2. Settlement Agreement

The Settlement Agreement and the Joint Motion address the issues raised by the CPSD's protest. For Applicant's 15 months of unlawful operation in California (without the required CPCN pursuant to the Code sections 1001 et seq.), the Settlement Agreement contains Applicant's acknowledgement of those unlawful acts and requires Applicant's payment of all outstanding fees, surcharges and penalties, including interest. The Joint Motion addresses Applicant's non-disclosure on the short form application, including the related Rules 1.1 violation raised in the CPSD's protest. Applicant acknowledges and explains that it did not believe that it was sanctioned by the Ohio PUC, because it had subsequently filed the required documents. The Joint Motion indicates that CPSD accepts this explanation. As discussed herein, while these concerns raise questions as to Applicant's overall fitness to provide services in California as a non-dominant interexchange carrier and to comply with all of the regulatory mandates, the Settlement Agreement and the Joint Motion satisfactorily resolve those concerns.