20201020_mh1.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MATT HUNTER
DEPUTY ATTORNEY GENERAL

DATE: OCTOBER 16 , 2020

SUBJECT: IN THE MATTER OF GC PIVOTAL, LLC DBA GLOBAL CAPACITY’S
ELIGIBILITY TO HOLD CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY NO. 530 ; CASE NO. GCP-T-20-01.

GC Pivotal, LLC dba Global Capacity (“Company”) holds Certificate of Public
Convenience and Necessity (“CPCN”) No. 530 . On November 18, 2019, the Commission
approved the Company’s application for a CPCN, subject to several conditions. One of the
conditions (“condition 5”) is:
The Company must provide three reports to the Commission indicating
the number of basic local exchange customers it has and the services being
offered. These reports will be due on: February 19, 2020; June 17, 2020;
and October 18, 2020. If the Company fai ls to provide the three reports,
the Company shall relinquish its CPCN and all telephone numbers.

Order No. 34484 at 2 . To date, the Commission has not received any of the reports.
On September 28, 2020, the Commission issued an Order to Show Cause, sta ting the
claim (“Claim 1”) that the Company had violated Order No. 34484 by failing to comply with
condition 5. The Show Cause Order also directed the Company to appear before the Commission
to show cause why “the Commission should not find the Company vio lated condition 5 of Order
No. 34484….” Order No. 34786 at 2.
The Order to Show Cause also noted that “[t]elephone corporations that do not provide
basic local exchange service are ineligible for a CPCN….” Id. at 1. However, the Commission did
not cite failure to provide basic local exchange service as a claim against the Company.
DECISION MEMORANDUM 2

The Commission attempted to serve the Company a copy of the Order to Show Cause
by certified mail. However, the address used by the Commission was incorrect.
STAFF RECOMMENDATION
Staff notes that the incorrect address was used to serve the Company a copy of the
September 28, 2020 Order to Show Cause, Order No. 34786. Therefore, the Company has not yet
received notice of the show -cause hearing. Staff recommends the Commission vacate Order No.
34786 and issue a new Order to Show Cause with a new hearing date to comply with Idaho Code
§ 61 -616.
If the Commission choses to reissue its Order to Show Cause in this case , Staff
recommends the Commission take the opportun ity to add an additional claim to the new order.
While Order No. 34786 noted that only telephone corporations providing basic local exchange
service are eligible for a CPCN, Order No. 34786 does not claim the Company is not providing
basic local exchange service. See Order No. 26665. Staff believes this claim should be made in the
Commission’s new order so that the Company can address the claim at its show-cause hearing.
The purpose of the three reports required in condition 5 is to verify that the Company is providing
basic local exchange service. The Company has not provided the reports to date; therefore, there
is no evidence the Company is providing basic local exchange service to any of its customers. Staff
believes the Company should show cause why the Commission should not find the Company
violated the CPCN eligibility requirements in Order No. 26665.
COMMISSION DECISION
Does the Commission wish to:
1. Vacate Order No. 34786?
2. Re -issue an Order to Show Cause in Case No. GCP-T-20-01 with a new hearing date?
a. If yes, does the Commission wish to add a new claim: that the Company’s
failure to provide basic local exchange service is a violation of the CPCN
eligibility requirements in Order No. 26665?

Matt Hunter
Deputy Attorney General

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