20040827Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. GNR-04-, Order No. 29570
August 23, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Surcharge for universal service increases
Boise - A surcharge that helps telephone companies provide service in high-cost rural areas will
increase slightly, as a result of an order signed today by the Idaho Public Utilities Commission.
The Idaho Telecommunications Act of 1988 created the Universal Service Fund to maintain
universal availability of local telephone service at reasonable rates in areas where greater
distances and fewer customers makes providing service more costly than providing the same
service in urban areas. Idaho Code 62-61 OA, states that
, "
all consumers in this state, without
regard to their location, should have comparable accessibility to basic telecommunications
services at just and reasonable rates.
All telephone companies contribute to the fund through a surcharge on customer bills. Today
order increases the amount telephone customers pay from 8 cents per residential line per month
to 10 cents and from 13 cents per business line to 15 cents. Customers of long distance
companies also contribute to the fund. Under today s order, in-state toll calls increase from
$0.0025 cents per minute to $0.003 cents per minute.
Disbursements from the fund to the eight qualifying local telephone companies were $1 898 303
during the last fiscal year. Surcharge revenue for the last fiscal year totaled $1 485 790. An
administrator for the fund reports that leaving the surcharge at current levels will result in a
negative balance this fiscal year of about $51 807.
The eight telephone companies that qualify for USF disbursements include: Albion Telephone
Company, Cambridge Telephone Company, Direct Comm of Rockland, Inland Telephone
Company of RosIYll, Wash. (serving Idaho customers in Lenore and Leon), Fremont Telecom
Inc. ofSt. Anthony; Midvale Telephone Exchange, Rural Telephone Co. of Glenns Ferry and
Silver Star Telephone Co. of Freedom Wyo. (serving Idaho customers in the eastern portions of
Bonneville and Caribou counties).
With assistance from the Universal Service Fund, these rural telephone companies are able to
keep their rates at no more than 25 percent higher than rates in more urban areas.
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