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Bluestem Telephone Co. v. Kansas Corp. Commission4/8/2005
the Matter of Federal-State Joint Board on Universal Service, 12 FCC Rcd 8776, 8933 (1997), affirmed in part and reversed in part Texas Office Public Utility Counsel v. FCC, 183 F.3d 393 (5th Cir. 1999).
But we are not satisfied that this takes care of the issue. K.S.A. 66-2008(e) was enacted after the Commission's ruling on how KUSF payments will be calculated. In oral arguments, the Commission conceded the district court's interpretation of the statute will affect the size of the fund and the competitively neutral manner in which it is to be distributed. We believe the Commission must take a look at this matter again especially in light of our ruling upholding the district court's interpretation of K.S.A. 66-2008(e).
We affirm the district court's interpretation of K.S.A. 66-2008(e) and uphold the part of the order striking down the per-line adjustment of KUSF for rural LECs. We vacate that portion of the district court's order interpreting K.S.A. 66-2009. We reverse that part of the order requiring the Commission to calculate KUSF payments to non-incumbent and non-Rate of Return carriers based on the individual company's embedded costs and remand the issue to the Commission for further proceedings concerning the competitive neutrality of the KUSF distribution in light of our interpretation of K.S.A. 66-2008 (e).
Affirmed in part, vacated in part, reversed in part, and remanded with directions.
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