Comments on Draft Decision

While not required by Public Utilities Code Section 311(g) and Rule 77.7 of the Rules, the draft decision of ALJ Reed in this matter was mailed to the parties in order to provide a complete record. Comments were filed on December 27, 2001, and reply comments were filed on January 2, 2002. We have reviewed the comments, and taken them into account, as appropriate, in finalizing this order.

IT IS ORDERED that:

1. Verizon California Inc. (Verizon) shall not be entitled without agreement by Pac-West Telecomm, Inc. (Pac-West) or appropriate order by this Commission or by the Federal Communications Commission (FCC) to apply the FCC rate caps to Internet service provider (ISP)-bound traffic in lieu of reciprocal compensation rates specified under Section 8.01(2) of the Telecommunications Facility Interconnection Agreement, dated as of June 21, 1996 (interconnection agreement).

2. Verizon shall pay in full the reciprocal compensation charges specified under Section 8.01(2) of the interconnection agreement for all ISP-bound traffic for as long as the interconnection agreement is in effect and is not modified by written amendment or by appropriate direction of the FCC or this Commission.

3. Within three business days following the issuance of this order, Verizon shall pay Pac-West all amounts as required by the interconnection agreement it has withheld from Pac-West based upon its position that it has implemented the FCC's Order on Remand and Report and Order in Common Carrier Docket Nos. 96-98 and 99-68, together with interest thereon at the three-month commercial paper rate.

4. This proceeding is closed.

This order is effective today.

Dated January 23, 2002, at San Francisco, California.

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