20030327Order No 29215.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
March 27, 2003
IN THE MATTER OF AMERICAN
TELECOMMUNICATIONS ENTERPRISE, INC.
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF ARRIVAL
COMMUNICATIONS, INc.'S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULA TORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF COLORADO RIVER
COMMUNICATIONS CORP.S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF COMPLUS, L.L.C.
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF CORRECTIONAL
COMMUNICATIONS SYSTEMS OF IDAHO,
L.L.c.'S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF CYBERSENTRY, INC.
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF FAXNET CORPORATION'
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
ORDER NO. 29215
) CASE NO. GNR-03-
) ORDER NO. 29215
IN THE MATTER OF FEDERAL TRANSTEL,
INC.S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF GF ENTERPRISES'
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF RUTH & TARA
MILLWARD'S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF MIRACLE
COMMUNICATIONS, INc.'S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF NEXSTAR
COMMUNICATIONS INC.S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF NOR COMMUNICATIONS,
INc.'S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF OVERLOOK
COMMUNICATIONS INTERNATIONAL
CORPORATION'S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF PTT TELEKOM, INC.
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
ORDER NO. 29215
IN THE MATTER OF QUEST
TELECOMMUNICATIONS, INc.'S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE~~ 61-1001 AND 62-611.
IN THE MATTER OF SMITTY'S PUB'S FAILURE )
TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF TELCOM NETWORK
INC.S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF TELEHUB NETWORK
SERVICES CORPORATION'S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF TELTRUST
COMMUNICATIONS SERVICES, INc.'
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF TOUCHTONE NETWORK,
INc.'S FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF USA TELE CORP.' S
FAILURE TO REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF USBG, INc.'S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
ORDER NO. 29215
IN THE MATTER OF VISTA GROUP
INTERNATIONAL, INc.'S FAILURE TO REMIT
THE COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
IN THE MATTER OF WEST END
COMMUNICATIONS INc.'S FAILURE TO
REMIT THE COMMISSION'S 2002
REGULATORY FEE PURSUANT TO IDAHO
CODE ~~ 61-1001 AND 62-611.
IN THE MATTER OF WESTERN STATE PAY
PHONES' FAILURE TO REMIT THE
COMMISSION'S 2002 REGULATORY FEE
PURSUANT TO IDAHO CODE ~~ 61-1001 AND 62-
611.
On January 27, 2003 , the Commission issued Order No. 29185 directing American
Telecommunications Enterprise, Inc.Arrival Communications, Inc.Colorado River
Communications Corp.; Complus L.L.c.; Correctional Communications Systems of Idaho, L.L.C.
Cybersentry, Inc.; Faxnet Corporation; Federal Transtel, Inc.; GF Enterprises, Miracle
Communications, Inc.; Nexstar Communications Inc.NOR Communications, Inc.; Overlook
Communications International Corporation; PTT Telekom, Inc.; Quest Telecommunications, Inc.
Ruth & Tara Millward; Smitty s Pub; Te1com Network Inc.; Telehub Network Services
Corporation; Teltrust Communications Services, Inc.; Touchtone Network, Inc.; USA Tele Corp.
USBG, Inc.; Vista Group International, Inc.; West End Communications Inc.; and Western State
Pay Phones ("the Companies ) to show cause why they have not paid their respective $50.
regulatory fees for 2002 as required by Idaho Code ~ ~ 61-1001 and 62-611. In addition, the Order
also alleged that these Companies had failed to report their 2001 intrastate operating revenues as
required by Idaho Code ~ 61-1003. Although the 26 Companies were ordered to appear before the
Commission s Hearing Examiner on February 26 , 2003, none of the Companies appeared at the
hearing.
Having reviewed the evidence presented at the Show Cause hearing and the Hearing
Examiner s recommendations, we order 24 of the 26 Companies to cease conducting business in
Idaho and direct other Idaho local exchange companies (LECs) to not carry these Companies
ORDER NO. 29215
telecommunications traffic. The tariffs/price lists of these 24 companies shall be cancelled unless
their delinquent regulatory fees are paid within 21 days of the service date of this Order.
