20100823min.doc

IDAHO PUBLIC UTILITIES COMMISSION

MINUTES OF DECISION MEETING

AUGUST 23, 2010 – 1:30 P.M.

In attendance were Commissioners Jim Kempton and Mack Redford. Commissioner Marsha Smith was absent and excused.

The first order of business was approval of MINUTES FROM PREVIOUS MEETING on August 16, 2010. A vote was taken to approve the minutes as written.

The second order of business was approval of the CONSENT AGENDA:
2. Carolee Hall's August 19, 2010 Decision Memorandum re: Application of CenturyTel/CenturyLink for Approval of an Interconnection Agreement between CenturyTel/CenturyLink and Allied Wireless Communications Corporation, Case Nos. CEN-T-10-02/CGS-T-10-02.3. Carolee Hall's August 19, 2010 Decision Memorandum re: Cancellation of Certificate No. 399 for Comtel Telecom Assets LP, dba Excel Telecommunications, Vartec Telecom, Clear Choice Communications and Vartec Solutions, Case No. CTA-T-06-01.4. Weldon Stutzman's August 17, 2010 Decision Memorandum re: Qwest Corporation's Amended Petition, Case No. QWE-T-08-04.5. Weldon Stutzman's August 19, 2010 Decision Memorandum re: WWC Holding Company, Inc.'s Notice of Relinquishment of ETC Designation, Case No. WST-T-05-01.
There was no discussion and the Commission voted unanimously to accept Staff’s recommendations for Consent Agenda items 2 - 5.
The next order of business was MATTERS IN PROGRESS:
6. Grace Seaman's August 20, 2010 Decision Memorandum re: 2010 Idaho Universal Service Fund Annual Report and Recommendations, Case No. GNR-T-10-04.
Ms. Seaman introduced Alyson Anderson, the Administrator of the Idaho Universal Service Fund (USF). She then reviewed her Decision Memo.
Commissioner Kempton asked about the switched access rate and Ms. Anderson replied that the switched access rate is what the LECs charge the other companies.
The Commission then voted unanimously to approve the USF 2010-2011 budget.
Commissioner Kempton asked for discussion regarding Option 3 because Staff’s recommendations differed, in part, from the Administrator’s recommendations. Ms. Seaman stated that Staff agrees with Ms. Anderson that the rates should increase, otherwise there won’t be enough money in the fund. She stated that Ms. Anderson was required to recommend an increase to the switched access rate because of Rule 106. Ms. Seaman explained that the problem with Rule 106 as it relates to switched access rates, however, is that it is difficult for a company to know how much it needs to increase the rates because long distance call volume is very volatile and unpredictable; therefore, Staff recommended increasing the surcharge rates and doing nothing with the access rates.
Commissioner Kempton and Commissioner Redford stated that they agreed with Staff’s recommendations not to approve the Administrator’s recommended Option 3 and not to approve a switched access rate increase for ATC Communications, Inland Telephone Company and Midvale Telephone Company. They then voted unanimously to approve Staff’s recommendation to increase the surcharge rates as outlined in Option 3, but maintain the current switched access rates.
Commissioner Kempton asked if the decrease in the revenue was due to cell phone penetration. Ms. Anderson stated that they didn’t know for sure what was causing the decrease, but that was the logical explanation. She said with ITSAP, they have seen the wireless lines increasing and the landlines decreasing. She said she thought the trend would continue, although she wasn’t sure we would continue to see big drops like this year.
Commissioner Redford commented that the FCC or some other agency is considering expanding universal service to include more carriers. Ms. Seaman replied that some other states assess the USF surcharge on the wireless carriers, but Idaho does not, and it would take legislative action to do so.
Commissioner Kempton asked if the Idaho Legislature has considered it, and Ms. Seaman responded that that she did not think the Idaho Legislature has addressed the issue.
Commissioner Kempton thanked Ms. Anderson for her presence at the meeting and her work as Administrator of the Universal Service Fund.
FULLY SUBMITTED MATTERS:
7. Deliberation re: LXI-CLEC, LLC Application for a Certificate of Public Convenience and Necessity, Case No. LXI-T-10-01. [No Memo. Kristine Sasser, Attorney.]
Commissioner Kempton stated that item 7 under Fully Submitted Matters would be deliberated privately following the meeting.
There was no further business before the Commission and Commissioner Kempton adjourned the meeting.

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ASSISTANT COMMISSION SECRETARY DATE OF APPROVAL

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