III. Discussion

We grant GST's request to withdraw from providing its remaining telecommunications services in California and revoke GST's authority to provide interLATA and intraLATA services. Under General Order (GO) 96-A Section XIV, GST must continue to provide service to its Mare Island customers until the Commission authorizes it to discontinue that service. Our authorization is effective upon the successful transfer of GST's customers to Pacific. GST shall file a compliance report with the assigned ALJ within 30 days of the effective date of this decision to provide the date when the successful transfer of its customers to Pacific was completed.

We confirm the ALJ's preliminary determination that the third party verification requirements of Pub. Util. Code § 2889.5 do not apply to the customer base transfer from GST to Pacific, the incumbent local exchange carrier and carrier of last resort (COLR). (See, e.g., D.97-12-119, 1997 Cal. PUC LEXIS 1146 *2.) We also confirm the preliminary determination that GST has met the advance customer notice requirements necessary prior to withdrawing from providing local service. We have found that the notice requirements for transfer of a customer base from one carrier to another, adopted in D.97-06-096, were generally applicable to the customer base transfer from a competitive local carrier withdrawing from the market to a COLR. (Re Verizon Select Services Inc., D.01-06-036.) GST has provided written notice 30 days in advance of the transfer and has provided a description of the transfer, the opportunity to switch to a carrier other than Pacific, and a toll-free number for questions.

GST should have notified customers that not only the FCC but also this Commission had to approve GST's plans. ⁵ GST also should have provided 30 days advance notice of discontinuance of intrastate long distance and toll services, as required under § 2889.3. As a result, customers switched providers before it was necessary, and some customers had a short period where they did not have a PIC.

In D.01-06-036, we required Verizon Select Services Inc. (VSSI) to provide restitution to customers that switched to a more expensive or inferior bundled service alternative under the mistaken belief that their service would be discontinued. Customers opposed VSSI's proposal to withdraw from providing bundled local and long distance services and features, because alternatives were more costly or less convenient. Here, no customers have complained that GST's discontinuance of their intrastate long distance and/or toll services forced them to obtain more expensive or inferior service. Vallejo protested GST's initial proposal to withdraw from local service but did not object to GST's withdrawal from the long distance and toll markets. Since there are many competitive alternatives for long distance and toll services, GST's customers most likely found acceptable alternatives. Under the circumstances, it is not necessary to require restitution. However, new applicants should be careful to indicate in their customer notices the Commission's role in approving plans to discontinue service, including intrastate long distance and toll services.

Under the California Environmental Quality Act (CEQA) and Rule 17.1 of the Commission's Rules of Practice and Procedure, we must consider the environmental consequences of projects that are subject to our discretionary approval. (Public Resources Code § 21080.) The cross connections Pacific must complete before GST can transfer its customer base do not require the construction of new facilities. Therefore, GST's withdrawal from providing service will have no significant effect on the environment. Consequently, the Commission need not perform further environmental review. (See CEQA Guideline 15061(b)(3).)

In Resolution ALJ 176-3064, dated May 25, 2001, the Commission preliminarily categorized this proceeding as ratesetting, and preliminarily determined that hearings were not necessary. No party has requested a hearing. We conclude no hearing is necessary and affirm the preliminary determinations.