Corporation Commissioners tee off on secrecy of rural phone companies

 

Corporation Commissioners remain perturbed by an April Oklahoma Supreme Court ruling and at least two of them voiced their displeasure again in Wednesday’s meeting.

The ruling concerned the Universal Service Fund and the court’s ruling concerning Dobson Telephone company’s challenge of the commission’s denial of more than $95,000 in 2017. The court remanded the case back to commissioners, leaving Commissioner Bob Anthony asking legal counsel if it meant the commission had to approve every request.

“What does this mean?” he asked of the attorney general’s office as well as the Corporation Commission’s counsel. “If we adopt these orders, are we taking a position telling staff to administer these requests?”

Commissioner Anthony once again voiced criticism of the secrecy surrounding the independent telephone companies that offer service to rural customers.  He remained a strong critic of information about the independent companies that is not considered public information and is withheld under regulations.

Information provided about the company’s payments is redacted when it comes to information they don’t want the public to know.

In a 2016 application of Medicine Park Telephone Company, documents of the request and testimony were redacted about the salaries paid to five corporate officers.

One witness testified that the salaries were “exorbitant” and the testimony reflecting how much went every month to the five officers was redacted with the word “CONFIDENTIAL.”

Anthony revealed he has asked Administrative Law Judges who hold hearings into funding requests to publicly ask information about the companies.

“How many company officers have the same last name? How many of those officers make $100,000 a year? How many employees do the companies have? How many customers do they have?”

That information is not available to the public  under protective agreements and Commissioner Anthony has long felt it should be, especially since state money is being distributed to the companies through the Universal Service Fund.

“I think that’s most worrisome,” added Anthony who felt that the commission should reopen one particular case that came out of the Supreme Court ruling.

“Do you feel comfortable going ahead with approving all seven?” he asked, referring to 7 Universal Service Fund requests on the Wednesday agenda.

“I don’t know if ‘comfortable’ is the right word,” answered Commission Chairman Todd Hiett who also expressed concerns about being forced into funding requests. “It’s very likely to be a runaway train. We’ve exhausted our resources and I certainly hope the legislature is paying attention to this. It’s a tremendous burden on rate payers.”

Jared Haines, Assistant Attorney General of Utility Regulations told the commission the economic impact of the Oklahoma Universal Service Fund is growing.

“It’s likely to grow from here. The burden on cell phone users is only going to grow,” he answered under questioning by the commission.  “We’re looking at demands growing and growing and growing.”

Customers of major phone companies help fund the Universal Service Fund to make sure rural phone companies get adequate service.

After lengthy discussion, the commission voted 2-1 to approve six of seven requests for OUSF funding. The request by Medicine Park Telephone company did not get approved.