Findings of Fact

1. UCAN and Pacific, the two parties to this proceeding, have settled all issues and memorialized their agreement in the Settlement which is attached to their motion filed on June 22, 2000.

2. The settlement is unopposed.

3. The settlement is an all-party settlement.

4. Before they entered into settlement negotiations, the parties completed extensive discovery, reached a comprehensive list of stipulated facts, and drafted and distributed prepared testimony.

5. Informing identified customers about the prior, erroneous assessments of toll calling plan value will empower these customers to make informed choices about whether or not to purchase a toll calling plan in future, and if they have purchased one already, to decide whether it does meet their needs.

6. A telemarketing feedback loop, like the one detailed in Attachment A of the Settlement, is critical to enable timely referral and resolution of any consumer complaints which arise in connection with marketing activities like the one at issue in this complaint.

7. In the future, Pacific should identify which monthly telephone bill is used as the basis for any customer savings calculations. Pacific should not use "averages," since, for example an "average" of several months' usage data may not reflect accurately whether an optional, monthly service plan has savings potential.

8. The Settlement adequately redresses the harm resulting from Pacific's past error and proactively, will reduce the likelihood of future marketing errors.

9. The settlement is reasonable and in the public interest.

Conclusions of Law

1. The Settlement meets the all-party settlement guidelines outlined in D.92-12-019.

2. The Settlement comports with the requirements of Rule 51.1(e), as well as the public interest criteria articulated in D.88-12-083 and followed in subsequent Commission decisions.

3. Under the facts of this case, a penalty is not warranted.

4. The Settlement should be adopted.

5. The terms of the Settlement comply with Rule 51, which provides that adoption of a settlement does not constitute approval of, or precedent regarding, any principle or issue in the proceeding or in any future proceeding.

6. In order to provide certainty to the parties and to ensure, for the benefit of customers, that the provisions of the Settlement are implemented as promptly as practicable, this order should be effective immediately.

ORDER

IT IS ORDERED that:

1. The Settlement Proposal between Utility Consumers' Action Network and Pacific Bell is approved.

2. Case 99-06-053 is closed.

This order is effective today.

Dated October 25, 2001, at San Francisco, California.

LORETTA M. LYNCH

President

HENRY M. DUQUE

RICHARD A. BILAS

CARL W. WOOD

GEOFFREY F. BROWN

Commissioners

SETTLEMENT AGREEMENT

(NOT AVAILABLE IN ELECTRONIC FORM.
SEE CPUC FORMAL FILES FOR A COPY OF THE SETTLEMENT AGREEMENT.)