ALJ/DOT/jyc Mailed 5/3/02

Decision 02-05-008 May 2, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Verizon California Inc. for Approval Pursuant to Section 851 to Transfer Property Located at One Verizon Way, Thousand Oaks, to Baxter Healthcare Corporation.

Application 01-09-026 (Filed September 20, 2001)

OPINION APPROVING SALE OF ONE VERIZON WAY

TO BAXTER HEALTHCARE CORPORATION

I. Summary

This decision grants the request of Verizon California Inc. (Verizon) for authority under Pub. Util. Code § 851 to sell to Baxter Healthcare Corporation (Baxter) its buildings and real estate located at One Verizon Way in Thousand Oaks, California (the Property). Baxter plans to use the Property as the headquarters for Baxter Biosciences, a division of Baxter. The protest by the Commission's Office of Ratepayer Advocates (ORA) requesting deferral of the ratemaking issues for any sale proceeds to another Commission proceeding is denied. Verizon will apportion the net sale proceeds between ratepayers and shareholders based on current New Regulatory Framework (NRF) policies and the ratemaking adopted in Decision (D.) 93-09-038.