20240904Addendum.pdf

ADDENDUM
ADMINISTRATOR'S REPORT
IDAHO UNIVERSAL SERVICE FUND
YEAR ENDED --JUNE 30, 2024
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 (Addendum 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
approximately $62,853 (Addendum 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 $408,8 I 9 at June 30, 2025.
OPTION 3: ADJUST SURCHARGE RATES & ADJUST FUNDING TO MEET
100% 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 using 100% of all the statewide averages to each company
currently drawing from the IUSF.
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RECEIVED
WEDNESDAY, SEPTEMBER 4, 2024
IDAHO PUBLIC
UTILITIES COMMISSION
♦ ATC Communications should increase local residential and business, as
well as toll switched access rates. ATC Communications' annual IUSF
draw would be reduced by $73,942.
♦ Cambridge Telephone Company should increase local residential and
business rates. Cambridge Telephone Company annual IUSF draw
would be reduced by $82,744.
♦ 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 increased by $25,318.
♦ Direct Communications Rockland should increase local residential
rates. Direct Communications Rockland's annual IUSF draw would be
reduced by $10,397.
♦ Fremont Telecom should increase toll switched access rates. Fremont
Telecom's annual IUSF draw would be decreased by $105,556, and thus
eliminate the Fremont Telecom's annual IUSF draw of $57,258.
♦ Inland Telephone Company does not need to adjust rates at this time.
Inland Telephone Company annual IUSF draw of $27,604 should be
maintained.
♦ Midvale Telephone Company should increase local residential and
business rates. Midvale Telephone Company annual IUSF draw would
be reduced by $24,978.
♦ 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 $41,632.
The 2024-2025 IUSF authorized disbursements, including the adjustments
to company funding per rule 106 applied to 100% of all statewide
averages, will be $1,384,680. If surcharge rates are increased to $.44 per
residential line, $. 71 per business line and $.008 per intrastate MTS/WATS
billed minute, and the fund will decrease by approximately $2,652
(Addendum 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 $343,313 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 $.65 per residential line, $1.05 per
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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 (Addendum 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 100% STATEWIDE AVERAGES
In order to more accurately calculate future fund balances, the inventories
have been adjusted according to the most recent five-year trend. The
2024-2025 IUSF authorized disbursements, including the adjustments to
company funding per rule 106 using 100% of all statewide averages (see
Option 3), will be $1,384,680. If the surcharge rates are increased to $.51
per residential line, $.82 per business line, and $.008 per intrastate
MTS/WATS billed minute, and IUSF disbursements are adjusted to meet
statewide averages per rule 106 using 100% of all statewide averages, the
fund will increase by approximately $23,978 (Addendum page 46).
MTS/WATS services would contribute approximately 53% of the
surcharge revenue and local exchange services would contribute 4 7% of
the surcharge revenue. The fund would have a balance of approximately
$369,943 at June 30, 2025.
OPTION 6: ADJUST INVENTORIES, ADJUST SURCHARGE RA TES &
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 $.57 per residential line, $.91 per business
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 (Addendum page 46). MTS/WATS services would
contribute approximately 53% of the surcharge revenue and local
exchange services would contribute 4 7% of the surcharge revenue. The
fund would have a balance of approximately $318,291 at June 30, 2025.
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