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2.10.2 Kentucky Universal Service Fund (KUSF)

In order to support funding of LifeLine service to low-income consumers, the Company will collect a monthly Kentucky LifeLine Support charge from its Customers for each local line provided by the Company. The charge per line is $0.08 per month.

3.4.2 Lifeline

The Lifeline program is designed to increase the availability of telecommunications services to low income subscribers by providing a credit to monthly recurring local service for qualifying residential subscribers. Basic terms and conditions are in compliance with the FCC’s Order on Lifeline and Link Up Reform and Modernization Order in WC Docket No. 11-42. Specific terms and conditions are as prescribed by the Kentucky Public Service Commission and are as set forth in this tariff.

Lifeline is supported by the federal universal service support mechanism.

Federal support of $9.25 is available for each Lifeline service and is passed through to the subscriber. An additional $3.50 credit is provided by the State. The total Lifeline credit available to an eligible customer in Kentucky is $12.75. The amount of credit will not exceed the charge for local service, which includes the access line, the Subscriber Line Charge and local usage.

3.4.3 Regulations

A. General

1. One low-income credit is available per household and is applicable to the primary residential connection only. The named subscriber must be a current recipient of any of the low-income assistance programs identified in Section 3.4.3(B) below.

2. A Lifeline customer may subscribe to any local service offering available to other residential customers. Since the Lifeline credit is applicable to the primary residential connection only, it may not be applied to a multiple line package local service offering.

3. Toll blocking, if elected, will be provided at no charge to the Lifeline subscriber.

4. The deposit requirement is not applicable to a Lifeline customer who subscribes to toll blocking. If a Lifeline customer removes toll blocking prior to establishing an acceptable credit history, a deposit may be required. When applicable, advance payments will not exceed the connection and local service charges for one month.

5. Lifeline service is exempt from the Installment Billing Service Fee.

6. The Federal Universal Service Charge will not be billed to Lifeline customers.

7. A Lifeline subscriber’s local service will not be disconnected for non-payment of regulated toll charges. Local service may be denied for non-payment of local calls. Access to toll service may be denied for non-payment of regulated tolls. A Lifeline subscriber’s request for reconnection of local service will not be denied if the service was previously denied for non-payment of toll charge.

8. A Lifeline customer must not already be receiving a Lifeline service and there must not be anyone else in the subscriber’s household subscribed to Lifeline.

B. Eligibility

To be eligible for a Lifeline credit, a customer must qualify under any one of the following conditions:

1. A current recipient of any one of the following low-income assistance programs.

a. Supplemental Security Income (SSI)

b. Supplemental Nutrition Assistance Program (SNAP) aka Food Stamps

c. Medicaid

d. Federal public housing

e. Low Income Home Energy Assistance Program (LIHEAP)

f. Temporary Assistance to Needy Families (TANF)

g. National School Lunch’s free lunch program (NSL); or

2. After 05/31/12, a household income at or below 135% of the Federal Poverty Guidelines for a household of that size; or

C. Certification

1. Proof of eligibility in any of the qualifying low-income assistance programs should be provided to the Company at the time of application for service. The Lifeline credit will not be established until proof of eligibility has been received by the Company. If the customer requests installation prior to the Company’s receipt of proof of eligibility, the requested service will be provided without the Lifeline credit. When eligibility documentation is provided subsequent to installation, the Lifeline credit will be provided on a going forward basis.

2. The Company reserves the right to periodically audit its records, working in conjunction with the appropriate state agencies, for the purpose of determining continuing eligibility. Information obtained during such audit will be treated as confidential information to the extent required under State and Federal laws. The use or disclosure of information concerning enrollees will be limited to purposes directly connected with the administration of the Lifeline plan.

3. When a customer is determined to be ineligible as a result of an audit, the Company will contact the customer. If the customer cannot provide eligibility documentation, the Lifeline credit will be discontinued.

4.3 Basic Local Service Rates (Cont’d.)

4.3.2 Lifeline Rates and Charges

A. General

Lifeline is provided as a monthly credit on the eligible residential subscriber’s access line bill for local service.

Service Charges in Section 4.2 are applicable for installing or changing Lifeline service.

The Secondary Service Charge in Section 4.2 is not applicable when existing service is converted intact to Lifeline service.

B. The Lifeline credit passed through to the customer consists of

1. Federal Credit, one per Lifeline

Monthly Credit
a. Supplemental Security Income (SSI)$9.25
b. Supplemental Nutrition Assistance Program (SNAP) a.k.a. Food Stamps$9.25
c. Medicaid$9.25
d. Federal public housing$9.25
e. Low Income Home Energy Assistance Plan (LIHEAP)$9.25
f. Temporary Assistance to Needy Families (TANF)$9.25
g. National School Lunch’s free lunch program (NSL)$9.25

2. State credit

Monthly Credit
a. One per Lifeline service$3.50