Feb. 21, 2001 – After declaring in January that the Public Services Commission rate investigation of Innovative Telephone, formerly Vitelco, was "on track and moving at the speed we expect it to," Fred Watts, PSC legal counsel, reported Wednesday that the investigation has "slipped backward."
Watts, who is the hearing examiner for the rate investigation, reported at the PSC's regular monthly meeting that delays in obtaining additional documents and the Christmas holidays have slowed the process, leaving it "30 days behind."
Samuel Ebbesen, Innovative Telephone president, told the commission, "ICC is a small organization," referring to the telephone company's parent company, Innovative Communication Corp., "but we intend not to preclude the investigation taking place." He said ICC is providing Watts with all the documents that he needs.
The PSC chair, Desmond Maynard, asked Watts for a definite timetable for the investigation. Watts said he would not be available until March 4, which Maynard set for a deadline on the schedule. Sen. Emmett Hansen II, a non-voting commission member, was perplexed. "Why do the parameters keep changing?" he asked. "Do we need specific deadlines for specific tasks?"
The investigation stems from a long battle waged by Sen Adlah "Foncie" Donastorg to look into Vitelco's rates and hiring practices. The Senate finally mandated the investigation last year via a law calling for a PSC investigation of all public utilities every two years. Gov. Charles W. Turnbull signed that bill into law after having vetoed an earlier one calling for an investigation of ICC only.
AUS Consultants, a mainland firm contracted last year by the PSC to do rate investigations of Innovative Telephone and the Water and Power Authority, and its subconsultants, including Ernst and Young, and other technical consultants assist the hearing examiner in carrying out the phone company rate investigation.
No action on local competition reconsideration
In other business in its daylong deliberations Wednesday, the commission heard heated testimony on Wireless World's request to enter the local phone market and end the monopoly held by Innovative. Gregory Vogt, ICC 's Washington-based legal counsel, challenged the request by Wireless World attorney Darryl Dodson, of the local firm Moore, Dodson and Russell, for reconsideration of the application, which the PSC rejected last September.
Four of the seven voting members of the PSC have changed since that vote was taken. Only one of the four who voted to deny the Wireless World request remains on the commission.
"Why are we here again today? Reconsideration was denied," Vogt argued. He called Dodson's request "burdensome and egregious."
Dodson maintained he had not been notified of Wednesday's hearing in the prescribed period of time, which he said was the same thing that had occurred last year, not allowing him adequate time to bring expert witnesses to testify.
The federal Telecommunications Act of 1996 opened up local telecommunications markets to competition. The act requires existing carriers, upon reasonable request, to interconnect directly with the facilities and equipment of other carriers.
Wireless World sought to enter the V.I. market last summer; in order to do so, it needed an interconnection agreement with Innovative. Because the two firms couldn't work out an agreement, the PSC appointed Watts to oversee arbitration.
Dodson said Wireless World is appealing in Territorial Court the substantive result of the PSC's refusal to lift Vitelco's "rural exemption." If the exemption were rescinded, that would allow Wireless World interconnection rights. Wireless World also has brought a case in Territorial Court challenging the PSC's assessment of $100,000 to the company for costs of the investigation. "There is no basis for assessing that cost," Dodson said. No date has been set for either case, he said.
Sen. Donald "Ducks" Cole, the other non-voting commission member, asked what Dodson's motive was in taking the matter to court. "To preserve my client's legal rights," Dodson said. "The 11th amendment [of the U.S. Constitution] says you can sue a state or territorial regulatory board."
The commission voted to defer action on the matter Wednesday and await until the court renders decisions. Voting for the deferral were Jerris Browne, Verne David, Valencio Jackson and Alric Simmonds. Maynard abstained, and Luther Renee and Alecia Wells were absent.
The commission also looked into ICC's Lifeline Link-up telephone service, which Innovative subsidizes for low-income consumers. Ebbesen said the service has 415 users now, adding that ICC needs to advertise the service. Maynard suggested that the Human Services Department should have a listing of low-income families who would want to avail themselves of the service. Commission members also asked Ebbesen for an update on the service's funding created by an 1998 federal settlement agreement which Ebbesen said he would "move on" immediately.
Digital plans for both cable TV companies
ICC was still in the limelight as Innovative Cable TV service in both districts came under fire. Adrian LaBennett has been general manager and chief executive of St. Croix Cable TV and has just replaced Andrea Martin in the same position at St. Thomas-St. John Cable TV as well. Under strenuous questioning by Jackson, a St. Croix resident, LaBennett failed to provide a satisfactory answer as to why St. Croix Cable users pay the same rates as St. Thomas but get only "half the service." Maynard directed Watts to do a tariff study of both companies.
LaBennett meanwhile told the commission that both cable companies will be switching to a digital system planned for a summer launch. He said this will mean between 40 and 50 new channels for customers at no increased cost, other than for an increase in the converter box rental.
The commission deferred action on a status report of a ferry rate investigation because hearing examiner Willis Styllis asked to have Campbell Malone, a certified public accountant, removed from the process. Malone was not able to attend Wednesday's meeting.
The commission also heard several matters relating to the Water and Power Authority.
