IX. Conclusion

We conclude that the application conforms to our rules for certification to resell interexchange telecommunications services. Accordingly, we shall grant resale authority subject to the terms and conditions set forth herein.

Findings of Fact

1. Notice of this application appeared in the Daily Calendar on April 27,1999.

2. On May 26, 1999, CSD filed a protest to this application.

3. On June 7, 1999, applicant filed a response to CSD's protest.

4. On May 8, 2000, applicant and CSD filed a joint motion to approve an all-party settlement that resolved the issues between them.

5. The settlement requires that applicant use only specified fictitious names in its California operations, precludes the use of other specified names, and requires applicant to notify CSD of any name changes.

6. In prior Commission decisions, competition in providing interLATA telecommunications services was authorized, but those offering such services were generally barred from holding out to the public the provision of intraLATA service.

7. In D.94-09-065, the Commission authorized competitive intraLATA services effective January 1, 1995, for carriers meeting specified criteria.

8. Applicant has demonstrated that it has a minimum of $25,000 of cash or cash equivalent that is reasonably liquid and readily available to meet its start-up expenses.

9. No deposits are required by other telecommunications carriers in order for applicant to provide the proposed service.

10. Applicant possesses the requisite experience and knowledge to operate as an interexchange reseller.

11. As part of its application, applicant submitted a draft of its initial tariff that contained the deficiencies identified in Attachment B to this decision. Except for these deficiencies, applicant's draft tariffs complied with the requirements established by the Commission.

12. Exemption from the provisions of Pub. Util. Code §§ 816-830 has been granted to other NDIECs and CLCs. (See, e.g., D.86-10-007, D.88-12-076, D.97-01-015, and D.96-05-060.)

13. 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, D.97-01-015, and D.96-05-060.)

14. By D.97-06-107, all interexchange carriers and CLCs are no longer required to comply with General Order (GO) 96-A, Subsections III.G(1) and (2), and Rule 18 (b) of the Commission's Rules of Practice and Procedure.

Conclusions of Law

1. Applicant has the financial ability to provide the proposed service.

2. The settlement helps ensure that customers will not be switched to applicant without their consent.

3. The settlement is reasonable in light of the whole record, consistent with law, in the public interest, and should be approved.

4. Applicant has made a reasonable showing of technical expertise in telecommunications.

5. Public convenience and necessity require that applicant's interexchange services be subject to the terms and conditions set forth herein.

6. Applicant is subject to:

a. The current 0.50% 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 (Pub. Util.) Code § 879; Resolution T-16366, December 2, 1999);

b. The current 0.281% 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-16379, April 20, 2000);

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 § 739.30; D.96-10-066, pp. 3-4, App. B, Rule 1.C; set by Resolution T-16380 at 0.0% for 2000, January 20, 2000);

e. The current 2.6% 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-16365, December 2, 1999); and

f. The current 0.05% 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; set by Resolution T-16374, effective December 16, 1999).

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

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

9. Applicant should be granted a CPCN to operate as an interexchange reseller to the extent set forth below.

10. Because of the public interest in interexchange services, the following order should be effective immediately.

ORDER

IT IS ORDERED that:

1. A certificate of public convenience and necessity is granted to Pacific-South Telecom, Inc. (applicant) to provide resold interexchange services subject to the terms and conditions set forth below.

2. Applicant is not authorized to construct facilities or to provide facilities-based interexchange service.

3. The "All Parties Joint Motion for Commission Approval and Adoption of Settlement Agreement" filed by applicant and the Commission's Consumer Services Division (CSD) on May 8, 2000, included as Attachment C, is granted.

4. Applicant shall file a written acceptance of the certificate granted in this proceeding.

5. Applicant is authorized to file with this Commission tariff schedules for the provision of resold interexchange services. Applicant may not offer services until tariffs are on file. Applicant's initial filing shall be made in accordance with General Order (GO) 96-A, excluding Sections IV, V, and VI, and shall correct the deficiencies noted in Attachment B. The tariff shall be effective not less than one day after tariff approval by the Commission's Telecommunications Division. Applicant shall comply with the provisions in its tariffs.

6. Applicant is a nondominant interexchange carrier (NDIEC). The effectiveness of its future NDIEC tariffs is subject to the schedules set forth in Ordering Paragraph 5 of Decision (D.) 90-08-032 (37 CPUC2d 130 at 158), as modified by D.91-12-013 (42 CPUC2d 220 at 231) and D.92-06-034 (44 CPUC2d 617 at 618):

"5. All NDIECs are hereby placed on notice that their California tariff filings will be processed in accordance with the following effectiveness schedule:

    "a. Inclusion of FCC-approved rates for interstate services in California public utilities tariff schedules shall become effective on one (1) day's notice.

    "b. Uniform rate reductions for existing services shall become effective on five (5) days' notice.

    "c. Uniform rate increases, except for minor rate increases, for existing services shall become effective on thirty (30) days' notice, and shall require bill inserts, a message on the bill itself, or first class mail notice to customers of the pending increased rates.

