STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 26, 2006 Agenda ID #5785

TO: PARTIES OF RECORD IN APPLICATION 06-02-001

This is the draft decision of Administrative Law Judge (ALJ) Grau. It will appear on the Commission's July 20, 2006 agenda. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Public Utilities Code § 311(g)(1) requires this item be served on all parties and subject to at least 30 days' public review and comment before the Commission may vote on them. Section 311(g)(2) provides that the 30-day period may be reduced by stipulation of the parties. The comment period on this item is being shortened under this authority. Comments are due on July 10, 2006, and reply comments are due on July 17, 2006.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at www.cpuc.ca.gov. In addition to service by mail, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, including ALJ Grau at jlg@cpuc.ca.gov. Finally, comments must be served separately on the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious methods of service.

/s/ ANGELA K. MINKIN by JJJ

Angela K. Minkin, Chief

Administrative Law Judge

ANG:tcg

Attachment

ALJ/JLG/tcg DRAFT Agenda ID #5785

Ratesetting

Decision DRAFT DECISION OF ALJ GRAU (Mailed 6/26/2006)

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)

OPINION GRANTING THE REQUEST OF VERIZON AVENUE CORP.
TO WITHDRAW ITS PROVISION OF RESOLD LOCAL EXCHANGE
SERVICE AND RELINQUISH ITS CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY

Summary

This decision grants the application of Verizon Avenue Corp. (Verizon Ave.)¹ for authority to withdraw its provision of resold local exchange service and related bundled service offerings and to relinquish its certificate of public convenience and necessity (CPCN). Verizon Ave. has complied with the draft Mass Migration Guidelines (guidelines) issued in Rulemaking (R.) 03-06-020, and Verizon Ave.'s remaining customers have been transferred to Pacific Bell Telephone Co. d/b/a/ AT&T California (AT&T). Thus, it can be determined that granting Verizon Ave.'s request is in the public interest. As a result of this decision, Verizon Ave. will no longer provide resold local exchange service.

¹ Verizon Ave. formerly was known as One-Point Communications-Colorado, L.L.C.