20250501Final_Order_No_36589.pdf

Office of the Secretary
Service Date
May 1,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF REVIEWING THE )
ADMINISTRATOR'S 2024 ANNUAL REPORT ) CASE NO. GNR-T-25-04
AND ESTABLISHING THE FUNDING )
LEVELS TO SUPPORT THE IDAHO )
TELECOMMUNICATIONS SERVICE ) ORDER NO. 36589
ASSISTANCE PROGRAM(ITSAP) )
On February 19, 2025, the Administrator of the Idaho Telecommunication Service
Assistance Program ("ITSAP"), Ms. Kathleen Toohill ("Administrator"), filed the 2024 Annual
Report to the Idaho Public Utilities Commission("Commission")detailing the activities and status
of the program during the previous year, funding requirements for the following year, and
recommended 2025 budget.
BACKGROUND
The ITSAP helps decrease the cost of basic local exchange telephone service for eligible
residents. ITSAP is funded through a uniform, Commission-ordered surcharge on all end-user
business, residential, and wireless access service lines. The Idaho Department of Health and
Welfare ("IDHW") administers the ITSAP with federal programs to "grant limited federal
`lifeline' contributions to low-income customers."Idaho Code § 56-901(1).
Idaho telephone companies provide a monthly $2.50 discount to eligible applicants.Idaho
Code § 56-902. If the Commission designates a company as an Eligible Telecommunications
Carrier, the company may be reimbursed from the ITSAP fund for the assistance provided. 47
C.F.R. § 54.201(a)(1). ITSAP beneficiaries must be the head of a household and meet IDHW's
narrowly targeted eligibility criteria. Idaho Code § 56-903.
Historically, an ITSAP surcharge is assessed on all residential, business, and wireless end
users not receiving ITSAP credit. ITSAP Report at 1. The ITSAP surcharge rate was suspended in
on May 1, 2017. Order No. 33732, Case No. GNR-T-17-03. The Commission reinstated the
surcharge rate of$0.05 per access line on May 1,2024,making surcharge revenue subject to annual
budget review. Order No. 36180, Case No. GNR-T-24-03.
THE 2024 ANNUAL REPORT
The Administrator reported 2,468,358 local access lines using the program in 2024. 2024
ITSAP Report at 4.There were 8,973,226 total wireless lines reported in use.Id. There were 14,213
ORDER NO. 36589 1

unspecified access lines reported in use. Id. There were 89,507.5 ITSAP credit recipients in 2024.
Id. at 1. Telecommunications companies received $223,770 in disbursements of ITSAP credits
paid to eligible recipients in 2024. Id. at 3. Expenditures for company administrative costs of the
program were $33,495.01 in 2024. Id. The ITSAP surcharge rate reported revenue of$522,684 in
2024. Id. at 1. The Administrator reported that ITSAP reimbursed a total of $250,010.65 to
companies in 2024.Id. at 3. The Administrator's fees and expenses were $9,152.40 in 2024.Id. at
1. The December 31, 2024, year-end fund's cash balance was $633,525.91. Id. at 2.
2025 Budget and Trends
The Administrator projected that the funding requirements for 2025 will be met. See Id. at
2-4. The Administrator stated that during 2024, the fund balance increased by $298,714.01 due to
the surcharge being reinstated on May 1, 2024, at the rate of$0.05 per line. Id. at 3. Prior to May
2024,wireless lines were reported as zero for several companies until the surcharge was reinstated.
Id. The Administrator stated that if the number of customers, recipients, and fund administration
were to remain the same for 2025, then the fund balance will continue to increase.Id.
The Administrator estimated the ITSAP disbursements would be approximately$223,770,
with projected expenses of$42,695.01. ITSAP 2024 AR Worksheet—attached to the 2024 ITSAP
Annual Report. The estimated expenses were composed of$9,200 for the Administrator's salary
and estimated bank charges; $10,000 for four years of auditor fees; and $33,495.01 for program
administration costs. Id.
For the 2025 budget, the Administrator estimated the average number of access lines
subject to the surcharge would be approximately 11,455,797 per year and the average number of
ITSAP recipients would amount to approximately 89,508 per year. Id. Based on this data, the
ITSAP Administrator projected that the funding requirement for 2025 would be approximately
$266,465.01, and the end-of-year 2025 balance was expected to be $934,450.21.Id.
The Administrator recommended that the surcharge rate be decreased from$0.05 to $0.03.
2024 ITSAP Report at 3. The Administrator stated that when evaluating the annual income versus
the outgoing expenses, a charge of $0.03 per line could be a more stabilizing rate. Id. The
Administrator estimated that this rate would bring the annual income closer to expected annual
expenses, which have ranged between $235,000-$320,000 over the last four years.Id.
ORDER NO. 36589 2

STAFF ANALYSIS AND FUNDING RECOMMENDATION
Staff reviewed the 2024 annual report, the proposed 2025 budget, and the funding
recommendation. Staff supported the Administrator's assessment that a reduction of the surcharge
rate from $0.05 to $0.03 per access line for all wireline and wireless access lines was practical.
Staff Memo at 4.
The average annual expenses over the last four years have ranged between $235,000-
$320,000. Id. Staff believed the fund balance would be sufficient to meet the 2025 expenses as
well as provide for any unforeseen changes to the number of ITSAP recipients. Id. Staff
recommended that the Commission approve the Administrator's 2025 budget and approve the
recommendation to reduce the surcharge rates for the calendar year 2025. Id.
DISCUSSION AND FINDINGS
The Commission has reviewed the Administrator's 2024 annual report, proposed 2025
budget, and Staff's comments. We End the Administrator's recommendations to be fair,just, and
reasonable. We find it appropriate to reduce the surcharge rate from $0.05 to $0.03 per access line
for all wireline and wireless access lines for budget year 2025, and that doing so will not deplete
the fund of a sufficient balance even if unanticipated program changes occur. Accordingly, we
accept the Administrator's 2024 Annual Report and we approve the Administrator's 2025 budget.
We Farther find that all reporting companies should continue to file regular reports with the
Administrator. We direct the Administrator to notify all reporting companies that they must
continue to report access line counts and that surcharge rates will decrease from$0.05 to $0.03 for
the budget year 2025, subject to further Commission order.
ORDER
IT IS HEREBY ORDERED that the Commission accepts the Administrator's 2024 Annual
Report and adopts the Administrator's budget for 2025.
IT IS FURTHER ORDERED that the monthly ITSAP surcharge rate shall be $0.03 per
access line, effective May 1, 2025, until the next annual budget review.
IT IS FURTHER ORDERED that the Administrator shall notify all reporting companies
that their reporting requirements, including reporting access lines, are ongoing and that the
surcharge rate has decreased from $0.05 to $0.03 for budget year 2025, subject to further
Commission order.
ORDER NO. 36589 3

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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I" day of
May 2025.
Gw�
EDWARD LODGE, PV-SIDENT
R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
NVILdha os- a
Commission Secreta
;!;
IALega1\TELEC0M\GNRT2504_Final_em.docx
ORDER NO. 36589 4