gnrt009.jcch.doc

JEFF H. CAPELL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5764

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 MAXCESS, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. )
)
)
)
)
)
CASE NO. GNR-T-00-9

COMMENTS OF THE COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its attorney of record, Jeff H. Capell, Deputy Attorney General, and in response to the Notice of Application and Notice of Modified Procedure, Order No. 28335 issued on April 10, 2000, submits the following comments.

BACKGROUND
On March 9, 2000, Maxcess, Inc. (Maxcess) filed an Application with this Commission for a Certificate of Public Convenience and Necessity in compliance with Commission Rules of Procedure, IDAPA 31.01.01.111 and Procedural Order No. 26665.
Maxcess is a newly formed Florida corporation with its headquarters in Orlando, Florida that is seeking authority to provide local exchange telecommunications service to Idaho residences and businesses pursuant to Title 61, Idaho Code. Maxcess intends to provide its services using the incumbent local exchange carrier’s unbundled network elements. The Company anticipates providing competitive local exchange services throughout the U S WEST (USW) and GTE service areas of Idaho and is requesting authorization as a CLEC.

DISCUSSION
Staff has reviewed the Application and illustrative tariff submitted by Maxcess and believes that the filing meets the requirements of the Commission’s Procedural Order No. 26665. In its Application, the Company agreed to comply with the Commission’s Rules of Procedure. The Company is also seeking a waiver of the escrow account requirement for deposits as set forth in Commission's Procedural Order No. 26665. The Company does not anticipate collecting deposits from its customers.
As presented in the Company’s filing, the financial statements for Maxcess raised certain concerns. Following Staff’s inquiry about the financial viability of Maxcess, the Company presented its March (2000) bank deposit statement, which showed a significant increase in finances. The Company explained that it is in the process of raising more capital for its operations and anticipates a large sum in the near future. Staff discussed the possibility of the Company obtaining a performance bond to protect Idaho consumers. The Company's consultant, Lance Stienhart, agreed with Staff's suggestion that it would be reasonable to condition the Certificate upon the Company's procurement of a performance bond in the amount of $150,000 to be in effect for a period of two years.

STAFF RECOMMENDATION
Maxcess has complied with all filing requirements for issuing a certificate. Staff recommends that the Commission grant the Company a Certificate of Public Convenience and Necessity for the USW and GTE service areas in Idaho. Because the Company does not anticipate charging customer deposits Staff recommends granting a waiver for the establishment of an escrow account as required by Commission Procedural Order No. 26665. It is further recommended that the issuance of a certificate to Maxcess be conditioned on the procurement of a performance bond of $150,000. Because Maxcess is a start-up company and because the Company may not generate positive cash flows for some time, Staff recommends that the performance bond be in place for a period of two years, unless the Company petitions the Commission to eliminate the bond requirement before the expiration of the two-year period.

Respectfully submitted this day of April 2000.

___________________
Jeff H. Capell
Deputy Attorney General

Technical Staff: Carolee Hall

JHC:WH:gdk:i:word/umisc/comments/gnrt009.jcch

STAFF COMMENTS 2 APRIL 26, 2000