VI. Comments on Draft Decision

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Pub. Util. Code § 311(g)(2), the otherwise applicable 30-day period for public review and comment is being waived.

Findings of Fact

1. Broadwing filed its application seeking an expansion of its CPCN to construct and install facilities for the provision of interLATA and intraLATA exchange services within California.

2. There are no protests to the application.

3. The Commission undertook and completed a Draft IS/MND for Broadwing California Fiber Optic Cable Projects.

4. The Commission prepared a response to written comments received during the public review period on the Draft IS/MND to complete the Final IS/MND submitted by the Director of the Commission's Energy Division on December 10, 2001.

5. Broadwing proposes to install small-diameter, high-density conduits carrying fiber optic cables primarily within existing, disturbed rights-of-way (e.g., roads, railroads, or utility corridors) over several linear routes across California.

6. The IS/MND concludes that, given the construction approach, design elements, and the additional mitigation measures included in the IS/MND, no significant adverse impacts the environment will occur.

7. Broadwing has demonstrated that it has a minimum of $100,000 in cash or cash equivalent reasonably liquid and readily available to meet its start-up expenses.

8. Applicant's technical experience is demonstrated by supporting documentation which provides summary biographies of key management personnel.

9. Exemption from the provision of Pub. Util. Code §§ 816-830 has been granted to other nondominant carriers. (See, e.g., D.86-10-007 and D.88-12-076.)

10. The transfer or encumbrance of property of nondominant carriers has been exempted from the requirements of Pub. Util. Code § 851 whenever such transfer or encumbrance serves to secure debt. (See D.85-11-044.)

11. The provision of interexchange telecommunications service by resale or by the utilization of facilities covered under the Final IS/MND would not have a significant effect on the environment.

Conclusions of Law

1. Broadwing has the financial ability to provide the proposed services, and has made a reasonable showing of technical expertise in telecommunications.

2. Public convenience and necessity require the interexchange services to be offered by Broadwing subject to the terms, conditions, and restrictions set forth below.

3. Broadwing is subject to:

a. The current 1.45% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the Universal Lifeline Telephone Service Trust Administrative Committee Fund (Pub. Util. Code § 879; Resolution T-16594, October 10, 2001);

b. The current 0.481% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Relay Service and Communications Devices Fund (Pub. Util. Code § 2881; D.98-12-073 and Resolution T-16504, March 27, 2001);

c. The user fee provided in Pub. Util. Code §§ 431-435, which is 0.11% of gross intrastate revenue for the 2000-2001 fiscal year (Resolution M-4800);

d. The current surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-A (Pub. Util. Code § 739.3; D.96-10-066, pp. 3-4, App. B, Rule 1.C; set by Resolution T-16521 at 0.200%, June 14, 2001; set by Resolution T-16589 at 0.300% effective January 1, 2002, October 10, 2001);

e. The current 1.47% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California High Cost Fund-B (D.96-10-066, p. 191, App. B, Rule 6.F., Resolution T-16585, October 10, 2001); and

f. The current 0.300% surcharge applicable to all intrastate services except for those excluded by D.94-09-065, as modified by D.95-02-050, to fund the California Teleconnect Fund (D.96-10-066, p. 88, App. B, Rule 8.G, Resolution T-16584, October 10, 2001).

4. Applicant should be exempted from Rule 18(b).

5. Applicant should be exempted from Pub. Util. Code §§ 816-830.

6. Applicant should be exempted from Pub. Util. Code § 851 when the transfer or encumbrance serves to secure debt.

7. Applicant should be granted an expanded CPCN for interexchange resale service and facilities-based service utilizing existing facilities and those covered under the Final IS/MND approved in this order subject to the terms, conditions, and restrictions set forth below.

8. As long as construction authority is limited to the facilities covered under the Final IS/MND approved in this order, it can be seen with certainty that there is no possibility that granting this CPCN will have an adverse effect upon the environment.

ORDER

IT IS ORDERED that:

1. An amended certificate of convenience and necessity (CPCN) shall be granted to Broadwing Communications Services, Inc. (U-5525-C) (Broadwing or Applicant) for authority to construct and install fiber optic facilities as defined in the Final Initial Study/Mitigated Negative Declaration (IS/MND) approved herein. Broadwing is authorized to offer interexchange services using these facilities, contingent on compliance with the terms identified in this order.

2. The Final IS/MND for Broadwing's proposed construction is hereby accepted and approved.

3. Applicant shall file a written acceptance of the amended certificate granted in this proceeding prior to commencing service utilizing the new facilities covered under this order.

4. Prior to initiating service, Applicant shall provide the Commission's Consumer Services Division with Applicant's designated contact persons for purposes of resolving consumer complaints and the corresponding telephone numbers. This information shall be updated if the names or telephone numbers change or at least annually.

5. Applicant shall keep its books and records in accordance with generally accepted accounting principles.

6. Applicant shall each file an annual report, in compliance with General Order (GO) 104-A, on a calendar-year basis using the information-request form developed by the Commission Staff and contained in Appendix A.

7. Applicant shall ensure that its employees comply with the provisions of Pub. Util. Code § 2889.5 regarding solicitation of customers.

8. The certificate granted and the authority to render service under the rates, charges, and rules authorized will expire if the authority is not exercised within 12 months after the effective date of this order.

9. The previously assigned corporate identification number of Broadwing, (U-5525-C) shall be included in the caption of all original filings with this Commission, and in the titles of other pleadings filed in existing cases.

10. Within 60 days of the effective date of this order, Applicant shall comply with Pub. Util. Code § 708, Employee Identification Cards, reflecting its authority, and notify the Director of the Telecommunications Division (TD) in writing of its compliance.

11. Applicant is exempted from the provisions of Pub. Util. Code §§ 816-830.

12. Applicant is exempted from Pub. Util. Code § 851 for the transfer or encumbrance of property, whenever such transfer or encumbrance serves to secure debt.

13. If Applicant is 90 days or more late in filing an annual report or in remitting the fees listed in Conclusion of Law 4, the TD shall prepare for Commission consideration a resolution that revokes that petitioner's CPCN, unless it has received written permission from the TD to file or remit late.

14. It can be seen with certainty that no material adverse environmental impacts will result from the limited CPCN authority granted in this order.

15. Applicant shall comply with all applicable rules and regulations adopted for NDIECs set forth in Decision (D.) 93-05-010 and D.90-08-032 as well as all other applicable Commission rules, decisions, GO's, and statues that pertain to California public utilities, subject to the exemptions granted in this decision.

16. Application 00-11-026 is closed.

This order is effective today.

Dated February 7, 2002, at San Francisco, California.

LORETTA M. LYNCH

President

HENRY M. DUQUE

RICHARD A. BILAS

CARL W. WOOD

GEOFFREY F. BROWN

Commissioners

TO: ALL INTEREXCHANGE TELEPHONE UTILITIES

1. Exact legal name and U# of reporting utility.

2. Address.

3. Name, title, address, and telephone number of the person to be contacted concerning the reported information.

4. Name and title of the officer having custody of the general books of account and the address of the office where such books are kept.

5. Type of organization (e.g., corporation, partnership, sole proprietorship, etc.).

6. Commission decision number granting operating authority and the date of that decision.

7. Date operations were begun.

8. Description of other business activities in which the utility is engaged.

9. A list of all affiliated companies and their relationship to the utility. State if affiliate is a:

a. Regulated public utility.

b. Publicly held corporation.

10. Balanced sheet as of December 31 of the year for which information is submitted.

11. Income statement for California operations for the calendar year for which information is submitted.

(END OF ATTACHMENT A)

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