Press Release

PUC Approves Merger of Denver and Ephrata Telephone Co. Entities and Windstream Corp.

Published on 11/6/2009

Filed under: Telecommunications

HARRISBURG – The Pennsylvania Public Utility Commission today approved the merger of Denver and Ephrata Telephone and Telegraph Co., Buffalo Valley Telephone Co. (BVT), The Conestoga Telephone and Telegraph Co. (CTC) and D&E Systems Inc. to Windstream Corp.

The Commission voted 4-0 to approve the joint petition for settlement, submitted by the companies, the Commission’s Office of Trial Staff, the Office of Consumer Advocate and the Office of Small Business Advocate. 

Although the D&E entities will become subsidiaries of Windstream as a result of the merger, the D&E entities will continue to exist in their current corporate form, with the exception of a potential name change.  According to the company, the transaction will not result in any transfer of assets or facilities in Pennsylvania and will be seamless to customers, who will continue to receive service from the same local company at the same terms and conditions as prior to the transaction.  

The Commission found that the merger will be beneficial for Pennsylvanians in several ways, including:

The average rate caps established in the merger will provide for rate stability and encourage efficient investment and operation on the part of the companies. These average rate caps will have beneficial effects for the end-user consumers of both D&E companies’ and Windstream regulated operations in Pennsylvania.

The D&E entities will be afforded access to the expanded resources of the Windstream corporate group and the ability to focus on retaining customer base through new business opportunities and expansion of existing services;

D&E, BVT and CTC will not protest a qualified request for a certificate of public convenience or challenge a qualified applicant’s right to interconnect, merely on the basis that an applicant plans to provide wholesale services; and

The combined companies’ operating effectiveness and efficiency will be aided by its ability to utilize the assets and adopt the best practices of both companies including service quality.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket Nos. A-2009-2109528; A-2009-2109530; A-2009-2109531; and A-2009-2109532

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