20160401final_order_no_33495.pdf

Office of the Secretary
Service Date
April 1,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE SURCHARGE )
FOR THE IDAHO TELECOMMUNICATIONS )CASE NO.GNR-T-16-03
SERVICE ASSISTANCE PROGRAM )
___________________________________
)ORDER NO.33495
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 the cost 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 “grant limited federal ‘lifeline’
contributions to low-income customers.”See Idaho Code §56-901(1).
Idaho telephone companies provide assistance in the form of a monthly discount of
$2.50 to eligible applicants.Idaho Code §56-902.To be eligible to receive reimbursement for
providing low-income benefits (ITSAP and the federal Lifeline assistance),a company must be
designated as an eligible telecommunications carrier (ETC)by a state commission.47 C.F.R.§
54.201(a)(l).ITSAP benefit applicants must be the head of a household and meet narrowly
targeted eligibility criteria established by the Department of Health and Welfare.Idaho Code §
56-903.
THE 2015 ITSAP ANNUAL REPORT
In the annual report filed March 3,2016,the ITSAP Administrator reported a 2%
increase in wireline access lines,a 6%increase in wireless access lines,and a 37%decrease in
the number of ITSAP recipients.The average number of wireline access lines per month
reported to the Administrator was 435,822,compared to 427,065 in 2014.The average number
of wireless access lines per month was 1,414,763 compared to 1,329,112 in 2014.Overall,there
was an increase of about 94,400 in the total number of average monthly lines subject to the
ITSAP surcharge -1,850,584 lines per month compared to 1,756,177 in 2014.The average
number of reported ITSAP recipients per month decreased from 10,674 in 2014 to 6,693 in 2015.
The gross surcharge revenue for the year was reported at $491,398,of which
$124,936 (25%)was assessed on wireline services,and $366,462 (75%)was assessed on
ORDER NO.33495 1
wireless services.The administrator explained that ETCs remit net surcharge revenue,which is
gross surcharge revenue less any assistance credits provided to eligible recipients and the ETC’s
administrative costs.et surcharge revenue collected and deposited in 2015 totaled $398,971.
Telecommunications companies received $226,245 in disbursements for ITSAP
credits paid to eligible recipients,compared to $365,725 in 2014.Disbursements for company
administrative costs decreased from $5 1.979 in 2014 to $33,089 in 2015.
The Administrator’s fees and expenses were $18,011 for 2015.The Administrator
reported a fund cash balance at the end of 2015 of $1,278,348.
2016 BUDGET AND TRENDS
The ITSAP Administrator projected the funding requirements for 2016 will continue
to decrease.The Administrator estimated that the ITSAP recipient reimbursements to qualifying
companies for 2016 will be about $148,230,and that expenses will be $38,950 for costs
associated with administration of the program —which includes the Administrator’s costs of
$11 ,900.and the telephone companies’administrative costs of 27,050.
To establish the 2016 budget,the Administrator estimated that the number of access
lines subject to the surcharge will be about 1,736,347 per month,and the average number of
ITSAP recipients will be about 5,121 per month.Based on this data,the Administrator projected
the funding requirements for 2016 will be about $208,361.
In 2015,the surcharge rate was reduced to $0.01 per access line.The Administrator
believes it is impractical to reduce the surcharge rate below $0.01,and thus recommended
maintaining the rate of $0.01 per wireline and wireless access line.With this rate,the
Administrator projected that the fund balance will be more than sufficient to reimburse
companies for assistance credits provided,and will preserve an adequate balance for unexpected
occurrences.The estimated balance for end-of-year 2016 is projected at about $1,090,000.
Staff reviewed the 2015 annual report,the 2016 budget,and the 2016 funding
recommendation.Staff supports the recommendation to maintain the surcharge rate at $0.01 per
access line,and thus recommended the Commission approve the Administrator’s rate proposal
and the 2016 budget.
COMMISSION FINDINGS
The Commission has reviewed the Administrator’s 2015 annual report,proposed
budget,and Staff’s review.We find that the Administrator’s recommendations are fair,just and
ORDER NO.33495
reasonable,and that it would be impractical to reduce the surcharge rate.We further find that
maintaining the surcharge rate at $0.01 per access line is appropriate to sustain an adequate fund
balance and provide sufficient funding for unanticipated program changes.Accordingly,we
accept the Administrator’s 2015 annual report and proposed monthly ITSAP surcharge rate,and
we approve the Administrator’s 2016 budget.
ORDER
IT IS HEREBY ORDERED that the Commission accepts the Administrator’s 2015
annual report and 2016 budget.
IT IS FURTHER ORDERED that the monthly ITSAP surcharge rate shall be
maintained at $0.01 per access line per month.
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 §6 1-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3/
day of March 2016.
KR TINE RAPER MISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
(-
Jçan D.Jewell(!
COmmission Secretary
0:GNR-T-I 6-O3dh
ORDER NO.33495 3