10. Assignment of Proceeding

This proceeding is assigned to President Michael R. Peevey and ALJs Steven Kotz and John E. Thorson.

Findings of Fact

1. Our First Interim Decision, D.01-07-026 (July 12, 2001), adopted revisions to GO 96-A chiefly concerned with (1) use of the Internet to publish tariffs, and (2) representations made by a utility (in advertising or otherwise) regarding any tariffed service of that utility.

2. Our Second Interim Decision, D.02-01-038 (January 9, 2002), concerned the notice that a telecommunications utility must provide its affected customers when that utility proposes a rate increase, a withdrawal of service, or certain kinds of transfers.

3. Our Third Interim Decision, D.05-01-032 (January 13, 2005), adopted comprehensive rules regarding advice letter contents and the review and disposition of advice letters.

4. Today's decision integrates the General Rules previously adopted with the rest of the General Rules. Building upon the February 14, 2001, Draft Decision and comments on that decision, today's decision also adopts Industry Rules where our practices differentiate between energy and water utilities. This decision codifies these sets of rules into GO 96-B.

5. We have drafted GO 96-B with reference to the policy initiatives set forth in our most recent "action plans" for energy and water (October and December 2005, respectively), and various reports and ongoing rulemakings for telecommunications.

6. Because we are actively modifying the regulatory structure of the telecommunications industry (see D.06-08-030), we will publish revised Telecommunications Industry Rules at a latter date to reflect our new Uniform Regulatory Framework.

7. We project that the number and kinds of authorizations requested of the Commission will remain high or will actually increase, even in industries, such as the telecommunications industry, for which regulation is in many respects becoming more light-handed.

8. By carefully defining, clarifying, and streamlining the advice letter process, we ensure optimal use of that process, which is much shorter and much less labor-intensive than formal applications.

9. In devising our timelines for advice letter review, we have relied chiefly on Pub. Util. Code § 455.

10. While Section 455 allows up to 330 days (including initial review and periods of suspension) for disposition of an advice letter, review of most advice letters under GO 96-B will consume much less time.

11. The review of most advice letters under GO 96-B will be more expeditious because we expressly delegate authority to the Industry Divisions to handle the review and disposition of many kinds of advice letters, allow certain noncontroversial advice letters to be immediately effective pending disposition, and limit the length of time for which the tariff change may be suspended.

12. GO 96-B separates advice letters into two broad groups: advice letters disposed of by staff, where approval or rejection is ministerial; and advice letters disposed of by Commission resolution, where approval or rejection requires the exercise of discretion.

13. Advice letters submitted for staff disposition are divided between those that are "effective pending disposition," i.e., they may be implemented before approval (Tier 1), and those that are effective, and may only be implemented, on or after approval (Tier 2). Advice letters requiring a Commission resolution go to "Tier 3" under all of the Industry Rules.

14. The tier under which a utility submits an advice letter does not irrevocably dictate the mode of disposition of that advice letter. If the utility has designated for disposition by staff an advice letter that, under the applicable Industry Rules, belongs in the tier for advice letters to be resolved by the Commission, GO 96-B authorizes staff to reject the advice letter on that basis.

15. The Energy Industry Rules and Water Industry Rules provide more detailed requirements for advice letters and tariffs in those industries.

Conclusions of Law

1. GO 96-B is broadly consistent with policy initiatives set forth in our most recent "action plans" for energy and water (October and December 2005, respectively), and various reports and ongoing rulemakings for telecommunications.

2. The General Rules and Industry Rules adopted in our earlier decisions (D.01-07-026, D.02-01-038, and D.05-01-032) and today's decision should be codified and known prospectively as GO 96-B.

3. Today's order should be made effective immediately, and GO 96-B, consisting of the General Rules set forth in Appendix A and the Industry Rules set forth in Appendices B and C, should be made applicable to all advice letters submitted on July 1, 2007, or thereafter.

4. Advice letters submitted before June 30, 2007, should be reviewed under GO 96-A, as modified by our First, Second, and Third Interim Decisions.

FOURTH INTERIM ORDER

IT IS ORDERED that:

1. General Order (GO) 96-B, consisting of the General Rules set forth in Appendix A and the Industry Rules set forth in Appendices B and C, is adopted, effective July 1, 2007. GO 96-B shall govern the review and disposition of advice letters submitted on or after its effective date.

2. Except for provisions of GO 96-A previously superseded by our adoption of the First, Second, and Third Interim Decisions (Decision (D.) 01-07-026,
D.02-01-038, and D.05-01-032), GO 96-A shall continue to govern the review and disposition of any advice letter submitted on or before June 30, 2007. Any advice letter submitted on or before June 30, 2007, that is unprotested (i.e., no timely protest was filed) and is still pending as of June 30, 2007, shall be automatically approved as of that date unless, on or before that date, the reviewing Industry Division either has (1) placed on the Commission's agenda a draft resolution disposing of the advice letter, or (2) made an unanswered data request or otherwise given written notice to the utility that its advice letter is undergoing active review.

3. The Industry Divisions will make available, on the Commission's website and through other public means, up-to-date sample advice letter and tariff forms.

4. The Executive Director will publish GO 96-B on the Commission's web site and otherwise make it readily available to utilities and interested persons.

5. This proceeding remains open for the adoption of Telecommunications Industry Rules.

6. Within 30 days of the mailing of this decision, telecommunications utilities and other interested persons may file comments in Rulemaking 05-04-005

identifying what subjects they believe should be listed under each of the three tiers anticipated for the proposed Telecommunications Industry Rules. Reply comments may be filed within 15 days thereafter.

This order is effective today.

Dated January 25, 2007, at San Francisco, California.

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