HomeMy WebLinkAbout20240814Annual Report_Redacted.pdf RECEIVED
ADMINISTRATOR'S REPORT Wednesday, August 14, 2024
IDAHO PUBLIC
IDAHO UNIVERSAL SERVICE FUND UTILITIES COMMISSION
YEAR ENDED -- JUNE 30, 2024
SURCHARGE REVENUES
Surcharge revenues collected during the year ended June 30, 2024 totaled
$1,174,9467 of which $559,847, or 48% was assessed on local exchange
services and $615,098,or 52%.was assessed on MTS/WATS services.
Current monthly surcharge rates are $.25 per residential line, $.44 per
business line, and $.007 per MTS/WATS billed minute.
DISBURSEMENTS
COMPANIES RECEIVING DISBURSEMENTS
Authorized disbursements to Local Exchange Companies during the year
ended June 30, 2024 totaled $1,698,610 (page 11). The following table
shows the Local Exchange companies authorized by the Idaho Public
Utilities Commission to receive disbursements from the Idaho Universal
Service Fund.
Original IPUC Order Current
Authorizing Authorized Annual
Company Name Disbursement Disbursement
ATC Communications 22718 & 22128 $ 4641502
Cambridge Telephone 22131 $ 138,162
Fremont Telecom 28085 & 28166 $ 577258
Inland Telephone Co 23838 $ 277604
Midvale Telephone 22377 $ 350,785
Direct Communication 22132 $ 2027401
Rockland
Rural Telephone Co 22414 & 26598 $ 3027221
Silver Star Telecom 22237 & 22370 $ 155 677
Total $1 698 610
i
ADMINISTRATIVE FEES AND EXPENSES
Administrative fees and expenses for the year ended June 30, 2024 were
$19,438. Administrative expenses include bank and broker charges of
$361_ Administrative expenses payable at June 30, 2024 are $1,579.
INVESTMENTS AND FUNDS
CASH
At June 30, 2024, the Idaho Universal Service Fund had a cash balance of
$889,068. The following is a table showing the beginning, ending, and
quarterly fund cash balances for the year ended June 30, 2024_
Beginning Ending
Balance Balance Balance Balance Balance
6/30/23 9/30/23 12/31/23 3/31/24 6/30/24
$8897068 $7057248 $6037872 $4807275 $345,966
INTEREST
No interest was earned on funds held in bank accounts for the year ended
June 30, 2024.
INVESTMENTS
The Idaho Universal Service Fund had no investments during the year
ended June 30, 2024.
INVENTORIES
Total residential and business lines at May 1, 2024 were 57,436 and
47,478 respectively (pages 38 and 40). This represents a decrease of 12%
in residential lines and 30% in business lines from the prior year. Total
MTS/WATS billed minutes of use for the year ended December 31, 2023
were 87,944,136 (page 43), a 91% increase from the prior year.
2
STATEWIDE WEIGHTED AVERAGE RATES
A schedule summarizing the total funding eligibility for the authorized
local exchange companies is shown on page 12_
ONE-PARTY, SINGLE LINE SERVICE
The statewide weighted average rates for one-party single-line residential
and business services are shown on pages 21 and 36. The following table
shows the statewide weighted averages for one-party, single line service.
IUSF THRESHOLD
STATEWIDE 125% STATEWIDE
WEIGHTED WEIGHTED
AVERAGE RATE AVERAGE RATE
RESIDENTIAL SERVICES $29.17 $3G.46
BUSINESS SERVICES $4G.90 $58.G2
TOLL SWITCHED ACCESS
The statewide weighted average revenue per MTS/WATS access minute is
shown on page 14. The statewide weighted average toll switched access
revenue is $ .064 per minute.
FUNDING OPTIONS
OPTION 1: STATUS QUO
If current surcharge rates ($.25 per residential line, $.44 per business line,
and $.007 per intrastate MTS/WATS billed minute) are maintained and no
additional IUSF funding is authorized, the fund will decrease by
approximately $689,310 (page 44). The 2023-2024 IUSF authorized
disbursements will continue at $1,698,610_ MTS/WATS services would
contribute approximately 41% of the surcharge revenue and local
exchange services would contribute 59% of the surcharge revenue,
however the fund would become insolvent before June 30, 2025.
