HomeMy WebLinkAbout19970715Order No 27046.docBEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF SPRINT COMMUNICATIONS COMPANY LP FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE LOCAL EXCHANGE SERVICE AS A COMPETITIVE LOCAL CARRIER.
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ORDER NO. 27046
On April 25, 1997, the Commission received an Application from Sprint Communications Company, L.P. (Sprint) for a Certificate of Public Convenience and Necessity (Certificate) to provide local exchange service as a competitive local carrier. On November 7, 1996, the Commission issued Procedural Order No. 26665 that set out the necessary information to be included with an application for a Certificate by a new local telecommunications provider. On May 13, 1997, the Commission issued a Notice of Application and Notice of Modified Procedure seeking comments on Sprints Application. Upon reviewing the record before us, including the Application, the written comments and the requirements outlined in Order No. 26665, we approve Sprints Application for a Certificate to provide local service in U S WESTs and GTEs service territories.
DISCUSSION
Currently, Sprint is authorized to provide telecommunications services pursuant to Title 62 of the Idaho Code. The Application indicates that Sprint is seeking to obtain a Certificate to provide Title 61 regulated telecommunications services, including basic local exchange service. The Application states that Sprint plans to provide residential and business services and other services to all classes of customers in Idaho throughout the service area of U S WEST and GTE.
On May 13, 1997, the Commission issued a Notice of Application and Notice of Modified Procedure seeking comments on the Application. On June 3, 1997, the Commission Staff filed comments in this case. Staff indicates that it reviewed the information provided by Sprint with its Application and finds that overall it meets the requirements of Commission Order No. 26665, however, Staff notes Sprint has requested a waiver of the escrow account requirements for customer deposits.
Procedural Order No. 26665 Rule 11 requires that an escrow account for advanced deposits must be established. A signed copy of an escrow account with a bonded escrow agent must be created if a company requires advanced deposits by its customers. The purpose of an escrow account is to assure good faith and the financial ability of the applicant as required in Idaho Code 61-528. Individual requirements pertaining to escrow accounts will be evaluated and considered by the Commission upon good showing by the company for a period of two years.
Sprint has requested that in lieu of establishing an escrow account, the Commission authorize it to post a surety bond in the amount of $10,000 as a guarantee of customer deposits, prior to Sprints actual entry into the local exchange market. Sprint believes a surety bond would provide its customers with the comparable assurance that customer deposits are financially protected but would be much less expensive to initiate and maintain. Commission Staff believes that its waiver request for the escrow account is reasonable and recommended approval.
Commission Findings
Based on our review of the record, we find that Sprints Application and supplemental filings comply with Procedural Order No. 26665 and the Commissions Rules to obtain a Certificate to be a local service provider in Idaho. We further find that Sprints request for a waiver of the escrow account is reasonable upon the condition of the posting of a surety bond in the amount of $10,000 as a guarantee of customer deposits prior to Sprints actual entry into the local exchange market.
We approve Sprints Application for a Certificate of Public Convenience and Necessity to provide local exchange service in U S WESTs service area and GTEs service area as well as a waiver from the escrow account in lieu of posting of a surety bond.
O R D E R
IT IS HEREBY ORDERED that Sprint Communications Company, L.P. is granted a Certificate of Public Convenience and Necessity to provide local telecommunications services in U S WESTs and GTEs service area.
IT IS FURTHER ORDERED that Sprints request for a waiver from the escrow account requirement contained in Order No. 26665 be granted upon the condition of the posting of a surety bond in the amount of $10,000 as a guarantee of customer deposits prior to Sprints actual entry into the local exchange market.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally decided by this Order) or in interlocutory Orders previously issued in this Case No. SPR-T-97-2 may petition for reconsideration within twenty-one (21) days of the service date of this Order with regard to any matter decided in this Order or in interlocutory Orders previously issued in this Case No. SPR-T-97-2 . Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 61 626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this day of July 1997.
DENNIS S. HANSEN, PRESIDENT
RALPH NELSON, COMMISSIONER
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Myrna J. Walters
Commission Secretary
cm\O:sprt972.sh
ORDER NO. 27046 -1-
Office of the Secretary
Service Date
July 15, 1997