diff --git a/.kanbn/index.md b/.kanbn/index.md index 1d293bf..ee04876 100644 --- a/.kanbn/index.md +++ b/.kanbn/index.md @@ -13,48 +13,38 @@ sprints: ## Backlog -- [tech-ops-remove-true-nas-from-pfv-stor1](tasks/tech-ops-remove-true-nas-from-pfv-stor1.md) -- [household-maintenance-air-mattress-leak](tasks/household-maintenance-air-mattress-leak.md) -- [photograph-and-list-inventory](tasks/photograph-and-list-inventory.md) -- [household-maintenance-monthly-quarterly-routine](tasks/household-maintenance-monthly-quarterly-routine.md) -- [household-maintenance-toll-billpay](tasks/household-maintenance-toll-billpay.md) -- [household-maintenance-process-mail-backlog](tasks/household-maintenance-process-mail-backlog.md) -- [vehicle-maintenance-phone-mount-mazda](tasks/vehicle-maintenance-phone-mount-mazda.md) -- [vehicle-maintenance-mount-tahoe-dash-cam](tasks/vehicle-maintenance-mount-tahoe-dash-cam.md) -- [ukrrs-feed-in-documents-emails-into-the-ukrrs](tasks/ukrrs-feed-in-documents-emails-into-the-ukrrs.md) -- [vehicle-maintenance-fix-plastic-panel-on-driver-side-front-door](tasks/vehicle-maintenance-fix-plastic-panel-on-driver-side-front-door.md) -- [stl-mount-shelf-in-common-area](tasks/stl-mount-shelf-in-common-area.md) -- [bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com](tasks/bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com.md) -- [bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com](tasks/bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com.md) -- [bizops-create-emergency-action-plan](tasks/bizops-create-emergency-action-plan.md) +- [cio-rdit-pcb-cleanup](tasks/cio-rdit-pcb-cleanup.md) +- [cio-rdit-environmental-chamber](tasks/cio-rdit-environmental-chamber.md) +- [cio-rdit-pcb-stencil-making](tasks/cio-rdit-pcb-stencil-making.md) +- [cio-rdit-finish-reflow-oven-build](tasks/cio-rdit-finish-reflow-oven-build.md) - [bizops-pac](tasks/bizops-pac.md) - [bizops-insurance](tasks/bizops-insurance.md) - [bizops-continunity](tasks/bizops-continunity.md) - [bizops-tsys-llc](tasks/bizops-tsys-llc.md) - [recover-pki-safe-combination](tasks/recover-pki-safe-combination.md) - [update-rr-subo-llc-operating-agreements-using-fairshares-model](tasks/update-rr-subo-llc-operating-agreements-using-fairshares-model.md) -- [rack-rental-dut-finish-galielo-bringup](tasks/rack-rental-dut-finish-galielo-bringup.md) -- [rack-rental-dut-finish-parallella-bringup](tasks/rack-rental-dut-finish-parallella-bringup.md) -- [rack-rental-dut-finish-sifive-bringup](tasks/rack-rental-dut-finish-sifive-bringup.md) -- [rack-rental-infrastructure-get-rackrental-router-2800-on-net](tasks/rack-rental-infrastructure-get-rackrental-router-2800-on-net.md) -- [rack-rental-infrastructure-physical-dut-console](tasks/rack-rental-infrastructure-physical-dut-console.md) +- [bizops-create-emergency-action-plan](tasks/bizops-create-emergency-action-plan.md) ## Todo -- [cio-rdit-pcb-cleanup](tasks/cio-rdit-pcb-cleanup.md) -- [cio-rdit-pcb-stencil-making](tasks/cio-rdit-pcb-stencil-making.md) -- [cio-rdit-finish-reflow-oven-build](tasks/cio-rdit-finish-reflow-oven-build.md) -- [cio-rdit-environmental-chamber](tasks/cio-rdit-environmental-chamber.md) +- [laptop-setup-setup-backup-system-local-remote-and-take-initial-backup](tasks/laptop-setup-setup-backup-system-local-remote-and-take-initial-backup.md) +- [cio-rdit-rack-rental-dut-finish-galielo-bringup](tasks/cio-rdit-rack-rental-dut-finish-galielo-bringup.md) +- [cio-rdit-rack-rental-dut-finish-sifive-bringup](tasks/cio-rdit-rack-rental-dut-finish-sifive-bringup.md) +- [cio-rdit-rack-rental-infrastructure-physical-dut-console](tasks/cio-rdit-rack-rental-infrastructure-physical-dut-console.md) +- [cio-rdit-rack-rental-dut-finish-parallella-bringup](tasks/cio-rdit-rack-rental-dut-finish-parallella-bringup.md) +- [cio-rdit-rack-rental-infrastructure-get-rackrental-router-2800-on-net](tasks/cio-rdit-rack-rental-infrastructure-get-rackrental-router-2800-on-net.md) ## In Progress - [laptop-setup-install-all-software-packages-and-document-the-list](tasks/laptop-setup-install-all-software-packages-and-document-the-list.md) -- [setup-continue-with-local-llm](tasks/setup-continue-with-local-llm.md) -- [laptop-setup-setup-backup-system-local-remote-and-take-initial-backup](tasks/laptop-setup-setup-backup-system-local-remote-and-take-initial-backup.md) -- [laptop-setup-setup-sandbox-pre-production-testing-lab-network-storage](tasks/laptop-setup-setup-sandbox-pre-production-testing-lab-network-storage.md) +- [bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com](tasks/bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com.md) +- [bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com](tasks/bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com.md) +- [laptop-setup-dotfiles](tasks/laptop-setup-dotfiles.md) - [laptop-setup-vscode-setup-kb-notes-workspace-profile-tsys-account](tasks/laptop-setup-vscode-setup-kb-notes-workspace-profile-tsys-account.md) - [laptop-setup-vscode-setup-personal-kb-notes-workspace-profile-offstage-account](tasks/laptop-setup-vscode-setup-personal-kb-notes-workspace-profile-offstage-account.md) -- [laptop-setup-dotfiles](tasks/laptop-setup-dotfiles.md) +- [laptop-setup-setup-sandbox-pre-production-testing-lab-network-storage](tasks/laptop-setup-setup-sandbox-pre-production-testing-lab-network-storage.md) +- [ukrrs-feed-in-documents-emails-into-the-ukrrs](tasks/ukrrs-feed-in-documents-emails-into-the-ukrrs.md) +- [setup-continue-with-local-llm](tasks/setup-continue-with-local-llm.md) ## Done @@ -77,3 +67,8 @@ sprints: - [setup-coo-laptop-ipad-iphone](tasks/setup-coo-laptop-ipad-iphone.md) - [deploy-paperless-ngx](tasks/deploy-paperless-ngx.md) - [deploy-audiobookshelf](tasks/deploy-audiobookshelf.md) +- [server-room-ac-on-net](tasks/server-room-ac-on-net.md) +- [download-and-install-xilinx-full-suite-free](tasks/download-and-install-xilinx-full-suite-free.md) +- [household-maintenance-process-mail-backlog](tasks/household-maintenance-process-mail-backlog.md) +- [stl-mount-shelf-in-common-area](tasks/stl-mount-shelf-in-common-area.md) +- [tech-ops-remove-true-nas-from-pfv-stor1](tasks/tech-ops-remove-true-nas-from-pfv-stor1.md) diff --git a/.kanbn/tasks/bizops-create-emergency-action-plan.md b/.kanbn/tasks/bizops-create-emergency-action-plan.md index 3e87762..1170f37 100644 --- a/.kanbn/tasks/bizops-create-emergency-action-plan.md +++ b/.kanbn/tasks/bizops-create-emergency-action-plan.md @@ -1,11 +1,11 @@ --- created: 2023-11-25T22:30:17.733Z -updated: 2023-11-25T22:30:17.726Z -assigned: "" +updated: 2023-12-13T17:51:18.237Z +assigned: Charles progress: 0 tags: [] --- # Bizops: Create Emergency Action Plan -EAP needs to reference (and/or be referenced by) the STL shop manual and TSG handbook. +EAP needs to reference (and/or be referenced by) the STL shop manual and TSG handbook. diff --git a/.kanbn/tasks/bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com.md b/.kanbn/tasks/bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com.md index 76205be..630affc 100644 --- a/.kanbn/tasks/bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com.md +++ b/.kanbn/tasks/bizops-ensure-all-2022-receipts-are-properly-categorized-in-neat-com.md @@ -1,6 +1,6 @@ --- created: 2023-11-23T15:00:59.108Z -updated: 2023-11-23T22:31:24.449Z +updated: 2023-12-13T17:50:48.582Z assigned: Charles progress: 0 tags: [] diff --git a/.kanbn/tasks/bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com.md b/.kanbn/tasks/bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com.md index b840868..d7a9e47 100644 --- a/.kanbn/tasks/bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com.md +++ b/.kanbn/tasks/bizops-ensure-all-2023-receipts-are-captured-and-properly-categorized-in-neat-com.md @@ -1,6 +1,6 @@ --- created: 2023-11-23T15:01:13.505Z -updated: 2023-11-23T22:31:18.481Z +updated: 2023-12-13T17:50:43.621Z assigned: Charles progress: 0 tags: [] diff --git a/.kanbn/tasks/cio-rdit-environmental-chamber.md b/.kanbn/tasks/cio-rdit-environmental-chamber.md index 7dd8ee8..e5d686d 100644 --- a/.kanbn/tasks/cio-rdit-environmental-chamber.md +++ b/.kanbn/tasks/cio-rdit-environmental-chamber.md @@ -1,6 +1,6 @@ --- created: 2023-12-07T03:40:22.243Z -updated: 2023-12-07T03:40:22.235Z +updated: 2023-12-13T17:50:34.368Z assigned: AJ progress: 0 tags: [] diff --git a/.kanbn/tasks/cio-rdit-finish-reflow-oven-build.md b/.kanbn/tasks/cio-rdit-finish-reflow-oven-build.md index 9545ceb..0cbebed 100644 --- a/.kanbn/tasks/cio-rdit-finish-reflow-oven-build.md +++ b/.kanbn/tasks/cio-rdit-finish-reflow-oven-build.md @@ -1,6 +1,6 @@ --- created: 2023-12-07T00:11:41.225Z -updated: 2023-12-07T00:13:18.189Z +updated: 2023-12-13T17:50:35.934Z assigned: AJ progress: 0 tags: [] diff --git a/.kanbn/tasks/cio-rdit-pcb-cleanup.md b/.kanbn/tasks/cio-rdit-pcb-cleanup.md index b25cc1e..b90820b 100644 --- a/.kanbn/tasks/cio-rdit-pcb-cleanup.md +++ b/.kanbn/tasks/cio-rdit-pcb-cleanup.md @@ -1,6 +1,6 @@ --- created: 2023-12-07T00:12:15.355Z -updated: 2023-12-07T00:12:59.591Z +updated: 2023-12-13T17:50:38.956Z assigned: AJ progress: 0 tags: [] diff --git a/.kanbn/tasks/cio-rdit-pcb-stencil-making.md b/.kanbn/tasks/cio-rdit-pcb-stencil-making.md index cb30219..0b3fcbb 100644 --- a/.kanbn/tasks/cio-rdit-pcb-stencil-making.md +++ b/.kanbn/tasks/cio-rdit-pcb-stencil-making.md @@ -1,6 +1,6 @@ --- created: 2023-12-07T00:10:48.260Z -updated: 2023-12-07T00:13:07.989Z +updated: 2023-12-13T17:50:37.582Z assigned: AJ progress: 0 tags: [] diff --git a/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-galielo-bringup.md b/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-galielo-bringup.md new file mode 100644 index 0000000..fa4f05a --- /dev/null +++ b/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-galielo-bringup.md @@ -0,0 +1,9 @@ +--- +created: 2023-11-25T22:54:41.380Z +updated: 2023-12-13T17:53:12.676Z +assigned: "" +progress: 0 +tags: [] +--- + +# CIO:RDIT:RackRental-DUT: Finish galielo bringup diff --git a/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-parallella-bringup.md b/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-parallella-bringup.md new file mode 100644 index 0000000..45229ba --- /dev/null +++ b/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-parallella-bringup.md @@ -0,0 +1,9 @@ +--- +created: 2023-11-25T22:55:17.340Z +updated: 2023-12-13T17:54:04.213Z +assigned: "" +progress: 0 +tags: [] +--- + +# CIO:RDIT:RackRental-DUT: Finish parallella bringup diff --git a/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-sifive-bringup.md b/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-sifive-bringup.md new file mode 100644 index 0000000..e32ba87 --- /dev/null +++ b/.kanbn/tasks/cio-rdit-rack-rental-dut-finish-sifive-bringup.md @@ -0,0 +1,10 @@ +--- +created: 2023-11-25T22:55:55.145Z +updated: 2023-12-13T17:53:28.238Z +assigned: "" +progress: 0 +tags: [] +due: 2023-12-29T00:00:00.000Z +--- + +# CIO:RDIT:RackRental-DUT: Finish sifive bringup diff --git a/.kanbn/tasks/rack-rental-infrastructure-get-rackrental-router-2800-on-net.md b/.kanbn/tasks/cio-rdit-rack-rental-infrastructure-get-rackrental-router-2800-on-net.md similarity index 62% rename from .kanbn/tasks/rack-rental-infrastructure-get-rackrental-router-2800-on-net.md rename to .kanbn/tasks/cio-rdit-rack-rental-infrastructure-get-rackrental-router-2800-on-net.md index ee6c8a7..1a272cd 100644 --- a/.kanbn/tasks/rack-rental-infrastructure-get-rackrental-router-2800-on-net.md +++ b/.kanbn/tasks/cio-rdit-rack-rental-infrastructure-get-rackrental-router-2800-on-net.md @@ -1,11 +1,11 @@ --- created: 2023-11-25T23:25:16.389Z -updated: 2023-11-25T23:26:42.051Z -assigned: "" +updated: 2023-12-13T17:54:23.374Z +assigned: Charles progress: 0 tags: [] --- -# RackRental-Infrastructure: Get rackrental router (2800) on net +# CIO:RDIT:RackRental-Infrastructure: Get rackrental router (2800) on net This will be the router used to intercept CDP packets and send the appropriate DHCP request so that the DUT can get the appropriate config file. diff --git a/.kanbn/tasks/rack-rental-infrastructure-physical-dut-console.md b/.kanbn/tasks/cio-rdit-rack-rental-infrastructure-physical-dut-console.md similarity index 64% rename from .kanbn/tasks/rack-rental-infrastructure-physical-dut-console.md rename to .kanbn/tasks/cio-rdit-rack-rental-infrastructure-physical-dut-console.md index 577ba37..b3a05c2 100644 --- a/.kanbn/tasks/rack-rental-infrastructure-physical-dut-console.md +++ b/.kanbn/tasks/cio-rdit-rack-rental-infrastructure-physical-dut-console.md @@ -1,12 +1,12 @@ --- created: 2023-11-25T23:27:08.143Z -updated: 2023-11-25T23:27:54.756Z -assigned: "" +updated: 2023-12-13T17:53:44.074Z +assigned: Charles progress: 0 tags: [] --- -# RackRental-Infrastructure: Physical DUT Console +# CIO:RDIT:RackRental-Infrastructure: Physical DUT Console fix cyclades ssh diff --git a/.kanbn/tasks/download-and-install-xilinx-full-suite-free.md b/.kanbn/tasks/download-and-install-xilinx-full-suite-free.md new file mode 100644 index 0000000..21b35f4 --- /dev/null +++ b/.kanbn/tasks/download-and-install-xilinx-full-suite-free.md @@ -0,0 +1,14 @@ +--- +created: 2023-12-11T14:10:17.226Z +updated: 2023-12-11T14:10:17.220Z +assigned: Charles +progress: 0 +tags: [] +due: 2023-12-31T00:00:00.000Z +started: 2023-12-01T00:00:00.000Z +completed: 2023-12-11T00:00:00.000Z +--- + +# Download and install Xilinx full suite (free) + +Subject says it all. A 100 GB download/install. FPGA is.... intense. diff --git a/.kanbn/tasks/household-maintenance-air-mattress-leak.md b/.kanbn/tasks/household-maintenance-air-mattress-leak.md deleted file mode 100644 index cbddd91..0000000 --- a/.kanbn/tasks/household-maintenance-air-mattress-leak.md +++ /dev/null @@ -1,16 +0,0 @@ ---- -created: 2023-11-23T15:22:51.993Z -updated: 2023-11-25T22:39:51.876Z -assigned: Patti -progress: 0.6 -tags: - - CFOO -due: 2023-11-16T00:00:00.000Z -started: 2023-11-15T00:00:00.000Z ---- - -# Household Maintenance: Air Mattress Leak - -Air mattress is leaking air. - -As of 11/23/2023 , two patches have been applied. Additonal leak(s) exists. diff --git a/.kanbn/tasks/household-maintenance-monthly-quarterly-routine.md b/.kanbn/tasks/household-maintenance-monthly-quarterly-routine.md deleted file mode 100644 index 345f499..0000000 --- a/.kanbn/tasks/household-maintenance-monthly-quarterly-routine.md +++ /dev/null @@ -1,16 +0,0 @@ ---- -created: 2023-11-23T15:16:26.018Z -updated: 2023-11-23T15:24:17.922Z -assigned: Patti -progress: 0 -tags: - - CFOO ---- - -# Household Maintenance: Monthly/quarterly routine - -Setup maintenance reminders (in HomeChart/Grocy) for things like - -Changing AC filters -Glade cartridges -etc diff --git a/.kanbn/tasks/household-maintenance-process-mail-backlog.md b/.kanbn/tasks/household-maintenance-process-mail-backlog.md index 3bcfb34..c87a1cd 100644 --- a/.kanbn/tasks/household-maintenance-process-mail-backlog.md +++ b/.kanbn/tasks/household-maintenance-process-mail-backlog.md @@ -1,10 +1,13 @@ --- created: 2023-11-23T15:14:33.561Z -updated: 2023-11-23T15:24:40.611Z -assigned: Patti +updated: 2023-12-13T17:01:38.832Z +assigned: Charles progress: 0 tags: - CFOO +due: 2023-12-31T00:00:00.000Z +started: 2023-12-01T00:00:00.000Z +completed: 2023-12-08T00:00:00.000Z --- # Household Maintenance: Process mail backlog diff --git a/.kanbn/tasks/household-maintenance-toll-billpay.md b/.kanbn/tasks/household-maintenance-toll-billpay.md deleted file mode 100644 index eb2b85e..0000000 --- a/.kanbn/tasks/household-maintenance-toll-billpay.md +++ /dev/null @@ -1,12 +0,0 @@ ---- -created: 2023-11-23T15:18:39.145Z -updated: 2023-11-23T15:24:28.947Z -assigned: Patti -progress: 0 -tags: - - CFOO ---- - -# Household Maintenance: Toll billpay - -Combine toll accounts into single account and setup auto pay diff --git a/.kanbn/tasks/laptop-setup-dotfiles.md b/.kanbn/tasks/laptop-setup-dotfiles.md index 4babad0..fd5693c 100644 --- a/.kanbn/tasks/laptop-setup-dotfiles.md +++ b/.kanbn/tasks/laptop-setup-dotfiles.md @@ -1,6 +1,6 @@ --- created: 2023-11-24T03:30:16.496Z -updated: 2023-12-07T17:55:34.661Z +updated: 2023-12-11T14:10:41.246Z assigned: Charles progress: 0.8 tags: [] diff --git a/.kanbn/tasks/laptop-setup-install-all-software-packages-and-document-the-list.md b/.kanbn/tasks/laptop-setup-install-all-software-packages-and-document-the-list.md index 3532b4b..e165cdc 100644 --- a/.kanbn/tasks/laptop-setup-install-all-software-packages-and-document-the-list.md +++ b/.kanbn/tasks/laptop-setup-install-all-software-packages-and-document-the-list.md @@ -1,6 +1,6 @@ --- created: 2023-11-23T14:50:09.511Z -updated: 2023-12-08T01:11:12.388Z +updated: 2023-12-13T17:51:27.819Z assigned: Charles progress: 0.9 tags: diff --git a/.kanbn/tasks/laptop-setup-setup-backup-system-local-remote-and-take-initial-backup.md b/.kanbn/tasks/laptop-setup-setup-backup-system-local-remote-and-take-initial-backup.md index 5082c01..815e85e 100644 --- a/.kanbn/tasks/laptop-setup-setup-backup-system-local-remote-and-take-initial-backup.md +++ b/.kanbn/tasks/laptop-setup-setup-backup-system-local-remote-and-take-initial-backup.md @@ -1,6 +1,6 @@ --- created: 2023-11-23T14:58:02.576Z -updated: 2023-11-25T23:53:25.159Z +updated: 2023-12-13T17:50:31.483Z assigned: Charles progress: 0 tags: [] diff --git a/.kanbn/tasks/laptop-setup-vscode-setup-kb-notes-workspace-profile-tsys-account.md b/.kanbn/tasks/laptop-setup-vscode-setup-kb-notes-workspace-profile-tsys-account.md index 76981a5..b974482 100644 --- a/.kanbn/tasks/laptop-setup-vscode-setup-kb-notes-workspace-profile-tsys-account.md +++ b/.kanbn/tasks/laptop-setup-vscode-setup-kb-notes-workspace-profile-tsys-account.md @@ -1,6 +1,6 @@ --- created: 2023-11-23T15:00:17.724Z -updated: 2023-11-25T17:26:30.196Z +updated: 2023-12-11T14:10:58.075Z assigned: Charles progress: 0.5 tags: [] diff --git a/.kanbn/tasks/laptop-setup-vscode-setup-personal-kb-notes-workspace-profile-offstage-account.md b/.kanbn/tasks/laptop-setup-vscode-setup-personal-kb-notes-workspace-profile-offstage-account.md index c2ee445..51550bf 100644 --- a/.kanbn/tasks/laptop-setup-vscode-setup-personal-kb-notes-workspace-profile-offstage-account.md +++ b/.kanbn/tasks/laptop-setup-vscode-setup-personal-kb-notes-workspace-profile-offstage-account.md @@ -1,6 +1,6 @@ --- created: 2023-11-23T15:00:34.145Z -updated: 2023-11-25T21:26:19.767Z +updated: 2023-12-11T14:11:05.310Z assigned: Charles progress: 0.25 tags: [] diff --git a/.kanbn/tasks/photograph-and-list-inventory.md b/.kanbn/tasks/photograph-and-list-inventory.md deleted file mode 100644 index de965fa..0000000 --- a/.kanbn/tasks/photograph-and-list-inventory.md +++ /dev/null @@ -1,14 +0,0 @@ ---- -created: 2023-11-23T22:30:18.335Z -updated: 2023-11-25T22:39:49.982Z -assigned: Patti -progress: 0.3 -tags: - - CFOO -due: 2023-11-24T00:00:00.000Z -started: 2023-11-16T00:00:00.000Z ---- - -# Photograph and list inventory - -We had a retail arb business sometime ago. We need to photograph and list the remaining inventory. diff --git a/.kanbn/tasks/rack-rental-dut-finish-galielo-bringup.md b/.kanbn/tasks/rack-rental-dut-finish-galielo-bringup.md deleted file mode 100644 index 9535add..0000000 --- a/.kanbn/tasks/rack-rental-dut-finish-galielo-bringup.md +++ /dev/null @@ -1,9 +0,0 @@ ---- -created: 2023-11-25T22:54:41.380Z -updated: 2023-11-25T22:54:41.371Z -assigned: "" -progress: 0 -tags: [] ---- - -# RackRental-DUT: Finish galielo bringup diff --git a/.kanbn/tasks/rack-rental-dut-finish-parallella-bringup.md b/.kanbn/tasks/rack-rental-dut-finish-parallella-bringup.md deleted file mode 100644 index b8f00a7..0000000 --- a/.kanbn/tasks/rack-rental-dut-finish-parallella-bringup.md +++ /dev/null @@ -1,9 +0,0 @@ ---- -created: 2023-11-25T22:55:17.340Z -updated: 2023-11-25T22:55:17.335Z -assigned: "" -progress: 0 -tags: [] ---- - -# RackRental-DUT: Finish parallella bringup diff --git a/.kanbn/tasks/rack-rental-dut-finish-sifive-bringup.md b/.kanbn/tasks/rack-rental-dut-finish-sifive-bringup.md deleted file mode 100644 index 1fa9835..0000000 --- a/.kanbn/tasks/rack-rental-dut-finish-sifive-bringup.md +++ /dev/null @@ -1,10 +0,0 @@ ---- -created: 2023-11-25T22:55:55.145Z -updated: 2023-11-25T22:56:25.075Z -assigned: "" -progress: 0 -tags: [] -due: 2023-12-31T00:00:00.000Z ---- - -# RackRental-DUT: Finish sifive bringup diff --git a/.kanbn/tasks/server-room-ac-on-net.md b/.kanbn/tasks/server-room-ac-on-net.md new file mode 100644 index 0000000..b255088 --- /dev/null +++ b/.kanbn/tasks/server-room-ac-on-net.md @@ -0,0 +1,14 @@ +--- +created: 2023-12-11T14:08:58.875Z +updated: 2023-12-11T14:08:58.869Z +assigned: Charles +progress: 0 +tags: [] +due: 2023-12-31T00:00:00.000Z +started: 2023-12-01T00:00:00.000Z +completed: 2023-12-10T00:00:00.000Z +--- + +# Server room AC on net + +Get carrier mini split onto wifi network for Home Assistant integration. diff --git a/.kanbn/tasks/setup-continue-with-local-llm.md b/.kanbn/tasks/setup-continue-with-local-llm.md index 6e63c71..b562625 100644 --- a/.kanbn/tasks/setup-continue-with-local-llm.md +++ b/.kanbn/tasks/setup-continue-with-local-llm.md @@ -1,6 +1,6 @@ --- created: 2023-12-07T19:42:40.648Z -updated: 2023-12-07T19:42:49.209Z +updated: 2023-12-11T14:10:44.359Z assigned: Charles progress: 0 tags: [] diff --git a/.kanbn/tasks/stl-mount-shelf-in-common-area.md b/.kanbn/tasks/stl-mount-shelf-in-common-area.md index f27b378..ec76b40 100644 --- a/.kanbn/tasks/stl-mount-shelf-in-common-area.md +++ b/.kanbn/tasks/stl-mount-shelf-in-common-area.md @@ -1,9 +1,12 @@ --- created: 2023-11-23T17:47:10.859Z -updated: 2023-11-23T22:31:09.261Z -assigned: Patti -progress: 0 +updated: 2023-12-13T17:48:29.602Z +assigned: Charles +progress: 1 tags: [] +due: 2023-12-30T00:00:00.000Z +started: 2023-11-30T00:00:00.000Z +completed: 2023-12-07T00:00:00.000Z --- # STL: Mount Shelf in common area diff --git a/.kanbn/tasks/tech-ops-remove-true-nas-from-pfv-stor1.md b/.kanbn/tasks/tech-ops-remove-true-nas-from-pfv-stor1.md index a0e548b..feb6b3f 100644 --- a/.kanbn/tasks/tech-ops-remove-true-nas-from-pfv-stor1.md +++ b/.kanbn/tasks/tech-ops-remove-true-nas-from-pfv-stor1.md @@ -1,11 +1,12 @@ --- created: 2023-11-23T16:07:51.627Z -updated: 2023-11-25T22:39:42.782Z +updated: 2023-12-13T17:49:08.071Z assigned: Charles progress: 0 tags: [] -due: 2023-11-23T00:00:00.000Z -started: 2023-11-22T00:00:00.000Z +due: 2023-11-22T00:00:00.000Z +started: 2023-11-21T00:00:00.000Z +completed: 2023-12-09T00:00:00.000Z --- # TechOPS: Remove TrueNAS from pfv-stor1 diff --git a/.kanbn/tasks/ukrrs-feed-in-documents-emails-into-the-ukrrs.md b/.kanbn/tasks/ukrrs-feed-in-documents-emails-into-the-ukrrs.md index 4894242..f4c4093 100644 --- a/.kanbn/tasks/ukrrs-feed-in-documents-emails-into-the-ukrrs.md +++ b/.kanbn/tasks/ukrrs-feed-in-documents-emails-into-the-ukrrs.md @@ -1,9 +1,10 @@ --- created: 2023-11-23T15:13:18.662Z -updated: 2023-11-23T22:30:50.587Z +updated: 2023-12-13T17:50:25.184Z assigned: Charles progress: 0 tags: [] +started: 2023-12-13T17:50:25.184Z --- # UKRRS: Feed in documents/emails into the UKRRS diff --git a/.kanbn/tasks/vehicle-maintenance-fix-plastic-panel-on-driver-side-front-door.md b/.kanbn/tasks/vehicle-maintenance-fix-plastic-panel-on-driver-side-front-door.md deleted file mode 100644 index eef782f..0000000 --- a/.kanbn/tasks/vehicle-maintenance-fix-plastic-panel-on-driver-side-front-door.md +++ /dev/null @@ -1,12 +0,0 @@ ---- -created: 2023-11-23T15:17:16.046Z -updated: 2023-11-23T22:30:59.523Z -assigned: Patti -progress: 0 -tags: - - CFOO ---- - -# Vehicle Maintenance: Fix plastic panel on driver side front door - -Perhaps utilize plastic welder? Otherwise go to junk yard and find a new panel/door as needed. diff --git a/.kanbn/tasks/vehicle-maintenance-mount-tahoe-dash-cam.md b/.kanbn/tasks/vehicle-maintenance-mount-tahoe-dash-cam.md deleted file mode 100644 index c680224..0000000 --- a/.kanbn/tasks/vehicle-maintenance-mount-tahoe-dash-cam.md +++ /dev/null @@ -1,11 +0,0 @@ ---- -created: 2023-11-23T15:18:04.650Z -updated: 2023-11-23T22:30:35.587Z -assigned: Patti -progress: 0 -tags: [] ---- - -# Vehicle Maintenance: Mount Tahoe Dash Cam - -Locate/fabricate/purchase mounting hardware for dash cam and install / hook up. diff --git a/.kanbn/tasks/vehicle-maintenance-phone-mount-mazda.md b/.kanbn/tasks/vehicle-maintenance-phone-mount-mazda.md deleted file mode 100644 index ab40be4..0000000 --- a/.kanbn/tasks/vehicle-maintenance-phone-mount-mazda.md +++ /dev/null @@ -1,12 +0,0 @@ ---- -created: 2023-11-23T15:19:17.710Z -updated: 2023-11-23T15:24:54.790Z -assigned: Patti -progress: 0 -tags: - - CFOO ---- - -# Vehicle Maintenance: Phone mount mazda - -Install phone mount to Mazda diff --git a/MigrateTheseItemsIntoKanbn.md b/MigrateTheseItemsIntoKanbn.md index 2da2705..f07f7aa 100644 --- a/MigrateTheseItemsIntoKanbn.md +++ b/MigrateTheseItemsIntoKanbn.md @@ -1,41 +1,45 @@ -- [TSYS Todo List](#tsys-todo-list) +- [TSYS December Todo List](#tsys-december-todo-list) + - [Outreach/personal force multiplier](#outreachpersonal-force-multiplier) - [CIO](#cio) - - [IT System Admin - Communications](#it-system-admin---communications) - - [IT System Admin - Configuration Management](#it-system-admin---configuration-management) - - [IT System Admin - Security/Assurance](#it-system-admin---securityassurance) - - [SWAG/Authelia](#swagauthelia) - - [Internal CA](#internal-ca) - - [Creature comfort setup](#creature-comfort-setup) + - [Technical Operations](#technical-operations) + - [RF Chamber](#rf-chamber) + - [Overview](#overview) + - [Hardware](#hardware) + - [Process](#process) + - [Enclosure](#enclosure) + - [Software](#software) + - [SDR server](#sdr-server) + - [EE](#ee) + - [CNC/3d](#cnc3d) + - [CNC](#cnc) + - [3d printer workflow/ops](#3d-printer-workflowops) + - [Documentation of existing POC](#documentation-of-existing-poc) - [COO](#coo) - [InProgress](#inprogress) - [ERPNEXT](#erpnext) - [Bizops General](#bizops-general) - [Bizops Marketing](#bizops-marketing) - [Follow up on these](#follow-up-on-these) - - [CTO](#cto) - - [PCB Assembly/rework workflow](#pcb-assemblyrework-workflow) - - [PCB Stencil making](#pcb-stencil-making) - - [Reflow Oven](#reflow-oven) - - [Pick N Place Machine](#pick-n-place-machine) - - [Other elements](#other-elements) - - [Environmental chamber](#environmental-chamber) - - [RF Chamber](#rf-chamber) - - [Overview](#overview) - - [Hardware](#hardware) - - [Process](#process) - - [Enclosure](#enclosure) - - [Software](#software) - - [SDR server](#sdr-server) - - [EE](#ee) - - [CNC/3d](#cnc3d) - - [CNC](#cnc) - - [3d printer workflow/ops](#3d-printer-workflowops) - - [Documentation of existing POC](#documentation-of-existing-poc) # TSYS December Todo List +## Outreach/personal force multiplier + +* Setup automations to alert me via pushover to take breaks, drink water, switch locations etc + +* gym bag tweaks / finalization +* IOS Focus modes tweaks +* daily routine support system (IOS app? desktop?) (i want reporting on progress/missing objectives etc) + +* Finish paypal/venmo/cash app/buy me a coffee/patreon/librepay/github sponsors profile/banking setup +* Finish video streaming setup (OpenStreamingPlatform for self host (canonical source) and OBS to a proxy out to YT/FB/Twitch) +* Setup wordpress cross posting to discord/discourse/facebook/linked in/twitter +* Get all contacts consolidated and into Monica CRM + ## CIO +### Technical Operations + - CIO:TechopsGeneral:Get FetchApply setup (port newSrv.sh to it) - CIO:CTOWorkStation:google earth - CIO:CTOWorkstation:flora @@ -61,22 +65,10 @@ - CIO:SecOps:Auth:Setup authelia - CIO:SecOps: Setup Internal CA (offline root CA : use XCA on an airgap workstation and XCA on CA VM with the HSM intermediate device passed through) - CIO:LabSetup:scansnap (on my laptop and lab laptop) - -## CTO - -### PCB Assembly/rework workflow - -#### Pick N Place Machine - -- -- -- -- -- - -Some combination of the above is arriving (currently projected) in March 2022 from a kickstarter campaign. - -#### Other elements +- CIO: Get FetchApply setup (port newSrv.sh to it) (in progress) +- CIO: System / dashboard inventory (merge into handbook) (in progress) +- CIO: pfv-nas-04 (netapp) (racked, powered, console access setup, need to factory reset) +- CIO: UPS (blocked) ### RF Chamber @@ -124,7 +116,7 @@ to categorize -### Software +#### Software - - @@ -133,7 +125,7 @@ to categorize - - -#### SDR server +##### SDR server Idea is to use the raspi4 on the lab bench, with the various SDR/pluto USB radios hung off it and stream the output to the (either/or) upstairs GPU farm or downstairs gpu/cpu server farm for processing. @@ -440,4 +432,4 @@ The winding up of a series shall not affect the litigation of liability of membe ### Follow up on these - -- < \ No newline at end of file +- < diff --git a/VscodeProfiles/TSYSDocs.code-profile b/VscodeProfiles/TSYSDocs.code-profile index a4ed598..1d15b9c 100644 --- 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\ No newline at end of file diff --git a/notesToIngestIntoDendron/AppListOut.md b/notesToIngestIntoDendron/AppListOut.md deleted file mode 100644 index 5400d9d..0000000 --- a/notesToIngestIntoDendron/AppListOut.md +++ /dev/null @@ -1,10 +0,0 @@ -Elmer -7-zip -ActivityWatch -Adobe Acrobat -Android Studio -Apache Directory Studio -Arduino IDE -Audacity -AuoHotkey - diff --git a/notesToIngestIntoDendron/CIO-RDIT-PickNPlace b/notesToIngestIntoDendron/CIO-RDIT-PickNPlace new file mode 100644 index 0000000..65b4ca9 --- /dev/null +++ b/notesToIngestIntoDendron/CIO-RDIT-PickNPlace @@ -0,0 +1,11 @@ +# RdIT: PCB Assembly/rework workflow + +## Pick N Place Machine + +- +- +- +- +- + +Some combination of the above is arriving (currently projected) in March 2022 from a kickstarter campaign. \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/FundNames.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/FundNames.md deleted file mode 100644 index b0dc6d7..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/FundNames.md +++ /dev/null @@ -1,7 +0,0 @@ -# RWSCP - FundNames - -- AvenueG -- TopHatVentures -- Lewis&Clark Expedition -- Boring and Beautiful -- TheCampus diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/VCR 27_Annual 2011_EAPD Final.pdf b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/VCR 27_Annual 2011_EAPD Final.pdf deleted file mode 100644 index 3f8e06e..0000000 Binary files a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/VCR 27_Annual 2011_EAPD Final.pdf and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/K3sReference.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/K3sReference.md deleted file mode 100644 index fd89a65..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/K3sReference.md +++ /dev/null @@ -1,23 +0,0 @@ -## Cluster deployment - -* - -* - -* - -## Monitoring - -* - -* - -## Networking - -* - -## PAAS - -* - -## Storage diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/KNELStack/BizApps.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/KNELStack/BizApps.md deleted file mode 100644 index a543e06..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/KNELStack/BizApps.md +++ /dev/null @@ -1,72 +0,0 @@ -# Business Applications For Deplooyment in Q2 2021 - -* ambar - - - - - -* jupyter hub (lab notebook of the programming kind) - -* elabftw (lab notebook of the writing kind) - -* archivebox - - -* API gateway (TYK) - - - - - - - -(api providers brokered via tyk): - -* billing (killbill) - - - -* erpnext - - - - - - - - - -* reviewboard - - - -* freescout - -* canvaslms - - - -* getgophish (todo internal phishing tests) - -* sipwise - - - -* mailman - - - - - -* hugin - -TBD (need to evaluate and select vendor) - -* incident management/computer aided dispatch - -Resgrid looks really compelling - -* e-sign/contract management system - -* e-voting diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/NitrokeyReset.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/NitrokeyReset.md deleted file mode 100644 index 096a55a..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/NitrokeyReset.md +++ /dev/null @@ -1,19 +0,0 @@ -nitrokey reset - -``` - -/hex - -scd serialno -scd apdu 00 20 00 81 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 81 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 81 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 81 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 83 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 83 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 83 08 40 40 40 40 40 40 40 40 -scd apdu 00 20 00 83 08 40 40 40 40 40 40 40 40 -scd apdu 00 e6 00 00 -scd apdu 00 44 00 00 -/echo card has been reset to factory defaults -``` \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/PenultimateCluster.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/PenultimateCluster.md deleted file mode 100644 index c5bb75b..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/PenultimateCluster.md +++ /dev/null @@ -1,43 +0,0 @@ -# Penultimate Cluster Guide - -## Introduction - -This guide covers how TSYS migrated to a containerized setup. - -## Current Situation Report (Q3 2021) - -This is covered in exhaustive detail in the handbook. So only a high level summary is provided here for context. - -Nothing below (with exception of app layer) changes with the move to containers. - -### Physical Compute - -Proxmox cluster of three (soon to be 5 once hardware is racked and hooked up) nodes. -100% virtualized (with exception of badge reader/stratum 1 GPS time server on a raspberry pi) -Only OS on bare metal is proxmox. We plan to run a k8s distribution in a set of virtual machines. - -### Storage - -Two physical storage arrays (on separate UPS/circuit). -Multiple pools on the arrays - -### Virtual Compute - -We have two opnsense virtual machine (spread across the redundant storage systems) -We have three (soon to be five) database servers (spread across the redundant storage systems) -We have a utility virtual machine (toolbox) and a couple dedicated app machines (sipwise/pihole) - -### Networking - -* Layer 3 to 7 is redundant (opnsense cluster active/passive) -* Layer 1 and 2 is not redundant (though we have the switches on hand to make it redundant) - -### Data/caching Layer - -We run a mix of database/caching solutions to support our application catalog. Memcached/redis , mongodb, mysql/postgresql. These run on a set of 3 (soon to be 5) Ubuntu 20.04 virtual machines. They are fronted by haproxy VIP. - -## Near term plan - -Step 1: Setup dev environment on devws to fully containerize all applications (devilbox, docker on windows, jenkins/gitea/registry,vm with caprover|git-pipe|??) -Step 2: Setup (in dev) all current properties using git repo -> devilbox -> container workflow -Step 3: Setup (in dev) all apps in docker \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/ProxmoxPerfNotes.txt b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/ProxmoxPerfNotes.txt deleted file mode 100644 index f7d8342..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/ProxmoxPerfNotes.txt +++ /dev/null @@ -1,66 +0,0 @@ -root@ns519307:/etc/netdata# hdparm /dev/sd[ab] - -/dev/sda: - multcount = 16 (on) - IO_support = 1 (32-bit) - readonly = 0 (off) - readahead = 8192 (on) - geometry = 243201/255/63, sectors = 3907029168, start = 0 - -/dev/sdb: - multcount = 16 (on) - IO_support = 1 (32-bit) - readonly = 0 (off) - readahead = 8192 (on) - geometry = 243201/255/63, sectors = 3907029168, start = 0 -root@ns519307:/etc/netdata# - - -root@ns519307:/etc/netdata# hdparm /dev/sd[ab] - -/dev/sda: - multcount = 16 (on) - IO_support = 1 (32-bit) - readonly = 0 (off) - readahead = 8192 (on) - geometry = 243201/255/63, sectors = 3907029168, start = 0 - -/dev/sdb: - multcount = 16 (on) - IO_support = 1 (32-bit) - readonly = 0 (off) - readahead = 8192 (on) - geometry = 243201/255/63, sectors = 3907029168, start = 0 -root@ns519307:/etc/netdata# hdparm -Tt /dev/sd[ab] - -/dev/sda: - Timing cached reads: 8086 MB in 2.00 seconds = 4052.66 MB/sec - Timing buffered disk reads: 230 MB in 3.03 seconds = 75.98 MB/sec - -/dev/sdb: - Timing cached reads: 7950 MB in 2.00 seconds = 3984.24 MB/sec - Timing buffered disk reads: 282 MB in 3.10 seconds = 91.05 MB/sec -root@ns519307:/etc/netdata# - - -root@ns519307:~# smartctl -a /dev/sda |grep Rotat -Rotation Rate: 7200 rpm -root@ns519307:~# smartctl -a /dev/sdb |grep Rotat -Rotation Rate: 7200 rpm -root@ns519307:~# - - -https://lonesysadmin.net/2013/12/22/better-linux-disk-caching-performance-vm-dirty_ratio/ - -root@ns519307:~# sysctl -a | grep dirty -sysctl: reading key "kernel.spl.hostid" -vm.dirty_background_bytes = 33554432 -vm.dirty_background_ratio = 0 -vm.dirty_bytes = 1073741824 -vm.dirty_expire_centisecs = 3000 -vm.dirty_ratio = 0 -vm.dirty_writeback_centisecs = 500 -vm.dirtytime_expire_seconds = 43200 - - - diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/Stor2RCA.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/Stor2RCA.md deleted file mode 100644 index 6c87444..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/Stor2RCA.md +++ /dev/null @@ -1,143 +0,0 @@ -# Stor2 Root Cause Analysis - -- [Stor2 Root Cause Analysis](#stor2-root-cause-analysis) - - [Introduction](#introduction) - - [Array information](#array-information) - - [Performance notes](#performance-notes) - - [hdparm](#hdparm) - - [My laptop for comparison](#my-laptop-for-comparison) - - [Possible solution](#possible-solution) - - - -## Introduction - -## Array information - - -root@pfv-stor2:~# zpool list -v rackrental|grep sd|awk '{print $1}'|sed -e 's/[0-9]//g' -sdb -sdd -sdc -sdf -sdg -sde - - -## Performance notes - -### hdparm - -root@pfv-stor2:~# hdparm -tT /dev/sdb - -/dev/sdb: - Timing cached reads: 11244 MB in 1.99 seconds = 5638.34 MB/sec - Timing buffered disk reads: 140 MB in 3.00 seconds = 46.60 MB/sec -root@pfv-stor2:~# - -/dev/sdd: - Timing cached reads: 10952 MB in 1.99 seconds = 5493.70 MB/sec - Timing buffered disk reads: 154 MB in 3.04 seconds = 50.65 MB/sec - -/dev/sdc: - Timing cached reads: 10178 MB in 1.99 seconds = 5102.24 MB/sec - Timing buffered disk reads: 164 MB in 3.06 seconds = 53.52 MB/sec - -/dev/sdf: - Timing cached reads: 11340 MB in 1.99 seconds = 5686.37 MB/sec - Timing buffered disk reads: 142 MB in 3.12 seconds = 45.55 MB/sec - - -/dev/sdg: - Timing cached reads: 9248 MB in 2.00 seconds = 4634.64 MB/sec - Timing buffered disk reads: 18 MB in 3.27 seconds = 5.50 MB/sec - - -/dev/sde: - Timing cached reads: 9976 MB in 1.99 seconds = 5001.87 MB/sec - Timing buffered disk reads: 44 MB in 3.08 seconds = 14.30 MB/sec - - - - - -## My laptop for comparison - -C:\Windows\system32>winsat disk -drive c -Windows System Assessment Tool -> Running: Feature Enumeration '' -> Run Time 00:00:00.00 -> Running: Storage Assessment '-drive c -ran -read' -> Run Time 00:00:00.70 -> Running: Storage Assessment '-drive c -seq -read' -> Run Time 00:00:02.20 -> Running: Storage Assessment '-drive c -seq -write' -> Run Time 00:00:01.89 -> Running: Storage Assessment '-drive c -flush -seq' -> Run Time 00:00:00.53 -> Running: Storage Assessment '-drive c -flush -ran' -> Run Time 00:00:00.50 -> Dshow Video Encode Time 0.00000 s -> Dshow Video Decode Time 0.00000 s -> Media Foundation Decode Time 0.00000 s -> Disk Random 16.0 Read 404.52 MB/s 8.2 -> Disk Sequential 64.0 Read 516.71 MB/s 8.1 -> Disk Sequential 64.0 Write 489.50 MB/s 8.1 -> Average Read Time with Sequential Writes 0.218 ms 8.6 -> Latency: 95th Percentile 0.476 ms 8.7 -> Latency: Maximum 4.490 ms 8.6 -> Average Read Time with Random Writes 0.239 ms 8.8 -> Total Run Time 00:00:05.98 - -C:\Windows\system32>winsat disk -drive d -Windows System Assessment Tool -> Running: Feature Enumeration '' -> Run Time 00:00:00.00 -> Running: Storage Assessment '-drive d -ran -read' -> Run Time 00:00:00.19 -> Running: Storage Assessment '-drive d -seq -read' -> Run Time 00:00:01.70 -> Running: Storage Assessment '-drive d -seq -write' -> Run Time 00:00:01.09 -> Running: Storage Assessment '-drive d -flush -seq' -> Run Time 00:00:00.39 -> Running: Storage Assessment '-drive d -flush -ran' -> Run Time 00:00:00.39 -> Dshow Video Encode Time 0.00000 s -> Dshow Video Decode Time 0.00000 s -> Media Foundation Decode Time 0.00000 s -> Disk Random 16.0 Read 635.27 MB/s 8.4 -> Disk Sequential 64.0 Read 3219.62 MB/s 9.3 -> Disk Sequential 64.0 Write 2230.19 MB/s 9.1 -> Average Read Time with Sequential Writes 0.074 ms 8.9 -> Latency: 95th Percentile 0.443 ms 8.7 -> Latency: Maximum 0.821 ms 8.9 -> Average Read Time with Random Writes 0.104 ms 8.9 -> Total Run Time 00:00:03.89 - -C:\Windows\system32> - -root@pfv-stor2:~# ioping -c 10 /mnt/rackrental -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=1 time=9.31 us (warmup) -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=2 time=27.1 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=3 time=20.1 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=4 time=31.2 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=5 time=22.5 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=6 time=35.0 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=7 time=33.2 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=8 time=29.5 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=9 time=24.8 us -4 KiB <<< /mnt/rackrental (zfs rackrental 1.55 TiB): request=10 time=22.9 us - ---- /mnt/rackrental (zfs rackrental 1.55 TiB) ioping statistics --- -9 requests completed in 246.3 us, 36 KiB read, 36.5 k iops, 142.7 MiB/s -generated 10 requests in 9.00 s, 40 KiB, 1 iops, 4.44 KiB/s -min/avg/max/mdev = 20.1 us / 27.4 us / 35.0 us / 4.87 us - -## Possible solution - -https://blog.westerndigital.com/wd-red-nas-drives/ - -For Users with Workload-intensive Applications and ZFS: CMR - -The explosion of data seen today has spawned a spectrum of NAS uses cases, as well as increasingly demanding applications. One of those includes use of ZFS, an enterprise-grade file system. The increased amount of sustained random writes during ZFS resilvering (similar to a rebuild) causes a lack of idle time for DMSMR drives to execute internal data management tasks, resulting in significantly lower performance reported by users. While we work with iXsystems on DMSMR solutions for lower-workload ZFS customers, we currently recommend our CMR-based WD Red drives, including WD Red Pro and the forthcoming WD Red Plus. \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/TSYSNetworkIssues.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/TSYSNetworkIssues.md deleted file mode 100644 index bcac8ba..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/TSYSNetworkIssues.md +++ /dev/null @@ -1,89 +0,0 @@ - -# TSYS Network Performance Issues - - - -## Introduction - -TSYS Vm performance is sub par. All storage is ZFS exported from NFS - -## Current status - - -## MTU - -``` -root@pfv-stor2:/etc/netplan# ping 10.251.30.21 -c 10 -M do -s 1471 -PING 10.251.30.21 (10.251.30.21) 1471(1499) bytes of data. -1479 bytes from 10.251.30.21: icmp_seq=1 ttl=64 time=0.220 ms -1479 bytes from 10.251.30.21: icmp_seq=2 ttl=64 time=0.195 ms -1479 bytes from 10.251.30.21: icmp_seq=3 ttl=64 time=0.197 ms -1479 bytes from 10.251.30.21: icmp_seq=4 ttl=64 time=0.206 ms -^C ---- 10.251.30.21 ping statistics --- -4 packets transmitted, 4 received, 0% packet loss, time 3073ms -rtt min/avg/max/mdev = 0.195/0.204/0.220/0.009 ms -root@pfv-stor2:/etc/netplan# ping 10.251.30.21 -c 10 -M do -s 1472 -PING 10.251.30.21 (10.251.30.21) 1472(1500) bytes of data. -1480 bytes from 10.251.30.21: icmp_seq=1 ttl=64 time=0.224 ms -^C ---- 10.251.30.21 ping statistics --- -1 packets transmitted, 1 received, 0% packet loss, time 0ms -rtt min/avg/max/mdev = 0.224/0.224/0.224/0.000 ms -root@pfv-stor2:/etc/netplan# ping 10.251.30.21 -c 10 -M do -s 1473 -PING 10.251.30.21 (10.251.30.21) 1473(1501) bytes of data. -^C ---- 10.251.30.21 ping statistics --- -2 packets transmitted, 0 received, 100% packet loss, time 1029ms -``` - -## iperf - -from vm9 (which is where cloudron lives) - -``` -root@pfv-vmsrv-09:~# iperf3 -c 10.251.30.22 -Connecting to host 10.251.30.22, port 5201 -[ 5] local 10.251.30.30 port 41594 connected to 10.251.30.22 port 5201 -[ ID] Interval Transfer Bitrate Retr Cwnd -[ 5] 0.00-1.00 sec 112 MBytes 943 Mbits/sec 9 344 KBytes -[ 5] 1.00-2.00 sec 108 MBytes 902 Mbits/sec 4 362 KBytes -[ 5] 2.00-3.00 sec 110 MBytes 923 Mbits/sec 37 301 KBytes -[ 5] 3.00-4.00 sec 111 MBytes 933 Mbits/sec 20 345 KBytes -[ 5] 4.00-5.00 sec 110 MBytes 923 Mbits/sec 0 437 KBytes -[ 5] 5.00-6.00 sec 108 MBytes 902 Mbits/sec 0 469 KBytes -[ 5] 6.00-7.00 sec 109 MBytes 912 Mbits/sec 22 315 KBytes -[ 5] 7.00-8.00 sec 104 MBytes 870 Mbits/sec 11 195 KBytes -[ 5] 8.00-9.00 sec 97.5 MBytes 818 Mbits/sec 18 313 KBytes -[ 5] 9.00-10.00 sec 111 MBytes 933 Mbits/sec 23 216 KBytes -- - - - - - - - - - - - - - - - - - - - - - - - - -[ ID] Interval Transfer Bitrate Retr -[ 5] 0.00-10.00 sec 1.05 GBytes 906 Mbits/sec 144 sender -[ 5] 0.00-10.04 sec 1.05 GBytes 900 Mbits/sec receiver - -iperf Done. -root@pfv-vmsrv-09:~# - -root@pfv-vmsrv-09:~# ifconfig vmbr0 -vmbr0: flags=4163 mtu 1500 - -Accepted connection from 10.251.30.30, port 41580 -[ 5] local 10.251.30.22 port 5201 connected to 10.251.30.30 port 41594 -[ ID] Interval Transfer Bitrate -[ 5] 0.00-1.00 sec 105 MBytes 878 Mbits/sec -[ 5] 1.00-2.00 sec 108 MBytes 906 Mbits/sec -[ 5] 2.00-3.00 sec 111 MBytes 929 Mbits/sec -[ 5] 3.00-4.00 sec 110 MBytes 919 Mbits/sec -[ 5] 4.00-5.00 sec 111 MBytes 933 Mbits/sec -[ 5] 5.00-6.00 sec 106 MBytes 892 Mbits/sec -[ 5] 6.00-7.00 sec 110 MBytes 921 Mbits/sec -[ 5] 7.00-8.00 sec 104 MBytes 874 Mbits/sec -[ 5] 8.00-9.00 sec 97.4 MBytes 817 Mbits/sec -[ 5] 9.00-10.00 sec 111 MBytes 932 Mbits/sec -[ 5] 10.00-10.04 sec 3.94 MBytes 808 Mbits/sec -- - - - - - - - - - - - - - - - - - - - - - - - - -[ ID] Interval Transfer Bitrate -[ 5] 0.00-10.04 sec 1.05 GBytes 900 Mbits/sec receiver -``` - -### Array storage performance \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/WebServerSetupNotes.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/WebServerSetupNotes.md deleted file mode 100644 index 6a0175a..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefInformationTechnologyOfficer/WebServerSetupNotes.md +++ /dev/null @@ -1,105 +0,0 @@ -# Notes for web server configuration - -These notes capture actions taken to build the www vm around 9/15 to 10/1 2020. - -## packages to install - -* php stuff and other packages needed : - -sudo apt install memcached php7.4 php7.4-mysqli php7.4-fpm php7.4-mbstring php7.4-xml php7.4-imap php7.4-json php7.4-zip php7.4-gd php7.4-curl php7.4-ldap php7.4-gd php7.4-gmp php-par php-apcu jq unzip python3-pip —no-install-recommends - -* Modules for languages from upstream: - -Python: pip3 install certbot-dns-ovh - -## php modications - -### memcache - -root@www:/etc/php/7.4/fpm/conf.d# grep -v ^# 20-memcache.ini - -extension=memcache.so - -[memcache] - -memcache.allow_failover="1" - -memcache.max_failover_attempts="20" - -memcache.default_port="11211" - -memcache.hash_strategy="consistent" - -session.save_handler="memcache" - -session.save_path = 'tcp://10.251.51.1:11211,tcp://10.251.51.2:11211,tcp://10.251.51.3:11211' - -memcache.redundancy=1 - -memcache.session_redundancy=4 - -### fpm (pool) - -### php config - -Timezone - -## apache - -### apache configuration mods needed - --- alter site config for fpm socket to php7.4-fpm (from 7.3) (socket path) - -### apache modules needed - -headers,deflate,rewrite,proxy,proxy_http,ssl,proxy_fcgi,cache_disk - -### apache tweaks performed - -1153 sudo a2dismod mpm_prefork - -1154 sudo a2enmod mpm_event - -1155 sudo apt install libapache2-mod-fcgid - -1156 sudo a2enconf php7.2-fpm - -1157 sudo a2enconf php7.-fpm - -1158 sudo a2enconf php7.4-fpm - -## scripts to load - -newcert.sh - -# !/bin/bash - -certbot certonly \ - ---dns-cloudflare \ - ---dns-cloudflare-credentials /root/cfapi.ini \ - --d $1 - -sandstorm-cert.sh - -certbot certonly --manual --preferred-challenges dns --server --manual-public-ip-logging-ok -d '*.sandstorm.turnsys.com' -d sandstorm.turnsys.com - -## TSYS root ca and UCS DC root cert - -root@www:/usr/local/share/ca-certificates# ls -l - -total 12 - -drwxr-xr-x 2 root root 4096 Sep 28 20:43 extra - -lrwxrwxrwx 1 root root 13 Sep 28 20:44 tsys-root.crt -> tsys-root.pem - --r--r--r-- 1 root root 822 Sep 28 20:43 tsys-root.pem - -lrwxrwxrwx 1 root root 12 Sep 28 20:44 ucs-root.crt -> ucs-root.pem - --rw-r--r-- 1 root root 2094 Sep 28 20:43 ucs-root.pem - -root@www:/usr/local/share/ca-certificates# diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/ECE462_motor lab_Appendix.pdf b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/ECE462_motor lab_Appendix.pdf deleted file mode 100644 index e2100d5..0000000 Binary files a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/ECE462_motor lab_Appendix.pdf and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/lab-safety-guidelines b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/lab-safety-guidelines deleted file mode 100644 index 53f4659..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/lab-safety-guidelines +++ /dev/null @@ -1,397 +0,0 @@ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Lab Safety Guidelines | Electrical and Computer Engineering - - - - - - - - - - - - - - - - - - - -
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  • In case of an emergency, remember that ECE labs have emergency contact and other phone numbers posted near the lab door.  Every ECE lab has a small first-aid kit near the lab entrance.
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  • Report accidents and injuries immediately to T.A. and instructors.
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  • There should always be more than one person in the department’s Power Systems lab.
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  • Wear safety glasses when cutting wires, trimming component leads and soldering.
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  • If you are new to soldering, look at several of the many tutorials on soldering on YouTube: -
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  • Do not touch the tip of a soldering iron to find out if it is hot.
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  • Do not melt a ball of solder on the soldering iron tip and then move the tip over to the joint you want to solder.  If the ball of solder drops, you will have molten droplets of solder splattering.
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  • When soldering, use a fume extractor to remove and filter the fumes.  Here is a YouTube video on solder fumes: www.youtube.com/watch?v=KVaN3vTXY9E.  
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  • Some oscilloscope inputs are floating, meaning they are completely isolated from the mains power supply.   For these oscilloscopes one can safely make measurements on the main power supply. Other oscilloscopes may have their ground connection connected to the mains power supply.  Consequently, one has to be very careful with these oscilloscopes when making measurements on the main power supply, otherwise one may inadvertently create a short.  For a particular oscilloscope one may not know how the oscilloscope ground is connected, so a good rule to follow is to avoid making measurements on the mains power supply with an oscilloscope.   The safest method is to us an isolation transformer.
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  • Some components can explode, burst into flames and get hot, so be careful -
    • Electrolytic capacitors are polarized, which means they have a “++ side and a “-“ side.  They can burst open or even explode when they are place in a circuit incorrectly.  See for example:www.youtube.com/watch?v=jnPQCZ0Sfsg.  Tantalum electrolytic capacitors (if used incorrectly) can cause fire.  See www.youtube.com/watch?v=sW0a9d_vWoc. 
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    • Never exceed the voltage rating for electrolytic capacitors, as they may explode.  See for example www.youtube.com/watch?v=_WheLp0RdLQ
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    • Some LEDs can “pop” or burst open and even catch fire if they are used without current-limiting resistors or the current-limiting resistor is too small.  See www.youtube.com/watch?v=ZXEZtePxa0U
      • -
    • Some components in a circuit can get quite hot even though they are functioning properly.  For example, linear voltage regulator ICs is often bolted to heat sink to cool them down.  Without a heat sink some of these ICs will get hot enough to cause severe burns.
      • -
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- UNIVERSITY of PENNSYLVANIA -
- Department of Electrical and Systems Engineering -