OPTION 2: ADJUST SURCHARGE RATES &MAINTAIN FUDNING
If surcharge rates are increased to $.57 per residential line, $.91 per
business line, and $_01 per intrastate MTS/WATS billed minute and
current funding levels are maintained,the fund will increase by
3
approximately $62,853 (page 44). MTS/WATS services would contribute
approximately 49% of the surcharge revenue and local exchange services
would contribute 51% of the surcharge revenue. The fund would have a
balance of approximately $408,819 at June 30, 2025.
OPTION 3: ADJUST SURCHARGE RATES &ADJUST FUNDING TO MEET
STATEWIDE AVERAGES
Idaho Universal Service Fund rule 106.02 indicates that to continue
receiving IUSF funding after the first year of eligibility, the company may
need to revise rates to meet or exceed the statewide threshold rates. If the
rate is below the statewide threshold rate, and the difference between the
rate is greater than 3% and $6,000, the company must revise rates equal or
exceed 100% of the statewide average for MTS/WATS access service, and
125% of the statewide average for local exchange service. The following
applies rule 106 to each company currently drawing from the IUSF.
♦ ATC Communications should increase local residential and business, as
well as toll switched access rates. ATC Communications' annual IUSF
draw would be reduced by $205,200.
♦ Cambridge Telephone Company should increase local residential and
business rates. Cambridge Telephone Company annual IUSF draw
would be reduced by $196,494, and thus eliminate Cambridge
Telephone Company's IUSF annual draw of $138,162.
♦ Columbine Telephone /Silver Star Telecom should decrease toll
switched access, and increase local residential and local business rates.
Silver Star Telecom annual IUSF draw would be reduced by $138,002.
♦ Direct Communications Rockland should increase local residential and
business rates. Direct Communications Rockland's annual IUSF draw
would be reduced by $4 7,164.
♦ Fremont Telecom should increase toll switched access rates, and local
residential and business rates. Fremont Telecom's annual IUSF draw
would be decreased by $13 5,404, and thus eliminate the Fremont
Telecom's annual IUSF draw of $5 7,2 58.
♦ Inland Telephone Company should increase local residential and
business rates. Inland Telephone Company annual IUSF draw would be
reduced by $21,475.
♦ Midvale Telephone Company should increase local residential and
business rates. Midvale Telephone Company annual IUSF draw would
be reduced by $75,997.
♦ Rural Telephone Company should increase local residential and
business rates, as well as toll switched access. Rural Telephone
Company annual IUSF draw would be reduced by $110,375.
4
The 2024--2025 IUSF authorized disbursements, including the adjustments
to company funding per rule 106, will be $904,977. If surcharge rates are
decreased to $.41 per business line and $.005 per intrastate MTS/WATS
billed minute, and increased to $.26 per residential line the fund will
decrease by approximately $81,764 (page 45). MTS/WATS services would
contribute approximately 52% of the surcharge revenue and local
exchange services would contribute 48% of the surcharge revenue. The
fund would have a balance of approximately $264,201 at June 30, 2025.
OPTION 4: ADJUST INVENTORIES, ADJUST SURCHARGE RATES &
MAINTAIN FUNDING LEVELS
In order to more accurately calculate future fund balances, the inventories
have been adjusted according to the most recent five-year trend. Thus, the
residential lines have been reduced 11%, the business lines reduced 30%
and the MTS/WATS billed minutes have been increased 3%. If the
surcharge rates are increased to $.6 5 per residential line, $1.0 5 per
business line, and $.01 per intrastate MTS/WATS billed minute and IUSF
disbursements are maintained at current levels, the fund will increase by
approximately $89,340 (page 45). MTS/WATS services would contribute
approximately 50% of the surcharge revenue and local exchange services
would contribute 50% of the surcharge revenue. The fund would have a
balance of approximately $435,305 at June 30, 2025.
