4. Preliminary Scoping Memo

This rulemaking is instituted for the purpose of considering broader exemptions from § 851 and conditions on those exemptions pursuant to § 853(b) for URF carriers. The issues to be considered are:

1. Are exemptions from § 851 for all URF carriers, including large and medium sized ILECs, CLECs and NDIECs, in the public interest?

2. Would granting exemptions from § 851 for URF carriers, including large and medium sized ILECs, CLECs and NDIECs, promote competition?

3. Should conditions be imposed on the relief granted pursuant to § 853(b)?

4. If conditions should be imposed, should they conform to the conditions imposed in D.97-06-096, D.04-10-038, and D.07-11-048 concerning CEQA requirements, withdrawals from providing basic service, customer notification, eligible entities (certified carrier) and transactions subject to § 854(b) and (c)?

5. If conditions are imposed, should they conform to the conditions imposed in the pilot program renewed in Res. ALJ-202, specifically transactions that involve unusual issues of fact or law or property that is still necessary and useful in the public utility operations?

6. Should carriers of last resort12 be eligible for an exemption for property that still is necessary and useful in the public utility operations?

7. Should central offices with collocation be included in transactions eligible for exemption from § 851? If yes, what conditions should be placed on that exemption to ensure consistency with the requirement that ILECs provide CLECs available space to collocate CLEC equipment?

8. Are there any other conditions that should be placed on relief from § 851?

Parties to Application (A.) 06-07-026, which resulted in D.07-11-048, requested that the Commission take official notice of comments filed in that proceeding. For purposes of the record in this proceeding, a preferable process would be for parties to designate any comments or portions of comments filed in A.06-07-046 upon which they propose the Commission should rely in reaching a decision in this rulemaking. The parties shall attach those comments or portions thereof to their comments in this proceeding and list the issues set forth in this rulemaking to which the comments are responsive and the pages on which the A.06-07-046 comments respond to the issues.

The Commission seeks comments on the issues described above according to the schedule discussed below.

12 Pursuant to D.96-10-066, a carrier seeking to be a carrier of last resort must file a notice of intent with the Commission in order to have access to high cost fund subsidies. Carriers of last resort are required to serve upon request all customers within their designated service areas. Once a carrier is designated as a carrier of last resort, the carrier must get the Commission's approval to opt out of its obligation to serve.

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