ALJ/MAB-POD/avs

PRESIDING OFFICER'S DECISION (Mailed 10/20/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Investigation of USP&C to Determine Whether it has Violated Public Utilities Code Section 2889.9 by Failing to Provide Commission Staff with Requested Information and Whether the Commission Should Order California Telephone Companies to Cease Providing Billing and Collection Services to USP&C.

Investigation 99-10-024 (File October 21, 1999)

OPINION AND ORDER TO SHOW CAUSE

Sheldon Krantz, Attorney at Law, for Piper, Marbury, Rudnick & Wolfe and Thomas J. MacBride, Jr., Attorney at Law, for Goodin, MacBride, Squeri, Ritchie & Day, for USP&C, respondent.

Stephanie E. Krapf, Attorney at Law, for Pacific
Telesis Group, Susan E. Brown, Attorney at Law, for Latino Issues Forum, and Chris Witteman, Attorney at Law, for The Greenlining Institute, intervenors.

Paul Stein, Attorney at Law, for The Utility Reform Network, interested party.

Travis Foss, Attorney at Law, for Consumer Services Division.

TABLE OF CONTENTS

Title Page

Summary 2

Procedural Background 2

Factual Background 4

1. USP&C's Business Practices 4

2. USP&C's Relationship with Pacific Bell 5

3. USP&C's Relationship with Service Providers 6

Discussion 9

1. Alleged Violations of 2890(e)(2)(A) - Clear and

Concise Description 10

2. Alleged Violations of 2890(e)(2)(B) - Name of the Party Responsible

for Generating the Charge and the Entity Responsible

for Resolving Disputes. 15

2. Alleged Violations of 2889.9(f) - Timely Response to Commission

Data Requests, Settlement Agreement 19

a. Reasonable in Light of the Whole Record 19

b. Consistent with the Law 21

c. In the Public Interest 21

Sanctions 22

Order to Show Cause - Violation of 2890(b) 28

Pacific Bell Enforcement of Tariff 30

Findings of Fact 32

Conclusions of Law 34

Order 37

ATTACHMENT A

ATTACHMENT B

OPINION AND ORDER TO SHOW CAUSE

Summary

In this decision, the Commission finds that the respondent, USP&C, Inc. (USP&C), violated Public Utilities Code¹ §§ 2890(e)(2)(A) and (B), and imposes a fine of $1,680,000. The Commission also approves a settlement agreement between its Consumer Services Division (CSD) and USP&C that provides for USP&C to pay an additional fine of $43,000. The Commission orders all California Local Exchange Carriers (LECs) to cease permanently providing USP&C billing and collection services. The Commission also orders USP&C to show cause why it (1) should not be required to disgorge all amounts retained from unauthorized billings, and (2) should not be fined for failing to comply with §§ 2889.9 and 2890. The decision also requires Pacific Bell to enforce its Billing and Collections tariff to the letter and in a timely manner.