ESE171: Principles of Digital Design Laboratory - -

 

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Spring 2015 - - -

 

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Lab Safety

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- - Acquaint yourself with the location of the following safety items within - the lab. -
  -
    -
  1. -  Fire extinguisher
    2. - -
  2. -  First aid kit
    3. - -
  3. -  Telephone and emergency numbers : Make sure that you have handy emergency - phone numbers to call for assistance if necessary. The number for  - emergencies is on campus is 511. (No need to dial 8 for this number). - If any safety questions arise, consult the lab instructor or staff for - guidance and instructions.
    4. -
- -


Observing proper safety precautions is important when working in - the laboratory to prevent harm to yourself or others. The most common hazard - is the electric shock which can be fatal if one is not careful. -

- Electric shock

- Shock is caused by passing an electric current through the human body. - The severity depends mainly on the amount of current and is less function - of the applied voltage. The threshold of electric shock is about 1 mA which - usually gives an unpleasant tingling. For currents above 10 mA, severe - muscle pain occurs and the victim can't let go of the conductor due to - muscle spasm. Current between 100 mA and 200 mA (60 Hz AC) causes ventricular - fibrillation of the heart and is most likely to be lethal. -

What is the voltage required for a fatal current to flow? This depends - on the skin resistance. Wet skin can have a resistance as low as 150 Ohm - and dry skin may have a resistance of 15 kohm. Arms and legs have a resistance - of about 100 Ohm and the trunk 200 Ohm. This implies that 110 V can cause - about 160 mA to flow in the body if the skin is wet and thus be fatal. - In addition skin resistance falls quickly at the point of contact, so it - is important to break the contact as quickly as possible to prevent the - current from rising to lethal levels. -

 

-

Equipment grounding -

Electric instruments and appliances have equipment cases that are electrically - insulated from the wires that carry the power. The isolation is provided - by the insulation of the wires as shown in the figure a below. However, - if the wire insulation gets damaged and makes contact to the case, the - case will be at the high voltage supplied by the wires. If the user touches - the instrument he or she will feel the high voltage. If, while standing - on a wet floor, a user simultaneously comes in contact with the instrument - case and a pipe or faucet connected to ground, a sizable current can flow - through him or her, as shown in Figure b. However, if the case is connected - to the ground by use of a third (ground) wire, the current will flow from - the hot wire directly to the ground and bypass the user as illustrated - in figure c. -

-

shockimage
- Equipment with a three wire cord is thus much safer to use. The ground - wire (3rd wire) which is connected to metal case, is also connected to - the earth ground (usually a pipe or bar in the ground) through the wall - plug outlet. -

Safety Precautions -
  -

    -
  • - -Do not work alone while working with high voltages or if you are using - electrically operated machinary like a drill.
    • - -
  • - -Never leave high voltages on when you are not present.
    • - -
  • - -Keep one hand in your pocket when probing high voltage circuits or discharging - capacitors.
    • - -
  • - -Make sure all high voltage connections are adequately taped or otherwise - insulated to prevent accidental contact by you or neighboring students.
    • - -
  • -  -After switching power off, discharge any capacitors that were in - the circuit. Do not trust supposedly discharged capacitors. Certain types - of capacitors can  build up a residual charge after being discharged. - Use a shorting bar across the capacitor, and keep it connected until ready - for use.
    • - -
  • - -If you use electrolytic capacitors, do not
    • - -
  • -
      -
    • - put excessive voltage across them
      • - -
    • - put ac across them
      • - -
    • - connect them in reverse polarity
      • -
    -
    • - -
  • - -Take extreme care  using tools that can cause short circuits if accidental - contact is made to other circuit elements. Only tools with insulated handles - should be used.
    • - -
  • - -If a person comes in contact with a high voltage, immediately shut off - power. Do not attempt to remove a person in contact with a high voltage - unless you are insulated from them.
    • - -
  • - -In the event of an electrical fire do not use water. The lab fire extinguishers - are specifically charged for electrical fires. Vacate the lab and close - the door. Do not breath toxic smoke or fumes. Ring the fire alarm, if one - is available.
    • - -
  • -  -Check wire current carrying capacity if you will be using high currents. - The lab power wiring can only handle 15 Amperes continuously.
    • - -
  • - -Make sure your leads are rated to withstand the voltages you are using. - This includes instrument leads.  Common wire insulation is rated for - 600 Volts.
    • - -
  • - -Avoid simultaneous touching of any metal chassis used as an enclosure - for your circuits and any pipes in the laboratory that may make contact - with the earth, such as a water pipe. Use a floating voltmeter to measure - the voltage from ground to the chassis to see if a hazardous potential - difference exists.
    • - -
  • - -Make sure that the lab instruments are at ground potential by using the - ground terminal supplied on the instrument.
    • -
- -

 

