ALJ/DOT/avs DRAFT Agenda ID #2707

Ratesetting

9/18/2003 Item 26

Decision DRAFT DECISION OF ALJ DUDA (Mailed 9/9/2003)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of 360networks (USA) inc., (U-6028-C) for authorization to transfer control of public utility operations in California.

Application 02-10-022 (Filed October 18, 2002)

OPINION GRANTING INDIRECT TRANSFER OF CONTROL

AND FINING APPLICANT FOR VIOLATION OF SECTION 854(a)
OF THE PUBLIC UTILITIES CODE

1. Summary

360networks (USA) inc. (Applicant) requests approval to transfer control of its public utility business in California in connection with reorganization of its parent company, 360networks inc. (360networks), pursuant to orders of Canadian and United States bankruptcy courts.

This decision grants Application (A.) 02-10-022 to the extent it requests prospective authority under Pub. Util. Code § 854¹ for the indirect transfer of control. This decision denies the application to the extent it requests retroactive authority for the transfer. Finally, this decision requires Applicant to pay a fine of $ 2,500 for its failure to obtain Commission authorization for this transfer of control prior to consummating the transaction as required by § 854(a).