III. Jurisdiction

The application has been filed pursuant to Pub. Util. Code § 854 and Rules 35 and 36 of the Commission's Rules of Practice and Procedure. Section 854 precludes any person or corporation from transferring control of any public utility organized and doing business in this state without first securing authorization to do so from this Commission upon a finding that the transfer of control is in the public interest. The purpose of this and related sections is to enable the Commission, before any transfer of public utility property is consummated, to review the situation and to take such action as the public interest may require. (San Jose Water Co. (1916) 10 CRC 56.)

Forstmann Little and Telmex are not parties to this application. Neither Forstmann Little nor Telmex will acquire 50% of XO, since neither entity will obtain a controlling interest. (Gale v. Teel, 87478, (1977) 81 CPUC 817.)