3. Discussion
The CPCNs currently held by Cox will not be transferred, nor will any of its assets or customers. The proposed transaction will not modify or impact the financial condition of Cox and there will not be any change in Cox's officers or its operations as a result of the reorganization.9 The only change will be the insertion of Cox CA as the direct parent of Cox. Thus we need not apply the Commission's criteria for determining whether a CPCN should be granted, or transferred.
Cox currently provides telecommunications services in California and will retain sufficient experience and expertise for continued operations post transfer of control. In addition, the ultimate ownership of Cox will remain the same. The proposed structure of this transaction will streamline the administrative filings that CoxCom, LLC is required to and that Cox CA will be required to file on a going forward basis. The streamlined filings and the corresponding reduction in paper work will reduce operational burdens. The transaction will be transparent to customers and the public.
Where a company that does not possess a CPCN desires to acquire control of a company or companies that do possess a CPCN, the Commission will apply the same requirements, to the acquiring company, as would be applied to an initial applicant seeking a CPCN. In this case, Cox CA will be an intermediate owner of Cox with ultimate ownership of Cox being retained by CoxCom, LLC and its parent Cox Communications, Inc.10
The instant application includes financial statements11 and other evidence that demonstrates that the Applicants and Cox Communications, Inc. have sufficient resources to meet the Commission's financial requirements. Applicants have indicated that Cox's current management will not change. We find the proposed transfer to meet the Commission's requirements; therefore, we authorize these transfers.
9 A.11-0-009 at 1.
10 A.11-09-009, Exhibit B.
11 Id., Exhibit C (Confidential).
