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HomeMy WebLinkAbout20260319APPLICATION.pdf CTB-T-26-01 Cynthia A. Melillo PLLC CUS-T-26-01 8385 W. Emerald Street RECEIVED Boise, Idaho 83704 March 19, 2026 IDAHO PUBLIC (208)-577-5747 UTILITIES COMMISSION cam(a�camlawidaho.com March 19, 2026 VIA Electronic Mail Monica Barrios-Sanchez, Commission Secretary Idaho Public Utilities Commission 11331 W. Chinden Blvd. Building 8, Suite 201-A Boise, ID 83714 P.O. Box 83720 Boise, ID 83720-0074 Re: Custer Telephone Cooperative, Inc. and Custer Telephone Broadband Services LLC - Joint Application for Approval of Merger Dear Ms. Barrios-Sanchez: Enclosed for filing, please find a copy of Custer Telephone Cooperative, Inc. and Custer Telephone Broadband Services LLC's Joint Application for Approval of Merger, Consolidation of Certificates of Public Convenience and Necessity and Eligible Telecommunications Carriers. I have not sent a hard copy so please let me know if you will require that prior to opening the case. If you have any questions or need any additional information, please feel free to contact me. Sincerely, ��� *t Cynthia A. Melillo CAM/ Enclosure Cc: JD Bennetts (via electronic mail) Shelly Helm (via electronic mail) CYNTHIA A. MELILLO (ISB # 5819) Cynthia A. Melillo PLLC 8385 W. Emerald Street Boise, Idaho 83704 Telephone: 208.577.5747 Fax: 208.361.3441 E-mail: cam a(D.camlawidaho.com Attorney for Custer Telephone Broadband Services LLC and Custer Telephone Cooperative, Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION, JOINT APPLICATION OF CUSTER ) TELEPHONE BROADBAND SERVICES ) LLC AND CUSTER TELEPHONE ) Case No. COOPERATIVE, INC. FOR APPROVAL ) OF MERGER, CONSOLIDATION OF ) CERTIFICATES OF PUBLIC ) CONVENIENCE AND NECESSITY AND ) ELIGIBLE TELECOMMUNICATIONS ) CARRIERS JOINT APPLICATION OF CUSTER TELEPHONE BROADBAND SERVICES LLC AND CUSTER TELEPHONE COOPERATIVE, INC. FOR APPROVAL OF MERGER, CONSOLIDATION OF CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY AND ELIGIBLE TELECOMMUNICATIONS CARRIERS Custer Telephone Broadband Services LLC("CTBS")and Custer Telephone Cooperative, Inc. ("CTCI" and collectively with CTBS, "Applicant"), by and through their undersigned attorney, hereby submits to the Idaho Public Utilities Commission (the "Commission") this Joint Application for Approval of Merger, Consolidation of Certificates of Public Convenience and Necessity and Eligible Telecommunications Carriers ("Merger") pursuant to IDAPA 31.01.01.111 through 114.. All correspondence, communications, pleadings, notices, orders and decisions relating to CTBS CTCI Joint Application for Approval of Merger- 1 this Application should be addressed as follows: Cynthia A. Melillo Cynthia A. Melillo PLLC 8385 W. Emerald Street Boise, Idaho 83704 Telephone: 208-577-5747 Email: 3mlawidaho.com JD Bennetts Custer Telephone Cooperative, Inc. P.O. Box 324 Challis, ID 83226 Telephone: (208) 879-2281 Email: Id.bennettsO-custertel.com I. BACKGROUND A. Company Overview CTCI is a mutual, non-profit telephone corporation organized under the laws of the State of Idaho and exempt from most regulations of the Commission. CTCI's principle place of business is located at 1101 E. Main Avenue, Challis, Idaho 83226, and it maintains central offices in Challis, May, Elk Bend and Clayton, Idaho. CTCI provides basic local exchange telecommunications services, MTS, WATS, access services to inter-exchange carriers, special access services, broadband and other telecommunications services that its customers may from time-to-time request or require. On May 16, 1989,the Commission issued Order No.22519,grantingCTCI's application for a certificate for an exclusive service area for telecommunications service pursuant to Idaho Code 62-615 (since amended), and simultaneously issued CTCI Certificate No. 308, as amended. The Commission has also designated CTCI as an Eligible Telecommunications Carrier for low-income support. CTBS is an Idaho limited liability company, with a principal place of business located at 1101 E. Main Avenue, Challis, Idaho 83226. CTBS is a full-service wireline carrier that provides facilities-based, locate exchange services and broadband services. The Commission issued a Certificate of Public Convenience and Necessity(Certificate No. 501)authorizing CTBS to provide local exchange and interexchange services within the State of Idaho in Case No. CTB-T-11-01, Order No. 32383, dated April 1, 2014. The Commission further designated CTBS as an Eligible Telecommunications Carrier for low-income support in Case No. CTB-T-14-01, Order No. 33002, CTBS CTCI Joint Application for Approval of Merger—2 in the Salmon, Idaho exchange area. CTBS was