20261016Staff Comments.pdf

RECEIVED
October 16, 2026
KELSEA E. ROSS IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO STATE BAR NO. 12050
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CUSTER TELEPHONE )
BROADBAND SERVICES LLC AND CUSTER ) CASE NOS. CTB-T-26-01
TELEPHONE COOPERATIVE,INC.'S JOINT ) CUS-T-26-01
APPLICATION FOR APPROVAL OF )
MERGER, TRANSFER OF CERTIFICATES ) COMMENTS OF THE
OF PUBLIC CONVENIENCE AND ) COMMISSION STAFF
NECESSITY,AND ELIGIBLE )
TELECOMMUNICATIONS CARRIERS )
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"),by and through its attorney of record,Kelsea E. Ross,Deputy Attorney General,
submits the following comments.
BACKGROUND
On March 19, 2026, Custer Telephone Broadband Services LLC ("CTBS") and Custer
Telephone Cooperative, Inc. ("CTCI") (collectively the "Parties")jointly applied("Application")
to the Commission requesting an order from the Commission approving: (1) the merger of CTBS
into CTCI; (2)the transfer of Certificate of Public Convenience and Necessity("CPCN")No. 501
from CTBS to CTCI; and(3)the transfer of CTBS's eligible telecommunications carrier("ETC")
service area to and in the name of CTCI. Application at 3-5. On May 5, 2026, the Parties filed
an amended joint application ("Amended Application") to change the Parties' request for how
CPCN No. 501 and CTBS's ETC status would be transferred to CTCI. Amended Application at
1-2.
STAFF COMMENTS 1 OCTOBER 16, 2026

On October 6, 2026, the Commission issued a Notice of Application and Notice of
Modified Procedure, establishing written comment deadlines. Order No. 37193.
CTCI's principal place of business is in Challis, Idaho and supplies basic local exchange
telecommunications services, manual telephone services, wide area telephone services, access
services to inter-exchange carriers, special access services,broadband services, and other services
that are requested or required. Amended Application at 2. In 1989, the Commission issued Order
No. 22519, which granted CPCN No. 308 (as amended) to CTCI for a specific service area. '
Additionally, CTCI has an ETC designation. Amended Application at 2.
The Parties represent that CTBS's principal place of business is also in Challis, Idaho, and
that it is a full-service wireline carrier providing local exchange and broadband services that are
facilities-based. Id. Further, in Case No. CTB-T-11-01,the Commission issued Order No. 32383,
which issued CPCN No. 501 to CTBS and authorized CTBS to supply local exchange and
interexchange services in Idaho. Id. at 2-3. In Case No. CTB-T-11-01, the Commission also
issued Order No. 33002, which permitted CTBS to operate as an ETC in the Salmon, Idaho
exchange area. Id. at 3.
The Parties represent that CTBS was created as a subsidiary of CTCI to purchase cable TV
franchises. Id. However, currently, CTCI and CTBS provide the same or similar services to their
customers in adjacent territories and thus CTCI feels that it is no longer necessary for CTBS to
operate separately. Id.
The Parties represent that if the merger is approved, CTBS will no longer operate as a
separate entity and instead will become a division of CTCL Id. Further, CTCI will provide the
services formerly provided by CTBS and the customers of CTBS will become CTCI's customers.
Id. The Parties claim that merging the two entities will eliminate duplicative functions and result
in saving costs. Id.
The Parties represent that if the merger is approved, CTCI will supply local exchange
services as a competitive local exchange carrier in CTBS's service area that is described in CPCN
No. 501. Id. at 4. The Parties ask that the Commission not merge CTBS's service territory with
the competitive local exchange service territory of CTCI under CPCN No. 308. Id. The Parties
request that as a result of the merger, CPCN No. 501 be transferred to CTCI and that CPCN No.
308 remain in the name of CTCI. Id. The Parties represent that CTCI will continue to offer the
' CUS's service area was modified in 2007 and 2019(See Order Nos. 30290,30291,and 34463).
STAFF COMMENTS 2 OCTOBER 16, 2026

