COM/CRC/jt2 Date of Issuance 10/5/2007

Decision 07-10-013 October 4, 2007

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Consider the Adoption of a General Order and Procedures to Implement the Digital Infrastructure and Video Competition Act of 2006.

Rulemaking 06-10-005 (Filed October 5, 2006)

OPINION RESOLVING ISSUES IN PHASE II

TABLE OF CONTENTS

Title Page

OPINION RESOLVING ISSUES IN PHASE II 11

1. Summary 22

2. Build-Out Requirements 33

2.1 Summary of Statutory Requirements 44

2.2 Positions of the Parties 77

2.3 Adopted Compliance Mechanisms for
Smaller State Video Franchise Holders 1313

3. Additional Data Reporting 1818

3.1 Positions of the Parties 2020

3.2 Adopted Addition to Data Reporting Requirements 2121

4. Revision to General Order 169 2424

5. Amendment to Commission Procedural Rules 2626

6. Renewal of Video Franchises 2828

7. Consideration of Other Issues 2929

8. Comments on Proposed Decision 3030

8.1 Response to Comments on Build-Out Requirements 3131

8.2 Response to Comments on Additional Data Reporting 4040

9. Assignment of Proceeding 4444

Findings of Fact 4444

Conclusions of Law 4545

ORDER 4747

Appendix A - Rule 4.1 of the Commission's Rules of Practice and Procedure

OPINION RESOLVING ISSUES IN PHASE II

1. Summary

In today's decision, we resolve issues in Phase II of this rulemaking raised by the assigned Commissioner's May 7, 2007 Scoping Memo for Phase II and Request for Comments; Ruling on Notice of Intent to Claim Intervenor Compensation (Scoping Memo), on which we received two rounds of written comments.

The Scoping Memo solicited comment on the following issues: (i) the build-out requirements for video franchise holders with less than one million telephone customers (including case-by-case application procedures); (ii) the need for additional reporting requirements to enforce the Digital Infrastructure Video Competition Act of 2006 (DIVCA);¹ (iii) amendment to the Commission's Rules of Practice and Procedure to conform requirements to DIVCA; (iv) errors or omissions in the state video franchise certificate or other attachments to the DIVCA Phase I decision; and (v) renewal of state video franchises.

Only the first two issues are contested. We adopt build-out requirements for state video franchise holders with less than one million telephone customers, largely mirroring the statutory build-out requirements for holders with more than one million telephone customers. We adopt one additional reporting requirement narrowly focused to carry out the legislative intent to ensure non-discriminatory build-out.

Other issues are resolved without contention. We have amended our Rules of Practice and Procedure to reflect our expanded complaint jurisdiction under DIVCA. Lastly, we set a target date of 2011 for opening a rulemaking to adopt principles and policies regarding state video franchise renewals.

¹ The Digital Infrastructure and Video Competition Act of 2006 (DIVCA), Assembly Bill 2987 (Ch. 700, Stats. 2006).