20031017Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:OCTOBER 15, 2003
RE:APPROVAL OF APPLICATION OF REGAL DIVERSIFIED, INc. DBA
REGAL TELEPHONE COMPANY FOR A CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY, CASE NO. GNR-03-
On June 26 , 2003 , Regal Diversified, Inc. dba Regal Telephone Company filed an
Application for a Certificate of Public Convenience and Necessity to provide local
telecommunication services within the State of Idaho. Regal is a reseller of local
telecommunication service, is incorporated in the State of Montana and is currently doing
business in Montana, Arizona, Wyoming and Oregon. Regal intends to provide local service that
must be prepaid for 30-day periods and will be discontinued if the customer fails to prepay after
receiving a company reminder.
On September 23 , 2003, the Commission issued a Notice of Application and Notice
of Modified Procedure to process Regal's Application. During the written comment period
provided by the Commission, written comments were filed only by the Commission Staff. Staff
noted that Regal is a privately held company that does not hold ownership or management
interest in any other company. Regal provided its balance sheet and profit statement for the
period ending December 31 , 2002. The financial statements show Regal to be solvent with a
78% debt equity ratio. Regal intends to provide service after it receives a CPCN and obtains an
Interconnection Agreement with Qwest Corporation. Staff stated that Regal has met the
Commission s requirements for obtaining a Certificate to provide local service in Idaho.
Staff recommends approval of Regal's Application for a CPCN.
DECISION MEMORANDUM
Commission Decision
Should the Application of Regal Diversified, Inc. dba Regal Telephone Company for
a Certificate of Public Convenience and Necessity be approved?
0~ ------L
Weldon Stutzman
Vld/M:GNRTO324
DECISION MEMORANDUM