HomeMy WebLinkAbout20110428final_order_no_32237.pdfOffice of the Secretary
Service Date
April 28,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SURCHARGE FOR )
THE IDAHO TELECOMMUNICATIONS )CASE NO.GNR-T-11-03
SERVICE ASSISTANCE PROGRAM )
____________________________________
)ORDER NO.32237
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 §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 5.06 per access line per
month for the last four years.Order No.31040.
In her report filed March 1,2011,the ITSAP Administrator reported gross surcharge
revenues of $1,111,000 during 2010,a slight decrease from the amount collected during 2009.
Disbursements to eligible subscribers decreased slightly to $1,159,958 from the previous year’s
total of $1,175,529.Disbursements to telephone companies for administrative costs decreased
and totaled $93,154.During 2010,an average of 27,539 customers received ITSAP each month,
a little less than the previous year average of 27,690 per month.The ITSAP fund balance at the
end of 2009 was $70,823.
The Administrator also reported that the number of local wireline access lines
decreased approximately 8%,along with a small decrease in wireless access lines of
approximately .6%.Overall,there was a decrease of approximately 40,750 lines in the total
number of lines subject to the ITSAP surcharge.
The ITSAP Administrator estimates the funding requirements for 2011 will be
approximately $1,277,100 and that the total line counts will decrease slightly,with the number of
wireline access lines decreasing while wireless lines remain steady.The Administrator also
ORDER NO.32237 1
estimates the number of ITSAP recipients will remain relatively unchanged at 27,500 per month
and telephone companies’administrative costs will increase slightly to approximately $108,100.
Based on these projections,the Administrator recommended the current surcharge level of $.06
per line per month should be increased to $.07.At the existing rate,the Administrator projected
the fund balance will be approximately’$3,400 at the year’s end.an amount nearing insolvency.
Increasing the rate to $07 should provide a year-end balance of approximately $99,547.Staff
reviewed the Administrator’s report and supported the Administrator’s recommendation to
increase the ITSAP current surcharge of $.06 per access line per month to $.07 per line per
month.
Based on the Administrator’s report and Staff’s recommendation,the Commission
has determined to increase the current ITSAP surcharge to $.07 per access line per month.The
Administrator’s report shows that a surcharge level of $.07 per line per month will result in
sufficient funds to meet the 2011 funding requirements for all eligible households,while
retaining a reasonable reserve balance.
ORDER
IT IS HEREBY ORDERED that the ITSAP surcharge of $.07 per access line per
month on all end-user business,residential and wireless access services will take effect June 1.
2011.
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 §61-626.
ORDER NO.32237
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 8”
day of April 2011
ATTEST:
DENPAULKJELLA
d &••L
MARSHA H.SMITH,COMMiSSIONER
L
J’an D.Jewelfj’
Cbmmission Secretary
O:GNR-T-l I-O3ws
MACK A.
ORDER NO.32237 3