7. Ratemaking Considerations

Applicant has asked to be treated as a small LEC for ratemaking purposes and proposes to initially establish rates and charges for its services that mirror the standard rates and/or charges of Pacific for the same services. Once Applicant has completed construction of its facilities and has a minimum of one calendar-year operating experience to enable it to prepare valid intrastate test-year results, projections, and costs studies, Applicant would file a general rate case (GRC) with the Commission. Applicant shall not change its tariffed rates and charges until authorized by a Commission decision following the GRC.

We note that under these circumstances, Applicant will not be eligible for funding from California High Cost Fund-A until after the Commission has acted on a GRC filed by Applicant in compliance with D.91-09-042 and in accordance with the implementing guidelines established in the Appendix of the same Decision.