3. Financial Qualifications
To be granted a certificate of public convenience and necessity (CPCN), an applicant for authority to provide limited-facilities based and resold competitive local exchange and interexchange services must demonstrate that it has a minimum of $100,000 cash or cash equivalent to meet the firm's start-up expenses.2 An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers and/or interexchange carriers (IECs) in order to provide the proposed service.3 Applicant provided personal guarantees of payment of at least $100,000, plus sufficient additional amounts to cover any required deposits, which is irrevocable for at least 12 months after certification. Applicant provided balance sheets from the guarantors' investment accounts as supporting documentation.
2 The financial requirement for competitive local exchange carriers (CLCs) is contained in Decision (D.) 95-12-056, Appendix C. The financial requirement for nondominant interexchange carriers (NDIECs) is contained in D.91-10-041.
3 The requirement for CLC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying local exchange carriers and/or IECs is set forth in D.95-12-056, Appendix C. For NDIECs, the requirement is found in D.93-05-010.