-
-
- Back to the ESE171 homepage - - - diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/safety.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/safety.md deleted file mode 100644 index 4efcbd6..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/safety.md +++ /dev/null @@ -1,108 +0,0 @@ -**Lab Safety** - - -**Acquaint yourself with the location of the following safety items -within the lab.** -  - -1.  Fire extinguisher -2.  First aid kit -3.  Telephone and emergency numbers : Make sure that you have handy - emergency phone numbers to call for assistance if necessary. The - number for  emergencies is on campus is **511**. (No need to dial 8 - for this number). If any safety questions arise, consult the lab - instructor or staff for guidance and instructions. - -\ -Observing proper safety precautions is important when working in the -laboratory to prevent harm to yourself or others. The most common hazard -is the electric shock which can be fatal if one is not careful. - -### Electric shock - -Shock is caused by passing an electric current through the human body. -The severity depends mainly on the amount of current and is less -function of the applied voltage. The threshold of electric shock is -about 1 mA which usually gives an unpleasant tingling. For currents -above 10 mA, severe muscle pain occurs and the victim can\'t let go of -the conductor due to muscle spasm. Current between 100 mA and 200 mA (60 -Hz AC) causes ventricular fibrillation of the heart and is most likely -to be lethal. - -What is the voltage required for a fatal current to flow? This depends -on the skin resistance. Wet skin can have a resistance as low as 150 Ohm -and dry skin may have a resistance of 15 kohm. Arms and legs have a -resistance of about 100 Ohm and the trunk 200 Ohm. This implies that 110 -V can cause about 160 mA to flow in the body if the skin is wet and thus -be fatal. In addition skin resistance falls quickly at the point of -contact, so it is important to break the contact as quickly as possible -to prevent the current from rising to lethal levels. - -  - -Equipment grounding - -Electric instruments and appliances have equipment cases that are -electrically insulated from the wires that carry the power. The -isolation is provided by the insulation of the wires as shown in the -figure a below. However, if the wire insulation gets damaged and makes -contact to the case, the case will be at the high voltage supplied by -the wires. If the user touches the instrument he or she will feel the -high voltage. If, while standing on a wet floor, a user simultaneously -comes in contact with the instrument case and a pipe or faucet connected -to ground, a sizable current can flow through him or her, as shown in -Figure b. However, if the case is connected to the ground by use of a -third (ground) wire, the current will flow from the hot wire directly to -the ground and bypass the user as illustrated in figure c. - -![shockimage](shock.gif){width="423" height="331"} - -Equipment with a three wire cord is thus much safer to use. The ground -wire (3rd wire) which is connected to metal case, is also connected to -the earth ground (usually a pipe or bar in the ground) through the wall -plug outlet. - -**Safety Precautions**\ -  - -- -Do not work alone while working with high voltages or if you are - using electrically operated machinary like a drill. -- -Never leave high voltages on when you are not present. -- -Keep one hand in your pocket when probing high voltage circuits or - discharging capacitors. -- -Make sure all high voltage connections are adequately taped or - otherwise insulated to prevent accidental contact by you or - neighboring students. --  -After switching power off, discharge any capacitors that were in - the circuit. Do not trust supposedly discharged capacitors. Certain - types of capacitors can  build up a residual charge after being - discharged. Use a shorting bar across the capacitor, and keep it - connected until ready for use. -- -If you use electrolytic capacitors, do not -- - put excessive voltage across them - - put ac across them - - connect them in reverse polarity - -- -Take extreme care  using tools that can cause short circuits if - accidental contact is made to other circuit elements. Only tools - with insulated handles should be used. -- -If a person comes in contact with a high voltage, immediately shut - off power. Do not attempt to remove a person in contact with a high - voltage unless you are insulated from them. -- -In the event of an electrical fire do not use water. The lab fire - extinguishers are specifically charged for electrical fires. Vacate - the lab and close the door. Do not breath toxic smoke or fumes. Ring - the fire alarm, if one is available. --  -Check wire current carrying capacity if you will be using high - currents. The lab power wiring can only handle 15 Amperes - continuously. -- -Make sure your leads are rated to withstand the voltages you are - using. This includes instrument leads.  Common wire insulation is - rated for 600 Volts. -- -Avoid simultaneous touching of any metal chassis used as an - enclosure for your circuits and any pipes in the laboratory that may - make contact with the earth, such as a water pipe. Use a floating - voltmeter to measure the voltage from ground to the chassis to see - if a hazardous potential difference exists. -- -Make sure that the lab instruments are at ground potential by using - the ground terminal supplied on the instrument. diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/stage/TSYS-rANDdShopManual.md b/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/stage/TSYS-rANDdShopManual.md deleted file mode 100644 index 04fe8ff..0000000 --- a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/tsysShopmanual/stage/TSYS-rANDdShopManual.md +++ /dev/null @@ -1,117 +0,0 @@ -# TSYS Shop Manual - -## Introduction - -Welcome to the TSYS Shop. TSYS Group has built the shop to further it's various components R&D operations. In the spirit of giving back, it makes the shop available -on an invite only basis to members of the community under a mix of free, (low/at)cost, for-profit basis. - -This manual covers everything related to the shop and is the definitive policy/procedure/process guide for all shop operations. - -All users of the shop must read the manual in it's entirety before utilzing any of the shop resources. - - -## Safety - -### Sources - -* https://www.engr.colostate.edu/ECE462/ECE462_motor%20lab_Appendix.pdf -* https://ece.engineering.uiowa.edu/resources/lab-safety-guidelines -* https://www.osha.gov/laws-regs/regulations/standardnumber/1910/1910.266AppA -* https://www.seas.upenn.edu/~ese171/general/safety.html -* https://ehs.uconn.edu/emergency/lab-accidentfirst-aid-information/# - -### Overview - -**Acquaint yourself with the location of the following safety items -within the shop.** - -* Fire extinguisher (located by roll up garage door) - -* First aid kit (located by roll up garage door) (next to fire extinguisher) - -* Telephone and emergency numbers : They are located in a laminated contact sheet -above the work bench by the back door of the garage (right above the cordless phone) -The number for emergencies in the lab (or anywhere on TSYS grounds) is **511**. (No need to dial 9 for this number). - -* Please do not call 911 from your cellular phone, as this will delay emergency response. Please use the cordless phone in the shop. - -* If any safety questions arise, consult the senior management team / most senir manager on site for guidance and instructions. - -Observing proper safety precautions is important when working in the -shop to prevent harm to yourself or others. The most common hazard -is electric shock which can be fatal if one is not careful. - -### Electric shock - -Shock is caused by passing an electric current through the human body. -The severity depends mainly on the amount of current and is less -a function of the applied voltage. - -The threshold of electric shock is about 1 mA which usually gives an unpleasant tingling. For currents above 10 mA, severe muscle pain occurs and the victim -can't let go of the conductor due to muscle spasm. - -Current between 100 mA and 200 mA (60 Hz AC) causes ventricular fibrillation of the heart and is most likely to be lethal. - -What is the voltage required for a fatal current to flow? This depends -on the skin resistance. Wet skin can have a resistance as low as 150 Ohm -and dry skin may have a resistance of 15 kohm. Arms and legs have a -resistance of about 100 Ohm and the trunk 200 Ohm. This implies that 110 -V can cause about 160 mA to flow in the body if the skin is wet and thus -be fatal. In addition skin resistance falls quickly at the point of -contact, so it is important to break the contact as quickly as possible -to prevent the current from rising to lethal levels. - -### Equipment grounding - -Electric instruments and appliances have equipment cases that are -electrically insulated from the wires that carry the power. The -isolation is provided by the insulation of the wires as shown in the -figure a below. However, if the wire insulation gets damaged and makes -contact to the case, the case will be at the high voltage supplied by -the wires. If the user touches the instrument he or she will feel the -high voltage. If, while standing on a wet floor, a user simultaneously -comes in contact with the instrument case and a pipe or faucet connected -to ground, a sizable current can flow through him or her, as shown in -Figure b. However, if the case is connected to the ground by use of a -third (ground) wire, the current will flow from the hot wire directly to -the ground and bypass the user as illustrated in figure c. - -![shockimage](shock.gif){width="423" height="331"} - -Equipment with a three wire cord is thus much safer to use. The ground -wire (3rd wire) which is connected to metal case, is also connected to -the earth ground (usually a pipe or bar in the ground) through the wall -plug outlet. - -### **Safety Precautions** - - -* Do not work alone while working with high voltages or if you are - using electrically operated machinary like a drill. - -* Never leave high voltages on when you are not present. -* Never leave anything with a switch on when you are not present (with exception of overhead lights if leaving for a short time) -* Keep one hand in your pocket when probing high voltage circuits or discharging capacitors. -* Make sure all high voltage connections are adequately taped or otherwise insulated to prevent accidental contact by you or neighboring personnel. -* After switching power off, discharge any capacitors that were in the circuit. Do not trust supposedly discharged capacitors. Certain types of capacitors can  build up a residual charge after being discharged. Use a shorting bar across the capacitor, and keep it connected until ready for use. -* If you use electrolytic capacitors, do not: - - * put excessive voltage across them - * put ac across them - * connect them in reverse polarity - -* Take extreme care  using tools that can cause short circuits if accidental contact is made to other circuit elements. Only tools with insulated handles should be used. -* If a person comes in contact with a high voltage, immediately shut off power. You can use the master power switches by the back door of the shop. Do not attempt to remove a person in contact with a high voltage unless you are insulated from them. -* In the event of an electrical fire : - * do not use water. The shop fire extinguishers are specifically charged for electrical fires. - * Turn off the master power switches and vacate the shop (using an exit not in path of the fire) and close the doors. If safe todo so, use the cordless phone to dial 511 (and take the phone with you as you exit) - * Do not breath toxic smoke or fumes. - -* Check wire current carrying capacity if you will be using high currents. The shop power wiring can only handle 15 Amperes continuously. -* Make sure your leads are rated to withstand the voltages you are using. This includes instrument leads.  Common wire insulation is rated for 600 Volts. -* Avoid simultaneous touching of any metal chassis used as an enclosure for your circuits and any pipes in the shop that may make contact with the earth, such as a water pipe. Use a floating voltmeter to measure the voltage from ground to the chassis to see if a hazardous potential difference exists. -* Make sure that the shop instruments are at ground potential by using the ground terminal supplied on the instrument. - -## Shop Inventory - -## Shop Capabilities \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/ChiefMarketingOfficer/BusinessSalesAndLeadership.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/ChiefMarketingOfficer/BusinessSalesAndLeadership.md deleted file mode 100644 index 74f3ab6..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/ChiefMarketingOfficer/BusinessSalesAndLeadership.md +++ /dev/null @@ -1,31 +0,0 @@ -# business Sales and leadership - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -``` -The pitch in their email is "plug & play SaaS analytics tool". -This pitch tells me nearly nothing. It doesn't say what I would use it -for, what benefits it offers, how it stands compared to other solutions -on the market, or even any details about what platform(s) it supports. -So basically unless I happen to currently have no solution and am -actively looking for one, then I don't care. Which I would guess is -about 99.999% of the people who received their email. -``` diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/DailyStandup/2022/04/14.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/DailyStandup/2022/04/14.md deleted file mode 100644 index 86dd152..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/DailyStandup/2022/04/14.md +++ /dev/null @@ -1,46 +0,0 @@ - -This post is updated at 08:14 on 4/14/2022 . It is the current HUD and sole focus till completed. - -## Things accomplished yesterday - -* VM7 provisioned, joined to proxmox cluster, running vm work loads -* Got pfv-r1tor-sw02 on net , fixed NTP/syslog on switches that were already on net -* Tweaked ecobee setup for the house, still trying to find optimal temperature -* Started (re)(building|connecting) with previous TSYS affiliated folks in hopes of (re)rounding out R&D team (not that oore IT is settling down nicely) -* Lots of progress on forward/reverse DNS, librenms/netdata -* Added markdown plugin to this wordpress install -* Finished tweaking IOS focus mode automation/schedule -* Made this TODO HUD and executing against it as quickly as possible - -## Things to finish by 08:00 04/16/2022 - -### Techops things: - -These are items for which @ReachableCEO is the Directly Responsible Individual and once completed allow him to exit techops critical path (handing over to the wonderful Technical Operations team he has put together) - -* VM8 (in progress, monitor goes blank after starting proxmox install, need to swap monitor potentially?) -* pfv-nas-01 (wd) (in progress, completed initial setup, need to finish patching and make available to the pfv-vmsrv farm for use) -* pfv-dc-04 provision -* get tsys-dc-01[-04] on the air (to facilitate migrating off of them to new domain controllers/forest) - -* All systems reporting in to netdata (in progress) -* All systems green in librenms (in progress) -* System / dashboard inventory (merge into handbook) (in progress) -* IT task list (backlog) in gitea (in progress) -* SRE task list (backlog) in gitea (in progress) - -* pfv-nas-02 (netapp) (racked, powered, console access setup, need to factory reset) -* UPS (blocked) -* Get FetchApply setup (port newSrv.sh to it) (in progress) - -### CEO force multiplier / foundational things (Tenacity/velocity/focus): - -* Setup automations to alert me via pushover to take breaks, drink water, switch locations etc -* Finish paypal/venmo/cash app/buy me a coffee/patreon/librepay/github sponsors profile/banking setup -* Finish video streaming setup (OpenStreamingPlatform for self host (canonical source) and OBS to a proxy out to YT/FB/Twitch) -* Setup wordpress cross posting to discord/discourse/facebook/linked in/twitter -* IOS Focus modes tweaks (done) -* IOS Fabulous app adjustments (daily routine support system) -* gym bag tweaks / finalization -* consolidating personal / business overhead todo lists -* Get all contacts consolidated and into CRM \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/Customer_Service_Contact_List (3).doc b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/Customer_Service_Contact_List (3).doc deleted file mode 100644 index 6d3c3aa..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/Customer_Service_Contact_List (3).doc and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/Negotiations_Req_Form (2).doc b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/Negotiations_Req_Form (2).doc deleted file mode 100644 index 303d33d..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/Negotiations_Req_Form (2).doc and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9512056.rtf b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9512056.rtf deleted file mode 100644 index 5267eb3..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9512056.rtf +++ /dev/null @@ -1,19 +0,0 @@ -{\rtf1\ansi \deff0{\fonttbl{\f0\froman\fcharset0 Times New Roman;}{\f1\fmodern Courier New;}} -{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255;\red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue127;\red0\green127\blue127;\red0\green127\blue0;\red127\green0\blue127;\red127\green0\blue0;\red127\green127\blue0;\red127\green127\blue127;\red192\green192\blue192;} -{\stylesheet{\f0\fs20\lang1033 \snext0 Normal;}} -\paperw12240\paperh15840\margl1296\margr1296\margt1440\margb1440\gutter0 \widowctrl\ftnbj -\f1 \fs20 PRINT DOC REQUESTED: MAY 4, 1998 100E67\par 1 DOCUMENT PRINTED\par 74 PRINTED PAGES\par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par SEND TO: WILLIAMS, KALE\par CALIFORNIA PUBLIC UTILITIES COMM.\par LEGAL DIVISION\par 505 VAN NESS AVENUE, ROOM 2204\par SAN FRANCISCO CALIFORNIA 94102-3298\par \par \par \par **********************************03513********************************** \par \pard -\page DATE: MAY 4, 1998\par \par CLIENT: CPUC\par LIBRARY: STATES\par FILE: CAPUC\par \par \par YOUR SEARCH REQUEST IS:\par DECISION NO. 95-12-056\par \par NUMBER OF DECISIONS FOUND WITH YOUR REQUEST THROUGH:\par LEVEL 1... 2 \f1 \par \page \f0 \fs20 \li000\ri000 \pard -\qc Order Instituting Rulemaking on the Commission's Own Motion\par \qc Into Competition for Local Exchange Service; Order\par \qc Instituting Investigation on the Commission's Own Motion\par \qc into Competition for Local Exchange Service\par \par \pard -\qc Decision No. 95-12-056, Rulemaking No. 95-04-043 (Filed\par \qc April 26, 1995), Investigation No. 95-04-044 (Filed April\par \qc 26, 1995)\par \par \pard -\qc California Public Utilities Commission\par \par \pard -\qc 1995 Cal. PUC LEXIS 966; 63 CPUC2d 700\par \par \pard -\qc December 20, 1995\par \par \pard -PANEL: \'5B*1\'5D \par\par Daniel Wm. Fessler, President; P. Gregory Conlon, Jessie J. Knight, Jr., Henry M. Duque, Josiah L. Neeper, Commissioners \par\par\pard - INTERIM OPINION \par\par I. Introduction and Scope \par\par By this decision, we continue the implementation of competition in all California telecommunications markets with the adoption of further interim rules governing local exchange competition within the market territories of Pacific Bell (Pacific) and GTE California (GTEC). The interim rules adopted in this decision cover the issues designated as Phase I of this proceeding and supplement the initial rules for local exchange competition adopted in July 1995 in Decision (D.) 95-07-054. \par\par The rules we adopt today will enable certificated competitive local carriers (CLCs) to enter into interconnection arrangements for local exchange service effective January 1, 1996. The Phase I rules addressed in this decision relate principally to interconnection and related features required by facilities-based CLCs, and to certain other entry-related issues. In a companion decision being issued today in this docket, an initial batch of CLC Petitions for authority to offer competitive local exchange service within the service \'5B*2\'5D territories of Pacific and GTEC are being approved to become effective January 1, 1996. Those certificated CLCs shall be subject to the adopted rules specified in this order. We expect to issue a decision in early February 1996 adopting initial rates for interim number portability (INP). n1 We intend to adopt further rules governing local exchange competition by March 1, 1996, the date we have established for initiating resale competition. \par\par n1 By unanimous assent among the active parties, the ALJ adjusted the scheduling of hearings on INP pricing issues consolidating them into a single phase for a decision on INP pricing scheduled for early 1996. \par\par The rules allow for subsequent revision, if warranted, in response to changing market conditions or additional experience with their application. Accordingly, we stress that the rules we adopt are interim in nature and will serve to initiate the opening of the local exchange market to competition. We will entertain subsequent modifications if it becomes apparent that the rules are not working as intended or fail to achieve our stated goals. \par\par In this decision, we provide LECs and CLCs with guidance on the content of interconnection agreements, \'5B*3\'5D establish an expedited approval process, and design a streamlined dispute resolution process. These three steps address concerns of both the LECs and CLCs that interconnection agreements may be difficult to establish and that the negotiating power of the parties to the contract may not be even. Our stated goal of promoting economically efficient, timely and fairly balanced interconnection between CLCs and LECs leads us to adopt preferred outcomes that we strongly encourage parties to consider in their own negotiations. While we will entertain contracts that deviate from the preferred outcomes, parties will bear the burden of proving the deviations lead to more economic and/or efficient outcomes and are in the public interest. The expedited review process balances our need to reject contracts that are not in the public interest with our goal of not impeding competition. The review process is only available for interconnection at this time, as described below. As the Commission resolves policy and factual disputes regarding other services CLCs may need to promote local competition, we may allow those services to be submitted for review under the expedited process. Finally, the dispute \'5B*4\'5D resolution process we adopt today will provide all parties to a contract with an expeditious forum to address their concerns before and after a contract is signed. This process should allow the parties to receive maximum guidance from the Commission without jeopardizing their due process rights. \par\par II. Procedural Background \par\par In our November 1993 report entitled Enhancing California's Competitive Strength: A Strategy for Telecommunications Infrastructure (Infrastructure Report), we stated our intention of opening all telecommunications markets to competition by January 1, 1997. The California Legislature subsequently adopted Assembly Bill 3606 (Ch. 1260, Stats. 1994), similarly expressing legislative intent to open all telecommunications markets to competition by January 1, 1997. \par\par By issuance of D.94-12-053, we formally adopted a procedural plan to implement our stated goals. As part of that procedural plan, we instituted R.95-04-043/I.95-04-044 in which proposed interim rules were issued for comment on April 26, 1995. Following receipt and review of filed comments, we issued D.95-07-054, adopting initial rules in certain limited areas sufficient to enable prospective CLCs to \'5B*5\'5D file petitions for authority to enter the local exchange market by January 1, 1996. These adopted rules were set forth in Appendices A and B of D.95-07-054. \par\par Following issuance of D.95-07-054, the assigned administrative law judge (ALJ) established a procedural schedule dividing the proceeding into three phases. Phase I addresses the issues requiring resolution in order to institute facilities-based competition by January 1, 1996. This decision resolves those Phase I issues. Phase II issues which address bundled resale competition are scheduled to be resolved by March 1, 1996. Phase III will address any remaining unresolved local competition issues. \par\par As determined in D.95-07-054, certain issues in this docket were to be resolved through evidentiary hearings while remaining issues were to be resolved through a combination of technical workshops and written comments. Since the issues resolved in this Phase I decision are of a rulemaking nature, no evidentiary hearings were held. n2 Written comments on the Phase I issues addressed in this decision were filed by Pacific, GTEC, the California Telecommunications Coalition (Coalition), n3 the Commission's Division of Ratepayer Advocates \'5B*6\'5D (DRA), Citizens Utilities Company (Citizens), Public Advocates, n4 Utility Consumer Action Network (UCAN), and the Federal Executive Agencies (FEA). Technical workshops and follow-up reports were also prepared and served on the issues of interconnection, E-911, the DEAF program and GO 133-B. We have carefully reviewed filed comments and workshop findings in arriving at our opinion as outlined below. \par\par n2 As indicated in footnote 1, the hearing issue of interim number portability pricing at direct embedded cost, previously scheduled for Phase I was rescheduled to allow for a separate decision in early 1996. \par\par n3 The members of the Coalition include AT&T Communications of California; California Association of Long Distance Telephone Companies; California Cable Television Association; California Payphone Association; MCI Telecommunications Corp.; Teleport Communications Group; Time Warner AxS of California, L.P.; and Toward Utility Rate Normalization. \par\par n4 Public Advocates represents the Southern California Leadership Conference, National Council of La Raza, Korean Youth and Community Center, Filipinos for Affirmative Action, and Filipino Civil Rights Advocates. \par\par III. Interconnection \'5B*7\'5D Rules \par \par A. Introduction \par\par The initiation of facilities-based competition requires that CLCs be able to interconnect their network facilities to those of an incumbent LEC so that customers' calls can be routed and completed between two competing carriers. In our proposed rules issued for comment on April 26, 1995, we included a section dealing with interconnection issues (see proposed rules, Appendix A, Section 8). The proposed interconnection rules addressed issues relating to the parties' respective rights and obligations with respect to the location and number of points of interconnection. The rules also addressed the rights and obligations to construct and maintain interconnecting facilities. Comments on the proposed interconnection rules were received May 24, 1995. \par\par The May 24 comments revealed considerable disagreement regarding the proposed rules. While the Coalition generally favored the approach set forth in the proposed rules, i.e., requiring LECs to interconnect with CLCs at any points specified by the CLCs, Pacific argued that LECs and CLCs should each be able to specify the points of interconnections (POIs). GTEC and DRA argued that there should be mutual agreement \'5B*8\'5D on interconnection POIs. \par\par Following review of parties' May 24 filed comments as well as oral arguments presented at a June 9 Full Panel Hearing, we developed a plan for further rulemaking with respect to interconnection issues in D.95-07-054. Accordingly, in D.95-07-054, we developed a timetable for facilities-based competitors to be able to enter the local exchange market and directed Pacific and GTEC to file proposed interconnection tariffs for parties' comment. Resolution of disputes over our April 26 proposed interim rules for interconnection was scheduled to be resolved by January 1, 1996, to allow opportunity for parties to comment on the LECs' proposed tariffs. \par\par In the initial rules adopted in D.95-07-054, we mandated that local exchange networks should be interconnected so that customers of any local exchange carrier can seamlessly receive calls that originate on another local exchange carrier's network and place calls that terminate on another local carrier's network without dialing extra digits. We gave latitude to parties to enter into their own interconnection agreements subject to Commission approval. Parties were encouraged to negotiate mutual arrangements for interconnection \'5B*9\'5D until more detailed interconnection rules were established under Phase I of the proceeding. \par\par In the initial interim rules adopted in D.95-07-054, we adopted a \'22bill-and-keep\'22 approach for dealing with call termination between the LECs and CLCs as an interim measure to become effective January 1, 1996. We directed that evidentiary hearings would be conducted on the issue of compensation for call termination later in the proceeding. \par\par To provide parties an opportunity to comment on the remaining unresolved disputes regarding the terms and conditions of interconnection, the assigned ALJ solicited additional comments on these unresolved issues. We stated that any interim interconnection agreements reached between parties would not be invalidated by the adoption of subsequent rules. \par\par Prospectively, we shall reserve the right to adopt rules for local exchange competition which may have the effect of superseding the terms of certain interconnection contracts. We shall direct parties to include a standard clause in their interconnection contracts that its terms are subject to modification by the Commission. We anticipate that Commission rules would result in modification of contracts only \'5B*10\'5D in extreme cases, and only after due notice and opportunity to be heard. In any case, a carrier's failure to abide by Commission rules may result in revocation of its certificate authority. \par\par Further comments regarding proposed rules for interconnection were filed by parties. \par\par Pacific and GTEC also filed proposed interconnection tariffs on September 18, 1995 for comment. Informal meetings were held between CACD and various parties to discuss and clarify the proposed LEC tariffs. A technical workshop on interconnection issues was held November 28. We have carefully reviewed parties' filed comments regarding interconnection rules and the proposed LEC interconnection tariffs and have taken them into account in the interim rules adopted in this order. \par \par B. Technical Issues \par\par 1. Should Interconnection Arrangements be Instituted Via Contract or Tariff \par\par a. Parties' Positions \par\par The parties hold differing underlying beliefs regarding the proper vehicle for entering into interconnection arrangements for competitive local exchange service. Pacific and DRA believe that a tariffing process should be used as the basis for interconnection. GTEC, Citizens, and the Coalition believe \'5B*11\'5D that mutual negotiation through contract is a more useful vehicle. \par \par Pacific \par\par Pacific proposes to offer CLC interconnection under tariff. Pacific filed a partial version of its proposed interconnection tariff on September 18, 1995. On November 22, 1995, Pacific filed supplemental tariff sections to complete its September 18 filing. Pacific designates its tariff offering as Local Interconnection Serving Arrangement (LISA). Pacific claims that the LISA tariff would allow Pacific and CLCs to interconnect effective January 1, 1996 so as to allow each company to engineer its own network independently, recover their respective costs of interconnection, and cooperate with each other to minimize expenses. Under Pacific's proposal, a CLC would initiate an order for interconnection service through Pacific's mechanized ordering interface, the Carrier Enhanced System for Access Requests (CESAR). The LISA tariff offers a trunk-switched network interconnection between a CLC network POI and Pacific's access tandem or end office. LISA also provides for transmission facilities, tandem switching, end office switching, interexchange access, and end user termination functions to complete telephone \'5B*12\'5D calls between CLC and Pacific customers and other common carriers connected to Pacific's tandem switching network. Operator-to-Operator connectivity for Busy Line Verify and Emergency Interrupt Service is also covered under LISA. \par\par Pacific recommends that its proposed tariff be adopted in full by the Commission. If the Commission requires significant changes to LISA, Pacific claims that the January 1, 1996 implementation date for LISA may have to be adjusted. Pacific states that it must also be able to purchase interconnection service from CLCs beginning January 1, 1996, so that its customers may complete calls to CLC customers. Pacific recommends that the CLCs serve their proposed interconnection tariffs as soon as possible so that issues associated with the CLCs' proposed services may be addressed prior to the commencement of local exchange competition on January 1, 1996. \par \par GTEC \par\par In compliance with the August 18, 1995 ALJ Ruling, GTEC filed its proposed interconnection tariff. GTEC believes its proposed tariffs comply with the Commission's rules, are reasonable and flexible, and should be approved by the Commission if a tariffing approach to interconnection is adopted. GTEC \'5B*13\'5D believes, however, that the preferred approach to developing interconnection arrangements is through mutual agreement between LECs and CLCs. \par\par GTEC generally supports the Commission's Interim Rules for interconnection as adopted in D.95-07-054 which provide for mutual negotiation of interconnection arrangements. The Commission's adopted interconnection rules can then provide guidance in those cases where the parties are unable to reach an agreement. GTEC believes it would be impractical to set forth in a tariff all of the technical details that encompass the interconnection of networks, or to develop tariff provisions to meet all possible situations. GTEC believes that parties should be allowed to negotiate the technical details of provisioning and constructing facilities to give the flexibility needed to deal with the wide variety of new provisioning situations that will inevitably occur as CLCs and LECs interconnect their networks. \par\par GTEC thus disagrees with Pacific's and DRA's positions that all terms and conditions should be tariffed. GTEC believes DRA's concern regarding discriminatory treatment can be resolved by requiring all negotiated interconnection agreements to contain nondiscriminatory \'5B*14\'5D prices across interconnected companies, and that all such agreements should be filed and approved to ensure that the terms and conditions are not unduly discriminatory or anticompetitive. \par \par Citizens \par\par Citizens supports the concept of mutually negotiated interconnection arrangements, with the material terms and conditions of such agreements filed with the Commission and made publicly available. \par\par Citizens finds Pacific's proposed interconnection tariff to be flawed in a number of respects. According to Citizens, Pacific's proposed tariff inappropriately merges local and toll interconnection issues, and sets a different scheme for CLC toll termination than for other toll carriers. Citizens believes that adoption of Pacific's proposed tariff would lead to network inefficiencies, discrimination, and to inconsistencies with the Commission's Interim Rules. Citizens recommends that Pacific be ordered to file the tariff it was ordered to produce -- a local interconnection tariff. With a few exceptions, Citizens generally agrees with GTEC's proposed tariff, and applauds what it calls the reasonable approach taken by GTEC. \par\par Citizens is concerned that some of the services identified by \'5B*15\'5D GTEC as ancillary are actually essential interconnection services which should be provided under tariff. Among the services which Citizens proposes should be provided under tariff and not by contract are: busy line verify/emergency interrupt, primary white pages and standard yellow pages listing, inclusion of CLC customer listings in GTEC's directory assistance databases, and E911 database inclusion and selective router functions. \par\par Citizens views seamless interconnection to require access on a nondiscriminatory basis to LEC data bases, white pages, and associated network signalling necessary for call routing and completion. \par \par Coalition \par\par The Coalition does not believe that interconnection arrangements need be tariffed, but prefers that parties negotiate their own interconnection arrangements subject to guiding rules and principles as adopted by the Commission. The Coalition finds that Pacific's proposed tariff, in particular, unnecessarily complicates the issues involved with LEC/CLC interconnection. The Coalition views interconnection between the LECs and CLCs to be no more technically challenging than the interconnections between LECs and IEC/LECs that have existed for decades. \'5B*16\'5D \par\par The Coalition disagrees with Pacific's LISA tariff in which CLCs are relegated to \'22customer\'22 status purchasing \'22services\'22 from the LEC. The Coalition recommends changing the description of Pacific's CLC interconnection arrangement from \'22service\'22 to \'22arrangement\'22 to reflect co-carrier parity between LECs and CLCs. \par\par The Coalition expresses concern that Pacific has not finalized its tariffs and that they might be revised in a way that affects Pacific's proposed interconnection service. The Coalition believes this makes it impossible to fully assess Pacific's proposed tariff, and the Commission should require Pacific to propose a final tariff immediately and give the Coalition an additional opportunity to address any such proposed changes. The Coalition recommends that GTEC modify its tariffs so that it is required to provide access to directories, E911 and SS7. \par\par The Coalition recommends that if interconnection arrangements must be governed by tariff, then the LECs should be ordered to refile their interconnection tariffs prior to the advent of local exchange competition on January 1, 1996 to be consistent with the Coalition's interconnection model. \par\par The Coalition offers several criteria \'5B*17\'5D for reviewing the LECs' proposed interconnection tariffs. The first criteria is engineering efficiency which means that internetwork facilities should be engineered to standard and accepted industry parameters. The second criteria is economic efficiency which occurs when LECs charge no more than their costs for providing interconnection arrangements which are efficiently engineered. The third criterion is flexibility, given that many different CLCs will likely require a variety of interconnection arrangements. The Coalition believes its interconnection model meets these criteria and also is intended to prevent the LECs from engaging in anticompetitive behavior with respect to LEC-CLC interconnection. The Coalition recommends that the LECs be required to accommodate as many CLC preferences as possible, subject only to the constraint that their networks need to be capable of the configuration requested by the CLC. \par \par DRA \par\par DRA believes interconnection rules should ensure competitive equity between the participants and protection of consumer interests. Going forward, DRA prefers that tariffs rather than contracts govern interconnection arrangements since DRA believes contracts \'5B*18\'5D readily lend themselves to anticompetitive conduct. DRA believes that the interconnection tariffs filed by Pacific and GTEC, however, are not acceptable. \par\par DRA observes that GTEC's tariff specifies that a number of services will be provided via negotiated contracts (i.e., operator services, directory assistance, directories, database access, billing and collection, SS7 interconnection, and E911). DRA believes that rates, terms, and conditions for these services should be tariffed, and not provided pursuant to contracts. DRA states that LISA does not provide interconnection to other LEC services such as 911 or operator services, which CLCs must provide to their end users. \par\par DRA also notes that the proposed new section in the 175-T tariff contains a general statement that the regulations, rates, and charges in other portions of the tariff may be applicable, but does not specify what other regulations, rates, and charges will be applicable. \par\par DRA recommends that any interconnection services contracts in existence as of January 1, 1996, should be converted to tariffed arrangements. \par \par FEA \par\par FEA agrees with the Coalition that negotiation is favored as the means of developing interconnection \'5B*19\'5D arrangements as opposed to tariffing, particularly given the competitive environment in which such arrangements will be implemented. FEA believes the contentiousness surrounding competitive local exchange interconnection is not due to technical issues which are new to California. Rather, the contentiousness is due to the fact that each advantage given to a competitor represents a matching disadvantage on oneself. FEA believes the adoption of tariffs would prove too unwieldy and limit parties' flexibility to negotiate different terms if circumstances change. Thus, FEA believes the Commission should create an environment conducive to negotiation and that adopted rules should serve only as a fallback mechanism. \par\par b. Discussion \par\par In order for the adopted interconnection rules to be successful in achieving the goal of promoting a competitive marketplace, certain underlying principles must be observed. A threshold issue to be resolved is whether tariffs should be required for CLCs to enter into interconnection arrangements with a LEC. The manner in which we develop interim rules for interconnection will be influenced by the answer to this question. Given our stated goal of fostering \'5B*20\'5D an environment conducive to the development of a competitive market, we conclude, on balance, that negotiated contracts offer a superior alternative to tariffing of interconnection services. \par\par The traditional tariffing paradigm comports with a monopoly model where command and control regulation is used. Moreover, as an initial step in devising rules for local exchange network interconnection, we directed Pacific and GTEC to file proposed interconnection tariffs for comment. Nonetheless, in recognition of the inflexibility and inefficiency of Pacific's tariff, we now conclude that in the newly emerging competitive world of multiple providers, interconnection should be arranged under contract rather than tariff. \par\par Allowing competitors to negotiate contracts will have several benefits over tariffs. A more level playing field is created when prospective competitors are able to negotiate their own terms and conditions for interconnection with co-carrier status subject to appropriate Commission rules and guidelines. Contracts will afford LECs and CLCs greater opportunity to negotiate flexible interconnection agreements to meet the needs of both parties. We expect contracts will lead to an \'5B*21\'5D overall increase in efficient utilization of the combined CLC and LEC interconnection facilities and, therefore, lead to more economic interconnection than would a more rigid tariff structure. Contracts will allow parties to more readily deploy new technologies as they become available. \par\par We are aware that all parties have concerns about negotiating contracts. In an unstructured negotiation, the Coalition believes that the LECs have too much negotiating power. In contrast, the LECs find that the Coalition's proposed rules tip the negotiating power too far in the CLCs' favor. To balance these concerns, we will adopt rules which prescribe a set of \'22preferred outcomes.