Sept. 22, 2006 Originally slated to be a docket update on Vitelco's financial viability and other related company issues for the benefit of new Public Service Commission members, Friday's PSC workshop instead turned into a friendly, first-name discussion of the company's challenges in providing phone service to its 61,000 customers.
The original agenda, sent Sept. 13, called for discussion of docket 558 — Vitelco's financial viability and included the Source's request for the utility's audited financial statements, a report on preferred stock issued by Vitelco (used to put a down payment on the purchase of a Belize phone company) and an update on the forensic accountant's report.
Also on the agenda was a request from Wireless World (now Choice Communications) for interconnectivity.
Two weeks ago in an interview leading up to the first meeting held on Vitelco matters since March, PSC Chairwoman Alecia Wells said all these matters and more would be addressed at the three-day workshop at the Westin Resort on St. John, designed to bring commissioners up to date on matters before the PSC (See "PSC Needs Answers on Variety of Vitelco Matters, Chairwoman Says").
However, on Thursday evening a new agenda was faxed to the media that changed the agenda to a "report on acquiring services, reporting outages, general information regarding communications." The only other item was "Status update Court Cases/Actions; pending litigation."
For the first part, Vitelco President David Sharp, along with Director of Commercial Operations Albert Bryan, spent nearly three hours chronicling the company's challenges and touting its accomplishments.
Sharp did say several times that the company was not doing as well to meet customer needs as it would like to, however. "I think we're doing better," he said, "but we're not there yet."
Commissioners and PSC staff brought up several complaints heard from customers, including the time it takes for phone installation or repairs, the problems of long lines in the business office and the lack of accurate information being given to customers.
Sandra Satorie, PSC assistant executive director, asked Sharp if customers should rely on information provided by repairmen when they are in the field.
"Probably not," he said, adding that the repair center has the "ultimate responsibility" for disseminating information about repairs.
Bryan told commissioners the average repair time was two to three days for residential phones and one to two days for commercial lines.
As for the ubiquitous "all circuits are busy" message that customers trying to reach cell phones encounter daily, Sharp said, "Your cell phone providers have not provided enough trunk lines to service their customers."
Both Bryan and Sharp laid the blame for other problems at the feet of ratepayers.
A message that comes up saying a special feature code has been entered improperly comes from "fat fingers" or else from dialing too quickly. Sharp said in those cases, where numbers are improperly dialed or dialed too quickly, "The switch doesn't know what you want to do."
As for troubleshooting, Bryan said, "People don't know where they live especially northern customers because they use route numbers," to give directions making it difficult for Vitelco workers to find them.
According to Bryan, it is traditional in the territory to give directions based on the color of a house, or where a particular tree is.
The two took turns describing severe weather conditions, accidents, vandalism, construction mistakes, and vermin that make Vitelco's job "a nightmare."
"Anybody who wants to put telephone cable in the V.I. is nuts," Sharp said.
He also said the PSC could make whatever demands it wanted to of the regulated utility, but "You cannot direct Wall Street … you cannot direct investors to put their money into development."
No mention was made either by Sharp or the PSC's newly contracted legal counsel Jeffrey Moorhead about $85 million in preferred stock issued to make infrastructure improvements to the phone company. Against the orders of the PSC, at least $27 million and maybe as much as $67 million of that money went to fund the acquisition of the Belize venture. The shareholders have since filed two lawsuits against Vitelco. ( See "New Suit Against Prosser's ICC Calls Company's Conduct 'Evil'").
As for other legal pending matters, Moorhead spent 10 minutes reviewing the status of Vitelco's legal challenges. He said the agenda was changed because he "could not jeopardize the commission," by discussing matters that were in litigation.
One of the matters facing Vitelco, and assumably the PSC, is the matter of Vitelco's parent corporation filing bankruptcy, along with its owner, Jeffrey Prosser. (See "ICC, Prosser File for Bankruptcy").
Moorhead reported that the bankruptcy matter was very likely being settled in a hearing in the states taking place even as he was speaking. He said the company, "has succeeded in obtaining financing to pay its debt and it looks very promising." Moorhead said it was the board's position to "support any settlement that is offered … to avoid receivership."
He was clear that "ICC [Innovative Communication Co. LLC] is in bankruptcy, not Vitelco."
He also justified the commission's rubber stamp of Vitelco's application last week for $11 million in Universal Service Funds, despite the absence of any audited financial reports supporting the request and need for the funds having been submitted to commissioners.
"To not have done so would be to turn our backs on $9 million [the application was actually for $11 million]."
He also said, "The PSC has no ability to say how the funds can be used."
As for the Source request for copies of the company's audited financial statement, which are deemed public documents under the V.I. Code, Moorhead said he and PSC consultant Gregory Mann have submitted written opinions to the commissioners and they would be discussing the matter in executive session at a later date.
Frederick Watts, former PSC counsel, had submitted a previous opinion to the commissioners saying it was his opinion that the commission had to release the financial reports under the law and, in fact, an order was issued last year saying commissioners were not allowed to accept the financial reports under confidentiality agreements.
However, former chairman Alric Simmonds did accept the 2004 audit financial reports under a confidentiality agreement. Simmonds was twice denied renomination to the board by senators and later withdrew his name. Watts was replaced by Moorhead in June.
In closing Moorhead said, "The next meeting should be much more substantive."
In addition to Wells, commissioners Raymond Williams, Sirri Hamad, Thomas Jackson, Joseph Boschulte, Verne David, and Donald Cole were in attendance.
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