ALJ/SMW/lil Date of Issuance 10/21/2011

Decision 11-10-030 October 20, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of SureWest Telephone (U1015C) for exemption from California Public Utilities Code Section 851 to encumber assets to secure indebtedness.

Application 11-04-022 (Filed April 27, 2011)

DECISION DENYING REQUEST FOR EXEMPTION
FROM PUBLIC UTILITIES CODE SECTION 851
TO ENCUMBER ASSETS TO SECURE INDEBTEDNESS

1. Summary

Today's decision denies SureWest Telephone's request for an exemption from California Public Utilities Code Section 851, which, in part, requires a utility to request our authority to encumber its assets for the purpose of securing indebtedness.¹ We also provide alternative solutions which SureWest Telephone may act on in order to resolve its concerns regarding compliance with California Public Utilities Code Section 851, including filing a petition to modify Decision 10-05-019, or requesting authority pursuant to California Public Utilities Code Section 851 prior to its being needed. This proceeding is closed.

¹ In the case of SureWest Telephone and its parent, SureWest Communications, lenders require them to encumber all of their assets. Pursuant to Decisions 07-11-048 and D.10-05-019, we have granted partial exemptions from California Public Utilities Code Section 851, but not full exemptions for ILECs regulated under the uniform regulatory framework.