ALJ/JLG/sid Date of Issuance 5/12/2009
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Rulemaking on the Commission's own Motion into the Exemption from Pub. Util. Code § 851 for Uniform Regulatory Framework and other Competitive Carriers. |
FILED PUBLIC UTILITIES COMMISSION MAY 7, 2009 SAN FRANCISCO, CALIFORNIA RULEMAKING 09-05-006 |
ORDER INSTITUTING RULEMAKING TO CONSIDER
EXEMPTING COMPETITIVE TELECOMMUNICATIONS
CARRIERS FROM PUB. UTIL. CODE § 851
1. Summary
With this order, the Commission institutes a rulemaking to consider exemptions for specific actions of all telecommunications carriers in California, except general rate case incumbent local exchange carriers (GRC ILECs),1 from Pub. Util. Code § 851's requirements for the disposition or encumbrance of necessary and useful property. 2 Section 853(b) permits the Commission to exempt any public utility or class of public utilities from § 851 if applying § 851 procedures is not necessary in the public interest.3 The primary goal of this rulemaking is to consider whether granting exemptions from § 851 is appropriate for Uniform Regulatory Framework (URF) carriers.4 Secondarily, the Commission will consider whether conditions under § 853(b) should be placed on those exemptions.5 The Respondents to this rulemaking are the URF carriers identified in Appendix A. URF carriers include URF ILECs,6 competitive local exchange carriers (CLEC),7 and non-dominant interexchange carriers (NDIEC).8
1 The Commission regulates GRC ILECs through cost-of-service reviews as required by General Order (GO) 96-B. These carriers are designated carriers of last resort in their franchise territories per D.96-10-066, which defined what is meant by basic telephone service for Universal Service funding.
2 Pub. Util. Code § 851 provides:
No public utility . . . shall sell, lease, assign, mortgage, or otherwise dispose of or encumber the whole or any part of its . . . line, plant, system, or other property necessary or useful in the performance of its duties to the public, or any franchise or permit or any right thereunder, nor by any means whatsoever, directly or indirectly, merge or consolidate its . . . line, plant, system, or other property, or franchises or permits or any part thereof, with any other public utility, without first either having secured an order from the commission authorizing it to do so for qualified transactions valued above five million dollars, or for qualified transactions valued at five million dollars or less, filed an advice letter and obtained a resolution from the commission authorizing it to do so. The Commission shall determine the types of transactions valued at five million dollars or less, that qualify for advice letter handling. For a qualified transaction valued at five million dollars or less, the commission may designate a procedure different than the advice letter procedure if it determines that the transaction warrants a more comprehensive review. . .
3 Section 853(b) provides: The commission may from time to time by order or rule, and subject to those terms and conditions as may be prescribed therein, exempt any public utility or class of public utility from this article if it finds that the application thereof with respect to the public utility or class of public utility is not necessary in the public interest. The commission may establish rules or impose requirements deemed necessary to protect the interest of the customers or subscribers of the public utility or class of public utility exempted under this subdivision. These rules or requirements may include, but are not limited to, notification of a proposed sale or transfer of assets or stock and provision for refunds or credits to customers or subscribers.
4 URF carriers have full pricing flexibility over substantially all of their rates and charges. URF carriers include incumbent local exchange carriers regulated through the Commission's uniform regulatory framework established in D.06-08-030, competitive local exchange carriers and interexchange carriers.
5 This relief from § 851 procedures is being considered for URF carriers only. The rationale for considering an exemption from § 851 does not apply to GRC ILECs and other regulated industries.
6 An URF ILEC is a local telephone company that used to be the exclusive certificated local telephone service provider in a franchise territory established before the Telecommunications Reform Act of 1996. See Pub. Util. Code §§ 234 and 1001.
7 CLECs must obtain a CPCN to provide local telephone services in competition with ILECs in the service territories where ILECs formerly were the sole certificated provider. See Pub. Util. Code §§ 234 and 1001 and D.95-07-054.
8 A non-dominant interexchange carrier or long distance carrier is exempt from obtaining a CPCN under § 1013 and is only required to register with the Commission before providing long distance telephone services in California.
