ALJ/MFG/jva DRAFT Agenda ID #2976
Ratesetting
2/11/04 Item 42
Decision PROPOSED DECISION OF ALJ GALVIN (Mailed 11/17/2003)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Verizon California Inc. (U 1002 C), a Corporation, for Authority to Re-Categorize Inside Wire Maintenance Plans and Billable Repair Service from Category II to Category III Service Offerings. |
Application 01-02-012 (February 7, 2001) |
Sullivan Sottile & Taketa LLP, by Timothy B. Sottile,
Attorney at Law, and Richard A. Chapkis, Attorney at
Law, for Verizon California, Inc., applicant.
James Anthony, Attorney at Law, for The Utility Reform
Network, interested party.
Laura J. Tudisco, Attorney at Law, for The Office of
Ratepayer Advocates.
TABLE OF CONTENTS
Title Page
OPINION 2
I. Summary 2
II. Jurisdiction 2
III. Prehearing Conference and Scope of Proceeding 3
IV. Pending Motions 4
V. Background 4
VI. Creation of Separate BRS Tariff Schedules for Business and Residential Customers 6
VII. Ratemaking Treatment of BRS and IWMP 6
VIII. Recategorization Request and Market Definition 7
IX. Market Power as the Central Issue 11
A. Ease of Market Entry and Exit 14
B. Supply Elasticity 21
C. Demand Elasticity 25
1. Business End-Users 26
2. Residential End-users 28
D. Conclusion 31
X. Ceiling Rates 31
XI. Comments on Proposed Decision 35
XII. Assignment of Proceeding 35
Findings of Fact 35
Conclusions of Law 40
ORDER 43
APPENDIX A - Billable Repair Services
I. Summary
Verizon California Inc. (Verizon) provides various services that allow customers to either pay a monthly fee to obtain repairs of the customer premises wiring (Inside Wire Maintenance Plan) or to obtain such repair service on an as-needed basis (Billable Repair Service). Verizon's request to re-categorize its Residential Billable Repair Service (BRS), Residential Inside Wire Maintenance Plan (IWMP), and Landlord IWMP from Category II to Category III service offerings is denied. Verizon's request to increase the ceiling rates for its Residential and Landlord IWMPs is also denied.
Verizon's request to re-categorize its Business BRS, and IWMPs for its business and CentraNet customers from Category II to Category III service offerings is granted. Verizon's request to increase the first weekday hour, or less, of its Business BRS ceiling rate from $85.00 to $100.00 is also granted. We further grant Verizon request to bifurcate its BRS tariff schedule into a separate business BRS tariff schedule and separate residential BRS tariff schedule. All revenues and expenses associated with simple inside wire services shall continue to be treated above the line for intrastate ratemaking purposes.
