PPPP FISCAL YEAR BUDGET YEAR 2002/2003

STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

July 24, 2001

To: Parties of Record to I. 88-04-029, R.98-05-031, Local Exchange Carriers (LECs) and Competitive Local Exchange Carriers (CLECs)

Draft Resolution T-16557 proposes approval of the following:

*The Payphone Service Providers Payphone Program budget for July 1, 2002, to June 30, 2003, in the amount of $1,188,787.

*A decrease in the surcharge rate of $0.10 per pay telephone per month to zero effective July 1, 2002.

Draft Resolution T-16558 proposes approval of the following:

*The Public Policy Payphone Program budget for July1, 2002, to June 30, 2003, in the amount of $132,899.

*A decrease in the surcharge rate of $0.09 per month per pay telephone rate to zero effective July 1, 2002.

A copy of this draft resolution is available at the Commission's web site at cpuc.ca.gov . This Notice of Availability of the draft resolutions also informs you of the availability of the final resolution, when adopted by the Commission, on the same web site. Hard copies of this draft resolution are being mailed to the parties of record to I. 88-04-029 and R. 98-05-031. If you have not received a hard copy or do not have Internet access, you may obtain a copy of this draft resolution by contacting the Telecommunications Division at (415) 703-2117.

Pursuant to Public Utilities (PU) Code 311(g)(1), this draft resolution is available for public comments. Opening comments should be focused on factual, legal, and/or technical errors in the draft resolution. Opening comments should be limited to five pages in length and shall include a subject index listing the recommendations to the draft resolution, a table of authorities, and an appendix setting forth the proposed revised findings and ordering paragraphs. Reply comments shall be limited to identifying misrepresentations of law, fact, or condition of the record contained in the comments of other parties. Replies shall not exceed three pages in length and shall be submitted and served in the same manner as opening comments.

Opening comments on these draft resolutions must be submitted on or before August 14, 2001 (which is 15 days from the date of this mailing). Reply comments may be submitted on or before August 20, 2001 (five days after opening comments are submitted). Opening comments and/or reply comments should be addressed to:

        California Public Utilities Commission

        Attn: MJ Purcell

        Telecommunications Division

        505 Van Ness Avenue, 3rd Floor

        San Francisco, CA 94102

The date of submission is the date that the Telecommunications Division receives opening comments or reply comments. Parties must serve a copy of their opening comments and/or reply comments on each party set forth on the service list attached to the draft resolution, on the same date that the opening comments and/or reply comments are submitted to the Telecommunications Division.

Late-filed opening comments and/or reply comments will ordinarily be rejected. However, in extraordinary circumstances, a request for leave to submit opening comments or replies late may be filed together with proposed comments/replies. An accompanying declaration under penalty or perjury shall be submitted setting forth all the reasons for the late submission.

This draft resolution will be on the agenda of the Commission's August 23, 2001 meeting. The Commission may vote on the draft resolution on this date, or postpone a vote until later. When the Commission votes, it may adopt the resolution as drafted, or it may amend, modify, or set aside the resolution and prepare a different resolution. Only when the Commission acts does the resolution become binding on the parties.

Sincerely,

/s/ JOHN M. LEUTZA

John M. Leutza, Director

Telecommunications Division

Enclosure (Draft Resolution T-16557 with service list for the parties of record to

I. 88-04-029. Draft Resolution T-16558 with service list for the parties of record to R-98-05-031.)

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