STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
September 11, 2002 Item #6
Agenda ID #1081
9/19/2002
TO: PARTIES OF RECORD IN APPLICATION 01-02-024 ET AL.
This is the draft decision of Commissioner Wood. It will be on the Commission's agenda at the meeting on September 19, 2002. The Commission may act then, or it may postpone action until later.
When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
Pursuant to Rule 77.7(f) of the Commission's Rules of Practice and Procedure, the Commission may reduce or waive comments in an unforeseen emergency situation. The remand order of the U.S. District Court in AT&T Communications of California v. Pacific Bell Telephone Co, (No. C01-02517) (N.D. Cal. August 6, 2002) constitutes an unforeseen emergency. Parties shall have seven days to comment on this order. Comments are due on August 16, 2002 and reply comments are due on August 17, 2002.
Consistent with the service procedures in this proceeding, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, including ALJ Duda at dot@cpuc.ca.gov. Comments should be sent to the service list for A.01-02-024 et al. and R.93-04-003/I.93-04-002 (OANAD proceeding). Service by U.S. mail is optional, except that hard copies of comments should be served separately on ALJ Duda and Commissioner Wood, and for that purpose I suggest hand delivery, overnight mail, or other expeditious methods of service. In addition, if there is no electronic mail address available, the electronic mail is returned to the sender, or the recipient informs the sender of an inability to open the document, the sender shall immediately arrange for alternate service (regular U.S. mail shall be the default, unless another means-such as overnight delivery-is mutually agreed upon). The current service lists for these proceedings are available on the Commission's web page, www.cpuc.ca.gov.
Carol A. Brown, Interim Chief
Administrative Law Judge
CAB: jyc
Attachments
COM/CXW/jyc DRAFT Item #6
Agenda ID #1081
9/19/02
Decision DRAFT DECISION OF ALJ DUDA (Mailed 9/11/2002)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Joint Application of AT&T Communications of California, Inc. (U 5002 C) and WorldCom, Inc. for the Commission to Reexamine the Recurring Costs and Prices of Unbundled Switching in Its First Annual Review of Unbundled Network Element Costs Pursuant to Ordering Paragraph 11 of D.99-11-050. |
Application 01-02-024 (Filed February 21, 2001) |
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Application of AT&T Communications of California, Inc. (U 5002 C) and WorldCom, Inc. for the Commission to Reexamine the Recurring Costs and Prices of Unbundled Loops in Its First Annual Review of Unbundled Network Element Costs Pursuant to Ordering Paragraph 11 of D.99-11-050. |
Application 01-02-035 (Filed February 28, 2001) |
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Application of The Telephone Connection Local Services, LLC (U 5522 C) for the Commission to Reexamine the Recurring Costs and Prices of the DS-3 Entrance Facility Without Equipment in Its Second Annual Review of Unbundled Network Element Costs Pursuant to Ordering Paragraph 11 of D.99-11-050. |
Application 02-02-031 (Filed February 28, 2002) |
Application of AT&T Communications of California, Inc. (U 5002 C) and WorldCom, Inc. for the Commission to Reexamine the Recurring Costs and Prices of Unbundled Interoffice Transmission Facilities and Signaling Networks and Call-Related Databases in Its Second Annual Review of Unbundled Network Element Costs Pursuant to Ordering Paragraph 11 of D.99-11-050. |
Application 02-02-032 (Filed February 28, 2002) |
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Application of Pacific Bell Telephone Company (U 1001 C) for the Commission to Reexamine the Costs and Prices of the Expanded Interconnection Service Cross-Connect Network Element in the Second Annual Review of Unbundled Network Element Costs Pursuant to Ordering Paragraph 11 of D.99-11-050. |
Application 02-02-034 (Filed February 28, 2002) |
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Application of XO California, Inc. (U 5553 C) for the Commission to Reexamine the Recurring Costs of DS1 and DS3 Unbundled Network Element Loops in Its Second Annual Review of Unbundled Network Element Costs Pursuant to Ordering Paragraph 11 of D.99-11-050. |
Application 02-03-002 (Filed March 1, 2002) |
OPINION ON REMAND ADDRESSING
SHARED AND COMMON COST MARKUP AND
RECURRING PRICES ESTABLISHED IN DECISION 99-11-050
I. Summary
This decision addresses a remand ordered by the U.S. District Court for the Northern District of California. (AT&T Communications of California Inc. et al., v. Pacific Bell Telephone Company, et al., Order on Cross Motions for Summary Judgment, No. C01-02517 (CW)(N.D. Cal. August 6, 2002)("Remand Order"). In response to the Remand Order, this decision modifies the shared and common cost markup percentage, which is a component of the price of unbundled network elements (UNEs) that Pacific Bell Telephone Company (Pacific) charges competing local telephone carriers for use of its network. The shared and common cost markup that was originally adopted in Decision (D.) 99-11-050 is increased from 19% to 21%. This increase results from removal of $537.8 million in non-recurring UNE costs that appear to have been inadvertently double-counted in D.99-11-050.
This decision also orders modification to Pacific's monthly UNE recurring charges. The Commission concludes that the total direct UNE cost figure that the Court remanded for review was also used to set Pacific's monthly recurring charges. Therefore, the double-counting must be remedied in those charges as well. The decision calculates the amount of overstatement in recurring costs and directs Pacific to remove 13% from the expense portion of its UNE recurring costs. The Commission will review and adopt these changes after further filings by the parties in response to today's order.
The changes ordered by this decision to the markup and recurring costs shall be made on a prospective basis from the effective date of this order. The implementation of the 2% increase in the markup is stayed pending resolution of the amount of adjustment needed to monthly recurring charges so that both of these changes can be implemented simultaneously. Once the adjustment to recurring costs is identified, all UNE rate changes ordered today will be implemented with today's effective date. Pacific is directed to track the UNEs purchased by other carriers that are impacted by these UNE rate changes so that once the net rate change is identified, it can be made effective today.
