V. Comments on Draft Decision

The draft decision was mailed to the parties in accordance with Pub. Util. Code § 311(g)(3) and Rule 77.7(f)(9) of the Rules of Practice and Procedure. The public necessity requires a shortened comment cycle in order to ensure that GST's Mare Island customers receive uninterrupted local service. This necessity outweighs parties' need for the full comment cycle, especially because an earlier ALJ ruling anticipated resolution of some of the issues before us. Comments were filed by GST and Vallejo on November 19, 2001. Reply comments were filed by Pacific on November 26, 2001. We have taken the comments into account, as appropriate, in finalizing this order.

Findings of Fact

1. GST was authorized to provide interLATA and intraLATA services in 1995. GST was authorized to provide competitive facilities-based and resale local exchange services in 1995 and 1996.

2. GST acquired PLI in 1994.

3. GST currently provides facilities-based local exchange services to approximately 105 business customers on Mare Island with 600 lines.

4. GST seeks approval to withdraw or discontinue its remaining telecommunications services in California and to cancel its operating authority.

5. GST filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on May 17, 2000.

6. Time Warner purchased most of GST's assets but did not purchase GST's Mare Island customers and facilities.

7. 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.

Conclusions of Law

1. Under GO 96-A, Commission approval is required before a carrier may withdraw from the provision of public utility service.

2. The customer notice requirements of D.97-06-096 apply to customer base transfers such as this one.

3. Pub. Util. Code § 2889.5 does not apply to this customer base transfer.

4. GST's withdrawal from the provision of facilities-based competitive local exchange services should be authorized when it has successfully completed the transfer of its customers to Pacific.

5. GST's CPCNs are revoked as of the date its customers are successfully transferred to Pacific.

6. 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.

7. Since this order resolves protestant's concern that GST would withdraw from providing service without Commission approval, this decision should be effective on the date it is signed.

ORDER

IT IS ORDERED that:

1. The application of GST Telecom California, Inc. and GST Pacific Lightwave, Inc. (GST) to withdraw from providing facilities-based competitive local exchange services is granted subject to the terms and conditions contained in this order.

2. GST shall file a compliance report with the assigned administrative law judge 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.

3. GST's certificates of public convenience and necessity are revoked upon the filing of the compliance report.

4. This proceeding is closed.

This order is effective today.

Dated November 29, 2001, at San Francisco, California.

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