II. FACTS/BACKGROUND

On June 22, 2007, the Commission issued Decision (D.) 07-06-044 ("Decision"), suspending the CPCN held by GNAPs until it pays Cox the sum of $985,439.38 plus interest on overdue amounts at the rate of one and one-half percent per month, as previously ordered by the Commission. The effective date of the suspension was 30 days from the mailing date of the Decision, i.e., July 23, 2007.

GNAPs had been ordered in a prior decision, D.07-01-004, effective January 12, 2007, to pay Cox the aforementioned sum according to the terms of an Interconnection Agreement between the parties. D.07-01-004 granted Cox's motion for summary judgment against GNAPS.

On February 13, 2007, GNAPs timely filed an application for the rehearing of D.07-01-004. On March 2, 2007, nearly two months after the issuance of D.07-01-044, GNAPs filed "Request for Stay or Suspension of D.07-01-004 Pending Ruling on Application for Rehearing."

On March 23, 2007, upon a motion by Cox requesting an order directing GNAPs to pay the judgment entered in D.07-01-004, the assigned Commissioner and the assigned Administrative Law Judge (ALJ) issued a joint ruling granting Cox's motion. The joint ruling set an evidentiary hearing ordering GNAPs to appear to demonstrate that it had paid Cox in compliance with D.07-01-004, or show cause why it should not have its CPCN suspended for failure to comply with the decision. The hearing was held on April 9, 2007.

Another joint ruling was issued on April 12, 2007, ordering GNAPS to supplement the record by identifying any source of funds that creditors could look to for satisfaction of their debts. GNAPs was also directed to explain how it would minimize the effect on its customers of a suspension or revocation of its CPCN. GNAPs responded to the ruling on April 19, 2007, with a declaration reiterating the company's lack of assets, and stating its position that the Commission lacks authority to suspend or revoke its CPCN for failure to comply with D.07-01-004's ordering paragraphs.

On April 16, 2007, in D.07-04-048, the Commission denied GNAPs' application for stay of D.07-01-004.

On June 22, 2007, the Commission issued D.07-06-044, suspending the CPCN held by GNAPs until it pays Cox $985,439.38 plus interest on overdue amounts at the rate of one and one-half percent per month, as previously ordered by the Commission. The suspension was ordered to take effect 30 days from the date of the Decision's issuance.

On June 26, 2007, with no stays in effect, the Director of the Commission's Communications Division wrote to carriers advising them that they should prepare to disconnect from GNAPs on July 22, 2007, in an attempt to facilitate an orderly transition between carriers. That letter has been withdrawn, first in a subsequent letter from the Director in light of a stay imposed by the California Court of Appeal (since lifted), and then pursuant to an agreement of the parties pending a ruling on the motion for injunctive relief in federal court.

On June 29, 2007, GNAPs filed a petition for writ of review ("writ petition") in the California Court of Appeal, Second Appellate District, Division Two (Case No. B200164), requesting that the Court stay D.07-06-044. Without a hearing or notice to the Commission, the Court issued a Stay Order on July 11, 2007. The Commission sent a letter brief dated July 16, 2007 to the Court opposing the Stay Order on grounds that the Court lacks jurisdiction, and the Stay Order is defective. The Commission then filed a Motion to Dismiss dated July 19, 2007.

On July 24, 2007, the Court issued an Order dismissing GNAPs' petition for writ of review ("Dismissal Order"). In that Court order, the Court dismissed GNAPs' writ petition because it lacked jurisdiction. Further, the Court vacated its July 11, 2007 Stay Order ("Stay Order"), in its entirety, including its stay of the decision.

On July 26, 2007, GNAPs filed a petition for review pursuant to 47 U.S.C. Section 252 in the U.S. District Court for the Central District of California, as well as an Ex Parte Application for Temporary Restraining Order and for Order to Show Cause Re Preliminary Injunction. The Application sought an order enjoining enforcement of D.07-01-004 and D.07-06-044. Oral argument on the preliminary injunction was held on August 27, 2007.

On July 20, 2007, GNAPs filed an application for the rehearing of D.07-06-044, alleging the following: (1) the Decision is an unlawful use of contempt sanctions; (2) the Decision violates GNAPs' constitutional rights; (3) the Decision is premature because the Commission has yet to rule on GNAPs' rehearing application of D.07-01-004; (4) the Decision was issued and approved as a result of clear bias or prejudice against GNAPs; (5) the Commission lacked jurisdiction to issue D.07-01-004, or to enforce it through D.07-06-044; and (6) GNAPs is entitled to an immediate stay of D.07-06-044. In its rehearing application, GNAPs also requested an immediate stay of the decision.

Cox filed its Response to GNAPs' rehearing application on August 6, 2007. Cox asserted as follows: (1) the application does not satisfy the standard for applications for rehearing; (2) the application includes legal arguments that the Commission previously considered and rejected; (3) the Commission has authority to suspend GNAPs' CPCN for its failure to comply with a Commission order; (4) the Commission is not required to respond to applications for rehearing in any given time frame; (5) GNAPs did not establish bias on the part of the assigned Administrative Law Judge or the Assigned Commissioner; and (6) the Commission has the authority to suspend GNAPs' California CPCN.

On August 23, 2007, the Commission issued D.07-08-031, denying the rehearing of D.07-01-004. At the federal level, on August 28, 2007, the district court filed its Order Denying Motion for Preliminary Injunction. That Order concluded that GNAPs failed to show that it will likely succeed on its preemption argument, or its contention that the Commission acted arbitrarily and capriciously in interpreting the Interconnection Agreement; therefore, the Court did not address GNAPs' showing of irreparable harm or the balance of hardships.

On September 7, 2007, GNAPs again filed a petition for writ of review in California Court of Appeal, Second Appellate District, Division 3 (Case No. B201860). This time the writ petition challenges D.07-01-004.