Minn. PUC Agrees to Probe LTD Broadband
The Minnesota Public Utilities Commission agreed unanimously to open a proceeding on whether it should revoke LTD Broadband’s eligible telecom carrier (ETC) status for Rural Digital Opportunity Fund support (docket M-21-133). Minnesota’s Commerce Department and attorney general’s office had recommended…
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opening the review due to concerns raised in a petition by the Minnesota Telecom Alliance and the Minnesota Rural Electric Association and in local government comments (see 2206090024). At the PUC’s livestreamed meeting Thursday, commissioners supported referring the matter to the Office of Administrative Hearings. PUC members requested proceedings be conducted speedily and include discovery and cross-examination of expert witnesses. LTD Broadband tried to persuade commissioners not to investigate at the meeting. LTD is in compliance and on track with obligations in Minnesota, said outside counsel Andy Carlson of the Taft firm. “There is nothing, other than legal or procedural arguments from other states, that is different” from when the PUC last year decided to approve ETC designation, he said. Revoking ETC status would jeopardize $311 million in federal funding, Carlson added. Commissioner Joseph Sullivan disagreed. “It seems like a lot has changed,” if it’s true that three other state commissions rejected ETC requests and LTD defaulted on 30% of bid locations, he said. Carlson said he meant nothing is different in Minnesota. Commissioner John Tuma said the public-interest reasoning for considering a revocation is that LTD having RDOF funding is blocking others from applying for other government cash in the same areas. Minnesota is always allowed to take a second look at ETC designations, which aren’t static, said Assistant Attorney General Kristin Berkland. Chair Katie Sieben raised concerns that there would be no guarantee Minnesota would win back the $311 million if it rejected LTD. Berkland countered that it would also be problematic if that money came into the state, but LTD didn’t carry out its commitments. Democratic Minnesota Gov. Tim Walz's broadband task force supported opening the proceeding in a Tuesday letter to the commission.