20090902notice_to_usf_recipients.pdf

Office of the Secretary
Service Date
September 2, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE ANNUAL
REVISION OF THE UNIVERSAL SERVICE
FUND SURCHARGES TO BECOME
EFFECTIVE OCTOBER 1, 2009.NOTICE TO USF RECIPIENTS
THAT FUND IN G LEVELS MUST
BE ADJUSTED
CASE NO. GNR- T -09-
On July 16 2009, the Administrator of the Idaho Universal Service Fund (USF) filed
her Annual Report to the Commission for the period July 1 , 2008 through June 30, 2009. Funds
from the USF are distributed to eight rural telecommunications companies to assist the
companies in meeting their residual revenue requirement as determined by the Commission in
past rate cases. For a company to continue to receive USF funding its average one-party, single-
line service rate must be revised if the difference in the company s average rate and the statewide
average threshold rate (125% of the statewide average) is greater than three percent. IDAPA
31.46.01.106. In addition, a company s rate for switched access service must be revised if it is
more than three percent below the weighted statewide average rate, and the difference in the
company s annual revenue for switched access service and the statewide average is greater than
000. IDAP A 31.46.01.106.02.
The Administrator reported that the 2009 statewide weighted average is $20.61 for
residential service and $32.43 for business service, bringing the threshold rates for companies to
maintain USF eligibility to $25.76 for residential service, and $40.54 for business service. The
USF Administrator noted that none ofthe eight companies receiving USF funding currently meet
the eligibility requirements established by Idaho Code ~ 62-610 and Commission USF Rule 106.
The residential service rates for each company are more than 3% below the threshold rates for
USF eligibility.
The Commission s rules state that the Commission may by Order change a telephone
company s funding from the USF after issuing notice that USF funding is at issue and providing
an opportunity to be heard in person or in writing. IDAPA 31.46.01.106.04. Idaho Code ~ 62-
610 requires the Commission to adjust the funding received by the eight eligible telephone
companies. Accordingly, the Commission issues this Notice to the eight companies that their
NOTICE TO USF RECIPIENTS THAT
FUNDING LEVELS MUST BE ADJUSTED
USF funding is at issue and provides an opportunity for them to file written comments in
response to the notice.
NOTICE THAT USF FUNDING IS AT ISSUE
YOU ARE HEREBY NOTIFIED that, to be eligible for USF funding, a company
average one-party, single-line rate must be revised to equal or exceed the 125% threshold line
rate if the difference in the company s current average rate and the statewide average threshold is
greater than 3%, and the difference in the annual revenue associated with the company s current
rate and the revenue associated with the statewide average threshold rate is over $6 000. IDAP A
31.46.01.106. After review of the USF Administrator s Annual Report, the Commission has
determined that none of the eight telephone companies receiving USF funds currently meet these
threshold eligibility requirements.
YOU ARE FURTHER NOTIFIED that the USF funding for each company will be
adjusted as if the company s rates meet the minimum threshold required rates. The Commission
proposes the following for each of the eight companies to comply with the requirements of Idaho
Code ~ 62-610:
1. A TC Communications must increase its local residential rates.
Company s annual USF funding would be reduced by $63 850.
The
2. Cambridge Telephone Company must increase its local residential rates.
The Company s annual USF funding would be reduced by $29 218.
3. Direct Communications Rockland must increase its local residential rates.
The Company s annual USF funding would be reduced by $19 446.
4. Fremont Telecom must increase its local residential rates. The Company
USF funding would be reduced by $66 636.
5. Inland Telephone Company must increase its local residential rates. The
Company s annual USF funding would be reduced by $15 557.
6. Midvale Telephone Company must increase its local residential rates. The
Company s annual USF funding would be reduced by $28 875.
7. Rural Telephone Company must increase its local residential rates. The
Company s annual USF funding would be reduced by $13 907.
8. Silver Star Telecom must increase its local residential rates.
Company s annual USF funding would be reduced by $7 424.
The
NOTICE TO USF RECIPIENTS THAT
FUNDING LEVELS MUST BE ADJUSTED
YOU ARE FURTHER NOTIFIED that Idaho Code ~ 62-610 requires each USF
recipient company to increase its residential rates to remain eligible to receive USF
disbursements.
YOU ARE FURTHER NOTIFIED that the Commission will accept written
comments on the proposed adjustments to the USF funding if filed within twenty-one (21) days
from the date of this Notice. The comment must contain a statement of reasons supporting the
comment. Written comments shall be mailed to the Commission at the address reflected below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
DATED at Boise, Idaho this /~r day of September 2009.
~/-
JI EMPTON , PR SIDENT
MARSHA H. SMITH, COMMISSIONER
~~~gONER
ATTEST:
bls/O:GNR- T-09-09
NOTICE TO USF RECIPIENTS THAT
FUNDING LEVELS MUST BE ADJUSTED