OPTION 5: ADJUST INVENTORIES, ADJUST SURCHARGE RATES &ADJUST
FUNDING TO MEET STATEWIDE AVERAGES
In order to more accurately calculate future fund balances, the inventories
have been adjusted according to the most recent five-year trend. If the
surcharge rates are increased to $.30 per residential line, $.47 per business
line, and decreased to $.005 per intrastate MTS/WATS billed minute, and
IUSF disbursements are adjusted to meet statewide averages per rule 106,
the fund will decrease by approximately $67,688 (page 46). MTS/WATS
services would contribute approximately 52% of the surcharge revenue
and local exchange services would contribute 48% of the surcharge
revenue. The fund would have a balance of approximately $278,277 at
June 30, 2025.
OPTION 6: ADJUST INVENTORIES, ADJUST SURCHARGE RATES &
MAINTAIN FUNDING LEVELS
In order to more accurately calculate future fund balances, the inventories
have been adjusted according to the most recent five-year trend. Thus, the
residential lines have been reduced 11%, the business lines reduced 30%
and the MTS/WATS billed minutes have been increased 3%. If the
surcharge rates are increased to $.5 7 per residential line, $.91 per business
5
line, and $.01 per intrastate MTS/WATS billed minute and IUSF
disbursements are maintained at current levels, the fund will decrease by
approximately $27,674 (page 46). MTS/WATS services would contribute
approximately 53% of the surcharge revenue and local exchange services
would contribute 47% of the surcharge revenue. The fund would have a
balance of approximately $318,291 at June 30, 2025.
ADMINISTRATOR'S RECOMMENDATION
During the past year, there was a continued decrease in both local
residential lines of 12% and in local business lines of 30%. MTS/WATS
billed minutes increased significantly at 91%. This drastic increase
emphasizes the difficulty estimating future inventory levels. As in the past,
I believe that the local access lines and toll minutes will continue to decline
due to the continued migration toward broadband,wireless, cellular and
VOIP services, as well as the shift from stand-alone residential service to
bundled packages. This affects the statewide average rate calculations, as
well as the application of rule 106 to the companies funded by the IUSF. In
light of FCC orders and continuing industry changes, it is becoming more
difficult to evaluate the IUSF funding as it applies to Rule 106. It is equally
challenging to estimate future inventory levels and the fund balance. The
Commission recognized this in opening Case No. GNR-T--17--05, The 2017
Review of the Idaho Universal Service Fund. Until changes to the IUSF
rules are made, I am obligated to apply the current Rules for Idaho
Universal Service Fund, IDAPA 31.46.01.
Due to the lag in reporting and remitting any surcharge change, it is
optimal that the fund maintains at least a three-month disbursement
balance. That balance is $4317978 for IUSF authorized disbursements at
current levels and $233,569 if IUSF authorized disbursements are adjusted
per rule 106.
I recommend that the Commission adopt Option 3 or Option 5 adjusting
the surcharge rates and, also, applying rule 106.02 to adjust funding to the
companies. Both options also adjust the inventories for the five-year
average and will provide an approximate three-month reserve balance
going forward as the telecom industry continues to evolve. The fund
balance at June 30, 2025 under Option 5 would approximate $278,277.
The fund balance at June 30, 2025 under Option 3 would approximate
$2641201.
If the Commission is inclined to maintain company funding levels until
changes are made to the underlying rules and statutes, I recommend the
adoption of Option 6. This option increases the surcharge rates to $.5 7 per
residential line, $.91 per business line, and $.01 per intrastate MTS/WATS
6
billed minute. Under Option 6, the fund balance would be adequate to
meet the fund obligations, though with less of a reserve for industry
changes going forward. The fund balance will approximate $318,291 at
June 30, 2025.
