20071116Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:NEIL PRICE
DATE:NOVEMBER 16, 2007
SUBJECT:APPLICA TION OF AMERICAN FIBER SYSTEMS, INc. TO TRANSFER
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY NO. 427
FROM IDACOMM, INC. TO AMERICAN FIBER SYSTEMS, INc.; CASE
NO. AFS -07-01.
On October 11 , 2007, American Fiber Systems, Inc. filed an Application seeking the
Commission s authorization for the transfer of Certificate of Public Convenience and Necessity
No. 427 held by Idacomm, Inc. ("Idacomm ) to American Fiber Systems, Inc. ("AFS"). On
November 8 , 2007, AFS filed a Revised Application containing a revised signature page and a
revised Schedule of General Regulations for Exchange Services Applying to Local Exchange
Services and Facilities containing price lists and customer billing information.
THE APPLICATION
AFS is a Delaware corporation and lists its principal place of business as Rochester
New York. The Company is registered with the Idaho Secretary of State as a general business
corporation and lists CT Corporation System, 1111 West Jefferson, Suite 530, Boise, Idaho
83702, as its Idaho registered agent for service.
On March 15 , 2004, Idacomm submitted an Application for a Certificate of Public
Convenience and Necessity. Case No. IZ2-04-01. On May 11 2004, the Commission issued
Order No. 29494 approving Idacomm s Application. On February 23, 2007, AFS acquired
Idacomm by purchasing 100% of its capital stock from Idacomm s parent company, Idacorp Inc.
On January 1 , 2008, AFS intends to "merge its wholly owned subsidiary Idacomm into itself
with AFS to be the surviving entity." AFS states that the transfer of Idacomm s Certificate is a
necessary component of this planned merger.
DECISION MEMORANDUM
Currently, AFS operates as a fiber-based telecommunications provider.The
Company provides "fiber connectivity for data, internet access and voice services to wire line
carriers, internet service providers and large enterprise customers.It operates networks in
Kansas, Ohio , Minnesota, Missouri, Tennessee and Utah and, through its affiliate
, "
provides
facilities-based and resold local telecommunications services to enterprise and small business
customers." AFS acknowledges its obligation to comply with Commission rules regarding local
exchange services in Idaho. The Company states that it will not charge customer deposits for its
Idaho customers and therefore requests a waiver of Commission Rule 106, IDAP A 31.41.01.106
governing interest on deposits made by customers.
STAFF COMMENTS
Staff has reviewed AFS's Application, including the Company s revised price lists
and customer billing information. Staff believes that AFS is compliant with the requirements of
Procedural Order No. 26665 and IDAPA 31.01.01.111 and 112 (Rules 111 and 112). Staff
believes the Company possesses the requisite financial, managerial, and technical qualifications
necessary to effectively operate as a telecommunications provider within the State of Idaho and
recommends the approval of AFS's Application.
COMMISSION DECISION
Does the Commission wish to approve the transfer ofCPCN No. 427 from Idacomm
Inc. to American Fiber Systems, Inc.
Inasmuch as American Fiber Systems, Inc. does not charge customer deposits, does
the Commission wish to waive Commission Rule 1 06, IDAP A 31.41.01.1 06?
c ~
~~
Neil Price
M:AFS-O7-
DECISION MEMORANDUM