There are approximately 3.5 million customers enrolled California LifeLine, which provides discounted telephone service to qualifying low-income consumers. This program was formerly known as Universal Lifeline Telephone Service or ULTS.

Every year, consumers who are enrolled in California LifeLine must show the Public Utilities Commission (CPUC) that they are eligible to remain on the program. This recertification process used to be done by the telephone companies, but as of July 2006 that task was assigned to a third-party company hired by the CPUC. As a result of this change, the new name was not recognized by customers. Hundreds of persons alleged they never received the form and others alleged they did return it in a timely manner and were also disqualified.

Consumers found themselves in the midst of an impossible web of problems that they were unable to untangle. Phone companies were unable to help because the process had been taken out of their hands, the PUC failed to respond because it was inundated with walk-in victims and an overload of phone calls. The result was that many consumers were simply removed from the program and charged basic telephone rates and switching fees they could not afford.

On November 9, 2006, the CPUC temporarily suspended the recertification process for up to six months to allow for time to correct the problem. Consumers who were removed from California LifeLine were ordered placed back on California LifeLine service and their bills credited accordingly.

The PUC states it is “also working to correct any problems for new customers who may be eligible for California Lifeline when they sign up for service,” but it fails to address how. Typically, the PUC commissioner majority has said market competition will take care of whatever problems consumers are facing. In this case, the PUC answer to this gigantic mess is to develop, print and disseminate “outreach” materials and refer consumers to a PUC website showing them how to choose phone service.

Results:

Tremendous cost for the 3^rd party administrator paid by our tax dollars;

· Creation of new materials with related costs and dissemination of materials to give the administrator a chance to remedy all of the mistakes or confusion caused;

· PUC staff time to address the issue with workshops and personal appearances;

· The necessity of creating a new managerial position at the PUC just to deal with this issue;

· Mounds of paperwork that the PUC is not staffed to process;

· Tremendous amounts of time spent by phone companies receiving calls for help when the Lifeline program is no longer their responsibility; and

· Newly printed materials, envelopes and forms mailed to consumers to remedy the errors were paid for by taxpayers.

If you were an existing California ULTS/Lifeline customer and are having problems getting recertified in the program, share your experience, and contact us here.