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North Carolina Department of Utilities Commission Issues Order Requesting Comments of Application for Declaratory Ruling that No Approval is...(Targeted News Service Via Acquire Media NewsEdge) North Carolina Department of Utilities Commission Issues Order Requesting Comments of Application for Declaratory Ruling that No Approval is Necessary with Respect to Transfer of Certain Assets of Windstream North Carolina, LLC RALEIGH, N.C., Aug. 16 -- The North Carolina Utilities Commission issued the following order: In the Matter of Application for Declaratory Ruling that No Approval is Necessary With Respect to Transfer of Certain Assets of Windstream North Carolina, LLC, Windstream Concord Telephone, Inc., and Windstream Lexcom Communications, Inc., and the Windstream Competing Local Providers, or Alternatively, Approval of Said Transfer BY THE CHAIRMAN: On August 4, 2014, Windstream Holdings, Inc. (Windstream), Windstream North Carolina, (ILEC)1, Windstream Concord Telephone, Inc.(ILEC), Windstream Lexcom Communications, Inc. (ILEC)(all collectively known as the ILECs); Windstream Communications, Inc. (CLP/LD)2, Intellifiber Networks, Inc. 1 Incumbent Local Exchange Company (ILEC). 2 This entity and certain other Applicants have been certificated by the Commission as Competing Local Providers (CLPs) and/or as providers of interexchange/long distance (LD) service, and each such provider is designated as a CLP/LD entity. (CLP/LD),3 Network Telephone Corporation (CLP/LD), The Other Phone Company, Inc. (CLP/LD), Talk America, Inc. (CLP/LD), US LEC of North Carolina, LLC (CLP/LD), PaeTec Communications, Inc. (CLP/LD), Windstream Norlight, Inc. (CLP/LD), Windstream NTI, Inc. (CLP/LD), Windstream KDL, Inc. (CLP/LD), and Windstream NuVox Communications, Inc. (CLP/LD), (the CLP/LDs collectively known as the CLP/LD Companies)(the ILECs and CLP/LD Companies collectively, the WIN Companies); Communications Sales & Leasing, Inc. (CSL), and Talk America Services, LLC (TAI)(Windstream, the ILECs, the CLP/LD Companies, CSL and TAI , collectively, the Applicants) to request that the Commission issue a declaratory ruling that Commission approval of the transfer of certain WIN ILEC and CLP assets to CSL is not necessary under the North Carolina Public Utilities Act; or, in the alternative, that the Commission approve the transfer of the assets described within the Petition. In support of the request that the Commission issue a ruling that it is not required to seek or receive Commission approval to transfer certain WIN and CLP assets to CSL, the Applicants assert the following: 1. Windstream is the parent company to the ILECs and CLP/LD Companies. Windstream is not authorized to provide telecommunications services in North Carolina and is not seeking to become a regulated telecommunications carrier or public utility. 2. The ILECs are certificated in North Carolina to provide local exchange services and are wholly owned subsidiaries of Windstream. 3. The CLP/LD Companies are wholly owned indirect subsidiaries of Windstream. The CLP/LD Companies are certificated as competing providers of local exchange and/or long distance telecommunications service providers. 4. CSL is a newly formed Delaware corporation and will elect to operate as a Real Estate Investment Trust (REIT). CSL will not provide service on a retail or wholesale basis or operate as a telecommunications carrier. 5. TAI is a newly created subsidiary of CSL. As part of the transaction and upon certification by the Commission, TAI will operate as a CLP and long distance carrier in North Carolina where the CLPs/LDs are currently providing service. Upon Commission certification of TAI and following notice to the customers, the residential and local and long distance customers of the CLP/LD Companies will be transferred to TAI. TAI will Two affiliates of this and certain other Windstream CLP Entities, McLeodUSA Telecommunications Services, LLC (McLeod USA) and LDMI Telecommunications, Inc. (LDMI), are interexchange carriers and not CLPs. Specifically, McLeod USA is a switchless reseller of interexchange telecommunications services, pursuant to a Certificate of Public Convenience and Necessity (CPCN) granted in Docket No. P-617, Sub 0. LDMI is an interexchange carrier holding a CPCN granted in Docket No. P-520, Sub 0 become the telecommunications service provider for the CLP/LD Companies' residential customers. The CLP/LD Companies will retain all their business customers. 6. Under the transaction proposed, certain fixed assets of the WIN Companies, including copper, fiber, real estate and other network assets will be transferred to CSL and CSL will lease those assets back to Windstream on a long-term basis for the exclusive use and benefit of the WIN Companies. The WIN Companies will be responsible for the operation and maintenance of the assets and will continue to have responsibility for quality of service standards and fulfillment of all regulatory obligations. 7. The transaction is pro forma under the Federal Communications Commission's (FCC's) rules and does not require approval by the FCC. 8. CSL is not a public utility because it will not be holding itself out as willing to serve, indiscriminately, all who have applied because of its exclusive long term lease arrangement with Windstream and because it will not be providing any service to the public for compensation. 9. CSL is not required to apply for and receive a CPCN from the Commission to acquire the subject assets from the WIN Companies and to lease those assets back to the Windstream for the benefit of the WIN Companies because it does not fall within the definition of public utility as set forth in G.S. 62-3(23)a.6. 10. Commission approval of the transfer of the subject assets is not required under the North Carolina Public Utilities Act. Based upon the aforementioned, the Chairman finds that good cause exists to solicit comments in this docket from the Public Staff, the Attorney General, ILECs, CLPs and any other party interested in the subject matter of the Applicants' request by August 29, 2014. The Applicants shall file reply comments by September 10, 2014. Commenting parties should address the following issues: a. Under the circumstances described herein, would CSL be a public utility as defined in G.S. 62-3(23)a.6? Explain. b. Does the Public Utilities Act require Commission approval of a transfer of public utility assets to an entity that does not have a CPCN and/or does not intend to provide public utility service? Explain. c. Can a public utility transfer its CPCN/authority to operate to another entity? Explain. d. Is Commission approval of the transaction as described herein required? Explain. e. Assuming Commission approval is required, have the Applicants satisfied the statutory criteria for approval of the transaction? Explain. f. Are there any other issues that the Commission may need to address concerning the proposed transfer of assets? IT IS, THEREFORE, SO ORDERED. ISSUED BY ORDER OF THE COMMISSION. This the _15th day of August, 2014. NORTH CAROLINA UTILITIES COMMISSION Gail L. Mount, Chief Clerk CC AutoTriage5rn-140818-30FurigayJane-4831519 30FurigayJof (c) 2014 Targeted News Service |