ITSAP.docx

MEMORANDUM
TO:COMMISSIONER HANSEN
COMMISSIONER NELSON
COMMISSIONER SMITH
FROM:WELDON STUTZMAN
DATE:MAY 27, 1998
RE:ITSAP PROGRAM
Attached to this memorandum is Staff’s summarized list of responsibilities of an administrator for the ITSAP program.  Due to the relatively short period of time before the program’s implementation on July 1, 1998, Staff believes the Commission should ask the current Universal Service Fund Administrator, Allyson Anderson, to act as ITSAP Administrator.  Also, because the USF and ITSAP programs should be similarly administered, a single administrator for the two programs should save on administration costs.  
Staff has also done a preliminary analysis of the first year costs for the new ITSAP program, based on the eligibility criteria and projections provided by the Department of Health & Welfare.  Staff projects approximately 21,000 households will receive ITSAP assistance during the next year.  Allowing for administration costs, Staff projects first year program costs of approximately $980,000.  
If the ITSAP surcharge applies to 650,000 wireline and wireless service lines, the surcharge amount would be 13 cents per line per month.
This information will be set out in greater detail in a proposed order Staff will recom­mend the Commission adopt to implement the 1998 ITSAP program.  The proposed order will be presented for your review on the next decision meeting agenda.
Weldon Stutzman
vld/M:ITSAP.ws
cc:Joe Cusick
Don Howell