20030827Final Order No 29324.pdf

Office of the Secretary
Service Date
August 27 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ANNUAL REVISION OF
UNIVERSAL SERVICE FUND SURCHARGES
TO BECOME EFFECTIVE OCTOBER 1, 2003. )
CASE NO. GNR- T -03-
ORDER NO. 29324
On July 14, 2003 , the Administrator of the Idaho Universal Service Fund (USF) filed
her annual report for the previous USF fiscal year ending June 30, 2003. Each year the
Administrator files an annual report to enable the Commission to review the USF surcharges and
distributions from the fund. Last year in Order No. 29101 the Commission decreased the USF
monthly surcharges on local service lines to $0.08 per residential line and $0.13 per business
line, and also decreased the surcharge on MTS/W ATS minutes to $0.0025 per minute. The
reduced surcharges became effective October 1 , 2002.
The Administrator s recent annual report reveals that the USF surcharges resulted in
revenue in the amount of $1 655 317. Disbursements to qualifying incumbent local exchange
carriers (ILECs) remained steady at $1 898 303. With a year-end cash balance in the USF of
$154 721 , and invested funds in the amount of $688 000, the Administrator recommended that
the Commission not adjust the existing USF surcharges. The Administrator did note, however
that the switched access rates for three ILECs, if not adjusted, will make the companies ineligible
for USF distributions. Accordingly, the Administrator recommended that the access rates for
ATC Communications, Fremont Telecom and Midvale Telephone Company be reduced and their
draws from the USF increased in the amount of revenue lost by the reduction in access charges.
With these adjustments to access charges and no adjustments to the USF surcharges, the
Administrator estimated the USF would have a balance of approximately $412 409 as of June
2004.
Idaho Code ~ 62-610 establishes the eligibility requirements for local exchange
companies to draw funds from the USF. According to the statute, a participating company s toll
access rates must be 100% of the statewide average in order for the Company to remain eligible
for USF draws. The Commission s USF Rules require a participating Company to revise its
rates if (1) the difference between a Company s rates and a statewide threshold rate is more than
, and (2) the difference in the amount of revenue collected under the Company s rates and the
ORDER NO. 29324
threshold rate is greater than $6 000. See IDAPA 31.46.01.106.02. The Administrator reports
that the current statewide average rate for switched access is $0.0525 per minute.
According to the Administrator s report, ATC Communications' composite switched
access rate in 2002 was $0.0566 per minute, which exceeds the threshold rate by 8% and
produces an overcharge totaling $14 114. ATC must reduce its access rates revenue by this
amount. Likewise, Fremont Telcom s 2002 access rate was reported to be $0.0574, which
exceeds the threshold rate by 9% and produces an overcharge of $13 813. Midvale s access rate
was reported to be $0.0599, or 14% over the threshold rate, and its excess revenue from switched
access is $17 294. Because a reduction in access revenue will produce a revenue shortfall for
these companies, their disbursements from the fund will be increased by the stated amounts
resulting in an increased draw from the USF of$45 218
The Commission directs that ATC, Fremont, and Midvale reduce their switched
access rates to the level that will enable the companies to remain eligible for USF draws. The
Commission also directs that the disbursements to those companies be increased in a
corresponding amount as identified by the Administrator. These companies' disbursements from
the USF will be increased by a corresponding amount once the access charge reductions are in
place.
ORDER
IT IS HEREBY ORDERED that the USF surcharge on local service residential lines
in the amount of $0.08 per month and $0.13 per month on business lines shall remain unchanged.
IT IS FURTHER ORDERED that the Universal Service Fund MTS/WATS surcharge
of $0.0025 per minute shall remain unchanged.
IT IS FURTHER ORDERED that the access charges of ATC Communications
Fremont Telecom, and Midvale Telephone Company b~ reduced as identified in this Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) 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. 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. 29324
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;1..5'r-
day of August 2003.
LKJE ., RESIDENT
Jj~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~JD.
tfAJe D. J well
Commission Secretary
vld/O:GNRTO327.
ORDER NO. 29324