Press Release

PUC Expands Eligibility for Phone Discount Plan

Published on 5/19/2005

Filed under: Telecommunications

HARRISBURG – Families who receive free lunches through the National School Lunch Program will now be eligible to participate in the federal plan that provides discounted phone service to low-income customers, based on expanded eligibility requirements adopted today by the Public Utility Commission (PUC).

            Under the Lifeline 135 program, telephone customers who participate in certain public assistance programs or who meet income criteria can receive a discount on their basic service of about $8 per month. The discounts are paid out of the federal Universal Service Fund, which all telephone customers contribute to.

            Under the previous program, customers had to satisfy a two-pronged standard in order to receive the Lifeline credit. They had to meet an income requirement and participate in one of several assistance programs.

            Under the new criteria, customers have to meet only one of the requirements to receive the discount. They must participate in at least one social program or have a family income which is at or below 135 percent of the federal poverty guidelines, currently $23,920 for a family of four.

            Social programs include Medicaid, General Assistance, Supplement Security Assistance, food stamps, federal public housing assistance, Low-Income Home Energy Assistance Program (LIHEAP), the state’s Temporary Assistance to Needy Families and the state Blind Pension. Today’s order adds the free lunch program.

            The PUC adopted the expanded criteria in order to align the program with recent changes in state law and in Federal Communications Commission Lifeline regulations, which are intended to encourage more families to participate in the program.

            Statistics show that approximately 1.7 million Pennsylvanians receive Medicaid and 500,000 students qualify for free school lunches. It is unknown at this time how these numbers may translate into creating more families who are eligible for Lifeline. But in 2003 only about 137,000 eligible Pennsylvania families, or 16 percent, took advantage of the Lifeline credit.

            In order to increase awareness about the program, the PUC is directing phone companies to explain the program to all new customers when they first sign up for service. In addition, companies must include Lifeline information in customer bills at least twice a year. Customers can get more information about Lifeline by contacting their local phone company.

            For more information about the PUC, visit our website at www.puc.state.pa.us. The PUC ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as stewards of competition.

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Docket No. M-00051871

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