28684.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF REVIEWING THE ADMINISTRATOR'S 2000 ANNUAL REPORT AND ESTABLISHING THE FUNDING LEVELS TO SUPPORT THE TELECOMMUNICATIONS RELAY SERVICE (TRS) PROGRAM. )
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CASE NO. GNR-T-01-4

ORDER NO. 28684

On February 14, 2001, the Telecommunications Relay Services (TRS) Administrator filed his 2000 Annual Report with the Commission. “The TRS program allows citizens who are hearing or speech impaired to engage in telephone communications in a manner functionally equivalent to that of individuals without hearing or speech impairments.” Idaho Code § 61-1301. Pursuant to TRS Rules 202 and 205, the Commission reviews the Administrator’s Annual Report and determines the appropriate funding levels necessary to meet the program’s expenses on a prospective basis. IDAPA 31.46.02.202 and .205. In this Order, we accept the Administrator’s Report and continue TRS funding at existing levels.
THE 2000 ANNUAL REPORT
Operations. The Administrator reported that the relay center handled 515,970 minutes of traffic in calendar year 2000. This represents nearly a 4% increase in the number of conversation minutes from calendar year 1999. The relay center, operated by Hamilton Communications, converts or “relays” oral conversations to text type and vise versa. The relay center also provides Speech-to-Speech and Spanish-to-Spanish relay services. Although the relay center experienced a 4% increase in traffic in 2000, disbursements to Hamilton Telecommunications were less than 1% higher than the previous year. The Administrator suggested that much of the increase usage of the relay center was in the form of calls placed from Idaho to other states.
Expenses. TRS expenses for 2000 totaled $495,100. The Administrator reported that disbursements to Hamilton Telecommunications were approximately $436,110. Administrative fees and expenses for the reporting year were $58,990. This represented an increase from the previous year of approximately $27,000. Most of this increase was attributable to the fact the contract for the TRS provider expired and the Administrator issued an RFP to solicit bids for Idaho’s TRS provider. Approximately, $23,500 of this year’s administrative expenses were attributable to the RFP process.
2000 Revenues and Allocations. During 2000, the number of access lines supporting TRS grew by approximately 2.3% to a total estimated to be approximately 700,000 lines. The number of intrastate toll minutes in Idaho increased by approximately 12% from 1999 to 319,445,710 minutes. The table below shows 2000 TRS contribution sources and levels.

2000 Revenue
Sources
Amount Percentage of
Total Local Service Providers ($.04/mo)
$313,682 59% MTS/WATS providers ($.0007/min.
$214,074 41% Interest earned on fund
$1,864 Total $529,620 100%
The 2000 year end balance of the TRS fund was $198,317. This amount is roughly equal to a four-month reserve.
2001 Budget. The Administrator projected an annual operating budget for 2001 of $560,900. His projection was based on the assumption that TRS usage will remain at its present level. This budget includes the increased per-minute rate that the Administrator pays the TRS provider, Hamilton Telecommunications.
Proposed TRS Funding Levels. Based upon the proposed budget for 2001, the Administrator recommended that the TRS contributions from local service (currently $.04 per month per access line) remain the same. He also recommended that the contribution from MTS/WATS services (currently $.0007/minute for intrastate traffic) remain the same. The Administrator estimated that continuing the existing contribution amounts would allow the TRS fund to maintain an end-of-year balance of three-months operating reserve. Staff made the following revenue estimate based upon no changes to the existing TRS rates.

Revenue Source

Estimated lines (700,000 x $.04 x 12 month) = Amount

$336,000 Percentage of
Total

62% Estimated minutes (300,000,000 x $.0007) = $210,000 38% Total $546,000 100%
The Administrator did point out that the costs for implementing the new 711 dialing pattern may raise expenses in the next budgeting year. However, because these costs are uncertain, the Administrator recommended that TRS contributions remain at the current levels.
Following its review of the Administrator’s Annual Report, Staff recommended that the Commission adopt the Report and its budget for 2001. Staff also recommended that both the local monthly and the MTS/WATS funding levels be continued. Staff concluded that the funding recommendations would meet the 2001 budgeted expenses, maintain the three-month TRS reserve, and continue the current ratio between MTS/WATS contributions and local access contributions.
DISCUSSION
In this Order, we formally adopt the Administrator’s 2000 Annual Report. Following our review of the Report, we find that the 2000 expenses are reasonable. Idaho citizens continue to be well served by the Administrator and the relay services provided by Hamilton Telecommunications.
The Commission further finds that the 2001 budget projection of $546,000 is reasonable based upon the anticipated expenses of the TRS program. The Commission believes that the 2001 budget is reasonable given the increase in TRS conversation minutes experienced in 2000. The Commission also recognizes that implementation of the FCC’s new 711 dialing pattern to reach the TRS provider may also increase expenses for the 2000 budgeting year. However, we agree with the Administrator and Staff that these costs are uncertain.
Based upon our review of the Administrator’s Report and the Staff’s recommendation, we further find it is just and reasonable to continue the TRS contributions at their current funding levels: $.04 per access line per month, and $.0007 per minute on intrastate MTS/WATS calls. The Commission continues to find a three-month operating reserve is reasonable given the anticipated budgetary changes. We further find that continuing the TRS contribution levels provides administrative efficiencies to local and toll carriers by avoiding changes to the TRS reimbursement levels.
The Commission also finds that the projected 2001 allocation between local service and toll service (62% and 38%, respectively) is fair, just and reasonable. Given the assumption for changes in access line growth and the increase in toll minutes, we accept the contribution and allocation as set out above.
O R D E R
IT IS HEREBY ORDERED that the TRS funding obligation of telephone corporations providing local service in Idaho be continued without change at the existing level of $.04 per month per access line.
IT IS FURTHER ORDERED that the TRS funding obligation of telephone corporations providing intrastate MTS/WATS service be continued at its existing level of $.0007 per intrastate billed minute.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. GNRT014 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this order or in interlocutory Orders previously issued in this Case No. GNR-T-01-4. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of March 2001.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:GNR-T-01-4_dh

ORDER NO. 28684 1

Office of the Secretary
Service Date
March 27, 2001