BACKGROUND
The Commission s Regulatory Fee
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, each public utility is required to report its
gross operating revenue 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
annual appropriation from the Legislature, the Commission then calculates the proportional
assessment to be paid by each utility. Thereafter, each utility pays 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 6% until such time as the full amount of the installment or annual
fee is paid. Idaho Code ~ 61-1004(3) sets the minimum annual regulatory fee at $50.00.
In this case, the Commission Staff alleged that 26 Title 62 Companies failed to report
their gross intrastate revenues for calendar year 2001 and failed to pay their 2002 regulatory fees.
Order No. 29185 at 5-6. The Staff presented the prefile testimony of its financial support
technician, Christine Adams. She testified concerning the assessment procedures and the Staff s
efforts to obtain the 2001 gross revenues and to collect the 2002 regulatory assessments from the
Companies.
THE SHOW CAUSE HEARING
A. Staff Motion to Remove Parties from the Proceeding
Staff made a preliminary motion to remove Arrival Communications, Inc. and Miracle
Communications, Inc. from the show cause proceeding. Staff s counsel indicated that Arrival
Communications previously requested the Commission remove its price lists and tariffs from the
Commission s records. Tr. at 2-3. Because the Commission had already done so, Staff no longer
sought an Order against Arrival Communications. Counsel for Staff also indicated Miracle
ORDER NO. 29215
Communications should no longer be required to show cause in this proceeding because it had
recently come into compliance with the Commission s reporting and assessment requirements. Tr.
at 3. Staff proceeded to present testimony on the remaining 24 companies named in show cause
Order No. 29185.
B. Designating Persons to Receive Service and
Mail Issued by the Commission Secretary
Ms. Adams first testified that Idaho Code ~ 62-619 provides that the Commission
Rules of Procedure apply to the processing of Title 62 matters. She stated that the Commission
Procedural Rule 16 provides that the Commission Secretary shall serve all Orders by mail. IDAPA
31.01.01.016.01. Tr. at 11. This Rule requires that all "utilities must maintain on file with the
Commission Secretary a designation of such a person. Summonses and complaints directed to
regulated utilities. . . may be served by registered or certified mail." Tr. at 11 citing IDAP A
31.01.01.016.02.
Staff witness Adams also testified that Title 62 Rule 202 requires that each Title 62
corporation provide the Commission with "address of the principal place of business of the
telephone corporation, and, if there is a principal place of business in Idaho, the address of the
principal place of business in Idaho; (and an) agent in Idaho for service to process by the
Commission in the state of Idaho." IDAPA 31.42.01.202.02(b) and (c). Tr. at 10. She also noted
that Rule 202.03 provides that "orders and other documents issued by the Commission may be
served by mail on the agent for service of process listed pursuant to Rule 202.01(c) of this rule.
This service constitutes due and timely notice to the telephone corporation, and no further service is
necessary to bind the corporation." Tr. at 10 citing IDAPA 31.42.01.202.03. Idaho Code ~ 61-615
allows complaints against utilities to be served by registered mail. All the Orders and
correspondence sent to the 24 companies at issue in this case were sent to the addresses on file with
the Commission.
C. The Companies ' Failure to Report Their Gross Revenues
and the Staff's Efforts to Collect the Regulatory Fees
1. Reporting 2001 Revenues. On February 8 2002, a letter was mailed to each of the
compames asking them to report their respective 2001 gross intrastate revenues on or before
April 1 , 2002. The 24 companies at issue did not respond to this letter nor did they otherwise report
their 2001 gross operating revenues as required by Idaho Code ~~ 61-1003 and 62-611.
ORDER NO. 29215
2. 2002 Fees. Ms. Adams outlined the measures taken by the Staff to collect the 2002
regulatory fees from the Companies. She reported that on April 22, 2002, the Commission Staff
forwarded an assessment statement to the 24 Companies advising them of their annual $50.
regulatory fee, of which $25.00 was due and payable no later than May 15 , 2002. Again in October
2002, the 24 Companies were sent a letter claiming that the first installments were not received.
The letter advised each Company that $25.57 was due or the Company could pay their entire 2002
regulatory assessment of $50.57 no later than October 30, 2002. As of February 24, 2003, none of
the 24 Companies had paid its 2002 fees.
