COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON STREET
PHOENIX, AZ 85007

TO: EDITORS, NEWS DIRECTORS

DATE: March 23, 1998

FOR: IMMEDIATE RELEASE

CONTACT: Stephen Ahearn (602) 542-0844

RECENT FCC RULING PERMITS EXPANDED
LIFELINE PROGRAM ADOPTED BY THE COMMISSION
TO GO INTO IMMEDIATE EFFECT IN ARIZONA

In a recent Order issued on March 2, 1998, the Federal Communications Commission ("FCC") ruled that the Lifeline low-income telephone assistance program adopted by the Arizona Corporation Commission ("Commission") in December, 1997, could go into effect immediately in Arizona.

Under the Lifeline program adopted by the Commission, low-income customers need only participate in one of the following programs to be eligible for a monthly phone bill credit of $5.25 in the future: 1) Medicaid, 2) Food stamps, 3) Supplemental Security Income ("SSI"), 4) Federal public housing, or 5) the Low Income Home Energy Assistance Program.

Arizona has two other assistance programs for low-income telephone customers: the Arizona Low-Income Telephone Assistance Program ("ALITAP") for low-income senior citizens; and the Telephone Assistance Program for low-income medically needy customers who are served by U S WEST.

Regarding the recent FCC action, Commissioner-Chairman Jim Irvin stated, "Due to the Commission's efforts, just over 176,000 low-income Arizonans statewide will qualify for telephone assistance of $5.25 per month in the future retroactive to January 1, 1998. The Commission's efforts have brought the expanded plan to Arizona at least seven months earlier than contemplated by the original FCC Order. I encourage all qualifying low-income Arizonans to take advantage of this important program."

The FCC's favorable ruling on the Commission's request also means that ALITAP customers will see an increase from $4.56 per month to $8.67 per month in combined federal and state support, using U S WEST's rates as an example. U S WEST's TAP customers will continue to receive the same level of support they receive today.

For more information on these low-income telephone assistance programs, customers should contact either the Commission's Consumer Service Section at (800) 222-7000 or your local telephone company.