6. Public Utilities Code Section 311(g)

Section 311(g)(1) requires the draft decision to be (i) served on all parties, and (ii) subject to at least 30 days of public review and comment prior to a vote of the Commission. The draft decision of Administrative Law Judge Kenney was mailed on May 31, 2001. Opening comments were filed on ___________, by ___________. Reply comments were filed on ____________, by __________. These comments have been reflected, as appropriate, in the final decision adopted by the Commission.

Findings of Fact

1. In its petition, Pacific states that it is authorized by D.98-07-033 to true up its approved CHCF-B draw with the revenue effect of the rate reductions adopted in D.98-07-033.

2. In its petition, Pacific asks the Commission to modify D.98-07-033 to specify how Pacific should perform the true up identified in the previous Finding of Fact. Pacific offers two approaches in its petition. One would result in a rate increase of $3.4 million, and the other in a rate increase of $17.2 million.

Conclusions of Law

1. The category for this proceeding is ratesetting.

2. A hearing is not necessary.

3. D.98-07-033 did not authorize Pacific to true up its approved draw from the CHCF-B with the actual reduction in revenues experienced by Pacific as a result of the rate reductions adopted in D.98-07-033.

4. Since D.98-07-033 does not authorize Pacific to true up its approved draw with the revenue effect, Pacific's petition to modify D.98-07-033 to specify how to perform the unauthorized true up should be denied.

5. The following order should be effective immediately so that its provisions may be implemented expeditiously.

ORDER

IT IS ORDERED that:

1. Pacific Bell's petition to modify Decision 98-07-033 is denied.

2. Application (A.) 99-01-025 and A.97-03-004 are closed.

This order is effective today.

Dated , at San Francisco, California.

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