VI. Assignment of Proceeding

Commissioner Michael R. Peevey is the Assigned Commissioner and Dorothy J. Duda is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. In D.03-03-033, the Commission set interim rates for a subset of Verizon's UNEs, using UNE rates recently adopted for Verizon's operations in New Jersey as a starting point and adjusting these rates based on the FCC's Synthesis Model.

2. On May 7, 2004, the New Jersey Board adjusted UNE rates for Verizon New Jersey to modify the cost of capital and to correct a cost allocation error involving switching.

3. Verizon's petition was filed more than one year following D.03-03-033 because the New Jersey Board adjusted Verizon New Jersey UNE rates in May 2004.

Conclusions of Law

1. It is reasonable to adjust Verizon's interim UNE rates based on adjustments to New Jersey rates because the changes are not unduly burdensome to calculate or implement.

2. Verizon's petition for modification of D.03-03-033 should be granted.

3. The rates set forth in Appendices A, B, and C of this order should replace the rates in Appendices A, B, and C. of D.03-03-033.

ORDER

IT IS ORDERED that:

1. The May 21, 2004 petition of Verizon California Inc. (Verizon) to modify Decision (D.) 03-03-033 is granted.

2. Appendices A, B, and C of this order should replace Appendices A, B, and C in D.03-03-033.

This order is effective today.

Dated _____________________, at San Francisco, California.

ATTACH A B C TO DOT R9304003 I9304002