HomeMy WebLinkAbout20090413final_order_no_30775.pdfOffice of the Secretary
Service Date
April 13, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
SURCHARGE FOR THE IDAHO
TELECOMMUNICATIONS SERVICE
ASSISTANCE PROGRAM ORDER NO. 30775
CASE NO. GNR- T -09-
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 four years ago was $.12 per access line per month but decreased two years in a
row and has been steady at $.06 per access line per month. Order No. 30002.
In her report filed March 5 , 2009, the ITSAP Administrator reported gross surcharge
revenues of $1 190 003 during 2008 , a slight increase over the amount collected during 2007.
Disbursements to eligible subscribers declined to $1 172 978 from the previous year s total of
324 118. Disbursements to telephone companies for administration costs decreased slightly
and totaled $129 341. During 2008, an average of 28 006 customers received ITSAP each
month. The ITSAP balance at the end of2008 was $340 917.23.
The Administrator also reported that the number of local wireline access lines
decreased approximately 4., while wireless access lines increased by approximately 3.5%.
Overall, there was a small decrease of approximately 4 900 lines in the total number of lines
subject to the ITSAP surcharge.
The ITSAP Administrator estimates the funding requirements for 2009 will be
approximately $933 467 and that the total line counts will decrease slightly, with the number of
wireline access lines decreasing while wireless lines continue to increase. The Administrator
also estimates the number of ITSAP recipients will decrease to 26 877 per month and telephone
ORDER NO. 30775
companies' administrative costs will be relatively unchanged at $127 550. Based on these
projections, the Administrator recommended the current surcharge level of $.06 per line per
month should not be changed. At the existing rate, the Administrator projected the fund balance
will be approximately $223 600 at the year s end, which is adequate to maintain a three-month
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
Administrator s report shows that a surcharge level of $.06 per line per month will result in
sufficient funds to meet the 2009 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 9 61-626.
ORDER NO. 30775
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /O-f+'
day of April 2009.
D. KEMPTO , PRE IDENT
MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFO
ATTEST:
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D. J well
C mmission Secretary
O:GNR-09-
ORDER NO. 30775