ALJ/JCM/avs Mailed 9/9/2004

Decision 04-09-007 September 2, 2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation into the Operations and Practices of Verizon (formerly GTE California Incorporated) with respect to its Individual Case Basis Contracts.

Investigation 02-04-027 (Filed April 22, 2002)

Henry Weissmann and Elaine Duncan, Attorneys at Law, for Verizon California Inc., respondent.

Carol Dumond, Attorney at Law, for Consumer
Protection and Safety Division, interested party.

OPINION ADOPTING SETTLEMENT

Summary

By its Order Instituting Investigation in this proceeding, the Commission directed its Consumer Protection and Safety Division (CPSD, formerly Consumer Services Division) to conduct a review of Verizon's¹ operations and practices in connection with Individual Case Basis (ICB) contracts. The Commission ordered CPSD to retain and supervise consultants for the review, and Verizon to reimburse the Commission for the consultants' costs.

Verizon and CPSD have arrived at an uncontested settlement agreement under which Verizon will pay $4,836,000 to the state General Fund in satisfaction of any fines or other remedies that could have been sought or imposed for violation of the Public Utilities Code and of Commission rules relating to ICB and express contracts. The Commission adopts the settlement, the full text of which is set forth in Appendix A, as resolving all issues in the investigation, and closes the proceeding.