10262001_ltr.doc

October 26, 2001

William Braun
Vice-President and General Counsel
1-800-RECONEX, Inc.
2500 Industrial Ave.
Hubbard, OR 97032

Re: 1-800-RECONEX, Inc. and Choctaw Communications, Inc.; Case No. REC-T-01-1

Dear Mr. Braun,

On September 17, 2001, the Commission received from1-800-RECONEX, Inc. notice that it intended to acquire Choctaw Communications, Inc. The Commission Staff has reviewed the confidential financials submitted on October 9, 2001 and your accompanying description of the proposed acquisition of Choctaw Communications, Inc.

There is not a specific statute setting out the standards for the Idaho Public Utilities Commission to review mergers and acquisitions of public utilities, with the exception of Idaho Code § 61-328 dealing exclusively with electric utilities. In these cases, the amount of scrutiny employed by the Commission depends upon the structure of the transaction.

Where Certificates of Public Convenience and Necessity (CPCN) are proposed to be transferred, the transactions are generally reviewed under the Commission's standards for issuing CPCNs, Idaho Code §§ 61-526 through -528. In the case of 1-800-RECONEX and Choctaw Communications, both companies hold a CPCN in Idaho. You have indicated that Choctaw will be operated as a wholly owned subsidiary, that there currently are no Choctaw customers in Idaho, and that Choctaw will continue as an operating entity under its approved Idaho tariff.

Given these circumstances, the Idaho Public Utilities Commission will not conduct a further review of the proposed transaction.

Thank you for your cooperation in this matter and please feel free to contact me if you have any questions.

Sincerely,

Weldon B. Stutzman
Deputy Attorney General

cc: Doug Cooley