IX. Assignment of Proceeding
Carl W. Wood is the Assigned Commissioner and Michael J. Galvin is the assigned Administrative Law Judge in this proceeding.
1. Resolution ALJ 176-3035 determined that this was a ratesetting proceeding and determined that no hearings were expected.
2. Notice of this application appeared in the Commission's Daily Calendar of March 16, 2000.
3. No protests were filed.
4. This application has been filed pursuant to § 851.
5. Section 851 precludes a public utility from selling any part of its assets necessary or useful in the performance of its duties to the public without first securing authorization to do so from this Commission.
6. ITC possesses a CPCN to provide interexchange services within California under the U-5710-C corporate identification number.
7. eGCS possesses a CPCN to provide facilities-based inter and intraLATA toll services within California under the U-6337-C corporate identification number.
8. eGCS became qualified to transact business in California on November 4, 1999.
9. ITC and eGCS seek authority for eGCS to acquire all of the assets of ITC nunc pro tunc to August 5, 1999.
10. ITC had been carrying California interexchange traffic and eGCS has assisted ITC in providing such service under ITC's CPCN.
11. Applicants want to comply with all California statues and regulations governing the provision of long distance resale services in California.
12. eGCS will honor ITC's calling cards.
13. Section 2105 of the California Corporation Code precludes a foreign corporation from transacting intrastate business without having first obtained a certificate of qualification.
14. No new construction is being proposed.
15. ITC and eGCS are non-dominant telecommunications carriers.
16. The Commission's Consumer Service Division has not received any customer complaints against ITC in the past two years.
17. eGCS will operate utilizing its own corporate identification number and ITC will take steps to terminate its corporate identification number following approval of the asset transfer.
18. Section 2107 provides the Commission with authority to impose a penalty of between $500 and $20,000 for violations of the Pub. Util. Code.
19. D.98-12-075 sets forth the criteria to be considered in assessing a fine.
20. The violation of § 851 affected only a small number of customers.
21. Applicants have modest financial resources.
22. Applicants attempted to disclose and rectify the violation of § 851 by the filing of their application with a candid explanation and request for the necessary approval.
1. Since this transfer occurred prior to the filing of this application, the applicants have violated Section 851.
2. The proposed transfer of assets should not be granted nunc pro tunc.
3. The proposed transfer is not adverse to the public interest.
4. It is not in the public interest to relieve applicants of risk for any consequences from activities and transactions completed prior to requesting and receiving Commission approval.
5. It can be seen with certainty that the proposed transfer will not have an adverse impact on the environment.
6. This application should not be granted by the Executive Director or on a nunc pro tunc basis.
7. Applicants should be subject to the monetary penalties set forth in § 2107 for their violation of § 851.
8. The criteria set forth in D.98-12-075 for assessing a fine to the facts in this application indicates that applicants should be assessed a fine totaling $1,500.
9. Public convenience and necessity require the granting of this application to be effective on the date signed.
10. Approval of this application is not a finding of value of the rights and property being transferred.
11. The application should be granted to the extent provided in the following order.
IT IS ORDERED that:
1. Innovative Telecom Corp. (ITC) and Enhanced Global Convergence Services, Inc. (eGCS) are authorized pursuant to Section 851 of the Public Utilities Code to transfer all of the public utility assets of ITC to eGCS, as more fully described in the application and its exhibits attached to the application. The authority granted in this ordering paragraph shall be prospective in application from the effective date of this order.
2. Applicants shall pay a $1,500 total fine for violating Section 851 of the Public Utilities Code within 20 days from the effective date of this order. Applicants shall tender to the Fiscal Office of the California Public Utilities Commission a check in the amount of $1,500 made payable to the State of California General Fund. Applicants shall also file proof of payment with the Commission's Docket Office within 40 days of payment.
3. Any failure of applicants to pay the $1,500 fine within 20 days from the effective date of this order may result in proceedings to revoke ITC's and eGCS's Certificates of Public Convenience and Necessity.
4. The corporate identification number U-6337-C assigned to eGCS shall continue to be used by eGCS and shall be included in all original filings with the Commission and in the titles of other pleadings filed in existing cases.
5. The application is granted as set forth above and the authority granted shall expire if not exercised within one year after the effective date of this order.
6. Application 00-02-048 is closed.
This order is effective today.
Dated _______________________, at San Francisco, California.
