20200108Final_Order_No_34524.pdf

Office of the Secretary
Service Date
January 8,2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE 2017 REVIEW OF )CASE NO.GNR-T-17-05
THE IDAHO UNIVERSAL SERVICE FUND )
)ORDER NO.34524
With this Order,the Commission closes this generic docket.
BACKGROUND
In Order No.33951,the Commission opened a generic docket to allow interested
stakeholders to provide insight and commentary on the continued viabilityof the Idaho Universal
Service Fund ("Fund").See Order Nos.33851.The Commission ordered a schedule to be adopted,
including two public workshops,and a deadline for interested stakeholders to submit position
papers.Order No.33951 at 2.The first public workshop occurred on Wednesday,January 17,
2018,and interested stakeholders submitted position papers by January 31,2018.See id.
In lieu of conducting the second workshop,Commission Staff proposed to report on
the stakeholders'position papers,including Staff's own analysis,and that the stakeholders be
allowed to respond to that report.See Staff Summary and Report,Case No.GNR-T-17-05.Based
on the parties'positions and its own analysis relatedto Fund sustainability,Staff's report suggested
three options:
Staff Option 1:Leave the Fund as is,cap it based on the projected surcharge revenue
collected each year,and adjust the distribution to the recipients.This option would
be hard to execute and could conflict with Fund assessment and distribution
methodologies as codified in the Telecommunications Act of 1988.
Staff Option 2:Seek statutoryrevisions.Specifically,approach the legislature about
updating and revising the statute.These changes would most likely include adding
assessments on,and expanding disbursements to include,all qualifyingproviders,
so long as they are serving unserved and underserved areas according to the
amended statute.
Staff Option 3:Leave Fund disbursement at its current level,and supply the Fund
with money from the general fund like the State of Washington does.This would
also require involvingthe Idaho legislature to update and revise the statute.
Id.at 1 1.
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Four stakeholders replied to Staff's initial report.See Staff's Second Summary and
Report,filed on September 7,2018 (summarizing the replies).Staff reviewed these replies and
determined that the stakeholders preferred Staff Option 2.Staff then filed a second report
recommending that interested stakeholders create and disperse proposed legislation to the other
stakeholders by October 4,2018.The stakeholders would then meet to discuss the proposed
legislation and suggest additional process,after which Staff would file a final report with the
Commission.
No stakeholders proposed legislation as suggested by Staff.But three stakeholders-
CTIA,Idaho Cable Broadband Association,and Idaho Telecom Alliance-otherwise responded
to Staff's second report.These three stakeholders viewed legislative proposals as premature,
favoring further research into possible solutions.As no legislative solutions were proposed,Staff
did not pursue further process in this docket during 2019.
COMMISSION FINDINGS AND DECISION
The Commission opened this generic docket in order to facilitate discussion among
stakeholders about the problems facing the Fund and possible solutions.See Order No.33851.The
viabilityof the Fund is threatened by two trends we have observed for many years.Customers are
increasingly discontinuing their wireline telecommunications services in favor of cell phones and
VoIP technology.As the wireline telecommunications customer base erodes,the end-user
surcharges levied on the remaining wireline telecommunications customers must increase,further
encouraging these remaining customers to consider alternative telecommunications services.See
IDAPA 31.46.01.103-104.For almost two years,the telecommunications industry and Staff have
worked to define the problem,contemplated the best procedure for finding a solution,and
proposed a handful of possible solutions.While a consensus has not been reached,it seems clear
that any solution will be legislative in nature.More importantly,the stakeholders are aware that a
solution is necessary and appear to be committed to finding a solution.
Therefore,this docket has served its purpose and should be closed.While we believe
Staff should be included in industry discussions about possible USF reforms,the discussion must
now be led by the stakeholders.For one,many possible solutions are whollyoutside our existing
regulatory authority.Also,any legislative solution should be brought by stakeholders,not by this
Commission.We appreciate the efforts of the stakeholders and Staff as part of this docket,and
encourage them to continue working together towards a long-termsolution.
ORDER NO.34524 2
ORDER
IT IS HEREBY ORDERED that this generic docket be closed.
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 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this Z
day of January,2020.
PAUL KJELLA D PRESIDENT
KRI TINE RAPER,COÌWMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTES :
Diane M.Hanian
Commission Secretary
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