20100414final_order_no_31050.pdf

Office of the Secretary
Service Date
April 14 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE
ADMINISTRATOR'S 2009 ANNUAL
REPORT AND ESTABLISHING THE
FUNDING LEVELS TO SUPPORT THE
TELECOMMUNICATIONS RELAY
SERVICE (TRS) PROGRAM
ORDER NO. 31050
CASE NO. GNR-I0-
On February 9, 2010, the Idaho Telecommunications Relay Service (TRS)
Administrator submitted his calendar year 2009 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 2009 Report and maintain the TRS
contributions at their current levels effective May 2010.
THE 2009 ANNUAL REPORT
The Administrator reported that the relay center handled 93 165 minutes of traffic in
calendar year 2009. This represents nearly a 32% decrease from calendar year 2008. 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 2009 also
decreased by about 18% 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 2009 while
usage of CapTel devices remained about the same. 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-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
ORDER NO. 31050
conversation. In 2009, traditional relay service comprised 45% of the total TRS-billed minutes
and CapTel calls comprised 55% of the calls. Since the 2006 introduction of CapTel in Idaho
the increase in CapTel usage has offset the decreases in traditional relay services. However
CapTel usage appears to have leveled off in 2009.
1. 2009 Expenses. The Idaho TRS fund is supported by assessments on local
telephone access lines and on billed intrastate long-distance minutes. TRS expenses for 2009
total $237 714, about 13% less than the previous year. The Administrator reported that
disbursements to Hamilton were $190 109. The administrative fees and expenses for the
reporting year were $46 605 and included a $4 000 charge for the third-party audit conducted in
late 2008.
2. 2009 Revenues and Allocations.During 2009, the average monthly number of
telephone access lines reported to the TRS Administrator was approximately 589 047, an
increase of about 3 000 lines from the prior year. The number of intrastate toll minutes for 2009
totaled more than 362 million minutes. The amount oftoll minutes increased by about 11 % from
the prior year. The table below shows 2009 TRS contribution sources and amounts.
2009 Revenue Sources Amount
Local Service Providers
($.
02/month/line)$128 291
MTS/W A TS Providers
($.
0002/min)72,446 ,
Interest Earned on Funds
TOTAL $200 771
Percentage of Total
63%
37%
100%
The 2009 year-end balance of the TRS fund was $369 172.
3. Proposed 2010 Budget.The Administrator projected an annual operating budget
for 2010 of $256 355. 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 stay about the
same. The Administrator anticipated that both the revenue and usage will remain the same as it
was in 2009. If assessment rates remain the same, the Administrator calculates that the end-of-
year reserve fund will decrease by approximately $52 000. He also expressed concern that
lowering the TRS rate could deplete the fund reserve.
ORDER NO. 31050
The Administrator also advised the Commission that the TRS contract with Hamilton
Telecommunications for relay and Cap Tel services expires on December 1 2010. Consequently,
the Administrator envisions additional expense for the preparation of a Request for Proposal
(RFP) as well as expenses in evaluating and awarding the new service provider contract.
4. Proposed TRS Funding Levels. Based upon the proposed budget for 2010 and
current reserves, the Administrator recommended that the existing TRS funding levels be
maintained for 2010. 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 unexpected expenses or changes occur.
STAFF RECOMMENDATION
Following its review of the Administrator s Report, Staff recommended the
Commission adopt the Report and the Administrator s projected budget for 2010. Staff also
concurred with the Administrator s recommendation that existing TRS contribution levels should
be continued. Staff also noted that the Administrator will incur additional expenses this year
caused by the issuance of the RFP for relay and CapTel services.
DISCUSSION
In this Order, the Commission formally adopts the Administrator s 2009 Annual
Report. Based upon our review of the Report, we find that the 2009 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 2010 budget projection of $256 355 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 2010
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 2010 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. 31050
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
$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-I0-
03 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, 61-1305, and 62-619.
ORDER NO. 31050
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I L/f/\
day of April 2010.
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, COM
ATTEST:
ftr~Je D. Jewell
Commission Secretary
bls/O:GNR-IO-03 dh
ORDER NO. 31050