20240816Staff Supplemental Comments.pdf

RECEIVED
Friday, August 16, 2024 11:11:55 AM
IDAHO PUBLIC
UTILITIES COMMISSION
MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11714
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TRUCONNECT )
COMMUNICATIONS,INC.'S APPLICATION ) CASE NO. TCC-T-24-01
FOR DESIGNATION AS AN ELIGIBLE )
TELECOMMUNICATIONS CARRIER )
SUPPLEMENTAL COMMENTS
OF THE COMMISSION STAFF
On March 4, 2024, TruConnect Communications, Inc. ("Company") applied to the Idaho
Public Utilities Commission ("Commission") for designation as an Eligible Telecommunications
Carrier("ETC") in the State of Idaho. The Company requested designation as an ETC for the sole
purpose of providing Lifeline services. The Company asked that it be allowed to participate and
receive reimbursement from the Idaho Telephone Service Assistance Program accordingly.
BACKGROUND
On June 20, 2024, the Commission issued a Notice of Application and set deadlines for
public comments and the Company's reply. Order No. 36227.
The Company submitted materials supplementing its Application on July 9, 2024.
Commission Staff("Staff') submitted comments on July 11, 2024. Staff argued that the
Company's request for ETC status should be denied. Among other things, Staff argued that the
SUPPLEMENTAL COMMENTS 1 AUGUST 16, 2024

Company failed to meet the necessary requirements for an ETC to remain functional in an
emergency and promote the public interest.
The Company submitted Reply Comments on July 18,2024. The Company argued that the
items of non-compliance referred to by Staff were not actually requirements for obtaining ETC
status and that the Company met the Commission's requirements for obtaining ETC status.
Therefore, the Company argued it should not be denied ETC status for not abiding by these non-
mandatory items nor for not meeting the Commission's requirements for obtaining ETC status.
Staff reviewed the Company's Reply Comments and believed that Staff s recommendation
was appropriate. However, Staff believed that adding additional documentation and analysis to the
record was necessary. Staff asked that the Commission set new supplemental comment dates at
the Commission's July 30, 2024, decision meeting. The Commission ordered for Supplemental
Comment and Reply Deadlines to be set in Order No. 36284.
STAFF ANALYSIS
As Staff reviewed the Company's filings over the course of this case, Staff became
concerned that the Company was not materially different in its proposed offerings, terms, service
territory, and corporate leadership from Sage Telecom Communications, LLC dba TruConnect
("Sage"). Sage was granted ETC status in Commission Order No. 34314; Case No. SAG-T-19-01.
Sage and the Company are both subsidiaries of TSC Acquisition Corporation("TSC"). Thus, Staff
had concerns about how the public was actually receiving a benefit by the Commission granting
ETC status to a Company that provided no material additional offerings to the market when
compared to Sage—especially given that itself and Sage shared TSC as a parent company.
However, as discussions with the Company have continued, Staff believes that there is a
mutually beneficial path forward in this case. Based upon the Company's assertions to Staff, Staff
believes that the Company and its related entities ultimately intend for Sage's ETC designation to
be used to support a distinct Lifeline brand with differentiated service offerings for consumers and
potentially additional investment resulting in differentiated ownership, or for Sage to undergo
sufficiently material changes to potentially justify TruConnect also being granted ETC status.
However, Staff is not comfortable recommending that the be granted Company ETC status
until the Company's similarities with Sage have been resolved. Therefore, Staff believes that this
case is not ripe. On August 15, 2024, the Company submitted a motion to the Commission
SUPPLEMENTAL COMMENTS 2 AUGUST 16, 2024

requesting a six month stay in this case. Staff believes that this request is responsible and
appropriate. Staff believes that the best path forward is for the parties to maintain correspondence
and recommend a new comment period as soon as the ultimate resolution regarding Sage is known
and verifiable—but within six months or less. If a stay is granted, by or before the end of six
months, Staff anticipates moving the Commission to set comment dates or requesting a resolution
of this case commensurate with the ascertainable facts at that time.
STAFF RECOMMENDATION
Staff recommends that the Commission issue an interlocutory order staying this case for
six months from the issuance of that order.
Respectfully submitted this 16t" day of August 2024.
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Michael Duval
Deputy Attorney General
1:\Legal\TELECOM\TCCT2401\TCCT2401_Supp_Comm_md.doex
SUPPLEMENTAL COMMENTS 3 AUGUST 16, 2024

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS DAY OF AUGUST 2024,
SERVED THE FOREGOING SUPPLEMENTAL COMMENTS OF THE COMMISSION
STAFF, IN CASE NO. TCC-T-24-01, BY E-MAILING A COPY THEREOF TO THE
FOLLOWING:
NATHAN JOHNSON DANIELLE PERRY
TRUCONNECT COMMUN. TRUCONNECT COMMUN.
1149 S HILL ST, STE H-400 1149 S HILL ST, STE H-400
LOS ANGELES CA 90015 LOS ANGELES CA 90015
E-MAIL: njohnson,ctruconnect.com E-MAIL: dperryatruconnect.com
PAT IC A JORDAN,AECRETARY
CERTIFICATE OF SERVICE