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HomeMy WebLinkAbout20260505Amended Application.pdf RECEIVED May 05, 2026 IDAHO PUBLIC CYNTHIA A. MELILLO (ISB # 5819) UTILITIES COMMISSION Cynthia A. Melillo PLLC 8385 W. Emerald Street Boise, Idaho 83704 Telephone: 208.577.5747 Fax: 208.361.3441 E-mail: cam(d�camlawidaho.com Attorney for Custer Telephone Broadband Services LLC and Custer Telephone Cooperative, Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION. IN THE MATTER OF THE JOINT ) Case No.: CTB-T-26-01 APPLICATION OF CUSTER ) CUS-T-26-01 TELEPHONE BROADBAND SERVICES ) LLC AND CUSTER TELEPHONE ) CUSTER TELEPHONE BROADBAND COOPERATIVE, INC. FOR APPROVAL ) SERVICES LLC AND CUSTER OF MERGER, CONSOLIDATION OF ) TELEPHONE COOPERATIVE, INC.'S CERTIFICATES OF PUBLIC ) AMENDED JOINT APPLICATION FOR CONVENIENCE AND NECESSITY AND ) APPROVAL OF MERGER, TRANSFER OF ELIGIBLE TELECOMMUNICATIONS CERTIFICATES OF PUBLIC CARRIERS CONVENIENCE AND NECESSITY AND ELIGIBLE TELECOMMUNICATIONS CARRIERS AMENDED JOINT APPLICATION OF CUSTER TELEPHONE BROADBAND SERVICES LLC AND CUSTER TELEPHONE COOPERATIVE, INC. FOR APPROVAL OF MERGER, TRANSFER 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 Amended Joint Application for Approval of Merger, Transfer of Certificates of Public Convenience and Necessity and Eligible Telecommunications Carriers ("Merger") pursuant to CTBS CTCI Amended Joint Application for Approval of Merger— 1 IDAPA 31.01.01.111 through 114.. In this Amended Application, Applicant desires to change the manner in which the Certificate of Public Convenience and Necessity and Eligible Telecommunications Carrier designation of CTBS are transferred to CTCI. All correspondence, communications, pleadings, notices, orders and decisions relating to this Application should be addressed as follows: Cynthia A. Melillo Cynthia A. Melillo PLLC P.O. Box 1277 Boise, Idaho 83701-1277 Telephone: 208-577-5747 Email: .,..n(_3_camIawidaho.com JD Bennetts Custer Telephone Cooperative, Inc. P.O. Box 324 Challis, ID 83226 Telephone: (208) 879-2281 Email: ?ttsQcustertel.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,granting CTCI'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 CTBS CTCI Amended Joint Application for Approval of Merger—2 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, 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, and the services formerly provided by CTBS be provided by CTCI as a CLEC division of CTCI. 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. Additionally, 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, but will be operated as a division of CTCI. 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 CTBS CTCI Amended Joint Application for Approval of Merger—3 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 Rural Utilities Service and CoBank, ACB, lenders of CTCI. III. TRANSFER OF CTBS'S CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CTCI CTCI intends to continue to provide local exchange services as a competitive local exchange carrier throughout the service area of CTBS as set forth in CTBS's Certificate of Public Convenience and Necessity (Certificate No. 501). CTCI will operate in this area as a CLEC division of CTCI, and does not wish that the service territory of CTBS be merged with CTCI's ILEC service territory under CTCI's CPCN, but rather that Certificate No. 501 currently held by CTBS be transferred to and held in the name of CTCI as a separate CPCN. CTCI will continue to offer the services in the service area as set forth in Certificate No. 501 at the rates set forth in CTBS's price list on file with the Commission. The price list will be amended to state that it is the pricelist of CTCI — CLEC Division. 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 CTBS CTCI Amended Joint Application for Approval of Merger—4 Challis, ID 83226-0324 Monte Severe PO Box 324 Director Challis, ID 83226-0324 Bruce Bruno PO Box 324 Director Challis, ID 83226-0324 IV. TRANSFER OF CTBS'S ELIGIBLE TELECOMMUNICATIONS CARRIER DESIGNATION TO CTCI. 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 CTBS'S ETC service area be transferred to and placed in the name of CTCI, but not merged with CTCI's separate ETC service area. 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;' (iii) will use its own facilities, in whole or in part, to provide the supported services;' (iv) will provide the supported services throughout the CTBS Designated Service Area;4 (v) will advertise the availability of such services using media of general distribution;'(vi)will make Lifeline service available to qualifying low-income consumers;" (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;8(ix)will satisfy consumer protection and service quality standards;9(x)will provide local usage plans comparable to the ILECs already 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. 147 U.S.C.§214(e)(1)(A);47 C.F.R.§54.201(d)(1). 447 U.S.C. §214(e)(1);47 C.F.R.§54.201(d). 147 U.S.C. §214(e)(1)(B);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). 847 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. CTBS CTCI Amended Joint Application for Approval of Merger—5 operating in the CTBS 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 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 to reflect the merger and transfer CTBS's CPCN Certificate No. 501 to CTCI; and C. That the Commission transfer to CTCI CTBS's ETC 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 Amended 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 5th day of May 2026. Cynthia A. Melillo PLLC BY: , Cynthia A. Melillo Attorney for Custer Telephone Cooperative, Inc. and Custer Telephone Broadband Services LLC to 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 Amended Joint Application for Approval of Merger—6 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 5' day of May 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 ❑ Hand Delivered 11331 W. Chinden Blvd. Building 8, Suite 201-A II Overnight Mail Boise, ID 83714 Facsimile P.O. Box 83720 Boise, ID 83720-0074 Electronic Mail Cynt is A. Melillo CTBS CTCI Amended Joint Application for Approval of Merger—7 Exhibit A Certificate of Existence [attached] Exhibit A STATE OF IDAHO Phil McGrane I Secretary of State Business Office err 4 450 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