STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

January 11, 2005

To: All Interested Parties Listed Below:

Draft Resolution T-16878 will be on the agenda of the Commission's February 10, 2005 meeting. The resolution proposes the approval of the California Teleconnect Fund (CTF) Administrative Committee Fund Expense Budget of $21.092 million for the period from July 1, 2005 through June 30, 2006 and a surcharge of .22% effective March 1, 2005 and a revised budget of $17.9 million for fiscal year 2004-2005.

A copy of the draft resolution is available to the public at the Commission's web-site at www.cpuc.ca.gov/static/industry/telco/proceedings/resolutions/index.htm. This Notice of Availability of draft resolution T-16878 also informs you of the availability of the conformed resolutions, when adopted by the Commission, at the same website.

Pursuant to Public Utilities (PU) Code 311 (g), this draft resolution is available for public comments. Comments should be focused on factual, legal, and/or technical errors in the draft resolution. Comments must be limited to five pages in length and shall include a subject index listing the recommendations to the draft resolution, a table of authorities, and an appendix setting forth the proposed revised findings and ordering paragraphs.

Draft Resolution T-16878 will be on the agenda of the Commission's February 10, 2005 meeting, which is to be held 30 days from the above mailing date. The Commission may vote on the resolution, or it may postpone a vote until later. When the Commission votes on a draft resolution, it may adopt all or part of it as written, amend, or modify it, or set it aside and prepare a different resolution. Only when the Commission acts does a resolution become binding on the parties.

If you wish to be served by parties filing opening and reply comments, please inform the Telecommunications Division, Public Programs Branch, of the California Public Utilities Commission by January 18, 2005 of your request by e-mail to ksm@cpuc.ca.gov or by mail to the address noted below. Otherwise, comments on Resolution T-16878 will be addressed only to the Telecommunications Division as stated below. The date of submission is the date the comments are received by the Telecommunications Division. Parties must serve a copy of their comments to each requesting party, if any, as set forth on the Commission web-site on the same date that the comments are submitted to the Telecommunications Division. The requesting party list, if any, will be available on the Commission web-site at http://www.cpuc.ca.gov/static/industry/telco/public+programs/index.htm on January 21, 2005.

Comments must be received no later than January 26, 2005 (which is 15 days from the date of this mailing). Reply comments may be submitted on or before January 31, 2005 (5 days after opening comments are submitted) and shall be limited to identifying misrepresentations of law, fact, or condition of the record contained in the comments of other parties. Replies shall not exceed three pages in length and shall be submitted and served in the same manner as opening comments.

Late-filed opening comments and/or reply comments will ordinarily be rejected. However, in extraordinary circumstances, a request for leave to submit comments or replies late may be filed together with proposed comments/replies. An accompanying declaration under penalty of perjury shall be submitted setting forth all the reasons for the late submission.

Request for comments by parties as well as opening comments and reply comments on Resolutions T-16878 should be addressed to:

Katherine Morehouse

California Public Utilities Commission

Telecommunications Division

Public Programs Branch

505 Van Ness Avenue

San Francisco, CA 94102.

Please be advised that for future mailings, TD will provide notice letters by e-mail only. Parties of record in I.87-11-031, R.00-05-051 and R.03-03-014 should provide their e-mail address to the Telecommunications Division at telco_answer@cpuc.ca.gov by January 21, 2005. Otherwise, you will no longer receive notification from TD staff for being a party on these service lists.

Sincerely,

/s/ Jack Leutza

Jack Leutza, Director

Telecommunications Division

Enclosure

Notice letter mailed/emailed to the following parties:

California Teleconnect Fund Administrative Committee, CTF claiming carriers, all telecommunications carriers and parties of record in I.87-11-031, R.00-05-001 and R.03-03-014.