Categorization

In Resolution ALJ 176-3139, dated September 23, 2004, the Commission preliminarily categorized this proceeding as ratesetting, and preliminarily determined that hearings were not necessary. Based on the record, the Commission concludes that a public hearing is not necessary; thus, the preliminary determinations in Resolution ALJ 176-3139 will not be altered.

Comments on Proposed Decision

This is an uncontested matter in which the decision grants the relief requested. Accordingly, pursuant to Pub. Util. Code § 311(g)(2) and Rule 14.6(c)(2) of the Commission's Rules of Practice and Procedure, the otherwise applicable 30-day period for public review and comment is waived.

Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Jacqueline A. Reed is the assigned Administrative Law Judge.

Findings of Fact

1. Resolution ALJ 176-3139 preliminarily categorized this as a ratesetting proceeding and preliminarily determined that hearings were not necessary.

2. Notice of this application appeared in the Commission's Daily Calendar of September 23, 2004.

3. No protests were filed.

4. SBC ASI sought review under Pub. Util. Code § 851 through § 854, and requested an exemption from the requirements of Section 851 for its transfer of certain LFO assets to its affiliate, SBC California.

5. Following the transfer of the LFO assets to SBC California, SBC ASI's customers should see no change in the nature of the DSL LFO service and repair activity that they currently experience.

6. In accordance with Commission rules, for the sale of assets by Applicant to SBC California, SBC ASI will be paid the lower of net book value or fair market value for assets it purchases from its affiliates.

7. DRA and TURN submitted a joint response recommending that the Commission "approve ASI's request for exemption of this particular transaction" from its Section 851 requirements.

8. It can be seen with certainty that the transfer of these assets will have no significant impact on the environment.

9. There is no basis to impose the reporting condition that CISPA recommends because there does not appear to be any allegation that the LFO function is inadequate or will become inadequate upon transfer to SBC California.

Conclusions of Law

1. This proceeding is designated as a ratesetting proceeding; no protests have been received; no hearing is necessary.

2. CEQA review is not required.

3. Application of the requirements of Section 851 to this transaction "is not necessary in the public interest"; therefore, the Commission should exempt SBC ASI from those requirements pursuant to Section 853(b).

4. Since the matter is uncontested, the decision should be effective on the date it is signed.

ORDER

IT IS ORDERED that:

1. Application (A.) 04-08-041 of SBC Advanced Solutions, Inc. (SBC ASI) is granted, pursuant to Pub. Util. Code § 853(b), thereby exempting A.04-08-041 from the full requirements of Pub. Util. Code § 851 with respect to the transfer by SBC ASI of certain Local Field Organization assets, which consist primarily of trucks, test kits, and certain leases relating to garage space, to its affiliate, Pacific Bell Telephone Company, doing business as SBC California.

2. SBC ASI shall notify the Director of the Commission's Telecommunications Division in writing of the transfer of control authorized herein, within 10 days of the later of either the date of consummation of such transfer, or the date of the signing of this order.

3. A.04-08-041 is closed.

This order is effective today.

Dated March 1, 2007, at San Francisco, California.

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