20040416Final Order No 29475.pdf

Office of the Secretary
Service Date
April 16 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SURCHARGE FOR
THE IDAHO TELECOMMUNICATIONS
SERVICE ASSISTANCE PROGRAM
ORDER NO. 29475
CASE NO. GNR-O4-
The Idaho Telecommunications Service Assistance Program (ITSAP) provides low-
income telephone customers with a monthly credit on their local telephone service in order to
promote universal service. See Idaho Code ~ 56-901(1). ITSAP funds are raised through a
surcharge on telecommunication service lines and are used to help defray the costs of residential
basic local telephone service for eligible customers. The program is administered by the
Department of Health and Welfare and 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). Each year the ITSAP Administrator files a report with the Commission
detailing the revenues received from the surcharges, the credits provided to customers, and
administrative costs ofthe program.
Since implementation of the current program in 1998, the ITSAP surcharge level has
ranged from $.05 per line per month to $.13 per line per month on all end-user business
residential and wireless access services. Following review of the Administrator s report for the
fiscal year ending December 31 , 2002, the Commission issued Order No. 29214 on March 26
2003 increasing the ITSAP surcharge from $.10 per access line per month to $.12 per access line
per month. The Administrator s report for 2002 showed the ITSAP fund balance continuing to
decline and recommended the surcharge level be increased to ensure sufficient funds to meet the
requirements for eligible households. The Commission increased the surcharge to ensure the
ITSAP funds remained at "a level that is sufficient to retain a reasonable balance in the fund to
assure its stability and availability to eligible customers." Order No. 29214 p.
On March 3 , 2004, the ITSAP Administrator filed her annual report with the
Commission for the fiscal year ending December 31 , 2003. The report shows revenues from
surcharges totaled $1 695 732 and disbursements to eligible subscribers in the amount of
199 298. Administrative costs for the participating telephone companies totaled
approximately $105 000. The balance in the ITSAP fund at year end was $231 714. According
ORDER NO. 29475
to the Administrator s report, the credits provided to customers increased three percent (3%)
from the previous year, or approximately $40 200, and telephone company administrative costs
increased approximately five percent (5%).
The ITSAP Administrator recommended that the current surcharge of $.12 per line
per month remain in place. Although the number of customers receiving credits has continued to
increase, the rate of increase is significantly less than in previous years. The fund Administrator
believes the current surcharge rate is adequate to reimburse participating companies that provide
the credits as well as maintain a reasonable reserve balance in the ITSAP fund.
Based on the ITSAP Administrator s report and recommendation, the Commission
has determined to leave the current ITSAP surcharge in place. The Administrator s report shows
a reasonable balance for a reserve in the fund, and that the current ITSAP rate of $.12 per access
line per month 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 shall remain at $.12 per access
line per month on all end-user business, residential and wireless access services.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of 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. 29475
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1/4 t+-
day of April 2004.
~--
~~tU rJ &~t
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSE , OMMISSIONER
ATTEST:
Je D. Jewell
Commission Secretary
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ORDER NO. 29475