19991221Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
TONYA CLARK
LYNN ANDERSON
DON HOWELL
STEPHANIE MILLER
JOE CUSICK
DOUG COOLEY
WORKING FILE

FROM: CHERI C. COPSEY

DATE: DECEMBER 21, 1999

RE: IN THE MATTER OF THE APPLICATION OF COMM SOUTH COMPANIES, INC FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. CASE NO. GNRT9912.

On July 26, 1999, the Commission received an Application from Comm South Companies, Inc. for a Certificate of Public Convenience and Necessity to provide resold basic local exchange service as a competitive local carrier within the state of Idaho on a prepaid basis. Application at 1 and 2.
On November 29, 1999, the Commission ordered the matter be considered under Modified Procedure. Order No. 28222. On December 20, 1999, only Staff filed comments.
BACKGROUND
On July 26, 1999, Comm South Companies, Inc. 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. Comm South is seeking authorization to provide prepaid local exchange service to Idaho customers on a resale basis pursuant to Title 61 of the Idaho Code within the state of Idaho.

Comm South was incorporated in the state of Texas on March 17, 1995, as Onyx Distributing Company , Inc. and subsequently changed its name to Comm South Companies, Inc. and is authorized to do business in Idaho. As of November 1999, Comm South became a wholly owned subsidiary of Topp Telecom, Inc. As part of its Application, Comm South submitted financial information for its parent, Topp Telecom.
Comm South will do no consumer credit checking or application screening because all services will be prepaid. Comm South is authorized to provide service in thirty states. It has applications pending to provide resold local service in Arizona and New Mexico. It is also authorized to provide resold local service through wholly owned subsidiaries (Georgia Comm South, Inc. and E-Z Tel, Inc.) in Georgia, North Carolina and South Carolina. Its wholly owned subsidiary, Comm South Companies of Virginia, Inc., has a pending Application to provide resold local service in Virginia. It alleges that it has never been denied a certificate by any state.
STAFF COMMENTS
Staff reviewed the Application submitted by Comm South and believes Comm South understands the Commission’s rules and requirements. Specific to prepaid arrangements, Staff reviewed Comm South’s notification and billing procedure and found they comply with Idaho Customer Relations Rules IDAPA 31.41.01.202 and 304.
As of November 1999, Comm South became a wholly owned subsidiary of Topp Telecom, Inc. As part of its Application, Comm South submitted financial information for its parent, Topp Telecom. Staff reviewed those financials. Based on the financials presented and the lack of business history in Idaho, Staff required and received evidence of a $50,000 indemnity bond for Comm South payable to the Idaho Public Utilities Commission.
RECOMMENDATION
Based on Staff’s review of Comm South’s Application, Staff found that Comm South meets the requirements of the Commission’s Rules and Procedural Order No. 26665. Therefore, Staff recommended approval of Comm South’s Application for a Certificate of Public Convenience and Necessity.

Commission Decision:
Should Comm South’s Application for Certificate of Public Convenience and Necessity be approved?

Cheri C. Copsey

Staff: Doug Cooley

M:gnrt9912_cc

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