20040607Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN HAMMOND
DATE:JUNE 3, 2004
SUBJECT:IN THE MATTER OF THE APPLICATION OF BG ENTERPRISES, INC.
DBA GRIZZLY TELEPHON FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE
TELECOMMUNICATION SERVICES. CASE NO. BGE-04-
On March 12 , 2004 BG Enterprises, Inc. dba Grizzly Telephone ("Grizzly" or
Company filed an Application for a Certificate of Public Convenience and Necessity
CPCN") to provide resold competitive local exchange service throughout the State of Idaho.
Grizzly is a solely owned corporation headquartered in Missoula, Montana. The Company is
incorporated in the same state. The Company obtained a Certificate of Authority to transaGt
business as a foreign corporation from Idaho s Secretary of State on January 24 2000.
Although the Company does not maintain an office in Idaho, it does have a registered
in-state agent. The Company states that it has been serving Idaho customers since 2000. Grizzly
submitted its financials for the period ending February 4, 2004.Staff has reviewed these
documents and believes the Company is solvent.
Grizzly proposes to provide prepaid residential local exchange service with optional
services such as Caller ill and Call Waiting. The Company does not propose to offer toll
services or collect separate deposits. The Company has obtained an interconnection agreement
with Qwest in Idaho.
Grizzly has been granted authority to provide local exchange service in several other
states such as Washington and Oregon. The Company states that granting its Application for a
Certificate is in the public interest because Grizzly s entry into the local telecommunications
DECISION MEMORANDUM
services market will enhance competition in Idaho. Grizzly also states that it has reviewed the
rules of this Commission and affirms its commitment to abide by them.
On April 21 , 2004, the Commission issued Notice of Application and Notice of
Modified Procedure. Order No. 29476. In response to this Order, the Commission Staff
submitted comments on May 7 , 2004.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the information provided by Grizzly and believes it satisfies the
requirements of Commission Rule of Procedure 111 , IDAP A 31.01.01.111 and Procedural Order
No. 26665 issued November 7, 1996. Therefore, Staff recommends approval of the Application
for a CPCN.
COMMISSION DECISION
Does the Commission wish to approve Grizzly s Application for a Certificate of
Public Convenience and Necessity?
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DECISION MEMORANDUM