19990827Notice of Proposed Rulemaking.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE AMENDMENT OF RULE 106 OF THE COMMISSION’S UNIVERSAL SERVICE FUND RULES (IDAPA 31.46.01.000 et seq.).
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NOTICE OF PROPOSED
RULEMAKING

BY THIS NOTICE WE PROPOSE to amend Rule 106 of the Commissions Universal Service Fund Rules (IDAPA 31.46.01.000 et seq.).
The Commission’s proposed change to Rule 106 of the Universal Service Fund Rules clarifies that rates for one-party single-line residence and business service for Universal Service Fund (USF) recipients do not have to be revised downward by the Commission where they are higher than one-hundred twenty-five percent (125%) of the weighted statewide average. Idaho Code § 62-610 clearly authorizes the rates for one-party single-line residence and business service for USF recipients to be higher than one-hundred twenty-five percent (125%) of the weighted statewide average. The present rule seems to be inconsistent and seems to imply that the Commission must revise rates downward to equal the new statewide average in order for the participating companies to continue to receive USF funding.
Two appendices are attached to this Notice of Proposed Rulemaking. Appendix A is a Notice of Proposed Rulemaking suitable for transmission to the administrative rules coordinator. Appendix B is the proposed rule in legislative format showing the proposed amendments to the rules. As explained in Appendix A, the comment deadline for this Notice of Proposed Rulemaking is OCTOBER 27, 1999.

NOTICE OF PROPOSED RULEMAKING
The Idaho Public Utilities Commission hereby gives notice of its proposal to amend Rule 106 of the Commissions Universal Service Fund Rules (IDAPA 31.46.01.000 et seq.). The proposed amendment is contained in Appendix B.

PROPOSED by the Idaho Public Utilities Commission at Boise, Idaho this day of August 1999.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

N:31-4601-9901_pucnotice_cc

IDAPA 31 - IDAHO PUBLIC UTILITIES COMMISSION

31.46.01 - UNIVERSAL SERVICE FUND RULES

DOCKET NO. 31-4601-9901

NOTICE OF PROPOSED RULES

AUTHORITY: In compliance with Section 67-5220(1), Idaho Code, notice is hereby given of the Idaho Public Utilities Commissions proposed rulemaking.

PUBLIC HEARING SCHEDULE: A public hearing concerning this rulemaking will be scheduled only if requested in writing by twenty-five (25) persons, a political subdivision, or an agency, no later than October 20, 1999. The hearing site will be accessible to persons with disabilities. Request for accommodations must be made no later than five (5) days prior to the hearing, to the Commissions address set out below.

DESCRIPTIVE SUMMARY: The following is a non-technical explanation of the substance and purpose of the proposed rules:
The present rule seems to be inconsistent with Idaho Code § 62-610 by implying that the Commission must revise rates for one-party single-line residence and business service for Universal Service Fund recipients downward to equal the new statewide average in order for the participating companies to continue to receive funding.

NEGOTIATED RULEMAKING: Pursuant to IDAPA 04.11.01.0811, negotiated rulemaking was not conducted.

ASSISTANCE ON TECHNICAL QUESTIONS: For assistance on technical questions concerning the proposed rules, contact Cheri C. Copsey, Deputy Attorney General at [phone].

DEADLINE FOR WRITTEN COMMENTS: Anyone may submit written comments regarding these proposed rules. All written comments and data concerning the proposed rules must be delivered to the Commission Secretary at the address identified above or must be postmarked on or before October 27, 1999. Persons desiring to comment are encouraged to submit written comments at their earliest convenience rather than wait until the comment deadline.

DATED this 18th day of August 1999.

Myrna J. Walters
Commission Secretary
Idaho Public Utilities Commission Street Address for Express Mail:
PO Box 83720
Boise, ID 83720-0074 472 West Washington Street
Telephone: [phone] Boise, ID 83702-5983
FAX: [phone]

IDAPA 31TITLE 46Chapter 01
31.46.01 - UNIVERSAL SERVICE FUND RULES

106. APPLICATIONS FOR FUNDS--ORDERS FOR FUNDING (Rule 106).

01. Eligibility. Pursuant to 62-610, Idaho Code, a telephone corporation that provides local exchange service and access service for MTS/WATS providers may apply for disbursement from the USF if: (7-1-93)

a. Its average residence and business rates for local exchange service for one-party, single-line services exceed one hundred twenty-five percent (125%) of the weighted statewide average rates for one-party, single-line services for residence and business lines, respectively; and (7-1-93)

b. Its average rates per minute for MTS/WATS access services exceed one hundred percent (100%) of the weighted statewide average rate for the same or similar MTS/WATS access services. (7-1-93)

02. Continuation Of Eligibility. In order to continue receiving USF funding after the first year of eligibility, eEach telephone company’s must revise its rates to meet the thresholds for funding eligibility (threshold rate) based on the newly calculated statewide average rates as calculated annually by the Administrator pursuant to Rule 302. the average rate for one-party single-line residence and business service and for MTS/WATS access service shall be calculated individually and compared to the threshold rate based on the newly calculated statewide average as calculated annually by the Administrator pursuant to Rule 302and shall be revised to equal the threshold rate if:. In order to continue receiving USF funding after the first year of eligibility, the rate shall be revised to equal or exceed the threshold rate, if a company’s average for one-party single-line residence or business service or its rate for MTS/WATS access service is below the threshold rate and if: (4-26-95)( )

a. The difference in the company's current average rate and the statewide average threshold rate is greater than three percent (3%), and (4-26-95)

b. The difference in the annual revenue associated with the company's current rate and the revenue associated with the statewide average threshold rate is over six thousand dollars ($6,000). (4-26-95)

03. Form Of Application. An application for initial USF funding or changes in USF funding may be made in a general rate case or as otherwise allowed by the Commission. Applications must quantify the USF funding sought and the proposed rates to be charged for one-party, single-line residence and business services and for MTS/ WATS access services, indicating how USF funding will benefit the rates for these services. Applications must comply with the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq. (4-26-95)

04. Changes To Funding On Commission's Own Motion. The Commission on its own motion may by order change a telephone company's funding from the USF: (4-26-95)

a. In connection with any proceeding affecting the telephone company's residual revenue requirement; (7-1-93)

b. In connection with a recalculation of the statewide average rates for one-party, single-line residence and business rates and MTS/WATS access services and those recalculations' effect on the threshold for eligibility for funding; (7-1-93)

c. In connection with redetermination of the percentage of the residual revenue requirement that should be met by the USF; or (7-1-93)

d. As otherwise provided by order. No order altering a telephone company's funding from the USF will be issued without notice that USF funding is at issue and appropriate opportunity to be heard in person or in writing. (7-1-93)

05. Order For Disbursement. If the Commission finds that an applicant is eligible for USF disbursements, it may issue an order directing the USF to meet between seventy-five percent (75%) and one hundred percent (100%) of the telephone corporation's residual revenue requirement as defined in 62-610(4), Idaho Code. See Rule 005.10. Disbursements from the USF shall be made monthly in one twelfth (1/12) of the annual disbursements ordered by the Commission. (4-26-95)

NOTICE OF PROPOSED RULEMAKING -1-

Office of the Secretary
Service Date
August 27, 1999