28274.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF DOLPHIN USA, INC.’S FAILURE TO REMIT THE COMMISSIONS 1998 AND 1999 REGULATORY FEE PURSUANT TO IDAHO CODE §§ 61-1001 AND 62-611.
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CASE NO. GNR-U-00-2

ORDER TO SHOW CAUSE

ORDER NO. 28274

IN THE MATTER OF LD NETWORK SERVICE, INC.’S FAILURE TO REMIT THE COMMISSIONS 1999 REGULATORY FEE PURSUANT TO IDAHO CODE §§ 61-1001 AND 62-611.
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) IN THE MATTER OF NORTH AMERICAN COMMUNICATION GROUP, INC.’S FAILURE TO REMIT THE COMMISSIONS 1998 AND 1999 REGULATORY FEE PURSUANT TO IDAHO CODE §§ 61-1001 AND 62-611.
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) IN THE MATTER OF PARTNERS IN COMMUNICATION’S FAILURE TO REMIT THE COMMISSIONS 1999 REGULATORY FEE PURSUANT TO IDAHO CODE §§ 61-1001 AND 62-611. )
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Idaho Code §§ 61-1001 and 62-611 provide that each public utility subject to the Commission’s Title 61 or Title 62 jurisdiction shall pay to the Commission a special regulatory fee “to defray the amount to be expended by the Commission for expenses in supervising and regulating” the public utilities. On or before April 1 of each year, public utilities are required to report their gross operating revenues from intrastate business in Idaho for the preceding calendar year. Idaho Code § 61-1003. Based upon all the utilities’ gross intrastate revenues and the Commission’s annual appropriation by the Legislature, the Commission calculates the proportional assessment to be paid by each utility. Thereafter, each utility shall pay its regulatory assessment to the Commission in two equal semi-annual installments on or before May 15 and November 15 of each year. Idaho Code § 61-1005. “Upon failure, refusal or neglect of any public utility or railroad corporation to pay such fee the attorney general shall commence an action in the name of the state to collect the same.” Id. This section further provides that installments not paid in a timely fashion shall bear interest at the rate of six percent (6%) until such time as the full amount of the installment shall be paid.
STAFF CHARGES
The Commission Staff has advised the Commission that Dolphin USA, Inc.; LD Network Services, Inc.; North American Communications Group, Inc.; and Partners in Communication have not paid their respective $50.00 regulatory fees for 1999. In addition, two companies —Dolphin USA, Inc. and North American Communications Group, Inc.—have not paid their regulatory fees for 1998. The Staff asserts that it had forwarded to each utility a statement of its 1999 annual regulatory fee on April 23, 1999, due and payable on May 15, 1999. Subsequent collection letters were sent on September 9, 1999 and December 10, 1999.
The first half regulatory fee of $25.00 was due and payable May 15, 1999. Idaho Code § 61-1005. The Companies also failed to remit the second half of their regulatory fees by November 15, 1999. Id. Staff calculates that the total amount owed by each company (including interest) is currently $51.03 for 1999 fees; the amount owed by the two companies for 1998 and 1999 is $105.06.
Staff also asserts that Dolphin USA, Inc.; LD Network Services, Inc.; North American Communications Group, Inc.; and Partners in Communication failed to respond to the request to report their intrastate gross operating revenues for the proceeding calendar year 1998. On February 26, 1999, the Staff sent a letter to all utilities directing them to report their 1998 gross operating revenues no later than April 1, 1999. Idaho Code § 61-1003. The letter was mailed to the designated person to receive summonses and complaints. IDAPA 31.01.01.016.02.
The Staff further asserts that it served by first class mail the request to report intrastate gross revenues, the regulatory fee statement, and the collection letters upon the person designated by each utility to receive summonses and complaints. The Commission’s Procedural Rule 16.02 requires that all utilities designate a person for service of summonses and complaints with the Commission Secretary. IDAPA 31.01.01.016.02.
Staff further asserts that Dolphin USA, Inc.; LD Network Services, Inc.; North American Communications Group, Inc.; and Partners in Communication are telecommunications corporations subject to the Commission’s jurisdiction under Chapter 6, Title 62, Idaho Code. Idaho Code § 62-611 provides that telephone corporations subject to the Commission’s Title 62 jurisdiction shall pay to the Commission a special regulatory fee as determined by the Commission pursuant to Chapter 10, Title 61, Idaho Code.
ORDER TO SHOW CAUSE
Based upon the Staff’s representations, the Commission finds that there is probable cause to believe that Dolphin USA, Inc.; LD Network Services, Inc.; North American Communications Group, Inc.; and Partners in Communication have failed, refused, or neglected to pay their 1999 regulatory fee due and payable in semi-annual installments on May 15, 1999 and November 15, 1999. The Commission further finds that there is probable cause to suspect these companies have failed to report their 1998 intrastate operating revenues as required by Idaho Code § 61-1003.
IT IS HEREBY ORDERED that LD Network Services, Inc. and Partners in Communication show cause why the Commission should not formally find that the utilities have failed to pay their 1999 regulatory fees (now totaling $51.03 for each company) and failed to report their gross intrastate operating revenues for 1998. The Companies shall appear before the Commission’s hearing officer at 472 WEST WASHINGTON STREET, BOISE, IDAHO, AT 9:30 A.M. ON TUESDAY, FEBRUARY 22, 2000.
IT IS FURTHER ORDERED that Dolphin USA, Inc. and North American Communications Group, Inc. show cause why the Commission should not formally find that the utilities have failed to pay their 1998 and 1999 regulatory fees (now totaling $105.06 for each company) and failed to report their gross intrastate operating revenues for 1998. The Companies shall appear before the Commission’s hearing officer at 472 WEST WASHINGTON STREET, BOISE, IDAHO, AT 9:30 A.M. ON TUESDAY, FEBRUARY 22, 2000.
IT IS FURTHER ORDERED that Dolphin USA, Inc.; LD Network Services, Inc.; North American Communications Group, Inc.; and Partners in Communication appear at the time and place above to show cause why the Commission should not seek a civil penalty of $2,000 per day for each day after May 15, 1999 that the utility has failed to pay its regulatory fee. The Companies should also be prepared to show cause why the Commission should not order the Company to cease conducting business and order Idaho local exchange companies to deny or prohibit the carriage of telecommunications traffic until such time as the delinquent regulatory fees have been paid.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act. Persons needing the help of a sign language interpreter or other assistance of the kind that the Commission is obligated to provide under the Americans with Disabilities Act in order to participate in or to understand the testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing. The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (TELEPHONE)
[phone] (TEXT TELEPHONE)
[phone] (FAX)

YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to Idaho Code § 62-619 and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that the Commission Secretary serve this Order to Show Cause by Certified Mail (return receipt requested) upon the person designated to receive Notices of Summonses and Complaints (IDAPA 31.01.01.016) and upon the person designated by the utility to receive legal service in Idaho.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of January 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

bls/L:gnru002_dh
Of course, utilities may also pay their entire annual assessments by May 15.
Idaho Code § 61-1004(3) sets the minimum annual fee at $50.00.

ORDER TO SHOW CAUSE
ORDER NO.  28274 -1-

ORDER TO SHOW CAUSE
ORDER NO.  -5-

Office of the Secretary
Service Date
January 28, 2000