7. Assignment of Proceeding

Catherine J. K. Sandoval is the assigned Commissioner and Seaneen M. Wilson is the assigned ALJ in this proceeding.

Findings of Fact

1. In addition to SureWest, URF ILECs include AT&T, Verizon, and Frontier.

2. We have considered exemption of URF ILECs from § 851 in A.06-07-026 and R.09-05-006.

3. In D.07-11-048 and D.10-05-019, we granted URF ILECs partial exemptions from § 851. Neither of these decisions granted an exemption from the § 851 requirement that an URF ILEC request authority to encumber all assets to secure indebtedness.

4. In D.07-11-048, we determined that an application by a single carrier is not the appropriate proceeding in which to consider full exemption by an URF ILEC from § 851, and that a rulemaking was the appropriate vehicle for considering broader exemption from § 851.

5. In D.11-02-022, we granted SureWest authority to encumber all of its assets to secure indebtedness, pursuant to § 851.

Conclusions of Law

1. The appropriate proceeding in which to consider a request for exemption from § 851 is a rulemaking.

2. SureWest's request for exemption from § 851 to encumber all assets to secure indebtedness should be denied.

3. This proceeding should be closed.

ORDER

IT IS ORDERED that:

1. SureWest Telephone's request in Application 11-04-022 for exemption from California Public Utilities Code Section 851 to encumber all assets to secure indebtedness is denied.

2. The appropriate proceeding in which to consider a request for exemption from California Public Utilities Code Section 851 is a rulemaking.

3. No hearings are necessary.

4. Application 11-04-022 is closed.

This order is effective today.

Dated October 20, 2011, at San Francisco, California.

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