20040412_802.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:DOUG COOLEY
DATE:APRIL 7, 2004
RE:2003 ANNUAL REPORT AND RECOMMENDATIONS FOR THE IDAHO
TELEPHONE SERVICE ASSISTANCE PROGRAM
On March 3 , 2004, the Idaho Telephone Service Assistance Program (IT SAP)
Administrator, Alyson Anderson, filed the ITSAP Annual Report for the fiscal year ending
December 31 2003. Ms. Anderson reported gross revenues from surcharges of$1 695 732 of
which $951,449 (56%) was assessed on local exchange services and $744 283 (44%) was
assessed on wireless/cellular services. Disbursements included credits to eligible subscribers of
199 298 and phone company administration costs of$104 422. At year s end, there were
approximately 29 000 recipients oflTSAP support. The Administrator s fees were $6 977 for
the year. The Fund's cash balance at the end of the year was $231 714.
The average number of residential local access lines reported to the Administrator for the
year decreased slightly to approximately 484 000 and the average number of business lines
reported was nearly unchanged from last year at approximately 200 000. The average number of
wireless access lines reported to the Administrator increased nearly 13% from last year to
approximately 552 000. The average total number oflines increased overall by about 43 000
(3.5%) to approximately 1 236 000.
The amount of credits customers received increased only 3% from last year to
199 298, an increase of $40 259 from last year. Administrative costs reported by the
telephone companies increased 5% to $104 422 for the year.
DECISION MEMORANDUM APRIL 7, 2004
The current surcharge of $0.12 per line per month was established in Order No. 29214
and became effective May 1 , 2003. Ms. Anderson reports that both wireless access lines and
credit recipients continued to increase during 2003 but at a rate significantly less than in previous
years. If this more moderate trend continues, Ms. Anderson believes the current surcharge rate
will be adequate to reimburse companies as well as provide a reasonable reserve balance in the
fund. She recommends maintaining the current surcharge rate.
STAFF RECOMMENDATION
Due to the various reporting cycles of the contributing carriers and the difficulty
predicting disbursements, Staff recognizes the importance of having some reserve in the ITSAP
fund. Staff agrees with Ms. Anderson s assessment that a change to the ITSAP surcharge rate is
not warranted at this time and recommends the rate remain at $0.12 per line per month.
COMMISSION DECISION
Does the Commission wish to continue the Idaho Telephone Service Assistance
Program surcharge rate of$0.12 per line per month?
~~~
g Cooley
DC:udmemos/2003 ITSAP Annual Report
DECISION MEMORANDUM APRIL 7, 2004