\'22 These preferred outcomes are based on parties' comments about what technical features lead to the most efficient and economic interconnection solutions. Appendix A of this decision provides a summary display of our preferred outcomes with respect to the major interconnection disputes at issue. The rationale for these outcomes is discussed in the following sections. In approving interconnection contracts, Commission staff will consider how well a contract achieves the \'22preferred outcomes,\'22 but will not reject mutually agreeable \'5B*22\'5D contracts that do not contain preferred outcomes and which are not unduly discriminatory and anticompetitive. We are aware that parties may find alternatives to the \'22preferred outcomes\'22 that are more efficient and/or economic to their particular situation. We will approve contracts that do not contain the \'22preferred outcomes\'22 if the contract is mutually agreeable and passes other Commission guidelines outlined below. Parties shall submit those agreements to the Commission and explain why their terms should be adopted. \par\par In addition to providing efficient and economic solutions, the \'22preferred outcomes\'22 balance the negotiating power of LECs and CLCs which should result in both parties pursuing a solution that is least cost for the total interconnection costs of both parties. A solution that may be more economical for one carrier may not be appropriate if it results in an even greater inefficiency for its competitor. \par\par Many parties are concerned that negotiations are a good solution only when parties can reach agreement in a reasonable time period. Negotiations are less productive when parties delay for strategic reasons, and we are aware that CLCs and LECs are potential competitors and \'5B*23\'5D either party could have reason to stall the process. In response to this shortcoming of negotiations, we are establishing an expedited dispute resolution procedure to handle both situations where parties cannot agree on an interconnection arrangement and situations where parties have potentially breached their interconnection contract. This process will expeditiously resolve disputes between parties to assure the Commission's goal of competition is not obstructed. As discussed below, we shall assign an ALJ to facilitate the resolution of disputes. We shall direct the ALJ to use our preferred outcomes as guidelines in resolving disputes. \par\par While adopting a negotiation model as the basis for interconnection, we do not abdicate our role as regulators responsible for assurance that the terms and conditions of such agreements are consistent with the public interest. \par\par We remain concerned about the potential for unfair discrimination. With the proper safeguards in place to review and approve LEC/CLC interconnection contracts, however, we believe that concerns regarding discriminatory practices can be reasonably addressed. We place parties on notice that we will review proposed interconnection \'5B*24\'5D contracts for unfair discriminatory terms and will deny approval or direct parties to renegotiate any unfairly discriminatory or otherwise unreasonable terms where necessary. Upon reaching agreement on the terms of interconnection, parties to the agreement shall file the agreement via advice letter with the Commission for expedited review and approval. \par\par We appreciate that much work has gone into the interconnection provisioning proposed in the LECs' tariffs, and believe that much of the technical interconnection features discussed in the tariffs will readily lend themselves to implementation under contract as well as tariff. Accordingly, we direct all parties to negotiate in good faith. Moreover, we agree that certain essential services as noted by Citizens must be provided in conjunction with interconnection and may still be appropriately offered under tariff rather than contract. These services include busy line verify/emergency interrupt, and LECs' inclusion of CLC customer listings in directory assistance data bases. We shall direct the LECs to provide these services to CLCs under mutually agreeable terms and conditions. We shall permit the LECs to offer these services either \'5B*25\'5D under tariff or by contract on an interim basis, pending further determination in our Phase II rules. \par\par 2. Points of Interconnection \par \par Parties' Positions \par\par Parties disagree over the respective rights and obligations of the LECs and CLCs regarding the determination of the location of and number of points of interconnection (POI) by each party. \par \par Pacific \par\par Pacific believes each interconnecting party should be allowed to select its POI for terminating its own traffic on the other's network. Pacific generally agrees that CLCs may pick their POIs for terminating their traffic on Pacific's network. Pacific, however, asks that it be granted the same right. Pacific anticipates that CLCs and LECs could mutually agree on a single POI. If not, then each company should have the ability to select a POI on the other's network for the termination of traffic since CLCs will know what is efficient for them and Pacific will know what is efficient for itself. Pacific proposes that costs for the interconnection up to the facility meet point should be compensated through the payment of tariffed access service prices, that is, Pacific will pay the CLCs their tariffed rates for the \'5B*26\'5D interconnection, and vice versa. \par \par GTEC \par\par GTEC supports the Commission's Interim Rule that authorizes the LECs and CLCs to enter into mutually agreeable terms and conditions to establish both the POI and the provisioning of interconnection facilities. GTEC strongly recommends that no party be given the authority to unilaterally designate the POI since the party possessed with this power would have no incentive to ever reach a mutually agreed upon POI. GTEC is concerned that if CLCs are allowed to dictate to GTEC to construct and pay for half of the interconnection facilities, GTEC would incur huge outlays of capital on facilities that might be unnecessary or uneconomic. GTEC believes that the cost of building CLC's networks, whether necessary or not, will ultimately be borne in large part by LEC ratepayers. \par\par GTEC suggests two solutions when mutual agreement on the POI is not possible. First, the POI should be established at the CLC's physical facility nearest to the LEC's serving wire center or tandem. In those instances where the CLC does not have a physical facility within the area served by the LEC wire center or tandem, GTEC agrees to build out to the boundary of the serving \'5B*27\'5D area of the wire center or tandem and interconnect with the CLC at that point. \par\par GTEC's second solution would occur when the CLC wished to challenge as unreasonable the POI being established either at its own physical facility or the LEC's serving wire center or tandem boundary. In such circumstances, GTEC proposes a process such as the forum opened in I.90-02-047 (Forum OII) be established to resolve such interconnection impasses. GTEC recommends that interconnection disputes first be brought to CACD staff, and in those cases where CACD could not effect a resolution of the dispute, the matter would be referred to the Forum OII for resolution. GTEC is opposed to the POI solution in which LECs and CLCs would each be able to specify the POI for the traffic sent by the other company. GTEC views this approach to require two sets of facilities and result in an inefficient network. \par\par GTEC advocates that interconnection facilities should be established and paid for in accordance with the concept of an originating responsibility plan (ORP). Under ORP, the carrier serving the customer who originated the call is responsible for ensuring that the necessary means for terminating the call are in \'5B*28\'5D place. As set forth in GTEC's interconnection tariff, there are four options for the CLC to establish the facilities needed for interconnection under the ORP concept: (1) The CLC builds at its own expense the facility to GTEC's end office or tandem, and virtually collocates at GTEC's central office. Under this option, the CLC would own the facilities, although GTEC would install and maintain collocated facilities; (2) The CLC obtains special access facilities under GTEC's existing tariffs, thereby allowing the CLC to connect with GTEC at the desired first point of presence; (3) CLC interconnects with GTEC through an agreement with a third party already connected to GTEC; and (4) GTEC and the CLC agree to jointly construct, pay for, and own new plant. \par \par Citizens \par\par Citizens argues that each carrier should be required to provide any necessary facilities up to the requested meet point. Further, any carrier which controls facilities or functions which are necessary to a competitor should be required to respond to a competitor's bona fide request for interconnection in a timely, nondiscriminatory manner. \par\par Citizens notes that Pacific's tariff appears to allow CLCs to interconnect \'5B*29\'5D only at access tandems or end offices, and indicates that CLCs will require interconnection to Pacific's local tandem, not its access tandem. While an access tandem provides connection to the world, a local tandem provides connection to the LEC end office. Pacific also expects CLCs to be responsible for providing sufficient information and signalling to permit routing, delivery, and proper billing of local switched traffic over the LEC's network. Citizens argues that this proposed requirement will mean that the CLC would have to provide data in the signalling message that does not now typically accompany a local or EAS call, and might require software changes. \par \par Coalition \par\par The Coalition recommends modification of Pacific's proposed tariff to remove the arrangement whereby Pacific and a CLC establish the location of the POI by mutual negotiation and replace it with the CLC right to specify the POIs. The Coalition states that GTEC's tariff limits the POI to a GTEC switch location. The Coalition recommends that the CLC have a right to specify the point(s) of interconnection and supply some or all of the interconnecting facilities. The Coalition believes the LEC should have the \'5B*30\'5D obligation to build or supply the remaining portion of the interconnection facilities. The Coalition proposes that the CLC and the LEC each be responsible for paying half of the total costs of construction or use of existing facilities. In order for the CLC to make the \'22build or buy\'22 decision, the LEC will need to provide the CLC with what effectively will be a bid, consisting of either the cost for which the LEC is willing to construct the interconnecting facilities, the price for the use of existing facilities, or some combination of the two. The CLC will compare this bid with its cost to build or supply some or all of the interconnecting facilities, and will choose the lower-cost option. \par\par The Coalition states that Pacific should be required to offer three options for Meet Point Billing, not just the single option being offered by Pacific, i.e., multiple bill, multiple tariff. The other two options the Coalition suggests the Commission require of Pacific are (1) single bill, single tariff; and (2) single bill, multiple tariff Meet Point arrangement. \par\par The Coalition also states that GTEC would restrict the joint provisioning of interconnection facilities to situations where GTEC and \'5B*31\'5D a CLC reach mutual agreement. The Coalition would require GTEC to abide by the Coalition's interconnection model concerning the provisioning of interconnection facilities.\par \par DRA \par\par DRA recommends that there be at least two POIs per carrier in order to enhance network reliability. DRA believes that CLC customers must be assured that their telephone service will be as reliable as that of LEC customers, particularly in view of the critical public safety access provided by the public switched telephone network. DRA states that Pacific's tariff specified that the POI must be located within certain parameters and must be mutually negotiated. DRA is concerned that if Pacific and the CLC cannot reach agreement, the Commission would be foreclosed from adjudicating any resulting complaint since Pacific would be violating its own tariffs if it accedes to a POI determined by any means other than negotiation between Pacific and the CLC. \par\par DRA notes that interconnection between adjacent LECs has historically been accomplished via \'22meet-point arrangements.\'22 Under such an arrangement, each company constructed facilities on its side of the boundary and shared responsibility for the joint facilities. \'5B*32\'5D Although contractual meet-point arrangements worked well in the past, DRA is concerned that with the advent of competition, LECs and CLCs may not perceive themselves as having a common interest in providing access and interconnection to one another. \par \par Discussion \par\par Our overriding concern in addressing the issue of POI determination is that any governing rules create a level playing field for both CLCs and incumbent LECs and provide the incentive for the most efficient and economical outcome on an aggregate basis. The rules should not give an undue advantage to one party over another in terms of unilaterally dictating the number and location of POIs. The environment most conducive to a level playing field is one in which parties have the flexibility to negotiate terms and conditions for interconnection which are best suited to their specific needs. Accordingly, we will not require any fixed number of POIs that a CLC or LEC must have or dictate where the POIs must be located. We will instead adopt general criteria which shall apply to negotiations for POIs. \par\par A competitor's decision on the number of POIs and their location will be influenced by how the cost involved in constructing \'5B*33\'5D and maintaining new facilities or installing new software and how the funding of such cost will be assigned between the parties. Regarding the determination of who is responsible for paying for the construction and maintenance of new facilities required to accommodate the switching and transmission of traffic between the selected POIs, we consider the preferred method to be mutual negotiation of the parties involved. \par\par Each negotiating party has an economic incentive to seek the most efficient and economical POI configuration. The Commission adopted a bill and keep structure in D.95-07-054 because we agreed with parties' theoretical argument that calling patterns would result, on average, in customers placing and receiving the same number of calls from or to a CLC's network. If reciprocal call termination rates were established between CLCs and LECs, for any CLC and LEC that interconnect, the two companies would charge each other the same total amount to complete all calls between the two carriers. The net flow of revenue between two companies would be zero. On or before December 31, 1996, the Commission will reexamine the validity of the parties' assertion that call traffic will be \'5B*34\'5D in balance between a LEC and a CLC. \par\par The Commission did not intend bill and keep to imply that carriers should not fairly compensate each other for the interconnecting facilities between themselves and another carrier. If a carrier uses another carrier's facilities when interconnecting, the carrier should compensate the other for the portion of the facilities they use. Any contract between a CLC and LEC should clearly address this issue and demonstrate that parties are compensated appropriately. We expect each party to negotiate in good faith and recognize that the POI arrangement that optimizes overall efficiency for both sides has the best chances of being approved by the Commission. \par\par In the November 28 technical workshop parties discussed three general arrangements for interconnection: collocation, special access facilities and jointly constructed facilities. Each of these arrangements represent the facilities that connect the switches of both the CLC and the LEC. Under any of these arrangements, parties should develop compensation provisions that appropriately reflect the usage of facilities. As an illustrative example, when the CLC and LEC agree to use an existing special access \'5B*35\'5D facility that has been provisioned by the LEC, the CLC would compensate the LEC, at a mutually agreeable rate, for the portion of the facility the CLC uses to transport the local calls it intends the LEC to terminate. \par\par In the event parties are unable to reach agreement on POIs, both the CLC and LEC should use the dispute resolution process discussed in this decision. Until the dispute is resolved by the Commission, parties may designate their own separate POIs for terminating local traffic on each other's networks, if mutually agreeable. \par\par All parties agreed that at a particular traffic volume, it is more efficient to directly interconnect with the end office rather than route traffic through a tandem. We encourage parties to agree upon a cut-over traffic volume beyond which CLCs should directly interconnect with LEC end offices. \par\par 3. One-Way versus Two-Way Trunking \par \par Parties' Position \par \par Pacific \par\par Pacific proposes one-way trunking arrangements for interconnection. According to Pacific, one-way trunking is preferable to two-way because it allows each party to deploy its intra-network trunking in the most efficient and economic way. Pacific also believes that \'5B*36\'5D one-way groups will help eliminate intercompany disputes regarding usage of any trunk group. \par\par Pacific states that one-way trunking has the advantage of allowing accurate billing and bill validation. With two-way trunking, Pacific has no way to determine whether the CLC traffic being terminated is local or toll, an important consideration given the bill and keep for local traffic and access charges for toll. Pacific states that one-way trunking is the norm in states where local interconnection is working. \par\par Pacific is concerned that use of two-way trunks could be problematic if such trunks were built in proportion to demand forecasted by the CLC. According to Pacific, the CLC could use the added capacity of two-way trunks to meet any unforecasted demand, leaving Pacific in the unfair position of having to either build up capacity again or being unable to meet the needs of its own customers. With one-way trunking, each party is responsible for managing its own planning and capacity, alleviating this risk. \par\par Pacific believes that one-way trunking will help it better adjust to shifts in customer calling and traffic patterns as Pacific's customers move to competitors. Pacific states it must \'5B*37\'5D have the ability to rebalance routes at the lowest cost. Pacific believes that a shared approach to engineering, as required by two-way trunks, will serve neither party well. One-way trunks, on the other hand, require each carrier to be responsible for the design and engineering of its own trunks and is appropriate in a competitive environment. \par\par Pacific is also concerned about unresolved administrative problems associated with two-way trunking. For instance, with two-way trunking it is unclear which carrier handles coordination and turn up of new trunks, and coordination of repair for trunks. Coordination and administrative problems are much simpler with one-way trunking, according to Pacific. \par\par Pacific disputes that two-way trunking is significantly more efficient than one-way trunking. Pacific states that it has determined that 1.2 one-way trunks would be required for every two-way trunk, substantially less than the two-to-one ratio alleged by the Coalition. As more trunks are added, the 1.2:1 ratio becomes even smaller. Pacific believes that the marginal saving afforded by two-way trunks is more than offset by the many other efficiencies of one-way trunks, such as engineering efficiencies, \'5B*38\'5D ordering and provisioning efficiencies, and billing accuracy. \par \par GTEC \par\par GTEC states it has reached agreement with the Coalition regarding the use of one-way and two-way trunks to provide interconnection. GTEC states that this agreement provides that local and intraLATA toll may be combined on one trunk group, but that Feature Group D (FGD) common transport and trunking and FGD access trunking between GTE and CLCs carrying interexchange traffic must be on separate trunk groups. The agreement also covers certain tandem switching conditions, trunk forecasting requirements, the grade of service that must be maintained, and trunk servicing procedures. \par \par Citizens \par\par Citizens is opposed to Pacific's requirement that interconnection be limited to one-way trunks. Citizens believes that Pacific's proposal is inconsistent with the Commission's policy that interconnection should be accomplished in a technically and economically efficient manner. Since interconnection must be reciprocal, Citizens states that in most cases the most efficient interconnection facility is likely to be a two-way trunk group. Citizens believes Pacific's tariffs should require that two-way trunking be used \'5B*39\'5D unless it is infeasible or inefficient in a given instance. Regarding GTEC, Citizens recommends that GTEC's tariff be modified to require two-way trunking unless it is determined to be infeasible or inefficient on an individual case basis. \par\par Citizens indicates that Pacific's proposal to block intraLATA toll traffic delivered by a CLC to a Pacific access tandem if the call is destined to an NXX served out of a different access tandem is arbitrary and perhaps discriminatory since tandem-to-tandem routing of intraLATA toll traffic is not unusual. Citizens believes this provision should be eliminated since it is inconsistent with the Commission's stated efficiency principle. \par \par Coalition \par\par The Coalition is opposed to Pacific's requirement that CLCs use only one-way trunks. The Coalition views one-way trunks as uneconomical at the low volumes of traffic which will likely be present as local competition begins. The Coalition states that GTEC proposes to establish trunk directionality by mutual negotiation. The Coalition is currently negotiating with GTEC to allow CLCs to utilize two-way trunks by right rather than by mutual agreement, and will report to the CPUC the results of these \'5B*40\'5D negotiations. \par \par DRA \par\par DRA finds that Pacific's proposed tariff appears to restrict CLCs to one-way trunking but not IECs, and states that some potential CLCs have indicated a preference for two-way trunking arrangements. \par \par Discussion \par\par Based on parties' comments and the November 28 technical workshop, we conclude that two-way trunking will be more conducive to efficient utilization of the total network within a competitive environment. Two-way trunks will generally be more efficient for the CLCs, particularly in the start-up period. Two-way trunking also provides for more flexibility in accommodating changes in the volume and direction of traffic flow than does one-way trunking in many circumstances. The increased efficiencies from using two-way trunks will be more pronounced in the start-up period when CLCs are building up a customer base from zero and will likely have lower traffic volumes. Consequently, we support the use of two-way trunks in the interests of removing impediments to the development of a competitive market. \par\par While we expect our preferred outcome to lead parties generally to the use of two-way trunks, we do not intend to foreclose parties from mutually \'5B*41\'5D agreeing to alternative arrangements. However, if both parties to an interconnection contract should voluntarily agree to use one-way trunks under a particular arrangement, we will approve it assuming no protests are filed. \par\par In their comments and at the November 28 technical workshop, Pacific asserted that one-way trunks were necessary for them to differentiate and measure local and toll traffic for rating calls. At the same workshop, the Coalition and GTEC presented an alternative method of measuring and differentiating between local and toll traffic that relied on carriers exchanging information about the nature of their calls. Based on parties' discussion at the workshop, we understand that measurement of local and toll traffic when using a two-way trunk will require an exchange of information between the LECs and the CLCs. Those discussions also highlighted the need to verify the information LECs and CLCs exchange with each other and we address this issue below. \par\par In both the workshop and their comments Pacific and GTEC discuss measurement of traffic over two-way trunks. Pacific assumes that the LEC would require complete control over the measurement of local traffic. Pacific explains \'5B*42\'5D that with a two-way trunk, its existing software would not accommodate measurement of incoming local traffic. GTEC explains that its system could measure total incoming traffic volume with two-way trunks, but it would be unable to measure the percentage attributable to local usage. \par\par We appreciate Pacific's concern that a bill and keep rate structure for local calls and access charges for toll calls creates a strong incentive for parties to declare toll calls as local calls. We are not convinced, however, that alternative measurement systems to one-way trunks cannot be as effective. As GTEC suggested in the workshop, LECs could require CLCs to submit on a regular basis percentages that represent the amount of local traffic a CLC is terminating on the LEC's network. To address Pacific's concern that CLCs will avail themselves of the arbitrage opportunity, we expect interconnection contracts to require percentage local usage (PLU) from both CLCs and LECs on a quarterly basis. The contract should include provisions to allow a party to dispute the other's PLU or to request an audit. \par\par Although we have adopted bill and keep as an interim approach for mutual traffic termination for a one-year \'5B*43\'5D period, we have left open the option of subsequently considering the adoption of call termination charges following evidentiary hearings later in this proceeding. We need factual measurements of local traffic volumes to help us make that decision. In order to preserve the option of subsequently instituting billings for call termination, there must be some means of measuring local traffic under any adopted trunking arrangement. We shall direct each LEC and CLC to separately measure its own traffic and exchange results with any carrier with whom they interconnect as well as to CACD for monitoring purposes. We shall also provide for an independent consultant to review and verify the reported traffic statistics. The funding for the independent review shall be provided jointly by all certificated local exchange competitors. We will establish the details of the monitoring and verification program in a subsequent order. \par\par The problems Pacific raises concerning the risks of misforecasting of demand can be accommodated through appropriate joint planning and forecasting measures with possible sanctions imposed for failure to provide reasonable forecasts. We shall direct the parties to work towards \'5B*44\'5D the development of joint forecasting responsibilities for traffic utilization over trunk groups. \par\par Another measurement limitation with using two-way trunks relates to calls routed through more than one tandem. As GTEC identified in the November 28 workshop, calls that are routed through more than one tandem lose the identity of the originating network of the call. Thus, the volumes associated with these calls cannot be measured or attributed correctly to the carrier on whose network these calls originated. To solve this problem, parties identified several solutions all of which had the common requirement that the interconnecting party must connect to each access tandem within a LATA from which calls originate. Therefore, tandem-to-tandem routing of local traffic is not required. \par\par 4. Signalling Protocol \par \par Parties' Position \par\par Citizens states that Pacific's tariff will have the practical result of requiring CLCs to provide data in the signaling message that does not now typically accompany a local or EAS call (such as a carrier CIC code), and which might require software changes to accomplish. Citizens also states that Pacific's tariff defines its local interconnection \'5B*45\'5D service in a manner which requires that SS7 signalling be available. Citizens believes this provision limits the practical possibility of local competition only to areas served by Pacific offices equipped with SS7 which Citizens finds inconsistent with D.95-07-054 which opened all of Pacific's and GTEC's service territories to competition. \par\par The Coalition opposes Pacific's requirement that CLCs use SS7 signalling only. This restriction precludes the use of multi-frequency (MF) signalling by CLCs who want to use it, and also prevents Pacific from implementing interconnection at more than 70 switches that are not SS7 capable. \par \par Discussion \par\par Although certain parties object in principle to Pacific's exclusive offering of interconnection only through SS7, the disagreement is essentially only one of theory at this point. As a practical matter, there is no indication that any prospective CLC is presently seeking to deploy a new network using MF signalling. MF signalling has become anachronistic and no party attending the November 28 workshop actually expressed an intention to use MF signalling for interconnection purposes. (Workshop Tr. 114.) Pacific indicated in the November 28 workshop \'5B*46\'5D that it would entertain connecting a CLC via MF signalling to its end offices that are not SS7 capable on an individual case basis if such a request was made. Likewise, GTEC indicated it could handle an MF arrangement though that is not its preference. Accordingly, in the unlikely event a CLC may desire an interconnection via MF signalling to a LEC end ofice that is not SS7 capable, the LECs are directed to accommodate such requests. \par\par 5. Applicability of Bill and Keep to Different Traffic Types \par \par Parties' Positions \par \par Citizens \par\par Citizens reads Pacific's tariff as treating EAS and ZUM Zone 3 traffic as non-local traffic and not subject to the Commission's interim rules requiring bill and keep for terminating traffic. Citizens believes that these services should be treated as local traffic subject to the Commission's rules concerning bill-and-keep. Citizens also states that Pacific proposes to treat directory assistance, busy line verification, and emergency interrupt calls as non-local calls when originated by a CLC customer. Citizens states that such calls are handled on a bill and keep basis when originated by another LEC customer (e.g., when within an EAS \'5B*47\'5D area). Citizens recommends that CLCs and LECs be treated the same by Pacific. \par\par Citizens recommends that all provisions relating to toll traffic termination should be eliminated from Pacific's tariff. Citizens believes that whether a call is terminated by a CLC, an intraLATA toll competitor, or an interLATA toll competitor, Pacific's switched access tariff provisions should apply to CLCs as well as other carriers. Incorporating special provisions for CLC call termination provides an opportunity for discrimination and should be disallowed.\par \par DRA \par\par DRA states that Pacific's LISA terms exclude interLATA traffic originating on a CLC network. This restriction could require such calls to be charged at switched access rates, potentially contravening the ALJ ruling mandating bill and keep for mutual traffic exchange during the interim. DRA also states that Pacific's tariff appears to contemplate local switching and access charges in violation of the interim bill and keep mandated in D.95-07-054. DRA reads Pacific's proposed tariff to define directory assistance and 800 calls as non-local. DRA sees this as resulting in calls being charged to the CLC and thus contravene the bill and \'5B*48\'5D keep mandate. Regarding GTEC, DRA states that GTEC's tariff appears to contemplate local switching and transport charges, which would appear to violate the mandate of D.95-07-054 which required interim bill and keep arrangements for exchange of local traffic between LECs and CLCs. \par \par Discussion \par\par In our August decision establishing bill and keep for local calls we defined local calls by reference to the LECs' current definition. As parties comments have highlighted, this definition needs to be clarified. We intend that bill and keep will apply to all local calls including those within the 12-mile radius, EAS and ZUM Zone 3. Bill and keep will not be applied to directory assistance calls, 800 number calls, and busy line verification and emergency interrupt calls. We authorize LECs and CLCs to establish rates that recover their costs for these calls as appropriate. \par\par In its tariffs and at the November 28 workshop, GTEC stated its intention of charging a tandem switch charge for local calls that pass through a GTEC tandem. Because the tandem switch was not designed to provide local switching to end offices, GTEC has defined any calls routed through the tandem switch to be subject \'5B*49\'5D to a tandem transiting charge. By contrast, Pacific interprets the bill and keep rule to apply to all local calls between a CLC network and its end office, even if routed through an access tandem. \par\par We conclude that Pacific's interpretation is correct, and that GTEC is incorrect in seeking to avoid the bill and keep rule merely because an otherwise local call is routed through its tandem switch. GTEC's approach would create a perverse incentive for CLCs to choose a less efficient connection merely to avoid the tandem switch charge. \par\par If a CLC wants to use a LEC's tandem to route a call to another CLC, however, the LEC may impose a charge to compensate for the service. Parties who are unable to reach agreement on the amount of such charges may have the matter resolved through our Dispute Resolution Procedure. \par\par We agree with Citizens that the LEC's switched access rates should apply to CLCs on the same basis as for other carriers. Since we are not adopting the LISA tariff for intraLATA toll calls, CLCs will pay terminating access charges based on the LEC's existing switched access tariffs. \par \par C. Non-Technical Terms and Conditions \par\par 1. Confidential Information \par \par Parties' \'5B*50\'5D Positions \par\par Pacific proposes that all information that it supplies to a CLC must be treated as confidential while information furnished by the CLC to Pacific shall not be considered confidential unless conspicuously marked, in which case limited care will be exercised. Citizens disagrees and recommends that to the extent either carrier reasonably designates information as confidential, the other carrier should treat it as such. Citizens views Pacific's proposal as going far beyond any reasonable confidentiality provision, especially for information exchanged in association with a tariffed service. \par\par The Coalition also recommends modification of Pacific's proposed tariff so as to require a symmetrical obligation that Pacific and CLCs treat each other's confidential information in a like manner. \par \par Discussion \par\par We agree that symmetrical rights and obligations must apply to LECs as well as CLCs in the exchange of information claimed to be confidential. Pacific's proposal that all information which it furnishes to CLCs be treated as confidential is overly broad and burdensome. Each party shall be responsible for designating which information it claims to be confidential to other \'5B*51\'5D parties receiving the information. Reciprocal arrangements shall apply. If parties are unable to reach agreement over what information should be treated confidentially after reasonable efforts, they may seek resolution under the Commission's law and motion procedure. \par\par 2. Liability \par \par Parties' Position \par\par Citizens states that GTEC's tariff allows GTEC to assess damages from the CLC as deemed reasonable and necessary by GTEC. Citizens recommends that any damages or penalties beyond adjusted billings (and any associated late payment charges) should be subject to review by the Commission or a court of competent jurisdiction. Citizens also states that GTEC proposes that CLCs indemnify GTEC from any and all claims due to any action/inaction of the CLC. Citizens recommends that this be clarified to state that the CLC's liability should be no greater than GTEC's liability would have been had the claim arisen from GTEC's action/inaction. \par\par The Coalition recommends that Pacific's tariffs be modified to require a symmetrical liability provision so that Pacific and the CLC will each be held responsible for the damage, injury, or outage to the other's network, employees, or customers \'5B*52\'5D resulting from the actions of the other company or company's customers. \par \par Discussion \par\par We agree with the comments of Citizens and the Coalition. Competitors should be subject to symmetrical risks and protections from legal liability vis-a-vis each other. Accordingly, CLCs' liability shall be no greater than the LECs' liability for any action or inaction resulting in a claim against a LEC. We do not establish liability limits at this time and leave the parties to establish the actual limits which must be symmetrical. \par\par 3. Termination of Interconnection \par \par Parties' Positions \par \par Citizens \par\par Pacific's tariff allows Pacific to terminate service to the CLC if the CLC fails to timely pay for any rate or charge. Citizens objects to this provision and recommends that no termination should be allowed if the payment is in dispute, and the CLC should be given an opportunity to seek expedited Commission review or relief from a court of competent jurisdiction prior to any termination. Citizens also states that Pacific's tariff allows it to terminate service to the CLC if Pacific determines the CLC service is in conflict with any law, judicial ruling, or regulatory determination. \'5B*53\'5D Citizens recommends that Pacific should not have the right to make such a unilateral determination, and that adequate notice should be given to the CLC to afford an opportunity to seek expedited relief from the CPUC or court of competent jurisdiction. In addition, Citizens is concerned about Pacific's proposed tariff which allows Pacific to terminate its obligation to provide interconnection in the event of a disaster or if Pacific deems the central office unsuitable for use as a central office. Citizens recommends that this be modified to add that Pacific shall be obligated to make the same efforts to restore or reconfigure service to the CLC as it does for its own customers in such an event. \par \par GTEC \par\par GTEC's tariff allows it to terminate interconnection service if the CLC does not resolve any dispute or discrepancy to the satisfaction of GTEC. Citizens recommends that no termination should occur without sufficient notice being given to the CLC in order to allow the CLC to seek expedited Commission review or judicial relief. \par \par Coalition \par\par The Coalition recommends deleting from Pacific's proposed tariffs the provision that Pacific may unilaterally terminate CLC service \'5B*54\'5D immediately, without liability, at any time if in Pacific's sole opinion, the service is in conflict with any law, judicial ruling, or regulatory determination. The Coalition believes Pacific should not be allowed to substitute its judgment for that of judicial and regulatory authorities. \par \par DRA \par\par DRA states that Pacific's proposed tariffs allow it to terminate service to a CLC if Pacific chooses to close the central office to which the CLC is connected. Additionally, Pacific would not be liable for reimbursement of any expenditures the CLC had made to provide service from that central office. DRA worries that unilateral termination rights without reimbursement of sunk costs presents a high potential for abuse. \par\par DRA also states that Pacific's tariff allows it to terminate service to the CLC at any time if Pacific believes the CLC is violating any law, judicial ruling, regulatory ruling, or tariff provisions. DRA believes unilateral termination by a competitor poses too many risks, and termination should require