Word Document

STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 9, 2001

TO: PARTIES OF RECORD IN APPLICATION 00-09-045

This is the draft decision of Administrative Law Judge (ALJ) Duda. It will be on the Commission's agenda at the next regular meeting 30 days after the above date. 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.

Parties to the proceeding may file comments on the draft decision as provided in Article 19, attached, of the Commission's "Rules of Practice and Procedure." Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC:sid

Attachments

ALJ/DOT/sid DRAFT Item 3

Decision DRAFT DECISION OF ALJ DUDA (Mailed 3/9/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application for Authority for Country Road Communications, Inc. and Evans Telephone Holdings, Inc., to Acquire and Control Evans Telephone Company.

Application 00-09-045

(Filed September 19, 2000)

O P I N I O N

1. Summary

Country Road Communications, Inc. (Country Road), its subsidiary Evans Telephone Holdings, Inc. (Evans Holdings), Evans Telephone Company (Evans Telephone) and J. H. Evans, Inc. (jointly "Applicants") seek approval under Section 854(a) of the Public Utilities Code for the acquisition of Evans Telephone by Evans Holdings and Country Road. The application also seeks approval for Evans Holdings to exercise direct control and Country Road to exercise indirect control over Evans Telephone through transfer of the stock of Evans Telephone to Evans Holdings. The application is unopposed. The application is denied because the Commission finds that the acquisition and subsequent transfer of control of Evans Telephone to Evans Holdings and Country Road would be adverse to the public interest because the financial condition of Evans Telephone is not maintained or improved by the transaction. The denial is without prejudice to any future filing by Applicants attempting to show that the current ratepayers of Evans Telephone would not be affected in the event of financial difficulties for Country Road.

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