20020307Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
LYNN ANDERSEN
JOE CUSICK
BIRDELLE BROWN
WAYNE HART
CAROLEE HALL
BEVERLY BARKER
TONYA CLARK
RON LAW
GENE FADNESS
WORKING FILE
FROM:DOUG COOLEY
DATE:MARCH 7,2002
RE:TELECOMMUNICATION RELAY SERVICES 2001 ANNUAL REPORT
On February 28,2002,Idaho's Telecommunications Relay Service (TRS)Administrator,
Mr.Robert Dunbar,submitted his calendar year 2001 Annual Report to the Commission.He
reported that conversation time on the relay service,includinginterstate long distance,totaled
520,988 minutes.This represents an increase of only 1%from calendar year 2000.
DISBURSEMENTS TO HAMILTON
Althoughthe Relay experienced a 1%increase in traffic in 2001,disbursements to
Hamilton Telecommunications ($550,900)were 26%higher than the previous year.This
increased disbursement to Hamilton is due to the 21%rate increase that became effective
December 1,2000,and growth in the percentage of local relay traffic that is reimbursed by
Idaho's TRS Fund.While the per-minute rate the TRS Fund pays to Hamilton increased to $1.31
per conversation minute,this price included many FCC-mandated improvements that are now
available.Some of these improvements are faster answering and typing speed of the operators,
speech-to-speech service,and Spanish-to-Spanish relay services.The National Exchange Carrier
DECISION MEMORANDUM 1 MARCH 7,2002
Association (NECA)reimburses Hamilton for out-of-state calls that are placed via the relay
service.
Disbursements 2001 2000
Hamilton Telecommunications $550,900 $436,l 10AdministrativeExpenses31,145 58,990Total$582,045 $495,100
CONTRIBUTIONSTO THE TRS FUND -2001
The total number of intrastate toll minutes that the TRS was able to bill increased by
nearly 17%from 2000 to approximately 375,714,889 minutes.Based on the revenues reported
by December 31,2001 Idaho's line count is approximately 771,758,which is an 18%increase
from 2000.This estimate does not include pagers or wireless phones.
Contributions 2001 2000
From basic service providers $370,224 (59%)$313,682 (59%)From MTS/WATS providers 261,918 (41%)214,074 (41%)Interest earned on funds 792 1,864Total$632,934 $529,620
The above transactions resulted in an increase of $50,890 to the TRS fund bringing the
2001 year-end balance to $249,207.On January26,2002,the TRS Fund balance was $199,621.
This amount approximates a four-monthreserve for the fund that collects from many accounts on
a quarterly basis.
Staff commends Mr.Dunbar for his continued effective administration of this service.
During the past year,reaching the Idaho Relay Service became as simple as dialing 711 from
anywhere in the state.The Idaho TRS program is certified by the FCC and will require re-
certification by July 25,2002.
SETTING TRS CONTRIBUTION RATES FOR 2002
Mr.Dunbar has projected an annual operating expense requirement for 2002 of $631,440.
This budget includes an estimated 4%increase in use of the Relay for in-state calls.To meet the
estimated budget requirement,Mr.Dunbar recommends that the TRS contribution rate not be
DECISIONMEMORANDUM 2 MARCH 7,2002
adjusted at this time.Staff agrees with this recommendation and presents the followingprojected
TRS income for the coming year.
No Change in TRS Contribution
Estimated lines 800,000 x $.04 x 12 months =$384,000 (58%)Estimated minutes 400,000,000 x $.0007 =$280,000 (42%)
Total $664,000
In 2002,carrying more conversation minutes and sponsoring some public outreach
regarding the implementation of 711 access to the Relay may result in unexpected costs to the
TRS fund.However,Staff agrees with Mr.Dunbar's suggestion that adjusting the TRS
contribution rates before there is a demonstrated need would be premature.
STAFF RECOMMENDATION
Based on the proposed TRS budget for 2002,Staff recommends that 2002 TRS
contribution remain at S.04 per line per month and $.0007 per intrastate toll minute in accordance
with Order No.28684.Keeping this TRS contribution rate appears to closely match the required
budget for the year 2002 while maintaining at least one quarter of reserve.
COMMISSION DECISION
1.Does the Commission wish to keep the TRS contribution rates at the current level as
established by Order No.28684?
2.Does the Commission wish to change the distribution or the methodology in some
other way?
Tíoug dooley
udmemos/trs report for 2001
DECISIONMEMORANDUM 3 MARCH 7,2002