authorization from the Commission. \par \par Discussion \par\par We conclude that Pacific's and GTEC's proposed termination provisions are unreasonable and should be rejected. \'5B*55\'5D No competitor should have the unilateral power to terminate another carrier's service without prior notice or opportunity for proper recourse. If any LEC or CLC believes another CLC is in violation of the law, it shall provide adequate notice to the CLC first to afford it the opportunity to seek expedited relief. We shall provide for disputes of this nature to be handled through our expedited dispute procedures as discussed below. \par \par D. Dispute Resolution \par \par Parties' Positions \par\par DRA believes that disputes between and among LECs and CLCs will inevitably arise, and recommends that the Commission create an expedited dispute resolution process to deal with complaints between competing providers of telephone service. DRA states that the existing complaint process is too slow and contentious to be suitable for these situations. DRA therefore supports a workshop/comment process to develop appropriate dispute resolution and complaint mechanisms. \par\par Pursuant to the ALJ Ruling of November 16, 1995, a workshop was held on November 28 during which the topic of dispute resolution was addressed. Parties at the workshop identified a four-step dispute resolution process. The first step \'5B*56\'5D is good faith negotiations between parties to resolve the dispute, including escalation of the issue to the executive level of the companies involved in the dispute. If negotiations are unsuccessful, the second step is a meeting between parties to the dispute mediated by an ALJ and CPUC technical staff. If mediation is unsuccessful, the third step is for each party to file a short pleading with the ALJ who would then issue a written ruling. The final step is for a party dissatisfied with the ALJ ruling to file a formal expedited complaint. Workshop participants generally agreed that parties to a dispute should not be able to avail themselves of the expedited complaint process unless they had followed the preceeding informal steps. There was general consensus that the dispute resolution process should be relatively swift and encourage resolution of the dispute at the lowest and most informal level possible. \par \par Discussion \par\par In the interests of the rapid implementation of interconnection arrangements for competitive local exchange service, we agree that a streamlined process is needed to resolve disputes between parties who cannot reach agreement on the terms of interconnection. \'5B*57\'5D Likewise, once parties reach agreement on interconnection, there may be subsequent disputes over breach of contract or interpretation of parties' rights and obligations. We shall adopt an expedited dispute resolution process which addresses both of these situations. We conclude that the four-step dispute resolution process identified by the workshop participants provides a useful framework for adopting a procedure for parties to follow. \par \par Step 1: Informal Resolution Without Commission Intervention \par\par We will require LECs and CLCs to negotiate in good faith in establishing interconnection contracts and to escalate any disputes to the executive level within each company before bringing disputes before the Commission for resolution. Parties to interconnection contracts shall continue to have a requirement to negotiate in good faith to resolve contractual disputes arising after the signing of the interconnection agreements. We shall require that any interconnection contract submitted to the Commission for approval contain a provision for dispute resolution in accordance with the procedures adopted herein. \par \par Step 2: Dispute Resolution with ALJ Mediation \par\par If parties are \'5B*58\'5D unable to informally resolve their interconnection dispute, one or more of the parties may file a motion to have the dispute mediated by an ALJ who in turn may be assisted by CACD staff. We will establish an expedited Dispute Resolution Procedure (DRP), within this docket, in which parties can file motions seeking mediation and an ALJ ruling on the merits of their case. All local carriers, including small and mid-sized LECs, will be parties to the DRP, and any local carrier with a valid CPCN may file a motion asking for an ALJ ruling to establish the time and place for mediation to occur. \par\par As a condition of having an ALJ assigned to mediate, the parties must show that they have first attempted to resolve the dispute within their own companies through escalation to the executive level within each company. \par \par Step 3: ALJ Ruling \par\par If mediation fails, the ALJ will direct parties to submit short pleadings and issue a written ruling to resolve the dispute. The ALJ shall use our adopted preferred outcomes as guidelines under which disputes will be reviewed and resolved. If a party objects to the ALJ's ruling, it may then file a formal complaint under the Commission's expedited process \'5B*59\'5D described below. \par \par Step 4: Expedited Complaint \par\par Parties who wish to avail themselves of the expedited complaint process, must include in their complaint a showing that they have pursued each step of the dispute resolution process described earlier. Parties who choose to challenge an unfavorable ALJ ruling in the DRP will bear a heavy burden of proof in the expedited complaint proceeding. The expedited complaint process we establish today shall adhere to the same rules established for expedited complaints in Rule 13.2 of our Rules of Practice and Procedure, except that a court reporter may be present at the hearing, any Commission decision rendered may include separately stated findings of fact and conclusions of law, and if it does, the decision may be considered as precedent. Any written documents submitted by the parties as part of the dispute resolution process may be discoverable by parties to the expedited complaint proceeding. We generally intend for the expedited complaint docket to resolve only the narrow issues specific to the parties to the dispute. There may be instances, however, where the same parties have more than one expedited complaint proceeding before the \'5B*60\'5D Commission. In such instances, we may find it useful to establish a precedent. \par \par General Guidelines \par\par We will leave it to the discretion of the ALJ presiding over the DRP to schedule and conduct the dispute resolution process, to establish new service lists, and to determine the need for any written submittals in the proceeding. The motion requesting mediation need only be served on parties to the dispute, the ALJ assigned to the DRP, and the Director of CACD. The motion should also be served on the Docket Office which will publish a notice of the motion in the Daily Calendar. \par\par To facilitate the speedy resolution of disputes, we will generally discourage parties who are not part of the dispute from participating in the mediation process. n5 Any resolution that results from the informal dispute resolution process will generally be nonprecedential. However, if a dispute raises generic issues or affects others, the presiding ALJ may solicit comments and testimony from all parties to the dispute; and the Commission may issue decisions. Our normal rules of practice and procedures should be followed at all times during the DRP. \par\par n5 To avoid a party's need to become part of the service list of a specific dispute in order to obtain an ALJ ruling on the merits of the dispute, we shall make copies of the ALJ ruling available through our Formal Files. \'5B*61\'5D \par\par We believe the dispute resolution process we adopt today provides a mechanism that resolves interconnection disputes in a timely manner, encourages parties to resolve their disputes at the lowest possible level, minimizes formal Commission intervention, and protects parties' due process rights. To improve and refine our dispute resolution model, we will allow parties to file motions in the DRP suggesting methods for further improving and streamlining the dispute resolution model. These motions should be served on all parties in the docket. \par \par E. Expedited Contract Approval Process \par\par Historically, interconnection between LECs with adjacent service territories has been through contracts. These contracts were not required to pass GO 96-A review standards which were designed to reject contracts that are anticompetitive or unduly discriminatory. In large part, the exclusive franchise territories of the LECs reduced any anticompetitive behavior LECs may have exhibited toward each other. The contracts became effective when signed by the parties. In both their written comments and at the November 28 workshop, the Coalition and several CLCs expressed a strong desire to quickly enter \'5B*62\'5D into and receive approval of any interconnection contracts. However, parties expressed concerns that those contracts may be unduly discriminatory or anticompetitive. \par\par The Commission must balance the desire of parties for expedited approval of contracts with concerns that require Commission staff to review contracts for outcomes that are not in the public's best interest. The expedited review process we establish here balances the obvious need that Commission review processes not impede competition with the equally important requirement of protecting the public interest by ensuring that contracts are not unduly discriminatory or anticompetitive. By limiting the content of the contracts to issues that we resolve in this decision and by establishing outcomes that should be in the public interest for individual technical issues, the review process can be expedited without jeopardizing the Commission's dual roles. \par\par After parties have reached agreement on a contract, parties should file the contract and request expedited review under the following process. This process will only apply to issues relating to interconnection on each other's network. We will limit the scope of the expedited \'5B*63\'5D review process to these high priority features. Expedited review is appropriate to guard against the risk that the implementation process could otherwise by delayed. If contracts are submitted that address issues beyond the scope of interconnection, those contracts will be treated as GO 96-A contracts with the normal protest and response period. \par\par At the time of filing, parties should include all the information normally required for contracts filed under GO 96-A. Additionally, if the contract contains terms and conditions that are substantially different from the preferred outcomes outlined above, the filing shall substantiate why these terms and conditions lead to a more economic and/or efficient outcome. \par\par The expedited process will allow interested parties to file protests within seven calendar days. Parties to the contract may reply to the protests within five calendar days. Protests and responses should only address any anticompetitive or unduly discriminatory provisions of the contract. CACD will review the protests and determine the need for a Commission resolution. Contracts that are protested may be approved without a resolution if the protests are determined by CACD to be \'5B*64\'5D not material or raise issues unrelated to discrimination. \par\par Copies of the advice letter, including the contract, should be filed upon the normal advice letter service list and upon all LECs and certificated CLCs. \par\par Similar to the Express Contract procedure we established in D.94-09-065, the compressed schedule for review under the expedited procedure does not allow time for us to reject a proposed contract by resolution. We therefore authorize CACD to review filed contracts for compliance with our stated requirements and policy objectives, and, if appropriate, to reject a contract by letter, which may be transmitted by facsimile. Parties should be mindful that prior contracts that have been either approved or rejected are non-precedential and should not affect CACD's review of any currently pending contract. CACD's role in this review is a ministerial one of ensuring that the contract conforms to our requirements and policies. CACD's letter rejecting a contract must clearly state the reason for the rejection. After receiving a rejection letter, the parties may address the points raised in the letter and refile an amended contract. \par\par For contracts that present novel issues or that would \'5B*65\'5D require CACD to exercise a degree of judgment beyond a ministerial role, CACD may also provisionally reject a contract to prevent the contract from becoming effective in 14 calendar days, to allow time for CACD to prepare a resolution with its recommendation for our consideration and decision. \par\par The key to the expedited procedure is that filed contracts automatically become effective 14 calendar days after filing, unless CACD acts to reject the contract. This modifies the customary treatment of contracts under GO 96-A, which requires the Commission's explicit approval before a contract may take effect. \par\par IV. Other Service Features Related to Physical Interconnection \par\par In order for facilities-based CLCs to be able to offer local service, they must not only have a physical interconnection with the network of an incumbent LEC, but also have access to other essential services. In this section, we address these essential service features and the rules governing them to be effective January 1, 1996. \par \par A. Enhanced 911 Service \par\par 1. Background \par\par Our Interim Rules in D.95-07-054 required CLCs to provide Enhanced (E)-911 service. n6 A workshop was held on September 18 \'5B*66\'5D and 19 to address issues related to the continuation of E-911 service upon entry of CLCs into the local exchange market. On October 23, 1995, the Department of General Services (DGS) filed a report compiling the opinions of members of a working group that formed out of the September workshop. That subgroup of parties who attended the September E-911 workshop reached general agreement on a method to display a remote call forwarded (RCFed) phone number at the Public Safety Answering Point (PSAP). n7 On November 6, 1995, an ALJ Ruling asked for further comments on certain 911 issues, identified below, which were not resolved by the workshop, but which need to be resolved prior to the initiation of local exchange competition in January 1996: \par \par o Whether parties agreed with the proposed solution regarding the remote call forwarding display issue discussed in the DGS report and the feasibility of its implementation. \par \par o Whether the requirement per Appendix B, Rule 10.C of D.95-07-054 that the CLC must continue to provide access to 911 service to residence customers who have been disconnected for nonpayment should pertain equally to facilities-based and resale CLCs. \par \par o Whether it is \'5B*67\'5D appropriate for GTEC to arrange 911 interconnections through mutually negotiated agreements rather than through a tariff as proposed by Pacific Bell. \par \par o The appropriateness of Pacific and GTEC potentially offering different arrangements for the following; \par \par (1) length of time allowed for the LEC to provision 911 trunks to a CLC requesting interconnection \par \par (2) length of time allowed for the CLC to provide 911 database information regarding its customers to the LEC \par \par (3) provisions for obtaining Master Street Address Guide (MSAG) data\par \par \par o Whether the maps provided by the LECs of 911 tandem locations were adequate for CLCs to establish 911 tandem links by January 1, 1996.\par n6 D.95-07-054, Appendix A, Rule 4.F.(9). \par\par n7 A PSAP is the primary location where a public safety agency answers incoming 911 calls. \par\par On November 13, 1995, an ALJ Ruling was issued soliciting comments on the merits of requiring CLCs to obtain an 800 number which the PSAPs can call 24 hours a day for subscriber information, with the requirement monitored and enforced by an industry-led task force. \par\par We discuss below the parties' positions on each of the above topics and our resolution of 911-related \'5B*68\'5D issues. \par\par 2. Display of RCFed Number at the PSAP \par\par One of the requirements for E-911 service is that it be available to customers of a CLC who retain their phone number via interim number portability (INP). In their discussions, parties assumed INP would be provisioned using remote call forwarding (RCF). \par\par Under the DGS proposal, the Automatic Location Identification (ALI) record, which is displayed at the PSAP, would contain two new data fields to assist in the processing of E-911 calls from RCF phone lines. The first new data field is the \'22RCF Field\'22 which would contain the RCFed 10-digit number (i.e., the number listed in the telephone directory). The \'22originating\'22 service telephone number would appear in the Automatic Number Identification field of the ALI record, where the listed telephone number normally appears. Under the proposal, as an additional safeguard, a new, five-character Telephone Company Identification (TCI) field will be added to identify the telephone company that provides service to the calling line. The TCI field will be associated with a toll-free number staffed 24-hours per day in the event the PSAP operator needs additional subscriber information to help \'5B*69\'5D respond to an emergency. \par\par All parties who commented agree with the proposed method to display an RCFed phone number at the PSAP. The Coalition believes that the proposal can and should be implemented by January 1, 1996. Pacific states that those PSAPs that it serves have been notified of the alteration to the ALI screen. DGS's comments emphasized that the method of display only addresses the situation where the subscriber remains at the same service location, and does not address the situation where a subscriber moves to a new location outside the present 911 Selective Router serving area while retaining their present telephone number. \par\par The Smaller Independent LECs n8 joint comments noted that the primary PSAP for some areas served by Pacific and GTEC is located in territories served by smaller LECs. The Smaller Independent LECs believe that it is critical to educate the PSAPs in the smaller LECs' territory about impacts on E-911 service from changes related to RCF. Otherwise, PSAPs in the smaller LEC territories that receive calls originating in the territories of Pacific and GTEC may not be properly informed about changes in the information forwarded to them, which impacts how they \'5B*70\'5D handle calls to be forwarded on to secondary PSAPs. According to the Smaller Independent LECs, this could have tragic consequences. To ensure that education efforts are effective, the Smaller Independent LECs recommend a consistent method of implementing the RCF data field. \par\par n8 The Smaller Independent LECs who filed joint comments are: Calaveras; California-Oregon; Ducor; Foresthill; Happy Valley; Hornitos; Ponderosa; Sierra; and Winterhaven. \par \par Discussion \par\par Access to E-911 service is essential for each Californian. We will therefore require that every CLC be able to provide each of its customers with access to 911 services. To accomplish this mandate, Pacific and GTEC are ordered to take the actions necessary to provide the CLCs with 911-interconnection services by the commencement of local exchange competition on January 1, 1996. Thereafter, Pacific and GTEC are to provide CLCs with 911-interconnection services in an efficient and timely manner. \par\par We will adopt the proposed method of displaying RCFed phone numbers at the PSAP as agreed to by all the parties, to be implemented by January 1, 1996. We will require Pacific and GTEC to inform PSAPs both in their own territories \'5B*71\'5D and PSAPs located within the smaller LECs' territories that serve Pacific's and GTEC's customers about the changes to the ALI screen due to RCF before January 15, 1996. Since we are currently scheduled to issue a decision regarding rates for INP using RCF or other means by early February 1996, this timetable should provide an adequate opportunity for all PSAPs to be informed regarding the changes. We will also adopt the recommendation of the Smaller Independent LECs that Pacific and GTEC coordinate a method of consistently implementing education efforts. \par\par 3. Requirement for CLCs to Provide 911 Service to Residential Customers Disconnected for Nonpayment \par\par All parties support requiring both facilities-based and resale CLCs to be responsible for providing their residential customers access to 911 service following disconnection of service due to nonpayment (i.e., warm line). PU Code {\f0\'A7} 2883 prohibits local telephone corporations from terminating 911 service to residential customers for nonpayment, and this requirement clearly applies to CLCs. Several parties recommended that the resale CLC should maintain warm line service for the duration of its lease for the unbundled loop, \'5B*72\'5D and that the resale CLC's responsibility for warm line service would revert back to the underlying facilities-based CLC or LEC upon termination of the lease. To enable resale CLCs to carry out their responsibility for warm line service, DRA recommends that facilities-based CLCs and LECs should offer tariffed warm line service to CLC resellers. DRA recommends that no carrier, LEC or CLC, should be allowed to serve a residential customer without the ability to provide warm line service following disconnection for nonpayment. In the event a facilities-based carrier completely withdraws from a market area, the Coalition and DRA recommend that the carrier of last resort should provide the warm line service. \par\par In the case of a ported number using INP and an unbundled loop, the Coalition recommends that the CLC should maintain warm line service but should not be required to maintain INP service on the telephone number which was originally ported to that line. The Coalition notes that the LEC/CLC responsibility ends at the demarcation point at the customer's premise, and warm line service should be provided to that point; beyond that point, it is the customer's responsibility to maintain premise \'5B*73\'5D wiring. \par \par Discussion \par\par We will require that all CLCs provide warm line service to their residential customers. No CLC shall be allowed to provide service to a residential customer without an ability to provide warm line service to the customer. To ensure reseller CLCs' ability to provide warm line service, we shall require facilities-based CLCs and LECs to offer warm line service to resale CLCs in their 911 tariffs. A resale CLC's obligation to provide warm line service to a customer shall continue as long as the CLC has an arrangement for resale service to the end user's premises. Following termination of the resale arrangement, the obligation to provide warm line service shall revert to the underlying facilities-based CLC or LEC. Finally, we will not require the CLC who is responsible for maintaining warm line service to a number disconnected for nonpayment to maintain any INP service on the telephone number which was originally ported to that line. It will be the CLC's responsibility, however, to make sure that the 911 data base administrator is provided with any necessary information when INP is discontinued in order to ensure a proper and timely response to a 911 call. \'5B*74\'5D \par\par 4. Providing 911 Interconnection Through Negotiated Agreements Versus Tariffs \par\par DGS sees no need to specify either contracts or tariffs for 911 interconnections since both have worked well in the past, provided that neither is used to delay the availability of needed service or cause an unjust profit. \par\par Pacific states that it will tariff 911 interconnections, but supports allowing GTEC to contract for these arrangements. GTEC favors providing E-911 interconnections through negotiated agreements rather than tariffs since agreements will allow flexibility to accommodate the individual needs of the many different CLCs. As support for its position, GTEC cites the Commission's preference for mutual agreements expressed in D.95-07-054. As further support, GTEC notes that interconnection arrangements between LECs, including 411, E-911, and local intercept, have traditionally been accomplished through contracts; and that tariffing E-911 interconnection for CLCs would thus result in CLCs and LECs being treated differently. \par\par Citizens, the Coalition, and DRA recommend that LECs provide E-911 interconnections under tariff. DRA believes that tariffs are more appropriate than contractual \'5B*75\'5D arrangements for a service as essential as E-911 interconnections. Both the Coalition and DRA believe that tariffs are less prone to abuse by LECs than contracts. The Coalition states that some CLCs have had a great deal of difficulty in negotiating E-911 service with GTEC. DRA believes that contracts could not be implemented by January 1, 1996, since there is insufficient time for the Commission to review and approve each contract by January 1, 1996. DRA thus views tariffing E-911 as the only feasible option for achieving the provisioning of 911 service to CLC customers by January 1, 1996. DRA notes that Pacific has already filed an advice letter to tariff its E-911 service, and both the Coalition and DRA recommend that GTEC be ordered to file its own E-911 tariff by December 15, 1995, to offer E-911 service by January 1, 1996. If GTEC is unable to file its tariff by December 15, both the Coalition and DRA recommend that GTEC be required to concur in Pacific's tariff until GTEC's own E-911 tariff is approved by the Commission. \par \par Discussion \par\par To assure that E-911 service is available to the CLCs at the start of local exchange competition on January 1, 1996, we will require \'5B*76\'5D Pacific and GTEC to offer E-911 interconnections through tariff. We do this based on our belief that the local exchange companies will retain monopoly market power over the provisioning of E-911 service. The CLCs will be dependent on the incumbent LECs for the foreseeable future to obtain the necessary means to provide E-911 to their own customers. We therefore will classify E-911 services offered by Pacific and GTEC to the CLCs as a Category I service. \par\par GTEC is hereby ordered to file a tariff for E-911 not later than January 31, 1996. We shall require GTEC to concur with Pacific's tariff during the interim and authorize GTEC to seek Z-factor recovery for the difference between the rates charged under Pacific's tariff and GTEC's actual cost of providing the service. We note that D.95-12-016 directs Pacific and GTEC to perform cost studies and submit this information in early 1996. Once cost studies have been approved, GTEC may file a Z-factor request in its next 1997 price cap filing to recover the difference between the adopted rates and those charged by GTEC under Pacific's tariff. \par\par 5. Length of Time to Provision 911 Trunks to a CLC Requesting Interconnection \par\par DGS does not \'5B*77\'5D comment on standardizing the length of time for each LEC to provision 911 service, but is concerned about Pacific offering 911 arrangements that are less reliable and more costly than GTEC's. DGS suggests that the Commission initiate a formal inquiry into the cost and time required to make Pacific's 911 network more like GTEC's by providing 911 tandem features at all end offices with the intent to offer a statewide standard 911 trunk access configuration. \par\par Pacific and GTEC are opposed to a uniform time limit for provisioning E-911 interconnections since each LEC has a different internal means for processing of 911 service orders. Therefore, the length of time for a LEC to provision 911 trunks to a CLC is based upon the unique internal business processes and structure of each LEC. Pacific states that it will offer a standard interval of 30 business days for 911 trunk provisioning. \par\par The Coalition supports a requirement for Pacific and GTEC to offer uniform terms and conditions for 911 interconnection, and recommends that a 13-day provisioning interval be the standard for all LECs and all CLCs. \par\par Citizens believes that there should be no difference in the time required by a LEC to provide \'5B*78\'5D a CLC with 911 arrangements than the LEC requires to provide the same arrangements to other LECs. According to Citizens, LECs should be required to provide E-911 arrangements on substantially the same terms and conditions to CLCs as to other carriers absent some justifiable extenuating circumstance beyond the control of the LEC. \par\par DRA recommends that LECs fill requests for 911 trunk service within 60 calendar days from the date the service is requested by a CLC. DRA believes that the length of time allowed for the LEC to provision 911 trunks to a CLC should be the same as for any other trunks connecting a LEC to a CLC and vice versa. \par \par Discussion \par\par As stated previously, we intend to allow comparable access to E-911 by all CLCs which will require that both LECs offer 911 interconnections by tariff under the same terms and conditions. We are convinced that the availability to CLCs of a service as essential as E-911 should be as uniform as practical in order to enhance the protection of the health and safety of California residents; and to facilitate competition by CLCs who are mandated to provide 911 service. In keeping with this goal, we shall require both Pacific and GTEC to \'5B*79\'5D provision E-911 trunks within 30 business days from when ordered. Pacific and GTEC should include this provisioning interval in their tariffs. \par\par We decline at this time to adopt DGS's proposal for us to initiate an inquiry into making Pacific's 911 network more like GTEC's in order that there be a statewide standard 911 trunk access configuration. Now is not the optimal time to standardize the 911 network configuration since the provisioning of E-911 will undoubtedly evolve as LEC/CLC 911 interconnection experience grows, and E-911 may someday not be provided by the LECs at all, but on a competitive basis. \par\par 6. Length of Time for the CLC to Provide 911 Database Information to the LEC and for the LEC to Update Its Database Following Receipt of the Information \par\par DGS recommends a maximum period of 24 hours for LECs/CLCs to update the 911 databases following completion of the service order. DGS believes the 24-hour period could be subdivided into two 12-hour periods. The first period would start when a service order is completed, and would end when the CLC or LEC transfers the 911 subscriber data to the 911 Data Manager (presently Pacific and GTEC). The second period would start \'5B*80\'5D when the 911 Data Manager receives the 911 subscriber data, applies the MSAG transaction, and updates the associated 911 Selective Router and ALI database records. Each of these 12-hour periods could include a requirement that 100% of changes be completed within the 12-hour period and that 95% of changes are completed within a six-hour period. The DGS also recommends standard-format statistical reporting requirements for each CLC, LEC and the 911 Data Manager to provide information on an individual and global basis. \par\par Pacific states each LEC is different, and that a CLC can have activated Data Management Services from Pacific upon 911 trunk activation if the CLC has the appropriate electronic file transfer capabilities. Pacific states that it can transfer information on the CLC's end user to the ALI retrieval system and the Selective Router within 24-48 hours. \par\par GTEC suggests a uniform 48-hour time limit for processing 911 database information once it is received from the CLC, assuming that accurate information is provided by the CLC in agreed-upon formats. \par\par The Coalition recommends that the time allowed for Pacific and GTEC to update their 911 record information with customer information \'5B*81\'5D submitted by CLCs be tariffed at 48 hours. The Coalition notes GTEC's statement that if it detects an error when the CLC submitted data is compared to the MSAG, GTEC will return the data within two business days to the CLC for correction. The Coalition asks that this two-day time period be tariffed as well. \par\par DRA views customer location data as crucial for providing ALI to the local PSAP, and recommends that the Commission require the CLC to electronically provide the LEC with customer location data no later than 24 hours after service order completion. \par \par Discussion \par\par Since access to 911 service is essential to the health and safety of each Californian, we intend that the time allowed to process transactions associated with 911 end user information be as short as possible and uniform across LECs. CLCs should provide information on new customers to the LEC within 24 hours of the order completion. LECs should update their databases within 48 hours of receiving the data from the CLC, a time frame both Pacific and GTEC state they can meet. If the LEC detects an error in the CLC-provided data, the data should be returned to the CLC within 48 hours from when it was first provided \'5B*82\'5D to them. Pacific and GTEC should include these terms in their E-911 tariffs. \par\par 7. Provisions for Obtaining Master Street Address Guide (MSAG) Data \par\par The MSAG is used in creating the Telephone Number to Emergency Service Number (TN-ESN) record in the 911 Selective Routers and to create the ALI record in the ALI data base. Each county owns its MSAG data, but Pacific and GTEC store and update the data in their 911 Management Systems. \par\par DGS states that under the proposed serving arrangement, only Pacific and GTEC will continue to provision 911 Selective Routers and ALI data bases. DGS thus does not see a clear need for CLCs to access the MSAG data. \par\par Pacific states that a CLC may purchase MSAG from Pacific, and that Pacific can internally process the CLC's request for MSAG within 48-72 business hours. Pacific notes that delivery time will be dependent on the requested means of postage and delivery. \par\par GTEC states that it is willing to provide MSAG information to a CLC if GTEC has received authorization from the counties who GTEC says own the MSAG data. Once authorized, GTEC is willing to provide the MSAG information on paper, diskette, or magnetic tape, at a cost that will depend on \'5B*83\'5D how much of the MSAG is needed, the number of copies, and the frequencies of updates required. GTEC is willing to provide time and material rates for this service, or is willing to develop separate contractual rates depending on the level of support requested by each CLC. \par\par Citizens believes that LECs should provide MSAG to the CLCs on the same terms and conditions that MSAG is provided to other carriers. \par\par The Coalition recommends that Pacific and GTEC be required to provide MSAG data on tape at tariffed rates and in a standard format suitable for use with desktop computers. The Coalition doubts GTEC's contention that ownership rights to MSAG are retained by the counties and that the CLC must obtain authorization to access the LECs' MSAG data from the appropriate county. To the extent that GTEC's contention is true, the Coalition recommends that the Commission seek to absolve the LECs of any liability for use or distribution of the MSAG data for 911 services. \par\par DRA states that LECs are the designated service providers of last resort, and as such, the LECs have to coordinate with the county address data administrators to update their customer address records. DRA believes that the CLCs \'5B*84\'5D should be able to obtain MSAG data from the LECs, and recommends that the LECs be required to offer the MSAG data to the CLCs at tariffed rates. DRA recommends that the LECs be required to file their tariffs by December 15, 1995, and should GTEC fail to do so, then GTEC should be required to concur in Pacific's tariff. \par \par Discussion \par\par We shall require Pacific and GTEC to ship MSAG data within 72 business hours from the time requested. This is the maximum amount of time Pacific stated it would need, and GTEC did not indicate a longer time was necessary. We are unpersuaded by GTEC that CLCs must first obtain the county's authorization before GTEC may supply the MSAG data since Pacific views county authorization as unnecessary. \par\par The LECs should provide the MSAG data on paper, diskette, magnetic tape, or in a format suitable for use with desktop computers. Each LEC may charge, on a nondiscriminatory basis, its cost for offering MSAG data. The requirements we set forth today for the provision of MSAG data should be incorporated into Pacific's and GTEC's tariffs. \par\par 8. Adequacy of 911 Tandem Location Maps for Establishing 911 Tandem Links by January 1, 1996 \par\par DGS, the Coalition, \'5B*85\'5D and DRA have not yet seen the LECs' maps and thus could not comment on their adequacy. The Coalition recommends that Pacific and GTEC provide the maps at a set price. Following receipt of the maps by interested parties, the Coalition recommends that the Commission order a workshop, moderated by an ALJ and completed by mid-December, to resolve issues of exactly what information the maps should contain and any other database issues. Following the workshop, the Coalition asks for a ruling to be issued promptly to ensure that 911 service can be guaranteed by CLCs by January 1, 1996. \par\par Pacific states that its router maps will be available by December 15, 1995, at a cost of $50 to $75. Pacific says its maps will reflect the selective router tandem locations as the end office codes that terminate at the specific selective router tandems. \par\par GTEC believes that information currently available to the CLCs is sufficient for the CLCs to establish tandem links by January 1, 1996. GTEC states that it intends to recover the cost of providing information to the CLCs through contracts. The information GTEC states is currently available to the CLCs is as follows: (1) A listing by GTEC's E-911 tandems \'5B*86\'5D of all of the central offices and NXXs served by that tandem cross referenced with the district in which the central office is located; (2) A map of GTEC's E-911 network reflecting the applicable LATAs, the central office districts, and the E-911 tandems; and (3) An exchange map reflecting the general coverage of the GTEC's E-911 tandems, but requiring the detailed street information and the Emergency Services Number to be obtained from the MSAG. \par\par Citizens believes that Pacific's provision of 911 route locations would be timely enough to allow service by January 1, 1996. Citizens recommends that Pacific should provide the vital information to other local carriers at no charge and recover the costs as part of the 911 service offering as is done today. Citizens provided no comments regarding GTEC. \par\par DRA notes that Pacific has filed an advice letter to establish rates and charges for its E-911 and related service, but states that the tariff includes no rate for providing 911 router maps. DRA thus recommends that Pacific include in its tariff a rate for providing 911 router maps. GTEC has not filed tariffs for E-911 service, and DRA recommends that GTEC be required to do so, including \'5B*87\'5D tariffs for providing 911 router maps, by December 15 in order to allow CLCs to provide 911 service by January 1, 1996. \par \par Discussion \par\par We agree that Pacific and GTEC should offer the maps on a nondiscriminatory basis at a set price. Accordingly, Pacific and GTEC shall charge their cost for provisioning the maps, and the specific charge should be set forth in their tariffs. We reiterate that Pacific and GTEC are to provide the information necessary for CLCs to provide 911 service to their customers on January 1, 1996. Any failure by a LEC to supply the requisite information should be brought to our attention in the dispute resolution process described elsewhere in this decision. \par\par 9. Requiring CLCs to Obtain an 800 Number for PSAPs to Access Subscriber Information \par\par Currently, incoming 911 calls are routed to a PSAP. The PSAP accesses the ALI database which displays the address/location of the originating 911 call. If the PSAP attendant finds that the address/location information is wrong, the PSAP attendant calls the LEC to verify the address/location information to properly guide the emergency service providers. DGS proposes expanding this arrangement to include CLCs \'5B*88\'5D as well as LECs. \par\par The parties either support or do not oppose a requirement that CLCs provide a 24-hour contact point where PSAPs can obtain subscriber information in support of an active 911 call where the subscriber's proper address was not automatically forwarded with the call and the calling party is unable to provide their address. Citizens would oppose, however, any type of automated direct access to carrier's subscriber records. \par\par Most parties' comments either supported or did not oppose the formation of an industry-led task force to monitor, enforce, and distribute the subscriber record access telephone numbers and 5-digit company codes. DRA recommends that enforcement of the requirement for CLCs to provide a 24-hour 800 number for inquiries from PSAP attendants should be the responsibility of the E-911 service administrator, which is DGS. \par \par Discussion \par\par Before CLCs provide service to customers, they must establish a 24-hour toll free number as a contact point where PSAPs can obtain subscriber information. We are not prepared at this time, however, to allow any type of automated direct access to CLC's subscriber records since there is insufficient information on the \'5B*89\'5D record concerning privacy issues associated with accessing subscriber records. We will therefore require that the 24-hour point of contact must always be staffed by competent and trained personnel. \par\par We will also require that an industry-led task force be formed to monitor, enforce, and distribute the subscriber record access telephone numbers and five-digit company codes. CACD shall report back to us within 90 days on parties' progress in forming the industry-led task force. \par \par B. Intercompany Interconnection Service Order Reporting Standards Under GO 133-B \par\par Ordering Paragraph (OP) 7 of R.95-04-043 issued April 26, 1995, directed the General Order (GO) 133-B Review Committee to develop standards for interconnection service orders. n9 The Committee was to report its draft GO 133-B revisions to the Commission Advisory and Compliance Division (CACD) by December 31, 1995. Subsequently, in Decision (D.) 95-07-054, OP 8, the Commission ordered the following modification: \par \par \'22DRA shall notify the Commission by October 1, 1995 as to whether the Committee has reached consensus on recommendations for additional standards for interconnection service orders. If no consensus recommendations \'5B*90\'5D have been reached, the ALJ will thereafter issue a ruling establishing a date for parties to serve testimony on this issue. If a consensus has been reached by that date, the ALJ will establish a due date for a consensus report to be filed.