gnrt999_cc.doc

CHERI C. COPSEY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5142

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 CHOCTAW COMMUNICATIONS, INC. DBA SMOKE SIGNAL COMMUNICATIONS FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. )
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CASE NO. GNR-T-99-9

COMMENTS OF THE COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its attorney of record, Cheri C. Copsey, Deputy Attorney General, in response to Order No. 28105 issued on August 27, 1999, submits the following comments.

BACKGROUND
On June 21, 1999, Choctaw Communications, Inc. d.b.a. Smoke Signal Communications filed an Application for a Certificate of Public Convenience and Necessity in compliance with Commission Rules of Procedures, IDAPA 31.01.01.111 and Procedural Order No. 26665. Choctaw is requesting authorization to provide prepaid local exchange service to residential customers on a resale basis pursuant to Title 61 of Idaho Code within the U S WEST (North and South) and GTE service areas in Idaho. Pursuant to Title 62 of Idaho Code, Choctaw presently provides interexchange services throughout the state of Idaho.
Choctaw was incorporated in Texas on August 5, 1996, as a limited liability company under Texas law. On November 30, 1998, Choctaw was converted to a Texas business corporation under Texas law. On March 26, 1999, the Idaho Secretary of State issued a Certificate of Authority to Choctaw under the Idaho Business Corporation Act. VarTec Telecom, Inc., an MTS provider in Idaho, owns eighty-one percent (81%) of Choctaw’s common stock. Choctaw states in its Application that it has no management agreements with VarTec. According to the Idaho 1999 USF Report, VarTec reported more than eleven million MTS minutes in Idaho in 1998. While VarTec apparently paid its USF assessments, Staff learned that VarTec may be delinquent with its Idaho Telecommunication Relay Service (TRS) payments and may owe more than seven thousand dollars ($7,000). On September 16, 1999, the TRS administrator, Mr. Dubar, contacted VarTec and requested payment. If VarTec does not comply, Staff may seek an Order to Show Cause from the Commission.

DISCUSSION
Staff reviewed Choctaw’s Application and concludes Choctaw understands the Commission’s rules and requirements. Based on the financial information presented to Staff and the lack of business history in Idaho, Staff required and received evidence of a $50,000 indemnity bond for Choctaw. In addition, Staff confirmed that Choctaw’s proposed notification and billing procedures comply with Idaho Customer Relations Rules IDAPA 31.41.01.202 and 304.

RECOMMENDATION
Based on Staff’s review of Choctaw’s Application, Staff concludes that Choctaw meets the requirements of the Commission’s Rules and Procedural Order No. 26665 and recommends the Commission approve the Application provided Choctaw verifies it intends to pay its state imposed assessments.
Dated at Boise, Idaho, this day of September 1999. .

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Cheri C. Copsey
Deputy Attorney General

Technical Staff: Doug Cooley

CC:va:word:u/umisc/Gnrt999_cc
STAFF COMMENTS 1 September 17, 1999