20200928Show_Cause_Order_No_34787.pdf

ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34787 1

Office of the Secretary
Service Date
September 28, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF OPTIX MEDIA,
L.L.C.’S ELIGIBILITY TO HOLD
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY NO. 504
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CASE NO. OML-T-20-01

ORDER TO SHOW CAUSE

NOTICE OF HEARING

ORDER NO. 34787

Optix Media, L.L.C. (“Company”) holds Certificate of Public Convenience and
Necessity (“CPCN”) No. 504. This matter comes before the Commission due to the Company’s
failure to provide evidence to Commission Staff that it is providing basic local exchange service.
See Idaho Code § 62-605(5)(b).
BACKGROUND
The Commission has noneconomic regulatory authority over telephone corporations
that provide basic local exchange service1 in Idaho. See Idaho Code § 62-605(5)(b). A provider of
basic local exchange service must apply to the Commission for a CPCN. See Order No. 26665.
A CPCN can be valuable to a telephone corporation. Idaho Code grants telephone
corporations broad access to rights of way along public roads and highways, and a provider that
holds a CPCN issued by the Commission is generally presumed to be a telephone corporation by
governmental entities granting right-of-way access. See Idaho Code § 62-701. Telephone
corporations that do not provide basic local exchange service are ineligible for a CPCN because
the Commission has almost no regulatory authority over them. See Order Nos. 26665 at 1, and
32059 at 2-3.
The Commission issued the Company CPCN No. 504 in April 2012 subject to several
conditions. One of these conditions (“condition 4”) was that the Company would “relinquish its
[CPCN] and all telephone numbers if, within one year of issuance of a CPCN, the Company is not
providing local exchange telecommunications services in Idaho as defined by Idaho Code §
620603(1).” Order No. 32516 at 2.

1 Basic local exchange service means the provision of access lines to residential and small business customers with
the associated transmission of two-way interactive switched voice communication within a local exchange calling
area. Idaho Code § 62-603(1).

ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34787 2

In a September 9, 2020 decision memorandum, Staff asserted that the Company has
failed to provide Staff with evidence that the Company provides basic local exchange service. Staff
alleged it sent a letter to the Company on June 4, 2019, requesting the Company provide evidence
that it is a provider of basic local exchange service. Staff alleged that it spoke with a Company
representative by phone in August 2019 and confirmed the letter had been received by the
Company. See Klein Aff. at 2, Exhibit A. But the Company never provided the requested evidence.
Id.
STATUTORY AUTHORITY
The Commission has jurisdiction in this matter under Idaho Code § 61-501, which vests
the Commission with the authority and jurisdiction to supervise and regulate every public utility
in the state. Idaho Code § 62-605(5)(b) gives the Commission “continuing authority to determine
the noneconomic regulatory requirements relating to basic local exchange service for all telephone
corporations providing basic local exchange service….” The Commission expressly established
the Title 62 telephone corporation certification process only for telephone corporations providing
basic local exchange service. See Order No. 26665.
Further, under Idaho Code § 61-624, the “[C]omission may at any time, upon notice to
the public utility affected, and after opportunity to be heard as provided in the case of complainants,
rescind, alter[,] or amend any order or decision made by it,” including an order granting a CPCN
to a telephone corporation. See Idaho Code §§ 61-612 to 61-618.
CLAIM
1. Violation of Commission Order No. 26665
Consistent with Title 62 and this Commission’s established practices, telephone
corporations that do not provide basic local exchange service are ineligible for a CPCN. See Order
No. 26665. Commission Staff have documented efforts made to confirm whether the Company is
providing such service.2 Staff sent a letter to the Company directing it to “provide evidence that
[the Company] is providing basic local exchange services…or provide evidence that [the
Company] is preparing to provide such services.” Klein Aff. at 1. Staff later spoke with a Company

2 The Commission’s employees are agents of the three-member Commission, tasked with performing the duties and
exercising the powers conferred by law on the Commission. Idaho Code § 61-206.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34787 3