initially formed as a wholly owned subsidiary of CTCI to purchase cable TV franchises in the Salmon, Idaho area. As this was outside the primary purposes of CTCI to provide voice services, the board of directors of CTCI felt it best to form a separate entity for regulatory purposes. Over time, CTBS began to provide voice and data services and stopped providing cable TV services. In addition, as the industry evolved, CTCI began to provide data services. At this time, CTCI and CTBS provide the same or similar services to customers in adjacent territories. The original rationale for operating CTBS as a separate subsidiary is no longer a concern to CTCI, and CTCI desires to merge CTBS into CTCI with CTCI as the surviving entity. CTCI and CTBS assert that combining the two entities will result in some cost savings from the elimination of duplicative functions such as separate books and records. Second, the merger will eliminate "the regulatory cost" associated with allocating joint and common costs between the two companies. Finally, the customers of CTBS will become customers of CTCI and as such will benefit by becoming members of the cooperative eligible for patronage. Operation and control of the two companies will not change because the officers of both entities are identical. B. CTBS and CTCI Approval of the Merger The members of CTCI, at a meeting duly held on the 26th day of March 2025, approved the merger of CTBS into CTCI with CTCI as the surviving company. The sole member and managers of CTBS, at a meeting duly held on the 26th day of March 2025, approved the merger of CTBS into CTCI with CTCI as the surviving company. II. THE MERGER. The merger of the two entities meets all statutory requirements under Idaho law for the merger of a limited liability company into a corporation. Upon the effective date of the merger, CTBS will cease to exist as a separate entity. The governing documents of CTCI shall govern the merged entities. The customers of CTBS will become customers of CTCI and as such will become non-voting members of CTCI, eligible to receive patronage from CTCI in the same manner as the current members of CTCI. The merger will become effective upon filing Articles of Merger with the Idaho Secretary of State. The Articles of Merger will be filed after receiving final approval of this Commission, and upon transfer of CTBS's FCC radio licenses for Call Sign/Lease IDs WRLL640, WRLL641 and WRLL642, and upon any approvals required by the CTBS CTCI Joint Application for Approval of Merger—3 Rural Utilities Service and CoBank, ACB, lenders of CTCI. III. CONSOLIDATION OF CTBS'S CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY WITH CTCI'S CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY CTCI intends to continue to provide local exchange services throughout the service area of CTBS as set forth in CTBS's Certificate of Public Convenience and Necessity (Certificate No. 501). As such, CTCI respectfully requests that such Certificate be transferred to CTCI or a new certificate issued to consolidate CTCI's current service territory under Certificate No. 308. As amended, with the service territory of CTBS under Certificate No. 501. CTCI will continue to offer the services in the service area at the rates set forth in CTBS's price list on file with the Commission. Because CTCI currently holds a CPCN from the Commission, the Commission has all information regarding CTCI required for the issuance of a CPCN. A current certificate of good standing is attached hereto as Exhibit A. The current officers and directors of CTCI are as follows: Name Address Position William C. Ebberts PO Box 324 President Challis, ID 83226-0324 Kenneth Crisp PO Box 324 Secretary Challis, ID 83226-0324 Gary Ingram PO Box 324 Vice President Challis, ID 83226-0324 Hubert Miller PO Box 324 Director Challis, ID 83226-0324 Jim Martiny PO Box 324 Director Challis, ID 83226-0324 Monte Severe PO Box 324 Director Challis, ID 83226-0324 Bruce Brunp PO Box 324 Director Challis, ID 83226-0324 CTBS CTCI Joint Application for Approval of Merger—4 IV. CONSOLIDATION OF CTBS'S ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION WITH CTCPS ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION. CTCI intends to continue to provide all supported services throughout the Salmon, Idaho exchange area as set forth in Order No. 33002, granting ETC status to CTBS. As such, CTCI respectfully requests that CTCI's ETC service area be extended to include the Salmon, Idaho exchange. Because CTCI has been designated an ETC by the Commission, the Commission has all information regarding CTCI required for the Commission to designate CTCI an Eligible Telecommunications