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PA Bulletin, Doc. No. 07-476

NOTICES

Order

[37 Pa.B. 1288]
[Saturday, March 17, 2007]

Public Meeting held
March 1, 2007

Commissioners Present: Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson; Kim Pizzingrilli; Terrance J. Fitzpatrick

Pennsylvania Public Utility Commission Law Bureau Prosecutory Staff v. Cornerstone Telephone, Co., LLC (2006.0116); C-20066133; A-311316

Order

By the Commission:

   On April 6, 2006, Law Bureau Prosecutory Staff filed a Formal Complaint against Cornerstone Telephone Co., LLC (Cornerstone), a facilities based CLEC and switched access carrier certificated at A-311316, for failure to file its 2004 Annual Report. On November 15, 2006, the Commission entered a Default Order that sustained the complaint and cancelled Cornerstone's certificate of public convenience. Notice of the Default Order was published on December 2, 2006 at 36 Pa.B. 7377 with a 20-day comment period.

   Service of the Complaint was perfected on April 12, 2006. However, Cornerstone failed to file an answer or file its 2004 Annual Report within the 20-day time period specified in the Complaint. Consequently, on November 15, 2006, the Commission entered a Default Order at issue.

   A review of Commission records showed that Cornerstone filed its 2005 Annual Report, but not its 2004 Annual Report. As a result, Commission staff telephoned Cornerstone on February 1, 2007, to determine why the 2004 Annual Report had not been filed. Cornerstone stated that significant miscommunication occurred between Cornerstone and the regulatory compliance firm it was using to file its regulatory forms. Cornerstone stated that it was under the impression that the firm was responsible for preparing and filing the reports. The firm thought that it was only responsible for preparing the reports for Cornerstone to file. Consequently, the 2004 Annual Report was not timely filed. Over the past several months, Cornerstone reports that it has been working diligently with its firm and this Commission to ensure that all filing requirements are met. Cornerstone is confident that the proper controls have been put in place to ensure that future reports are timely filed. Cornerstone followed up that telephone conversation with a letter received by the Commission on February 5, 2007, which explained the above and requested rescission of the Default Order.

   In addition, communications with Cornerstone revealed that the Formal Complaint was sent to the incorrect address. Commission staff discovered that the complaint was mailed by first class mail to Suite 203 instead of Suite 303. This ministerial error was another reason why Cornerstone failed to respond to the complaint.

   Based upon the foregoing, we will grant Cornerstone's request for rescission. Because the complaint was sent to the wrong address, we will exercise our discretion and not require Cornerstone to pay the $250 late-filing fee. However, we caution Cornerstone that in the future annual reports must be timely filed. We also emphasize that all Commission correspondence must be answered in a timely manner. The Commission hereby puts Cornerstone and the rest of the industry on notice that we will not hesitate to invoke our authority under the Public Utility Code to ensure timely compliance with our regulations and orders including the ordering of such other remedy as the Commission may deem appropriate; Therefore,

It Is Ordered That:

   1.  The Default Order entered November 15, 2006 against Cornerstone Telephone Co., LLC at this docket is hereby rescinded.

   2.  The certificate of public convenience held by Cornerstone Telephone Co., LLC at A-311316 is hereby reinstated.

   3.  A copy of this order be published in the Pennsylvania Bulletin.

JAMES J. MCNULTY,   
Secretary

[Pa.B. Doc. No. 07-476. Filed for public inspection March 16, 2007, 9:00 a.m.]


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