20030326Order No 29214.pdf

Office of the Secretary
Service Date
March 26, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AN INCREASE TO THE
SURCHARGE FOR THE IDAHO TELECOM-
MUNICATIONS SERVICE ASSISTANCE
PROGRAM.ORDER NO. 29214
CASE NO. GNR-O3-
The Idaho Telecommunications Service Assistance Program (IT SAP) provides
eligible recipients with a reduction in costs of telecommunication services to promote universal
service. See Idaho Code ~ 56-901(1). Funds are raised through an ITSAP surcharge and are
used to help defray the costs of residential basic local exchange telephone service for eligible
customers. The program, which is administered by the Department of Health and Welfare
works in conjunction with federal programs to "maximize federal 'lifeline' and 'link-up
contributions to Idaho s low income customers.Idaho Code ~ 56-901(1).
Following changes to the ITSAP legislation in 1998 , the Commission issued Order
No. 27608 to implement the changes and to establish the surcharge level at $.13 per line per
month on all end user business, residential and wireless access services. At that rate the ITSAP
account developed a substantial surplus and in May 1999, the Commission reduced the surcharge
from $.13 per access line to $.05 per access line per month. The Commission intended to reduce
the ITSAP surplus over time and recognized that it would be necessary in the future to increase
the surcharge.
The Commission in December 2001 increased the ITSAP surcharge level to $.08 per
line per month. The fund administrator reported that the ITSAP fund balance projected a
negative balance of $269 000 if the surcharge level were not increased. The quarterly reports
submitted by the fund administrator for the period ending March 31, 2002, showed the ITSAP
fund balance continuing to decline. The Commission therefore issued Order No. 29056 on
June 25, 2002, increasing the ITSAP surcharge to $.10 per access line per month.
The fund administrator s report for the fiscal year ending December 31 , 2002, again
shows the ITSAP fund to be diminishing. An increase in business local access lines and wireless
access lines resulted in increased revenues to the fund.However, the number of ITSAP
ORDER NO. 29214
recipients increased nearly 12%, requiring an increase of $120 925 over last year s distribution.
The fund administrator recommended the Commission increase the surcharge level from $.10 per
line to $.12 per access line per month. The administrator reported that "the ITSAP continues to
struggle with cash flow and the ability to reimburse companies for the credits provided." The
administrator reported a cash balance of $87 in the fund as of February 28, 2003.
Based on the ITSAP administrator s report and recommendation, the Commission
accepts the recommendation to increase the ITSAP surcharge from $.10 per access line per
month to $.12 per access line per month. The administrator s report shows the fund balance is
continuing to decline, and unless the surcharge level is increased there may be insufficient funds
to meet the funding requirements for all eligible households. The ITSAP surcharge must be at a
level that is sufficient to retain a reasonable balance in the fund to assure its stability and
availability to eligible customers.
ORDER
IT IS HEREBY ORDERED that the ITSAP surcharge is increased from $.10 to $.
per access line per month on all end user business, residential and wireless access services. The
new ITSAP surcharge amount of$.12 per access line shall be effective May 1 , 2003.
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. GNR-03-12 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-03-12. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code ~ 61-626.
ORDER NO. 29214
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;l.~
day of March 2003.
~ENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. JewellCo ission Secretary
vld/O:GNRT0312 ws
ORDER NO. 29214