III. Procedural Background

By ALJ ruling, dated February 21, 2002, a schedule was set for SBC to submit a DALIS cost study to update for changed conditions since the former study previously submitted in OANAD, and for parties to file comments in response. Prior to the ALJ ruling, the most recent DA cost studies for SBC and Verizon had been last submitted to the Commission in 1999. SBC had filed its DALIS cost study in the OANAD proceeding on April 6, 1999. It was revised on August 18, 2000. Verizon (then known as GTE California, Inc.) submitted a DA cost study on April 6, 1998, which it last updated on September 15, 1999.

SBC filed an updated DALIS cost study in the instant proceeding on March 25, 2002. On April 17, 2002, Joint Parties filed a motion to compel a response to discovery concerning the DALIS cost studies prepared by SBC-affiliated companies in other states. An ALJ ruling dated April 23, 2002 granted the motion to compel.

In reliance on SBC's representation that an amendment to its March 25, 2002 Update would be filed on or about May 13, 2002, Joint Parties postponed depositions pending review of this further amendment. SBC actually filed its amendment to the cost study update on June 6, 2002, providing new cost study data.

On August 8, 2002, Joint Parties filed a joint motion to strike new cost study material in SBC's June 6, 2002 amendment. An ALJ ruling, issued on October 21, 2002, denied the motion to strike, but permitted Joint Parties to conduct further discovery and to take depositions relating to the new material in Pacific's update. In response to Joint Parties' request, the ALJ deferred setting submission date for replies to SBC's cost study pending the conclusion of depositions and further discovery.

Joint Parties then conducted further discovery and depositions. By letter to the ALJ dated March 20, 2003, counsel for Metro One Telecommunications, Inc. confirmed that the active parties' discovery had been completed, and indicated that the parties would be prepared to file comments on SBC's revised cost study on April 17, 2003.

SBC submitted its revised DALIS cost study and pricing proposal on April 17, 2003. Pacific's filing included supporting materials in the form of data responses and depositions of certain SBC representatives.¹⁰ Comments in response to the cost study were concurrently submitted by Joint Parties on the same date. Attached to the filed comments, the Joint Parties provided Declarations of its consultants. Joint Parties' filing also included copies of data responses provided by SBC as well as depositions of SBC representatives.¹¹

None of the active parties have requested evidentiary hearings to resolve disputes as to DALIS prices, but have offered written filings, including sworn declarations and attached deposition transcripts, as a basis for Commission deliberation and adoption of prices. Accordingly, we hereby adopt DALIS prices as set forth in the ordering paragraphs of this decision based upon review of the cost study and related written materials filed by parties.