20080416final_order_no_30531.pdf

Office of the Secretary
Service Date
April 16 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2007 ANNUAL
REPORT AND ESTABLISHING THE
FUNDING LEVELS TO SUPPORT THE
TELECOMMUNICATIONS RELAY
SERVICE (TRS) PROGRAM
ORDER NO. 30531
CASE NO. GNR- T -08-
On January 25, 2008, the Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2007 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. IDAPA 31.46.02.202
and 205. In this Order we accept the Administrator s 2007 Report and maintain the TRS
contributions at their current levels effective May 1 , 2008.
THE 2007 ANNUAL REPORT
The Administrator reported that the relay center handled 190 173 minutes of traffic in
calendar year 2007. This represents a 28% decrease from calendar year 2006. 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 2007 also decreased by
about 6% from 2006. In-state relay traffic and Captioned Telephone (CapTelTM) service are
reimbursed by Idaho s TRS fund, while the National Exchange Carrier Association (NECA)
reimburses Hamilton for interstate calls (including intrastate video and Internet relays).
The Administrator also reported that traditional relay usage decreased in 2007 while
the CapTel devices adopted by the hard-of-hearing users increased by 32%. The increase in
CapTel billed minutes largely offset the 28% decrease in traditional relay use. CapTel allows
hard-of-hearing users to hear the conversation as well as read the words on the phone s built-
screen. A trained operator "re-voices" the conversation from a caller into the voice-recognition
ORDER NO. 30531
technology that converts the words into a text message and provides the CapTel user with a more
natural conversation.
1. 2007 Expenses. The Idaho TRS fund is supported by assessments on local
telephone access lines and on billed intrastate long-distance minutes. TRS expenses for 2007
total $292 912, about $18 000 less than the previous year. The Administrator reported that
disbursements to Hamilton were $250 755. The administrative fees and expenses for the
reporting year were $42 157, a decrease of$3 232 over the prior year.
2. 2007 Revenues and Allocations. During 2007, the total number of telephone
access lines reported to the TRS Administrator was approximately 647 800, down about 1 %
from 2006. The number of intrastate toll minutes for 2007 totaled approximately 312 million
minutes. The amount of toll minutes decreased by about 5% from the prior year. The table
below shows 2007 TRS contribution sources and amounts.
2007 Revenue Sources Amount
Local Service Providers
($.
02/month/line)$199 922
MTS/W A TS Providers
($.
0002/min)251
Interest Earned on Funds
TOTAL $289 236
Percentage of Total
69%
31%
100%
The 2007 year-end balance of the TRS fund was $469 726.
3. Recertification of the Idaho TRS Program. On June 22, 2007, the Federal
Communications Commission (FCC) released Order DA07-2761 , in CG Docket No. 03123.
this Order, the FCC announced that it would accept applications for the renewal of state IRS
program certification for a five-year period. The Administrator submitted the required
information and documentation that demonstrated the Idaho TRS system is meeting or exceeding
all mandatory minimum standards specified in 47 c.F.R. ~ 64.604 of the FCC rules. See Title IV
of the Americans with Disabilities Act, 47 US.c. ~ 225. He received confirmation that the FCC
received Idaho s application. The FCC will review the applications and recertify the states in
mid-2008.
4. Proposed 2008 Budget.The Administrator projected an annual operating budget
for 2008 of $284 356. The budget includes an estimated 20% decrease in traditional relay usage
ORDER NO. 30531
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 decrease
for 2008.
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. He estimated that
the state assessments for intrastate IR and VRS would quadruple the estimated 2008 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 2008 and
current reserves, the Administrator recommended that the existing TRS funding levels be
maintained for 2008. He recommended the per-line assessment be continued at $0.02 per month
and the per-minute assessment for intrastate toll minutes be continued at $0.002 per minute.
STAFF RECOMMENDATION
Following its review of the Administrator s Report, Staff recommended the
Commission adopt the Report and the Administrator s projected budget for 2008. Staff also
concurred with the Administrator s recommendation that existing TRS contribution levels may
be continued. Staff concurred with the Administrator that the current fund balance would allow
adequate time for the Commission to react ifthe FCC changes the funding for IR and VRS.
DISCUSSION
In this Order, the Commission formally adopts the Administrator s 2007 Annual
Report. Based upon our review of the Report, we find that the 2007 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 2008 budget projection of $284 356 is reasonable
based upon the anticipated TRS expenses this year. The Commission further finds that the
projected revenue together with the current fund balance should be sufficient to meet 2008
expenses.
Based upon our reVIew of the Annual Report, the Administrator s contribution
alternatives and the Staffs recommendations, we find that it is just and reasonable to maintain
ORDER NO. 30531
the TRS contributions at 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 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 maintained at the existing level of $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 maintained at the existing level of
$0.0002 per intrastate billed minute.
IT IS FURTHER ORDERED that the TRS Administrator continue to monitor
expenditures, revenues, and FCC actions. Anytime that revenues will not cover expenditures
the TRS Administrator 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-08-
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 ~~ 61-626 and 62-619.
ORDER NO. 30531
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this IlPtl-
day of April 2008.
'"
~-5-~
MACK A. REDFORD, PRE IDENI
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~ill Lf~Je D. Jewell
Co mission Secretary
bls/O:GNR-O8-01 dh
ORDER NO. 30531