20060317final_order_no_30002.pdf

Office ofthe Secretary
Service Date
March 17 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE REDUCTION TO
THE SURCHARGE FOR THE IDAHO
TELECOMMUNICATIONS SERVICE
ASSISTANCE PROGRAM ORDER NO. 30002
CASE NO. GNR- T -06-
Each year the Administrator of the Idaho Telecommunications Service Assistance
Program (ITSAP) files a report detailing the activities and status of the program during the
previous year. ITSAP provides eligible recipients with a reduction in costs of residential basic
local exchange telephone service. Funds for the program are raised through a surcharge on all
end-user business, residential and wireless access service lines. The Commission determines the
uniform statewide monthly surcharge, and the Idaho Department of Health and Welfare
administers the program, in conjunction with federal programs to maximize federal "lifeline" and
link up" contributions to Idaho s low-income customers. See Idaho Code ~ 56-901(1).
In her report filed February 28, 2006, the ITSAP Administrator reported gross
revenue surcharges of$1 609 568 during 2005, which were obtained approximately equally from
wireline and wireless access lines. Disbursements to eligible subscribers increased during the
year by almost five percent and totaled $1 334 650, while disbursements to telephone companies
for administration costs increased by nearly four percent to $118 177. At year-end, 33 038
recipients were receiving ITSAP support, an increase of nearly six percent from the previous
year. The ITSAP balance at the end of the year was $251 938.
The Administrator also reported that the number of local wire line access lines
decreased slightly from 679 600 to 662 200, approximately two-thirds of which were residential
lines and one-third business lines. Wireless access lines increased nearly 21% to 775 000.
Overall, there was an increase of approximately 115 200 lines in the total number of lines subject
to the ITSAP surcharge.
The ITSAP Administrator estimates the funding requirements for 2006 will be
approximately $1 635 800, and that the line counts will reflect the 2005 results, with the number
of wireline access lines declining slightly while wireless lines continue to increase. The
Administrator also estimates the number of ITSAP recipients will increase by approximately six
ORDER NO. 30002
percent and telephone companies' administrative costs will increase by approximately five
percent. Based on these projections, the Administrator recommended reducing the current
surcharge level of $.07 per line to $.06 per line per month. At the lowered rate, the
Administrator projected the fund balance will be approximately $559 000 at year-end, which is
adequate to maintain a reasonable reserve in the ITSAP account. Staff reviewed the
Administrator s report and supported the Administrator s recommendation to reduce the ITSAP
surcharge to $.06 per access line per month.
Based on the Administrator s report and Staff s recommendation, the Commission
has determined to decrease the ITSAP surcharge from $.07 per access line per month to $.06 per
access line per month. The Commission was able to reduce the surcharge level last year from
12 per line, and the Administrator projects the fund balance is likely to continue to increase
during 2006. The Administrator s report shows the fund balance should continue to increase
even by reducing the surcharge level to $., and that sufficient funds should remain in the
account to meet the 2006 funding requirements for all eligible households.
ORDER
IT IS HEREBY ORDERED that the ITSAP surcharge is decreased from $.07 to $.
per access line per month on all end-user business, residential and wireless access services. The
ITSAP surcharge amount of$.06 per access line shall be effective May 1 2006.
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. 30002
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /7r-
day of March 2006.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. JewellCo ission Secretary
O:GNR-06-02 ws
ORDER NO. 30002