2. Background
StormTel, formerly known as Z-Tel Inc, is a Nevada corporation authorized to do business in California. StormTel was granted a certificate of public convenience and necessity to provide interLATA and intraLATA telecommunications services within California in Decision (D.) 97-09-070.
The transaction submitted for our approval makes StormTel an indirect subsidiary of Progressive Telecommunications Corporation (Progressive). Progressive provides internet yellow pages, business-to-business e-commerce, telecommunications services, and computer telephony. Progressive's common stock is publicly traded on the NASDAQ stock exchange. On January 25, 1999, CCC Merger, a subsidiary of Progressive, entered into an agreement with CCC Communications Corp., the parent company of StormTel. Under that agreement, CCC Merger acquired control of CCC Communications Corp.
On August 24, 1999, StormTel and CCC Merger (referred to collectively as "Applicants") jointly filed Application (A.) 99-08-052 for Commission approval of the previously described transaction as it pertained to StormTel. There were no protests to the application. On December 17, 1999, assigned Administrative Law Judge (ALJ) Kenney issued a ruling that required Applicants to amend A.99-08-052 to correct various deficiencies in the application. The amendments were filed on March 10 and May 23, 2000.
In their amended application, Applicants state that control of StormTel had been transferred to CCC Merger prior to the Application being filed. Applicants, therefore, request nunc pro tunc1 authority for the transfer of control. Applicants state that there will be no changes in the operations of StormTel as a result of the transfer of control, and that StormTel will continue to operate in California under the same name. Applicants also claim that service provided to StormTel's California customers will not be adversely affected by the transfer. Finally, Applicants claim that California consumers will benefit from the transfer due to lower prices and new products.
1 The phrase "nunc pro tunc," meaning "now for then," refers to those acts which are allowed to be done at a later time "with the same effect as if regularly done." (Blacks Law Dictionary (4th Revised ed. (1968), p. 1218).)
