20020619Comments.doc

LISA D. NORDSTROM
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5733

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 ICG TELECOM GROUP, INC. TO AMEND ITS CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE AND INTEREXCHANGE TELECOMMUNICATIONS SERVICES STATEWIDE.
)
)
)
)
)
)
)
)
CASE NO. ICG-T-02-01

COMMENTS OF THE COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its Attorney of record, Lisa D. Nordstrom, Deputy Attorney General, and in response to the Notice of Application and Notice of Modified Procedure issued in Order No. 29038 on May 29, 2002, submits the following comments.

BACKGROUND
On May 16, 2002, ICG Telecom Group, Inc. (“ICG” or “Company”) filed an Application to amend its current Certificate of Public Convenience and Necessity. In Case No. GNR-T-98-9, the Commission 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 to provide such services statewide.

DISCUSSION
ICG is incorporated in the State of Delaware and is headquartered in Englewood, Colorado. The Company obtained a Certificate of Authority from the Idaho Secretary of State on November 17, 1997. ICG does not maintain an office in Idaho but does have a registered in-state agent. Staff found no complaints against ICG registered with this Commission.
ICG states that it intends to initially expand into the service area of Farmers Mutual Telephone Company to offer service to, among others, Internet service providers who currently do not have points of presence in many of Idaho’s exchange areas. Its 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.
The Company intends to deploy an independent network by either building its own facilities or leasing the facilities of other carriers. ICG does not seek to interconnect with those companies that possess an exemption under Section 251(f) of the federal Telecommunications Act at this time. ICG has an interconnection agreement with Qwest (Case No. QWE-T-02-03) and has obtained eight prefixes throughout Qwest’s southern Idaho service territory. The Company has assured Staff that it will participate in thousand-block number pooling in Idaho when it begins in August 2002.
In its Application, ICG maintains that it is financially qualified to provide telecommunications services in Idaho. ICG Communications, LLC will continue to rely on the financial resources of its parent company, ICG Communications, Inc., and submitted a SEC Form 10-K report for its parent company for the fiscal year ending December 31, 2001. However, on December 29, 2001 ICG Communications, Inc., the parent company of ICG, filed a Plan of Reorganization with the U.S. Bankruptcy Court for the District of Delaware. Approved by the Court on May 20, 2002, the plan left ICG’s parent company with approximately $100 million in cash, $248 million in debt, and eliminated about $2.5 billion in liabilities.
The Company agrees to continue complying with Commission rules regarding advanced deposits, consumer relations, and all other Commission rules and regulations.
Staff has reviewed the Application and financials submitted by ICG. Staff believes the Company understands and agrees to comply with the Commission’s Rules and requirements. Staff considered requiring a surety bond of ICG but, based on the results of its reorganization plan and its operating history in Idaho, concluded a bond would not be necessary in this case.

STAFF RECOMMENDATION
Based on Staff's review of ICG Communications, LLC's Application, Staff believes the Company's filing satisfies the requirements of the Commission’s Rules and Procedural Order No. 26665. Staff recommends approval of the Application for an amendment to its existing Certificate of Public Convenience and Necessity to allow the Company to provide telecommunications services statewide.

Respectively submitted this day of June 2002.

___________________________________
Lisa D. Nordstrom
Deputy Attorney General

Technical Staff: Doug Cooley

i:umisc:comments/icgt02.1lndc

STAFF COMMENTS 1 JUNE 19, 2002