20201023Notice_of_Hearing_Order_No_34822.pdf

ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34822 1
Office of the Secretary
Service Date
October 23, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF GC PIVOTAL,
LLC DBA GLOBAL CAPACITY’S
ELIGIBILITY TO HOLD
CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY NO.
530
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CASE NO. GCP-T-20-01

ORDER VACATING ORDER NO. 34786

ORDER TO SHOW CAUSE

NOTICE OF HEARING

ORDER NO. 34822

GC Pivotal, LLC dba Global Capacity (“Company”) holds Certificate of Public
Convenience and Necessity (“CPCN”) No. 530. This matter comes before the Commission due to
the Company’s failure to provide timely reports to the Commission regarding the number of
customers to which it is providing basic local exchange service, in violation of Order No. 34484,
and the Company’s failure to provide basic local exchange service, in violation of Order No.
26665. See Idaho Code § 62-605(5)(b).
BACKGROUND
The Commission has noneconomic regulatory authority over telephone corporations
that provide basic local exchange service1 in Idaho. See Idaho Code § 62-605(5)(b). A provider of
basic local exchange service must apply to the Commission for a CPCN. See Order No. 26665.
A CPCN can be valuable to a telephone corporation. Idaho Code grants telephone
corporations broad access to rights of way along public roads and highways, and a provider that
holds a CPCN issued by the Commission is generally presumed to be a telephone corporation by
governmental entities granting right-of-way access. See Idaho Code § 62-701. Telephone
corporations that do not provide basic local exchange service are ineligible for a CPCN because
the Commission has almost no regulatory authority over them. See Order Nos. 26665 at 1, and
32059 at 2-3.

1 Basic local exchange service means the provision of access lines to residential and small business customers with
the associated transmission of two-way interactive switched voice communication within a local exchange calling
area. Idaho Code § 62-603(1).

ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34822 2
The Commission issued the Company CPCN No. 530 in December 2019 subject to
several conditions. In a September 9, 2020 decision memorandum, Staff asserted that the Company
has failed to meet a condition the Commission placed on the Company when it approved the
Company’s application (“Condition 5”). Specifically, in Order No. 34484, the Commission
ordered:
The Company must provide 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 on: February 19, 2020; June 17, 2020;
and October 18, 2020. If the Company fails to provide the three reports,
the Company shall relinquish its CPCN and all telephone numbers.
The Company has failed to file any of the three reports.
On September 28, 2020, the Commission issued an Order to Show Cause, requiring the
Company to appear before it on October 20, 2020 to show cause why the Commission “should not
find the Company violated Condition 5 of Order No. 34484.” Order No. 34786. The Order to Show
Cause also noted that “[t]elephone corporations that do not provide basic local exchange service
are ineligible for a CPCN.” Id. at 1. However, the Commission did not cite failure to provide basic
local exchange service as a claim against the Company. The Commission attempted to serve a
copy of the Order to Show Cause on the Company by certified mail, but the copy was sent to an
incorrect address.
STATUTORY AUTHORITY
The Commission has jurisdiction in this matter under Idaho Code § 61-501, which vests
the Commission with the authority and jurisdiction to supervise and regulate every public utility
in the state. Idaho Code § 62-605(5)(b) gives the Commission “continuing authority to determine
the noneconomic regulatory requirements relating to basic local exchange service for all telephone
corporations providing basic local exchange service….” Under Idaho Code § 61-624, the
“[C]omission may at any time, upon notice to the public utility affected, and after opportunity to
be heard as provided in the case of complainants, rescind, alter[,] or amend any order or decision
made by it,” including an order granting a CPCN to a telephone corporation. See Idaho Code §§
61-612 to 61-618.
ORDER NO. 34786 VACATED
The Commission’s previous Order to Show Cause in this case, Order No. 34786, was
served on an incorrect address. Therefore, the Company has not yet received notice of the show-
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34822 3
cause hearing. Additionally, Order No. 34786 only listed one claim against the Company – failure
to file reports with the Commission. It is axiomatic that the reports are required to ensure that the
Company is providing basic local exchange service. If the Company is not providing basic local
exchange service it is not eligible for a CPCN. The Company has not provided the reports to date;
therefore, there is no evidence the Company is providing basic local exchange service to any of its
customers. Because Order No. 34786 was not served on the correct address and did not list a claim
that the Company has failed to provide basic local exchange service, the Commission vacates
Order No. 34786 and issues this Order in its place.
This Order differs from Order No. 34786 in two respects. First, it adds Claim 2 and
requires the Company to appear before the Commission to address both claims. Second, it sets a
new date for the show-cause hearing. See Idaho Code § 61-616.
CLAIM
1. Violation of Commission Order No. 34484
In Order No. 34484, the Commission conditioned approval of the Company’s
application for a CPCN on the Company providing “three reports to the Commission indicating
the number of basic local exchange customers it has and the services being offered.” See Condition
5. The first report was due February 19, 2020; the second report on June 17, 2020; and the third
report will be due on October 18, 2020. The Commission received none of the reports.
2. Violation of Commission Order No. 26665
Consistent with Title 62 and this Commission’s established practices, telephone
corporations that do not provide basic local exchange service are ineligible for a CPCN. See Order
No. 26665. The Commission has failed to supply evidence that it is providing basic local exchange
service. In particular, the Company has provided none of the reports required by Order No.
34484—reports designed to inform the Commission whether the Company is providing basic local
exchange service.
ORDER
IT IS HEREBY ORDERED that the previous Order to Show Cause in this case, Order
No. 34786, is vacated. Based on the evidence before the Commission, and good cause appearing,
IT IS FURTHER ORDERED that the Company shall appear before the Commission on
TUESDAY, NOVEMBER 17, 2020, AT 2:30 PM (MDT), to show cause:
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NOTICE OF HEARING
ORDER NO. 34822 4
a. Why the Commission should not find the Company violated Condition 5 of Order No.
34484;
b. Why the Commission should not find the Company violated the CPCN eligibility
requirements in Order No. 26665; and
c. Why the Commission should not rescind Order No. 34484 pursuant to Idaho Code § 61-
624 based on the Company’s failure to meet the Commission’s prescribed conditions for
CPCN issuance, thereby revoking the Company’s CPCN.
The Company may appear before the Commission in person or telephonically. Interested persons
can call 1-800-920-7487 shortly before the designated time and enter the passcode 6674832# when
prompted. At the hearing, the Commission may allow the Company and/or Commission Staff to
call witnesses and otherwise present evidence on the claims against the Company.
IT IS FURTHER ORDERED that the telephonic hearing will meet accessibility
requirements of the Americans with Disabilities Act. Persons needing the help of a sign language
interpreter or other assistance in order to participate in or to understand testimony at a public
hearing may ask the Commission to provide a sign language interpreter or other assistance at the
hearing. The request for assistance must be received at least five working days before the hearing
by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P.O. BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
[e-mail]
IT IS FURTHER ORDERED that all proceedings in this matter will be conducted
pursuant to Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA
31.01.01.000 et seq.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order to Show
Cause by Certified Mail (return receipt requested) upon the person designated to receive Notices
of Summonses and Complaints (IDAPA 31.01.01.016) and upon the person designated by the
utility to receive legal service in Idaho. Idaho Code § 61-615.
IT IS FURTHER ORDERED that parties should continue to comply with Order No.
34781, issued September 17, 2020. All pleadings should be filed with the Commission
electronically and shall be deemed timely filed when received by the Commission Secretary. See
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34822 5
Rule 14.02. Service between parties should also be accomplished electronically. Voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23rd
day of October 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\TELEPHONE\GCP-T-20-01\GCPT2001_Show_Cause_Ntc_vacate_mh.docx