4. Financial Qualifications
To be granted a certificate of public convenience and necessity (CPCN), an applicant for authority to provide limited-facilities based and resold 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.3 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.4 Applicant provided a guarantee of payment of at least $125,000, which is irrevocable for at least 12 months after certification.5 Applicant also provided a statement from the guarantor's Money Market account as supporting documentation demonstrating Applicant's ability to meet the financial requirements.6
3 The financial requirement for competitive local carriers (CLECs) is contained in Decision (D.) 95-12-056, Appendix C. The financial requirement for Non-Dominant Interexchange Carriers (NDIECs) is contained in D.91-10-041.
4 The requirement for CLEC 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.
5 Applicant's guarantee specifies that it is providing the guarantee to demonstrate it has the minimum of $100,000, plus the amount of any deposits required by underlying carriers.
6 The money market account statement indicated average balances that were more than sufficient to meet the $100,000 minimum requirement.
