ALJ/KAJ/tcg * Mailed 5/3/2002

Decision 02-05-009 May 2, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Roseville Telephone Company (U 1015 C) to Review Extended Area Service Compensation and Establish Replacement Revenue Funding.

Application 99-08-043 (Filed August 20, 1999)

OPINION DENYING PETITION TO MODIFY

1. Summary

In this decision we deny Roseville Telephone Company's (Roseville) Petition to Modify Decision (D.) 00-11-039 and uphold our determination in D.00-11-039 that the California High Cost Fund-B (CHCF-B) is not an appropriate permanent source of funding to replace the $11.5 million Extended Area Service (EAS) payment Roseville previously received from Pacific Bell Telephone Company (Pacific).