20020529Order No 29038 - Notice of Application.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF ICG TELECOM GROUP, INC. TO AMEND AND EXPAND ITS CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE FACILITIES-BASED LOCAL EXCHANGE AND INTEREXCHANGE TELECOMMUNICATIONS SERVICES STATEWIDE.
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NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

ORDER NO. 29038

NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on May 16, 2002, ICG Telecom Group, Inc. (“ICG”) filed an Application to amend its current Certificate of Public Convenience and Necessity. In Case No. GNR-T-98-9, the Commission previously granted ICG authority to provide facilities-based local exchange and interexchange services in the Qwest and Verizon service territories. Order No. 27955. ICG now seeks to expand its authority under the Certificate to provide such services statewide.
YOU ARE FURTHER NOTIFIED that ICG initially intends to expand into the service area of Farmers Mutual Telephone Company. Application at 3. According to its Application, ICG plans to offer service to Internet service providers who currently do not have points of presence in many of Idaho’s exchange areas. Id. Furthermore, ICG states that it has established nationwide contractual arrangements with major Internet service providers for the deployment of points of presence on the ICG network. Id. The Application contends that customers who currently have to dial long-distance for Internet service will benefit from the establishment of points of presence within their local calling areas. Id.
YOU ARE FURTHER NOTIFIED that ICG intends to deploy an independent network by either building its own facilities or leasing facilities owned by other carriers. Id. Since it has not finalized its construction plans, ICG plans to rely primarily on the leased facilities or tariffed services of other certificated carriers at this time. Id. at 4.
YOU ARE FURTHER NOTIFIED that to the extent a small local exchange carrier (LEC) possesses an exemption or suspension under Section 251(f) of the Telecommunications Act of 1996, ICG does not seek interconnection under Section 251(c) or to challenge such exemption from any of the other obligations specified in Section 251(c) at this time. Id. at 3-4. To support market entry and the exchange of all kinds of traffic between the small LEC’s customers and ICG customers, ICG presently intends to lease the facilities of third-party carriers or purchase the tariffed services of LECs exempt under Section 251(c). Id. at 4. To preserve its right to provide service using a small LEC’s unbundled network elements at some future date, ICG requests that the Commission grant ICG full facilities-based authority statewide with the following qualification: ICG may not provide service using unbundled network elements of a LEC that qualifies for an exemption under Section 251(f) unless and until it submits a bona fide request for interconnection and the Commission determines that the request satisfies the requirements of Section 251(f). Id.
YOU ARE FURTHER NOTIFIED that on December 19, 2001, ICG Communications, Inc., ICG Telecom Group’s parent company, filed a Plan of Reorganization with the U.S. Bankruptcy Court for the District of Delaware. ICG’s Application states that its parent company won preliminary court approval of its revised Reorganization Plan and that final approval from its creditors and the Bankruptcy Court is expected on May 20, 2002. Id. at 5. If approval is granted, ICG Communications will emerge from bankruptcy as early as two to three weeks later. Id.
YOU ARE FURTHER NOTIFIED that since the Chapter 11 filing, ICG Communications expects to exceed all of its financial and operational goals for 2001 as a result of its restructuring efforts. Id. The Application states that during the Chapter 11 filing, ICG Communications was able to retain or expand service agreements with nearly all of its top 100 customers. Id. As of November 30, 2001, ICG Communications had in excess of $150 million in cash available for funding on a going forward basis. Id. Since March 2001, ICG Communications has been cash flow positive and appears to be on target to exceed its stretch goal of $38 million of earnings before interest, taxes, depreciation and amortization (EBITDA). Id. at 5-6.
YOU ARE FURTHER NOTIFIED that the Application asserts that the bankruptcy of ICG’s parent company has not affected ICG’s financial ability to provide high quality, reliable service to its customers. Id. at 6.
YOU ARE FURTHER NOTIFIED that ICG believes that the public interest does not require a hearing to consider the issues presented by this Application. Thus, ICG requests that the Application be processed under Modified Procedure pursuant to Rule 201 of the Idaho Public Utilities Commission’s Rule of Procedure. Id. at 7.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules of Procedure, IDAPA 31.01.01.201 through -.204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this Application may file a written comment in support or opposition with the Commission within twenty-one (21) days from the date of this Notice. The comment must contain a statement of reasons supporting the comment. Persons desiring a hearing must specifically request a hearing in their written comments. Written comments concerning this application shall be mailed to the Commission and the Applicant at the addresses reflected below:

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983 THORVALD A. NELSON
HOLLAND & HART, LLP
8390 E. CRESCENT PARKWAY, SUITE 400
GREENWOOD VILLAGE, CO 80111
Email: [e-mail]

AMY HARTZLER
ICG COMMUNICATIONS, INC.
161 INVERNESS DRIVE WEST
ENGLEWOOD, CO 80112
Email: [e-mail]

These comments should contain the case caption and case number shown on the first page of this document. Persons desiring to submit comments via e-mail may do so by accessing the Commission’s home page located at www.puc.state.id.us under the “File Room” icon. Once at the “File Room” page, select “File a Comment,” fill in the case number as it appears on the front of this document, and enter your comments. These comments must also be sent to the Applicant at the e-mail addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments are received within the time limit set, the Commission will consider this matter on its merits and enter its Order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
O R D E R
IT IS HEREBY ORDERED that the Application of ICG Telecom Group, Inc. for an amended Certificate of Public Convenience and Necessity be processed by Modified Procedure, IDAPA 31.01.01.201-.204. Persons interested in submitting written comments in this matter should do so no later than 21 days from the service date of this Order.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of May 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean Jewell
Commission Secretary

O:ICGT0201_ln

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29038 1

Office of the Secretary
Service Date
May 29, 2002