3. Prior Consideration of URF ILEC Exemption from Public Utilities Code Section 851
We have considered exemptions of URF ILECs from Public Utilities (Pub. Util.) Code Section 8514 in two recent proceedings (Application (A.) 06-07-026 and R.09-05-006). In both proceedings, we granted partial exemptions, neither of which included an exemption from the requirement that an URF ILEC request authority to encumber all assets for securing indebtedness.
In A.06-07-026, AT&T requested authority for full exemption from § 851 for the disposition or encumbrance of utility assets. SureWest and Verizon supported this application and requested that the exemption requested by AT&T apply to all URF ILECs.5 Even though the responding ILECs favored full exemption, they were willing to accept CLEC/non-dominant interexchange carrier (NDIEC)-equivalent treatment as an interim measure.6 In D.07-11-048 in that proceeding, we denied the request by AT&T for full exemption from § 851's encumbrance requirement, but extended relief from the requirements of § 851 subject to certain limitations, to all of the URF ILECs.7 We also deferred consideration of full exemption by URF ILECs from § 851 to a future rulemaking.
In R.09-05-006, we considered, among other issues, the full exemption of both mid-size and large URF ILECs from § 851 with regard to the disposition or encumbrance of necessary and useful utility assets.8 In its opening comments regarding the scope of R.09-05-006, SureWest supported exemption of URF ILECs from § 851. By D.10-05-019, we granted URF ILECs further exemptions from § 851 with respect to the disposition of certain non-controversial assets, but did not grant them full exemption from § 851 regarding encumbrance of assets.9
4 For the remainder of this decision Pub. Util. Code § 851 will be referred to as "§ 851."
5 See D.07-11-048 at 2.
6 See D.85-11-044 for NDIEC authority and D.97-01-015 for CLEC authority.
7 See D.07-11-048 at Ordering Paragraph 2.
8 See R.09-05-006 at 1 and 7. Also considered exemption by CLECs and NDIECs from Pub. Util. Code § 851.
9 See D.10-05-019 at 2.
