20040416Final Order No 29472.pdf

Office of the Secretary
Service Date
April 16 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2003 ANNUAL
REPORT AND ESTABLISHING THE
FUNDING LEVELS TO SUPPORT THE
TELECOMMUNICATIONS RELAY
SERVICE (TRS) PROGRAM
ORDER NO. 29472
CASE NO. GNR-04-
On February 13, 2004, the Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2003 Annual Report to 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 2003 Report and continue TRS funding at
existing levels.
THE 2003 ANNUAL REPORT
The Administrator reported that the relay center handled 473 531 minutes oftraffic in
calendar year 2003. This represents a 9% decrease from calendar year 2002. 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 2003 also decreased by about 9%
from 2002. In-state relay traffic is reimbursed by Idaho s TRS fund while the National
Exchange Carrier Association (NECA) reimburses Hamilton for interstate calls that are placed
via the relay service.
1. Expenses. TRS expenses for 2003 total $528 964. The Administrator reported
that disbursements to Hamilton were $492 933. The administrative fees and expenses for the
reporting year were $36 031.
2. 2003 Revenues and Allocations. During 2003, the total number of telephone
access lines reported to the TRS Administrator were approximately 640 000. The number of
ORDER NO. 29472
intrastate toll minutes (after late-filed true-ups) for 2003 totaled approximately 314 658 630
minutes. However, because of various reporting cycles and subsequent true-ups by many
reporting companies, Staff believes the actual number of access lines is under-reported, while
toll minutes are over-reported for the 2003 calendar year. Staff estimates the total number of
actuallandlines in Idaho is just over 700 000. This estimate does not include paging accounts or
wireless telephones. Staff estimates that the number of intrastate toll minutes during 2003 was
closer to 300 000 000. These estimated minutes mirror the data reported to the Universal Service
Fund (US F) Administrator which uses similar methods of reporting.
The table below shows 2003 TRS contribution sources and amounts.
2003 Revenue Sources Amount Percentage of Total
Local Service Providers $307 059 58%
($.
04/month/line)
MTS/W A TS Providers 220 041 42%
($.
0007 /min)
Interest Earned on Funds 176
TOTAL $527 276 100%
The 2003 year-end balance of the TRS fund was $188 011.This amount represents
approximately a four-month reserve for the fund.
3. Proposed 2003 Budget.The Administrator projected an annual operating budget
for 2004 of $478 050. The budget includes an estimated 10% decrease in relay usage. He
cautioned that decreasing line counts or toll minutes could adversely affect TRS revenues.
4. Proposed TRS Funding Levels. Based upon the proposed budget for 2004, 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 ATS services (currently $.0007/minute) for intrastate traffic remain the same. The
Administrator estimated that continuing the existing contribution amounts would generate about
$542 500 in revenues. He estimated that this amount, coupled with the projected fund balance
will be sufficient to fund the 2004 budget.
ORDER NO. 29472
5. Other Issues . Recently the TRS Administrator received a proposal from Hamilton
Telecommunications to provide CapTeFM service in addition to the traditional relay services
currently provides. CapTeFM was developed by Ultratec, Inc. and allows individuals with
hearing impairment to view word-for-word captions of the other party s speech on the CapTelTM
telephone s built-in screen. CapTeFM telephones cost approximately $500 each and Hamilton
proposes to provide CapTeFM service at $1.45 per conversation minute. Hamilton currently
provides traditional relay service at $1.31 per conversation minute.
RECOMMENDATIONS
Following its review of the Administrator s Annual Report, the Staff recommended
the Commission adopt the Report and the Administrator s budget for 2004. Staff also concurred
with the Administrator s recommendation that existing funding levels be continued but that the
Administrator monitor the fund balance during the year and recommend adjustments if a
demonstrated need arises.
After reviewing Hamilton s proposal regarding the CapTeFM service, Staff and the
Administrator expressed concerns about the cost anticipated usage licensing, and
implementation procedures of this impressive but relatively new service. Consequently, Staff
and the Administrator recommended that the Commission not implement CapTelTM service for
this budget cycle. Instead, they recommended that this issue be re-examined when the Idaho
relay center releases its request for proposals (RFP) in 2005.
DISCUSSION
In this Order, we formally adopt the Administrator s 2003 Annual Report. Following
our review of the Report, we find that the 2003 expenses are reasonable. Idaho citizens continue
to be well served by the Administrator and the relay services provided by Hamilton
Telecommunications. TRS services continue to improve with the addition of "711" dialing and
Spanish language services.
The Commission further finds that the 2004 budget projection of $478 050 is
reasonable based on the anticipated expenses of the TRS program. The Commission finds that
the 2004 budget is reasonable given the decreased usage of the TRS relay center.The
Commission further finds that the projected revenue together with the current fund balance
should be sufficient to meet 2004 expenses.
ORDER NO. 29472
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 2004 allocation between local service and toll
service (58% and 42%, respectively) is just and reasonable given the estimates in the number of
access lines and toll minutes.
Finally, based upon the Staff and Administrator s recommendations, we decline to
implement the CapTeFM service at this time. Instead, we expect that the Administrator and Staff
will review the appropriateness of adding this service in the future.
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.
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-04-
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-04-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. 29472
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I (p
day of April 2004.
&~t
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. JewellCo ISSlOn Secretary
bls/O:GNRTO408 dh
ORDER NO. 29472