20070410final_order_no_30289.pdf

Office of the Secretary
Service Date
April 10, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
SURCHARGE FOR THE IDAHO
TELECOMMUNICATIONS SERVICE
ASSISTANCE PROGRAM ORDER NO. 30289
CASE NO. GNR-07-
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 9 56-901(1). The
ITSAP surcharge two years ago was $.12 per access line per month, but has decreased each of
the last two years and currently is $.06 per access line per month. Order No. 30002.
In her report filed March 3 , 2007, the ITSAP Administrator reported gross surcharge
revenues of $1 198 653 during 2006, derived from wireline and wireless access lines at 46% and
54%, respectively. Disbursements to eligible subscribers decreased slightly during the year and
totaled $1 323 371. Disbursements to telephone companies for administration costs also
decreased and totaled $117 648, approximately one percent lower than the 2005 total of
$118 177. During 2006, an average of 32 025 customers received ITSAP each month. The
ITSAP balance at the end ofthe year was $344 043.
The Administrator also reported that the number of local wireline access lines
increased approximately four percent, from 662 200 to approximately 686 800. Wireless access
lines increased by 10% to approximately 855 400. Overall, there was an increase of
approximately 105 000 lines in the total number of lines subject to the ITSAP surcharge.
The ITSAP Administrator estimates the funding requirements for 2007 will be
approximately $1 404 827, and that the line counts will reflect the 2006 results, with the number
of wireline access lines remaining stable while wireless lines continue to increase. The
ORDER NO. 30289
Administrator also estimates the number of ITSAP recipients will decrease by approximately
five percent and telephone companies ' administrative costs will increase by approximately six
percent. Based on these projections, the Administrator recommended leaving the current
surcharge level of $.06 per line per month unchanged. At the existing rate, the Administrator
projected the fund balance will be approximately $461 545 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 retain the ITSAP current surcharge of
06 per access line per month.
Based on the Administrator s report and Staffs recommendation, the Commission
has determined to not alter the current ITSAP surcharge of $.06 per access line per month. The
Commission was able to reduce the surcharge level last year from $.07 per line, and the
Administrator projects the fund balance is likely to remain stable during 2007. The
Administrator s report shows that a surcharge level of $.06 per line per month will result in
sufficient funds to meet the 2007 funding requirements for all eligible households.
ORDER
IT IS HEREBY ORDERED that the ITSAP surcharge of $.06 per access line per
month on all end-user business, residential and wireless access services will remain in effect for
2007.
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 9 61-626.
ORDER NO. 30289
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
q-f'1..
day of April 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
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t-4Je n D. Jewell
mission Secretary
O:GNR-07-02 ws
ORDER NO. 30289