XI. Assignment of Proceeding

Rachelle B. Chong is the Assigned Commissioner and Bertram D. Patrick is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. New Edge was authorized to provide interLATA and intraLATA telecommunications service in California as a facilities-based carrier in August 1999, and was authorized as a competitive local exchange carrier to offer resold local exchange services within the territories of PacBell, GTEC, Roseville Telco and Citizens Telco in December 1999 (D.99-12-048).

2. Pub. Util. Code § 854(a) requires Commission authorization to transfer control of a public utility. Any transfer of control without Commission authorization is void under the statute.

3. New Edge has sufficient cash and cash equivalence to provide the necessary funding for daily operations.

4. New Edge will continue offering its current services and use the same name and authority after the transfer of control.

5. New Edge is current on transmitting the user fees applicable to its California operations through 2001. To avoid revocation of its certification, New Edge should file remittance reports with the Commission for 2003 through 2005, even if it has no revenues to report.

6. Upon completion of the transaction, New Edge will continue to be operated by the same existing management team.

7. There is no opposition to this application.

Conclusions of Law

1. This is a ratesetting proceeding and no hearing is necessary.

2. This application should be approved and become effective immediately because it is not adverse to the public interest and the public may benefit from the ability of New Edge to maintain and expand its services and operations in California.

3. Approval of this application is not a finding of value of the rights and property being transferred.

ORDER

IT IS ORDERED that:

1. Pursuant to §§ 851-854 of the Public Utilities Code, EarthLink, Inc. is authorized to assume control of New Edge Holding Company and its subsidiary New Edge Networks, Inc. (New Edge) through the ownership of 100 percent of the outstanding stock of New Edge Holding Company.

2. New Edge shall notify the Director of the Commission's Telecommunications Division in writing of the transfer of control, as authorized herein, within 60 days of this order. A true copy of the instrument(s) of transfer shall be attached to the notification.

3. New Edge is current on transmitting the user fees applicable to its California operations through 2001. To avoid revocation of its certification, New Edge shall file remittance reports with the Commission for 2003 through 2005, even if it has no revenues to report. The reports shall be filed no later than 30 days of the date of this decision.

4. Application 06-01-011 is closed.

This order is effective today.

Dated April 13, 2006, at San Francisco, California.

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