IV. Section 311(g)(2) - Uncontested decision grants relief requested

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Pub. Util. Code § 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

Findings of Fact

1. VAD filed its application seeking a CPCN to provide competitive local exchange services in the territories of the large and mid-sized California incumbent local exchange carriers.

2. There are no protests to the application.

3. In D.99-10-025, the Commission found that further inquiry was required to resolve the CEQA issues raised by the filed comments of public agencies before full facilities-based authority could be considered for then-pending CLC petitions.

4. Prior Commission decisions authorized competition in providing local exchange telecommunications service within the service territories of Pacific, GTEC, RTC, and CTC for carriers meeting specified criteria.

5. VAD has demonstrated that it has a minimum of $100,000 in cash or cash equivalent reasonably liquid and readily available to meet its start-up expenses.

6. Applicant's technical experience is demonstrated by supporting documentation which provides summary biographies of key management personnel.

7. By D.97-06-107, applicants for CLC authority are exempt from Rule 18(b).

8. Exemption from the provisions of Pub. Util. Code §§ 816-830 has been granted to other nondominant carriers. (See, e.g., D.86-10-007 and D.88-12-076.)

9. The transfer or encumbrance of property of nondominant carriers has been exempted from the requirements of Pub. Util. Code § 851 whenever such transfer or encumbrance serves to secure debt. (See D.85-11-044.)

10. The provision of local exchange telecommunications service by resale, or by the utilization of existing unbundled loops and electronic equipment located within or on existing buildings and structures would not have a significant effect on the environment.

Conclusions of Law

1. VAD has the financial ability to provide the proposed services, and has made a reasonable showing of technical expertise in telecommunications.

2. Public convenience and necessity require the competitive local exchange services to be offered by VAD subject to the terms, conditions, and restrictions set forth below.

3. VAD must submit a complete draft of its initial tariff that complies with the requirements established by the Commission that corrects any deficiencies identified in Appendix B and including prohibitions on unreasonable deposit requirements.

4. VAD is subject to:

a. The current 0.50% surcharge, increasing to 0.80% on January 1, 2001, applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the Universal Lifeline Telephone Service (Pub. Util. Code § 879; Resolution T-16366, December 2, 1999; Resolution T-16412, May 18, 2000);

b. The current 0.281% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Relay Service and Communications Devices Fund (Pub. Util. Code § 2881; D.98-12-073 and Resolution T-16379, April 20, 2000);

c. The user fee provided in Pub. Util. Code §§ 431-435, which is 0.11% of gross intrastate revenue for the 2000-2001 fiscal year (Resolution M-4800);

d. The current surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-A (Pub. Util. Code § 739.30; D.96-10-066, pp. 3-4, App. B, Rule 1.C; set by Resolution T-16380 at 0.0% for 2000, January 20, 2000);

e. The current 2.6% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-B (D.96-10-066, p. 191, App. B, Rule 6.F., Resolution T-16365 December 2, 1999; Resolution T-16430, September 21, 2000); and

f. The current 0.05% surcharge, increasing to 0.185% on January 1, 2001, applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Teleconnect Fund (D.96-10-066, p. 88, App. B, Rule 8.G; set by Resolution T-16374, effective December 16, 1999; Resolution T-16437, September 21, 2000).

5. Applicant should be exempted from Rule 18(b).

6. Applicant should be exempted from Pub. Util. Code §§ 816-830.

7. Applicant should be exempted from Pub. Util. Code § 851 when the transfer or encumbrance serves to secure debt.

8. Applicant should be granted a CPCN for local exchange resale service and limited facilities-based service utilizing UNEs and equipment installed within existing buildings or structures subject to the terms, conditions, and restrictions set forth in the order below.

9. As long as construction authority is limited to installing equipment in existing buildings or structures, it can be seen with certainty that there is no

possibility that granting this CPCN will have an adverse effect upon the environment.

O R D E R

IT IS ORDERED that:

1. A certificate of public convenience and necessity (CPCN) shall be granted to Verizon Advanced Data, Inc. (VAD or Applicant) to provide competitive local exchange telecommunications services utilizing resale of other carriers' services or unbundled network elements and equipment installed solely within or on existing buildings and structures within the service territories of Pacific Bell, Verizon California Inc., Citizens Telephone Company, and Roseville Telephone Company, and statewide interexchange service contingent on compliance with the terms identified in this order.

2. Authorization for full facilities-based authority involving construction work will require the filing a new application in conformance with California Environmental Quality Act (CEQA) requirements.

3. Applicant shall file a written acceptance of the certificate granted in this proceeding prior to commencing service.

4. Applicant shall correct the outstanding tariff deficiencies identified in Appendix B prior to being authorized to begin service.

