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ALJ/MAB/tcg Mailed 12/15/2006

Decision 06-12-039 December 14, 2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of SBC California (U 1001 C) for a Surcharge and a Balancing Account to Recover Undergrounding Costs in the City of San Diego.

Application 05-03-005

(Filed March 3, 2005)

OPINION AUTHORIZING MODIFIED SURCHARGE TO RECOVER COSTS
OF UNDERGROUNDING AERIAL TELEPHONE LINES

I. Summary

In this decision, we grant the request of Pacific Bell Telephone Company, doing business as SBC California (SBC)1 for a surcharge to recover the costs of undergrounding its aerial telephone lines in San Diego. We adopt SBC's proposed fixed amount rate design for the surcharge, but limit this authorization in light of our decision eliminating SBC's retail price regulation.

1 Now known as AT&T California, Inc.

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