20030723_555.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
WORKING FILE
FROM:CAROLEE HALL
DATE:JULY 18, 2003
RE:DISMISSAL WITHOUT PREJUDICE OF BAK COMMUNICATIONS, LLC'
APPLICATION FOR A CPCN CASE NO. GNR-03-18.
BACKGROUND
On May 14, 2003, the Commission received an Application for a Certificate of Public
Convenience and Necessity (CPCN) from BAK Communications, LLC. The Company also
included an Illustrative Tariff. Staff reviewed the filing and found that it was grossly out of
compliance with the Commission s Rules of Procedure, Customer Relations Rules and Idaho
Statutes. For example, the Company proposes that
should a customer dispute a bill, to avoid disconnection of service, the
Customer must submit the claim and, if the bill has not been paid, deposit
the amount in dispute with the Commission within seven (7) calendar days
after the date the Company notifies the Customer that its investigation and
review are completed and that such deposit with the Commission must be
made or service will be suspended. The Company wishes that the deposit
be made payable to the IPUc.
This violates the Commission s Consumer Rule IDAP A 31.41.01.304, Requirements for Notice
before Termination of Local Service. Another example is found under the Company
Limitation of Liability section where the Company states:
In the event an error or omission is caused by the gross negligence of the
Company the liability of the Company shall be limited to and in no event
exceed the sum of $5 000.
DECISION MEMORANDUM - 1 -JULY 18, 2003
The Company s Tariff also states:
Credit allowances shall be provided in the form of long distance minutes
as provided by our long distance carrier of choice. A long distance credit
of 30 minutes will be issued for each 24 hour period that the service facility
or circuit is interrupted. Credits shall not be provided for impaired service
facilities or circuits.
This clearly is a violation of Commission Customer Relation Rule 503 , which explicitly states
that if local service is out for 24 hours the Customer is to receive a 30-day credit for local
service. Staff states there are many other flaws in the Company s filing but for the sake of
brevity has just highlighted a few.
On June 9, 2003 , Staff prepared and mailed a letter with a marked up copy of the
Application and Tariff to the Company. In its letter, Staff directed the Company to the
Commission s home page where the Rules of Procedure and Customer Relations Rules are
located. Staff recommended that the Company use the "model tariff' that is provided to assist
new competitive carriers. Staff also provided a telephone number for the Company to call for
assistance in bringing the Application and Tariff into compliance. The Company was given until
July 1 , 2003 to correct and resubmit its filing.
On July 3, Staff sent an e-mail to Mr. Manzilla, Chief Operations Officer for BAK
Communications, LLC, and explained that Staff would request that the Commission dismiss the
Company s Application for failure to correct and submit its corrected Application and Illustrative
Tariff. Staff placed a final deadline on the Company for a response by July 8, 2003. On July 8
2003 at 4:00 p., Staffreceived a response to its e-mail wherein the Company indicated that it
was working on its revised Application and Tariff and requested two more days. Staff agreed to
allow two more days for the Company to complete and resubmit its revised Application and
Illustrative Tariffs. As of July 17 2003 , Staff had not received a revised Application, Illustrative
Tariff or any correspondence from the Company.
STAFF RECOMMENDATION
Staff recommends that the Commission dismiss BAK Communications, LLC' s
Application for a CPCN and its Illustrative Tariff without prejudice.
DECISION MEMORANDUM - 2-JULY 18, 2003
COMMISSION DECISION
Does the Commission wish to dismiss BAK Communication, LLC's Application for a
CPCN and Illustrative Tariff without prejudice?
chall/u/decision memoslBAK Communications CPCN Dismissal
DECISION MEMORANDUM - 3 -JULY 18 2003