gnrt0026.jhdc.doc

JOHN R. HAMMOND
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5470

Street Address for Express Mail:
472 W. WASHINGTON
BOISE, ID 83702-5983

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF ESSEX COMMUNICATIONS DBA eLEC COMMUNICATIONS FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE FACILITIES-BASED LOCAL EXCHANGE AND INTERLATA INTEREXCHANGE
SERVICES IN IDAHO.
)
)
)
)
)
)
)
)
CASE NO. GNR-T-00-26

COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, John R. Hammond, Deputy Attorney General, submits the following comments in response to Order No. 28712, the Notice of Application and Notice of Modified Procedure in Case No. GNR-T-00-26 issued on April 18, 2001.

BACKGROUND
On August 9, 2000, Essex Communications, Inc. dba eLEC Communications (Essex) filed an Application for a Certificate of Public Convenience and Necessity (CPCN) in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. Essex is seeking authorization to provide resold local exchange services within the service areas of U S WEST North, U S WEST South, and Verizon within the state of Idaho. Specifically, the Company's accompanying Application and example tariff states its intention to provide all forms of

intrastate local exchange services and interexchange services to both business and residential customers. Essex states that it will initially provide service through resale agreements with incumbent local exchange carriers. If market conditions allow, Essex may build its own facilities. Some of these services include local dial tone for both business and residences at flat rates, 1+ outbound long distance service, calling cards, directory assistance, high-speed data services, and some feature services such as call forwarding and caller I.D.
Essex is a New York corporation with headquarters in Melville, New York and is a subsidiary of eLEC Communications Corp. (ELEC:NASDAQ), headquartered in Norwalk, Connecticut. The Company has obtained a Certificate of Authority from Idaho's Secretary of State on July 18, 2000, and has obtained authority to provide local service in several other states. Essex does not maintain an office in Idaho but does have a registered agent for this state.
Essex contends that it has the necessary technical and financial ability to provide service in Idaho and has stated its intent to comply with Idaho Rules and Laws.

DISCUSSION
Staff has reviewed the Application submitted by Essex and believes the Company understands and agrees to comply with the Commissions Rules and requirements. Essex also has requested exemptions from various Idaho Customer Relations Rules. However, after discussions with Staff, Essex concluded that the mentioned Rules did not apply to it so these requests were withdrawn.
Staff also reviewed the August 31, 2000 financials submitted by Essex. Essex is a large corporation that operates several subsidiaries and owns stock in other telecommunication-related companies. The Company does not propose to require advanced deposits from its customers. However, based on the financials presented, an estimated number of potential customers, and the lack of operating history in Idaho, Staff recommends that the Company post a $25,000 bond, payable to the Idaho Public Utilities Commission. That bond should remain on file for the first year that Essex serves customers in Idaho.
The Company intends to operate in the same Idaho areas as the "incumbent local exchange carriers" and, in lieu of providing duplicate copies of those maps already on file with the Commission, it references them for purposes of this Application. Essex Communications has also obtained an interconnection agreement with Qwest Corporation. Case No. QWE-T-01-5, Order No. 28713.

PUBLIC INTEREST
Essex advises that the public interest would be served by the issuance of this Certificate, first, by maintaining and enhancing competition in the local exchange marketplace in Idaho, and second, by increasing customer choice.

STAFF RECOMMENDATION
Based on Staffs review of Essex Communications, Inc.'s Application, Staff believes that the Company's filing has satisfied all the requirements of the Commissions Rules and Procedural Order No. 26665. Therefore, Staff recommends approval of the Application for Certificate of Public Convenience and Necessity contingent upon the Company's posting of a $25,000 bond.

Respectively submitted this day of May 2001.

___________________________
John R. Hammond
Deputy Attorney General

Technical Staff: Doug Cooley

JH:DC:gdk:umisc/comments/gnrt0026.jhdc
STAFF COMMENTS 3 MAY 9, 2001