ALJ/MAB/hl2 DRAFT Agenda ID #5447

Ratesetting

Decision REVISED DRAFT DECISION OF ALJ BUSHEY (Mailed 3/14/2006)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Review Policies Concerning Intrastate Carrier Access Charges.

Rulemaking 03-08-018 (Filed August 21, 2003)

FINAL OPINION MODIFYING INTRASTATE ACCESS CHARGES

I. Summary

This decision reduces intrastate access charges¹ by eliminating two non-cost based charges - the network interconnection charge (NIC) and transport interconnection charge (TIC). Local exchange carriers are authorized to impose a surcharge on local telephone service to recover lost revenues. Small and mid-sized local exchange carriers are ordered to submit testimony on whether this policy should be extended to them, and include draft rate rebalancing plans.

¹ The term "access charges" refers to charges imposed by local exchange carriers for use of the local network by interexchange or long distance carriers, who use this switched access to originate and terminate long distance calls to the vast majority of California residential and business customers.