Thursday, May 02, 2024
63.0°F

Donobi service to continue on ZIPP

| February 11, 2005 8:00 PM

Brad W. Gary

Herald staff writer

PUD reviewing letter of credit from company

EPHRATA — Donobi subscribers need not worry about a shutoff of their services in Grant County.

The Bremerton-based service provider provides television and Internet service on Grant County's fiber optic Zipp network, and had been faced with a Friday shutoff. But Donobi Operations Manager Melissa Tippets said Thursday that the company has provided the Grant County Public Utility District with what it needs in order for the PUD to continue service.

"We gave them a letter of credit which is one of the options per their customer service policy," Tippets said.

PUD Fiber Account Manager Eric Briggs sent a letter to Donobi last month, telling the company that its service provider credit rating had dropped below a point acceptable by the PUD's customer service policy. Briggs said in that letter that the the company needed to pay in excess of $200,000 in payments and a deposit, in order for service to continue on the network past Feb. 11.

Briggs said in the letter that part of the approximately $211,000 payment included a deposit of $96,806.80, which is equal to 350 percent of the average monthly bill for the last 12 months. The PUD credit rating is based upon a customer service policy enacted by the PUD commission last year.

PUD Deputy Auditor Rhonda Kleyn told Donobi Chief Executive Officer Bill Wright in a letter this week that its service will continue, pending the review of the company which sent the letter of credit for the service provider. Donobi's letter of credit is from Pacific Northwest Asset Management, Inc. and the PUD said it has requested documentation from the company to complete its review.

Kleyn told Donobi that the PUD is currently completing a review of the financial status of Pacific Northwest Asset Management. Kleyn said that if the PUD finds the company's "credit to be satisfactory that should resolve the deposit issue."

Kleyn said however, that a cash deposit would be required if the PUD determines the company "is not sufficiently creditworthy."