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ALJ/TOM/hkr Mailed 7/18/2002

Decision 02-07-026 July 17, 2002

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Pacific Gas and Electric Company for Commission Approval of Two Irrevocable License Agreements to Permit Use of Utility Support Structures, Optical Fiber and Equipment Sites to IP Networks, Inc.

              (U 39 E)

Application 01-12-033

(Filed December 21, 2001)

DECISION GRANTING APPROVAL
UNDER PUBLIC UTILITIES CODE SECTION 851
OF TWO IRREVOCABLE LICENSE AGREEMENTS BETWEEN
PACIFIC GAS AND ELECTRIC COMPANY AND IP NETWORKS, INC.

1. Summary

This decision grants in part the application of Pacific Gas and Electric Company (PG&E) for Commission authorization under Pub. Util. Code § 8511 to enter into two master license and irrevocable right to use (IRU) agreements (together, the agreements) to permit use of utility support structures, optical fiber and equipment sites by IP Net.2 These agreements will enable PG&E to obtain new fiber optics capacity for energy utility communication and control purposes in a cost-effective manner and IP Net to obtain additional fiber optic capacity to expand its broadband telecommunications network.

However, our approval of the agreements permits IP Net to undertake only those activities on PG&E property that are authorized by IP Net's limited-facilities based certificate of public convenience and necessity (CPCN).3 This decision does not authorize IP Net to perform construction activities, contemplated in the agreements, including the installation of new equipment stations on PG&E substation sites and construction of a network operations center on PG&E property, until IP Net has obtained approval of its application for full-facilities based authority currently pending before this Commission,4 has undergone additional environmental (CEQA) review of these activities, and has obtained our approval of these activities pursuant to Section 851.

1 All statutory references are to the Public Utilities Code unless otherwise referenced. 2 PG&E filed this application on December 21, 2001. In Resolution ALJ 176-3079 (January 9, 2002), we preliminarily categorized this proceeding as ratesetting and determined that no hearing is necessary. The Commission Office of Ratepayer Advocates (ORA) filed a protest, which addressed only the ratemaking aspects of the application, on January 30, 2002. ORA did not request a hearing. 3 IP Net currently operates as a Limited-Facilities Based Competitive Local Carrier and a Nondominant Interexchange Carrier (limited facilities based carrier) in California pursuant to Decision (D.) 00-03-030. 4 IP Net filed its application for full-facilities based authority, Application (A.) 01-03-006 on March 6, 2001. The Commission is currently performing CEQA review of the activities contemplated in the application.

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