20171221notice_of_public_workshops_order_no_33951.pdf

Office of the Secretary
Service Date
December 21,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE 2017 REVIEW OF )CASE NO.GNR-T-17-05
IDAHO UNIVERSAL SERVICE FUND )
)NOTICE OF
)PUBLIC WORKSHOPS
)ORDER NO.33951
The Idaho Telecommunications Act of 1988 created a Universal Service Fund (IUSF)
to maintain "the universal availability of local exchange service at reasonable rates and to
promote the availability of message telecommunication service (MTS)at reasonably comparable
prices throughout the state of Idaho."Idaho Code §62-610(1).The IUSF is funded by end-user
surcharges on local exchange service,MTS,and wide area telecommunications service (WATS)
(long-distance).See IDAPA 31.46.01.103-104.The Commission annuallyestablishes monthly
surcharges levied on local exchange service and intrastate MTS/WATS service.See Idaho Code
§62-610(2).The Commission then annuallydistributes IUSF funds to qualifyinghigh-cost local
exchange telephone companies to supplement their annual revenue requirements.See Idaho
Code §62-610..
In order to track and make proper distributions from the IUSF the Commission
contracts with a USF Administrator.See Idaho Code §62-610F and IDAPA 31.46.01.102.The
Administrator submits an annual report to the Commission.See id.In the report,the
Administrator reviews the fund balance and recommends changes,if any,to the surcharge rates
to maintain adequate funding levels.After reviewing the report,the Commission issues an Order
prescribing IUSF surcharge rates for the next 12 months.See IDAPA 31.46.01.104-106.On
August 22,2017,the Commission approved an annual IUSF surcharge for 12 months,effective
September 1,2017.See Order No.33851.
While Commission Order No.33851 approved surcharge increases,it also found that
several factors were making it increasingly difficult to predict a necessary IUSF fund balance
and determine appropriate rates so that qualifying telephone companies maintain IUSF
eligibility.See id.In general,as cellular and Voice over Internet Protocol (VoIP)technology
continues to eclipse wireline telecommunications services and long-distance calling,Idaho's
landline customer base rapidly erodes.Simultaneously,the statewide average residential and
NOTICE OF PUBLIC WORKSHOPS
ORDER NO.33951 1
business rates for telephone service are steadily increasing.Further,the companies with the
largest market share have increased their stand-alone residential rates to encourage purchase of
bundled services that include local residential service.
These combined factors have produced a shift that is not reflected in the IUSF annual
report or distribution rate calculations because companies are only required to report stand-alone
residential rates.In addition,the FCC has issued orders that have,in essence,capped inter-
carrier compensation rates,causing a further decline in statewide average switched access rates
and further impacting IUSF eligibility.In the Matter of Connect America Fund,26 F.C.C.R.
17663 (2011);In the Matter of Connect America Fund,etc.,29 F.C.C.R.8769 (2014),and see
Order Nos.32637at 4;32883 at 3-4.
Because of these factors,Commission Staff expressed grave concerns about the
continuingviability of the IUSF.The Commission agreed,and,in Order No.33851,found it
prudent to take a hard look at the IUSF's continued viability.The Commission ordered that a
generic docket be opened so interested stakeholders,including Staff,the Administrator,
companies taking distributions from the IUSF,and the general public,might provide insight and
commentary on how best to handle the IUSF,given the complicating factors discussed above.
With this Notice,the Commission opens the generic docket contemplated in Order
No.33851.The Commission also schedules a series of workshops for its Staff,the IUSF
Administrator,companies taking IUSF distributions,the general public,and any other interested
persons or stakeholders to meet to discuss how the IUSF relates to the current legal and
regulatory framework,the evolving telecommunications landscape,and universal
telecommunications services in Idaho generally.
NOTICE OF PUBLIC WORKSHOPS
YOU ARE NOTIFIED that the Commission's Staff will conduct live and telephonic
workshopsfor the IUSF Administrator,companies taking IUSF distributions,the general public,
and any other interested persons or stakeholders according to the followingschedule:
1.FIRST MEETING,WEDNESDAY,JANUARY 17,2018,AT 10:00 A.M.(MST),IN THECOMMISSION'S HEARING ROOM,AT 472 W.WASHINGTON,BOISE,IDAHO;
2.WEDNESDAY,JANUARY 31,2018 (COB),MEETING POSITION PAPERS FROMPARTICIPANTSDUEFORDISTRIBUTIONTOPARTICIPANTS:AND
3.SECOND MEETING,WEDNESDAY FEBRUARY 28,2018,AT 10:00 A.M.(MST),INTHECOMMISSION'S HEARING ROOM,AT 472 W.WASHINGTON,BOISE,IDAHO.
NOTICE OF PUBLIC WORKSHOPS
ORDER NO.33951 2
The workshops will permit participants to attend in person or call in on a toll-free line.To call
in,dial toll-free [phone] and,when prompted,enter the Participant Code 4435939.A
copy of Staff's outline for the workshops will be posted on the Commission's website and is
attached to this Notice.
With this Notice,the Commission is directing its Staff to conduct workshops in
person and by telephone to make it easier for more stakeholders and interested persons to
participate.At this time,the Commission intends that its Staff conduct two workshops,as noted
above.If,however,the Commission receives written comments or requests from stakeholders or
other interested persons specifically asking the Commission to schedule additional workshops in
other parts of the State,the Commission will consider those requests.
At the first workshop,Commission Staff will summarize the issues related to the
ongoing viabilityof the IUSF and potential solutions and outcomes,with the goal of facilitating
an informal,preliminarydiscussion among stakeholders of the issues outlined in this Notice and
in Order No.33851.Position papers will then be created by those stakeholders desiring to more
formally state their position,in order to allow positions to be analyzed and responded to prior to
and during the second workshop.
YOU ARE FURTHER NOTIFIED that all workshops and hearings in this matter will
be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act
(ADA).Persons needing the help of a sign language interpreter or other assistance in order to
participate in or to understand testimony and argument at a public hearing may ask the
Commission to provide a sign language interpreter or other assistance at the hearing.The
request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail:[e-mail]
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000,et seq.
NOTICE OF PUBLIC WORKSHOPS
ORDER NO.33951 3
ORDER
IT IS HEREBY ORDERED that a schedule of stakeholder workshops is established,
as described above.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this -
day of December 2017.
PAUL KJET LANI R,PRESIDENT
KRlŠl INE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONERATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\LORDERS\GNRTl705 sci NtcWrkshpdoc
NOTICE OF PUBLIC WORKSHOP
ORDER NO.33951 4
Idaho Public Utilities Commission
Idaho Universal Service Fund Workshop
GNR-T-17-05
January 17,2018
10:00 a.m.-3:00 p.m.
Fund update -2017 Year-end report from AlysonAnderson,USF Administrator.
o Line count changes.
O Cash flow/payments.
o Sustainability heading into 2018?
o Five year trend analysis.
Where to next?
o Cap the fund and gradually eliminate it over a period of time?
o Cap the fund and provide disbursements with available funding?
o Consider rate deregulation for all carriers?
o Other thoughts or discussions?
Attachment to Order No.33951
Case No.GNR-T-17-05