The TAP charge funds a “Lifeline” program that is administered pursuant to a state rule that provides a credit to be applied against the recurring monthly rate for provisioning local residential service to eligible residential customers.
A fixed rate has been determined to fund this program and is charged to all business and residential customers by all local exchange carriers in the state.
The State Legislature established this fund, also known as the “Lifeline” program, in 1990. The program recognizes the need for all citizens to have access to a telephone for safety reasons. The fund is used to offset the costs of providing local service at a discounted rate for qualifying low-income customers. The PUC reviews this charge on an annual basis and adjusts the rate accordingly.