11. Assignment of Proceeding
Susan P. Kennedy is the Assigned Commissioner and Michael J. Galvin is the assigned ALJ in this proceeding.
1. Highspeed has been authorized to provide resold and facilities-based competitive local exchange, interLATA, and non-local exchange intraLATA services within California since December 1998.
2. Highspeed filed residential and business telecommunications service tariffs with the Commission to be effective December 8, 1999.
3. NTIC seeks authority under Section 854 to transfer control of NTIC to Northwest.
4. The transaction for which authority is sought in A.05-02-028 was consummated approximately twelve months before the application was filed and without prior approval from the Commission.
5. The name of Highspeed was changed to NTIC, effective July 20, 2004.
6. There has been no request to this Commission to change the name of Highspeed to NTIC.
7. Applicant has taken appropriate steps to update its tariffs and to report and pay past due user fees estimated to be less than $12,000.
8. There is no opposition to A.05-02-028.
9. The public may benefit from the transfer of control described in this application to the extent that the transaction enhances Applicant's ability to maintain, improve, and/or expand its services in California.
10. It is in the public interest for the Commission to foster a business environment that is hospitable to utilities.
11. In D.98-12-075, the Commission adopted the following criteria for determining the amount of a fine: (i) the severity of the offense, (ii) the conduct of the offender, (iii) the financial resources of the offender, (iv) the totality of the circumstances, and (v) the role of precedent.
12. Applicant's failure to comply with Section 854(a) did not (i) result in actual or threatened harm to others, or (ii) significantly benefit Applicant.
13. With the exception of not reporting and paying user fees, the facts of this proceeding are reasonably comparable to those in previous decisions wherein the Commission imposed fines of $5,000 for violations of Section 854(a).
14. Applicant hired additional staff and retained the services of a company to assist it in all of its California regulatory operations. Applicant expects that the tariffs of NTIC will be updated and comply with Resolution T-16901 by May 31, 2005.
15. Applicant expects to have its past due user reports completed and filed, and past due user fees paid by May 31, 2005. It does not expect its total fees, including late filing penalties, to exceed $12,000.
16. Applicant represented that granting A.05-02-028 will not result in any new construction or changes in use of existing property or facilities.
17. It can be seen with certainty that granting A.05-02-028 will not have an adverse impact on the environment.
1. This is a ratesetting proceeding.
2. No hearing is necessary.
3. Section 854(a) requires Commission authorization to transfer control of a public utility. Any transfer of control without Commission authorization is void under the statute.
4. The transfer of control described in this application is subject to Section 854(a).
5. The Commission has broad discretion to determine if it is in the public interest to authorize a transaction pursuant to Section 854(a).
6. The primary standard used by the Commission to determine if a transaction should be authorized under Section 854(a) is whether the transaction will adversely affect the public interest.
7. Applicant has financial and technical expertise in telecommunications or a related business.
8. This application should be granted pursuant to Section 854(a) for the reasons set forth in the body of this decision.
9. The authority granted by today's decision pursuant to Section 854(a) should apply prospectively. Retroactive authority should not be granted.
10. Applicant violated Section 854(a) by consummating the transfer of control described in this application without Commission authorization.
11. Section 2107 provides the Commission with authority to impose a fine of between $500 and $20,000 for violations of the Public Utilities Code.
12. Applicant should be fined for violating Section 854(a). The amount of the fine should be based on the criteria set forth in D.98-12-075.
13. Applying the criteria in D.98-12-075 to the facts of this case, which are identified in the body of this decision and Findings of Fact, indicates that Applicant should be fined $5,000 for violating Section 854(a).
14. Applicant should submit a compliance filing within 40 days after the date of this decision that demonstrates it has updated its filed tariffs with this Commission and has filed the appropriate past due user fee reports and paid its past due user fees. Failure to make such a compliance filing may result in a revocation of its certificate of public convenience and necessity to provide telecommunications services within California.
15. It is not necessary to conduct an environmental review of the transfer of control described in A.05-02-028.
16. The following order should be effective immediately.
IT IS ORDERED that:
1. Highspeed Communications of California, LLC (U-6102-C) is authorized to change its name to NTI of California, LLC (NTIC).
2. Northwest, Inc. (Northwest) is authorized to acquire control of NTIC pursuant to Section 851 of the Public Utilities Code , as more fully described in the application and its exhibits attached to the application. The authority granted in this ordering paragraph shall be prospective only from the effective date of this order.
3. NTIC and/or Northwest shall pay a $5,000 total fine for violating Section 851 of the Public Utilities Code within 30 days from the effective date of this order. The parties shall tender to the Fiscal Office of the California Public Utilities Commission at 505 Van Ness Avenue, Room 3000, San Francisco, CA 94102, a check in the amount of $5,000 payable to the State of California General Fund. The number of this Decision shall appear on the face of the check.
4. NTIC shall submit a compliance filing to the Director of the Telecommunications Division within 40 days after the date of this decision that demonstrates it has updated its filed tariffs with this Commission, has filed the appropriate past due user fee reports, paid its past due user fees, and provide proof of payment of the $5,000 penalty assessed for its violation of Public Utilities Code Section 854(a). Failure to make such a compliance filing may result in proceedings to revoke its certificate of public convenience and necessity to provide telecommunications services within California.
5. The corporate identification number U-6102-C assigned to Highspeed shall continue to be used by NTIC in all original filings with the Commission and in the titles of other pleadings filed in existing cases.
6. Application 05-02-028 is closed.
This order is effective today.
Dated , at San Francisco, California.