representative who confirmed receipt of the letter. Id. at 2. Staff never received the requested
evidence. Id.
2. Violation of Commission Order No. 32516
Order No. 32516 requires the Company to “relinquish its [CPCN] and all telephone
numbers if, within one year of issuance of a CPCN, the Company is not providing local exchange
telecommunications service in Idaho as defined by Idaho Code § 62-603(1).” The Company’s
failure to respond to Staff’s June 4, 2019 letter raises the question whether the Company has been
providing basic local exchange service. See Klein Aff. at 2. If it has not, the Company violated
condition 4 of Order No. 32516.
ORDER
Based on the evidence before the Commission, and good cause appearing, IT IS
HEREBY ORDERED that the Company shall appear before the Commission on TUESDAY,
OCTOBER 20, 2020, AT 10:30 AM (MDT), to show cause:
a. Why the Commission should not find the Company violated condition 4 of Order No.
32516;
b. Why the Commission should not find the Company violated the CPCN eligibility
requirements in Order No. 26665; and
c. Why the Commission should not rescind Order No. 32516 pursuant to Idaho Code § 61-
624 based on the Company’s failure to meet the Commission’s prescribed conditions for
CPCN issuance, thereby revoking the Company’s CPCN.
The Company may appear before the Commission in person or telephonically. Interested persons
can call 1-800-920-7487 shortly before the designated time and enter the passcode 6674832# when
prompted.
IT IS FURTHER ORDERED that the telephonic hearing will meet accessibility
requirements of the Americans with Disabilities Act. Persons needing the help of a sign language
interpreter or other assistance in order to participate in or to understand testimony at a public
hearing may ask the Commission to provide a sign language interpreter or other assistance at the
hearing. The request for assistance must be received at least five working days before the hearing
by contacting the Commission Secretary at:
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ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34787 4

IDAHO PUBLIC UTILITIES COMMISSION
P.O. BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
[e-mail]
IT IS FURTHER ORDERED that all proceedings in this matter will be conducted
pursuant to Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA
31.01.01.000 et seq.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order to Show
Cause by Certified Mail (return receipt requested) upon the person designated to receive Notices
of Summonses and Complaints (IDAPA 31.01.01.016) and upon the person designated by the
utility to receive legal service in Idaho. Idaho Code § 61-615.
IT IS FURTHER ORDERED that parties should continue to comply with Order No.
34781, issued September 17, 2020. All pleadings should be filed with the Commission
electronically and shall be deemed timely filed when received by the Commission Secretary. See
Rule 14.02. Service between parties should also be accomplished electronically. Voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
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ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 34787 5

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 28th
day of September 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\TELEPHONE\OML-T-20-01\OMLT2001_Show_Cause_Ntc_mh.docx

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MAflER OF OFHX MEDIA,
L.LC.’S ELIGIBILITY TO HOLD )CASE NO.OML-T-20-0I
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY NO.504 )AFFIDAVIT OF DANIEL KLEIN
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DANIEL KLEIN,being duly sworn,stated:
I.My name is Daniel Klein.I have personal knowledge of the facts stated in this affidavit.
2.1 am a Utility Analyst at the Idaho Public Utilities Commission.I started working in
this position in 2017.1 am responsible for reviewing telecom tariff filings,requests for telecom
Certificates of Public Convenience and Necessity,requests for Eligible Telecommunications
Carrier status,broadband tax credit filings,and other telecom-related items.
3.In Order No.32516,the granting of Optix Media,L.L.C.’s CPCN was conditioned upon
the following:“Optix Media agrees to relinquish its [CPCNI and all telephone numbers if,within
one year of issuance of a CPCN,the Company is not providing local exchange telecommunications
service in Idaho as defined by Idaho Code §62-603(l).”In the spring of 2019,my colleague
Carolee Hall informed me that she suspected Optix Media was no providing basic Local exchange
service.Ms.Hall,now retired,was a Utility Analyst at the time.
4.On June 4,2019,1 sent a letter to the Company’s registered agent,Timothy May,at 150
South Main Street,Rockland,Idaho,83271.The letter directed the Company to provide
Commission Staff with evidence that the Company was providing basic local exchange service.
The letter also informed the Company that “if the requested information is not provided by July 2,
2019.Commission Staff will request that the Commission cancel [the Companyl’s CPCN.”
5.In August 2019,I spoke by phone with a representative of the Company who confirmed
receipt of the June 4,201 9 letter.
Exhibit A to
Order No.34787
AFFIDAVIT OF DANIEL KLEIN 1 Page 1 of 2
service.
6.To date,the Company has not provided evidence that it provides basic local exchange
Dated this 2.3 day of September 2020.(4 j
Daniel Klein ‘
Utility Analyst
Idaho Public Utilities Commission
SUBSCRIBED AND SWORN to before me this 2Sdday of September 2020.
%fl w
UNotaryPublic for Idaho
My commission expires on March 15,2025
Exhibit A to
Order No.347117
Page 2 of 2AFFIDAVITOFDANIELKLEIN7