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Decision DRAFT DECISION OF ALJ PULSIFER (Mailed 11/7/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion into Competition for Local Exchange Service.

Rulemaking 95-04-043

Order Instituting Investigation on the Commission's Own Motion into Competition for Local Exchange Service.

Investigation 95-04-044

O P I N I O N

Summary

On May 3, 1999, Pacific Bell (Pacific) filed a motion seeking limited exogenous (LE) factor recovery of Commission-mandated educational costs incurred by Pacific to implement overlay area codes in various areas of California. Pacific claims these costs meet the criteria for Z-factor recovery established in Decision (D.) 94-06-011 and adopted for LE factor recovery in D.98-10-026. Pacific thus believes that LE factor recovery of overlay educational costs in each decision adopting an overlay education plan is warranted.

The Commission previously adopted decisions ordering carriers to implement overlay area codes in certain areas within California, including the 310 Numbering Plan Area (NPA), 714 NPA, 909 NPA, 408 NPA, 415 NPA, 510 NPA, and 650 NPA. In each of these decisions, the Commission mandated comprehensive public education programs (PEP) as a prerequisite to implementation of the overlay, based on the Commission's earlier holding that it would require an appropriate customer education and awareness program prior to any introduction of an overlay.

The Commission directed its staff and an industry group to develop for each overlay area a proposed PEP for Commission review. The Commission contemplated issuing subsequent decisions to adopt an actual PEP and appropriate funding mechanism for each overlay.1

1 The Commission subsequently suspended the 310/424 NPA overlay by D.99-09-067, and suspended all remaining previously approved overlay plans by D.99-12-051. PEP implementation was likewise suspended.

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