27122.docx

(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF MAX-TEL COMMUNICATIONS, INC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO OPERATE AS A RESELLER OF TELECOMMUNICATIONS SERVICES WITHIN THE STATE OF IDAHO.
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CASE NO. GNR-T-97-2
ORDER NO.  27122
On February 1, 1997, Max-Tel Communications, Inc. (Max-Tel), a Texas corporation, submitted an Application seeking authority as a reseller of local telecommunications services within the service area of U S WEST and GTE in Idaho.  On April 1, 1997, this Commission issued a Notice of Modified Procedure soliciting comments in response to Max-Tel’s Application.  The only party to file comments was the Commission Staff.
Staff noted that Max-Tel proposes to provide service on a monthly “prepaid” basis.  Max-Tel’s target market would be those customers who presently do not have service presumably due to unpaid bills with the existing local exchange carrier.  The only concern expressed by Staff regarding Max-Tel’s Application relates to the Company’s financial ability to provide service.  Consequently, on June 26, 1997, this Commission issued Order No. 27018 finding that, pursuant to Idaho Code
§ 61-528, it would be in the public interest to impose some type of performance bond, escrow account or other surety arrangement to provide reasonable assurance that Max-Tel has the financial ability to provide the services being proposed and billed for in advance.  
Subsequent to the issuance of Order No. 27018, Max-Tel and the Commission Staff reached an agreement concerning an appropriate surety arrangement.  Under that agreement, Max-Tel will post a $5,000 bond as a condition precedent to its receiving a certificate of public convenience and necessity.  In addition, Max-Tel will maintain a bond level at no less than $50 per customer.  The Company will report to the Commission by the 10th day of each month identifying the number of customers it has on the first day of that month and providing evidence of any increase in bond level, if required.  Max-Tel further agrees that failure to submit its report in a timely manner or to maintain a sufficient bond level as aforementioned, may subject the Company to penalties as specified in Idaho Code §§ 61-706 and -707.  Finally, the parties agreed that Max-Tel could petition for a review and reconsideration of the foregoing agreement after one full year of operation in the state of Idaho with the submittal of revised financial information including current detailed balance sheets and a detailed income statement reflecting current and prior year results of operations for the twelve months ended as of the date of the balance sheet.  
FINDINGS
WE HEREBY FIND that the agreement reached between Max-Tel and the Commission Staff is reasonable and is hereby adopted.  The establishment of a performance bond and the filing of updated customer information provides this Commission with reasonable assurance that Max-Tel will provide the services being billed for in advance.  Consequently, we feel that the public interest has been adequately protected and Max-Tel will be issued a Certificate of Public Convenience and Necessity, as conditioned above, as soon as it files written documentation establishing that it has posted a $5,000 bond and has set a bond level at no less than $50 per customer for its initial customer base.
O R D E R
IT IS HEREBY ORDERED that Max-Tel’s Application for a Certificate of Public Convenience and Necessity is granted subject to the terms and conditions set forth herein.
THIS IS A FINAL ORDER.  Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. GNR-T-97-2 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 No. GNR-T-97-2.  Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration.  See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this                  day of September 1997.
                                                                                                                                      DENNIS S. HANSEN, PRESIDENT
                                                                                           RALPH NELSON, COMMISSIONER

MARSHA H. SMITH, COMMISSIONER
ATTEST:

Myrna J. Walters
Commission Secretary
cm\O:gnrt972.bp
COMMENTS AND ANNOTATIONS
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Service Date
September 4, 1997