HomeMy WebLinkAbout20230919Final_Order_No_35928.pdfORDER NO. 35928 1
Office of the Secretary
Service Date
September 19, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
On March 23, 2023, Electric Lightwave, LLC d/b/a Allstream (“Electric Lightwave”) and
Zayo Group, LLC (“Zayo”) (referred to collectively as “the Applicants”) jointly applied to the
Idaho Public Utilities Commission (“Commission”) seeking approval to transfer Electric
Lightwave’s Certificate of Public Convenience and Necessity (“CPCN”) No. 344 to Zayo with
Zayo being the only remaining entity after assuming Electric Lightwave’s CPCN.
On April 3, 2023, while retaining their original request, the Applicants filed an amended
application (“Application”) to comply with Rule 43 of the Commission’s Rules of Procedure. See
IDAPA 31.01.01.43.
On July 10, 2023, the Commission issued a Notice of Application and set deadlines for
public and Staff comments and the Company’s reply. Staff filed comments to which the Company
did not reply. No other comments were received.
With this Order, the Commission approves the relinquishment of Electric Lightwave’s
CPCN as well as the granting of a new CPCN to Zayo conditional upon the Company meeting the
requirements set forth below.
THE APPLICATION
Electric Lightwave is a wholly owned subsidiary of Zayo.1 Zayo is wholly owned by Zayo
Group Holdings, Inc. The Applicants stated that the Pro Forma Consolidation of Electric
Lightwave into Zayo will save costs by reducing the duplication of roles within the Applicants’
corporate structures.
The Applicants stated that Zayo provides numerous telecom related services including
providing broadband infrastructure and interconnection, private line, Ethernet, and wavelength
1 Zayo is authorized to engage in business activities related to telecommunication in Idaho.
IN THE MATTER OF ELECTRIC
LIGHTWAVE, LLC’S AND ZAYO GROUP,
LLC’S JOINT APPLICATION FOR
APPROVAL TO ASSIGN THE
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY HELD BY ELECTRIC
LIGHTWAVE, LLC TO ZAYO GROUP, LLC
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CASE NOS. ELI-T-23-01
ZAY-T-23-01
ORDER NO. 35928
ORDER NO. 35928 2
services. Zayo has been authorized to provide wholesale telecommunications service in Idaho
pursuant to Commission Order No. 32765. Electric Lightwave was granted its CPCN in Case No.
ELI-T-04-02. See CPCN No. 344. Both Zayo and Electric Lightwave have been authorized to
provide domestic and international services by the Federal Communications Commission.
If the Applicants’ requested relief is granted, the plan for Zayo is to form a division that
would be known as Allstream to provide the services that Electric Lightwave once provided. This
will include certain services that are not currently provided by Zayo. The Applicants stated that
customer rates and terms of service would not change if Electric Lightwave’s customers are served
directly by Zayo. Zayo plans to use Electric Lightwave’s existing facilities (and certain other
facilities) to provide local exchange service.2
Further information concerning the Applicants’ proposed Pro Forma Consolidation can be
found in the detailed Exhibits attached to the Application.
STAFF COMMENTS
Staff discussed the history of Electric Lightwave’s CPCN and recommended that Electric
Lightwave’s CPCN be canceled and that Zayo then be issued a new CPCN. Notably, this differs
from the Applicants’ request to transfer Electric Lightwave’s CPCN directly to Zayo. However,
Staff believed that canceling Electric Lightwave’s CPCN was preferable because Electric
Lightwave will be wholly replaced by Zayo and cease to exist should the Commission grant the
relief requested. Staff noted that the Commission had already granted Zayo the authority to provide
wholesale telecommunication services in Order No. 32765. After reviewing the information
provided by the Applicants, Staff stated that if the request is granted, Zayo had the capacity to
serve Electric Lightwave’s customers. Staff also explained that Electric Lightwave’s customers’
service, rates, and terms of service will remain the same. For these reasons, Staff recommended
that Electric Lightwave’s CPCN be cancelled; Staff also recommended that Zayo be granted a
CPCN conditional upon it meeting five conditions. Zayo must (1) comply with the North American
Number Plan Administrator requirements; (2) comply with all reporting and contribution
requirements prescribed by the Idaho Universal Service Fund, Idaho Telecommunications Relay
System, and Idaho Telecommunications Service Assistance Program, and must comply with all
future reporting requirements deemed appropriate by the Commission for competitive
2 Further information concerning the Applicants’ proposed Pro Forma Consolidation can be found in the detailed
Exhibits attached to the Application.