\'22\par n9 GO 133-B sets forth uniform standards of service to be observed in the operation of telephone utilities as well as quality of service reporting requirements. The charter for the GO 133-B Committee is set forth in Part 5 of GO 133-B. \par\par On October 2, 1995, DRA reported to the assigned ALJ on the progress of the GO 133-B Review Committee in developing interconnection standards. DRA reported that the participants were able to agree on only the following issues: \par \par 1. The service quality standards for Intercompany Interconnection Held Service Orders (IIHSOs) should be included in a separate section of GO 133-B. \par \par 2. Participants reaffirm that all LECs and CLCs shall be subject to GO 133-B IIHO reporting standards.\par The assigned ALJ issued a ruling on November 13, 1995, which directed parties to file written comments by November 27, 1995, addressing additional standards for interconnection service orders. \par \par Parties' Positions \'5B*91\'5D \par \par Pacific \par\par Pacific recommends that IIHSO service reporting be instituted concurrently with the introduction of facilities-based competition. For clarity, Pacific proposes that \'22Intercompany Interconnection Service Order\'22 (IISO) be defined as \'22a request for interconnection of trunks and/or facilities between LECs and/or CLCs.\'22 Also for clarity, Pacific proposes that an IIHSO be counted as held when service is not provided within 15 days of the mutually agreed-upon due date for the completion of the request for the IISO. \par\par Pacific recommends that IIHSOs be compiled and reported on a monthly basis in a format as appended to its comments. In its proposed report, Pacific would require each LEC and CLC to report for each IIHSO the following: (1) the service order number; (2) the due date; (3) the company requesting interconnection; (4) whether the IIHSO is overdue by 15-20, 21-25, 26-30, 31-35, 36-40, or over 40 days; (5) the reporting unit (wire center or plant installation center); (6) whether the IIHSO is pending or complete; and (7) an explanation for the IIHSO. \par\par Pacific recommends that there be no automatic penalty mechanism built into the IIHSO reporting standard since a variety \'5B*92\'5D of circumstances beyond the LEC's control may cause IIHSOs, such as natural disasters, labor disputes, and civil disturbances. Pacific recommends that any LEC or CLC that feels it is being treated unfairly can bring the matter to the Forum OII or the Commission's formal and informal complaint process. \par \par GTEC \par\par GTEC states that IIHSOs reporting standards should be the same as that for end user held service orders which are reported quarterly to the CPUC. The report lists service orders that are held for specific reasons, and which are held for varying intervals. GTEC supports using the report form proposed by Pacific, with some minor modifications. GTEC recommends that no additional IIHSO reporting requirements be mandated. GTEC recommends that all facilities-based carriers begin submitting the reports 30 days after the first quarter of 1996; and resellers 30 days after the end of the second quarter of 1996. \par\par GTEC sets forth interval provisioning standards in its proposed interconnection tariff, which are consistent with the intervals GTEC presently provides to its end users. GTEC recommends that all other provisioning standards be determined by contract. According to GTEC, \'5B*93\'5D contracts permit the flexibility necessary to accommodate the unique network arrangements, and other specific needs of each individual CLC. GTEC also states that contracts have traditionally been used for LEC-LEC interconnections and for the provision of 411, local intercept, and E-911 routing. Allowing contracts with CLCs, according to GTEC, would thus result in equal treatment of LECs and CLCs. In the event GTEC and a CLC cannot reach a contract, GTEC recommends use of the Forum OII to resolve the dispute. \par\par Once the parties agree on a due date for the provisioning of a particular service from a LEC or CLC, the Held Order report would only be required if the service order is 30 days past due which GTEC states is consistent with the present Held Order reporting requirements of GO 133-B. GTEC proposes that the 30-day requirement could transition downward to 20 days after six months, and 15 days after nine months as all parties because familiar with LEC-CLC interconnection process. Ultimately, the new section of GO 133-B could contain a sunset clause which will require the Commission and the parties to determine if the Held Service Order reporting process is still necessary. \par \par \'5B*94\'5D Coalition \par\par The Coalition recommends that a service order which misses its commitment date by five days should be counted as a held order and reported to the Commission in intervals so that an order held for five days can be distinguished from one that is held for 30 days. \par\par To protect against abuses by LECs, the Coalition recommends a penalty mechanism for held orders in which a LEC would have to refund the installation charges associated with each held order. To implement the penalty mechanism, the Coalition recommends the following language be included in GO 133-B: \par \par a. Description. An intercompany interconnection service order will count as a held service order when service is not provided within five (5) days of the mutually agreed upon service date. \par \par b. Measurements. Count once a month the total intercompany interconnection service orders not completed by the service due date for the previous 30 days for each interconnecting company. Separate the results into four categories as follows: 0-4 days; 5-15 days; 16-30 days; and over 30 days. \par \par c. Reporting frequency. Compiled monthly and reported monthly on the last day of the following month. \par \par d. Penalty \'5B*95\'5D mechanism. Installation charges will be credited to the company requesting interconnection when the interconnection service is not provided by its service due date.\par The Coalition endorses Pacific's report format for held orders. The Coalition does not support a sunset date for the IIHSO report until few, if any, held orders are reported. \par\par The Coalition recommends that end user GO 133-B standards and the proposed intercompany interconnection held order standards apply to all telecommunications companies. Finally, the Coalition recommends that the GO 133-B intercompany interconnection standard be revisited once the Commission has adopted physical interconnection standards. \par \par DRA \par\par DRA believes that standards for carrier-to-carrier interconnection should be established and incorporated into GO 133-B; and that the standards be in place by December 29, 1995, in order for competitors to effectively enter the market on January 1, 1996. DRA strongly opposes any new standards or allowing standards to be negotiated on a case-by-case basis between carriers. \par\par DRA recommends that the new service standards encompass held orders and service provisioning intervals. DRA believes that \'5B*96\'5D all carriers should report monthly on the new service standards which should be separately reported from end-user service standards. DRA recommends that the LECs' service standard reports be broken down by individual CLCs in order to assess if a particular CLC is being treated in a discriminatory manner by a LEC. DRA believes that the Commission's current service quality auditing measures are sufficient for verifying the accuracy of carrier-to-carrier service standard reports. DRA recommends that additional GO 133-B Committee meet-and-confer sessions should be held to establish the specific standards and reporting units. Finally, DRA suggests that negative incentives such as a penalty be established for serious violations of GO 133-B interconnection standards. \par \par Discussion \par\par In our order of April 1995, we expressed concern about intercompany interconnection service quality. n10 Interconnection among local carriers is a prerequisite for the development of local exchange competition and the deployment of an ubiquitous public communications network connecting all Californians to one another and beyond. Our concern over the availability and quality of intercompany interconnection \'5B*97\'5D service standards led us to direct the GO 133-B Committee to develop standards applicable to interconnection service orders. n11 The GO 133-B Committee was able to provide only two relatively minor recommendations that (1) interconnection standards should be a separate part of GO 133-B, and (2) any interconnection standards should apply to all LECs and CLCs. We find these two recommendations to be reasonable and will adopt them. \par\par n10 R.95-04-043/I.95-04-044, mimeo. p. 7. \par\par n11 (Ibid.) \par\par We intend to rely on contracts rather than tariffs to govern intercompany interconnection arrangements. We agree with GTEC that contracts provide the flexibility necessary to accommodate the many different network interconnection arrangements necessary for the LECs and CLCs to interconnect. We disagree with GTEC, however, that we should not specify certain uniform intercompany interconnection standards. For effective local competition to exist, interconnection must take place in an efficient and timely manner. We will address here the standards required to achieve this goal. We specify elsewhere in this decision those parameters necessary to ensure that interconnection occurs in an efficient \'5B*98\'5D manner. \par\par No party recommended that we establish standards governing the amount of time required to provision any specific interconnection arrangement. Instead, the parties focused on a local carrier's failure to provide any interconnection arrangement in the time frame agreed to by the carrier. We agree with the parties' focus since we could not realistically specify a standard provisioning time for each of the innumerable intercompany interconnection arrangements that are possible. \par\par All the parties agreed that the Commission should monitor each carrier's IIHSOs, but could not agree on what IIHSOs should be reported to the Commission. We will adopt Pacific's proposal that a IIHSO be reported when the service is not provided within 15 days of the mutually agreed-upon due date. We find the Coalition's proposal for a five-day reporting standard to be too short for several reasons. First, we do not want to provide an incentive for a local carrier to incorporate extra slack when negotiating service due dates in order to avoid the possibility of reporting a held service order. Second, local carriers may occasionally misjudge service due dates, and we do not want to penalize honest errors \'5B*99\'5D in judgment by requiring local carriers to report the service orders held for only a few days. Finally, we want to balance the need for local carriers to report held service orders with tracking and reporting costs that increase as reporting intervals decrease. Conversely, GTEC's proposed 30-day standard for reporting held service orders is too long. Orders held longer than 15 days will negatively impact competitors who relied upon the promised due date in making their own service commitment dates to their customers. In addition, service orders held for fifteen days may indicate a service quality problem that should be investigated by the CPUC. \par\par Most parties supported a requirement that IIHSO be compiled and reported on a monthly basis. We find the monthly reporting requirement to be reasonable, and direct the local carriers to file their IIHSOs on the last day of the following month as recommended by the Coalition. All the parties were generally supportive of Pacific's proposed IIHSO report format. Since Pacific's proposed report contains most of the information necessary for reporting on IIHSOs, and we will adopt it with the one minor modification of adding an additional interval. \'5B*100\'5D Therefore, the IIHSO report we adopt today should contain the following information: (1) the service order number; (2) the due date; (3) the company requesting interconnection; (4) whether the IIHSO is overdue by 15-20, 21-25, 26-30, 31-35, 36-40, 40-45, and over 45 days; (5) the reporting unit (wire center or plant installation center); (6) whether the IIHSO is pending or complete; and (7) an explanation for the IIHSO. We will add to this list DRA's suggestion that the LEC's reports be broken down by individual CLCs in order to help us assess if a particular CLC is being treated in a discriminatory manner by a LEC. We agree with DRA that the Commission's current service quality auditing measures are sufficient for verifying the accuracy of carrier-to-carrier service standard reports. Since we do not know how long the IIHSO reporting requirement will remain necessary, we will not establish a sunset clause at this time for IIHSO reporting requirements. \par\par We will require that IIHSO service reporting be instituted beginning January 1, 1996, so that we may monitor interconnection service quality from the start of local exchange competition. To reduce the potential number of disputes over \'5B*101\'5D held service orders, we will adopt Pacific's proposal to define an \'22Intercompany Interconnection Service Order\'22 as \'22a request for interconnection of trunks and/or facilities between CLCs and/or LECs.\'22 Since we have established service standards and reporting units, DRA's recommendation for additional GO 133-B Committee meet-and-confer sessions is unnecessary. \par\par We recognize that an IIHSO reporting requirement is not the same as a requirement that local carriers provision interconnection arrangements in a timely manner. We understand that held service orders may have significant negative impacts on the quality of service provided to the customers of the entity requesting interconnection. Therefore, as an incentive to provide timely service order completion, we will require all local carriers to refund nonrecurring interconnection charges for service orders held 45 days beyond the mutually agreed upon service date. The refund provision we establish today will not apply if service order completion was delayed due to natural disasters, severe weather, labor disputes, or civil disturbances. If a company feels a particular refund is unfair, it may bring its case to us via the dispute resolution \'5B*102\'5D process described elsewhere in this decision. \par \par C. 611 Repair Service \par\par The adopted interim rules set forth in Appendix A of D.95-07-054 included a provision that: \'22LECs and CLCs shall develop a program to address the issues regarding access to repair service, i.e., 611, to ensure its integration in the environment of local exchange competition.\'22 (Rule 4.F.(11).) \par\par The assigned ALJ directed by ruling dated August 18 that a report be filed by the LECs and CLCs regarding the development of a program for access to 611 repair service to ensure its integration into the competitive local exchange environment. \par \par Pacific \par\par On October 2, 1995, Pacific filed a report describing its 611 repair service access, as follows. An end user who calls \'22611\'22 and reaches Pacific's Repair Service will be connected to the Customer Contact Services Node (CCSN) which is an Automated Voice Response Unit (AVRU). The end user is prompted to type in his or her telephone number. The CCSN then identifies whether the end user's local exchange carrier is Pacific or a CLC based on the NPA-NXX of the telephone number the end user types in. If the customer is not Pacific's customer, the CCSN will access \'5B*103\'5D a CLC referral number table to locate the CLC who serves the end user. The CCSN will then inform the end user that: \'22This is not a Pacific Bell telephone number.\'22 And announce the name of the CLC and the CLC's Repair Service Number, stating that the number was provided to Pacific by the CLC. Pacific will employ this referral process for CLC end users who have retained their former telephone number through their CLC's use of Pacific's interim number portability service. \par\par If the end user's telephone number is not found, the CCSN will transfer the end user to a Pacific Bell Customer Service Representative, who will attempt to find the end user's telephone number through other means. If found, then the service representative gives the end user the CLC Repair Service number found in the CLC referral table. If the number is still not found, the service representative will tell the end user to contact his or her CLC directly by referring the end user to his or her CLC bill or to use Directory Assistance. Pacific will not perform screening, testing or trouble isolation service to determine the source or location of a problem (e.g., trouble reports on inside wire) for end users who are not \'5B*104\'5D its customers. In order for Pacific to provide this referral service for any calls to its repair bureau (611 calls) or calls to its business office, to consumers without charge, Pacific proposes that it not be liable to end users, or to other providers, if it inadvertently directs a customer to an incorrect referral number. \par\par For calls to Pacific's business offices from CLC customers, an AVRU will answer the call asking the end user to type in his or her telephone number. The CCSN will perform the same process as it does for calls coming in to the repair bureau on a \'22611\'22 basis. For example, if the end user is not its customer of record, the CCSN will access a CLC referral number table and, if found, announce the name and service repair number of the CLC. The CCSN will identify whether the end user is a Pacific Bell customer or not. If the customer is not a Pacific Bell customer, and the end user's CLC is not found, the service representative will direct the customer to refer to his or her CLC bill or to directory assistance for a referral number. \par \par GTEC \par\par GTEC believes the responsibility for providing repair service and handling customer inquiries regarding repair is that \'5B*105\'5D of the service provider, and that the CLCs should bear the cost of addressing and satisfying their customer repair service needs. While GTEC expresses a willingness to work cooperatively with the CLCs and the Commission to minimize consumer confusion in the initial phases of local competition, it objects to the imposition of additional operational costs associated with addressing repair service needs of non-GTEC customers. \par\par GTEC intends to handle repair calls placed to its 611 repair service from a CLC customer as follows. Upon receipt of a CLC customer call to a GTEC repair number, GTEC will verify through existing GTEC database systems that the calling party is not a GTEC customer. GTEC's database system does not provide for the identification of the service provider responsible for the calling party's local exchange service. However, GTEC will refer the calling party to the appropriate CLC, so long as all certificated CLCs provide appropriate reference numbers for this purpose. If the calling party does not know the identity of his or her local service provider, GTEC will refer the calling party to their telephone bill or to the Commission for further assistance. \par\par GTEC suggests \'5B*106\'5D that the Commission establish a telephone contact number for the purpose of allowing consumers to contact their service provider, if they do not know who their service provider is. Accordingly, the Commission could order each CLC to provide it with sufficient information to allow the Commission to make a referral to the appropriate CLC. GTEC will not perform any repair service function for non-GTEC customers. \par\par Unlike Pacific, GTEC does not have the associated CCSN and associated databases. In summary, GTEC objects to providing any repair service function for a competitor, without appropriate compensation. In GTEC's view, a referral to either the CLC itself or the Commission for further assistance is a reasonable resolution to any repair service problems. \par \par DRA \par\par DRA recommends that each carrier utilize its own service technicians beginning January 1, 1996. If they are not ready to provide their own technicians on this date, CLCs should be required to provide an implementation timeline to the Commission stating when they intend to begin servicing their own customers. \par\par DRA further believes that ample customer notice must be given as to how the 611 system will work once competition \'5B*107\'5D is in place. Questions as to who the customer should notify, and how their service will be provided and by whom, need to be addressed in a notice to the customer. Customers should be notified on their bill as well as when they initiate service if they choose a carrier other than the one they currently utilize. This is one reason DRA supports a \'22universal\'22 611 system such as described above. The customer could continue to dial 611 for their repair needs as they currently do, instead of having to learn other numbers. \par\par DRA is also concerned about who will handle major outages. It seems that the carrier who provides the service would also take care of any outages. However, DRA is uncertain as to how this arrangement would work in the resale environment. \par\par DRA believes that the 611 system should be universal such that a customer of any carrier who dials 611 and enters their phone number will, through an automated system, be connected to their appropriate carrier. Another possibility that would cut down on customer frustration would be to have the customer automatically forwarded to their carrier after dialing 611. A live operator would replace the automated system and that operator upon \'5B*108\'5D receipt of the customers' phone number would then forward the customer to the appropriate carrier's repair service. \par\par DRA believes that a one-day workshop should be convened to provide the CLCs and LECs an opportunity to address the issues identified by DRA. \par\par The Coalition did not address 611 Repair Service and Reporting requirements for facilities-based competition although it did address the issue in reference to resale-based competition in its Phase II reply comments. Information was provided in Pacific's comments regarding how two CLCs, Teleport Communications Group (TCG) and Metropolitan Fiber Systems (MFS) intend to provide 611 service. \par\par If a customer of another LEC or CLC contacts MFS in error, MFS will refer the caller to an 800 number that is associated with Pacific's 611 repair bureau. (MFS will provide its own customers with a toll free repair service referral number.) Once the end user reaches the Pacific repair bureau, his or her call will be handled as specified in the Pacific procedures outlined above. \par\par TCG intends to provide its customers with a toll-free number to call to report TCG service problems. Calls to 611 on TCG lines would be answered by an intercept message \'5B*109\'5D such as one of the following: \par \par \'22If you are a TCG customer who wishes to report a service problem, please call 1-800-NXX-XXXX. \'5BTCCG's toll-free repair number.\'5D If you are the customer of another company, you will need to call that company's repair number, which you should be able to find on your monthly bill.\'22 \par\par or \par \par \'22If you are a TCG customer who wishes to report a service problem, please call 1-800-NXX-XXXX. \'5BTCG's toll-free repair number.\'5D If you are the customer of another company, please call 1-800-NXX-XXXX.\'22\par \par \par This second 800 number would be Pacific's 800 repair service number. Pacific's AVRU process would then begin as outlined above in the description of our procedures. \par \par Discussion \par\par It is essential that all local exchange customers have ready access to repair services whether they are the customer of a LEC or a CLC. As a prerequisite to initiating service, we shall require each certificated CLC to be equipped to respond promptly to their customers' 611 repair service calls. The CLC can either utilize their own service technicians or enter into contractual arrangements to have repair orders serviced promptly. \par\par We shall adopt DRA's proposal that ample customer \'5B*110\'5D notice be given as to how the 611 system is to work with the introduction of multiple local exchange service providers. Accordingly, each CLC shall be required to disclose the procedure for contacting repair service at the time the customer initiates service as well as on the monthly customer bill. In the Consumer Protection Rules we adopted in this proceeding on April 26, 1995, we required each CLC to provide a phone number that the CLC's customers could call for billing or other service inquiries. We shall require at a minimum that CLCs use this number as a contact for customers to call for repair service. \par\par We are satisfied that Pacific's proposed 611 referral system provides a workable interim solution for directing CLC customers who dial \'22611\'22 and reach Pacific's Repair Service. Although GTEC does not have the CCSN and associated data bases to allow it to provide a service similar to that of Pacific, we expect it to institute a referral system to direct CLC customers to the appropriate CLC or to their phone bill for the number of the appropriate CLC for service. Alternatively, if the CLC's identity is unknown, GTEC shall direct the caller to the phone number of the Commission's \'5B*111\'5D Consumer Affair's Branch for further assistance. Likewise, we expect each CLC to show the same cooperation in directing calls of other competitors' customers who may call seeking repair service. \par\par Our adopted rules with respect to 611 service addressed in this decision apply only to facilities-based CLCs. We recognize that additional concerns may need to be addressed with respect to the provision of 611 service by resale-based CLCs. We shall review parties' Phase II comments regarding rules for resale competition and assess the need for a workshop or other input before adopting any additional 611 repair service rules applicable to CLC resellers in our Phase II decision scheduled for early 1996. \par \par D. Deaf and Disabled Telecommunications Program (DDTP)Program \par\par On October 18 and 19, 1995, a workshop was conducted as directed by ALJ ruling to address how the Deaf and Disabled Telecommunications Program (DDTP) is to be administered to assure adequate service access by the deaf and disabled population with the advent of competitive local exchange service. A workshop report was produced on December 11, 1995. The workshop participants reached the following consensus: \par \par . For a \'5B*112\'5D short, interim period, CLCs should contract with one of the incumbent providers to offer equipment and services to eligible deaf and disabled customers as part of the DDTP. \par \par . CLCs can choose from the following incumbent providers: Pacific, GTEC, California Telephone Association (CTA) or Thomson Consulting which performs DDTP functions for CTA. \par \par . Each CLC shall include in its tariffs provisions specifying how it will provide DDTP services. \par \par . The DDTP should be authorized to submit a request to modify its 1996 Budget, if necessary, to estimate any changes in costs associated with accommodating interim participation by CLCs. \par \par . Future workshops should be held early in 1996 to determine how CLCs should participate in the DDTP over the long term. \par \par . The Commission will inform all CLCs of their responsibility to collect and remit surcharge revenues.\par \par \par We have reviewed the consensus findings and adopt them without change. \par\par V. Additional Rules Governing CLC Entry and Regulation \par \par A. CLC Financial Responsibility Requirements \par\par The Commission's Interim Rules for local exchange competition set forth in D.95-07-054 require CLCs to meet certain financial standards \'5B*113\'5D in order to obtain a CPCN. In particular, facilities-based CLCs are required to possess a minimum $100,000 of cash or cash equivalent, while resale CLCs must have a minimum of $25,000 of cash or cash equivalent. In addition, all CLCs must demonstrate they have the resources needed to cover any deposits required by LECs and IECs. n12 In D.95-07-054, we permitted parties to file additional comments on Pacific's and GTEC's proposed additional financial requirements for CLCs that are more stringent than those adopted in our Interim Rules. \par\par n12 D.95-07-054, Appendix A, Section 4.B(1) & (2). \par \par Parties' Positions \par \par Pacific \par\par Pacific seeks authority to charge CLCs a deposit in order to protect Pacific and its customers from losses should a CLC business fail. The amount of the deposit would not exceed the actual or estimated rates and charges for a two-month period. Pacific would require no deposits from customers who have previously established credit with Pacific and have no history of late payments to Pacific. As justification for its proposed deposits from CLCs, Pacific states it currently has identical deposit requirements for those using its intrastate access tariffs. \'5B*114\'5D \par \par GTEC \par\par GTEC recommends that CLCs should be required to post a bond of $1 million in order to receive a CPCN to provide local exchange services. GTEC believes a substantial bond is necessary in order to protect consumers, LECs, and other carriers in the event the CLC becomes insolvent. \par\par As evidence of the need for a substantial bond requirement, GTEC points to the recent example of Sonic Communications (Sonic). According to GTEC, Sonic switched long distance service from other carriers to Sonic without the customers' consent, a practice known as slamming. The rates charged by Sonic were generally two to three times those of the customer's former long distance carrier. Sonic's slamming eventually caused the Commission to open I.95-02-004. During the course of its investigation, the Commission asked GTEC to compile a list of Sonic's customers and to estimate the cost necessary to rerate the calls of Sonic's customers. GTEC eventually determined its cost for rerating to be over $1 million. Sonic ultimately filed for bankruptcy, leaving no funds to cover GTEC's costs for rerating or for refunds to Sonic's customers. According to GTEC, even if Sonic had posted a $1 million \'5B*115\'5D bond, this would have been insufficient to cover the cost of identifying the customers, rerating their calls, and reimbursing the customers. The lesson of Sonic, according to GTEC, is that the damage done by an unscrupulous carrier can mount quickly, and that a $1 million bond requirement is therefore reasonable. Citizens \par\par Citizens supports the Commission's financial standards for determining the financial competence of CLC applicants. Citizens recommends that CLC applicants who meet Commission criteria should not be subject to additional LEC-imposed requirements. \par \par Coalition \par\par The Coalition is opposed to the CLC bonding requirements proposed by Pacific and GTEC. The Coalition believes the large bond amounts proposed by the two LECs are meant to be anticompetitive by raising a barrier to CLC market entry and burdening CLCs with additional costs once they enter the market. \par\par In arguing against the LEC's proposed bonding requirement, the Coalition states that the Commission has never adopted a bonding requirement to protect LECs from the risk of insolvency by either facilities-based or reseller IECs, and there is no need to adopt such a requirement for CLCs either. The \'5B*116\'5D Coalition recognizes that a bond could help protect customer deposits in situations where a CLC required customer deposits before providing service. However, the Coalition believes such situations will be rare since a competitive environment will make it difficult if not impossible to require customer deposits. The Coalition believes that the safety of customer deposits can be properly addressed in the Commission's Rulemaking on customer deposits, R.85-08-042. \par \par UCAN \par\par UCAN recommends modification of the Commission's Interim Rules to include a requirement for CLCs to post a bond sufficient to protect customer deposits. The amount of the bond can be initially set by looking at the area to be served and the deposits the new entrant will be charging. Once service begins, UCAN states the bond amount can be adjusted based on actual data and the amounts held by the new entrant. \par\par To protect LECs, UCAN suggests that new CLCs be required to obtain a performance bond. The amount of such a bond would be based on estimated three months of flat or usage related interconnection charges. The posting of a bond would remove the necessity of LECs charging a deposit for interconnection costs \'5B*117\'5D and fees. \par\par UCAN is sympathetic to the concerns expressed by Pacific and GTEC regarding CLC bonding requirements, but finds each LEC's bonding proposal to be too extreme. UCAN opposes GTEC's $1 million bond requirement because UCAN finds it too arbitrary. UCAN supports Pacific's proposal that the bond be based on estimated interconnection costs, but opposes Pacific's recommendation that the bond be required of CLCs in addition to deposits made to the LECs. UCAN views a requirement of both bonds and deposits to be unnecessary and a possible barrier to entry. \par \par Toward Utility Rate Normalization (TURN) \par\par TURN, a member of the Coalition, offered its own separate recommendation regarding the safety of customer deposits. TURN proposes a requirement that any customer deposits collected by the CLC be placed in a protected, segregated interest-bearing escrow account subject to Commission oversight. If this approach fails to protect customers adequately, TURN recommends that other means should be explored to ensure the safety of customer deposits. TURN shares the Coalition's concern that the LECs have proposed a bonding requirement for anticompetitive reasons. \par \par Discussion \'5B*118\'5D \par\par In considering parties' proposals for imposing additional financial requirements on CLCs, we must balance countervailing factors. On the one hand, we seek to adopt rules which will enhance the incentive for the competitive entry of a large number of service providers. Imposing unduly large financial restrictions on CLC entrants may tend to inhibit market entry and impede the growth of a competitive market. On the other hand, our adopted rules must ensure that the public is protected against degradation of service quality as a result of the lack of technical or financial integrity of a certificated CLC. On balance, while we believe some additional protections are warranted, we conclude that the proposals of GTEC and Pacific are overly restrictive and would unnecessarily inhibit the growth of promoting local exchange competition. \par\par We decline to adopt GTEC's proposal for a $1 million bond requirement. GTEC fails to provide evidence that a $1 million bond is required from every certificated CLC. GTEC's example of Sonic Communications, while real, is one case of an apparently unscrupulous IEC causing serious financial harm in California. GTEC provides no analysis of the expected magnitude \'5B*119\'5D or likelihood of similar costs it might incur in the future as a result of CLC entry. Imposition of GTEC's proposed $1 million bonding requirement on every CLC would therefore result in arbitrary and excessive restrictions on CLC entry and impede our goal promoting of local exchange competition. \par\par While we find GTEC's proposed $1 million bonding requirement unacceptable, we conclude that some additional level of financial protection is appropriate. We conclude that Pacific's proposal to require CLCs ordering interconnection service to pay a deposit under terms patterned after Pacific's intrastate access tariff provides a more reasonable approach to protecting against the risks of insolvent CLCs. Under Pacific's proposal, CLCs ordering interconnection service would pay a deposit equal to an estimated two months of recurring flat-rated or usage-based interconnection charges based on the number and type of interconnection facilities ordered from the LEC. Unlike the proposal of GTEC, Pacific's proposal is not arbitrary. Pacific's proposal would tailor the amount of the deposit to the actual rates and charges incurred by the CLC. It would also only apply where no prior credit record had \'5B*120\'5D been established by the CLC. Pacific's proposal is consistent with our July 1995 Interim Rules which require CLCs to document that they possess the resources necessary to cover the deposit requirements of LECs and IECs. Pacific may not, however, require a bond in addition to deposits. \par\par We shall also adopt the proposal of TURN to require that any customer deposits collected by a CLC be deposited in a protected, segregated interest-bearing escrow account subject to Commission oversight. This requirement will protect customers and provide assurance that customer deposits are not commingled with other company funds or otherwise available for unauthorized uses. We shall direct CACD to establish reporting procedures to monitor compliance with this order. \par \par B.Bilingual Policies \par\par In prehearing statements filed August 9, 1995, and in remarks at the prehearing conference of August 11, 1995, Public Advocates proposed that the Local Competition docket resolve certain universal service issues concurrently with the initiation of local competition in January 1996. In the ALJ Ruling of August 18, 1995, parties were allowed to submit comments regarding Public Advocates' proposal to require \'5B*121\'5D CLCs to prevent redlining and provide bilingual customer information notices to non-English-speaking customers, particularly as to basic and lifeline service. We have reviewed parties' comments and address them as outlined below. \par \par Parties' Positions \par\par Public Advocates recommends that the Commission specify bilingual service requirements for LECs and CLCs from the outset of competition in order to achieve the Commission's 95% universal service goal for the non-English speaking population. The specific bilingual service requirements recommended by Public Advocates are as follows: \par \par (1) Every CLC should inform each new customer, and regularly inform existing customers, of the availability, terms, and statewide rates of lifeline telephone service and basic service. Public Advocates recommends that this information (and other information such as bills and notices) be provided to non-English-speaking customers in the common languages spoken within the exchange or larger territory, including Spanish, Cantonese, Mandarin, Tagalog, Vietnamese, and Korean. \par \par (2) Each carrier must have bilingual customer service representatives available in the common languages of the exchange. \'5B*122\'5D \par \par (3) Each carrier must conduct targeted marketing and outreach to non-English speaking populations.