Agenda ID # 8041

D R A F T

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Communications Division	RESOLUTION T- 17182
Program Management and Implementation Branch	November 21, 2008

R E S O L U T I O N

Resolution T-17182 Approval of California Advanced Services Fund (CASF) Unserved Area Applications

__________________________________________________________________

Summary

This Resolution adopts funding for broadband projects in unserved areas totaling $372,976 from the California Advanced Services Fund (CASF). The amount granted represents 40% of the total project costs of these unserved area applications filed in accordance with Resolution T-17143. The details of each project are shown in Appendix A and explained in the Discussion section of this resolution. The following table identifies the projects and the CASF funding amounts approved.

Name of Telephone Corporation	Project Name	CASF Funding
AT&T	Grenada	$57,596
AT&T	Hopland	$61,952
AT&T	Blanchard	$35,816
AT&T	Mount Wilson	$2,420
Verizon	Pinyon	$174,000
Frontier	Prattville	$41,192
TOTAL		$372,976.00

Background

On December 20, 2007, the Commission approved Decision (D.) 07-12-054 which established the two-year CASF program to provide matching funds of up to 40% of the total project costs for the deployment of broadband infrastructure in unserved and underserved areas in California. Resolution T-17143, approved on June 12, 2008, adopted the application requirements, scoring criteria for the award of funds, and a prescribed timeline for other filings and notifications including a projected Commission Meeting date for final approval of award(s). This same Resolution directed interested applicants, seeking funding for unserved projects, to file their project proposals and funding requests on July 24, 2008. Twenty-three (23) project proposals were received that sought CASF funding for unserved areas. Of these number, sixteen (16) were challenged by various parties contending that the areas proposed were already served. These challenged applications are under review and will be addressed at a later date. One (1) project proposed was not considered since the proponent was not a telephone corporation as defined under Public Utilities Code § 234.

The listed applications herein have not been challenged. Moreover, CD has determined that the specific Census Block Group (CBG) covering the proposed areas are qualified as unserved as defined in Res. T-17143. These projects are, therefore, recommended for approval and award of CASF funding.

Notice/Protests

The CGB list appeared by county on the Commission's CASF website page under UNSERVED areas proposed to be served as of July 24, 2008: Census Block Groups (CBGs). Of the CBGs covered by these projects, none was formally challenged by either existing service providers or other interested parties. Therefore, the Communications Division (CD) proceeded with the review and analysis of these project areas to verify that they were indeed unserved as of the applicants' filing date.

Discussion

This Resolution adopts a total of $372,976 in CASF funding support in this first phase of application filing reserved for unserved areas. The actual award amounts to these six (6) projects are described in detail in Appendix A.

For qualification purposes under the CASF program, unserved areas are defined as areas not served by any form of facilities-based broadband, or where Internet connectivity is available only through dial-up service or satellite. CD staff reviewed each project's eligibility in the unserved review phase through the analysis of required data submitted. These data include, but are not limited to: proof of CPCN registration; descriptions of current and proposed broadband infrastructure; Geographic Information System (GIS) formatted Shapefiles mapping the subject areas; assertion that the area is unserved; potential subscriber size and household incomes; project construction schedule; project budget; proposed pricing and commitment period for new subscribers; and, financial qualifications of the applicant. In addition, CD staff reviewed the Shapefiles submitted which mapped the broadband deployment proposed using United States 2000 Census data and the January, 2008, Broadband Task Force Report (BBTF) including its on-line maps, among others. Comparisons of submitted maps to that of the BBTF verified the existence or non-existence of broadband service as well as speeds in areas where broadband are available.

CD staff performed further verification when necessary with applicants which included the submission of additional data and/or meetings with the applicants in order to clarify their project proposals.

AT & T - Grenada, Pages A-1 and A-2 of Appendix A

AT&T submitted a project proposal for the Grenada area of Siskiyou County. AT&T plans to offer high speed, stand alone, internet access service, where technically feasible, using existing DSL technology and where it has wire line facilities. This project will be able to serve 275 households covering an area of 13.9 square miles in 5 CBGs. The 40% CASF subsidy for the project is $47,600 plus Contribution in Aid of Construction (CIAC) of $9,996 for a total CASF award of $57,596.

