answer to recon.doc

JOHN R. HAMMOND
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5470

Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983

Attorney for the Commission Staff

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

COMMISSION STAFF ANSWER TO REQUEST FOR RECONSIDERATION

COMES NOW the Commission Staff of the Idaho Public Utilities Commission (“Commission”), by and through its attorney of record, John R. Hammond, Deputy Attorney General, files this response to the Petition for Reconsideration filed by Time Warner Telecom of Idaho LLC.
BACKGROUND
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 an escrow account.
On November 17, 2000, Time Warner filed a Petition for Reconsideration requesting that that the escrow account requirement be waived because of its parent company’s strong financial status. 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 its relationship with its parent company, Time Warner does have significant resources to rely on. 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.
Dated at Boise, Idaho, this day of November 2000.

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John R. Hammond
Deputy Attorney General

Staff: Birdelle Brown

M:twtt001_jh_recon

COMMISSION STAFF ANSWER TO
REQUEST FOR RECONSIDERATION-2-