ORDER NO. 35928 3
telecommunications providers; (3) file with the Commission a final price list outlining its rates,
terms, and conditions before issuance of its CPCN; (4) provide the Commission with three reports
during the next 12 months, indicating the number of basic local exchange customers it has and the
services being offered. If Zayo fails to provide the reports, it will relinquish its CPCN and all
telephone numbers assigned or the Commission will issue an order revoking its CPCN; and (5)
recognize that if Zayo is not providing basic local exchange service by the time the third report is
due, the Commission by its own motion will revoke Zayo’s CPCN.
COMMISSION FINDINGS AND DECISION
The Commission sets the requirements that competitive local exchange carriers must
satisfy to obtain a CPCN. IDAPA 31.01.01.114. We recognize the Applicant’s initially requested
that the Commission transfer Electric Lightwave’s CPCN to Zayo. However, the Commission
finds that it is preferable to relinquish Electric Lightwave’s CPCN and issue Zayo a new CPCN
because Electric Lightwave will be wholly replaced by Zayo and cease to exist. Therefore, the
Commission finds that relinquishment followed by the granting of a new CPCN to Zayo is a
cleaner process. The Commission is satisfied that Zayo has the ability and the intent to maintain
Electric Lightwave’s obligations and expectations under a new CPCN.
Based on our review of the record, we find that Zayo has complied with the requirements
necessary to obtain a CPCN subject to the conditions outlined in Staff’s Comments. Excepting
those items discussed in Staff’s comments above, Zayo has provided all necessary information to
satisfy the Commission’s requirements in Zayo’s Application. We thus find it reasonable to grant
Zayo a CPCN, subject to the following conditions:
1. Zayo complies with number pooling and reporting requirements of the North
American Numbering Plan Administrator, as set forth in Commission Order
No. 30425;
2. Zayo provides necessary reports and contributions appropriate to the Idaho
Universal Service Fund, Idaho Telecommunications Relay Services, Idaho
Telecommunications Service Assistance Program, and complies with all future
reporting requirements deemed appropriate by the Commission for competitive
telecommunications providers;
3. Prior to issuance of the CPCN, Zayo files a final price list outlining all its rates,
terms, and conditions with the Commission;
ORDER NO. 35928 4
4. Zayo provides three reports to the Commission indicating the number of basic
local exchange customers it has and the services being offered. These reports
will be due as follows:
a. November 27, 2023
b. March 25, 2024
c. July 29, 2024
If Zayo fails to provide the three reports, Zayo shall relinquish its CPCN and
all telephone numbers it has been assigned or the Commission will by its own
order revoke Zayo’s CPCN; and
5. If Zayo is not providing basic local exchange service by the time the third
report is due, the Commission by its own order will revoke Zayo’s CPCN.
ORDER
IT IS HEREBY ORDERED that Electric Lightwave’s CPCN is now relinquished; Zayo
shall be granted a CPCN conditional upon it meeting the requirements described above.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. Idaho Code § 61-626.
ORDER NO. 35928 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 19th day of
September 2023.
__________________________________________
ERIC ANDERSON, PRESIDENT
__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER
__________________________________________
EDWARD LODGE, COMMISSIONER
ATTEST:
_________________________________
Jan Noriyuki
Commission Secretary
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