AT & T - Hopland, Pages A-3,3 and A-4 of Appendix A

AT&T submitted a project proposal for the Hopland area of Mendocino County. AT&T plans to offer high speed, stand alone, internet access service, where technically feasible, using existing DSL technology and where it has wire line facilities. This project will be able to serve 328 households covering an area of 13.9 square miles in 2 CBGs. The 40% CASF subsidy for this project is $51,200 plus CIAC of $10,752 for a total CASF award of $61,952.

AT & T - Blanchard, Pages A-5 7and A-6 of Appendix A

AT&T submitted a project proposal for the Blanchard area of Mariposa County. AT&T plans to offer high speed, stand alone, internet access service, where technically feasible, using existing DSL technology and where it has wire line facilities. This project will be able to serve 123 households covering an area of 13.9 square miles in 2 CBGs. The 40% CASF subsidy for this project is $29,600 plus CIAC of $6,216 for a total CASF award of $35,816.

AT & T - Mount Wilson, Pages A-7 7 and A-8 of Appendix A

AT&T submitted a project proposal for the Mount Wilson area of Los Angeles County. AT&T plans to offer high speed, stand alone, internet access service, where technically feasible, using existing DSL technology and where it has wire line facilities. This project will be able to serve 2 households covering an area of 2.1 square miles in 1 CBG. The 40% CASF subsidy for this project is $2,000 plus CIAC of $420 for a total CASF award of $2,420.

Verizon - Pinyon, Pages A-9 and A-10 of Appendix A

Verizon submitted a project proposal for the Pinyon Crest area of Riverside County. Broadband deployment using the backhaul from Palm Springs will be able to service 382 households covering an area of 27.02 square miles in 4 CBGs. This project is adjacent to an existing broadband service area (Palm Springs Canyon) which has speeds of between 5-10 Mbps. Without intersecting or overlapping with this adjacent service area, Verizon's Pinyon proposal will reach four (4) remote communities that currently do not have any broadband service. The 40% CASF subsidy for this project is $132,000 plus CIAC of 42,000 for a total CASF award of $174,000.

Frontier- Prattville, Pages A-11 and A-12 of Appendix A

Frontier submitted a project proposal for the Lake Almanor area of Plumas County. This Frontier broadband deployment will be able to service 171 households in the Prattville area of its Chester Exchange covering an approximately 2 square mile area in 1 CBG. This one CBG, CBG 060630005001, covers a subs-section of Prattville that currently does not have any broadband service. The 40% total CASF subsidy award for this project is $41,192.

Comments on Draft Resolution

In compliance with PU Code § 311(g), a notice letter was emailed on October 22, 2008 informing a) all applicants filing for unserved areas and b) parties on the service list of R.06-06-028 of the availability of the draft of this Resolution for public comments at the Commission's website http://www.cpuc.ca.gov/static/documents/index.htm. This letter also informed parties that the final conformed Resolution adopted by the Commission will be posted and will be available at this same website.

Responses to timely filed comments will be addressed in this resolution.

Findings

1. The California Advanced Services Fund (CASF) was implemented by Decision (D.) 07-12-054. The CASF was established as a two-year program that will provide matching funds of up to 40% of the total project costs for the deployment of broadband infrastructure in unserved and underserved areas in California.

2. Resolution T-17143 approved on June 12, 2008, adopts the application requirements and scoring criteria for the award of funds, a prescribed timeline for other filings and notifications including a projected Commission Meeting date for final approval of award(s). T-17143 directed interested applicants seeking funding for unserved projects to file their project proposals and funding requests on July 24, 2008.

3. A list of census block groups (CBGs) appeared by county on the Commission's CASF website page under UNSERVED areas proposed to be served as of July 24, 2008: Census Block Groups (CBGs). Of the CBGs in this Resolutions, none was formally challenged by either existing service providers or other interested parties. The Communications Division (CD) proceeded with its independent review and analysis of these project areas to verify that they were unserved as of the applicants' filing date.

4. Unserved areas are defined as areas which are not served by any form of facilities-based broadband, or where Internet connectivity is available only through dial-up or satellite service.

