4. Financial Qualifications

Pursuant to Rule 4.B of Decision (D.) 95-12-056, an applicant for a CPCN for authority to provide facilities-based local exchange service must demonstrate that it has $100,000 cash or cash equivalent to meet the firm's start-up expenses. Applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by other telecommunications carriers in order to provide service in California.

In Section 5 of and Exhibit D to the application, SnowCrest provided a brokerage account statement for Peter Engdahl, the President of SnowCrest. SnowCrest also provided a signed guarantee by Peter Engdahl that $100,000 plus an amount equal to the deposit required by AT&T would be available to SnowCrest for one year following certification. Since SnowCrest has provided documentation that, through its President, it possesses a minimum of $100,000 that is reasonably liquid and available, it has demonstrated that it has sufficient funds to meet its start-up expenses and has fulfilled this requirement.

SnowCrest proposed to initially interconnect with AT&T. As stated above, SnowCrest has provided documentation that it has the funds available for the deposit required by AT&T. Therefore, no additional resources are required at this time to cover deposits.