20180404final_order_no_34019.pdf

Office of the Secretary
Service Date
April 4,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE )ADMINISTRATOR'S 2017 ANNUAL REPORT )CASE NO.GNR-T-18-02
AND ESTABLISHING THE FUNDING )LEVELS TO SUPPORT THE )TELECOMMUNICATIONS RELAY SERVICE )ORDER NO.34019
(TRS)PROGRAM )
On February 28,2018,the Idaho Telecommunications Relay Service (TRS)
Administrator submitted the calendar year 2017 Annual Report and 2018 TRS Budget to the
Commission.Each year,the Commission reviews the Administrator's Annual Report and
determines the appropriate funding levels necessary to meet the TRS program's expenses on a
prospective basis.IDAPA 31.46.02.202 and .205.In this Order we accept the Administrator's
2017 Report,2018 Budget and maintain TRS contributions at their current levels effective May
1,2018.
BACKGROUND
The Idaho Legislature established the TRS Act in 1992 in accordance with Title IV
of the federal Americans with Disabilities Act.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.The Idaho TRS service provider is Hamilton Telecommunications (Hamilton).Hamilton
operates the relay center where oral conversations are converted or "relayed"to text-type and
vice versa.The relay center also provides speech-to-speech,Spanish-to-Spanish,video,and
Internet relay services.The Commission authorized the Administrator to renew the relay
contract with Hamilton,and the contract was signed July 2016,and runs through November 30,
2019.See Minutes,June 20,2016,Decision Meeting.
The Idaho TRS fund is supported by assessments on local telephone service
(residential and business)access lines and on billed intrastate long-distance minutes.In-state
relay traffic and captioned telephone (CapTel)I services are reimbursed by Idaho's TRS fund,
'CapTel allows hard-of-hearingusers 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 conversation.
ORDER NO.34019 1
while the firm of Rolka Loube Saltzer Associates,LLC reimburses Hamilton for interstate calls
(includingintrastate Internet relays and Internet video relay service).
THE 2017 ANNUAL REPORT
The Administrator reported that the relay center handled 12,135 minutes of traffic in
calendar year 2017.This represents a 20%decrease from calendar year 2016.2 The number of
CapTel units increased by 3%,while usage decreased by 2%to 24,997 minutes from the
previous year.The 2017 average answer time by Hamilton was 2 seconds.
1.2017 Expenses.The TRS expenses for the year totaled $106,965.Disbursements
to Hamilton were $84,528.The administrative fees and expenses for the reporting year were
$22,140.The end-of-year fund balance was $273,987.
2.2017 Revenues and Allocations.The TRS fund is supported by assessments on
local exchange telephone service (residential and business)access lines and on billed intrastate
long distance minutes.The total number of intrastate long distance minutes reported by the
telephone companies decreased by 21%from approximately 158,535,000 minutes in 2016 to
approximately 124,961,000 minutes in 2017.The average monthly number of telephone lines
reported decreased by 24%from 391,132 in 2016,to 297,462 in 2017.
The 2017 annual total contribution to the TRS fund was $96,384,a decrease of
$13,587 (13%)from 2016.Local exchange services contributed $71,391 (74%)and
MTS/WATS contributed $24,992 (26%).In Commission Order No.33730,the per-line and per-
minute assessments for 2017 were maintained at $0.02 and $0.0002,respectively.The table
below shows 2017 TRS contribution sources and amounts.
2016 Revenue Sources Amount Percentage of Total
Local Service Providers
($.02/month/line)$71,391 74%
MTS/WATS Providers
($.0002/min)24,992 26%
TOTAL $96,384 100%
3.Proposed 2018 Budget.The Administrator projects an annual operating budget of
$110,650.This budget reflects a continued decline in traditional relay usage as well as a
triennial audit expense of approximately $7,000 since it will be paid during 2018.If assessment
2 By way of comparison,there were 21,397 minutes in 2015,and 15,175 minutes in 2016.
ORDER NO.34019 2
rates remain unchanged,the Administrator calculates the 2018 end-of-year fund balance will
continue to have a reasonable reserve (2018 year-end balance is projected to be approximately
$250,000).
4.Proposed 2018 TRS Fundine Levels.Based on the proposed budget for 2018 and
the 2017 end-of-year reserves,the Administrator recommends that the Commission maintain the
assessment rates at the current level for local exchange lines at $.02 per month and $.0002 per
intrastate MTS/WATS billed minute.This will provide a cushion should unexpected expenses or
program changes occur at the Federal Communications Commission (FCC).
STAFF RECOMMENDATION
Following its review of the Administrator's Report,Staff recommended that the
Commission adopt the Report and the Administrator's projected budget for 2018.Staff noted the
Idaho citizens continue to be well served by the Administrator and the relay services provided by
Hamilton.Staff also noted that the 2018 budget projection of $110,650 is acceptable based on
the anticipated TRS expenses.The projected revenue together with the current fund balance
should be sufficient to meet 2018 expenses,including any unforeseen events.Staff,therefore,
agreed with the Administrator's recommendation to maintain the TRS contributions at the
current fundinglevels of $0.02 per access line per month and $0.0002 per intrastate MTS/WATS
minute.
DISCUSSION AND FINDINGS
In this Order,the Commission formally adopts the Administrator's 2017 Annual
Report.Based upon our review of the Report,we find that the 2017 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 2018 budget projection of $110,650 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 2018
expenses.
Based upon our review of the Annual Report and the Staff's recommendations,we
fmd that it is just and reasonable to maintain the TRS contributions at their current funding
levels.The TRS contributions shall be set at $0.02 per access line per month and $0.0002 per
intrastate MTS/WATS minute.The Commission further finds that the projected 2018 allocation
ORDER NO.34019 3
between local service and toll service is just and reasonable given the estimates in the number of
access lines and toll minutes.
ORDER
IT IS HEREBY ORDERED that the Commission accepts the Administrator's 2017
annual report and 2018 budget.
IT IS FURTHER ORDERED that the 2018 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,effective May 1,2018.
IT IS FURTHER ORDERED that the 2018 TRS funding obligation for telephone
corporations providing intrastate MTS/WATS service be maintained at the existing level of
$0.0002 per intrastate billed minute.
IT IS FURTHER ORDERED that the TRS Administrator continue to monitor
expenditures,revenues,and FCC actions.Any time it appears that revenues will not cover
expenditures,the TRS Administrator is to immediately notify the Commission so 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 interlocutoryOrders previously issued in this Case No.GNR-T-18-
02 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 interlocutoryOrders 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.34019 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2018.
PAUL KJELLANDER,PRESIDENT
KRIS"ÍNE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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