5. a. Applicant is authorized to file with this Commission tariff schedules (incorporating Appendix B corrections) for the provisioning of competitive local exchange, services, as described in Ordering Paragraph 1. The Applicant may not offer these services until tariffs are on file, and until any applicable deficiencies have been corrected. Applicant's initial filing shall be made in accordance with General Order (GO) 96-A, excluding Sections IV, V, and VI, and shall be effective not less than one day after approval by the Telecommunications Division.

A. "E. CLCs shall be subject to the following tariff and contract-filing, revision and service-pricing standards:

"(1) Uniform rate reductions for existing tariff services shall become effective on five (5) working days' notice to the Commission. Customer notification is not required for rate decreases.

"(2) Uniform major rate increases for existing tariff services shall become effective on thirty (30) days' notice to the Commission, and shall require bill inserts, or a message on the bill itself, or first class mail notice to customers at least 30 days in advance of the pending rate increase.

"(3) Uniform minor rate increase, as defined in D.95-07-054, shall become effective on not less

    than five (5) working days' notice to the Commission. Customer notification is not required for such minor rate increase.

"(4) Advice letter filing for new services and for all other types of tariff revisions, except changes in text not affecting rates or relocations of text in the tariff schedules, shall become effective on forty (40) days' notice to the Commission.

"(5) Advice letter filings revising the text or location of text material which do not result in an increase in any rate or charge shall become effective on not less than five (5) days' notice to the Commission.

"(6) Contracts shall be subject to GO 96-A rules for NDIECs, except interconnection contracts.

"(7) CLCs shall file tariffs in accordance with PU Code Section 876."

6. Applicant may deviate from the following provisions of GO 96-A: (a) paragraph II.C.(1)(b), which requires consecutive sheet numbering and prohibits the reuse of sheet numbers, and (b) paragraph II.C.(4), which requires that "a separate sheet or series of sheets should be used for each rule." Tariff filings incorporating these deviations shall be subject to the approval of the Commission's Telecommunications Division. Tariff filings shall reflect all fees and surcharges to which Applicant is subject, as described in Conclusion of Law 4. Applicant is also exempt from GO 96-A Section III.G.(1) and (2), which require service of advice letters on competing and adjacent utilities, unless such utilities have specifically requested such service.

7. Applicant shall file as part of its initial tariffs, after the effective date of this order and consistent with Ordering Paragraph 3, a service area map.

8. Prior to initiating service, Applicant shall provide the Commission's Consumer Services Division with Applicant's designated contact persons for purposes of resolving consumer complaints and the corresponding telephone numbers. This information shall be updated if the names or telephone numbers change or at least annually.

9. Applicant shall notify this Commission in writing of the date local exchange service is first rendered to the public within five days after service begins. The same procedure shall be followed for the authorized intraLATA and interLATA services, where applicable.

10. Applicant shall keep its books and records in accordance with generally accepted accounting principles.

11. Applicant shall each file an annual report, in compliance with GO 104-A, on a calendar-year basis using the information-request form developed by the Commission Staff and contained in Appendix A.

12. Applicant shall ensure that its employees comply with the provisions of Pub. Util. Code § 2889.5 regarding solicitation of customers.

13. The certificate granted and the authority to render service under the rates, charges, and rules authorized will expire if both IEC and CLC authority are not exercised within 12 months after the effective date of this order.

14. The corporate identification number assigned to Applicant is U-6454-C which, shall be included in the caption of all original filings with this Commission, and in the titles of other pleadings filed in existing cases.

15. Within 60 days of the effective date of this order, Applicant shall comply with Pub. Util. Code § 708, Employee Identification Cards, reflecting its authority, and notify the Director of the Telecommunications Division (TD) in writing of its compliance.

16. Applicant is exempted from the provisions of Pub. Util. Code §§ 816-830.

17. Applicant is exempted from Pub. Util. Code § 851 for the transfer or encumbrance of property, whenever such transfer or encumbrance serves to secure debt.

18. If Applicant is 90 days or more late in filing an annual report or in remitting the fees listed in Conclusion of Law 4, the TD shall prepare for Commission consideration a resolution that revokes that petitioner's CPCN, unless it has received written permission from the TD to file or remit late.

19. It can be seen with certainty that no material adverse environmental impacts will result from the limited CPCN authority granted in this order.

20. Applicant shall comply with all applicable rules adopted in the Local Exchange Competition proceeding (R.95-04-043, I.95-04-044), the Commission's rules and regulations for NDIECs set forth in D.93-05-010 and D.90-08-032, as well as all other applicable Commission rules, decisions, General Orders, and statutes that pertain to California public utilities, subject to the exemptions granted in this decision.

