ALJ/BWM/k47 DRAFT Item 1

2/21/2002

Decision

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation on the Commission's Own Motion into the Deaveraging of Unbundled Network Element Rates within at Least Three Geographic Regions of the State of California Pursuant to Federal Communications Commission Rule 47 C.F.R. § 51.507(f).

Investigation 00-03-002 (Filed March 2, 2000)

ORDER ADOPTING GEOGRAPHICALLY DEAVERAGED

UNBUNDLED NETWORK ELEMENT RATES FOR

PACIFIC BELL TELEPHONE COMPANY

1. Summary

We grant the joint motion for adoption of a Settlement Agreement (Agreement). As a result, on an interim basis we authorize loop unbundled network element (UNE) rates for three zones in the service area of Pacific Bell Telephone Company (Pacific).