3. Notice of Show Cause Order. Ms. Adams next stated that each Company was
served a copy of Show Cause Order No. 29185 by certified mail. The post office s mail receipts
showed that the Companies did not receive their copy of the Commission s Show Cause Order No.
29185 because the address was undeliverable and/or the post office was unable to forward them.
4. Staff Recommendation. None of the 24 Companies appeared at the Show Cause
hearing. Tr. at 2 and 79. Ms. Adams recommended that the Hearing Examiner enter default
judgments against these Companies for failing to report their 2001 intrastate gross revenues, failing
to pay their 2002 regulatory fee, and failing to appear at the Show Cause hearing. Tr. at 75. She
further recommended that the Commission order these Companies to cease operating in Idaho until
they have come into compliance by paying the appropriate regulatory fees. In addition, she
suggested that the Commission direct local exchange companies to deny or prohibit the
interconnection or carriage of traffic for these Companies. Finally, Ms. Adams recommended that
their price lists be removed from the Commission s files and their certificates cancelled if the
Companies failed to pay their delinquent regulatory fees. Id. at 75-76.
D. The Hearing Examiner s Findings and Recommendations
Because the actions of Arrival Communications and Miracle Communications negated
the need for further proceedings, the Hearing Examiner recommended that the Commission delete
these two companies from any eventual default order. Tr. at 3.
Having reviewed the testimony filed by Staff witness Adams, the Hearing Examiner
found that the Commission Secretary affected proper service of Show Cause Order No. 29185 by
regular and certified mail upon the 24 Companies at their designated business and agent addresses.
Tr. at 79-80. Even though Order No. 29185's language advised the Companies of the potential
penalties the Commission could impose for failing to show cause or remedy their alleged
ORDER NO. 29215
noncompliance, he found that no parties appeared at the Show Cause hearing. Tr. at 80. Based on
the testimony of Staff s witness, the Hearing Examiner found that these 24 Companies neither
reported their 2001 revenues, nor paid their 2002 regulatory fees as required by the Idaho Code. Tr.
at 79-81. Moreover, none of the Companies were properly registered with the Secretary of State.
Tr. at 80.
Thus, the Hearing Examiner recommended that the Commission enter default judgments
against the 24 Companies. Tr. at 81. He also recommended that the Commission issue an Order
advising other Title 61 or Title 62 companies not to carry these Companies' traffic if they do not
come into compliance before the Order becomes final, 21 days after the Order s service date. Id.
Moreover, the Commission should cancel the Certificates allowing these Title 62 Companies to
provide local service and remove their price lists and tariffs from the Commission s files. Tr. at 82.
Finally, the Hearing Examiner recommended that the Commission issue an Order directing these
Companies to cease conducting business in Idaho. Id.
COMMISSION FINDINGS
Having reviewed the evidence presented at the Show Cause hearing and the Hearing
Examiner s recommendations, we find that American Telecommunications Enterprise, Inc.
Colorado River Communications Corp.; Complus L.L.c.; Correctional Communications Systems of
Idaho, L.L.C.; Cybersentry, Inc.; Faxnet Corporation; Federal Transtel, Inc.; GF Enterprises;
Nexstar Communications Inc.; NOR Communications, Inc.Overlook Communications
International Corporation; PTT Telekom, Inc.; Quest Telecommunications, Inc.; Ruth & Tara
Millward; Smitty s Pub; Te1com Network Inc.; Telehub Network Services Corporation; Teltrust
Communications Services, Inc.; Touchtone Network, Inc.; USA Tele Corp.; USBG, Inc.; Vista
Group International, Inc.; West End Communications Inc.; and Western State Pay Phones have
failed to report their 2001 gross intrastate operating revenues and have failed to pay their 2002
regulatory fees as required by Idaho Code ~~ 61-1003, 61-1005, and 62-611. We find that the
assessment letters, collection letters, and Order No. 29185 were properly served by regular mail and
certified mail to the person(s) designated by these Title 62 Companies to receive correspondence
summonses and Orders of the Public Utilities Commission. IDAPA 31.01.01.016; 31.42.01.202.
