Ramsey Emergency Services, Inc. v. Illinois Commerce Commission

854 N.E.2d 809, 367 Ill. App. 3d 351, 305 Ill. Dec. 217, 2006 Ill. App. LEXIS 789
CourtAppellate Court of Illinois
DecidedAugust 31, 2006
Docket1-05-2518
StatusPublished
Cited by7 cases

This text of 854 N.E.2d 809 (Ramsey Emergency Services, Inc. v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramsey Emergency Services, Inc. v. Illinois Commerce Commission, 854 N.E.2d 809, 367 Ill. App. 3d 351, 305 Ill. Dec. 217, 2006 Ill. App. LEXIS 789 (Ill. Ct. App. 2006).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

Petitioner Ramsey Emergency Services, Inc. (Ramsey), appeals from an order of the Illinois Commerce Commission (Commission or ICC) denying its application to operate as a “Competitive Local Exchange Carrier” (CLEC) providing enhanced 9-1-1 emergency telephone services (E911) in Illinois. For the reasons that follow, we affirm.

Ramsey is an Iowa corporation formed in 2000 with its headquarters in Williamsburg, Iowa. In May 2004, Ramsey applied to the ICC for a “Certificate of Interexchange Service Authority” to provide interexchange facilities-based telecommunications services pursuant to section 13 — 403 of the Illinois Public Utilities Act (Act), to provide resold local and interexchange telecommunications services pursuant to section 13 — 404 of the Act, and to provide local facilities-based telecommunications services pursuant to section 13 — 405 of the Act. 220 ILCS 5/13 — 403, 13 — 404, 13 — 405 (West 2004).

E911 services transmit the caller’s telephone number to the “Public Safety Answering Point” (PSAP) receiving the call and cross-reference the number in an address database to determine the caller’s location. The system then displays the caller’s location on a video monitor for the 9-1-1 dispatcher, allowing him or her to direct emergency personnel to aid a caller who may not be able to audibly relate his or her location. E911 calls are transmitted on a selective router switch from the caller to a specific answering point designated by the relevant public safety agency, based on the caller’s location. A call travels from the caller’s home to an end office, which relays the call to the switch over selective router trunks, known as A Links. After the router switch determines which answering point ought to receive the call on the basis of the caller’s location, the call is routed to the appropriate answering point over circuits known as B Links.

Illinois Bell Telephone Company (SBC Illinois), the Illinois Telecommunications Association (ITA), the St. Clair County Emergency Telephone Systems Board (Board), and the Illinois Chapter of the National Emergency Number Association (INENA) all filed petitions for leave to intervene in Ramsey’s application. The administrative law judge (ALJ) granted all petitions except for the one filed by INENA.

The ALJ assigned to the case scheduled a hearing for September 2004.

In prefiled testimony, Michael Ramsey, Ramsey’s president and chief executive officer, attested that the company was authorized to do business in Illinois and sought to provide competitive E911 services to individual counties in the state. He stated that Ramsey was qualified to do so based on its provision of similar services to counties in Iowa, Missouri, and Nebraska, that Ramsey intended to purchase underlying A Links and B Links from facilities-based carriers such as SBC and Verizon, and would construct its own facilities for maintenance and customer service. He asserted that Ramsey had the requisite managerial resources to provide E911 services based on his own qualifications and those of Mark Hixson, Ramsey’s vice president and chief financial officer, that Ramsey had the requisite technical resources based on its successful provision and maintenance of E911 services in several other states, and that Ramsey had the requisite financial resources based on its recent financial statements, reports, and projections.

ICC staff members filed testimony indicating that Ramsey had not submitted sufficient evidence of its financial, managerial, and technical abilities and resources to provide E911 services because it had not provided adequate answers to the staffs data requests, which specifically concerned the company’s financial resources.

In response to the ICC staffs concerns over Ramsey’s financial resources and suggestion that the company obtain a surety bond for each potential county it sought to service, Michael Ramsey responded that such a requirement would place an unreasonable burden on Ramsey and similar companies seeking to provide competitive E911 services in that obtaining a bond would require Ramsey to negotiate the terms of each bond with the ICC and delay its entry into the Illinois market, thereby hindering competition by limiting potential customers’ freedom of contract and by impeding Ramsey’s ability to market its services to other potential customers.

He also stated that Ramsey was familiar with the requisite technology inherent in E911 services and cited the company’s experience in operating and maintaining a selective router, trunk lines, and accompanying hardware and software serving over 280,000 citizens of Marion County, Iowa. He also stated that Ramsey planned to perform regular maintenance and provide redundant facilities to reroute 9-1-1 calls in the event of service interruption and presented ICC staff with copies of the company’s contingency plans and procedures.

Michael Ramsey also stated that transferring services from the current providers to Ramsey would not be problematic unless current providers failed to cooperate. He further testified that Ramsey would be able to provide the necessary infrastructure and to reconcile and maintain the software necessary to provide E911 services in Illinois, citing its successful provision of similar services to several counties in Iowa.

Hixson provided ICC staff with copies of Ramsey’s financial documents, including balance sheets, income statements, earnings statements, and cash flow statements prepared by the company’s accountants. He also presented pro forma projections of income and expenses and Ramsey’s business plan. Hixson also stated that Ramsey had acquired lines of credit from some of its suppliers as well as multiple banks. He explained that, because Ramsey would be providing a limited array of services in Illinois, it would require less capital investment than traditional facilities-based telecommunications providers and would have fewer customers.

ICC staff member Robert Koch testified that he and other staff had no objections as to Ramsey’s technical, financial, and managerial resources, but did express concern over the lack of a mechanism to transfer E911 services expeditiously in the event Ramsey ceased operations. Koch stated that compelling another provider to resume E911 services in such a contingency would prove difficult and that any interruption in emergency services could have dire effects on the communities Ramsey sought to serve. Koch and other staff recommended that Ramsey obtain a surety bond payable to each county it sought to serve to cover the costs of retaining the services of a replacement carrier.

Koch further stated that the certificates allowing Ramsey to provide E911 services should be issued, but that certain conditions should be met before allowing Ramsey to begin operations. ICC staff cited to previous orders where the ICC imposed operational conditions on utility providers in order to maintain statewide standards in telecommunications services. Koch justified the imposition of such conditions on Ramsey’s application because the application was unique in terms of Ramsey’s funding and ability to borrow in relation to other traditional, larger telecommunications providers.

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Cite This Page — Counsel Stack

Bluebook (online)
854 N.E.2d 809, 367 Ill. App. 3d 351, 305 Ill. Dec. 217, 2006 Ill. App. LEXIS 789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramsey-emergency-services-inc-v-illinois-commerce-commission-illappct-2006.