20050624Final Order No 29808.pdf

Office of the Secretary
Service Date
June 24, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
TAMARACK VIDEO & TELECOM LLC FOR A
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY TO PROVIDE F ACILITIES- )BASED LOCAL EXCHANGE.
CASE NO. TAM-05-
ORDER NO. 29808
On March 15, 2005 , Tamarack Video & Telecom LLC filed an Application for a
Certificate of Public Convenience and Necessity (CPCN) to provide facilities-based local
exchange telecommunications services in the State of Idaho. Tamarack filed an Amended
Application on April 15, 2005. On May 12 2005, the Commission solicited comments regarding
the Company s Application. See Order No. 29783. Comments were filed by the Commission
Staff and two members of the public. The Commission Staff and one private individual
supported the Application; the remaining individual opposed both the Application and the
Commission s use of Modified Procedure. After reviewing the Application and comments, the
Commission approves the Application.
THE APPLICATION
Tamarack Video & Telecom is an Idaho limited liability company with a corporate
office and registered agent located in Boise, Idaho. Tamarack Video & Telecom is wholly-
owned by Tamarack Resort, LLC.
The Application requests authority to offer
telecommunications services in Adams and Valley County.
facilities-based local exchange
Nonetheless, Tamarack Video &
Telecom initially plans to provide telecommunications services exclusively to residential and
commercial customers at the Tamarack Resort in Valley County, Idaho.
The Application indicates that the Company will compete primarily with the
incumbent local exchange carrier, Frontier. However, Frontier does not currently have an
interconnection agreement with the Company and has no facilities at the Tamarack Resort.
ORDER NO. 29808
CO MMENTS
Comments from the Public
On May 19, 2005, a private citizen filed the first comment in this case. This
comment supports the Application under the assumption that the Company s service offering
will provide necessary competition to Frontier.
On May 31 , 2005, Matthew Castrigno, a private citizen who owns a home in the
Tamarack Resort, filed a comment in opposition to both the Company s filing and the
Commission s use of Modified Procedure. Mr. Castrigno s comments highlight a number of
problems associated with Tamarack Video & Telecom s Application and service offerings. Mr.
Castrigno expressed concerns regarding: the Company offering local exchange service prior to
obtaining a license; the characterization of the Company as a competitive carrier; the
characterization of the services provided as Voice Over Internet Protocol (VoIP); the inability of
the Company to provide precise location information through its 911 service; and the required
use of a proprietary phone.
Staff Comments
On June 2, 2005, the Commission Staff filed comments in support of the Application.
Staff supports the Application on the basis that the Company has met all CPCN requirements and
the Illustrative Price List complies with the Commission s Rules and the Idaho Code.
Staff reviews all requests for a CPCN certificate pursuant to Idaho Code ~~ 61-526
through -528 , IDAPA 31.01.01.111 and 112 (Rules 111 and 112), and Procedural Order No.
26665. In order to be issued a CPCN, a public utility must provide the Commission with the
following information: (1) name, address, and form of business; (2) the date on which the
applicant proposes to begin construction or anticipates that it will provide service, including a
written description of customer classes and services proposed to be offered; (3) the proposed
service territory; (4) certain financial information; (5) maps regarding the proposed service area;
(6) a proposed initial tariff and price sheets; (7) contact information; (8) interconnection
agreements if any; (9) an agreement to comply with the Commission s Rules; and (10) an escrow
account with a bonded escrow agent if the company requires advanced deposits from its
customers. Order No. 26665.
Through its review of the Application and numerous discussions with the Company,
Staff determined the Company s filing complies with the requirements of the Commission. Staff
ORDER NO. 29808
believes that the Company understands and agrees to comply with the Commission rules and
requirements. Staff further believes that the Company possesses the requisite financial
managerial and technical qualifications necessary to operate as provider of
telecommunications services. Therefore, based on its review of the Application, Commission
Staff recommends approval of the Application for a Certificate.
In addition, after reviewing the other comments filed in this case, Staff determined
that the comments did not raise a material issue with regard to the Application. Recognizing that
there have been some consumer complaints associated with the Company s service offering and
that the Company initially provided local telephone service without a CPCN, Staff nonetheless
believes that the Company has been very responsive to these concerns and has worked hard to
meet all regulatory requirements.
COMMISSION FINDINGS
Based upon our review of the filing and the record in this case, the Commission finds
that Tamarack Video & Telecom s filing satisfies the requirements of the Commission s Rules
and Procedural Order No. 26665. Therefore, even though we sympathize with the concerns
expressed by Mr. Castrigno we approve Tamarack Video & Telecom s Application for a
Certificate of Public Convenience and Necessity to allow the company to provide
telecommunications services in Adams and Valley County.
The Commission finds that the failure of Tamarack Video & Telecom to apply for a
CPCN before service was offered was the result of a misunderstanding between the Company
and Commission Staff regarding the service Tamarack Video & Telecom would be providing
and not the result of willful avoidance. In addition, the Commission notes that there is no actual
facilities-based competition in local telephone service within the Tamarack Resort because
Frontier lacks both the facilities and an interconnection agreement with Tamarack Video &
Telecom. Finally, while the local service offering appears to be at very high rates, we have no
ratemaking jurisdiction over Tamarack Video & Telecom, a competitive carrier under federal
and state telecommunications law.
ORDER
IT IS HEREBY ORDERED that the Application of Tamarack Video & Telecom for
a Certificate of Public Convenience and Necessity is granted to enable the Company to provide
resold local exchange and interexchange services in Valley and Adams County.
ORDER NO. 29808
THIS IS A FINAL ORDER. Any person interested in the Order 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. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~~ 61-
626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d-. if fA
day of June 2005.
J~-
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je . Jewell
Commission Secretary
ORDER NO. 29808