The Commission has jurisdiction over these Companies and this matter pursuant to Idaho Code
~ 62-611 and Chapter 10, Title 61 , Idaho Code.
ORDER NO. 29215
Based upon the recommendation of our Hearing Examiner, we further find that it is
appropriate to enter default judgments against these twenty-four companies for their failure to
appear at the Show Cause hearing. IDAP A 31.01.01.301. It is unreasonable for these Companies
be allowed to operate in Idaho without paying their regulatory fees. Failure to report their gross
intrastate operating revenues and failure to pay their regulatory fees unfairly burdens the remaining
companies that are in compliance with the Public Utilities Laws. Moreover, the Companies ' failure
to appear at the Show Cause hearing pursuant to an Order of this Commission calls into question
their ability to comply with the Public Utilities Laws and administrative Rules of this Commission.
It is evident from the testimony of our financial technician that considerable resources and Staff
time were expended trying to collect the delinquent regulatory fees.
Finally, we also believe it is reasonable that these Companies be directed to cease
operating in Idaho and that incumbent and competitive local exchange companies be ordered not to
transmit any traffic for these Companies. Given the failure of these 24 Companies to pay their
regulatory fees as required by law, we also believe it is appropriate to cancel their tariffs and price
lists and remove them from the Commission s files. Although we believe that these Companies
have been given ample opportunity to comply with the regulatory fee statutes, we believe it is
appropriate for this Order to become effective 21 days from the service date of this Order. If prior
to the effective date of this Order the Companies come forward to pay their delinquent regulatory
fees, we believe that it would be appropriate for the Companies and the Commission Staff to enter
into a consent agreement pursuant to Procedural Rule 58, IDAP A 31.01.01.058. As noted in the
Rule
, "
(cJonsent agreements are intended to require compliance with existing law.Id. The
Commission further finds it reasonable to dismiss the show cause proceedings against Arrival
Communications and Miracle Communications, both of which reached agreements prior to the
hearing to resolve alleged noncompliance issues.
ORDER
IT IS HEREBY ORDERED that American Telecommunications Enterprise, Inc.
Colorado River Communications Corp.; Complus L.L.c.; Correctional Communications Systems of
Idaho, L.L.C.; Cyb ers entry, Inc.; Faxnet Corporation; Federal Transtel, Inc.GF Enterprises;
Nexstar Communications Inc.; NOR Communications, Inc.Overlook Communications
International Corporation; PTT Telekom, Inc.; Quest Telecommunications, Inc.; Ruth & Tara
Millward; Smitty s Pub; Te1com Network Inc.; Telehub Network Services Corporation; Teltrust
ORDER NO. 29215
Communications Services, Inc.; Touchtone Network, Inc.; USA Tele Corp.; USBG, Inc.; Vista
Group International, Inc.; West End Communications Inc.; and Western State Pay Phones are in
default for failure to report their 2001 gross intrastate revenues and to pay their 2002 regulatory fees
pursuant to Idaho Code ~~ 61-1001 , 61-1003 , 61-1005 , and 62-611.
IT IS FURTHER ORDERED that this Order shall become effective 21 days from the
service date of this Order. When this Order becomes effective, the 24 Companies named above
shall cease operating in Idaho.
IT IS FURTHER ORDERED that 25 days after the service date of this Order, that
incumbent and competitive local exchange companies shall no longer originate or terminate
intrastate traffic for these Companies.
IT IS FURTHER ORDERED that upon the effective date of this Order the tariffs and
price lists for these 24 Companies shall be cancelled for failure to pay their 2002 regulatory fees.
IT IS FURTHER ORDERED that the show cause proceedings against Arrival
Communications, Inc. and Miracle Communications, Inc. are hereby dismissed.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. GNR-03-
may petition for reconsideration within twenty-one (21) days of the service date of this Order with
regard to any matter decided in this order or in interlocutory Orders previously issued in this Case
No. GNR-03-3. Within seven (7) days after any person has petitioned for reconsideration, any
other person may cross-petition for reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 29215
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this P...
.,.,..
day of March 2003.
(ii/L~Em
JJ
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~~
ission Secretary
0:GNRUO303 1n2
ORDER NO. 29215