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HomeMy WebLinkAbout20040412_802.pdfDECISION 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