20050412Final Order No 29754.pdf

Office of the Secretary
Service Date
April 12 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2004 ANNUAL
REPORT AND ESTABLISHING THE
FUNDING LEVELS TO SUPPORT THE
TELECOMMUNICATIONS RELAY
SERVICE (TRS) PROGRAM
ORDER NO. 29754
CASE NO. GNR- T -05-
On February 8, 2005, the Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2004 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. IDAP A 31.46.02.202
and .205. In this Order we accept the Administrator s 2004 Report and continue TRS funding at
existing levels.
THE 2004 ANNUAL REPORT
The Administrator reported that the relay center handled 403 866 minutes of traffic in
calendar year 2004. This represents a 14.7% decrease from calendar year 2003. 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 2004 also decreased by about 16%
from 2003. In-state relay traffic is reimbursed by Idaho TRS fund while the National
Exchange Carrier Association (NECA) reimburses Hamilton for interstate calls that are placed
via the relay service. Hamilton provides traditional relay services at $1.31 per conversion
minute.
1. Expenses TRS expenses for 2004 total $447 284. The Administrator reported
that disbursements to Hamilton were $413 469. The administrative fees and expenses for the
reporting year were $33 815.
ORDER NO. 29754
2. 2004 Revenues and Allocations. During 2004, the total number of telephone
access lines reported to the TRS Administrator was approximately 675 176. The number of
intrastate toll minutes for 2004 totaled approximately 290 224 680 minutes. The amount of toll
minutes decreased by 7.6% from the prior year. The table below shows 2004 TRS contribution
sources and amounts.
2004 Revenue Sources Amount Percentage of Total
Local Service Providers
($.
04/month/line)
MTS/W A TS Providers
($.
0007/min)
Interest Earned on Funds
$323 125 61%
TOT AL
203 157
112
$526 394
39%
100%
The 2004 year-end balance of the TRS fund was $267 121.
approximately a five-month reserve for the fund.
This amount represents
3. Proposed 2005 Budget.The Administrator proj ected an annual operating budget
for 2005 of $448,420. The budget includes an estimated decrease in relay usage reflecting user
migration to Internet and video relay services. The 2005 budget also includes funds for the
triennial audit and costs associated with putting the relay services out for bid. The Administrator
reported that Hamilton s Idaho TRS contract will expire in December 2005.
The Administrator s Report also contained one note of caution. The Administrator
observed that if the FCC requires states to pay for other relay-related services (such as Internet
and video relay), the TRS fund will be quickly deleted. If this were to occur, he calculated that
immediate and substantial revenues would be needed in order to shore-up the fund.
4. Proposed TRS Funding Levels. Based upon the proposed budget for 2005 , 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 Iminute) for intrastate traffic remain the same. The
Administrator estimated that continuing the existing contribution amounts would result in an
end-of-year balance of approximately $329 000. He estimated that this amount, coupled with the
proj ected fund balance, will be sufficient to fund the 2005 budget.
ORDER NO. 29754
STAFF RECOMMENDATION
Following its review of the Administrator s Annual Report, the Staff recommended
the Commission adopt the Report and the Administrator s projected budget for 2005. 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
as necessary.
ISCUSSI 0 N
In this Order, we formally adopt the Administrator s 2004 Annual Report. Following
our review of the Report, we find that the 2004 expenses are reasonable. Idaho citizens continue
to be well served by the Administrator and the relay services provided by Hamilton
Telecommunications. TRS services now include "711" dialing and Spanish language services.
The Commission further finds that the 2005 budget projection of $448 420 is
reasonable based on the anticipated expenses of the TRS program. The Commission finds that
the 2005 budget is reasonable given the offsetting decrease in relay minutes and the increase in
expenditures for the triennial audit and the Request for Proposal (RFP) process.The
Commission further finds that the projected revenue together with the current fund balance
should be sufficient to meet 2005 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 2005 allocation between local service and toll
service ~61 % and 39%, 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. 29754
IT IS FURTHER ORDERED that the TRS Administrator continue to monitor
expenditures and revenues. Any time 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-05-
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-05-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code
~ ~
61-
626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /;l
day of April 2005.
JJ~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
;e D. Jeweli
Commission Secretary
bls/O:GNRT0503 dh
ORDER NO. 29754