20130104Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 4, 2013

SUBJECT: CERTAIN TELEPHONE CORPORATIONS’ FAILURE TO PAY THEIR
REGULATORY ASSESSMENTS FOR 2011 AND 2012, CASE NO. GNR-T-
13-01

Idaho Code §§ 61-1001 and 62-611 require public utilities (e.g., telephone
corporations) to pay a special regulatory fee to defray the Commission’s supervisory and
regulatory expenses. Based upon the appropriation approved by the Legislature, the Commission
determines the proportional assessment for each utility based upon the utility’s gross intrastate
operating revenues. Idaho Code §§ 61-1003 and 61-1004. Idaho Code § 61-1004(3) states that
in no case shall the annual regulatory fee be less than $50.
The Commission’s fiscal officer reports that about 100 Title 62 telephone
corporations have not paid their regulatory assessments for calendar years 2011 and 2012. 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. The regulatory fees are payable in
semi-annual installments in May and November of each year. Staff believes that many of these
companies have simply gone out of business or no longer conduct business in Idaho.
Staff maintains that these companies have been served with assessment letters and
late notices at their designated service address. The Commission’s Procedural Rule 16.03
provides that all utilities shall designate a person as their Idaho agent to be served with
summonses and complaints. Utilities are “responsible for maintaining on file with the
Commission Secretary the current name, mailing address and e-mail address of the person
designated as the agent to receive service.” IDAPA 31.01.01.016.03. Staff further maintains
DECISION MEMORANDUM 2
that most of these companies are no longer registered as business entities in “good standing”
with the Idaho Secretary of State.
STAFF RECOMMENDATION
Staff recommends the Commission issue an Order to Show Cause and Notice of
Hearing to these Title 62 corporations to show cause why the Commission should not cancel
their authority for failure to pay their 2011 and 2012 regulatory assessments, pursuant to Idaho
Code § 62-611.
For those companies that fail to pay their regulatory fees, Staff recommends the
Commission revoke or cancel their “Certificates” or registrations as a Title 62
telecommunications carrier.1 Staff further recommends that the Commission revoke/cancel their
price lists or tariffs, and that Idaho local exchange companies be ordered to deny or prohibit
interconnection or the carriage of telecommunications traffic from these Title 62 corporations
until such time as the regulatory fees have been paid.
Consistent with Idaho Code § 61-202, Staff recommends the Commission consider
designating a hearing examiner to conduct the show cause inquiry and to create the hearing
record. Idaho Code § 61-615 provides that service may be made personally or by mailing a copy
of the Notice of Show Cause via registered prepaid postage. Idaho Code §§ 61-615; 62-619(1);
IDAPA 31.01.01.016.
COMMISSION DECISION
Does the Commission wish to issue an Order to Show Cause and Notice of Hearing to
those Title 62 companies that have allegedly not paid their 2011 and 2012 regulatory
assessments?
Does the Commission wish to appoint a hearing officer to conduct the Show Cause
hearing and create the hearing record?

bls/M:GNR-T-13-01_dh

1 As part of its Title 62 registration, the Commission issues a “Certificate” or registration to some or all Title 62
telephone corporations. As the Commission explained in its Procedural Order No. 26665, this process was an
administrative mechanism for registering these companies. See also Rule 114, IDAPA 31.01.01.114.