Discussion

We conclude that the previously adopted schedules for implementation of the geographic splits of the 707 and 760 NPAs should be deferred to allow time to make a further assessment concerning the prospects for using existing numbering resources more efficiently. Although parties object to the deferral of the NPA implementation schedules, they fail to offer compelling reasons to force new area codes on the public prior to confirming that those area codes are needed and that all reasonable measures have been employed in those area codes.

The currently adopted implementation schedules for the 707 and 760 NPA split plans are based upon industry demand forecasts and presumed dates for NXX code exhaustion. Yet, in adopting those implementation schedules, we relied upon those industry forecasts without fully taking into account the actual use of numbers in those area codes and the impacts of using various new strategies for number conservation to make more efficient use of existing numbering resources. The Commission has gained additional flexibility to implement a variety of new number conservation measures pursuant to the FCC's grant of delegated authority in its order issued on September 15, 1999.

As noted in the TD Report, the Commission is actively studying the feasibility of various number conservation measures in the 707 NPA and is exploring the limits of its authority under recent FCC rulings and state legislation. The outcome of these studies could have a significant bearing on the prospects for extending the life of the 707 NPA beyond the time assumed by the forecasts underlying the previously adopted 707 NPA relief plan implementation schedule. Likewise, the Commission is actively studying the 760 NPA in the same fashion.

The parties note that uncertainty remains concerning how much additional number utilization efficiency can be realized as a result of the various conservation measures that are underway. Parties argue that this uncertainty is a reason not to defer implementation of relief. Yet, we conclude that this uncertainty is the very reason justifying a cautious stance, and not to prematurely rush forward with new area code implementation before the need for new area costs and the full potential of alternative conservation measures has been assessed. Once a new area code is opened, and used to assign numbers to customers, the new area code cannot be undone after the fact. On the other hand, a prudent deferral of the implementation preserves the Commission's options to take appropriate action on a going forward basis as more information concerning the status of number resources becomes known. Customers should be spared the disruptions associated with changing their area code until or unless all feasible alternatives of using existing numbering resources as efficiently as possible have been exhausted and until or unless the Commission is certain a new area code is actually needed.

We acknowledge the arguments of carriers concerning this Commission's obligation to provide timely area code relief in those instances where it is unavoidable. Yet, the FCC also delegated authority to this Commission to make use of various number conservation tools as a means of maximizing the life of existing area codes before unnecessarily creating new area codes. Particularly in view of the marked proliferation of new area codes in recent years, it is important to confirm that we have tapped the potential for using all available number conservation measures to maximum advantage before opening yet another new area code.

On June 1, 2000, carriers were scheduled to submit data concerning their actual utilization of NXX codes in a number of NPAs, including the 707 NPA. Likewise, on February 1, 2001, carriers are scheduled to submit data concerning their actual utilization of NXX codes in the 760 NPA. We believe it would be premature to rush forward with implementation of the new area codes before we have an opportunity to review the results of those utilization studies, and assess to what extent number resources are being used.

The TD staff has also proposed that the Commission take comments on the feasibility of number pooling in the 57 rate centers within the 707 NPA that are served by an ILEC whose switch is already NPA-capable. We agree that parties' input is appropriate in considering the timing and extent of number pooling implementation for the 707, as well as for the 760, NPAs. We shall solicit comments on this issue in a subsequent ruling.

The Commission is also considering the prospects of extending additional number conservation measures adopted for the 310 NPA to other NPAs, including the 760 and 707 NPAs. An ALJ Ruling, issued on April 13, 2000, solicited comments on extending the conservation measures adopted for the 310 NPA relating to number utilization and demand criteria to apply to other NPAs within California. We conclude that the prospects for extending these measures should be determined, and any resulting benefits evaluated prior to opening new area codes in the 707 and 760 NPAs.

The suspension of the 707 and 760 NPA relief plan implementation schedules, at least until the results of code utilization studies and related number conservation measures can be assessed, will not cause numbering resources to exhaust. Each month, numbering resources are being allotted to carriers in the 707 and 760 NPAs through the lottery process. By letter dated April 10, 2000 from the Director of the Commission's TD to the Regional Director of NeuStar (in its capacity as the North American Numbering Plan Administrator (NANPA), the monthly lottery allotment of NXX codes rationed each month was reduced for various NPAs, including the 707 and 760 NPAs. The allotment for the 707 NPA was reduced from nine to three NXX codes per month. The allotment for the 760 NPA was reduced from eight down to three NXX codes. As explained in the April 10 letter, Telecommunications Division, in consultation with the Commission President, has determined that it is in the public interest to change the number of codes being issued in these area codes while it performs utilization studies and implements various number conservation measures.

