VI. Public Interest

Although our past decisions have stated that we would not approve applications where it appears that the applicant structured the transaction to avoid advance approval requirements, we believe that in this instance the violations were inadvertent, and that denying this application and/or requiring removal of the installed facilities would not serve the public interest.

In D.00-07-010, the Commission stated that:

"It is sensible for California's energy utilities, with their extensive easements, rights-of-way, and cable facilities, to cooperate in this manner with telecommunications utilities that are seeking to build an updated telecommunications network. Joint use of utility facilities has obvious economic and environmental benefits. The public interest is served when utility property is used for other productive purposes without interfering with the utility's operation or affecting service to utility customers."¹²

The project results in the joint use of PG&E's facilities that will help facilitate WilTel's service to its customers, while avoiding installation of duplicative infrastructure, by making use of existing PG&E outside plant. In addition, the installed facilities form a part of WilTel's fiber optic network. Since WilTel is a competitor in the telecommunications market, the facilities that are the subject of this application contribute to the development of competition.

PG&E represents that the annual fee it receives from WilTel represents fair market value for use of its facilities. In addition, PG&E receives dark fiber and for much of the route, the fiber optic facilities will function as static wire.¹³ PG&E also states that the annual fee, and the costs avoided by PG&E to install static wire are comparable to prices negotiated between other providers of rights-of-way and telecommunications companies. We have no reason to disbelieve these representations, and will accept them.

For the above reasons, approval of this application serves the public interest. Thus, in the circumstances presented here, we will approve PG&E's application.