5. CD reviewed each application's eligibility in the unserved review phase through the analysis of required data submitted. These data include, but are not limited to: proof of CPCN registration; descriptions of current and proposed broadband infrastructure; geographic information system (GIS) formatted Shapefiles mapping the subject areas; assertion that the area is unserved; potential subscriber size and household incomes; project construction schedule; project budget; proposed pricing and commitment period for new subscribers; and, financial qualifications of the applicant.

6. Shapefiles, which mapped the broadband deployment, were reviewed by CD using sources including, but not limited to, the United States 2000 Census data and the January, 2008, Broadband Task Force Report and its available on-line maps. These maps helped to verify the existence of or non-existence of broadband service areas and broadband speeds, where available.

7. CD verified each project and, when necessary, requested additional information and/or meetings with applicants to clarify their project proposals.

8. After its review, CD determined that six (6) applications for unserved areas were eligible to receive funding under CASF.

9. The six projects proposed that have been found to be eligible for CASF funding are as follows:

Name of Telephone Corporation	Project Name	CASF Funding
AT&T	Grenada	$57,596
AT&T	Hopland	$61,952
AT&T	Blanchard	$35,816
AT&T	Mount Wilson	$2,420
Verizon	Pinyon	$174,000
Frontier	Prattville	$41,192
TOTAL		$372,976.00

10. A notice letter was emailed on October 22, 2008 informing a) all applicants filing for unserved areas and b) parties on the service list of R.06-06-028 of the availability of the draft of this Resolution for public comments at the Commission's website http://www.cpuc.ca.gov/static/documents/index.htm. This letter also informed parties that the final conformed Resolution adopted by the Commission will be posted and will be available at this same website.

11. Comments filed on a timely basis will be addressed by CD in this resolution.

12. The Commission finds CD's recommended CASF awards for unserved areas for the six (6) projects, as summarized in Appendix A of this Resolution, reasonable and consistent with Commission orders and should be adopted.

THEREFORE, IT IS ORDERED that:

1. The California Advanced Services Fund awards to six (6) projects for unserved areas, as described in the Discussion portion and summarized in Appendix A of this Resolution, are adopted.

2. The total approved CASF award of $372,976 for the six (6) unserved projects are as follows:

Name of Telephone Corporation	Project Name	CASF Funding
AT&T	Grenada	$57,596
AT&T	Hopland	$61,952
AT&T	Blanchard	$35,816
AT&T	Mount Wilson	$2,420
Verizon	Pinyon	$174,000
Frontier	Prattville	$41,192
TOTAL		$372,976.00

3. The program fund payment of $372,976 for the six (6) Commission approved unserved projects shall be paid out of the CASF fund in accordance with the guidelines adopted in Resolution T-17143.

This Resolution is effective today.

I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on November 21, 2008. The following Commissioners approved it:

PAUL CLANON Executive Director

APPENDIX A

Resolution T- 17182

Grenada Project Key Information

1	Project ID	ATT 2008-01
2	Project Name	Grenada
3	Project Plan	high speed, stand alone, internet access service, , where technically feasible using existing DSL technology and where AT&T-CA has wire line facilities
4	Project Size (in square miles)	13.9
5	Download speed	up to 1.5 MBPS
6	Upload speed	up to 384 KBPS
7	Location	Siskiyou
a)	Community Name	Grenada
b)	CBGs/Household Income	060930007014	$40,151
		060930007011	$45,482
		060930009004	$42,855
		060930007013	$51,969
		060930003003	$32,828
c)	Zip Codes	96038
		96094
		96097
		96034
		96064
8	Estimated Potential Subscriber Size
a)	Households	275
9	Deployment Schedule (from Commission approval)	14 - 15 months
10	Proposed Project Budget
	CASF (40%)	$47,600
	CIAC	$9,996
	Amount of CASF Funds Requested	$57,596

APPENDIX A

Resolution T- 17182

Grenada Project Shapefile

APPENDIX A

Resolution T- 17182

Hopland Project Key Information

1	Project ID	ATT 2008-04
2	Project Name	Hopland
3	Project Plan	high speed, stand alone, internet access service, , where technically feasible, using existing DSL technology and where AT&T-CA has wire line facilities
4	Project Size (in square miles)	13.9
5	Download speed	up to 1.5 MBPS
6	Upload speed	up to 384 KBPS
7	Location	Mendocino
a)	Community Name	Hopland
b)	CBGs/Household Income	060450118001	$43,086
		060450118002	$45,297
c)	Zip Codes	95449
		95482
8	Estimated Potential Subscriber Size
a)	Households	328
9	Deployment Schedule (from Commission approval)	14 - 15 months
10	Proposed CASF Funding
	CASF (40%)	$51,200
	CIAC	$10,752
	Amount of CASF Funds Requested	$61,952

