III. The Master Agreement

On August 16, 2000, PG&E and OnFiber entered into a Master Agreement that initially gives OnFiber a revocable license, pursuant to General Order (GO) 69-C, to install its telecommunication equipment on PG&E's existing electric distribution facilities. OnFiber prefers approval of a long-term lease to assure that its use of PG&E poles and underground facilities will not be interrupted. Therefore, the Master Agreement is structured to convert from a revocable license to a lease if Commission approval is granted.

OnFiber intends to use the telecommunication equipment it will attach to PG&E poles and underground facilities to provide communication service to customers of OnFiber's international, interstate, and intrastate long distance, data, and local exchange services. The Master Agreement contains terms of general applicability such as pricing, site selection procedures, safety requirements, indemnification and insurance provisions. OnFiber will pay a fee for attachment⁴ to PG&E's poles, conduits, and support structures in PG&E's distribution rights-of-way and easements. OnFiber will also pay for any rearrangement or upgrades necessary for its attachments based on estimated fees set forth in the Agreement.

Under the Master Agreement, OnFiber will identify those locations where it wishes to install equipment. Then, PG&E will work with OnFiber to determine if the equipment can be attached to those poles and underground facilities safely and without detriment to or interference with PG&E's electric distribution system.

The Master Agreement extends to PG&E's entire electric distribution service area. The term of the agreement as a license, lease, or combination of the two is five years beginning August 16, 2000. The Master Agreement contains an option to renew for two additional consecutive five year terms. Prior to commission approval, OnFiber's use of PG&E's poles and underground facilities is revocable consistent with GO 69-C.

PG&E states that the agreement is beneficial for PG&E because it allows constructive use of PG&E's distribution facilities, primarily poles and conduits, and will not interfere with the Company's electric operations or adversely affecting service to customers. The agreement also benefits OnFiber because it may expand its system and improve service using existing utility structures. PG&E believe this arrangement has no adverse effect on the environment since it uses existing structures, or replaces them if necessary in the same location, to carry additional telecommunication equipment. PG&E further states that the fees paid by OnFiber for attachment to PG&E's facilities are treated as other operating revenue and benefit PG&E's electric ratepayers because they are credited "above the line" to ratepayers for general rate case purposes.

PG&E states that this § 851 application is consistent with Commission rules governing right of way (ROW) access for telecommunication companies as adopted in D.98-10-058, and later modified in D.00-03-055 (ROW decisions).