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PA Bulletin, Doc. No. 17-946

NOTICES

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Discount CLEC Services Corporation

[47 Pa.B. 3161]
[Saturday, June 3, 2017]

Public Meeting held
May 18, 2017

Commissioners Present: Gladys M. Brown, Chairperson; Andrew G. Place, Vice Chairperson; John F. Coleman, Jr.; Robert F. Powelson; David W. Sweet

Discount CLEC Services Corporation; A-2014-2441182

Tentative Order

By the Commission:

 Discount CLEC Services Corporation (Discount CLEC or Company), utility code 3116886, is a Competitive Local Exchange Carrier (CLEC) certificated by this Commission by Order entered July 1, 2015, at Docket No. A-2014-2441182.

 On February 14, 2017, the administrator for the Pennsylvania Universal Service Fund (PA USF) emailed the Commission's Bureau of Technical Utility Services (TUS). Included in PA USF's email was a chain of communications wherein John Cory, who was the President of Discount CLEC, according to the Company's application filed August 13, 2014, stated that he was no longer employed by the Company, and that Discount CLEC would not be submitting its PA USF remittance for 2017 because the Company was in Chapter 11 bankruptcy had no funds to make any payments. Mr. Cory stated that Discount CLEC filed for Chapter 11 bankruptcy in Newark, New Jersey, on September 14, 2016.1 In response to PA USF's email, Commission staff emailed Mr. Cory to ascertain whether Discount CLEC intended to file an Application for Abandonment, and included an abandonment package and contact information. Mr. Cory asked Commission staff to file the application on behalf of the Company instead since there were no employees remaining at Discount CLEC. When staff requested contact information for the bankruptcy attorney handling Discount CLEC's bankruptcy proceeding, Mr. Cory responded that the attorney wanted no further involvement with the case. Mr. Cory stated that there was nothing further he could do to assist the Commission.

 Neither the Commission nor its staff is positioned to file an application on behalf of a jurisdictional entity. Indeed, the request from Mr. Cory that the Commission do so was improper. Even more egregious, however, is the Company's cessation of service and filing for bankruptcy without providing notice to the Commission and complying with all applicable regulations. This action alone might warrant the Commission's revocation of Discount CLEC's certificate on grounds other than the Company's current financial condition. See 66 Pa.C.S. §§ 504, 505, 506, 1102, and 3301. Nonetheless, because information was provided to the Commission and verified by staff that Discount CLEC is no longer in the business of providing regulated utility service for which it was certificated, the Commission is positioned to take action on that entity's certificate. In this case, where the Company is no longer providing utility service to the public, and indeed by its actions has shown complete disregard for the Commission's regulations, there is no reason to maintain Discount CLEC's certificate of public convenience.

 Currently, there are no informal or formal complaints pending against Discount CLEC before the Commission. However, we do not know what accommodations, if any, Discount CLEC made for its existing customers and, as stated, the Company is out of business. Based on these facts, we tentatively conclude that it is appropriate to revoke Discount CLEC's certificate of public convenience as being in the public interest. Furthermore, the Commission may take other appropriate action, including the imposition of penalties under 66 Pa.C.S. § 3301, if Discount CLEC seeks relief from this Tentative Order; Therefore,

 It Is Ordered That:

 1. Revocation of Discount CLEC Services Corporation's certificate of public convenience is hereby tentatively approved as being in the public interest.

 2. The Secretary serve a copy of this Tentative Order upon the Office of Consumer Advocate, the Office of Small Business Advocate, and the Bureau of Investigation & Enforcement, and also cause a copy of this Tentative Order to be published in the Pennsylvania Bulletin with a 30-day comment period.

 3. Absent the filing of adverse public comment within 30 days after publication in the Pennsylvania Bulletin, the Bureau of Technical Utility Services shall prepare a Final Order for entry by the Secretary and shall advise the affected Bureaus within the Commission in writing that the certificate of public convenience held by Discount CLEC Services Corporation, utility code 3116886, is cancelled and the case may be closed.

 4. Upon entry of the Final Order described in ordering Paragraph No. 3 above, Discount CLEC Services Corporation's name will be stricken from all active utility lists maintained by the Commission's Bureau of Technical Utility Services and the Assessment Section of the Bureau of Administration, and the docket shall be closed.

ROSEMARY CHIAVETTA, 
Secretary

[Pa.B. Doc. No. 17-946. Filed for public inspection June 2, 2017, 9:00 a.m.]

_______

1  The Company gave no notice to the Commission that it had filed for bankruptcy. Discount CLEC's bankruptcy proceeding history can be found at: http://www.open-public-records.com/court/new-jersey-15330618.htm.


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