Decision DRAFT DECISION OF ALJ WEISMEHL (Mailed 7/24/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the matter of Resolution T-14607; US West Cellular of California, Inc.; Order Regarding US West's Temporary Tariff Filing to Introduce a Promotional "Cash Back" Offer to Wholesale and Retail Customers.

Application 92-09-034 (Filed September 22, 1992)

OPINION

A. Background

This proceeding was originally tendered by the filers, GTE Mobilnet of California Limited Partnership and GTE Mobilnet of Santa Barbara Limited Partnership (GTE Mobilnets or applicants), as a petition for modification of Resolution T-14607. It was filed as a new application, noting the request as a modification of Resolution T-14607. Resolution T-14607, adopted by the Commission on September 25, 1991, concerned a promotional "cash back" offer to new retail cellular customers and wholesale resellers who signed up new customers or added lines for existing customers. The resolution did not authorize the cash back promotional offering and instead placed restrictions on the amount of any promotional gifts to customers.

The purpose of the modification request was to obtain an exception to the resolution's restrictions that would allow the offering of an air miles program, credits to be unlimited while based on the end-users cellular usage. This request was made at a time when the Commission still had authority over the rates charged by cellular companies.

Prehearing conferences were held; various meetings among parties were conducted; and briefs on aspects of the application were filed, but a decision was not issued resolving the request.

Subsequent to these events, the Omnibus Budget Reconciliation Act of 1993 was enacted removing state authority to regulate the rates or entry of commercial mobile radio service (CMRS) providers, including all cellular carriers. While a provision was provided to allow states to petition for continued rate regulation for a period of time, the Commission's August 8, 1994 petition to the Federal Communications Commission was denied on May 19, 1995. On August 8, 1995, a petition for reconsideration of this denial, filed by the Cellular Resellers Association, was denied. As a result of these actions, the Commission lost all authority to regulate the rates of CMRS providers. Such action essentially preempted any authority the Commission would have to act on this application.