20210113Final_Order_No_34890.pdf

ORDER NO. 34890 1

Office of the Secretary
Service Date
January 13, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

GC Pivotal, LLC dba Global Capacity (Company) was issued Certificate of Public
Convenience and Necessity (CPCN) No. 530 in December 2019. This Commission issues CPCNs
to telephone corporations subject to certain conditions. The Company’s Certificate was issued
subject to: (1) compliance with the North American Number Pool Administrator (NANPA)
requirements; (2) contribution to the Idaho Universal Service Fund, Idaho Telecommunications
Relay Services (TRS), and Idaho Telecommunications Assistance Program (ITSAP); (3)
compliance with all future reporting requirements deemed appropriate by the Commission for
competitive telecommunications providers; (4) filing of a final price list with the Commission; and
(5) filing of three reports—due February 19, 2020, June 17, 2020, and October 18, 2020—stating
the number of customers receiving basic local exchange service from the Company and the
services being offered. Order No. 34484.
In a September 9, 2020 decision memorandum, Staff notified the Commission that the
Company had failed to provide the Commission with the reports required in Order No. 34484. On
September 28, 2020, the Commission issued an Order to Show Cause why the Commission should
not rescind Order No. 34484 based on the Company’s failure to meet the prescribed conditions for
CPCN issuance. See Order No. 34786. The Commission set a hearing date of October 20, 2020.
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.
On October 23, 2020, the Commission vacated its previous Order to Show Cause and
issued a new Order to Show Cause. Order No. 34822. Order No, 34822 differed from Order No.
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 NO. 34890
ORDER NO. 34890 2

34786 in two respects. First, it added Claim 2 and required the Company to appear before the
Commission to address both Claims 1 and 2. Second, it set a new date for the show-cause hearing.
On November 11, 2020, the Company filed all three reports. The reports indicated the
Company has had 13 to 12 basic local exchange customers since February 19, 2020. On November
17, 2020, the Commission held a show-cause hearing. While a representative of the Company did
not appear at the show-cause hearing, a representative of a firm that provides compliance services
for the Company appeared telephonically.
On December 14, 2020, the Company filed a letter addressing the claims in the
Commission’s show-cause order.
Having reviewed the record, we find the Company is providing basic local exchange
service. We therefore conditionally allow the Company to retain its CPCN.
ORDER TO SHOW CAUSE
The Order to Show Cause required the Company to appear before the Commission to
show cause:
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.
Order No. 34822. The Commission served a copy of the Order to Show Cause on the Company
via certified mail.
On November 17, 2020, the Commission held the show-cause hearing. While a
representative of the Company did not appear1, Laura Garfinkel—an employee of a firm that
provides regulatory consulting services to the Company—appeared telephonically and was
allowed to make a statement for the record in the Company’s interest. Ms. Garfinkel explained
that the Company is providing basic local exchange service to approximately 13 customers, and
that the three reports were not filed by the required dates because of an internal miscommunication.
Ms. Garfinkel assured the Commission that steps have been taken to ensure the error will not

1 See IDAPA 31.01.01.043 (describing the requirements for representation of parties before the Commission).
ORDER NO. 34890 3

happen again. The Commission informed Ms. Garfinkel that her statement could not be used as a
basis for a decision by the Commission because she is not an authorized representative of the
Company. The Commission recommended Ms. Garfinkel encourage an authorized representative
of the Company to file a statement with the Commission. The Commission left the record open
following the hearing in order to allow the Company additional time to make a filing.
Commission Staff was represented at hearing by Deputy Attorney General Matt
Hunter. Mr. Hunter requested that several exhibits be entered into the record. The first exhibit was
the signed affidavit of Daniel Klein, a utility analyst with the Commission specializing in
telecommunications. Mr. Klein’s affidavit concerned his efforts to verify whether the Company is
providing telecommunication service. The second exhibit was a copy of the signed certified mail
receipt, indicating the Company received a copy of the Order to Show Cause issued by the
Commission on October 23, 2020.
THE COMPANY’S LETTER
On December 14, 2020, the Company filed a letter and updated reports2. The Company
explained that the reports were not filed by the dates required because of an internal
miscommunication, and that the Company provides basic local exchange service to approximately
12 to 14 customers in Idaho. The Company asserted it would promptly file any “back filings related
to the [Idaho Universal Service Fund] and TRS…and…all filings related to the same shall be filed
on and in accordance with the Commission rules and schedules.” Company Letter at 2. The
Company asserted it would take extra care going forward to remain in compliance with the
Commission’s rules and requirements.
COMMISSION FINDINGS AND DECISION
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. Further, under Idaho Code § 61-624 the “[C]ommission 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. The
Commission has noneconomic regulatory authority over telephone corporations that provide basic

2 The reports received on November 11, 2020 contained an error: the number of basic local exchange customers for
the June 17, 2020 report was left blank. The Company’s resubmittal of these forms corrected this error. The June 17,
2020 report indicates the Company had 12 basic local exchange customers.
ORDER NO. 34890 4

local exchange service3 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.
As recently as September 2018, the Commission observed that it does not have
authority to regulate a company that does not provide switched-based telecommunication service
in Idaho, and that the Title 62 CPCNs were never intended for companies outside the
Commission’s statutory authority. Order No. 34130. Further, Commission Staff has consistently
reiterated that a CPCN may not be issued or held by a company that is not providing basic local
exchange service. See Case No. IGL-T-18-01, Staff Comments; Case No. SLI-T-20-01, Staff
Comments.
Based on the Company’s reports and representations in its December 14, 2020 letter,
we find the Company is providing basic local exchange service. Since receiving its CPCN, the
Company has been providing basic local exchange service to 12 to 13 customers. Therefore, the
Company continues to meet the CPCN eligibility requirements in Order No. 26665.
Nevertheless, the Company violated Condition 5 of Order No. 34484 by failing to
provide the three reports in a timely manner. As these reports are the primary means by which the
Commission determines whether a telephone corporation continues to be eligible to hold a CPCN,
these reports are essential and must be filed by the required deadlines. To ensure the Company
continues to provide basic local exchange service going forward, we find it in the public interest
to require the Company to provide three reports to the Commission indicating the number of basic
local exchange customers it has and the services being offered. The reports will be due on: May
17, 2021, September 20, 2021, and January 17, 2022. Furthermore, it is the responsibility of each

3 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 NO. 34890 5

regulated utility to be aware of and compliant with this Commission’s pertinent statutes, rules and
orders. All of these things are accessible not only by visiting the Commission’s office but also on
the puc.idaho.gov website. We direct the Company to review its rights and obligations so that the
present circumstances can be avoided in the future.
O R D E R
IT IS HEREBY ORDERED that the Company shall retain its CPCN on the following
condition: the Company is directed to provide three reports to the Commission indicating the
number of basic local exchange customers it has and the services being offered. The reports shall
be due on:
a. May 17, 2021;
b. September 20, 2021; and
c. January 17, 2022.
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. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code § 61-626.
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ORDER NO. 34890 6

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 13th
day of January 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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