3. Financial Qualifications
To be granted a Certificate of Public Convenience and Necessity (CPCN), an applicant for authority to provide limited-facilities based and resold local exchange and interexchange services must demonstrate that it has a minimum of $100,000 cash or cash equivalent to meet the firm's start-up expenses.1 An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers and/or interexchange carriers (IECs) in order to provide the proposed service.2 Applicant provided a Letter of Guarantee that demonstrates that it has sufficient cash to satisfy this financial requirement.
1 The financial requirement for CLCs is contained in Decision (D.) 95-12-056, Appendix C. The financial requirement for Non-dominant Interexchange Carriers (NDIECs) is contained in D.91-10-041.
2 The requirement for CLC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying LECs and/or IECs is set forth in D.95-12-056, Appendix C. For NDIECs, the requirement is found in D.93-05-010.
