20060726Comments.pdf

CECELIA A. GASSNER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 6977
RECEIVED
200G JUL 26 PH I: 40
IDAHO PUBLIC
UTILITIES COMMISSION
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
DIRECT COMMUNICATIONS STAR WEST,
INc. FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY TO
PROVIDE LOCAL EXCHANGE SERVICES
WITHIN THE STATE OF IDAHO.
CASE NO. DCS-O5-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
attorney of record, Cecelia A. Gassner, Deputy Attorney General, and in response to the Notice
of Application and Notice of Modified Procedure issued in Order No. 30094 on July 7, 2006
submits the following comments.
BACKGROUND
On August 9, 2005, Direct Communications Star West, Inc. ("Direct" or "Company
filed an Application for a Certificate of Public Convenience and Necessity (CPCN) with the
Commission. In its Application, Direct states that it currently provides broadband and dial-up
Internet access to over 3 000 residents and businesses in southeastern Idaho. Direct intends to
provide Voice over Internet Protocol (VoIP) telecommunications services to its current
STAFF COMMENTS JULY 26, 2006
customers and to potential customers in Idaho in areas serviced by Direct Communications
Rockland, Inc. and Qwest Corporation.
Direct is an Idaho corporation with a corporate headquarters in Rockland, Idaho. The
Company has a Certificate of Incorporation dated February 23 , 1993 , and also a Certificate of
Good Standing issued by the Idaho Secretary of State on June 3, 2005. The Company has
provided financial information and the appropriate contact information for its registered agent for
service of process within Idaho. The Company also filed a revised illustrative tariff on June 29
2006.
STAFF ANALYSIS
Staff reviews all requests for a Certificate of Public Convenience and Necessity (CPCN)
pursuant to Idaho Code ~~ 61-526 through -528, IDAPA 31.01.01.111 and 112 (Rules 111 and
112), and Procedural Order No. 26665. To obtain a CPCN, an applicant must provide the
Commission with the following information: (1) name, address, and form of business; (2) the
date on which the applicant proposes to begin construction or anticipates that it will provide
service, including a written description of customer classes and services proposed to be offered;
(3) the proposed service territory; (4) certain financial information; (5) maps regarding the
proposed service area; (6) a proposed initial tariff and price sheets; (7) contact information;
(8) interconnection agreements if any; (9) an agreement to comply with the Commission s Rules;
and (10) an escrow account with a bonded escrow agent if the Company requires advanced
deposits from its customers. Order No. 26665.
Through its review of the Application and numerous discussions with the Company, Staff
has determined that the Company s filing complies with the requirements of the Commission.
However, Staff notes that in its Application the Company has indicated that the "Applicant will
compete with Direct Communications Rockland, Inc. and Qwest." See Application page
Direct Communications Rockland, Inc. is the Incumbent Local Exchange Carrier (ILEC) within
the service territory and receives Federal and State Universal Service Funding. While this
service territory arrangement is highly unusual, Staff does not believe it is cause for denial of the
Company s application. That said, Staff believes that some monitoring may be warranted to
avoid any possible conflict between the closely held companies. In its Application the Company
stated that it understands and agrees to comply with Commission Rules and Requirements. Staff
STAFF COMMENTS JULY 26, 2006
further believes that the Company possesses the requisite financial, managerial and technical
qualifications necessary to operate as a provider of telecommunications services.
RECOMMENDATION
Based on its review of the Application, Staff recommends approval of the application for
a Certificate of Public Convenience and Necessity with a waiver of the escrow account
requirement until such time as the Company decides to collect deposits. In the future, should the
Company decide to collect deposits, Staff recommends that the Company be ordered to comply
with the escrow requirement as well as the Commission s Rules for interest on deposits.
Respectfully submitted this
J.h
"""
day of July.
ceceli
Deputy Attorney General
Technical Staff: Carolee Hall
i:umisc:comments/dcstO5.! cgch
STAFF COMMENTS JULY 26, 2006
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 26TH DAY OF JULY 2006
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. DCS-05-, BY MAILING A COpy THEREOF, POSTAGE PREPAID
TO THE FOLLOWING:
CONLEY E. WARD
GIVENS PURSLEY LLP
PO BOX 2720
BOISE, ID 83701-2720
SECRET
CERTIFICATE OF SERVICE