Carrier. CTCI has previously provided evidence to the Commission that CTCI (i) is a common carrier,' (ii) offers services that are supported by federal universal support mechanisms;2 (iii) will use its own facilities, in whole or in part, to provide the supported services;3 (iv) will provide the supported services throughout its Designated Service Area;4 (v) will advertise the availability of such services using media of general distribution;5 (vi)will make Lifeline service available to qualifying low-income consumers;6 (vii) will certify that it will comply with the service requirements applicable to the support that it receives;'(viii)will remain functional in emergency situations;$ (ix)will satisfy consumer protection and service quality standards;'(x)will provide local usage plans comparable to the ILECs already operating in the proposed Designated Service Areas;10(xi)will provide notice to any affected tribal governments or tribal regulatory authorities;" (xii) will comply with all applicable reporting requirements;12 and (xiii) will take steps to limit fraud, waste and abuse of the federal USF.13 147 U.S.C.§214(e)(1);47 C.F.R.§54.201(d). 2 47 U.S.C.§214(e)(1)(A);47 C.F.R.§§54.201(d)(1)and 54.405. 3 47 U.S.C. §214(e)(1)(A);47 C.F.R.§54.201(d)(1). 4 47 U.S.C. §214(e)(1);47 C.F.R.§54.201(d). 5 47 U.S.C.§214(e)(1)(13);47 C.F.R.§54.201(d)(2). 6 47 C.F.R.§54.405;see also In the Matter of Lifeline and Link Up Reform and Modernization,Report and Order and Further Notice of Proposed Rulemaking,WC Docket No. 11-42, FCC 12-11, released February 6,2012("Lifeline Reform Order"). 47 C.F.R.§54.202(a)(1)(i). 8 47 C.F.R.§54.202(a)(2);and IPUC ETC Requirements Order,App.,at 3. 9 47 C.F.R.§54.202(a)(3);and IPUC ETC Requirements Order,App.,at 3. 11 IPUC ETC Requirements Order, App., at 3. 11 Id.at 2. 12 See IPUC ETC Requirements Order, App., at 3-4. 13 See Lifeline Reform Order. CTBS CTCI Joint Application for Approval of Merger—5 V. RELIEF REQUESTED For the reasons set forth above, CTBS and CTCI request the following: A. That the Commission enter an Order approving the merger of CTBS into CTCI with CTCI as the surviving entity; B. That the Commission issue an Amended Certificate of Public Convenience and Necessity for CTCI to reflect the merger and transfer of CTBS's CPCN Certificate No. 501 to CTCI; and C. That the Commission amend the service territory for which CTCI is designated an Eligible Telecommunications Carrier to reflect the merger and transfer of CTBS's designated service areas granted in Case No. CTB-T-14-01, Order No. 33002. Applicant does not believe that the public interest requires a hearing on this matter and, therefore, requests that the Commission approve the Application by Minute Order or under Modified Procedure. In the event the Commission determines that further proceedings are necessary, Applicant stands ready for immediate hearings. RESPECTFULLY SUBMITTED this 19th day of March 2026. Cynthia A. Melillo PLLC BY: L� z"'L-- , CI Cynthia A. Melill Attorney for Custer Telephone Cooperative, Inc. and Custer Telephone Broadband Services LLC CTBS CTCI Joint Application for Approval of Merger—6 CERTIFICATE OF SERVICE HEREBY CERTIFY that on this 19th day of March 2026, 1 caused to be served a true and correct copy of the foregoing by the method indicated below, and addressed to the following: Monica Barrios-Sanchez, Commission ❑ U.S. Mail Secretary Idaho Public Utilities Commission F1 Hand Delivered 11331 W. Chinden Blvd. Building 8, Suite 201-A ❑ Overnight Mail Boise, ID 83714 ❑ Facsimile P.O. Box 83720 Boise, ID 83720-0074 Electronic Mail Cynthia A. Melillo( CTBS CTCI Joint Application for Approval of Merger—7 Exhibit A Certificate of Existence [attached] Exhibit A B STATE OF IDAHO y c Phil McGrane I Secretary of State Business Office 450 North 4th Street PO Box 83720 Boise, ID 83702 March 18, 2026 Request Type: Certificate of Existence/Filing Issuance Date: 03/18/2026 Request#: 0006716285 Copies Requested: 0 Receipt#: 001296678 Regarding: CUSTER TELEPHONE COOPERATIVE, INC. Filing Type: Non-Profit Corporation (D) File# 96042 Formation/Qualification Date: 01/31/1955 Delayed Effective Date: Status: Active-Good Standing Formation Locale: IDAHO Duration Term: Perpetual Inactive Date: Certificate of Existence I, Phil McGrane, Secretary of State of the State of Idaho, do hereby certify that effective as of the issuance date noted above CUSTER TELEPHONE COOPERATIVE, INC. is a Corporation duly incorporated under the law of this State with a date of incorporation and duration as given above. Phil McGrane Idaho Secretary of State Processed By: Business Division Verification#: 038953943 Phone: 208-334-2301 * Website: sosbiz.idaho.gov