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PA Bulletin, Doc. No. 14-1233


STi Prepaid, LLC

[44 Pa.B. 3479]
[Saturday, June 7, 2014]

Public Meeting held
May 22, 2014

Commissioners Present: Robert F. Powelson, Chairperson; John F. Coleman, Jr., Vice Chairperson; James H. Cawley; Pamela A. Witmer; Gladys M. Brown

STi Prepaid, LLC; A-311443; A-311443F0002; A-311125F2000

Tentative Order

By the Commission:

 STi Prepaid, LLC, (STi Prepaid), whose utility code is 311443, was authorized by the Commission to provide interexchange reseller services by order entered August 14, 2007, at Docket Nos. A-311443, A-311443F0002, and A-311125F2000.

 Commission records reveal that STi Prepaid is delinquent in the amount of $1,610 for annual assessment for the fiscal year 2011-2012. STi Prepaid is also delinquent in its assessment to the Pennsylvania Universal Service Fund (PA USF), in the amount of $7,053.45.

 On July 18, 2012, the Commission's Bureau of Investigation & Enforcement (I&E) served a complaint alleging that STI Prepaid, LLC violated Section 510 of the Public Utility Code, 66 Pa.C.S. § 510, for failing to pay the Commission's assessment for the 2011-2012 fiscal year. The complaint alleged that STI Prepaid, LLC owes $1,610 in unpaid assessments and levied a civil penalty of $240 for failing to timely pay the assessment.

 Thereafter, on September 5, 2012, Vivaro Corporation (Vivaro), the parent company of STI Prepaid, LLC, sought protection from the Bankruptcy Court and filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court for the Southern District of New York, Case No. 12-13810-mg.

 As a result of Vivaro's bankruptcy filing, I&E's complaint was subject to the automatic stay provisions of the Bankruptcy Code pursuant to 11 U.S.C. § 362(a). Accordingly, on November 21, 2012, I&E filed a petition for leave to withdraw its complaint against STi Prepaid, pursuant to 52 Pa. Code § 5.94.

 Then, by letter dated April 4, 2014, STi Prepaid informed the Pa USF that on February 7, 2013, STi Prepaid ceased operations and transferred substantially all of its assets pursuant to a sale under Section 363 of the United States Bankruptcy Code, 11 U.S.C. § 363, and approved by the U.S. Bankruptcy Court for the Southern District of New York. This letter further stated that since the company no longer exists, it no longer has a need for its certificate of public convenience.

 Based upon the information above, STi Prepaid is no longer a public utility. To confirm STi's activity status, Commission staff researched the FCC Form 499 website, which revealed that STi Prepaid is no longer active as of February 7, 2013.

 The Commission puts 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. 66 Pa.C.S. §§ 504, 505, 506, and 3301. Based on the above facts, we tentatively conclude that it is appropriate to revoke STi Prepaid's certificate of public convenience without the necessity of a formal complaint as being in the public interest. Where a company does not provide utility service, there is no reason to maintain a certificate of public convenience for that company; Therefore,

It Is Ordered That:

 1. Revocation of STi Prepaid, LLC'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 STi Prepaid, LLC, utility code 311443 at Docket Nos. A-311443, A-311443F0002 and A-311125F2000 is cancelled and that the dockets may be closed.


[Pa.B. Doc. No. 14-1233. Filed for public inspection June 6, 2014, 9:00 a.m.]

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