20030728Final Order No 29308.pdf

Office of the Secretary
Service Date
July 28, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
COVISTA, INC. FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY TO PROVIDE
LOCAL EXCHANGE TELECOMMUNICATIONSSERVICES.
CASE NO. GNR-03-
ORDER NO. 29308
On May 19, 2003 , Covista, Inc. (Covista Company) filed an Application for a
Certificate of Public Convenience and Necessity to provide facilities-based and resold local
exchange service within the State of Idaho. This Application was subsequently amended by
Covista in a filing received June 12 2003. The Company initially intends to provide resold local
exchange services and local services to business customers utilizing the unbundled network
elements platform (UNE-P). In the Notice of Application and Modified Procedure issued June
, 2003 , the Commission solicited comments regarding Covista s Application. Order No.
29269. No comments were received other than those submitted by Commission Staff. Based
the comments, the law and the record, the Commission grants Covista s Application.
THE APPLICATION
Covista, Inc. requests authority to operate as a competitive local exchange provider
offering resold local exchange services and local services utilizing the UNE-P platform
throughout the Idaho service areas that coincide with the incumbent local exchange carrier
(ILECs) local calling areas. Covista intends to provide all forms of local exchange
telecommunications services, including: 1) local exchange services for business and residential
customers; 2) switched local exchange services such as flat-rated, measure-rated, and vertical
services; 3) non-switched local services (e., private line); 4) Centrex and/or Centrex-like
services; and 5) digital subscriber line, ISDN, and other high capacity line services. However
Covista stated that it does not intend to service areas currently served by any local exchange
carriers (LECs) that are eligible for a small or rural carrier exemption pursuant to Section 251 of
the federal Telecom Act of 1996.
Covista s Application states that Covista will not require advance payments or
deposits. Therefore, it does not request an escrow account. Covista stated that it has reviewed
the laws and regulations of this Commission governing local exchange telecommunications
ORDER NO. 29308
services in Idaho and will provide service in accordance with all laws, rules and regulations to
the extent they are not preempted by the Federal Act.
STAFF COMMENTS
In its comments filed July 2, 2003 , Staff observed that Covista, Inc. is currently
incorporated in the State of New Jersey with its primary place of business in Chattanooga
Tennessee. In 2000, the Company obtained an Amended Certificate of Authority to transact
business as a foreign corporation from Idaho s Secretary of State and has a registered in-state
agent. Although it intends to resell local exchange services, Staff noted that the Company has
not yet obtained an interconnection agreement in Idaho.
Covista, Inc. has been approved to provide telecommunications services in other
states and is listed on the NASDAQ under CYST. Based upon its review of the Company
Form 10-K as well as recent Income Statements, Cash Flow Statements and Balance Sheets
Staff believes the Company is financially sound. Staff also noted that its Consumer Assistance
Division found that there have been no complaints against this Covista, Inc. in the past.
Staff has reviewed the Application submitted by Covista, Inc. and believes the
Company understands and agrees to comply with the Commission s rules and requirements.
Based on this review of Covista 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 recommended approval of the Application for a Certificate of Public
Convenience and Necessity.
COMMISSION FINDINGS
Based on the comments, the law and the record, the Commission grants the
Application. When considering an application for a Certificate, the Commission must determine
if the applicant has the necessary qualifications to provide service while still fostering
competition in the local telecommunications market. Based upon our review of the filing and the
record in this case, the Commission finds that Covista s filing satisfies the requirements of the
Commission s Rules and Procedural Order No. 26665.Id.Thus, we approve Covista
Application for a Certificate of Public Convenience and Necessity to allow the Company to
provide telecommunications services statewide. This is consistent with our previous Orders
granting statewide authority to provide telecommunications services to carriers meeting the
established requirements. Because Covista will not require advance payments or deposits, the
ORDER NO. 29308
Commission finds it reasonable to waive any requirement for Covista to maintain an escrow
account.
ORDER
IT IS HEREBY ORDERED that Covista, Inc. is granted a Certificate of Public
Convenience and Necessity to provide basic local exchange services within the state ofIdaho.
THIS IS A FINAL ORDER. Any person interested in this Order or in interlocutory
Orders previously issued in this case may petition for reconsideration within twenty-one (21)
days of the service date of this Order with regard to any matter decided in this Order or in
interlocutory Orders previously issued in this case. Within seven (7) days after any person has
petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code S 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho , this ;l.)-tk
day of July 2003.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
O:GNRT0319 In2
ORDER NO. 29308