20070316final_order_no_30273.pdf

Office of the Secretary
Service Date
March 16 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2006 ANNUAL
REPORT AND ESTABLISHING THE
FUNDING LEVELS TO SUPPORT THE
TELECOMMUNICATIONS RELAY
SERVICE (TRS) PROGRAM
ORDER NO. 30273
CASE NO. GNR-07-
On February 15 , 2007, the Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2006 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 9 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 2006 Report and reduce the TRS
contributions effective May 1 , 2007 as set out in greater detail below.
THE 2006 ANNUAL REPORT
The Administrator reported that the relay center handled 263 327 minutes of traffic in
calendar year 2006. This represents a 27% decrease from calendar year 2005. 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, Spanish-to-Spanish, video, and
Internet relay services. Disbursements from the TRS fund to Hamilton in 2006 also decreased by
about 27% from 2005. In-state relay traffic is reimbursed by Idaho s TRS fund, while the
National Exchange Carrier Association (NECA) reimburses Hamilton for interstate calls
(including intrastate video and Internet relays).
In 2006, the TRS relay system was enhanced when the Commission approved the
introduction of Captioned Telephone (CapTeFM) service as an optional feature ofthe Idaho TRS.
By the close of 2006, 73 CapTelTM units were in place and accounted for approximately 41 000
minutes of relay conversations, a monthly average of approximately 100 minutes per phone.
CapTeFM devices allow users to hear as well as read the conversation on the phone s built-
ORDER NO. 30273
screen.Trained operators "re-voice" everything they hear from a caller into the VOlce-
recognition technology that converts the words into a text message and provides the TRS user
with a more natural conversation.
1. 2006 Expenses. The Idaho TRS fund is supported by assessments on local
telephone access lines and on billed intrastate long-distance minutes. TRS expenses for 2006
total $310 969, about $117,000 less than the previous year. The Administrator reported that
disbursements to Hamilton were $265 580.The administrative fees and expenses for the
reporting year were $45 389.
2. 2006 Revenues and Allocations. During 2006, the total number of telephone
access lines reported to the TRS Administrator was approximately 652 120, down 2% from
2005. The number of intrastate toll minutes for 2006 totaled approximately 328 769,840
minutes. The amount of toll minutes increased by 14.8% from the prior year. The table below
shows 2006 TRS contribution sources and amounts.
2006 Revenue Sources Amount
Local Service Providers
($.
03/month/line)$267 535
MTS/W A TS Providers
($.
0003/min)157 620
Interest Earned on Funds 189
TOTAL $425 344
Percentage of Total
63%
37%
100%
The 2006 year-end balance ofthe TRS fund was $473 402.
3. Proposed 2007 Budget.The Administrator projected an annual operating budget
for 2007 of $263 080. The budget includes an estimated 17% decrease in traditional relay usage
reflecting user migration to Internet and video relay services , as well as instant messaging
services. The Administrator expects the line count and long-distance billed minutes to remain
stable for 2007.
The Administrator s Report also addressed the Federal Communications Commission
(FCC) views on the funding for Internet and video relay services. Currently, NECA reimburses
Hamilton for Internet Relay (IR) and Video Relay (VRS) services. If the FCC requires states to
pay for intrastate IR and VRS, the Idaho TRS fund will be quickly depleted. Based on the latest
NECA figures, the Idaho intrastate IR service for 2006 was estimated to be $268 560 and the
ORDER NO. 30273
intrastate VRS was approximately $677 610 for a combined annual total of $946 170. These
estimates do not reflect any growth and would nearly quadruple the estimated 2007 budget
requirement for the Idaho TRS. If this were to occur, the Administrator calculated that
immediate and substantial revenues would be needed to replenish the TRS fund.
4. Proposed TRS Funding Levels. Based upon the proposed budget for 2007 and
current reserves, the Administrator recommended that the TRS funding levels be reduced for
2007. He recommended the per line assessment be reduced from $0.03 to $0.02 per month, and
the per minute assessment for intrastate toll minutes be reduced from $0.003 to $0.002 per
minute.
ST AFF RECOMMENDATION
Following its review of the Administrator s Report, Staff recommended the
Commission adopt the Report and the Administrator s projected budget for 2007. Staff also
concurred with the Administrator s recommendation that existing TRS contribution levels may
be reduced.
DISCUSSION
In this Order, we formally adopt the Administrator s 2006 Annual Report. Based
upon our review of the Report, we find that the 2006 expenses are reasonable. Idaho citizens
continue to be well served by the Administrator and the relay services provided by Hamilton
Telecommunications.
The Commission also finds that the 2007 budget projection of $263 080 is reasonable
based upon the anticipated reduction in TRS expenses this year. The Commission further finds
that the projected revenue together with the current fund balance should be sufficient to meet
2007 expenses.
Based upon our reVIew of the Annual Report, the Administrator s contribution
alternatives and the Staff's recommendations , we find that it is just and reasonable to reduce the
TRS contributions from their current funding levels. The TRS contributions shall be set at $0.
per access line per month and $0.0002 per intrastate MTS/W A TS minute. The Commission
further finds that the projected 2007 allocation between local service and toll service (63% and
37%, respectively) is just and reasonable given the estimates in the number of access lines and
toll minutes. The reduction in TRS contribution levels shall be effective May 2007.
ORDER NO. 30273
ORDER
IT IS HEREBY ORDERED that the TRS funding obligation of telephone
corporations providing local service in Idaho be reduced from the existing level to $0.02 per
month per access line.
IT IS FURTHER ORDERED that the TRS funding obligation for telephone
corporations providing intrastate MTS/W A TS service be reduced from the existing level
$0.0002 per intrastate billed minute.
IT IS FURTHER ORDERED that the reduced TRS contribution levels become
effective on May 1 2007.
IT IS FURTHER ORDERED that the TRS Administrator continue to monitor
expenditures , revenues and FCC actions. 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-07-
01 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. Within seven (7) days after any person has petitioned for reconsideration, any other
person may cross-petition for reconsideration. See Idaho Code 99 61-626 and 62-619.
ORDER NO. 30273
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
/&r;"
day of March 2007.
MARSHA H. SMITH, COMMISSI~A~
MACK A. REDFO , OMMISSIONER
ATTEST:
bls/O:GNR-07-
ORDER NO. 30273