IDAHO UNIVERSAL SERVICE FUND
BALANCE SHEET
J U N E 30, 2024
ASSETS LIABILITIES & EQUITY
CASH IN BANK $345,966 ACCOUNTS PAYABLE
JUNE ADMINISTRATIVE EXPENSE $1,578
INVESTMENT IN US TREASURIES
UNAMORTIZED PREMIUM/(DISCOUNT)
ACCRUED INTEREST PURCHASED
INTEREST RECEIVABLE FUND BALANCE AT YEAR END 344,387
TOTAL ASSETS $345,966 TOTAL LIABILITIES & EQUITY $345,966
Page 8
IDAHO UNIVERSAL SERVICE FUND
STATEMENT OF FUND BALANCE
JUNE 30, 2024
REVENUES
SURCHARGE REVENUE $1 ,174,946
MISCELLANEOUS REVENUE 0
INTEREST REVENUE 0
TOTAL REVENUE 1 ,174,946
EXPENSES
DISBURSEMENTS TO COMPANIES $1,698,610
BANK/BROKERAGE CHARGES 361
ADMINISTRATIVE EXPENSE** 19,054
TOTAL EXPENSES 1 ,718,025
CHANGE IN FUND BALANCE (543,079)
FUND BALANCE JULY 1 , 2023 887,467
FUND BALANCE JUNE 30, 2024 344,387
**ADMINISTRATIVE EXPENSEADJUSTED FOR JUNE 2023 PAYABLE
Page 9
IDAHO UNIVERSAL SERVICE FUND
BANK ACCOUNT ACTIVITY
FOR YEAR ENDED JUNE 30, 2024
BEGINNING BALANCE JULY 1, 2023 $889,068
RECEIPTS
LOCAL SURCHARGE $559,847
TOLL SURCHARGE 615,098
TOTAL SURCHARGE COLLECTED $1,174,946
MISCELLANEOUS REVENUE 0
INTEREST 0
TOTAL RECEIPTS $1 ,174,946
DISBURSEMENTS
BANK/BROKERAGE CHARGES $361
COMPANY DISBURSEMENTS 1,698,610
ADMINISTRATIVE EXPENSES 19,077
TOTAL DISBURSEMENTS $1 ,718,048
ENDING BALANCE JUNE 30, 2024 $345,966
Page 10
2023-2024 7/14/2024
AUTHORIZED DISBURSEMENTS
ALBION CAMBRIDGE FREMONT INLAND MIDVALE DIRECT COMM RURAL SILVER STAR
TELEPHONE TELEPHONE TELCOM TELEPHONE TELEPHONE ROCKLAND TELEPHONE TELECOM TOTAL
July-23 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
August-23 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
September-23 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
October-23 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2.300.34 $ 29,232.08 $ 167866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
November-23 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2.300.34 $ 29,232.08 $ 16,866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
December-23 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2.300.34 $ 29,232.08 $ 16,866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
January-24 $ 38:708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
February-24 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25.185.08 $ 12.973.10 $ 141,550.86
March-24 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25.185.08 $ 12.973.10 $ 141,550.86
April-24 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2.300.34 $ 29,232.08 $ 16,866.75 $ 25.185.08 $ 12,973.10 $ 141,550.86
May-24 $ 38.708.50 $ 11,513.51 $ 4,771.50 $ 2,300.34 $ 29,232.08 $ 16.866.75 $ 25,185.08 $ 12,973.10 $ 141,550.86
June-24 $ 38.708.50 $ 11,513.51 S 4,771.50 $ 2,300.34 $ 29,232.08 $ 16,866.75 $ 25.185.08 S 12,973.10 $ 141,550.86
TOTAL $ 464.502.00 $ 138,162.12 S 57,258.00 $ 27.604.08 $ 350,784.96 $ 202,401.00 $ 302,220.96 S 155,677.20 $ 1,698,610.32
Page 11
CONFIDENTIAL 7/14/2024
IDAHO UNIVERSAL SERVICE FUND 2024-25 ADDITIONAL FUNDING REQUIREMENTS
ACCESS % RESIDENTIAL % BUSINESS & TOTAL ADD'L NEW ANNUAL
FUNDING DIFF FUNDING DIFF FUNDING DIFF FUNDING FUNDING
^Rule 106.02 provides, to continue receiving IUSF funding, the difference between the rate & statewise threshold cannot exceed 3% and $6,000.