APPENDIX A

Resolution T- 17182

Hopland Project Shapefile



APPENDIX A

Resolution T- 17182

Blanchard Project Key Information

1	Project ID	ATT 2008-10
2	Project Name	Blanchard
3	Project Plan	high speed, stand alone, internet access service, where technically feasible, using existing DSL technology and where AT&T-CA has wire line facilities
4	Project Size (in square miles)	13.9
5	Download speed	up to 1.5 MBPS
6	Upload speed	up to 384 KBPS
7	Location	Mariposa
a)	Community Name	Blanchard
b)	CBGs/Household Income	060430002001	$52,381
		061090052013	$47,840
c)	Zip Codes	95329
8	Estimated Potential Subscriber Size
a)	Households	123
9	Deployment Schedule (from Commission approval)	14 - 15 months
10	Proposed CASF Funding
	CASF (40%)	$29,600
	CIAC	$6,216
	Amount of CASF Funds Requested	$35,816

APPENDIX A

Resolution T- 17182

Blanchard Project Shapefile



APPENDIX A

Resolution T- 17182

Mt. Wilson Project Key Information

1	Project ID	ATT 2008-12
2	Project Name	Mount Wilson
3	Project Plan	high speed, stand alone, internet access service, , where technically feasible, using existing DSL technology and where AT&T-CA has wire line facilities
4	Project Size (in square miles)	2.1
5	Download speed	up to 1.5 MBPS
6	Upload speed	up to 384 KBPS
7	Location	Los Angeles
a)	Community Name	Mount Wilson
b)	CBGs/Household Income	060379301009	$126,131
c)	Zip Codes	91011
8	Estimated Potential Subscriber Size
a)	Households	2
9	Deployment Schedule (from Commission approval)	18 - 20 months
10	Proposed CASF Funding
	CASF (40%)	$2,000
	CIAC	$420
	Amount of CASF Funds Requested	$2,420

APPENDIX A

Resolution T- 17182

Mt. Wilson Project Shapefile

APPENDIX A

Resolution T- 17182

Pinyon Project Key Information

1	Project ID	Verizon Broadband Project Pinyon
2	Project Name	Pinyon
3	Project Plan	new fiber optic line buried between Pinyon and Palm Desert
4	Project Size (in square miles)	27.02
5	Download speed	mid-speed 1.50 Mbps
6	Upload speed	mid-speed 0.384 Mbps
7	Location	Riverside
a)	Community Name	Pinyon
b)	CBGs/Household Income	60650448071	$59,566
		60650451131	$40,907
		60650444022	$56,392
		60650444034	$24,833
c)	Zip Codes	92561
		92260
		92264
8	Estimated Potential Subscriber Size
a)	Households	382
9	Deployment Schedule (from Commission approval)	3 - 4 months
10	Proposed CASF Funding
	CASF (40%)	$132,000
	CIAC	$42,000
	Amount of CASF Funds Requested	$174,000

APPENDIX A

Resolution T- 17182

Pinyon Project Shapefile



APPENDIX A

Resolution T- 17182

Prattville Project Key Information

1	Project ID
2	Project Name	Prattville
3	Project Plan	add DSL capability for 171 customers through the addition of a Calix Digital Loop Carrier w/ High Speed Internet capability.
4	Project Size (in square miles)	2
5	Download speed	approximately 3 MBPS
6	Upload speed	up to 1 MB
7	Location	Chester Exchange
a)	Community Name	Prattville
b)	CBGs/Household Income	Tract 5 Block Grp. 1	$47,019
c)	Zip Codes	95923
		96137
		96020
8	Estimated Potential Subscriber Size
a)	Households	171
9	Deployment Schedule (from Commission approval)	12/1/08 through 7/15/09
10	Proposed CASF Funding
	CASF (40%)	$41,192
	CIAC
	Amount of CASF Funds Requested	$41,192

APPENDIX A

Resolution T- 17182

Prattville Project Shapefile