II. Background

GST filed this application seeking expedited approval to withdraw or discontinue its remaining telecommunications services in California and to cancel its operating authority.² GST filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on May 17, 2000. Time Warner Telecom Inc. (Time Warner) purchased most of GST's assets but did not purchase GST's Mare Island customers and facilities. GST provided facilities-based local exchange services to approximately 105 business customers on Mare Island with 600 lines. GST no longer has the resources to provide those services. GST is attempting to find a purchaser for its Mare Island facilities and is discussing with Pacific the transfer of GST's customer base after Pacific makes certain cross connections at GST's switching office on Mare Island. Pacific currently provides local exchange services to all residential customers and to certain business customers on Mare Island. Notice of this application appeared in the Commission's Daily Calendar on May 25, 2001. The City of Vallejo (Vallejo) filed a protest on June 22, 2001, and stated it appeared GST intended to unlawfully discontinue telecommunications services to GST's Mare Island customers. GST replied on July 5, 2001, that it fully intended to comply with the Commission's procedures for service withdrawal.

GST seeks expedited approval of its request to withdraw services. GST anticipated the transfer of its remaining customer base and assets to a certificated provider of telecommunications services and intended to request authorization for such a transfer under Section 851 and withdraw this application.

In D.94-12-062, we granted GST Telecom, Inc.'s application to acquire Pacific Lightwave, Inc. (PLI). By D.94-04-001, we authorized PLI to provide interLATA telecommunications services and high-speed intraLATA private line services. We granted GST a certificate of public convenience and necessity (CPCN) in D.95-04-058 and authorized GST to provide interLATA services and intraLATA high-speed private line services. In D.95-12-057, we granted GST's petition to provide competitive facilities-based local exchange services, and in D.96-02-072, we granted GST's petition to provide competitive resale local exchange services.

GST provides facilities-based competitive local exchange services to its Mare Island customers. GST discontinued long distance services, both interstate and intrastate, on or about July 23, 2001, after sending notices on June 5, 2001 and July 6, 2001.³ GST's facilities include a remote switch, rights-of-way and conduit on Mare Island, and long-term easements for two buildings and two huts from which operations and service may be conducted.

On August 6, 2001, GST filed a Motion for Interim Relief. GST requested an interim order (1) requiring Pacific and GST to complete the cross connections that will enable Pacific to provide local exchange services to GST's current customers on Mare Island; (2) waiving the requirements of Pub. Util. Code § 2889.5 in connection with the transfer of the Mare Island customers from GST to Pacific; (3) authorizing GST to discontinue providing local exchange services to Mare Island customers as soon as (a) the cross connections at the GST switching office on Mare Island are complete, (b) each GST Mare Island customer has had at least thirty (30) days notice of the transfer of service to Pacific, and (c) GST has satisfied any remaining requirements for discontinuing service; and 4) revoking GST's CPCN once these requirements of GST and Pacific have been met. On August 16, 2001, GST sent a letter to its customers informing them of its motion, its request for Commission approval to transfer its customers' local service to Pacific on or before September 30, 2001, the opportunity to transfer to a carrier other than Pacific, and a toll-free number for questions.

Vallejo supported GST's motion and suggested the Commission only authorize GST to discontinue service when Pacific had transferred the Mare Island customers to its service. Pacific opposed GST's motion, because certain operational steps must occur before Pacific can provide service to GST's customers and GST is still pursuing arrangements to transfer its customers to another carrier.

On September 28, 2001, the assigned administrative law judge (ALJ) issued a ruling partially granting GST's motion and preliminarily determining that the requirements of Pub. Util. Code § 2889.5 do not apply to the transfer of GST's customers to Pacific and that GST has satisfied the notice requirements for the transfer of its customers to Pacific. In its motion, GST notes that it has no customer deposits and that it has paid all current universal service surcharges and will pay remaining surcharges as due.

On October 31, 2001, the ALJ issued a ruling requesting additional information from GST concerning the discontinuance of intrastate long distance and/or toll services to its Mare Island customers and the completion of the cross connections. GST responded on November 2, 2001, that it withdrew from providing intrastate long distance and/or toll service on August 27, 2001, when its authority to withdraw from interstate long distance services was effective.⁴ The projected date of discontinuance was July 23, 2001, and most of GST's customers were transferred on that date. GST's local service representative attempted to contact all customers to ensure they had chosen a primary interexchange carrier (PIC) and to verify that such PIC codes existed in Time Warner's host switch. GST could not reach all customers prior to July 23, 2001; as a result, approximately ten to fifteen customers temporarily lost long distance service shortly after July 23, 2001. When those customers notified GST, GST took care of the PIC change on that day.

As of November 1, 2001, 580 of 690 cross connections had been completed, although progress was slowing. Ninety-one customers had transferred to Pacific, and five customers still needed to be transferred.