21. The application of VAD is granted only as set forth above.

22. Applicant's motion to file under seal the information contained in its Exhibit H is granted. The exhibits shall remain under seal for a two-year period from today's order unless applicant files a subsequent request for good cause shown to extend the period.

23. Application 00-06-052 is closed.

This order is effective today.

Dated December 21, 2000, at San Francisco, California.

TO: ALL COMPETITIVE LOCAL CARRIERS AND INTEREXCHANGE

TELEPHONE UTILITIES

Article 5 of the Public Utilities Code grants authority to the California Public Utilities Commission to require all public utilities doing business in California to file reports as specified by the Commission on the utilities' California operations.

A specific annual report form has not yet been prescribed for the California interexchange telephone utilities. However, you are hereby directed to submit an original and two copies of the information requested in Attachment A no later than March 31st of the year following the calendar year for which the annual report is submitted.

Address your report to:

Failure to file this information on time may result in a penalty as provided for in §§ 2107 and 2108 of the Public Utilities Code.

If you have any question concerning this matter, please call (415) 703-1961.

Information Requested of California Competitive Local Carriers and Interexchange Telephone Utilities.

To be filed with the California Public Utilities Commission, 505 Van Ness Avenue, Room 3251, San Francisco, CA 94102-3298, no later than March 31st of the year following the calendar year for which the annual report is submitted.

(END OF APPENDIX A)

APPENDIX B

Page 1

List of deficiencies in tariffs filed by Bell Atlantic Network Data, Inc. in A.00-06-052 to be corrected in Tariff Compliance filing.

1. On the top right-hand corner of every tariff sheet, add the words "Schedule Cal. P.U.C. No. 1-T."

2. On the bottom margin of every tariff sheet, center the words "Issued by:" Refer to GO 96-A page 5, and Exhibit 1-A.

3. Sheet 7: CLC needs to state the availability of the tariff to be inspected in a California office.

4. Sheet 66, Rule 2(3): CLC needs to state in the tariff that the confirmation letter must be in a language other than English if the sale was in another language. Refer to Rule 2 of Appendix B of D.95-07-054.

5. Sheet 67, Rule 4: Include Rule 4 of Appendix B of D.95-07-054 into the CLC tariff.

6. Sheet 68, Rule 5(1): CLC needs to state in the tariff that in the event a customer requests services in addition to basic service, the average bill will reflect the aggregate services requested by the customer. Refer to Rule 5 of Appendix B of D.95-07-054.

7. Sheet 68, Rule 5(2): State in the tariff for advance payment requirement: "At the time an application for service is made, an applicant may be required to pay an amount equal to one month's service charges and/or the service connection and/or equipment charges which may be applicable, as well as any non recurring charges for any required special construction. The amount of the first month's service is credited to the Customer's account on the first bill rendered. Company may not require advance payments for usage".

8. Sheet 68, Rule 6: Include Rule 6B, 6C and 6D from Appendix B of D.95-07-054 into the CLC tariff.

9. Sheet 69, Rule 8: Modify Rule 8(2) and 8(6) from the tariff. Any objections to billed charges can be reported within three years after receipt. Refer to PU Code § 736.

APPENDIX B

Page 2

10. Sheet 69, Rule 8(7): Remove the words "without incurring any liability" from the tariff. CLC needs to concur with Pacific Bell or GTEC's Limitation of Liability tariff as appended to D.95-12-057.

11. Sheet 70, Rule 8(8): Modify Rule 8(8) from the tariff. Any objections to billed charges can be reported within 3 years after receipt. Refer to PU Code section 736.

12. Sheet 70, Rule 8(11): CLC needs to state in the tariff that the "due by" date shall be no sooner than 15 days of the date of presentation. Refer to Rule 8B of Appendix from D.95-07-054. Also, include Rule 8E from Appendix B of D.95-07-054 into the CLC tariff.

13. Sheet 71, Rule 10: On the 1st paragraph, remove the words ""without incurring any liability" from the tariff. CLC needs to concur with Pacific Bell or GTEC's Limitation of Liability tariff as appended to D.95-12-057. Also, include Rule 10A(3) from Appendix B of D.95-07-054 into the CLC tariff.

14. Sheet 74, Rule 13: CLC must provide and concur with Pacific Bell or GTEC's Limitation of Liability tariffs regarding credit for service interruptions. Refer to D.95-12-057.

15. CLC must state concurrence with either Pacific, GTEC, Roseville or Citizen's boundaries, or file its own service area map.

16. Include actual sample forms in the CLC tariff.

17. Remove the Los Angeles Consumer Affairs Branch address on pages 67 and 70 from the CLC tariff.

(END OF APPENDIX B)

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