Permissive dialing of the new area code for Phase 1 of the 707 NPA relief plan was previously scheduled to begin on December 2, 2000, with mandatory dialing to begin on June 2, 2001 and to end on September 8, 2001. As of May 1, 2000, the NANPA reported that 139 NXX codes remained unassigned in the 707 NPA. In the relief Central Office Code Utilization Survey (COCUS) December 1999 update, the NANPA forecasts NXX codes will not exhaust in the 707 NPA until the third quarter of 2001. After adjusting the NANPA's forecast for the reductions in the monthly lottery rationing effective with the April 2000 lottery, the TD staff projects code exhaustion in the 707 NPA would not occur before the first quarter of 2004.

In the case of the 760 NPA, permissive dialing of the new area code was previously scheduled to begin on October 21, 2000. Mandatory dialing was scheduled to begin on April 14, 2001, and to end on July 21, 2001. As of May 2000, the NANPA reported that 133 NXX codes remained available for assignment. With the reductions in the monthly lottery for the 760 NPA down to three codes per month, remaining codes in the 760 NPA would last through the next 3-1/2 years.

In view of the measures either planned or already underway to make more efficient use of existing numbering resources in the 707 and 760 NPAs, it is in the public interest to defer the implementation schedules for geographic splits in these NPAs for the present time. Accordingly, we hereby modify D.99-07-017 and D.99-12-049 to defer the previously adopted implementation schedules for each of the approved split plans for the 707 and 760 NPAs, respectively. Pending a further determination of how existing numbering resources in these NPAs are being used and of how those resources can be used more efficiently, we shall make a subsequent assessment of the need for and timing of any subsequently required NPA relief in conformance with FCC requirements.

Carriers providing service in either the 707 or 760 NPA are directed to take any necessary actions to recognize the effects of the area code deferrals ordered by this decision. For example, any previously planned customer notices announcing the scheduled dates for implementation of the new area codes shall be suspended. By letter from the Commission's Executive Director to Pacific dated June 7, 2000, all carriers have already been granted an extension of time in which to provide customer notice concerning the new area codes previously scheduled for the 760 NPAs pending further Commission action. By today's decision, the extension granted by the Executive Director shall continue and shall also apply to the 707 NPA until further notice. Carriers serving the 707 and 760 NPAs shall promptly prepare and mail new notices to customers in those NPAs, informing them of the indefinite deferral of the previously scheduled area code splits no later than 30 days from the effective date of this order. Carriers must also promptly take any necessary actions to reverse any switch translations that may have already been implemented for the 707 or 760 NPA splits to ensure that calls to those NPAs will be properly completed.

We find no basis to require an evidentiary hearing or similar proceedings as proposed by CCAC prior to modifying the Commission's decisions on the 707 and 760 NPA split plans as outlined above. The filing of comments in response to the ALJ ruling provided parties an adequate opportunity pursuant to Section 1708 to set forth the basis for any objections they have to the proposed deferral of the NPA split plans. It is unnecessary to expend the time and resources for an evidentiary hearing or other further proceedings in order to adopt the limited modifications of these decisions as ordered herein. The Commission initially adopted these decisions without first convening evidentiary hearings. Likewise, no evidentiary hearings are required to modify the decisions to permit a deferral of the NPA implementation schedules.

The Commission conducts many types of proceedings without evidentiary hearings. Often our investigations, as in this case, appropriately are characterized as legislative in nature and in such instances, the California Supreme court has held that evidentiary hearings are not required. In Wood v. Public Utilities Commission (1971) 4 Cal.3d 288, 292, petitioners claimed that tariff regulations adopted through the advice letter process violated their constitutional rights of due process because evidentiary hearings were not conducted before the proceeding was concluded. In deciding that the Commission had acted properly and that petitioners' rights had not been violated, the Court opined:

"Although in the past the commission has authorized the adoption of similar credit rules following public hearings (citation omitted), the rules here challenged were adopted pursuant to advice letters that set forth the justifications for the rules and that were approved without hearings by resolutions of the commission. The adoption of the rules this way did not violate due process and was authorized by the statutes and regulations governing the commission's procedures.

"In adopting rules governing service and fixing rates, a regulatory commission exercises legislative functions delegated to it and does not, in so doing, adjudicate vested interests or render quasi-judicial decisions which require a public hearing for affected ratepayers." (Id., at 292, emphasis added.)

Similarly, here, in modifying the subject decisions to defer the implementation schedules for the 707 and 760 NPAs without an evidentiary hearing, we properly exercise our quasi-legislative authority. All parties have been provided a fair opportunity to express their opinions and provide information to assist us in reaching the proper decision in the public interest through the filing of written comments. Thus, we find no basis to grant CCAC's request for evidentiary hearings or further proceedings prior to adopting the modifications to the 707 and 760 NPA split plan implementation schedules as adopted herein.