This surcharge is imposed by the Public Utilities Commission on telecommunication providers and may be passed on to customers to provide telecommunication service in high cost service areas.
This charge was established by state law and implemented by the PUC. It provides additional money to reimburse the states local telephone companies that serve areas with higher than average costs. This allows local phone rates to remain reasonably comparable across the state. The state fund is necessary because local carriers receive only about 40 percent of their high-cost support from the federal Universal Fund. The PUC reviews this charge on a quarterly basis and makes adjustments as necessary.