20100414final_order_no_31040.pdf

Office of the Secretary
Service Date
Apri114 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
SURCHARGE FOR THE IDAHO
TELECO MMUNI CA TI 0 NS SER VI CE
ASSISTANCE PROGRAM ORDER NO. 31040
CASE NO. GNR-10-
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 pr9gram 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 has been as high as $.12 per access line per month, but the Commission
decreased it two years in a row and the surcharge has been steady at $.06 per access line per
month for the last three years. Order No. 30775.
In her report filed February 26, 2010, the ITSAP Administrator reported gross
surcharge revenues of $1 207 317 during 2009, a slight increase over the amount collected
during 2008. Disbursements to eligible subscribers increased slightly to $1 175 529 from the
previous year s total of $1 172 978. Disbursements to telephone companies for administrative
costs decreased slightly and totaled $126 330. During 2009, an average of 27 690 customers
received ITSAP each month, a little less than the previous year average of 28 006 per month.
The ITSAP fund balance at the end of 2009 was $221 922.
The Administrator also reported that the number of local wireline access lines
decreased approximately 6%, while wireless access lines increased by approximately 8%.
Overall, there was an increase of approximately 41 235 lines in the total number oflines subject
to the ITSAP surcharge.
The ITSAP Administrator estimates the funding requirements for 2010 will be
approximately $1 208 000 and that the total line counts will decrease slightly, with the number of
ORDER NO. 31040
wireline access lines decreasing while wireless lines continue to increase. The Administrator
also estimates the number of ITSAP recipients will remain relatively unchanged at 26 252 per
month and telephone companies' administrative costs will decline slightly to approximately
$95 600. 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 $177 100 at the year s end, which is adequate
to maintain a two-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 2010 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. 31040
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /:;2
day of April 2010.
JIM . KEMPTO IDENT
MARSHA H. SMITH, COMMISSIONER
~~.
MACK A. REDFO
ATTEST:
~Af
D. Jewel
Commission Secretary
O:GNR-IO-O2 ws
ORDER NO. 31040