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PA Bulletin, Doc. No. 01-2248


Default Order

[31 Pa.B. 6873]

Public Meeting held
November 30, 2001

Commissioners Present: Glen R. Thomas, Chairperson; Robert K. Bloom, Vice Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick

Pennsylvania Public Utility Commission Law Bureau Prosecutory Staff v. PT-1 Communications, Inc. (2001.0150); Doc. No. C-20016201; A-310443

Default Order

By the Commission:

   On October 2, 2001, the Law Bureau Prosecutory Staff instituted a complaint against PT-1 Communications, Inc. (Respondent), an interexchange (IXC) reseller certificated at A-310443. The Respondent is in the prepaid debit card business, and on February 2, 2001, it transferred its debit card assets to IDT Corporation. After that date, the Respondent ceased to have debit card activity and became an inactive company. On March 9, 2001, the Respondent filed for Chapter 11 bankruptcy protection; and beginning in May 2001, it failed to pay its monthly Universal Service Fund assessment.1

   In the complaint, Prosecutory Staff alleged that the Commission sent by certified mail a notice to the Respondent that its monthly Universal Service Fund assessments were overdue by 3 or more months. The complaint charged that the Respondent's failure to pay these assessments violates 52 Pa. Code §§ 63.161--63.171 and 66 Pa.C.S. §§ 3001--3009.

   The complaint sought an order from the Commission canceling the Respondent's certificate of public convenience for failure to pay its assessment and accrued late charges. The complaint was mailed by the Secretary's Bureau on October 3, 2001, and according to the postal return receipt, service was perfected on October 5, 2001. To date, more than 20 days later, no answer has been filed to the complaint and the assessments have still not been paid; Therefore,

It Is Ordered That:

   1.  The allegations in the Law Bureau Prosecutory Staff's complaint are deemed admitted and the complaint is thereby sustained.

   2.  The Secretary serve a copy of this Default Order upon all jurisdictional telecommunication carriers, the Office of Consumer Advocate, the Office of Small Business Advocate, the Office of Trial Staff and the Attorney General's Bureau of Consumer Protection, and also cause a copy of this Default Order to be published in the Pennsylvania Bulletin with a 20-day comment period.

   3.  Absent the filing of adverse public comment, 30 days after publication in the Pennsylvania Bulletin and without further action by the Commission, the certificate of public convenience held by PT-1 Communications, Inc. at Docket No. A-310443 shall be canceled, and the company's name stricken from all active utility lists maintained by the Tariff and Annual Report Section of the Commission's Bureau of Fixed Utility Services and the Assessment Section of the Bureau of Audits.


[Pa.B. Doc. No. 01-2248. Filed for public inspection December 14, 2001, 9:00 a.m.]


1 Neither section 362 (automatic stay provision) nor section 525 (prohibiting governmental units from revoking licenses) of the Federal Bankruptcy Code are applicable here because the debt in question is clearly post-petition having arisen after the filing of the bankruptcy petition. 11 U.S.C.A. §§ 362 and 525. The debt, therefore, is not dischargeable under the bankruptcy laws. The instant matter is clearly distinguishable from Nextwave Personal Communications, Inc. v. F.C.C., 254 F.3d 130 (D.C. Cir. 2001), which held that the Federal Communications Commission could not cancel its broadband personal communications service licenses issued to the debtor for failure to make its pre-petition installment payments for the licenses. In so holding, the court relied on section 525 of the Bankruptcy Code, finding that the missed payments were dischargeable debts under the bankruptcy law.

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