20141212Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: DAPHNE HUANG
DEPUTY ATTORNEY GENERAL

DATE: DECEMBER 11, 2014

SUBJECT: ALBION TELEPHONE’S APPLICATION FOR CERTIFICATION TO
DONATE UNCLAIMED DEPOSITS AND REFUNDS TO A FINANCIAL
ASSISTANCE PROGRAM, CASE NO. ALB-T-14-02

On December 10, 2014, Albion Telephone Company (ATC or the Company) filed an
Application seeking Commission certification so that ATC may donate unclaimed deposits and
refunds to the South Central Community Action Partnership, a financial assistance program in
Twin Falls, Idaho. Application at 1-2. Idaho Code § 14-508 allows a utility to donate unclaimed
customer deposits to “a financial assistance program which assists the utility’s low income or
disadvantaged customers.”
THE APPLICATION
ATC is a provider of basic local exchange service and other telecommunications
services in southern Idaho. Application at 1. ATC routinely collects deposits that it refunds to
customers on termination of service. Id. The Company also refunds customers for any
overpayment made past the date of service termination. Id. When ATC is unable to locate the
customer to whom a refund is owed and the sum is unclaimed for more than one year after
termination of services, the sum is presumed abandoned under Idaho’s Unclaimed Property Law.
Idaho Code § 14-508(1). Currently, ATC has about $2,000 in unclaimed deposits and
overpayments that it has held for more than five years. Application at 1.
ATC wishes to direct the abandoned sums into a financial assistance program to help
its low-income and disadvantaged customers. Id. at 2. ATC initially sent a letter to the
Commission in October 2014, asking to create a program through which the Company could
DECISION MEMORANDUM 2
directly assist its low-income and disadvantaged customers. See October 9, 2014 Letter. After
meeting with Staff about the Company’s request, ATC’s counsel filed the present Application,
amending its initial request.1
In this Application, ATC asks to donate its unclaimed deposits and refunds, as
contemplated in Idaho Code § 14-508, to an existing financial assistance program. Application
at 2. Section 14-508(2) authorizes the Commission to certify that a utility is participating in a
financial assistance program. Once certified, unclaimed deposits (less any lawful deductions)
over a year old, thus presumed abandoned, may be paid to the financial assistance program.
Telephone Customer Relations Rule 108, IDAPA 31.41.01.108. ATC identifies the proposed
recipient of its abandoned funds as the South Central Community Action Partnership (SCCAP)
in Twin Falls, Idaho. Application at 2.
ATC proposes to direct the SCCAP “to use the donated funds to assist [ATC’s]
wireline Lifeline customers with the non-recurring payment of the initial connection fees.” Id.
Under the Company’s proposal, the SCCAP would exercise its discretion in determining
recipients’ need-based eligibility, but would report to ATC “within ten days of the end of each
calendar quarter how such funds were used until all such funds have been used.” Id. The report
would also include each recipient’s name and amount of assistance provided, as well as the
balance of available funds, if any. Id. If its Application is granted, ATC would forward any
unclaimed funds to the SCCAP at the end of each calendar year. Id.
ATC asks that the Commission process its request by Minute Order or under
Modified Procedure. Id. at 3.
STAFF RECOMMENDATION
Staff has reviewed ATC’s October 2014 Letter and updated Application. Staff
understands that the funds donated to SCCAP would be used to pay in full, or in part, the one-
time service connection fees2 for low-income persons who are applying for wireline telephone
service with ATC. Although Staff had questions about how the Company would operate and
oversee an internal financial assistance program as suggested in ATC’s Letter, Staff has no

1 Under Rule 52, pleadings requesting a certificate from the Commission are applications that must set forth the
facts, statutes, rules or other controlling law on which they are based, and request the action desired. IDAPA
31.01.01.052. Accordingly, ATC’s request was properly filed as an Application, setting forth the requisite elements
under Rule 52.
2 Currently, ATC has three charges that may apply to establishment of new service: a $12.50 service order charge, a
$25.00 line connection charge, and a $40.00 premise visit charge.
DECISION MEMORANDUM 3
concerns about paying unclaimed funds to the SCCAP per ATC’s Application. Staff understands
that the SCCAP routinely determines need-based eligibility of aid-recipients. The SCCAP
currently verifies and processes both state and federal eligibility of ATC’s low-income
applications pursuant to state and federal requirements.
Given the authority contained in Idaho Code § 14-508(2) and the proposed procedure
set out in ATC’s Application, Staff recommends that the Commission simply approve the
Application without further comment. ATC’s Application is consistent with the Unclaimed
Property Law and prior applications seeking such certification. See, e.g., Case Nos. UWI-W-11-
03, C10-E-09-01.
COMMISSION DECISION
1. Does the Commission find there is no public interest or other practicable reason to
delay resolution of this matter?
2. Does the Commission wish to grant ATC’s Application on the consent agenda, in
the interest of a just, speedy and economical determination of the issue before it?
3. Alternatively, does the Commission wish to set a comment period and process
ATC’s Application under Modified Procedure?

Daphne Huang
Daphne Huang
Deputy Attorney General

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