    "d. Uniform minor rate increases, as defined in D.90-11-029, for existing services shall become effective on not less than five (5) working days' notice. Customer notification is not required for such minor rate increases.

    "e. Advice letter filings for new services and for all other types of tariff revisions, except changes in text not affecting rates or relocations of text in the tariff schedules, shall become effective on forty (40) days' notice.

    "f. Advice letter filings merely revising the text or location of text material which do not cause an increase in any rate or charge shall become effective on not less than five (5) days' notice."

7. Applicant may deviate from the following provisions of GO 96-A: (a) paragraph II.C.(l)(b), which requires consecutive sheet numbering and prohibits the reuse of sheet numbers, and (b) paragraph II.C.(4), which requires that "a separate sheet or series of sheets should be used for each rule." Tariff filings incorporating these deviations shall be subject to the approval of the Commission's Telecommunications Division. Tariff filings shall reflect all fees and surcharges to which applicant is subject, as reflected in Conclusion of Law 6.

8. Applicant shall file as part of its initial tariff, after the effective date of this order and consistent with Ordering Paragraph 5, a service area map.

9. Prior to initiating service, applicant shall provide the Commission's CSD with the applicant's designated contact person(s) for purposes of resolving consumer complaints and the corresponding telephone number. This information shall be updated or if the name or telephone number changes.

10. Applicant shall notify this Commission in writing of the date interLocal Access and Transport Areas (LATA) service is first rendered to the public within five days after service begins and again within five days of when intraLATA service begins.

11. Applicant shall keep its books and records in accordance with the Uniform System of Accounts specified in Title 47, Code of Federal Regulations, Part 32.

12. In the event the books and records of the applicant are required for inspection by the Commission or its staff, applicant shall either produce such records at the Commission's offices or reimburse the Commission for the reasonable costs incurred in having Commission staff travel to applicant's office.

13. Applicant shall file an annual report, in compliance with GO 104-A, on a calendar-year basis using the information request form developed by Commission staff contained in Attachment A to this decision.

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

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

16. The corporate identification number assigned to applicant is U-6364-C which shall be included in the caption of all original filings with this Commission, and in the titles of other pleadings filed in existing cases.

17. Within 60 days of the effective date of this order, applicant shall comply with Pub. Util. Code § 708, Employee Identification Cards, and notify the Director of the Telecommunications Division in writing of its compliance.

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

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

20. Applicant shall comply with the Commission's rules and regulations for NDIECs set forth in D.93-05-010 and D.90-08-032, we well as all other applicable commission rules, decisions, General Orders, and statutes that pertain to California public utilities, subject to the exemption granted in this decision.

21. Applicant shall send a copy of this decision to concerned local permitting agencies not later than 30 days from the date of this order.

22. The application is granted, to the extent set forth above.

23. Application 99-04-028 is closed.

This order is effective today.

Dated October 5, 2000, at San Francisco, California.

INFORMATION REQUESTED OF INTEREXCHANGE CARRIERS

TO: ALL INTEREXCHANGE TELEPHONE UTILITIES

Article 5 of the Public Utilities Code grants authority to the California Public Utilities Commission to require all public utilities doing business in California to file reports as specified by the Commission on the utilities' California operations.

A specific annual report form has not yet been prescribed for the California interexchange telephone utilities. However, you are hereby directed to submit an original and two copies of the information requested in Attachment A no later than March 31st of the year following the calendar year for which the annual report is submitted.

Address your report to:

Failure to file this information on time may result in a penalty as provided for in §§ 2107 and 2108 of the Public Utilities Code.

If you have any question concerning this matter, please call (415) 703-1961.

ATTACHMENT A

INFORMATION REQUESTED OF INTEREXCHANGE TELEPHONE UTILITIES

To be filed with the California Public Utilities Commission, 505 Van Ness Avenue, Room 3251, San Francisco, CA 94102-3298, no later than March 31st of the year following the calendar year for which the annual report is submitted.

(END OF ATTACHMENT A)

ATTACHMENT B

List of Deficiencies in Tariffs Filed by Pacific-South Telecom, Inc. in A.99-04-028 to be Corrected in its Tariff Compliance Filing.

1. On the top right-hand corner of every schedule sheet, add the words "Cal P.U.C" between Original and title sheet numbers. Refer to G.O. 96-A pg. 4 and Exhibit A-1.

2. Sheet 17: Include the following corrected surcharges and taxes:

    Period

ULTS

CRS/CDFS

CHCF-A

CHCF-B

CTF

 

Effective 01/01/00

0.500%

0.281%

0.000%

2.600%

0.05%

3. Sheet 19, rule 10: Include in the tariff the Disputed Bills rules found in Rule 8 of Appendix B of D.95-07-054.

(END OF ATTACHMENT B)

ATTACHMENT C

ALL PARTIES JOINT MOTION FOR COMMISSION APPROVAL AND ADOPTION OF SETTLEMENT AGREEMENT

Note: See CPUC Formal Files for Attachment C.

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