Procedural Background

This matter comes before the Commission pursuant to the dispute resolution procedures set forth in Article 13 of the Verizon/Pac-West Interconnection Agreement, dated June 21, 1996 (Agreement). Article 13 provides that if Verizon and Pac-West are unable to resolve a dispute arising under the Agreement, either party may invoke the dispute resolution procedure set forth in Commission Decision (D.) 95-12-056. Under the procedure, in the event of a dispute over terms of an interconnection agreement, the parties must first try to resolve the matter informally at the executive level. If that is unsuccessful, a party may file a motion seeking mediation before an ALJ. If mediation fails, the ALJ then directs the parties to file pleadings and rules on the dispute. If either party disagrees with that ruling, the party may contest the ruling by filing a formal complaint¹ with the Commission. See D.95-12-056, Ordering Paragraph 11; 63 CPUC2d 700, 749-50.

In accord with the process, on August 1, 2001, Pac-West filed² a motion for dispute resolution. On September 27, 2001, the assigned ALJ issued a ruling in favor of Pac-West. On October 15, 2001, Verizon filed this complaint. Pac-West responded on November 9, 2001. Identifying the question at issue to be one of law rather than that of fact, the parties waived evidentiary hearings. The presiding ALJ in this proceeding held oral argument on November 26, 2001.