3. Financial Qualifications

To be granted a certificate of public convenience and necessity (CPCN), an applicant for authority to provide facilities-based local exchange and/or interexchange services must demonstrate that it has a minimum of $100,000 of cash or cash equivalent to meet its start-up expenses. An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers (LECs) and/or interexchange carriers (IECs) in order to provide the proposed service.¹

CalPop's application includes a showing that it has reasonably liquid assets sufficient to satisfy our requirement for cash or cash equivalent on hand, which satisfies our requirement for a showing of financial fitness.

¹ The financial requirements for LECs are set forth in D.95-12-056, Appendix C. For IECs, the requirements are found in D.91-10-041 and D.93-05-010.