Industry Rule 8. Procedures for Specific Types of Advice Letters

8.1 Negotiated Interconnection Agreements

Promptly upon execution of an interconnection agreement arrived at through negotiation pursuant to Section 252 of the Telecommunications Act of 1996 (47 USC § 252), the agreement shall be submitted by advice letter for Commission approval. Staff will prepare a proposed resolution approving or rejecting the agreement, and the proposed resolution will be placed before the Commission for its consideration at a meeting no later than 60 days after staff accepts the advice letter for filing.

8.2 Contracts for Tariffed Services

Contracts for tariffed services shall be submitted for approval under this Industry Rule and Industry Rules 8.2.1 to 8.2.5. Except for negotiated interconnection agreements, a contract that involves only detariffed services is not subject to Commission approval and is not to be submitted for filing.

8.2.1 Deadline for Submittal; Effective Date

Within 15 days after the execution of a contract for a tariffed service, the contract shall be submitted by advice letter for Commission approval. A Utility that violates the deadline for submittal is liable to such sanctions as the Commission may impose, including but not limited to the penalties set forth in Decision 91-07-010 and the Public Utilities Code. Violation of the deadline does not, in itself, invalidate a contract. In the case of a contract properly submitted for review and disposition by Tier 1 advice letter, the contract may be made effective as soon as the date of execution.

A contract for a tariffed service shall contain the following clause: "This contract at all times shall be subject to such modifications as the California Public Utilities Commission may direct from time to time in the exercise of its jurisdiction." If the contract is for tariffed service from a NRF-LEC, the contract shall also contain the following clause: "If any Category II Service rate or charge in this contract conflicts with an applicable Commission-approved Price Floor or Ceiling, the contract rate or charge shall be null and void, and the contract may be rescinded or renegotiated." If the contract is required to be submitted for review and disposition by Tier 3 advice letter, the contract shall also contain the following clause: "This contract does not become effective unless and until approved by the California Public Utilities Commission."

8.2.3 Availability of Contract Rates

The rate or charge under a contract then in effect shall be made available to any similarly situated customer that is willing to enter into a contract with the same terms and conditions of service.

8.2.4 Cost Justification

An advice letter by a NRF-LEC or GRC-LEC requesting approval of a contract shall show that each rate set in the contract is at or above cost, or in compliance with the applicable Commission-approved Price Floor and Ceiling. In the latter case, the advice letter shall state (1) the contract rate for each covered Category II Service, and (2) each Commission-approved Price Floor or Ceiling that applies to such service. Cost data provided in support of the contract may be submitted under seal together with a request for confidential treatment. (See General Rule 9.)

8.2.5 Contract Rate Violating Commission Standards

If a contract rate is below cost, or differs from the Utility's applicable tariff rate for a Category I Service, or violates any applicable Commission-approved Price Floor or Ceiling for a Category II Service, the Commission may invalidate the contract rate, or may require an amendment to conform the contract to the tariff rate or the Price Floor or Ceiling, as appropriate. In addition, the Commission may impose sanctions, including but not limited to a penalty on the Utility of the greater of $10,000 or twice the difference between the revenue to be realized over the term of the contract and the revenue that would have been realized by the Utility under the proper rate, as determined by the Commission. If the Commission finds that the Utility has engaged in a pattern of below-cost pricing, the Commission may impose further sanctions.

8.3 New Service

An advice letter requesting approval of a New Service shall demonstrate that the proposed service would:

An advice letter submitted by a GRC-LEC or NRF-LEC to request approval of a New Service shall demonstrate that the proposed rate for the New Service is above cost, except that if a GRC-LEC adopts or concurs in a NRF-LEC's tariff, the GRC-LEC is exempt from the requirement to demonstrate that the proposed rate for the New Service is above cost. Cost data, which must be provided for the purpose of this Industry Rule, may be submitted under seal together with a request for confidential treatment. (See General Rule 9.) An advice letter submitted by a NRF-LEC to request approval of a New Service shall indicate and justify the proposed category for the service.

8.4 Change to Tariffed Rate, Charge, Term, or Condition

An advice letter by a NRF-LEC or GRC-LEC requesting approval of a change to a tariffed rate, charge, term, or condition, if the change is required to be submitted for review and disposition by Tier 3 advice letter, shall demonstrate that the rate, charge, term, or condition, as proposed to be changed, would be just and reasonable. Cost data, which must be provided for the purpose of this Industry Rule, may be submitted under seal together with a request for confidential treatment. (See General Rule 9.) If Staff determines that a change requested by an advice letter to a rate, charge, term, or condition requires a hearing or otherwise requires review in a formal proceeding, Staff will reject the advice letter without prejudice. (See General Rule 5.4.)

8.5 Withdrawing Basic Service

Prior to a Utility's Withdrawal, in whole or part, from offering Basic Service (or service element thereof) within its service area, the Utility shall submit an advice letter or application, as appropriate (see Industry Rules 7.2(3), 7.3(3), 7.3(11), and 7.4(1)), requesting the Commission's authorization for such Withdrawal. The request shall state the date and method by which the Utility notified affected customers of the proposed Withdrawal (see Industry Rules 3 and 3.2), and shall describe the arrangements the Utility has made to ensure continuity of service to affected customers. If the Utility resells Basic Service (or service element thereof), the arrangements shall include notice to affected customers that they may choose another service provider or (if no other service provider is chosen) receive Basic Service from the underlying carrier or Carrier of Last Resort. If the Utility uses its own facilities to provide Basic Service, the arrangements shall include notice to affected customers of the Utility's plans for Transfer of the customers to another carrier. (See Industry Rule 3.1, 8.6.)

8.6 Transfer

8.6.1 Transfer of GRC-LEC or NRF-LEC

Commission approval for the Transfer of a GRC-LEC or NRF-LEC shall be requested by formal application jointly submitted by the transferor and proposed transferee. See Rules 35-36 of the Commission's Rules of Practice and Procedure.

8.6.2 Transfer of Interexchange or Competitive Local Carrier

Commission approval for the Transfer of an interexchange carrier or competitive local carrier shall be requested by advice letter submitted by the proposed transferee. If the proposed transferee does not have authority from the Commission to operate as a Utility, the transferee shall (1) either register to operate as an interexchange carrier (using the registration form available at the Commission's Internet site) or apply to operate as a competitive local carrier, and (2) upon the grant of operating authority by the Commission, submit an advice letter requesting approval of the Transfer. The advice letter shall include a financial statement, which may be submitted under seal together with a request for confidential treatment (see General Rule 9), demonstrating that the transferee has sufficient assets to operate through the transition period.

8.6.3 Transfer of Commercial Mobile Radio Service Provider

The transferee of a commercial mobile radio service provider shall submit an information-only filing setting forth changes in the provider's registration information.

8.7 Promotional Offering

A GRC-LEC or NRF-LEC may not submit an advice letter requesting approval of a Promotional Offering unless and until the Utility has received approval for its Promotional Platform.

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