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California Billing Surcharge (Rate Surcharge)

The rate surcharge was established to collect revenue for the CPUC ordered changes to AT&T/SBC Pacific Bell's revenue requirements until such time as individual rates for products and services are adjusted.  It applies a monthly percentage to all recurring and nonrecurring rates and charges for service or equipment provided under our tariffs. The surcharge has different rates for IntraLATA exchange service, IntraLATAtoll and IntraState access (products contained in CPUC 175T).

The effective rate as of 1/1/02 is: -1.7200% for exchange service, -1.7220% for toll service and -1.7260% for access service.

California High Cost Fund-A (CHCF-A)

The fund was adopted to provide financial support to small and mid-size Local Exchange Carriers (LECs) of which there are over 20 in California.  It subsidizes basic exchange rates for small and mid-size LECs and was originally imposed against Interexchange Carriers via an increment to the carrier common line rate.  Effective 1/1/95, it was imposed against same billing base as California Relay and Universal Lifeline Telephone Service surcharges (described below).

It applies a monthly percentage to each subscriber's intrastate services.

  • Regulated and Non-regulated charges

  • Includes recurring and nonrecurring rates and charges

  • Toll charges

  • California Billing Surcharge

  • Universal Service Fund Sur-credit

Interexchange Carrier's portion of bill carries surcharge portion covering intrastate service and calls carried by carrier.

The effective rate as of 1/1/02 is:  0.30%

California High Cost Fund-B (CHCF-B)

This surcharge is collected to fund "Carriers Of Last Resort" for a portion of its cost of providing service to residential customers in high cost (rural and suburban) areas. The subsidy allows basic service rates to remain low for primary lines and ensures basic service providers will have an incentive to continue to serve high cost areas.  It's mandated by the CPUC as part of introducing competition within local exchange companies' service territories. All telecommunications carriers within California are required to bill the CHCF-B surcharge that funds the California Universal Service Fund (CUSF). This is a statewide fund established to assess and reimburse "Carriers Of Last Resort" and the CPUC is administrator of the California Universal Service Fund (CUSF)

It applies a monthly percentage to the same billing base as the California High Cost Fund-A (CHCF-A)

The effective rate as of 11/1/01 is: 1.47%

More about Federal Excise Taxes ...
More about Local Telephone Taxes ...
More about the Federal Universal Service Fund ...
More about Charges for Network Access for Interstate Calling ...
More about Universal Lifeline Telephone Service Surcharge ...
More about Telephone Portability Fees ...