20190326final_order_no_34285.pdf

Office of the Secretary
Service Date
March 26,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE )ADMINISTRATOR'S 2018 ANNUAL REPORT )CASE NO.GNR-T-19-03
AND ESTABLISHING THE FUNDING )LEVELS TO SUPPORT THE )TELECOMMUNICATIONS RELAY SERVICE )ORDER NO.34285(TRS)PROGRAM )
On February 7,2019,the Idaho Telecommunications Relay Service (TRS)
Administrator submitted the calendar year 2018 Annual Report and 2019 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
2018 Report,2019 Budget and maintain TRS contributions at their current levels effective May 1,
2019.
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 functionallyequivalent 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 July2016,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 captionedtelephone(CapTel)!services are reimbursed by Idaho's TRS fund,while the
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.34285 1
firm of Rolka Loube Saltzer Associates,LLC reimburses Hamilton for interstate calls (including
intrastate Internet relays and Internet video relay service).
THE 2018 ANNUAL REPORT
The Administrator reported that the relay center handled 10,698 minutes of traffic in
calendar year 2018.This represents a 12%decrease from calendar year 2017.2 The number of
CapTel units held steady,while usage decreased by 36%to 15,973 minutes from the previous year.
The 2018 average answer time by Hamilton was 0.34 seconds.
1.2018 Expenses.The TRS expenses for the year totaled $87,925.Disbursements to
Hamilton were $56,405.The administrative fees and expenses for the reporting year were
$31,520,which included $7,000 for the tri-annual audit.The end-of-year fund balance was
$271,759.
2.2018 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 increased slightly from approximately 124,961,000 minutes in 2017 to
approximately 125,050,000 minutes in 2018.The average monthly number of telephone lines
reported decreased by 15%from 297,462 in 2017,to 253,004 in 2018.
The 2018 annual total contribution to the TRS fund was $85,732,a decrease of $10,652
(11%)from 2017.Local exchange services contributed $60,722 (71%)and MTS/WATS
contributed $25,010 (29%).In Commission Order No.34019,the per-line and per-minute
assessments for 2018 were maintained at $0.02 and $0.0002,respectively.The table below shows
2018 TRS contribution sources and amounts.
2018 Revenue Sources Amount Percentage of Total
Local Service Providers
($.02/month/line)$60,722 71%
MTS/WATS Providers
($.0002/min)25,010 29%
TOTAL $85,732 100%
2 By way of comparison,there were 15,175 minutes in 2016,and 12,135 minutes in 2017.
ORDER NO.34285 2
3.Proposed 2019 Budget.The Administrator projects an annual operating budget of
$69,610.This budget reflects a continued decline in traditional relay usage.If assessment rates
remain unchanged,the Administrator calculates the 2019 end-of-year fund balance will continue
to have a reasonable reserve (2019 year-end balance is projected to be approximately $280,149).
4.Proposed 2019 TRS Funding Levels.Based on the proposed budget for 2019 and
the 2018 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).
5.Hamilton Communications Relay and Caption TelephoneContract.The initial three-
year contract with Hamilton will conclude on December 1,2019.Hamilton and the TRS have the
option to negotiate the first of three possible one-year extensions.The Administrator will inform
the Commission on this situation as it unfolds.
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 2019.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 2019 budget projection of $69,610 is acceptable based on the
anticipated TRS expenses.The projected revenue together with the current fund balance should
be sufficient to meet 2019 expenses,includingany unforeseen events.Staff,therefore,agreed with
the Administrator's recommendation to maintain the TRS contributions at the current funding
levels 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 2018 Annual
Report.Based upon our review of the Report,we find that the 2018 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 2019 budget projection of $69,610 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 2019
expenses.
ORDER NO.34285 3
Based upon our review of the Annual Report and the Staff's recommendations,we find
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 2019 allocation 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 2018
Annual Report and 2019 budget.
IT IS FURTHER ORDERED that the 2019 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 1,2019.
IT IS FURTHER ORDERED that the 2019 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 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.34285 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 7ý
day of March 2019.
PAUL KJELLAÑ R,PRESIDENT
KRI INE RAPER COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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ORDER NO.34285 5