\par \par \par Pacific \par\par Pacific recommends that the Commission forego a mandate for the provision of bilingual services. In Pacific's view, the demands of the California market, and not a Commission order, should dictate whether bilingual customer services are offered. Pacific states that it currently provides and will continue to offer bilingual services to its customers. \par \par GTEC \par\par GTEC believes that standardized bilingual customer outreach and information would likely be ineffective in the new competitive market in which CLCs may be serving areas that are widely divergent in population make-up. According to GTEC, the bilingual customer market is rapidly growing and will be eagerly sought by many carriers. GTEC recommends that competitors not be hamstrung by standardized bilingual outreach requirements. Instead, competitors should be able to distinguish themselves in the bilingual market through innovative marketing efforts and services targeted to bilingual customers. GTEC believes that the annual reports required of the CLCs and LECs should allow the Commission to adequately \'5B*123\'5D monitor the sufficiency of the industry's bilingual customer outreach and information efforts. \par \par Citizens \par\par Citizens recommends that the Commission impose no multilingual customer information requirements on the CLCs. Citizens states that since CLCs have no captive customers, they will have an incentive to market effectively and provide good quality customer service to all potential customers. According to Citizens, production of multilingual customer outreach information will be incented by a marketplace driven by California' changing demographics. \par \par Coalition \par\par The Coalition supports the Commission's approach to bilingual customer outreach and education, and believes that it is premature to impose a more stringent requirement on CLCs. \par \par Discussion \par\par Our current Interim Rules for local exchange competition as adopted in D.95-07-054 require that CLCs making a sale in a language other than English provide the customer with a letter written in the language in which the sale was made describing the services ordered and itemizing all charges which will appear on the customer's bill. No other bilingual information or outreach rules were imposed. We will expand this \'5B*124\'5D to include a requirement for local carriers to inform each new customer, in writing and in the language in which the sale was made, of the availability, terms, and statewide rates of Universal Lifeline Telephone Service and basic service. On an ongoing basis, each local carrier shall also provide bills, notices, and access to bilingual customer service representatives in the languages in which prior sales were made. We adopt these additional requirements as appropriate steps in achieving our goal of improving the penetration rate of basic service to non-English speaking households. We do not believe, however, that the new requirements will impede the development of local competition. Indeed, our new requirements may facilitate competition by enabling carriers to better address the needs of underserved markets, thereby expanding the total number of residential customers, which in turn should attract additional providers of local telephone service. \par\par We will not address here Public Advocates' proposals concerning bilingual service requirements for customers to whom service was sold in English only, nor proposed across-the-board requirements for bilingual marketing and outreach. We believe \'5B*125\'5D these matters merit further consideration, but are better addressed in our Universal Service proceeding, R.95-01-020/I.95-01-021, where Public Advocates has presented the same recommendations as in this proceeding. n13 In our Universal Service proceeding, we proposed rules that would require all local carriers to be responsible for achieving our goal of 95% penetration rate among non-English speaking households, and that each carrier's efforts to communicate in the native languages of non-English speaking customers would be considered by the Commission in assessing each carrier's contribution to meeting our Universal Service targets. n14 We anticipate issuing final rules for Universal Service by approximately June 1996. In the meantime, we are optimistic that California's diverse population presents rich opportunities that will attract multiple providers offering bilingual services tailored to each market segment. Also, since the facilities-based CLCs are only beginning the process of obtaining customers, waiting until a decision in the Universal Service docket is issued is unlikely to have any serious impact. \par\par n13 See Public Advocates' Comments on D.95-07-050 and Proposed Rules, pp. 8, 23, and Appendix A to their comments. \'5B*126\'5D \par\par n14 D.95-07-050, Appendix A, Section 3.B. \par \par C. Redlining Prohibitions \par \par Positions of Parties \par \par Public Advocates \par\par Redlining occurs when there is an absence of competition in a given community because of a failure to provide marketing and outreach efforts to minorities, non-English speaking, and low-income populations. Public Advocates believes that redlining practices are being extended to enhanced and broadband services. To overcome redlining, Public Advocates recommends the following: \par \par . Each carrier must be responsible for the Commission's goal of at least 95% telephone penetration in poor, non-white, and non-English-speaking households. \par \par . Each carrier must actively market its telephone services to the above identified households and small businesses throughout each exchange or larger territory in which it operates. \par \par . Each carrier must develop and submit one-year, two-year, and five-year business plans with detailed targets towards obtaining the Commission's goal among poor, non-white, and non-English-speaking households, and meeting the minimum specified criteria in D.94-09-065. \par \par . The Commission should annually assess the degree to which \'5B*127\'5D carriers have or have not met their universal-service goals in California's poor, non-white, and non-English-speaking communities, and should exercise their authority to ensure that their universal service goals are actively and effectively pursued. \par \par . The Commission should analyze the service territory maps of all carriers to determine if there are areas suffering from an absence of competition. If such areas exist, the Commission should require carriers who serve territories bordering these redlined communities to expand their territories to encompass these undeserved communities to increase competitive choice. \par \par . Enhanced telecommunications services such as digital, broadband, and fiber or fiber-coax services must become part of basic service when such service is available to (even if not yet purchased by) 51% of the customers in the exchange, neighborhood, city, council, county, metropolitan area, or larger territory such as a LATA. \par \par . Each carrier that is developing or building out new telecommunications technologies or services (hardware or software) must do so without discrimination in access on the basis of income, race or ethnicity, or geography. \par \par . Enhanced telecommunications \'5B*128\'5D services must be available to qualified lifeline customers at lifeline rates, i.e., no more than 50% of the regular price.\par \par \par Pacific \par\par Pacific recommends that the Commission review several factors if the allegation of redlining arises. For example, Pacific suggests that the Commission investigate whether adjacent communities are receiving the same technology and consider how many providers can economically provide a certain service to a community. The key, for Pacific, is to differentiate between intentional discriminatory conduct and the demands of a competitive market. \par \par GTEC \par\par GTEC believes that the detection and prevention of redlining can be achieved in a competitive local market. GTEC cautions, however, that the new competitive environment requires careful application of the Commission's redlining policy. The Commission has allowed CLCs to narrowly designate their serving areas, thus the Commission must be careful not to consider as redlining those situations where it may not be economically feasible or advantageous for the CLCs to deploy advanced service beyond their designated service territories. \par \par Citizens \par\par To safeguard against redlining in the \'5B*129\'5D provision of basic residential service, Citizens recommends that every provider of basic residential services be required to provide these services on a nondiscriminatory basis within the areas being served by that carrier. Citizens believes that universal access to optional services and more advanced technology is a matter of social policy beyond the scope of normal regulation and should be entrusted to the Legislature. \par \par Coalition \par\par The Coalition states that the unreasonable discrimination inherent in the practice of redlining should not be tolerated. The Coalition also stresses that companies should not be penalized for any failure to serve that is not due to an intent to redline, but is the result of technical or economic barriers to immediately extending service to an entire service area. \par\par The Coalition believes that the review of service territory maps as proposed by Public Advocates would be an ineffective means of addressing the issue of redlining. In the Coalition's view, it is too early to contemplate a review of service territory maps for the purpose of detecting redlining. The Coalition notes local competition has yet to start, and competition will require time \'5B*130\'5D to take hold. In addition, critical technical and pricing issues need to be ironed out before anyone will be able to tell whether the interim rules create the conditions necessary to allow CLCs to serve the areas they want to service. The Coalition states that the Commission has better means of detecting and addressing redlining than service area maps, and these are being thoroughly addressed in the universal service proceeding. \par\par 2. Discussion \par\par The Commission's Interim Rules for local exchange competition set forth in D.95-07-054 required CLCs to provide service to all customers requesting service within their designated service territory on a non-discriminatory basis. n15 However, the Interim Rules adopted in D.95-07-054 contained no specific provisions regarding the detection and prevention of redlining. \par\par n15 D.95-07-054, Appendix A, Section 4.F.(1). \par\par We are unalterably opposed to redlining and shall prohibit it. We are optimistic, however, that competitive carriers will act in their own best interests and pursue the growing opportunities found in serving California's diverse population in a nondiscriminatory manner. But pursuing these opportunities will take time, effort, \'5B*131\'5D and investment. Many critical issues still need to be worked out, such as a permanent INP solution, that may hinder carriers from expanding as fast or serving as many as they might otherwise. Carriers first need to be given a fair chance to serve California before we can meaningfully examine whether carriers are intentionally engaging in redlining. \par\par We therefore decline to implement Public Advocates' proposal to investigate at the outset of local competition all CLCs' service territory maps for redlining. Public Advocates' other proposals concerning redlining n16 are better addressed in our Universal Service proceeding. We emphasize that our directing Public Advocates to pursue its proposals in the Universal Service proceeding should not be viewed by CLCs or others as a signal of any slackening in our commitment to oppose redlining. We have referred certain proposals to the Universal Service proceeding because they are closely related to the issues of universal availability and affordability of service. We reiterate our intent to take strong action against any carrier we find engaged in redlining. \par\par n16 Public Advocates presented the same proposals regarding redlining in the Universal Service docket. See Public Advocates' Comments on Decision 95-07-050 and Proposed Rules, Appendix A. \'5B*132\'5D \par \par Findings of Fact \par\par 1. D.94-12-053 formally adopted a procedural plan to implement the Commission's stated goal of opening all telecommunications markets to competition by January 1, 1997. \par\par 2. R.95-04-043/I.95-04-044 was instituted to develop and adopt rules for competitive local exchange service. \par\par 3. D.95-07-054 adopted initial rules in certain limited areas sufficient to enable prospective CLCs to file petitions for authority by January 1, 1996 to enter the local exchange market. \par\par 4. Additional interim rules and guidelines are needed regarding interconnection and related service features to facilitate the entry of CLCs into the local market January 1, 1996. \par\par 5. Local exchange networks should be interconnected so that customers of any local exchange carrier can seamlessly receive calls that originate on another local exchange carrier's network and place calls that terminate on another local carrier's network in an efficient manner without dialing extra digits. \par\par 6. Pacific and GTEC filed proposed interconnection tariffs on September 18, 1995 for comment. \par\par 7. A technical workshop on interconnection issues was held November 28, 1995. \par\par 8. Adopted interconnection rules which \'5B*133\'5D promote a competitive marketplace should be fair, balanced, and flexible enough to accommodate different carriers' needs and constraints. \par\par 9. In order for facilities-based CLCs to be able to offer competitive local service, they must not only have a physical interconnection with the network of an incumbent LEC, but also have access to other related services including E-911, 611 repair service, and directory access. \par\par 10. Allowing competitors to negotiate interconnection contracts subject to appropriate Commission rules and guidelines will create a more level playing field. \par\par 11. Contracts will lead to more flexible and economic interconnection arrangements than a more rigid tariff structure. \par\par 12. Negotiated agreements run the risk of triggering delay for strategic reasons. \par\par 13. The environment most conducive to a level playing field is one in which parties have the flexibility to negotiate terms and conditions for interconnection which are best suited to their specific needs. \par\par 14. The bargaining power of CLCs relative to LECs in negotiating interconnection can be impacted by the manner in which the interim rules are structured. \par\par 15. Each negotiating party has an economic incentive to \'5B*134\'5D seek the most efficient and economical POI configuration. \par\par 16. Three general arrangements for interconnection are: collocation, special access facilities and jointly constructed facilities. \par\par 17. At certain traffic volumes, it is more efficient to directly interconnect with an end office than to route traffic through a tandem. \par\par 18. Parties should seek to agree upon a cut-over traffic volume beyond which CLCs would be required to directly interconnect with LEC end offices. \par\par 19. Two-way trunks will generally be more efficient and flexible for purposes of implementing interconnection arrangements for local exchange competition. \par\par 20. The measurement of local traffic is technically feasible on two-way trunks. \par\par 21. With a two-way trunk, Pacific's existing software would not accommodate the differentiation between local and toll traffic. \par\par 22. GTEC could measure total incoming traffic volumes with two-way trunks, but would be unable to measure the percentage attributable to local usage. \par\par 23. In order to preserve the option of subsequently instituting call termination charges in the future, there must be some means of measuring local traffic under any adopted trunking arrangement. \par\par 24. The \'5B*135\'5D measurement of local versus toll traffic when using a two-way trunk will require an exchange of information between LECs and CLCs as to total traffic volumes and percentage of local usage (PLU). \par\par 25. The exchange of data on total traffic volumes and percentage of local usage between CLCs and LECs which terminate traffic on others' network is appropriate. \par\par 26. A party may dispute another carrier's reported PLU or volume data and request an independent audit. \par\par 27. The implementation details of a monitoring and verification program for the reevaluation of the bill and keep policy will be addressed in a subsequent order. \par\par 28. The risks of misforecasting demand with two-way trunks can be accommodated through appropriate joint planning and forecasting measures with possible sanctions imposed for failure to provide reasonable forecasts. \par\par 29. There is no indication that any prospective CLC is presently seeking to deploy a new network using Multifrequency (MF) signalling as its preferred interconnection \par\par 30. MF signalling is not commonly used in modern telecommunications networks. \par\par 31. In D.95-07-054, for purposes of establishing bill and keep, local calls were defined by reference to the definitions \'5B*136\'5D currently used by LECs. \par\par 32. Extended Area Service (EAS) and ZUM Zone 3 service, properly constitute local calls subject to bill and keep provisions. Directory assistance, 800 number calls, busy verification and emergency interrupt, are not subject to bill and keep. \par\par 33. GTEC cannot avoid the bill and keep rule merely because an otherwise local call is routed through its tandem switch. \par\par 34. It is essential that all local exchange customers have ready access to E-911 service and to repair services whether they are the customer of a LEC or a CLC. \par\par 35. Pacific's proposed 611 referral system provides a workable interim solution for directing CLC customers who dial \'22611\'22 and reach Pacific's Repair Service. \par\par 36. D.95-07-054, OP 8, the Commission directed that: \par \par \'22DRA shall notify the Commission by October 1, 1995 as to whether the \'5BG.O. 133-B\'5D Committee has reached consensus on recommendations for additional standards for interconnection service orders.\'22\par 37. On October 2, 1995, DRA reported on the progress of the GO 133-B Review Committee in developing interconnection standards, indicating that the participants agreed on only two limited matters, namely: \par \par a. The service quality \'5B*137\'5D standards for Intercompany Interconnection Held Service Orders should be included in a separate section of GO 133-B. \par \par b. Participants reaffirm that all LECs and CLCs shall be subject to GO 133-B Intercompany Interconnection Held Service Order reporting standards.\par 38. The assigned ALJ issued a ruling on November 13, 1995, directing parties to file written comments addressing additional standards for interconnection service orders. \par\par 39. Interconnection among local carriers is a prerequisite for the development of local exchange competition, and is fundamental to the deployment of a ubiquitous public communications network connecting all Californians to one another and beyond. \par\par 40. Contracts provide the flexibility necessary to accommodate the many different network interconnections arrangements necessary for the LECs and CLCs to interconnect between and among each other. \par\par 41. For effective local competition to exist, interconnection must take place in an efficient and timely manner. \par\par 42. It would be unrealistic to specify a standard provisioning time for each of the innumerable intercompany interconnection arrangements that are possible. \par\par 43. Service orders held for 15 days may \'5B*138\'5D indicate a service quality problem that should be investigated by the CPUC. \par\par 44. Held service orders may have significant negative impacts on the quality of service provided to the customers of the entity requesting interconnection. \par\par 45. A monthly IIHSO reporting requirement is reasonable. \par\par 46. IIHSOs held longer than 15 days will negatively impact competitors who relied upon the promised due date in making their own service commitment dates to their customers. \par\par 47. The Commission's current service quality auditing measures are sufficient for verifying the accuracy of carrier-to- carrier service standard reports. \par\par 48. Since this decision establishes service standards and reporting units, DRA's recommendation for additional GO 133-B Committee meet-and-confer sessions is unnecessary. \par\par 49. The Commission's Interim Rules require facilities-based CLCs to possess a minimum $100,000 of cash or cash equivalent, while resale CLCs must have a minimum of $25,000 of cash or cash equivalent. \par\par 50. In addition, all CLCs must demonstrate they have the resources needed to cover any deposits required by LECs and IECs. \par\par 51. Imposing unduly large financial restrictions on CLC entrants may inhibit market \'5B*139\'5D entry and impede the growth of a competitive market. \par\par 52. The Commission's adopted rules must ensure that the public is protected against degradation of service quality as a result of the lack of technical or financial integrity of a certificated CLC. \par\par 53. GTEC's proposal for a $1 million bond requirement for CLC entry is unduly arbitrary, restrictive, and could inhibit the entry of CLCs. \par\par 54. While GTEC's bonding proposal is unsupportable, some additional level of financial protection beyond the existing rules is appropriate. \par\par 55. Interim Rules adopted in D.95-07-054 require that CLCs making a sale in a language other than English provide the customer with a letter written in the language in which the sale was made describing the services ordered and itemizing all charges which will appear on the customer's bill. \par\par 56. In the interests of promoting competitive local exchange service among prospective customers whose native language is other than English, it is appropriate to expand the existing rule to require CLCs to inform each new customer in writing in the language in which the sale was made of the availability, terms and statewide rates of lifeline telephone service and basic \'5B*140\'5D service. \par\par 57. Redlining refers to the discriminatory provision of telecommunications services whereby areas characterized by minority customers might not be afforded access to the same types or quality of telecommunications services offered to customers in non-minority areas. \par\par 58. The Commission's Interim Rules for local exchange competition set forth in D.95-07-054 required CLCs to provide service to all customers requesting service within their designated service territory on a non-discriminatory basis. \par\par 59. The Interim Rules adopted in July 1995 contain no specific provisions regarding the detection and prevention of redlining. \par Conclusions of Law \par\par 1. To balance parties' relative bargaining power in negotiating mutually satisfactory interconnection arrangements, it is appropriate to adopt a set of \'22preferred outcomes\'22 as set forth in Appendix A which produce the most efficient and economic solutions overall and which are in the public interest. \par\par 2. In reviewing and approving interconnection contracts, the Commission should consider how well a contract achieves the \'22preferred outcomes\'22 established herein. Contracts that reflect terms which are different from the \'22preferred \'5B*141\'5D outcomes\'22 will still be approved, however, if it is mutually agreeable to both parties and passes other Commission tests as outlined in this decision. \par\par 3. The CLC and LEC should have the discretion to mutually determine the number of POIs and where they should be located. \par\par 4. Expedited dispute resolution procedures should be adopted to deal with those instances where parties are unable to mutually agree upon the technical terms of interconnection or where a party may have breached its contract for interconnection services. \par\par 5. Under any interconnection arrangement, parties should develop compensation provisions that appropriately reflect the usage of facilities. \par\par 6. While a dispute is pending before the Commission, each party may designate its own separate POI for terminating local traffic on another's network, if mutually agreeable. \par\par 7. The POI arrangement that optimizes efficiency for both sides has the best chance of being approved by the Commission. \par\par 8. The adopted rules should provide an incentive for each party to seek the least cost solution in determining the need for and cost of new facilities for interconnection. \par\par 9. If a CLC wants to use a LEC's tandem to route a call to \'5B*142\'5D another CLC, the LEC may impose a charge to compensate for the service. \par\par 10. Pacific and GTEC will accommodate MF signalling at their offices that are not SS7 capable. \par\par 11. An expedited contract review process should be established which balances incentives for flexible, competitive negotiations with the protection of the public interest. \par\par 12. Commission review is necessary to assure that contracts are not unduly discriminatory or anticompetitive. \par\par 13. Contracts that have been either approved or rejected are nonprecedential and should not affect the review of any currently pending contract. \par\par 14. After receiving a rejection letter, the parties may address the points raised in the letter and refile the amended contract. \par\par 15. For contracts that present novel issues or issues that would require CACD to exercise a degree of judgment beyond that of a ministerial role, CACD may also provisionally reject a contract to prevent the contract from becoming effective in 14 calendar days, to allow time for CACD to prepare a resolution with its recommendation for Commission consideration and decision. \par\par 16. Under the expedited review procedure, filed contracts automatically become effective 14 \'5B*143\'5D calendar days after filing, unless CACD acts to reject the contract. \par\par 17. Symmetrical rights and obligations should apply to LECs as well as CLCs in the exchange of information related to interconnection which is claimed to be confidential. \par\par 18. Interconnection contracts should contain symmetrical provisions for the treatment of confidential material. \par\par 19. Each party shall be responsible for designating which information it claims to be confidential to other parties receiving the information. \par\par 20. If parties are unable to agree as to what information should be treated confidentially, they may seek resolution under the Commission's law and motion procedure. \par\par 21. Competitors should be subject to symmetrical risks and protections from legal liability. \par\par 22. CLCs' liability shall be no greater than the LECs' liability for any action or inaction resulting in a claim against a LEC or CLC. \par\par 23. No competitor should have the unilateral power to terminate another carrier's service without prior notice or opportunity for proper recourse. \par\par 24. If any LEC or CLC believes another CLC is in violation of the law, it shall provide adequate notice to the CLC to afford it the opportunity to seek expedited \'5B*144\'5D relief before terminating service. \par\par 25. Interconnection contracts entered into under these rules are subject to Commission authority to modify or supersede certain contract terms subject to due notice and opportunity to be heard. \par\par 26. E-911 service that the CLCs will have to purchase from the incumbent LECs should remain classified as Category I service. As such, the LECs should not have any contracting ability over those services. \par\par 27. Access to E-911 service is essential for each Californian, and every CLC shall be required to provide each of its customers with access to E-911 services. \par\par 28. It is appropriate to adopt rules for interconnection contract dispute resolution and approval, E-911 service, GO 133-B interconnection service order standards, and 611 repair service, as set forth in the order below. \par\par 29. Since it is unclear as to how long the Intercompany Interconnection Held Service Order (IIHSO) reporting requirement set forth in the ordering paragraphs below will remain necessary, no sunset clause shall be established at this time for IIHSO reporting requirements. \par\par 30. Public Advocates' proposals concerning bilingual service requirements for customers to whom service was \'5B*145\'5D sold in English only and for bilingual marketing and outreach should be considered in our Universal Service proceeding, R.95-01-020/I.95- 01-021. \par\par 31. Since the facilities-based CLCs are only beginning the process of obtaining customers, waiting for a decision in the Universal Service docket to address Public Advocates' bilingual service proposals is unlikely to have any adverse impact. \par\par 32. The practice of redlining is contrary to the public interest goals of this Commission and should be prohibited. \par\par 33. Carriers first need to be given a fair chance to develop a customer base which draws from all of California's diverse population before we can meaningfully examine whether any carriers are intentionally engaging in redlining. \par\par 34. Public Advocates' proposal to investigate at the outset of local competition all CLCs' service territory maps for redlining is premature at this time. Public Advocates' other proposals concerning redlining should be addressed in the Universal Service proceeding. \par\par INTERIM ORDER \par\par IT IS ORDERED that: \par\par 1. The following rules contained in Appendix C and elsewhere in this decision for interconnection and related arrangements are adopted herein and \'5B*146\'5D are applicable to all competitive local carriers (CLCs) and Pacific Bell (Pacific) and GTE California (GTEC). \par\par 2. Competing carriers for local exchange service shall use negotiated contracts to establish the terms and conditions of interconnection of their respective networks. \par\par 3. Parties' proposed interconnection agreements shall be evaluated by the Commission in terms of how well they achieve the Commission's preferred outcomes as set forth in Appendix A. \par\par 4. The Commission will approve contracts that do not contain the \'22preferred outcomes\'22 as long as the contract is mutually agreeable to the contracting parties and passes other Commission tests outlined in this decision. \par\par 5. Each CLC and LEC shall separately measure its total volumes and percentage of local usage sent to each carrier it interconnects with and then exchange its measurements with that carrier as well as with CACD for monitoring purposes. Such data shall be subject to independent verification. \par\par 6. Each party to an interconnection agreement shall negotiate in good faith. \par\par 7. Parties shall work towards the development of joint forecasting responsibilities for traffic utilization over trunk groups. \par\par 8. In the event a \'5B*147\'5D CLC requests an interconnection via MF signalling to an end-office that is not SS7 capable, the LECs shall accommodate such requests. \par\par 9. After parties have reached agreement on an interconnection contract, parties shall file the contract by advice letter for expedited review under the procedure adopted in this decision. \par\par 10. The expedited contract review process established by this order will only apply to interconnection issues addressed in this decision. \par\par 11. The Commission shall establish a Dispute Resolution Procedure (DRP) within this docket, in which parties shall adhere to the following: \par \par a. Parties shall seek to resolve any disputes informally in good faith, including escalation to the executive level within each company, before bringing the matter before the Commission. \par \par b. If informal resolution fails, parties may file motions seeking mediation with an assigned ALJ, assisted by CACD staff. Motions shall be served on parties to the dispute, the assigned ALJ, the Director of CACD, and the Docket Office. The ALJ shall be guided by the preferred outcomes as criteria in reviewing and ruling on the dispute. The Docket office will notice the motion in the Daily Calendar. \'5B*148\'5D \par \par c. If mediation fails, the ALJ shall direct parties to submit short pleadings and then issue a written ruling to resolve the dispute. \par \par d. Parties may file objections to the written ruling as formal complaints under the expedited complaint process described in this decision. \par \par e. In an expedited complaint, parties challenging an unfavorable ALJ ruling will bear a heavy burden of proof. In addition, parties must show they have pursued each step of the process described above. \par \par f. The ALJ may solicit comments and testimony from all parties to the dispute if a dispute raises generic issues or affects others. \par \par g. Any party may file a motion suggesting improvement to the dispute resolution procedure which shall be served on all parties in the docket. \par \par h. The Commission's rules of practice and procedure should be followed at all times during the DRP.\par 12. Contract provisions that include additional features beyond interconnection, such as directory assistance, unbundled loops, white and yellow pages shall be filed as General Order (GO) 96-A contracts and will be processed in accordance with those rules subject to the normal protest and response period. \par\par 13. At the time of \'5B*149\'5D filing proposed contracts, parties shall include all the information normally required for contracts filed under GO 96-A. \par\par 14. Contract filings which contain terms and conditions substantially different from the preferred outcomes outlined in Appendix A shall substantiate why these terms and conditions lead to a more economic and/or efficient outcome and are in the public interest. \par\par 15. Under the expedited contract approval process adopted in this order, interested parties shall file any protests within 7 calendar days, with responses due within 5 calendar days. \par\par 16. Protests and responses to proposed interconnection contracts shall address only anticompetitive or unduly discriminatory provisions of the contract. \par\par 17. CACD will review the protests and determine the need for the Commission to adopt a formal resolution. \par\par 18. Copies of the advice letter including the contract shall be served upon the normal advice letter service list and upon all LECs and certificated CLCs. \par\par 19. CACD shall review filed contracts for compliance with our stated requirements and policy objectives, and, if appropriate, reject a contract by letter within 14 calendar days from the date filed. \par\par 20. E-911 service \'5B*150\'5D and access to customer listing databases must be offered by Pacific Bell (Pacific) and GTE California (GTEC) to any certificated CLC under reasonable terms and conditions. \par\par 21. GTEC and Pacific shall tariff E-911 offerings. \par\par 22. GTEC shall concur in Pacific's tariff for these services, until such time it has an approved tariff on file. \par\par 23. GTEC is authorized to request Z-factor recovery for the difference between rates charged under Pacific's tariff and GTEC's actual cost of providing this service. \par\par 24. Pacific and GTEC shall undertake the activities set forth in this decision to provide the CLCs with E-911 interconnection services by the commencement of local exchange competition on January 1, 1996. \par\par 25. Each CLC shall provide information to allow the Automatic Location Identification (ALI) record displayed at the Public Safety Answering Point (PSAP) to contain two new data fields to assist in the processing of E-911 calls from remote call forwarded (RCF) phone lines: (1) the Remote Call Forwarded Field to contain the RCFed ten-digit number; and (2) the \'22originating\'22 service telephone number which would appear in the Automatic Number Identification field of the ALI record. \par\par 26. \'5B*151\'5D Pacific and GTEC shall cooperate with the CLCs to ensure that a new, five-character Telephone Company Identification (TCI) field will be added to the ALI screen identify the telephone company that provides service to the calling line. \par\par 27. Before January 15, 1996, Pacific and GTEC shall inform PSAPs in their own territories and those within the territories of the smaller LECs that serve Pacific's and GTEC's customers about the changes to the ALI screen due to RCF. \par\par 28. Pacific and GTEC shall coordinate on a consistent PSAP education effort. \par\par 29. Both facilities-based and resale CLCs shall provide their residential customers access to E-911 service following disconnection of service due to nonpayment (i.e., warm line). \par\par 30. Facilities-based CLCs and LECs shall offer warm line service to resale CLCs. \par\par 31. A resale CLC's obligation to provide warm line service to a customer shall continue as long as the CLC maintains an arrangement for resale service to the end user's premises. \par\par 32. Following termination of the resale arrangement, the obligation to provide warm line service shall revert to the underlying facilities-based CLC or LEC. \par\par 33. The CLC responsible for maintaining warm line service \'5B*152\'5D to a number disconnected for nonpayment shall not be required to maintain any interim number portability service on the telephone number which was originally ported to that line. \par\par 34. When interim number portability is discontinued, the CLC shall provide the 911 data base administrator with any information necessary to ensure a proper and timely response to a 911 call. \par\par 35. To assure comparable access to E-911 by all CLCs, both Pacific and GTEC are required to offer E-911 interconnections under nondiscriminatory terms and conditions by tariff. \par\par 36. Pacific and GTEC shall provision E-911 trunks within 30 business days from when ordered. \par\par 37. LECs shall update their databases within 48 hours of receiving the data from the CLC. \par\par 38. If the LEC detects an error in the CLC-provided data, the data shall be returned to the CLC within 48 hours after receiving the data. \par\par 39. Pacific and GTEC shall ship Master Street Address Guide (MSAG) data within 72 business hours from the time requested. \par\par 40. The LECs shall provide the MSAG data on paper, diskette, magnetic tape, or in a format suitable for use with desktop computers. Each LEC may charge, on a nondiscriminatory basis, its cost for providing \'5B*153\'5D MSAG data. \par\par 41. Pacific and GTEC shall provide maps of E-911 selective router tandem locations on a nondiscriminatory basis. \par\par 42. Pacific and GTEC shall charge their cost for provisioning the E-911 tandem maps as set forth in Pacific tariffs and each of GTEC's contracts. \par\par 43. CLCs shall provide a 24-hour toll free contact number to a live operator where PSAPs can obtain subscriber information on or after January 1, 1996, but before offering service to customers. \par\par 44. Pacific shall file an E-911 tariff by Advice Letter which will become effective on 5 days' notice consistent with the rules in this decision. \par\par 45. GTEC shall file an E-911 tariff not later than January 31, 1996 by advice letter consistent with GO 96-A. GTEC shall concur in Pacific's tariff until such time that it has an approved tariff. GTEC may request Z-factor recovery for the difference between the rates charged under Pacific's tariff and GTEC's actual cost of providing the service. \par\par 46. An industry-led task force shall be formed to monitor, enforce, and distribute the subscriber record access telephone numbers and 5-digit company codes, to be coordinated by CACD. CACD shall report back to us within 90 days on the \'5B*154\'5D progress in forming the industry-led task force. \par\par 47. As a prerequisite to initiating service, each certificated CLC shall be equipped to respond promptly to its customers' 611 repair service calls either through its own service technicians or through contractual arrangements. \par\par 48. Each CLC shall be required to disclose the procedure for ordering repair service at the time the customer initiates service as well as on each monthly customer bill. \par\par 49. LECs and CLCs shall institute a referral system to direct customers who dial 611 to the appropriate carrier for service. \par\par 50. The service quality standards for intercompany interconnection held orders shall be included within a separate subsection of GO 133-B, designated as subsection 6. \par\par 51. Both CLCs and LECs shall be subject to the service quality standards for Interconnection Service Orders prescribed under GO 133-B. \par\par 52. An Intercompany Interconnection Held Service Order (IIHSO) shall be reported when the service is not provided within 15 days of the mutually agreed-upon due date. \par\par 53. Local carriers shall file their IIHSOs on the last day of the following month. \par\par 54. Pacific's proposed form for reporting on IIHSOs shall be adopted \'5B*155\'5D with the one minor modification of adding an additional reporting interval. \par\par 55. The IIHSO report shall contain the following information: (1) the service order number: (2) the due date; (3) the company requesting interconnection; (4) whether the IIHSO is overdue by 15-20, 21-25, 26-30, 31-35, 36-40, 40-45, and over 45 days; (5) the reporting unit (wire center or plant installation center); (6) whether the IIHSO is pending or complete; and (7) an explanation for the IIHSO. \par\par 56. The LEC's reports shall be broken down by individual CLCs in order to help assess if a particular CLC is being treated in a discriminatory manner by a LEC. \par\par 57. IIHSO service reporting shall be instituted beginning January 1, 1996, so that the Commission may monitor interconnection service quality from the start of local exchange competition. \par\par 58. To reduce the potential number of disputes over held service orders, an \'22Intercompany Interconnection Service Order\'22 shall be defined as \'22a request for interconnection of trunks and/or facilities between LECs and/or CLCs.\'22 \par\par 59. As an incentive to provide timely service order completion, all local carriers shall refund nonrecurring interconnection charges for service \'5B*156\'5D orders held 45 days beyond the mutually agreed upon service date. \par\par 60. The refund provision shall not apply if service order completion was delayed due to natural disasters, severe weather, labor disputes, or civil disturbances. \par\par 61. CLCs ordering interconnection service with no prior credit record shall pay a deposit equal to an estimated two months of recurring flat-rated or usage-based interconnection charges based on the number and type of interconnection facilities ordered from the LEC. \par\par 62. Customer deposits collected by a CLC shall be deposited in a protected, segregated interest-bearing escrow account subject to Commission oversight. \par\par 63. Local carriers shall inform each new customer in writing and in the language in which the sale was made, of the availability, terms, and statewide rates of lifeline telephone service and basic service. \par\par 64. On an ongoing basis, each local carrier shall provide bills, notices, and access to bilingual customer service representatives in the languages in which prior sales were made. \par\par This order is effective today. \par\par Dated December 20, 1995, at San Francisco, California. \par\par Appendix A \par\par Preferred Outcomes for Interconnection Contracts \f1 \par________________________________________________________________________________\par\par - Category Issue Preferred Outcomes\par Technical Point of Intercon- Parties should compensate\par nection\par Provisions\par each other for use of each\par others networks *\par Single, mutually agreed upon\par POI\par Maintenance plans with clear\par responsibilities and cost\par sharing\par One-Way versus Two-Way Two-way trunks\par Trunks\par Carriers should exchange\par percentage local usage\par (PLUs) quarterly. Carriers\par may request audits of PLUs\par Interconnect at each access\par tandem in a LATA\par Signalling Protocol SS7 is the standard. MF\par signalling allowed for end-\par offices without SS7\par capability\par Bill and Keep Bill and keep includes EAS\par Applicability\par and Zum Zone 3. 800\par number, busy line\par verification, busy line\par interrupt and directory\par assistance are not subject to\par bill and keep *\par Non-Technical Confidential Symmetrical rights and\par Information\par Provisions obligations\par Liability Symmetrical liability for\par LECs and CLCs\par Termination No unilateral power. Must\par provide notice and\par opportunity to dispute\par * Note: The Commission has established an interim\par policy of bill and keep for call termination rates.