STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

February 1, 2005 Agenda ID #4290

Quasi-Legislative

TO: PARTIES OF RECORD IN RULEMAKING 03-04-003

RE: NOTICE OF AVAILABILITY OF DRAFT DECISION ON ORDER
ADOPTING REPORT IN FULFILLMENT OF SENATE BILL 1563

Consistent with Rule 2.3(b) of the Commission's Rules of Practice and Procedure (Rules), I am issuing this Notice of Availability of the above-referenced draft decision. The draft decision of Assigned Commissioner Susan Kennedy in the Commission's rulemaking to investigate the deployment of advanced telecommunications technologies, as required by Assembly Bill 1563, was issued on February 1, 2005. An Internet link to this document and the report described below was sent via e-mail to all parties on the service list who provided an e-mail address to the Commission. An electronic copy of the document can be viewed and downloaded at the Commission's Website ( www.cpuc.ca.gov).

The draft decision would adopt a report entitled "Broadband Deployment in California." This report is identified in the draft decision as "Attachment A." You may access the report at www.cpuc.ca.gov/broadbandreport . If you would like a hard copy of the report, or are having problems downloading the report and would like to be sent an electronic copy via e-mail please contact Phyllis White at (415) 703-1955, or at prw@cpuc.ca.gov.

Parties to the proceeding may file comments on the draft decision and the associated report as provided in Article 19 of the Commission's Rules. These rules are accessible on the Commission's Website at www.cpuc.ca.gov. Because the Commission seeks comments on the broadband report, which addresses numerous and complex technical, regulatory and policy issues, the Commission hereby waives the page limit for opening comments set forth in Rule 77.3. In addition, the Commission waives the page limit for reply comments set in Rule 77.5 and instead limits reply comments to no more than 10 pages. Comments must be served separately on the Administrative Law Judge, the Assigned Commissioner, and Phyllis White for the Telecommunications Division Staff. I suggest hand delivery, overnight mail, or other expeditious method of service. If possible, electronic copies of comments should be provided to Phyllis White at prw@cpuc.ca.gov at the same time they are mailed.

The draft decision will not appear on the Commission's agenda for at least 30 days after the date it is mailed. This matter was categorized as quasi-legislative pursuant to Pub. Util. Code § 1701.3(c). The Commission may act at the regular meeting, or it may postpone action until later. When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

COM/SK1/hkr DRAFT Agenda ID #4290

Quasi-Legislative

Decision DRAFT DECISION OF COMMISSIONER KENNEDY
(Mailed 2/1/2005)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion to Comply with the Mandates of Senate Bill 1563 regarding deployment of Advanced Telecommunications Technologies.

Rulemaking 03-04-003 (Filed April 3, 2003)

ORDER ADOPTING REPORT
IN FULFILLMENT OF SENATE BILL 1563

I. Summary

This decision releases the report of the Commission entitled Broadband Deployment in California, attached to this decision as Attachment A. This decision and report satisfy the requirements of Senate Bill (SB) 1563 (Ch. 674, Stats. 2002).

The report finds generally that advanced telecommunications technologies are increasingly central to the needs of families, the state's economy and the vitality of local communities. We find that California leads the nation in the deployment of broadband services and usage, and yet must continue to advance forward-looking public policies and programs that will ensure the state's continued leadership in deploying new advanced telecommunications technologies. Accordingly, we find that California should consider policies in several key areas, among them, improving access to rights-of-way, modifying the role of Commission approval of new networks and new providers of telecommunications services, and encouraging the examination of broadband deployment over existing power lines. The report also finds that the widespread adoption of Voice Over Internet Protocol services and other innovative services is likely to spur the deployment of broadband networks in California. Finally, the report discusses several ways to ensure broadband services are available to communities such as lower-income Californians, residents of rural areas, and the disabled community.