services described in CPCN No. 501 at the rates detailed in CTBS's price list that is on file with
the Commission. Id.
The Parties represent that if the merger is approved, CTCI will continue supplying
supported services in the Salmon, Idaho exchange area described in Order No. 33002. Id. at 5.
The Parties request that the ETC service area of CTBS be transferred to CTCI and placed in CTCI's
name, and that CTBS's ETC service area not be merged with CTCI's separate ETC service area,
detailed in Order No. 22519. Id.
STAFF ANALYSIS
Staff reviewed the Parties' Application, Amended Application, and supporting
documentation. In the Application, the Parties requested the Commission issue an order to (1)
approve the merger between CTBS and CTCI; (2) amend CPCN No. 501 to reflect the merger and
transfer CTBS's CPNC to CTCI; and (3) amend the ETC service territory for CTCI to include
CTBS's ETC service territory. Application at 6. In the Amended Application, the Parties
requested the Commission not only approve the merger but asked that CTBS's CPCN No. 501 and
ETC service territory(Order No. 33002)be amended to reflect the merger. Amended Application
at 6.
The members of CTCI met on March 26,2025,to approve the merger of CTBS into CTCI,
with CTCI being the surviving company. Id at 3. The Parties stated CTBS's customers would
receive the same services and become CTCI's customers. Id. The Parties claim that merging the
two entities will eliminate duplicative functions and result in cost savings. Id. The Parties
represent that CTCI will continue to offer the services described in CPCN No. 501 at the rates
detailed in CTBS's price list that is on file with the Commission. Id. Upon approval from the
Commission, Articles of Merger will be filed with the Idaho Secretary of State, which the Parties
represent will be when the merger will become effective. Id at 4. Based on the Application which
indicates that the customers will be provided the same or equivalent services at the same price that
they are currently paying, Staff believes that the merger will not negatively impact the service or
cost of services for CTBS's and CTCI's customers.
CTBS was granted CPCN No. 501 in case CT13-T-11-01 for the Salmon, Idaho area. The
Parties are requesting that CPCN No. 501 be amended to add CTCI as the company of record. Id
at 4. CPCN Nos. 501 and 308 each have distinct service area boundaries that do not overlap. Staff
STAFF COMMENTS 3 OCTOBER 16, 2026

interprets Commission Rule of Procedure 114 ("Rule 114"),to mean that a condition for obtaining
and maintaining a CPCN is being in compliance with the North American Numbering Plan
Administrator and providing the necessary reports and contributions to the Idaho Universal Service
Fund, Idaho Telecommunications Relay Services, and Idaho Telecommunications Service
Assistance Program. IDAPA 31.01.01.114. In order for both parties to receive and maintain a
CPCN,they must remain in compliance with Rule 114 through annual filings and reporting. Staff
was unable to find any information in the record for annual filings and reporting that indicate the
Parties are out of compliance. Based on CTCI's ability to maintain good standing with required
filings and reporting, CTCI has shown it is capable of complying with Rule 114 and that amending
CPCN No. 501 to reflect the merger is reasonable.
Initially,the Parties requested that CTBS's ETC service area identified in Order No. 33002
become part of or expand CTCI's identified ETC service area. Application at 5. In the Amended
Application, the Parties requested that the ETC designation be transferred to CTCI, rather than to
expand CTCI's designated ETC service area. Amended Application at 5. CTCI's current ETC
designated service area does not overlap with CTBS's designated service area which means that
there would not be potential concern with customers receiving duplicate ETC services or the
Parties receiving duplicate funding. The Parties represent that CTBS customers who are
participating in Lifeline programs will not see a change in their service or billing due to the merger.
Id. Staff believes the transfer of CTBS's designated ETC service area is appropriate since there is
no overlap with CTCI's identified service area and it will not impact CTBS customers who
participate in Lifeline programs.
STAFF RECOMMENDATION
Staff recommends that the Commission:
1. approve the merger between CTBS and CTCI;
2. amend CPCN No. 501 to reflect the transfer from CTBS to CTCI; and
3. transfer the CTBS ETC service territory identified in Order No. 33002 to CTCI.
STAFF COMMENTS 4 OCTOBER 16, 2026

Respectfully submitted this 16th day of October 2026.
Kelsea E. Ross
Deputy Attorney General
Technical Staff. Allison Moore
I:\Utility\UMISC\COMMENTS\CTB-T-26-01 and CUS-T-26-01 Comments.doex
STAFF COMMENTS 5 OCTOBER 16, 2026

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 16TH DAY OF OCTOBER 2026,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NOS. CTB-T-26-01 and CUS-T-26-01, BY E-MAILING A COPY THEREOF TO THE
FOLLOWING:
CYNTHIA A MELILLO JD BENNETTS
CYNTHIA A. MELILLO PLLC CUSTER TELEPHONE COOPERATIVE, INC.
P.O. BOX 1277 PO BOX 324
BOISE, ID 83701-1277 CHALLIS ID 83226
E-MAIL: camgcamlawidaho.com E-MAIL: jd.bennetts(a),custertel.com
PATRICIA JORDA9, SECRETARY
CERTIFICATE OF SERVICE