III. Financial Qualifications
To be granted a CPCN, an applicant for authority to provide facilities-based and resold local exchange and/or interexchange services must demonstrate that it has a minimum of $100,000 of cash or cash equivalent to meet the firm's start-up expenses.1 An applicant must also demonstrate that it has sufficient additional resources to cover all deposits required by local exchange carriers (LECs) and/or interexchange carriers (IECs) in order to provide the proposed service.2 Applicant represented that it will not be required to pay deposits to Pacific in order to provide local exchange services in its service territory. In addition, Applicant provided financial documentation that demonstrates that it has sufficient cash to satisfy the financial requirement plus any required deposits.
1 The financial requirement for CLCs is contained in Decision (D.) 95-12-056, Appendix C. The financial requirement for NDIECs is contained in D.91-10-041. 2 The requirement for CLC applicants to demonstrate that they have additional financial resources to meet any deposits required by underlying LECs and/or IECs is set forth in D.95-12-056, Appendix C. For NDIECs, the requirement is found in D.93-05-010.
