20260317Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: ALLISON MOORE, COMMISSION STAFF
ERIKA K. MELANSON,DEPUTY ATTORNEY GENERAL
DATE: MARCH 17, 2026
RE: GENERIC TELEPHONE-ITSAP 2025 ANNUAL REPORT; CASE NO.
GNR-T-26-03.
On February 17, 2026, the Administrator ("Administrator") of the Idaho
Telecommunications Service Assistance Program ("ITSAP") filed the 2025 Annual Report
("Report") and 2026 fund recommendations with the Idaho Public Utilities Commission
("Commission"). The Administrator's report and recommendation are submitted to the
Commission annually.
BACKGROUND
ITSAP provides eligible recipients with a reduction in the cost of a residential basic local
exchange telephone service. The funding of the program is through a surcharge on all end-user
business, residential, and wireless service lines not receiving an ITSAP credit. The Commission
determines the statewide monthly surcharge, and the Idaho Department of Health and Welfare
("IDHW") administers the program and grants limited federal "lifeline" contributions to low-
income customers in Idaho. Idaho Code § 56-901(1). Idaho telephone companies assist in the
form of a monthly discount of$2.50 to eligible subscribers. Idaho Code § 56-902(1). Report at
2. To be eligible for ITSAP assistance, the applicant must be the head of a household and meet
the eligibility criteria which are based solely on income or factors established by IDHW. Idaho
Code § 56-903(1). To receive reimbursement for providing low-income benefits (ITSAP and
federal lifeline assistance), a company must be designated as an Eligible Telecommunications
Carrier by a state commission. 47 C.F.R. § 54.201(a)(1).
DECISION MEMORANDUM - 1 - MARCH 17, 2026

In 2012, IDHW introduced legislation amending Idaho Code § 56-902. The legislation
reduced the amount of the monthly ITSAP assistance credit from $3.50 to $2.50. The ITSAP
surcharge rate of$0.01 per access line was suspended in 2017 by Commission Order No. 33732
in Case No. GNR-T-17-03 due to having an adequate balance to fund the program. ITSAP
remained suspended through December 31, 2023. On May 1, 2024, the Commission reinstated
the surcharge rate of $0.05 per access line through Commission Order No. 36180 in Case No.
GNR-T-24-03. In May of 2025, the rate was reduced to $0.03 per access line and the monthly
credit to eligible customers remained at$2.50. Order No. 36589.
STAFF ANALYSIS
In 2025, the annual total number of access lines, which included residential, business and
wireless, reported by telecommunication companies was 24,152,646. Report at 4. ITSAP had an
annual total of 60,110 eligible participants who received assistance credits totaling $150,270. Id.
at 1. There was a decrease of approximately 33% in participation in the ITSAP in 2025. Id. at 2.
The decrease could be due to one company who historically received about 70% of the ITSAP
reimbursement credits no longer providing services in Idaho. Id. at 3. However, there have been
other companies that have started providing services to an increased number of eligible customers.
Id.
2025 Expenses
At the end of 2024, ITSAP had a cash balance of$633,525.91 but by the end of 2025 the
fund had a cash balance of$1,446,175.91. Id. at 2. During 2025,the ITSAP fund disbursed a total
of$205,485 for assistance credits, company administrative expenses, and administrator fees. Id.
at 3. The financial institution did not assess the fund for banking fees during 2025. Id. at 2.
Proposed 2025 Budget and Funding Recommendations
The Administrator anticipated the program's participation, recipient levels and
administrative expenses to be consistent with 2025 levels. The estimated budget for 2026 is
$205,485 which is the same expense and fund disbursement total as 2025. Id. at 3.
DECISION MEMORANDUM - 2 - MARCH 17, 2026

The monthly assistance credit for eligible customers continues to be $2.50, and the access
line surcharge is currently set at $0.03. Id. The Administrator indicated in the Report that if the
program participation and administrative expenses stay consistent with 2025 levels,that the ITSAP
fund could reach a balance of close to $2,000,000 by the end of 2026. Id. at 3.
The Administrator provided two options in the Report with regard to the surcharge. The
first option was to suspend the fund given the current fund balance of $1,446,175.91 and the
decline in participation. Id. If participation and administrative expenses stay consistent in future
years, the current balance could sustain the program well past 2026. The second option that was
provided was to reduce the surcharge to $0.01 per line which would provide a fund balance of
approximately $1,600,000 by the end of 2026. Id. The Administrator recommended that the
surcharge be suspended. Staff agrees with the Administrator that the fund should be suspended
until the balance is reduced.
STAFF'S RECOMMENDATION
Staff has reviewed the 2025 ITSAP Annual Report and agrees with Administrator's
recommendation to suspend the surcharge. The current fund balance should be sufficient,to meet
the 2026 expenses and maintain the ITSAP program.
COMMISSION DECISION
1. Does the Commission accept the Administrator's recommendation to suspend the
$0.03 surcharge per access line for the ITSAP program?
2. Does the Commission accept the Administrator's Annual Report and adopt the
Administrator's Budget for 2026?
3. Anything else?
Allison Moore
Commission Staff
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DECISION MEMORANDUM - 3 - MARCH 17, 2026