II. Background

SCE is a public utility company regulated by this Commission which operates primarily as an electric utility. On December 17, 1998, the Commission issued a Certificate of Public Convenience and Necessity (CPCN) to SCE to provide certain telecommunications services as a facilities-based Local Exchange Carrier.¹ Telecom Licensing is certificated to operate as a Competitive Local Carrier (CLC).²

Effective March 27, 2000, Telecom Licensing entered into a revocable license (License Agreement or Agreement) with SCE pursuant to GO 69-C, to utilize optical fibers along two cable routes within Los Angeles County to complete a redundant, fiber optic network ring. In addition to being subject to termination by Edison, the revocable license confers no "Indefeasible Right of Use" upon Telecom Licensing. Under the terms of the Agreement, SCE agreed to seek Commission authorization of a lease consistent with Pub. Util. Code § 851. Upon approval of the § 851 application, the Agreement states its provisions will convert to a lease.

The details of the Agreement also provide that for portions of the routes without existing capacity, SCE would install new fiber optic cables, perfect land use rights, and construct any necessary facilities at shareholder expense. The Agreement allows Telecom Licensing to use the optical fibers, and to install and maintain two equipment racks at SCE facilities. The racks are to house signal amplification and regeneration equipment necessary to support its optical fibers. SCE is responsible for the construction and maintenance of the cable and its electronics. Telecom Licensing is responsible for the construction and maintenance of its equipment. The lease would not confer upon Telecom Licensing any property or possessory interest in SCE's facilities or optical fibers. SCE will own, operate and maintain the entire fiber optic cable. The application states that SCE does not expect to need the available utility facilities space for electric utility purposes during the term of the lease and that the lease of such facilities will not impact its ability to serve its customers.

On July 19, 2000, the Office of Ratepayer Advocates advised the Commission that it does not protest SCE's application and that it would not file a response or otherwise participate in this proceeding.