Donobi still in danger of Zipp disconnect
Grant County PUD requiring Bremerton-based company to pay more than $200,000 in bills
EPHRATA — A Bremerton-based service provider is still in danger of losing service to Grant County's fiber optic network.
Donobi, Inc. Chief Executive Officer Bill Wright spoke to the Grant County Public Utility District commission Monday, hoping to find a solution to the company's debt problems. PUD officials answered that they cannot make an exception to their policy for one service provider.
The PUD is requiring the Donobi to pay more than $200,000 in payments and a deposit by next Friday. PUD documents indicate that the utility will disconnect Donobi's subscribers if it does not receive complete payment of $211,481.39 before Feb. 11.
The need for payment was triggered when Donobi's service provider credit score dropped below a level accepted by PUD policy. PUD officials said that credit rating is based upon a customer service policy enacted by the commission last year.
"We're asking for some time to work through it," Wright said, "we feel the demand of a 30-day notice to pay a substantial deposit is pretty encumbering."
Wright told the commission that it might take longer than the Feb. 11 deadline to resolve the issue, and asked the commission for some time beyond the deadline.
Wright told the commission that Donobi was excited about the long-term impacts of fiber, and continues to support the fiber optic network in Grant County. He said, however, that short-sighted decisions are leading it to failure.
Donobi has secured a funding source that would bring the company in excess of $5 million, but said the Securities and Exchange Commission has to review and approve the funding. Wright said that process is still going on.
Donobi had about 25 percent of its operations in Grant County, but Wright said after addressing the commission that the company has scaled back because of issues with the video head end and stalled subscriber growth from recent rate increases.
A letter sent to Donobi on Jan. 11 from PUD Fiber Account Manager Eric Briggs said that part of the $211,481.39 due is a deposit of $96,806.80. Briggs said in the letter, per customer service policies, the deposit is a calculation of an amount equal to 350 percent of the average monthly bill for the last 12 months.
Wright said the company will continue to pay as it has, adding that it has paid all finance charges levied against them. Wright said also that Donobi has acquired other service providers and assumed and paid the debt of those providers.
Wright said after addressing the commission that there are other ways to resolve the deposit situation other than bringing in a cashier's check in 30 days.
"We're not asking for special favors," Wright told the commission, "we're looking to resolve the issue."
The utility is operating under its customer service policy, Telecommunications Director Larry Jones told Wright during the meeting, and said he didn't know if the PUD could give Wright an answer to his problems that day. Wright responded by saying Donobi didn't necessarily need an answer Monday.
PUD Commissioner Greg Hansen told Wright during the meeting that all service providers are under the same requirements, but Wright responded by saying that he wasn't sure other service providers have been dealt the same in recent years.
PUD commission President Bill Bjork said the past is the past, and told Wright that he believed PUD staff had followed the proper procedures with regard to Donobi's rating. He added that the utility has had several service providers who have had to adhere to the customer service policy and make a deposit.
The PUD's customer service policy is clear, PUD attorney Ray Foianini told the commission, and said it would take an commission action to alter that policy.
"As a practical matter," Foianini said later in the meeting, "staff is not going to deviate from your policy."
Foianini told the commission that it can switch its policy, but added that the utility has been criticized by the State Auditor's Office for not implementing deposits for service providers.
Bjork said after the meeting that he felt the PUD should not deviate from its policy, saying that the more than 20 service providers should all be treated the same.
Wright said after addressing the commission that Donobi would continue and try to resolve the issue, and said service will continue in Grant County. He acknowledged that Donobi has triggered a deposit regulation, but said that regulation does not automatically trigger a shutoff from the Zipp system.
The intent of the company, Wright said, is to provide voice, video and Internet over the Zipp system, and also continue its services in other counties. Wright said the company should provide voice technology over the system sometime this year.
The PUD Commission will be in Washington, D.C. next week for a conference, and will not meet in Ephrata again until after the Feb. 11 deadline.