" COMPANY DID NOT FILE 2024 ANNUAL REPORT
TOTAL REPRESENTS COMPANY'S IUSF ANNUAL DISBUSREMENT
Page 12
CONFIDENTIAL
7 14i24
2023-24 STATEWIDE ANNUAL ANNUAL REVENUE EQUIVALENT EQUIVALENT
TOLL SWITCHED ACCESS ACCESS ACCESS PER ACCESS ACCESS
MINUTES REVENUE MINUTE MINUTES REVENUE
44.595.554 S2.801.303 0.062816 1.698.251 $147.214
—COMPANY DID NOT FILE 2024
ANNUALREPORT
Page 13
CONFIDENTIAL
7i14/24 RATIO OF TOTAL THRESHOLD &
2023-24 STATEWIDE TOTAL TOTAL AVERAGE TOTAL STATE REVENUE COMPANY
TOLL SWITCHED ACCESS ACCCESS ACCESS REVENUE PER ACCESS AT 100% OF FUNDING % RATE
MINUTES REVENUE MINUTE MINUTES STATE AVE REQUIRED DIFFERENCE
TOTAL
46.293.805 52.948.517 0.063691 1.000000 $2,948.517 $0
`"COMPANY DID NOT FILE 2024
ANNUALREPORT
STATEWIDE AVERAGE
RATE FOR MTSIWATS ACCESS 0.063691
Page 14
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 15
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 16
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 17
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 18
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 19
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 20
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
RESIDENTIAL
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
TOTAL 56,890 $19,912,919.35 $24,720.512.03 ($4,807,592.68
STATEWIDE WEIGHTED
AVERAGE RATE $29.17
125% STATEWIDE WEIGHTED
AVERAGE RATE $36.46
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 21
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 22
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 23
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 24
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 25
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 26
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 27
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 28
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
—COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 29
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 30
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 31
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 32
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 33
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 34
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
"COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 35
CONFIDENTIAL 7/14/2024
2023-24 STATEWIDE AVERAGE LOCAL ACCESS RATE
BUSINESS
REVENUE AT FUNDING PERCENTAGE
May 1, 2024 ANNUAL 125% TOTAL PER RATE
LINES RATE REVENUE AVERAGE COMPANY DIFFERENCE
TOTAL 33,927 $19,093.912.80 $23,794.227.78 ($4.700.314.98
STATEWIDE WEIGHTED
AVERAGE RATE $46.90
125% STATEWIDE WEIGHTED
AVERAGE RATE $58.62
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 36
CONFIDENTIAL 7/14/2024
2024 ACCESS LINES
CUSTOMER CENTRON,
