IV. Assignment of Proceeding

Carl W. Wood is the Assigned Commissioner and Dorothy Duda is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. In D.02-09-049, the Commission increased Pacific's shared and common cost markup from 19% to 21% and ordered Pacific to remove 13% from the expense portion of its UNE recurring costs.

2. The recurring and nonrecurring UNE rate changes ordered in D.02-09-049 were effective September 19, 2002, but the implementation of the rate changes was stayed pending resolution of the actual adjustment amount.

3. Pacific submitted recalculations of its UNE recurring costs in compliance with D.02-09-049 and there were no protests to the accuracy of Pacific's calculations.

4. Some parties have challenged the completeness of Pacific's calculations, contending the rate adjustments are applicable to other UNEs.

Conclusions of Law

1. The Commission should approve the recalculation of Pacific's UNE recurring and nonrecurring costs, contained in Appendices A and B of this order, and the rates, which were effective on September 19, 2002, should be implemented as of the date of this order.

2. Pacific should calculate any adjustments that it may owe to interconnecting carriers for UNEs purchased on or after September 19, 2003 if the rates in Appendices A and B are lower than the amount Pacific had previously billed.

3. Pacific should calculate whether it is owed money by interconnecting carriers for UNEs purchased on or after September 19, 2003, if the rates in Appendices A and B are higher than the amount Pacific had previously billed.

4. Within 60 days of this order, Pacific should ensure that billing adjustments to reflect monies owed to or by interconnecting carriers for UNEs purchased at the rates in Appendices A and B on or after September 19, 2002 are properly reflected in its bills for UNE recurring and nonrecurring charges.

ORDER

IT IS ORDERED that:

1. The recurring and nonrecurring prices for unbundled network elements (UNEs) offered by Pacific Bell Telephone Company (Pacific) that are set forth in Appendices A and B to this decision are approved.

2. Pursuant to Commission Resolution ALJ-181 (adopted October 5, 2000), Pacific shall prepare amendments to all interconnection agreements between itself and other carriers. Such amendments shall substitute the recurring and nonrecurring UNE prices set forth in Appendices A and B, for the UNE prices set forth in such interconnection agreements. Such amendments shall be filed with the Commission's Telecommunications Division, pursuant to the advice letter process set forth in Rules 6.1 and 6.2 of Resolution ALJ-181, within 30 days after the effective date of this order. The amendments do not require a signature of the carriers involved as long as the amendments are limited to substituting the UNE rates adopted in today's order. Unless protested, such amendments shall become effective 30 days after filing.

3. Within 60 days of the effective date of this order, Pacific shall calculate any billing adjustments owed to or by interconnecting carriers based on the implementation of the rates in this order and ensure that these adjustments are reflected in its bills for recurring and nonrecurring UNE prices.

This order is effective today.

Dated July 10, 2003, San Francisco, California.

Appendixes A and B in D0307023

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