20150428Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
IN THE MATTER OF TALK AMERICA
SERVICES, LLC'S APPLICATION FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY TO PROVIDE RESOLD
LOCAL EXCHANGE AND INTEREXCHANGE
SERVICES.
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. TAL-T.14.01
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Daphne Huang, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 33268, submits the following
comments.
BACKGROUND
On September 19, 2014, Talk America Services, LLC (Talk America) applied to the
Commission for a Certificate of Public Convenience and Necessity (CPCN) authorizing it to
provide resold local exchange and interexchange telecommunications services in Idaho. On
April 8, 2014, the Commission issued Order No. 33268 seeking public input on the Application
and ordered that the case be processed under the Commission's Rules of Modified Procedure.
Talk America is a Delaware limited liability company, authorized to do business in
Idaho. Its principal place of business is in Little Rock, Arkansas. Talk America is a subsidiary
STAFF COMMENTS APRIL 28,2015
of Communications Sales & Leasing, Inc. (CSL), a Maryland corporation, which is also Talk
America's sole member.
STAFF REVIEW
Talk America plans to "provide resold local exchange, resold interexchange and
broadband telecommunications services to residential customers" currently subscribed to
Windstream Holdings, Inc.
Talk America's Application is part of or related to a corporate transaction involving
Windstream and CSL. During Staff s review, the Company filed three supplemental corporate
transactions. Staff contacted Windstream concerning all the changes with the transactions, and
in response, Staff received a flow chart of the reorgarization as well as a detailed response
explaining that Talk America Services, LLC intends to exclusively provide services to residential
customers of the Windstream operating companies in Idaho and other states. Windstream
operating subsidiaries will continue to provide telecommunications services to business and
other non-residential customers.
Windstream will divide into an operating unit (providing telecommunications and related
services), and a real estate investment trust (holding title to distribution plant assets). The
investment trust's assets, which include copper, fiber, and real estate assets, will be transferred to
CSL which will then lease the assets back to Windstream on a long-term basis.
Talk America seeks authority to provide local exchange services, and intends to provide
interexchange services to and from all points in the State of ldaho. Talk America does not intend
to construct any new facilities in Idaho at this time. Its network "will consist of leased facilities
provided by other carriers." Talk America intends to "provide services at the same rates and
under the same terms and conditions" as they are currently provided by Windstream.
Exhibit A to the Application describes Talk America's management team's background
and experience. Talk America's financial information was provided in Exhibit D and appears to
be financially sound.
Talk America has agreed to comply with all applicable Idaho laws and Commission rules
and regulations. The Company also indicated that it will not collect deposits and will therefore
not need to establish an Escrow account per Commission Order No. 26665.
STAFF COMMENTS APRIL 28,2015
STAFF RECOMMENI}ATION
Staffbelieves that Talk America has fulfilled all the requirements for a Certificate of
Public Convenience and Necessity. Staff recommends approval.
Respecttully submitted this ?-W day of April 2015.
Technical Staff: Carolee Hall
i:umisc/eommcnts/taltl4.l djhch commcntg
STAFF COMMENTS APRIL 28,2015
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 28TH DAY OF APRIL 2015,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. TAL-T-l4-OI, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
JEAN L KIDDOO
RUSSELL M BLAU
JEFFREY R STRENKOWSKI
BINGHAM MoCUTCHEN LLP
2O2O K STREET NW
WASHINGTON DC 20006
Email: [e-mail]
russell.blau@bingham. com
j effrey. [e-mail]
JEFFERY W SMALL SR VP
CORP DEVELOPMENT
TALK AMERICA SERVICES
4OO1 N RODNEY PARHAM RD
LITTLE ROCK AR722I2
Email: [e-mail]
SECRETARY
CERTIFICATE OF SERVICE