20090326final_order_no_30759.pdf

Office of the Secretary
Service Date
March 26, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2008 ANNUAL
REPORT AND ESTABLISHING THE
FUNDING LEVELS TO SUPPORT THE
TELECOMMUNICATIONS RELAY
SERVICE (TRS) PROGRAM
ORDER NO. 30759
CASE NO. GNR-09-
On January 29, 2009, the Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2008 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. IDAP A 31.46.02.202
and 205. In this Order we accept the Administrator s 2008 Report and maintain the TRS
contributions at their current levels effective May I , 2009.
THE 2008 ANNUAL REPORT
The Administrator reported that the relay center handled 137 253 minutes of traffic in
calendar year 2008. This represents nearly a 28% decrease from calendar year 2007. 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 2008 also
decreased by about 7.5% from the previous year. In-state relay traffic and Captioned Telephone
(CapTel) 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 2008 while
usage of CapTel devices increased by 42%. The increase in CapTel billed minutes significantly
offset the 28% decrease in traditional relay use. CapTel allows hearing-impaired users to hear
the conversation as well as read the words on the phone s built-in screen. A trained operator "re-
ORDER NO. 30759
voices" the conversation from a caller into the voice-recognition technology that converts the
words into a text message and provides the CapTel user with a more natural conversation.
1. 2008 Expenses. The Idaho TRS fund is supported by assessments on local
telephone access lines and on billed intrastate long-distance minutes. TRS expenses for 2008
total $274 078 , about 7.5% less than the previous year. The Administrator reported that
disbursements to Hamilton were $231 918. The administrative fees and expenses for the
reporting year were $42 009, about the same as in the prior year.
2. 2008 Revenues and Allocations. During 2008 , the average monthly number of
telephone access lines reported to the TRS Administrator was approximately 585 958 , down
about 9.5% from 2007. The number of intrastate toll minutes for 2008 totaled approximately
326 million minutes. The amount of toll minutes increased by about 5% from the prior year.
The table below shows 2008 TRS contribution sources and amounts.
2008 Revenue Sources Amount
Local Service Providers
($. 02/monthlline)$140 630
MTS/W A TS Providers
($.
0002/min)737
Interest Earned on Funds
TOTAL $209,406
Percentage of Total
67%
33%
100%
The 2008 year-end balance of the TRS fund was $405 115.
3. Proposed 2009 Budget.The Administrator projected an annual operating budget
for 2009 of $272 195. The budget includes a decrease in traditional relay usage reflecting user
migration to Internet and video relay services, as well as instant messaging services. The
Administrator also expects the line count and long-distance billed minutes to decrease for 2009.
The expected decrease in payments to Hamilton in 2009 is offset by the expense of a third-party
audit of the TRS Fund.
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. For FY 2008
NECA paid Hamilton about $1.3 million for IR and VRS usage. He estimated that Idaho
ORDER NO. 30759
proportional assessments for intrastate IR and VRS is five times the 2009 budget for the Idaho
TRS. If Idaho was responsible for IR and VRS usage, 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 2009 and
current reserves, the Administrator recommended that the existing TRS funding levels be
maintained for 2009. 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.
This will maintain a small cushion if the FCC makes any changes to the IR and VRS funding.
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 2009. 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 2008 Annual
Report. Based upon our review of the Report, we find that the 2008 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 2009 budget projection of $272 195 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 2009
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
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 2009 allocation between local service and toll service is just and
reasonable given the estimates in the number of access lines and toll minutes.
ORDER NO. 30759
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-09-
0 I 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. 30759
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;2SrA
day of March 2009.
ATTEST:
~6J firAJe D. Jewell
Commission Secretary
bls/O:GNR-O9-01 dh
ORDER NO. 30759
tI~
MARSHA H. SMITH, COMMISSIONER
D. KEMPTON, CO ~SIONER