Source: FCC 214 Application

DukeNet Communications, LLC (DukeNet) and DukeNet OpCo, LLC (OpCo) (together, Applicants) filed an application pursuant to section 63.03 of the Commission’s rules to consummate a proposed transaction whereby the assets and customers of DukeNet will be assigned to OpCo.

DukeNet, a Delaware limited liability company, is wholly owned by Duke Energy Services, Inc. (DES), a Delaware corporation that is, in turn, wholly owned by Duke Energy Corp. (Duke Energy).  Duke Energy is a Delaware corporation and provider of electric power and natural gas distribution services.   Applicants state that no person or entity directly or indirectly owns 10 percent or more of the equity of Duke Energy.  DukeNet provides competitive local exchange and interexchange services primarily for carriers and business customers in North Carolina, South Carolina, Georgia, Virginia, Florida, Tennessee, and Alabama.

OpCo , a Delaware limited liability company with no previous operations or assets, is wholly owned by DukeNet Communications Holdings, LLC (HoldCo), a Delaware corporation that is wholly owned by DukeNet VentureCo, Inc. (DukeNet Venture), a Delaware corporation wholly owned by DES.  Pursuant to the terms of the proposed transaction, DukeNet will merge with and into OpCo with OpCo as the surviving entity holding all assets and customers previously held by DukeNet and operating under the name DukeNet Communications, LLC.  DukeNet Venture will then sell 50 percent of the equity interest in HoldCo to Alinda Telecom Investor I, L.P. (Alinda I) (29.6 percent) and Alinda Telecom Investor II, L.P. (Alinda II) (20.4 percent), both Delaware limited partnerships.  Duke Energy will indirectly own the other 50 percent of the equity interests in OpCo.  Alinda I’s ultimate parent is Alinda Infrastructure Fund II, L.P., and Alinda I’s general partner is Alinda Telecom I GP LLC, both Delaware entities.  Alinda II’s ultimate parent is Alinda Infrastructure Parallel Fund II, L.P., a Cayman Islands limited partnership whose  general partner is Alinda Parallel Fund GP II, L.P., a Delaware entity.  Alinda II’s general partner is Alinda Telecom II GP LLC, a Delaware limited liability company.  Applicants further state that Alinda Telecom Cayman LP, a Cayman Islands limited partnership is also affiliated with Alinda II.  They state that the Alinda entities do not have any other telecommunications interests.

Applicants assert that the proposed transaction is entitled to presumptive streamlined treatment under section 63.03(b)(2)(i) of the Commission’s rules and that a grant of the application will serve the public interest, convenience, and necessity.