RESIDENTIAL SINGLE PARTY MULTI PARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL
SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER RESIDENTIAL
-COMPANY DID NOT FILE 2024 ANNUAL REPORT 37
CONFIDENTIAL 7/14/2024
2024 ACCESS LINES
CUSTOMER CENTRON,
RESIDENTIAL SINGLE PARTY MULTI PARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL
SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER RESIDENTIAL
TOTAL 57.427 9 0 0 0 0 0 57.436
-COMPANY DID NOT FILE 2024 ANNUAL REPORT 38
CONFIDENTIAL 7/14/2024
2024 ACCESS LINES
CUSTOMER CENTROM,
BUSINESS SINGLE PARTY MULTI PARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL
SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER BUSINESS
-COMPANY DID NOT FILE 2024 ANNUAL REPORT 39
CONFIDENTIAL 7/14/2024
2024 ACCESS LINES
CUSTOMER CENTRON,
BUSINESS SINGLE PARTY MULTI PARTY SEMI-PUBLIC OWNED PAY CENTREX & PBX TOTAL
SERVICE SERVICE PAY SERVICE TELEPHONES C.O. SYSTEMS SYSTEMS OTHER BUSINESS
TOTAL 41.269 3.822 39 35 1.064 1,249 0 47,478
-COMPANY DID NOT FILE 2024 ANNUAL REPORT 40
7/14/2024 2023 MTS/WATS BILLED MINUTES CONFIDENTIAL
TOTAL % OF TOTAL REVENUE
MTS WATS MTS/WATS TOTAL MTS WATS MTS/WATS PER
MINUTES MINUTES OTHER MINUTES STATE REVENUES REVENUES OTHER REVENUES MINUTE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 41
7/14/2024 2023 MTS/WATS BILLED MINUTES CONFIDENTIAL
TOTAL % OF TOTAL REVENUE
MTS WATS MTS/WATS TOTAL MTS WATS MTS/WATS PER
MINUTES MINUTES OTHER MINUTES STATE REVENUES REVENUES OTHER REVENUES MINUTE
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 42
7/14/2024 2023 MTS/WATS BILLED MINUTES CONFIDENTIAL
TOTAL % OF TOTAL REVENUE
MTS WATS MTS/WATS TOTAL MTS WATS MTS/WATS PER
MINUTES MINUTES OTHER MINUTES STATE REVENUES REVENUES OTHER REVENUES MINUTE
TOTAL REPORTED
87,944,136 $ 6,581,187.06
*COMPANY DID NOT SUBMIT 2024 ANNUAL REPORT Page 43
IDAHO UNIVERSAL SERVICE FUND OPTIONS 7/14/2024
OPTION 1 - STATUS QUO
FUND
RATE CHANGE
BANK BALANCE 7/1/24 $ 345,966
ANNUAL INVENTORY
RESIDENTIAL LINES 57.436 0.25 $172,308 n% OF TOTAL SURCHARGE REVENUE
BUSINESS LINES 47.478 0.44 $250,684 24% OF TOTAL SURCHARGE REVENUE
TOLL MINUTES 8779447136 0.007 $615,609 59% OF TOTAL SURCHARGE REVENUE
TOTAL IUSF SURCHARGE REVENUE $1,038,601
ESTIMATED INTEREST INCOME 0
ESTIMATED IUSF DISBURSEMENTS (1,698,610)
ESTIMATED ADMINISTRATIVE EXPENSES (29,300)
TOTAL ESTIMATED EXPENSES (1,727,910)
PROJECTED INCOME/(DRAWDOWN) (689,310)
PROJECTED BALANCE 6/30/25 ($343,344)
OPTION 2 - ADJUST SURCHARGE RATES &
MAINTAIN FUNDING
FUND
RATE CHANGE
BANK BALANCE 7/1/24 $ 345,966
ANNUAL INVENTORY
RESIDENTIAL LINES 57,436 0.57 $392,862 22% OF TOTAL SURCHARGE REVENUE
BUSINESS LINES 47,478 0.91 518,460 29% OF TOTAL SURCHARGE REVENUE
TOLL MINUTES 87,944,136 0.010 879,441 49% OF TOTAL SURCHARGE REVENUE
TOTAL IUSF SURCHARGE REVENUE 1,7907763
