990806_cc.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
STEPHANIE MILLER
DON HOWELL
TONYA CLARK
LYNN ANDERSON
JOE CUSICK
BIRDELLE BROWN
BEVERLY BARKER
RON LAW
WORKING FILE

FROM: CHERI C. COPSEY

DATE: August 6, 1999

RE: PROPOSED REVISIONS TO RULE 106, IDAPA 31.46.01.106

Attached is Staff’s proposed revision to Rule 106 of the Universal Service Fund Rules. Idaho Code § 62-610 clearly authorizes the rates for one-party single-line residence and business service for USF recipients to be higher than 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 funding.

Commission Decision:
Does the Commission approve these revisions?

___________________________
Cheri C. Copsey

Staff: Birdelle Brown

M:46-01-106-prop-decmem.doc

Idaho Code § 62-610(4):
(4) Distributions from the fund shall be available to the individual eligible telecommunications carrier in Idaho providing basic local exchange service to meet residual revenue requirements remaining after deducting the revenue generated by all intrastate telecommunication services, from the eligible telecommunications carrier's total intrastate telecommunication service revenue requirement as determined by the commission, including local exchange priced at one hundred twentyfive percent (125%) or more of the weighted statewide average and MTS/WATS access services priced at one hundred percent (100%) or more of the statewide average and contributions from the federal universal service fund. The commission shall provide, by order, for not less than seventyfive percent (75%) nor more than one hundred percent (100%) of the residual revenue requirement of the individual eligible telecommunications carrier to be funded by the universal service fund. The commission shall retain its authority to approve rate design consistent with this subsection, but notwithstanding such authority, the commission shall supply full funding for any commission determined revenue requirement. Distributions from the fund shall be made monthly.