CPUC Returns to Weighing IPCS Intrastate Rates After FCC Order
The California Public Utilities Commission should consider recent federal actions on incarcerated people's communications services (IPCS) before adopting a permanent intrastate rate cap, industry and consumer groups argued in comments posted Wednesday. However, The Utility Reform Network (TURN) and Center for Accessible Technology (CforAT) suggested lowering the cap again on an interim basis. The CPUC received comments Tuesday on a Sept. 30 staff proposal recommending a permanent intrastate rate cap of 4.5 cents per minute for IPCS voice calls.
The permanent cap proposal would be about 36% lower than the current 7 cent cap that the state commission adopted on an interim basis in July 2021 (docket R.20-10-002). Staff’s plan would also make permanent the current cap on ancillary fees (see 2409300051). The CPUC is considering IPCS prices months after the FCC reduced rates as part of its implementation of the Martha Wright-Reed (MWR) Act of 2022 (see 2407180039). Reply comments in the CPUC proceeding are due Nov. 19.
Congress granted the FCC power to set intrastate IPCS rates, "sharply reducing the need for states to regulate in this area,” Securus commented. "Even if a state seeks to set its own rate caps for intrastate services, the MWR Act requires that rate caps be set at levels that aren't only just and reasonable, but that also fairly compensate all providers for completed intrastate and interstate calls." Also, the CPUC shouldn’t set limits "until it has conducted a systematic collection and analysis of relevant IPCS cost data,” said the IPCS provider: The staff-proposed rate cap of 4.5 cents isn't based on cost data.
The CPUC should refresh the record to consider the FCC's recent action, consumer groups TURN and CforAT commented jointly. "While the FCC’s work is ongoing, the federal agency has issued permanent price caps on IPCS voice calling and the data analysis performed while setting these rate caps may be of value to the [CPUC]." That doesn’t mean the CPUC can’t lower the cap now, said the consumer groups: Just keep calling it interim. "Time is of the essence to mitigate any harm that these high interim rates are causing incarcerated persons, their families, and their loved ones."
NCIC Inmate Communications opposed lowering the cap below the current 7 cents. The IPCS provider noted that the FCC adopted "a range of rate caps" between 6 and 12 cents in its order. Arguing that it’s “premature” to adopt the CPUC staff proposal, the company urged the CPUC to first set up a mechanism for IPCS providers to submit cost data confidentially.
It’s too soon to consider the staff proposal, which “relies on inappropriate and outdated information," agreed ViaPath. First, the IPCS provider said, more testimony, discovery, workshops and more are needed. If the CPUC decides to move ahead without that process, then it should make permanent the existing 7 cent cap or rely on the FCC's recently adopted caps, the company said.
The CPUC should adopt a permanent cap “to lessen the financial hardship all incarcerated individuals and their families experience in their efforts to maintain their relationships,” said the agency’s independent Public Advocates Office. However, PAO recommended adopting a 3.5 cent permanent rate cap, which is a penny lower than the staff proposal. Also, PAO said the CPUC should align with the FCC order by prohibiting providers from charging separate ancillary service fees.
PAO noted that the California Department of Corrections and Rehabilitation (CDCR) currently has a 2.5 cent cap through a contract with ViaPath. A 3.5 cent cap "would cover the cost of service as illustrated by" the ViaPath contract with CDCR "and would provide $0.01 to cover reimbursement of used and useful facility costs allowed by the FCC."