certified. BACKGROUND Effective January 1, 1987, the Utah Public Service Commis- sion established a program to provide discounted residential telephone rates for certain low income Utah residents. The program is known as the Lifeline Telephone Service Program. Utah Public Service Commission, SS R750-341 et seq. Beneficiaries are residents who are currently elgible for various public assistance programs, including Aid to .OaA / 1;CC1(,

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