28576.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF TIME WARNER TELECOM OF IDAHO LLC. FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO PROVIDE COMPETITIVE TELECOMMUNICATIONS SERVICES.
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CASE NO. TWT-T-00-1

ORDER NO. 28576
On October 2, 2000, Time Warner Telecom of Idaho LLC (“Time Warner”) filed an Application for a Certificate of Public Convenience and Necessity to operate as a provider of facilities-based basic local exchange telecommunications services within the state of Idaho. On October 18, 2000, the Commission issued a Notice of Application and Notice of Modified Procedure which required all written comments to be filed by the parties on or before November 1, 2000. Order No. 28546. The Commission Staff was the only party to file written comments.
In its Application Time Warner acknowledged the Commission’s requirement that companies requiring advance deposits from their customers had to establish an escrow account. See Commission Order No. 26665. Thus, the Company stated that because it would require advance deposits from some of its customers it was in the process of establishing an escrow account. On November 9, 2000, the Commission issued Order No. 28564, which granted Time Warner a Certificate subject to the establishment of this account.
On November 17, 2000, Time Warner filed a Petition for Reconsideration requesting that the escrow account requirement be waived because of its strong financial position resulting from its relationship with Time Warner Telecom Inc., its parent company. Accordingly, Time Warner requests that the Commission amend Order No. 28564 to omit this requirement for the issuance of a Certificate.
STAFF RECOMMENDATION
As a newly formed organization, Time Warner does not have financial statements for the previous year. Time Warner relies on the financial resources of Time Warner Telecom, Inc., the Applicant’s parent company, to fund its operations in Idaho. Through its relationship with its parent company, Time Warner Telecom, Inc. (a publicly-traded corporation whose largest shareholder is Time Warner, Inc.), Time Warner has access to the financing and capital necessary to conduct its telecommunications operations as specified in its Application. Time Warner’s most recently filed SEC statements show Time Warner Telecom, Inc. to be a corporation with more than $1 billion in assets and a favorable debt-equity ratio.
Based on this relationship, Time Warner clearly has significant resources to support its operations in Idaho. Furthermore, Staff finds that these resources will be sufficient to adequately protect the interests of its customers. Accordingly, Staff recommends that the Commission amend Order No. 28564 to omit the requirement that Time Warner Telecom of Idaho, LLC be required to establish an escrow account or post a surety bond as a condition of the granting of a Certificate of Public Convenience and Necessity to provide local service throughout the state of Idaho.
COMMISSION CONCLUSION
Based on the foregoing the Commission will amend Order No. 28564 to omit the requirement that Time Warner provide evidence of an escrow account as a condition of the granting of a Certificate of Public Convenience and Necessity.
O R D E R
IT IS HEREBY ORDERED that Commission Order No. 28564 shall be amended to omit the requirement that Time Warner Telecom of Idaho LLC provide evidence the establishment of an escrow account as a condition of the granting of a Certificate of Public Convenience and Necessity.
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. TWT-T-00-1 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. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code §§ 61626 and 62-619.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this day of November 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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Office of the Secretary
Service Date
November 30, 2000