20030410Order No 29220.pdf

Office of the Secretary
Service Date
April 10 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2002 ANNUAL REPORT
AND EST ABLISHIN G THE FUND IN G LEVELS
TO SUPPORT THE TELECOMMUNICATIONS
RELAY SERVICE (TRS) PROGRAM.
CASE NO. GNR-03-
ORDER NO. 29220
On February 11 , 2003, Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2002 Annual Report to the Commission. "The TRS
program allows citizens who are hearing and 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 2002 Report and continue TRS funding at
existing levels.
THE 2002 ANNUAL REPORT
The Administrator reported that the relay center handled 520 741 minutes of traffic in
calendar year 2002. This represents almost no change from calendar year 2001. The relay
center, operated by Hamilton Telecommunications, converts or "relays" oral conversations to
text-type and vice versa. The relay center also provides speech-to-speech and Spanish-to-
Spanish relay services. Disbursements from the TRS fund to Hamilton in 2002 ($554 296) were
virtually unchanged from 2001 ($550 900). In-state relay traffic is reimbursed by Idaho s TRS
fund while National Exchange Carrier Association (NECA) reimburses Hamilton for interstate
calls that are placed via the relay service.
1. Expenses. TRS expenses for 2002 total $588 741. The Administrator reported
that disbursements to Hamilton were $554 296. The administrative fees and expenses for the
reporting year were $34 445.
2. 2002 Revenues and Allocations. During 2002, the total number of telephone
access lines reported to the TRS Administrator were approximately 771 758, which is nearly the
ORDER NO. 29220
same as calendar year 2001. This number of access lines does not include connections for
paging or wireless phone services. The number of intrastate toll minutes (after late-filed true-
ups) for 2002 totaled approximately 293,460 000 minutes. This represents a decrease in the total
number of intrastate access minutes of approximately 22% from calendar year 2001. These
reported minutes mirror the data reported to the Universal Service Fund (US F) Administrator
which uses similar methods of reporting. In addition, the Commission Staff found steady
decreases in reported intrastate toll minutes over the past two years from each of the several
companies it reviewed. .
The table below shows 2002 TRS contribution sources and amounts.
2002 Revenue Sources Amount Percentage of Total
Local Service Providers
($. 04/month/line)
$346 237 65%
MTS/WATS Providers ($.0007/min)182 546 35%
Interest Earned on Funds
TOTAL
450
$529 233 100%
The 2002 year-end balance of the TRS fund was $189 699. The current balance of
the TRS fund (as of March 4, 2003) was $205 738. This amount approximates a four-month
reserve for the fund that collects from many accounts on a quarterly basis.
3. Proposed 2003 Budget.The Administrator proj ected an annual operating budget
for 2003 of $613 690. While not expecting an increase in relay usage, the Administrator
budget includes an estimated 4% increase in disbursements in the event of unexpected expenses
related to next year s contract review with Hamilton. The proposed 2003 budget also includes
approximately $3 500 estimated expense for an independent audit ofthe TRS fund for 2002.
4. Proposed TRS Funding Levels. Based upon the proposed budget for 2003, 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/W A TS services (currently $.0007 /minute) for intrastate traffic remain the same. The
Administrator estimated that continuing the existing contribution amounts would generate about
$578 500 in revenues. He estimated that this amount, coupled with the projected fund balance
will be sufficient to fund the 2003 budget. Although use of the relay system appears to be
ORDER NO. 29220
holding steady and revenues from intrastate toll minutes appear to be decreasing, the
Administrator recommended the existing contribution levels remain the same.
Following its review of the Administrator s Annual Report, the Staff recommended
that the Commission adopt the Report and the Administrator s budget for 2003. Staff also
concurred with the Administrator s recommendation that existing funding levels be continued
but to monitor the fund balance during the year and recommend adjustments if a demonstrated
need arises.
D ISCUSSI 0 N
In this Order, we formally adopt the Administrator s 2002 Annual Report. Following
our review of the Report, we find that the 2002 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 2003 budget projection of $613 690 is
reasonable based on the anticipated expenses of the TRS program. The Commission finds that
the 2003 budget is reasonable given the estimated usage of the TRS relay center will remain
about the same. The Commission further finds that the projected revenue together with the
current fund balance should be sufficient to meet 2003 expenses.
Based upon our review of the report and the Staff s recommendations, we further find
that 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 per intrastate MTS/W ATS calls. The
Commission further finds that the projected 2003 allocation between local service and toll
service (64% and 36%, respectively) is just and reasonable given the estimates in the number of
access lines and toll minutes.
ORDER
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 for telephone
corporations providing intrastate MTS/W ATS service be continued at its existing level of $.0007
per intrastate billed minute.
ORDER NO. 29220
IT IS FURTHER ORDERED that the TRS Administrator continue to monitor
expenditures and revenues.At such time as he believes that revenues will not cover
expenditures, he is to immediately notify the Commission so that we may evaluate whether
changes in the existing TRS funding obligations are necessary.
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-03-14 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-03-14. 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 "fA.
day of April 2003.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
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ORDER NO. 29220