PUC approves Grasshopper Group certificate with $25,000 bond after finance questions

The South Dakota Public Utilities Commission granted Grasshopper Group LLC a certificate of authority to provide interexchange telecommunications services in South Dakota, requiring the company to post a continuous $25,000 performance bond to protect customers.

Grasshopper’s counsel, Lisa Peters of QTech Rock LLP, told the commission the company had answered multiple staff data requests and had demonstrated it meets managerial, technical and financial requirements. Staff recommended approval with the bond because Grasshopper requires advance payments for international calling.

Commissioners pressed company representatives on financial viability. Chairman Nelson read a confidential data‑request question on whether Grasshopper needed to expand into South Dakota despite unproven profitability elsewhere and said the staff filing did not make the case publicly. John Markey, a company finance representative, said the consolidated financial statements include non‑cash charges and carrying costs associated with private‑equity ownership but that on an operating basis the company generates enough cash to service debt.

Commissioner Feagin moved to grant the application with the staff‑recommended $25,000 continuous bond; the motion passed unanimously with Commissioner Hansen, Commissioner Feagin and Chairman Nelson voting yes. The commission directed staff to work with Grasshopper to ensure bond documentation is posted and complete.

The commission did not take additional action on confidential filings; Grasshopper offered to provide further confidential financial details if the commission desired more information before a future meeting.