20080421final_order_no_30535.pdf

Office of the Secretary
Service Date
April21 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
SURCHARGE FOR THE IDAHO
TELECOMMUNICATIONS SERVICE
ASSISTANCE PROGRAM ORDER NO. 30535
CASE NO. GNR- T -08-
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). The
ITSAP surcharge three years ago was $.12 per access line per month, but decreased two years in
a row and currently is $.06 per access line per month. Order No. 30002.
In her report filed March 3 , 2008, the ITSAP Administrator reported gross surcharge
revenues of $1 144 820 during 2007, derived from wireline and wireless access lines at 41 % and
59%, respectively. Disbursements to eligible subscribers remained nearly the same as the
previous year and totaled $1 324 118. Disbursements to telephone companies for administration
costs increased and totaled $130 673, approximately 11 % higher than the 2006 total of $117 648.
During 2007, an average of 30 448 customers received ITSAP each month. The ITSAP balance
at the end of 2007 was $451 344, including a u.S. Treasury note that matured in March 2008.
The Administrator also reported that the number of local wireline access lines
decreased approximately 6%, from 686 800 to approximately 637 500. Wireless access lines
increased by nearly 11 % to approximately 1 081 000. Overall, there was an increase of
approximately 176 300 lines in the total number oflines subject to the ITSAP surcharge.
The ITSAP Administrator estimates the funding requirements for 2008 will be
approximately $1 373 295, and that the line counts will reflect the 2007 results, with the number
of wireline access lines decreasing while wireless lines continue to increase. The Administrator
ORDER NO. 30535
also estimates the number of ITSAP recipients will decrease from an average of 30 448 per
month to 29 300 per month and telephone companies' administrative costs will be relatively
unchanged at $130 543. 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 $334 601 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. After
developing a surplus, the Commission previously reduced the surcharge to a level that produces
revenue below the annual expenditures. The Administrator projects that trend will continue
during 2008. However, the Administrator s report shows that a surcharge level of $.06 per line
per month will result in sufficient funds to meet the 2008 funding requirements for all eligible
households, while retaining a reasonable reserve balance.
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
the next year.
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. 30535
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this 02..1 day of April 2008.
------~~':
MACK A. RED
~A.
(/
MARSHA H. SMITH, C MM SIONER
ATTEST:
fir'~Je D. Jewell
Commission Secretary
O:GNR-08-02 ws
ORDER NO. 30535