CCC   PPPPP   U    U    CCC       N    N  EEEEE  W  W  W   SSS
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C       P    P  U    U  C           N N  N  E      W  W  W  S
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C       P       U    U  C           N  N N  E      WW   WW      S
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             California Public Utilities Commission
505 Van Ness Avenue, Room 5301            San Francisco, CA 94102
CONTACT: Armando Rendon           June 11, 1997          CPUC-070
         415-703-1366                              (Res. T-16010)

             CPUC UPDATES INCOME ELIGIBILITY LEVELS
                   FOR LIFELINE PHONE PROGRAM

     The California Public Utilities Commission (CPUC) today
updated the annual income levels for individuals and families to
qualify for the Universal Lifeline Telephone Service (Lifeline)
program.  The levels will be in effect July 15, 1997, through May
31, 1998.
     Lifeline offers discounts on phone use to customers whose
household income is at or below a set income per year.  Each year
the income limits are adjusted by CPUC staff, based on the
Consumer Price Index, currently using the 1996 rate of 2.9
percent.
     The levels by household size and income limit follow:
          Household Size                   Income Limitation
              1 - 2                            $17,000
                3                              $20,000
For each additional household member, $4,000
     Starting in 1998, the effective period for the income levels
has been changed to June 1 through May 31.  In the past, the
publication deadline was set for February 15 of each year.
However, because the federal statistical data was not available
until the end of January and preparation of a CPUC staff
resolution requires about four weeks to process for vote by the
Commission, making the deadline has never been possible.
     The June 1 effective date will eliminate the uncertainty
about the income data and effective dates which made it difficult
for local phone companies to administer the program.
     Until July 15, the income levels in effect are as follows:
          Household Size                   Income Limitation
              1 - 2                            $16,500
                3                              $19,400
For each additional household member, $3,900

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