Assignment of Proceeding
President Michael R. Peevey is the Assigned Commissioner and Janice Grau is the assigned Administrative Law Judge in this proceeding.
Findings of Fact
1. This Commission authorized Verizon Ave. to provide limited facilities-based and resold local exchange services in 2001.
2. Verizon Ave. seeks Commission approval of its request to relinquish its CPCN authorizing the provision of local exchange services and related bundled offerings and to discontinue providing those services to customers, because the competitive landscape favors focusing on broadband services.
3. Verizon Ave. has been serving residential customers statewide.
4. Verizon Ave. requested that the Commission use the draft guidelines issued in R.03-06-010 in this application proceeding. The Assigned Commissioner authorized use of the draft guidelines in a February 22, 2006 ruling.
5. Verizon Ave satisfied the advance notice letter and second notice requirements through its March 26, 2006 written notice to its customers, its two additional customer notice letters, and bill inserts and automated calls.
6. On April 21, 2006 the ALJ ordered Verizon Ave. and AT&T to meet and confer to discuss compensation to be provided to AT&T for assuming Verizon Ave.'s remaining customer base.
7. On May 9, 2006, Verizon Ave. sent a letter to the ALJ to report that Verizon Ave. and AT&T had agreed to compensation and the terms of AT&T assuming Verizon Ave.'s customers. The agreement included the following terms: (1) compensation of $4.75 per migrated customer consistent with AT&T's bill record change order charge; (2) a third customer notice letter from Verizon Ave.; (3) a welcoming letter from AT&T; and (4) transfer of local service and vertical features only.
8. On May 12, 2006, the ALJ ordered Verizon Ave. and AT&T to implement the terms of their agreement governing default carrier and related migration issues and to provide draft final customer notice and welcoming letters to Commission staff for review. Verizon Ave.'s customers either selected another carrier or were transferred to AT&T by June 12, 2006.
9. No protest of the application has been filed. AT&T filed a response opposing being designated a default carrier.
Conclusions of Law
1. Under GO 96-A, Commission approval is required before a carrier may withdraw from the provision of public utility service.
2. Since Verizon Ave. is not a carrier of last resort, it is not legally obligated to continue to serve customers when it wishes to exit the market.
3. It is reasonable to approve the use of the draft guidelines in this proceeding.
4. The terms of the agreement governing compensation and the transfer of Verizon Ave.'s customers to AT&T are reasonable.
5. It is reasonable to confirm the ALJ's May 12, 2006 ruling ordering Verizon Ave. and AT&T to implement their agreement governing default carrier and related migration issues.
6. It is reasonable to conclude it is in the public interest to grant Verizon Ave.'s request to withdraw provision of its resold local exchange services and related bundled offerings.
7. Since this order resolves AT&T's principal concerns about being designated a default carrier by approving the compensation and transfer agreement, the decision should be effective on the date it is signed.
ORDER
IT IS ORDERED that:
1. The application of Verizon Avenue Corp. (Verizon Ave.) for authority to terminate its competitive local exchange carrier (CLEC) service and to relinquish its certificate of public convenience and necessity for CLEC service is granted.
2. The Administrative Law Judge's May 12, 2006 ruling ordering Verizon Ave. and Pacific Bell Telephone Co. d/b/a/ AT&T California to implement their default carrier agreement, attached hereto as Appendix A, is confirmed.
3. Verizon Ave. shall file a final advice letter, effective on one-day notice, cancelling its tariffs on file with the Commission.
4. Verizon Ave.'s utility identification number (U-6584-C) is cancelled and shall not be reissued.
5. Application 06-02-001 is closed.
This order is effective today.
Dated , at San Francisco, California.
JLG/jt2 5/12/2006
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Verizon Avenue Corp. (U 6584 C) to Withdraw Its Provision of Resold Local Exchange Service and Relinquish Its Certificate of Public Convenience and Necessity. |
Application 06-02-001 (Filed February 2, 2006) |
ADMINISTRATIVE LAW JUDGE'S RULING ORDERING
PARTIES TO IMPLEMENT DEFAULT CARRIER AGREEMENT
This ruling orders Verizon Avenue Corp. (Verizon Ave.) and Pacific Bell Telephone Company d/b/a AT&T California (AT&T) to implement the terms of their agreement governing default carrier and related migration issues. This ruling further orders Verizon Ave. and AT&T to present draft final customer notice and welcoming letters to Commission staff for review.
