ALJ/DOT/avs Mailed 1/31/2005

Decision 05-01-057 January 27, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Rulemaking on the Commission's Own Motion to Govern Open Access to Bottleneck Services and Establish A Framework for Network Architecture Development of Dominant Carrier Networks.	Rulemaking 93-04-003 (Filed April 7, 1993)
Investigation on the Commission's Own Motion into Open Access and Network Architecture Development of Dominant Carrier Networks.	Investigation 93-04-002 (Filed April 7, 1993) (Verizon UNE Phase)

OPINION MODIFYING DECISION 03-03-033
TO ADJUST INTERIM UNBUNDLED
NETWORK ELEMENTS RATES

I. Summary

In Decision (D.) 03-03-033, the Commission adopted interim rates for a subset of unbundled network elements (UNEs) Verizon California Inc. (Verizon) sells to competitive local exchange carriers. In adopting interim UNE rates, the Commission relied on UNE rates recently adopted for Verizon in New Jersey, and then adjusted these rates based on the Federal Communications Commission's (FCC) Synthesis Model to compare relative costs between Verizon's operations in California and New Jersey. (D.03-03-033, p. 33.) This decision grants a petition for modification of D.03-03-033 and adjusts the interim rates to reflect recent increases in Verizon New Jersey UNE rates. In addition, this decision removes the 22% shared and common cost, or "overhead," markup initially added to the interim rates and relies instead on the overhead markup incorporated into New Jersey rates. The new interim rates are set forth in Appendix A, and the changes include a 2.3% decrease in Verizon's interim 2-wire loop rates to $10.32 and $21.87 in Zones 1 and 2, respectively. Verizon's interim 4-wire loop rates decrease 1.9% to $21.31 and $45.17 in Zones 1 and 2, respectively. Verizon's interim port rate is increased 28.3% to $2.72.