11. General Rate Case Filing

Applicant has asked to be treated as a Small ILEC for regulatory purposes and proposes to initially establish rates and charges for its local service based on 150% of AT&T's basic rate as of December 31, 2010. This rate is comparable to the rate required for the Small ILECs to draw from the California High Cost Fund-A. Once DTS has completed construction of its facilities, has a minimum of one calendar-year operating experience and the required recorded operating data, it would file a general rate case with the Commission. Applicant shall not change its tariffed rates and charges until authorized by a Commission decision or resolution.

We note that under these circumstances, DTS will not be eligible for funding from the California High Cost Fund-A until after the Commission has completed review of a general rate case filed by DTS in compliance with D.91-09-042 and in accordance with the implementing guidelines established in the Appendix of that decision.