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October 13, 1998
Joe Paykel, Esq.
Mintz Levin
701 Pennsylvania Avenue, NW, Suite 900
Washington, D.C. 20004
RE: Acquisition of a CLEC in Idaho
Dear Mr. Paykel:
During our telephone conversation yesterday, you mentioned a client’s interest in acquiring a competitive local exchange carrier (CLEC) operating within Idaho. You asked about the Idaho Public Utilities Commission’s regulatory authority over such a transaction.
Generally, the Commission’s involvement in such a transaction depends upon how the transaction is structured. For example, if the transaction is more or less “transparent” (i.e., same company name, same rates, no change in customer service procedures, etc.), then the Commission involvement in the transaction may be minimal. However, if the transaction would result in changes to the Idaho operation or if your client were to acquire (instead of merge with) the existing Idaho CLEC, then the Commission may exercise greater authority. In particular, outright acquisition or transfer of a Certificate of Public Convenience and Necessity may warrant closer scrutiny based upon the CLEC standards contained in Order No. 26665. I have enclosed for your review the Commission’s Order No. 26665. You may also want to review Idaho Code § 62-704 pertaining to the transfer of rights and franchises of telecommunication corporations.
If your client consummates its proposed transaction with the Idaho CLEC, you should provide the Commission with a notice outlining the pertinent issues of the transaction: description of the parties; description of the transaction; effect on Idaho operations; and other items of significance. If the CLEC’s Certificate of Public Convenience and Necessity is to be transferred, then you should submit an application seeking such relief.
The filing requirements for CLECs may be found at the Commission’s website under “Utilities Division” then “So you want to be a telephone company.” I have attached the website’s linkages for your information.
If you desire a formal Commission ruling concerning the acquisition, our Rules of Procedure outline the process for submitting a petition for declaratory ruling. IDAPA 31.01.01.101-102. The Commission does not issue ex parte letter opinions.
If you have further questions, please contact me at (208) 334-0312.
Sincerely,
Donald L. Howell, II
Deputy Attorney General
DLH/vld:L:Paykel
Enclosure
cc:Commissioners
Joe Cusick