ESTIMATED INTEREST INCOME 0
ESTIMATED IUSF DISBURSEMENTS (1,698,610)
ESTIMATED ADMINISTRATIVE EXPENSES (29,300)
TOTAL ESTIMATED EXPENSES (1,727,910)
PROJECTED INCOME/(DRAWDOWN) 62.853
PROJECTED BALANCE 6/30/25 $408.819
Page 44
IDAHO UNIVERSAL SERVICE FUND OPTIONS 7/14/2024
OPTION 3 - ADJUST SURCHARGE RATES &
ADJUST FUNDING TO MEET STATEWIDE THRESHOLDS
FUND
RATE CHANGE
BANK BALANCE 7/1/24 $ 345.966
ANNUAL INVENTORY
RESIDENTIAL LINES 57.436 0.26 $179.200 21% OF TOTAL SURCHARGE REVENUE
BUSINESS LINES 47.478 0.41 233,592 27% OF TOTAL SURCHARGE REVENUE
TOLL MINUTES 87,944,136 0.005 439.721 52% OF TOTAL SURCHARGE REVENUE
TOTAL IUSF SURCHARGE REVENUE 852,513
ESTIMATED INTEREST INCOME 0
ESTIMATED IUSF DISBURSEMENTS (904,977)
ESTIMATED ADMINISTRATIVE EXPENSES 29,300)
TOTAL ESTIMATED EXPENSES (934,277)
PROJECTED INCOME/(DRAWDOWN) (81,764)
PROJECTED BALANCE 6/30/25 $264,201
OPTION 4 - ADJUST INVENTORIES FOR 5 YEAR AVERAGE,
ADJUST SURCHARGE RATES & MAINTAIN FUNDING
FUND
RATE CHANGE
BANK BALANCE 7/1/24 $ 345,966
ANNUAL INVENTORY
RESIDENTIAL LINES 50,990 0.65 $397,722 22% OF TOTAL SURCHARGE REVENUE
BUSINESS LINES 40,514 1.05 510,476 28% OF TOTAL SURCHARGE REVENUE
TOLL MINUTES 907905,158 0.010 909,052 50% OF TOTAL SURCHARGE REVENUE
TOTAL IUSF SURCHARGE REVENUE 1,817,250
ESTIMATED INTEREST INCOME 0
ESTIMATED IUSF DISBURSEMENTS (1,698,610)
ESTIMATED ADMINISTRATIVE EXPENSES (29.300)
TOTAL ESTIMATED EXPENSES (1,727,910)
PROJECTED INCOME/(DRAWDOWN) 89,340
PROJECTED BALANCE 6/30/25 $435,305
Page 45
IDAHO UNIVERSAL SERVICE FUND OPTIONS 7/14/2024
OPTION 5 - ADJUST INVENTORIES FOR 5 YEAR AVERAGE,
ADJUST SURCHARGE RATES & FUNDING TO MEET STATEWIDE
THRESHOLDS
FUND
RATE CHANGE
BANK BALANCE 7/1/24 $ 345,966
ANNUAL INVENTORY
RESIDENTIAL LINES 50,990 0.30 $183.564 21% OF TOTAL SURCHARGE REVENUE
BUSINESS LINES 40,514 0.47 228,499 26% OF TOTAL SURCHARGE REVENUE
TOLL MINUTES 907905,158 0.005 454.526 52% OF TOTAL SURCHARGE REVENUE
TOTAL IUSF SURCHARGE REVENUE 866.589
ESTIMATED INTEREST INCOME 0
ESTIMATED IUSF DISBURSEMENTS (904,977)
ESTIMATED ADMINISTRATIVE EXPENSES 29.300
TOTAL ESTIMATED EXPENSES (934.277)
PROJECTED INCOME/(DRAWDOWN) (67,688)
PROJECTED BALANCE 6/30/25 $278,277
OPTION 6 - ADJUST INVENTORIES FOR 5 YEAR AVERAGE,
ADJUST SURCHARGE RATES & MAINTAIN FUNDING
FUND
RATE CHANGE
BANK BALANCE 7/1/24 $ 345.966
ANNUAL INVENTORY
RESIDENTIAL LINES 50,990 0.57 $348,772 21% OF TOTAL SURCHARGE REVENUE
BUSINESS LINES 40,514 0.91 442,413 26% OF TOTAL SURCHARGE REVENUE
TOLL MINUTES 90,905,158 0.010 909,052 53% OF TOTAL SURCHARGE REVENUE
TOTAL IUSF SURCHARGE REVENUE 1,700,236
ESTIMATED INTEREST INCOME 0
ESTIMATED IUSF DISBURSEMENTS (1,698,610)
ESTIMATED ADMINISTRATIVE EXPENSES 297300)
TOTAL ESTIMATED EXPENSES (1,727,910)
PROJECTED INCOME/(DRAWDOWN) (27,674)
PROJECTED BALANCE 6/30/25 $318,291
Page 46