IV. CONCLUSION

We have reviewed each and every allegation of legal error raised in the rehearing application and are of the opinion that legal error has not been demonstrated. Therefore we deny rehearing. However, in the interest of clarity, we shall use this opportunity to correct a clerical error in Finding of Fact No. 70.

Therefore, IT IS ORDERED that:

1. Finding of Fact No. 70 is corrected to delete the word "one" from the second portion of the sentence where it appears with the phrase "...one to five percent...", and replace it with the word "zero" so that the finding provides:

70. Establishing a curvilinear payment guide that starts with a payment of from zero to one percent of the payment cap for service with a zero to five percent failure rate adjusts for the ambiguity of lower failure rates.

2. The application for rehearing of Decision 02-03-023 filed by WorldCom, Inc., on behalf of itself and AT&T Communications of California, New Edge Networks, Inc., PacWest Telecomm, Inc., and XO California, Inc. is denied.

This Order is effective today.

Dated September 19, 2002, at San Francisco, California.

LORETTA M. LYNCH

President

HENRY M. DUQUE

CARL W. WOOD

GEOFFREY F. BROWN

MICHAEL R. PEEVEY

Commissioners