\par________________________________________________________________________________\par\par -\f0 \'5B*157\'5D \par\par APPENDIX B \f1 \par________________________________________________________________________________\par\par -List of Acronyms\par ALI - Automatic Location Identification\par ALJ - Administrative Law Judge\par AVRU - Automated Voice Response Unit\par CACD - Commission Advisory and Compliance Division\par CCSN - Customer Contact Services Node\par CESAR - Carrier Enhanced System for Access Requests\par CLCs - Competitive Local Carriers\par Coalition - The California Telecommunications Coalition\par CPUC - California Public Utilities Commission\par D. - Decision\par DGS - Department of General Services\par DRA - Division of Ratepayer Advocates\par DRP - Dispute Resolution Procedure\par EAS - Extended Area Service\par FEA - Federal Executive Agencies\par FGD - Feature Group D\par GTEC - GTE of California\par GO - General Order\par IIHSOs - Intercompany Interconnection Held Service Orders\par IISO - Intercompany Interconnection Service Order\par INP - Interim Number Portability\par LATA - Local Access and Transport Area\par LECs - Local Exchange Carriers\par LISA - Local Interconnection Serving Arrangement\par MFS - Metropolitan Fiber Systems\par MSAG - Master Street Address Guide\par OP - Ordering Paragraph\par ORP - Originating Responsibility Plan\par Pacific - Pacific Bell\par PLU - Percentage Local Usage\par POIs - Points of Interconnections\par PSAP - Public Safety Answering Point\par PU - Public Utilities\par RCF - Remote Call Forwarding\par RCFed - Remote Call Forwarded\par TCI - Telephone Company Identification\par TN-ESN - Telephone Number to Emergency Service Number\par TURN - Toward Utility Rate Normalization\par UCAN - Utility Consumers Action Network\par________________________________________________________________________________\par\par -\f0 \'5B*158\'5D \par\par APPENDIX C \par\par Initial Rules for Local Exchange Service Competition in California \par \par \'5BNote: Items in Boldface type are amendments to the rules issued in D.95-07-054, Appendix A.\'5D \par \par 1. PUBLIC POLICY PRINCIPLES AND OBJECTIVES \par\par A. It is the policy of the California Public Utilities Commission (Commission) that competition in the provision of local exchange telecommunications services is in the public interest. \par\par B. It is the policy of the Commission that, in an environment of competition for local exchange telecommunications services, telecommunications users shall receive ongoing disclosure of the rates, terms and conditions of service from telecommunications providers and shall benefit from a clear and comprehensive set of consumer protection rules. \par\par C. It is the policy of the Commission that interconnection of the networks of Competitive Local Carriers (CLCs) and Local Exchange Carriers (LECs) should be accomplished in a technically and economically efficient manner. \par\par D. It is the policy of the Commission that all telecommunications providers shall be subject to appropriate regulation designed to safeguard against anticompetitive conduct. \par\par E. It is the policy of the \'5B*159\'5D Commission that service provider local number portability should be accomplished. \par\par F. It is the policy of the Commission that networks of dominant providers of local exchange telecommunications services should be unbundled in such a manner that a carrier is provided access to essential facilities on a nondiscriminatory standalone basis. \par\par G. It is the policy of the Commission that customer privacy rights and concerns be protected in an environment of local exchange competition. \par\par H. It is the policy of the Commission to ensure that local exchange competition does not degrade the reliability of the telecommunications network. \par\par I. It is the policy of the Commission to encourage intercarrier coordination and cooperation. \par\par J. It is the policy of the Commission to monitor, on a periodic basis, the market conditions of the local exchange telecommunications market and reevaluate its policies on local exchange competition accordingly. \par\par K. It is the policy of this Commission that Commission- approved tariffs for call termination should reflect costs. \par \par 2. SCOPE OF RULES \par\par These interim rules apply to the provision of local exchange telecommunications services by CLCs, and where applicable, \'5B*160\'5D LECs. LEC as used in these rules refers to only Pacific Bell and GTE California, until further action by the Commission. \par \par 3. DEFINITIONS \par\par A. CLC means a common carrier that is issued a Certificate of Public Convenience and Necessity effective on or after January 1, 1996, to provide local exchange telecommunications service for a geographic area specified by such carrier. \par\par B. LEC means any incumbent carrier listed in Appendix C attached hereto. \par\par C. Minor rate increases are those which are both less than 1% of the CLC's total California intrastate revenues and less than 5% of the affected service's rates. Increases shall be cumulative, such that if the sum of the proposed rate increase and rate increases that took effect during the preceding 12-month period for any service exceeds either parameter above, then the filing shall be treated as a major increase. \par\par D. Major rate increases are increases which are greater than the increases described above. \par\par E. Network component means a functional capability of a network, disaggregated from other network capabilities and made available to other carriers and end users separately from all other network capabilities. \par\par F. Nondominant interexchange \'5B*161\'5D carrier (NDIEC) means an interexchange carrier that is considered nondominant under the Commission's decisions. \par\par G. NXX Rating Point means the end office/wire center location designated in the Local Exchange Routing Guide as the assignment point for an NPA-NXX code. \par\par H. NXX Service Area means the geographically-bounded area designated as the area within which a LEC or CLC may provide local exchange telecommunication services bearing a particular NPA-NXX designation. \par\par I. Local telephone number portability means the ability of end users to retain their existing telephone numbers when remaining at a location, or changing their location within the geographic area served by the initial carrier's serving central office, regardless of the LEC or CLC selected. \par\par J. Local exchange loop facility (also known as a basic level network access channel) means a transmission path capable of delivering analog voice grade signals or digital signals at less than 1.544 Mbps between the network interface at a customer's premises and the main distribution frame or any other point of interconnection to the LEC network. \par\par K. A port (also known as a basic level network access channel connection) is the interface \'5B*162\'5D between the loop and the appropriate LEC Central Office switching equipment. \par\par L. Nonfacilities-based CLCs are those which do not directly own, control, operate, or manage conduits, ducts, poles, wires, cables, instruments, switches, appurtenances, or appliances in connection with or to facilitate communications within the local exchange portion of the public switched network. \par\par M. Facilities-based CLCs are those which directly own, control, operate, or manage conduits, ducts, poles, wires, cables, instruments, switches, appurtenances, or appliances in connection with or to facilitate communications within the local exchange portion of the public switched network. \par\par N. Service territory means the area in which a CLC is authorized to provide service. \par\par O. An intercompany interconnection service order is a request for interconnection of trunks and/or facilities between CLCs and/or LECs. \par\par P. Warm-line refers to residential customer access to E-911 service after disconnection for nonpayment and for newly installed lines. \par \par 4. ENTRY, CERTIFICATION, AND REGULATION OF CLCs \par\par A. The Commission shall grant a Certificate of Public Convenience and Necessity (CPCN) to any applicant that \'5B*163\'5D possesses the requisite managerial qualifications, financial resources, and technical competence to provide local exchange telecommunications services. \par\par B. The Commission shall apply the following financial standards to the certification of CLCs: \par \par (1) All new applicants seeking CPCNs for authority to become facilities-based CLCs, as defined in this decision, shall demonstrate in their applications that they possess a minimum of $100,000 of cash or cash equivalent as defined below, reasonably liquid and readily available to meet the firm's start-up expenses. Such applicants shall also document any deposits required by local exchange companies or interexchange carriers (IECs) and demonstrate that they have additional resources to cover all such deposits. \par \par (2) All new applicants seeking CPCNs for authority to become nonfacilities-based CLCs, as defined in these rules, shall demonstrate in their applications that they possess a minimum of $25,000 of cash or cash equivalent as defined below, reasonably liquid and readily available to meet the new firm's expenses. Such applicants shall also document any deposits required by LECs or IECs and demonstrate that they have additional \'5B*164\'5D resources to cover all such deposits. \par \par (3) Applicants for CPCNs as CLCs who have profitable interstate operations may meet the minimum financial requirement by submitting an audited balance sheet and income statement demonstrating sufficient cash flow, as authorized in Decision (D.) 91-10-041 for NDIECs. \par \par (4) New applicants for CPCNs as CLCs shall be permitted to use any of the following financial instruments to satisfy the applicable unencumbered cash requirements established by this order. \par \par (a) Cash or cash equivalent, including cashier's check, sight draft, performance bond proceeds, or traveler's checks; \par \par (b) Certificate of deposit or other liquid deposit, with a reputable bank or other financial institution; \par \par (c) Preferred stock proceeds or other corporate shareholder equity, provided that use is restricted to maintenance of working capital for a period of at least twelve (12) months beyond certification of the applicant by the Commission; \par \par (d) Letter of credit, issued by a reputable bank or other financial institution, irrevocable for a period of at least twelve (12) months beyond certification of the applicant by the Commission; \par \par (e) Line of credit or other loan, \'5B*165\'5D issued by a reputable bank or other financial institution, irrevocable for a period of at least twelve (12) months beyond certification of the applicant by the Commission, and payable on an interest-only basis for the same period; \par \par (f) Loan, issued by a qualified subsidiary, affiliate of applicant, or a qualified corporation holding controlling interest in the applicant, irrevocable for a period of at least twelve (12) months beyond certification of the applicant by the Commission, and payable on an interest-only basis for the same period; \par \par (g) Guarantee, issued by a corporation, copartnership, or other person or association, irrevocable for a period of at least twelve (12) months beyond certification of the applicant by the Commission; \par \par (h) Guarantee, issued by a qualified subsidiary, affiliate of applicant, or a qualified corporation holding controlling interest in the applicant, irrevocable for a period of at least twelve (12) months beyond the certification of the applicant by the Commission.\par \par \par (5) The definitions of certain of the financial instruments listed in 4.B (4) and our intent on nondiscriminatory application of these definitions are clarified as follows: \'5B*166\'5D \par \par (a) All unencumbered instruments listed in 4.a. through 4.h. above will be subject to verification and review by the Commission prior to and for a period of twelve (12) months beyond certification of the applicant by the Commission. Failure to comply with this requirement will void applicant's certification or result in such other action as the Commission deems in the public interest, including assessment of reasonable penalties. (See PU Code {\f0\'A7}{\f0\'A7} 581 and 2112.) \par \par (b) Applicants for CPCNs as nonfacilities-based CLCs shall assure that every issuer of a letter of credit, line of credit, or guarantee to applicant will remain prepared to furnish such reports to applicant for tendering to the Commission at such time and in such form as the Commission may reasonably require to verify or confirm the financial responsibility of applicant for a period of at least twelve (12) months after certification of the applicant by the Commission. \par \par (c) All information furnished to the Commission for purposes of compliance with this requirement will be available for public inspection or made public, except in cases where a showing is made of a compelling need to protect it as private or proprietary \'5B*167\'5D information.\par C. The Commission shall apply the following other standards to its regulation of CLCs: \par \par (1) Applicants which currently hold CPCNs as telecommunications providers should apply as prescribed herein to have their current authority expanded to include operating as a CLC. \par \par (2) Applicants will be required to comply with CEQA as specified in Rule 17.1 of the Commission's Rules of Practice and Procedure \par \par (3) If a CLC is 90 or more days late in filing the annual report required by General Order (GO) 104-A or in remitting any current or future Commission- mandated surcharge, including but not limited to Universal Lifeline Telephone Service Fund (Public Utilities (PU) Code {\f0\'A7} 879), DEAF Trust Fund (PU Code {\f0\'A7} 2881(d), the California High Cost Fund (PU Code {\f0\'A7} 739.3), or the user fees on intrastate revenues (PU Code {\f0\'A7}{\f0\'A7} 431-435), the Commission Advisory and Compliance Division (CACD) shall prepare a resolution for the Commission's consideration revoking the CLC's CPCN, unless the CLC has received written permission from the CACD to file or remit late.\par D. The CACD shall on or before January 1, 1997, and at least one time each year thereafter, prepare a list of all current \'5B*168\'5D CLCs in good standing operating in California, including addresses, phone numbers, and the name of the responsible contact person at each such utility, and then disseminate that list to all other telecommunications utilities including the local exchange companies and IECs and will provide the list at the Commission's standard per page charge to any other interested party having requested such list. \par\par E. CLCs shall be subject to the following tariff and contract filing, revision and service pricing standards: \par \par (1) Uniform rate reductions for existing tariff services shall become effective on five (5) working days' notice to the Commission. Customer notification is not required for rate decreases. \par \par (2) Uniform major rate increases for existing tariff services shall become effective on thirty (30) days' notice to the Commission, and shall require bill inserts, or a message on the bill itself, or first class mail notice to customers at least 30 days in advance of the pending rate increase. \par \par (3) Uniform minor rate increases shall become effective on not less than five (5) working days' notice to the Commission. Customer notification is not required for such minor rate increases. \'5B*169\'5D \par \par (4) Advice letter filings for new services and for all other types of tariff revisions, except changes in text not affecting rates or relocations of text in the tariff schedules, shall become effective on forty (40) days' notice to the Commission. \par \par (5) Advice letter filings revising the text or location of text material which do not result in an increase in any rate or charge shall become effective on not less than five (5) days' notice to the Commission. \par \par (6) Contracts shall be subject to GO 96-A rules for NDIECs, except interconnection contracts. \par \par (7) CLCs shall file tariffs in accordance with PU Code Section 876.\par F. The following regulations shall apply to CLCs: \par \par (1) CLCs shall be required to serve customers requesting service within their designated service territory on a nondiscriminatory basis, but shall not be required to have the same service territory as LEC service territories; \par \par (2) Facilities-based CLCs shall at a minimum serve all customers who request service and whose premises are within 300 feet of the CLC's transmission facilities used to provide service so long as the CLC can reasonably obtain access to the point of demarcation on the customer's \'5B*170\'5D premises, but the CLC shall not be required to build out facilities beyond such 300 feet. \par \par (3) CLCs shall file service territory maps with the Commission that detail the area in which the CLC is authorized to provide service. \par \par (4) CLCs shall file quarterly a written description or a map that describes its existing physical facilities. \par \par (5) For any interexchange carrier which subscribes to a CLC's switched access services, the CLC is required to provide 1+ presubscription or 10XXX equal access consistent with the equal access rules of this Commission and of the Federal Communications Commission. \par \par (6) Facilities-based CLCs are required to make all telecommunications service offerings available for resale, only within the same class of service, on a nondiscriminatory basis. \par \par (7) CLCs shall be subject to the obligations of public utilities under the PU Code including but not limited to, {\f0\'A7}{\f0\'A7} 451 and 453, dealing with the provision of just and reasonable rates and charges; \par \par (8) CLCs must obtain Commission approval before discontinuing service in any part of their service area. \par \par (9) CLCs shall provide R-911 service. \par \par (10) To ensure that qualified customers are provided \'5B*171\'5D with telecommunication devices for the deaf (TDDs) or other telecommunication equipment under the Deaf and Disabled Telecommunications Program (DDTP) program:\par \par (a) CLCs should contract with Pacific Bell, GTE of California, the California Telephone Association or Thomson Consulting to offer equipment and services to eligible deaf and disabled customers. These contracts should be interim pending the outcome of continued workshops to determine how CLCs should participate in the DDTP over the long term. \par \par (b) CLCs shall specify in their tariffs how they will offer DDTP services.\par \par \par (11) CLCs shall respond promptly to their customer's 611 repair calls by either using their own service technicians or through contractual arrangements. The CLC shall disclose the procedure for ordering repair service at the time the customer initiates service as well as on the monthly customer bill. \par \par (a) LECs shall institute a referral system to direct CLC customers who dial \'22611\'22 to the appropriate CLC for service or to the Commission's Consumer Affairs Branch if the CLC's identity is unknown. \par \par (b) CLCs shall institute a similar referral system to direct calls of other competitor's \'5B*172\'5D customers seeking repair service.\par \par \par (12) CLCs shall be subject to the consumer protection rules contained in Appendix B of D.95-07-054. \par \par (13) CLCs shall provide the following reports to the Commission: \par \par (a) On a quarterly basis, a copy of all written notices provided to customers, in accordance with Rules 1, 2 and 6 of the consumer protection rules set forth in Appendix B; \par \par (b) By April 1 of each year a copy of the CLC's annual report; \par \par (c) On a monthly basis, reports regarding major service outages; \par \par (d) Reports required in GO 133-B and GO 152-A; and \par \par (e) Such other reports required by the Commission.\par \par \par (14) CLCs shall submit all mandated bill insert notices, including notices of basic universal service rate increases, to the Commission's Public Advisor's Office for review and approval, and shall allow the Public Advisor's Office at least five working days to review and approve the proposed bill inserts prior to their issuance to customers. \par \par (15) CLCs shall deposit customer deposits in a protected, segregated, interest-bearing escrow account subject to Commission oversight. \par \par (16) CLCs shall inform each new customer, in writing and in the language \'5B*173\'5D in which the sale was made, of the availability, terms, and statewide rates of Universal Lifeline Telephone Service and basic service. CLCs shall also provide bills, notices, and access to bilingual customer service representatives in the languages in which prior sales were made. \par \par (17) Redlining is prohibited and the Commission shall take strong action against any carrier engaging in redlining.\par \par \par 5. REGULATION OF LECs \par\par A. Incumbent LECs shall have provider of last resort responsibilities in their service areas until the Commission makes a decision on the issue in its Universal Service docket. \par \par 6. INTERIM NUMBER PORTABILITY \par\par (The rules on Interim Number Portability (INP) will be issued concurrently with the Commission's decision adopting INP rates.) \par \par 7. INTERCONNECTION OF LEC AND CLC NETWORKS FOR TERMINATION OF LOCAL TRAFFIC \par\par A. The interconnection of LEC and CLC networks for the termination of local traffic involves not only the construction and maintenance of the interconnecting facilities, but also the throughput of local terminating traffic across those interconnecting facilities. Local exchange networks shall be interconnected so that customers of any \'5B*174\'5D local exchange carrier can seamlessly receive calls that originate on another local exchange carrier's network and place calls that terminate on another local exchange carrier's network without dialing extra digits. \par\par B. In the interim, local traffic shall be terminated by the LEC for the CLC and by the CLC for the LEC over the interconnecting facilities described in this Section on the basis of mutual traffic exchange. Mutual traffic exchange, also known as \'22bill and keep,\'22 means the exchange of terminating local traffic between or among CLCs and LECs, whereby LECs and CLCs terminate local exchange traffic originating from end users served by the networks of other LECs or CLCs without explicit charging among or between said carriers for such traffic exchange. \par\par C. Bill and keep rules apply to all local calls (including calls within a 12 mile radius and EAS and ZUM Zone 3) between a CLC network and a LEC end office, even if the call is routed through an access tandem. Toll free, directory assistance, busy line verification, and emergency interrupt calls are not subject to bill and keep provisions. \par\par D. For intraLATA toll calls, CLCs shall pay terminating access charges based \'5B*175\'5D on the LECs' existing switched access tariffs. \par\par E. If a CLC uses a LEC tandem to route a call to another CLC, the LEC may impose a charge for the service. \par\par F. Before December 31, 1996, the Commission will review the appropriateness of a bill and keep system, and modify if necessary. \par\par G. CLCs and LECs shall negotiate interconnection arrangements which shall contain mutually agreeable points of interconnection. Upon reaching agreement on the terms of interconnection, parties to the agreement shall file the agreement via advice letter with the Commission for expedited review and approval. Parties shall develop compensation provisions that appropriately reflect the usage of facilities. In the event parties are unable to reach agreement, parties may designate their own separate points of interconnection for terminating local traffic on each other's networks, if mutually agreeable, until the dispute is resolved by the Commission. \par\par H. Virtual or physical collocation interconnection arrangements are not precluded, and may be implemented by mutual agreement, but shall not be a mandatory form of LEC-CLC interconnection. \par\par I. Two-way trunking will be more conducive to efficient \'5B*176\'5D network utilization in a competitive environment. If two way trunks are used, CLCs shall submit percentages on a quarterly basis to LECs that represent the amount of local traffic a CLC is terminating on the LEC's network. Each CLC and LEC shall separately measure its total volumes and percentage of local usage sent to each carrier with which it interconnects and then exchange its measurements with that carrier as well as with CACD for monitoring purposes. Any independent verification of the traffic reported to CACD shall be funded jointly by all certificated local exchange competitors. \par\par J. In every LATA where a carrier originates traffic and interconnects with another carrier, it must interconnect with all of the other carriers' access tandams. \par\par K. If a CLC wishes to interconnect to an end office that is not SS7 capable, the LECs must accommodate the request via MF signaling. \par\par L. Symmetrical rights and obligations shall apply to LECs as well as CLCs in the exchange of confidential information. Each party shall be responsible for designating which information it claims to be confidential. \par\par M. CLCs' liability shall be no greater than the LECs' liability for any action \'5B*177\'5D or inaction resulting in a claim against a LEC. Parties may establish the actual limits which must be symmetrical. \par\par N. No competitor shall have the ability to terminate another carrier's service without prior notice or opportunity for proper recourse. \par\par O. LECs may require CLCs with no established credit record who order interconnection service to pay a deposit equal to an estimated two months of recurring flat-rated or usage-based interconnection charges based on the number and type of interconnection facilities ordered from the LEC. Bonds may not be required in addition to deposits. \par\par P. Interconnection standards set forth in subsection 6 of GO 133-B shall apply to both LECs and CLCs. \par \par (1) An Intercompany Interconnection Held Service Order (IIHSO) shall be reported when service is not provided within 15 days of the mutually agreed-upon due date. Local carriers shall file their IIHSOs on the last day of the following month. \par \par (2) An IIHSO report, broken down by individual CLC, shall contain the following information: \par \par a. the service order number \par b. the due date \par c. the company requesting interconnection \par d. whether the IIHSO is overdue \'5B*178\'5D to 15-20, 21-25, 26-30, 31-35, 36-40, 40-45, and over 45 days. \par e. the reporting unit (wire center or plant installation center) \par f. whether the IIHSO is pending or complete \par g. an explanation for the IIHSO\par \par \par (3) All local carriers shall refund nonrecurring interconnection charges for service orders held 45 days beyond the mutually agreed upon service date. Refunds do not apply if service order completion was delayed due to natural disasters, severe weather, labor disputes, or civil disturbances.\par \par \par 8. ADDITIONAL INTERCOMPANY ARRANGEMENTS \par\par A. LECs shall provide certain essential services under reasonable and nondiscriminatory terms and conditions, either under tariff or by contract on an interim basis pending further determination in Phase II. These essential services include busy line verify/emergency interrupt, and inclusion of CLC customer listings in LECs' directory assistance databases. \par\par B. CLCs shall have access to E-911 provided by the LEC under the same terms and conditions enjoyed by the LEC. LECs shall allow CLCs to connect to the LEC 911 tandems, routers, and other switching points serving the areas in which CLCs provide local exchange \'5B*179\'5D telecommunications services, for the provision of E-911 services and for access to all sustaining Public Safety Answering Points (PSAPs). CLCs shall compensate the LECs at a rate that covers the cost of providing access to E-911 and for any other related maintenance costs of E-911 databases. \par \par (1) Both facilities-based and resale CLCs shall provide residential customers access to E-911 service following disconnection due to nonpayment (i.e., \'22warm-line service\'22). Facilities-based CLCs and LECs must offer warm line service to resale CLCs. Resale CLCs shall offer warm line service to a customer as long as the CLC maintains an arrangement for resale service to the end user's premises. Following termination of the resale arrangement, the obligation to provide warm line service shall revert to the underlying facilities-based CLC or LEC. \par \par (2) LECs shall provision E-911 trunks within 30 business days from when ordered.\par \par (3) LECs shall charge CLC the LECs cost for provisioning maps of 911 tandem locations. \par \par (4) To ensure the timely update of 911 databases, CLCs shall provide information on new customers to the LEC within 24 hours of order completion. LECs shall update \'5B*180\'5D their databases within 48 hours of receiving data from the CLC. If the LEC detects an error in the CLC data, the data should be returned to the CLC within 48 hours from when it was first provided to the LEC. \par \par (5) LEC's shall ship Master Street Address Guide (MSAG) data to the CLC within 72 business hours from the time requested, either on paper, diskette, magnetic tape, or in a format suitable for use with desktop computers. \par \par (6) CLCs shall provide the 911 database administrator with any necessary information when interim number portability is discontinued to ensure proper and timely response to a 911 call. \par \par (7) CLCs are required to obtain a toll free number to serve as a contact point where PSAPs can obtain subscriber information from competent and trained personnel 24 hours a day, seven days a week. An industry-led task force shall monitor and enforce this requirement and distribute the toll free numbers to PSAPs.\par \par \par 9. UNIVERSAL LIFELINE SERVICE PROVISIONING \par\par Universal Lifeline Telephone Service shall be provided by both LECs and CLCs at the statewide rates established in D.94-09-065. Rules for Universal Lifeline service will be finalized in the \'5B*181\'5D Universal Service Rulemaking, R.95-01-020. \pard -\sect \sectd \sbknone -\f1 \fs20 \page ****------------------------------------------------------------------------****\par \par * 74 PAGES 3329 LINES JOB 83698 100E67 *\par * 7:49 P.M. STARTED 7:51 P.M. ENDED 05/04/98 *\par ****------------------------------------------------------------------------****\par ****------------------------------------------------------------------------****\par * EEEEE N N DDDD *\par * E N N D D *\par * E NN N D D *\par * EEE N N N D D *\par * E N NN D D *\par * E N N D D *\par * EEEEE N N DDDD *\par \par ****------------------------------------------------------------------------****\par \par ****------------------------------------------------------------------------****\par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par SEND TO: WILLIAMS, KALE \par CALIFORNIA PUBLIC UTILITIES COMM. \par LEGAL DIVISION \par 505 VAN NESS AVENUE, ROOM 2204 \par SAN FRANCISCO, CALIFORNIA 94102-3298} \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9512057.rtf b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9512057.rtf deleted file mode 100644 index 15a9055..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9512057.rtf +++ /dev/null @@ -1,65 +0,0 @@ -{\rtf1\ansi \deff0{\fonttbl{\f0\froman\fcharset0 Times New Roman;}{\f1\fmodern Courier New;}} -{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255;\red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue127;\red0\green127\blue127;\red0\green127\blue0;\red127\green0\blue127;\red127\green0\blue0;\red127\green127\blue0;\red127\green127\blue127;\red192\green192\blue192;} -{\stylesheet{\f0\fs20\lang1033 \snext0 Normal;}} -\paperw12240\paperh15840\margl1296\margr1296\margt1440\margb1440\gutter0 \widowctrl\ftnbj -\f1 \fs20 PRINT DOC REQUESTED: OCTOBER 23, 1997 100E67\par 1 DOCUMENT PRINTED\par 76 PRINTED PAGES\par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par SEND TO: WILLIAMS, KALE\par CALIFORNIA PUBLIC UTILITIES COMM.\par LEGAL DIVISION\par 505 VAN NESS AVENUE, ROOM 2204\par SAN FRANCISCO CALIFORNIA 94102-3298\par \par \par \par **********************************00435********************************** \par \pard -\page DATE: OCTOBER 23, 1997\par \par CLIENT: CPUC\par LIBRARY: STATES\par FILE: CAPUC\par \par \par YOUR SEARCH REQUEST IS:\par DECISION NO. 95-12-057\par \par NUMBER OF DECISIONS FOUND WITH YOUR REQUEST THROUGH:\par LEVEL 1... 1 \f1 \par \page \f0 \fs20 \li000\ri000 \pard -\qc NAME: Order Instituting Rulemaking on the Commission's Own\par \qc Motion into Competition for Local Exchange Service; Order\par \qc Instituting Investigation on the Commission's Own Motion\par \qc into competition for Local Exchange Service\par \par \pard -\qc NUMBER: Decision No. 95-12-057 Rulemaking No. 95-04-043,\par \qc Investigation No. 95-04-044\par \par \pard -\qc AGENCY: California Public Utilities Commission\par \par \pard -\qc CITE: 1995 Cal. PUC LEXIS 967; 167 P.U.R.4th 349\par \par \pard -\qc DATE: December 20, 1995\par \par \pard -PANEL: \'5B*1\'5D Daniel Wm. Fessler, President; P. Gregory Conlon, Jessie J. Knight, Jr., Henry M. Duque, Josiah L. Neeper, Commissioners \par\par\pard - OPINION \par\par I. Introduction \par\par By this decision, we take another significant step forward toward our ultimate goal of instituting a competitive market for telecommunications services for all Californians. As outlined herein, we approve the petitions of the competitive local carriers (CLCs) set forth in Appendix A for authority to offer facilities-based competitive local exchange service, and intra-LATA service for those petitioners that requested that authority, within prescribed service territories subject to our adopted interim rules. \par\par We are encouraged by the diversity and number of carriers who have expressed an interest in competing in the local exchange market. With the approval of petitions we grant today, we look forward to the rapid development of a robust and competitive market for local exchange services. \par\par As directed in D.95-07-054, prospective CLCs were to file petitions for authority by September 1, 1995, to enable us to act upon and approve them in time to allow local exchange competition for facilities-based CLCs to begin by January 1, \'5B*2\'5D 1996. As explained in D.95-07-054, we shall administer the certification process for CLCs using an approach similar to that of I.92-04-008 in which we extended authority to intraLATA toll entrants. In that proceeding, we opened a docket to handle certification of the more than 100 petitioners who sought expanded authority to offer intraLATA toll services. They received authority before January 1, 1995, but were not authorized to begin offering service until that date. In similar fashion, we are using the investigation docket of this proceeding to administer the certification of all of the eligible CLC petitions which were filed by September 1, 1995. As explained in D.95-07-054, the CLC petitions are to be processed and approved in two consolidated batches. The first batch of eligible petitions, representing facilities-based CLCs, will be approved in this decision for authority to begin offering competitive local exchange service effective January 1, 1996. Those facilities-based CLCs who met the September 1, 1995, filing date but who have not yet met the eligibility requirements for certification will be added to the pending group of petitions seeking CLC resale authority, which are \'5B*3\'5D scheduled for certification by March 1, 1996 if they meet the eligibility requirements by that time. All filings for certification after the September 1, 1995 deadline will be treated as routine applications for authority and will be processed individually, rather than in batches, their decisions being issued commencing after March 1, 1996. \par\par The California Public Utilities Commission (Commission), as the lead agency under the California Environmental Quality Act (CEQA) in this matter, finds that the proposed projects for competitive local exchange service, incorporating mitigation measures agreed to by the CLCs, have no potential to cause significant adverse effects on the environment. \par\par Pursuant to this decision, we shall authorize 31 companies to provide facilities-based local exchange service within the service territories of Pacific Bell (Pacific) and GTE California (GTEC). \par\par II. Summary of Petitions Filed \par\par On September 1, 1995, petitions were filed by 66 CLCs seeking authority to enter the local exchange market. The 66 petitioners include cable television companies, cellular companies, long distance service providers, and various other telecommunications companies, including \'5B*4\'5D some that specialize in transporting data. Also among the petitioners are Pacific and GTEC each seeking authority to compete in each other's service territory. \par\par Forty of the 66 petitions seek authority to offer facilities-based service. The remaining 26 seek authority only to offer resale service using the facilities of either Pacific or GTEC, or other carriers. For those petitioners who seek authority for both facilities-based and resale service who are included in the Appendix A listing, we shall grant authority only for facilities-based service at this time. We shall act upon the remaining request for resale authority according to the adopted schedule for initiating resale competition by March 1, 1996. Accordingly, in this decision, we address only the 40 petitions which seek facilities-based authority effective January 1, 1996, in accordance with the schedule set forth in D.95-07-054. Based upon our review, we find that 31 of the 40 petitions meet our stated criteria for certification as competitive local carriers and, accordingly, grant them CPCN authority effective January 1, 1996. \par\par No protests to the petitions were received, but on September 18, 1995, the Division of Ratepayer \'5B*5\'5D Advocates (DRA) filed a response to the petitions of Pacific and GTEC. In its filing DRA supports Pacific and GTEC's requests to provide service within each other's territory. However, DRA observed that we cannot authorize Pacific and GTEC to provide Category II services in each other's territory until we modify D.94-09-065 to remove the prohibition on LEC-on-LEC competition for these services. DRA recommends that the Commission be clear as to which services the companies are able to provide under the authority granted in this decision. \par\par III. Summary of Review Process \par \par A. General Review \par\par The CLC petitions have been reviewed for compliance with the certification and entry interim rules adopted in Appendices A and B of D.95-07-054. Consistent with our goal of promoting a competitive market as rapidly as possible, we are granting authority to all CLCs who have met the certification and entry requirements set forth in our interim rules. The purpose of the rules is to be disciplined enough to protect the public against unqualified or unscrupulous carriers, but to be liberal enough to encourage the entry of a large number of CLC providers to promote the rapid growth of \'5B*6\'5D competition. \par\par We conducted a review of the past record of the petitioners who are already certificated for other services to determine their fitness to offer local exchange service. A review of the complaint histories for some of the certificated carriers revealed that a few companies had significantly higher than average ratios of complaints to revenues. Some of those companies with the higher than average complaint histories have been accused of slamming. If the allegations of slamming against these companies are proven, we will take appropriate action at that time. \par\par This Commission is on record that it will impose severe sanctions on any company engaged in slamming activities. We want to make it very clear that we intend to prevent the emergence of the practice of slamming in California's newly competitive local exchange market. We will be vigilant and respond swiftly to any occurrences we find. As a result of this decision, 31 competitive local carriers (CLCs) are poised to enter the local exchange market. Those companies will be operating in a new environment where slamming will change a customer's dial tone provider, which could mean that a customer has a lesser grade of service \'5B*7\'5D or perhaps no service at all. We put these competitive local carriers on notice that we will be monitoring slamming complaints filed against them and intend to take whatever steps are necessary to ensure compliance with applicable state law and our own rules against slamming, including revocation of a noncompliant company's operating authority. \par\par Petitioners had to demonstrate that they possess the requisite managerial qualifications, technical competence, and financial resources to provide facilities-based local exchange service. As prescribed in Rule 4.B.(l), facilities-based CLCs must demonstrate that they possess a minimum of $100,000 in cash or cash-equivalent resources, as defined in the rule. Petitioners were also required to submit proposed tariffs which conform to the consumer protection rules set forth in Appendix B of D.95-07-054. \par\par CLC petitioners were also given further guidance regarding the requirements for CLC petitions through issuance of an ALJ ruling dated August 17, 1995. Petitioners were notified by letter during the week of November 13, 1995 regarding deficiencies in their filings, and were given 15 days in which to file corrections. Commonly encountered deficiencies \'5B*8\'5D included tariffs which were unclear or internally inconsistent, failure to provide facility location maps or to define the proposed local calling area, or inconsistency with our adopted interim rules. Corrections were submitted by petitioners during the weeks of November 27 and December 4 in response to the deficiency letters. Some companies, which are discussed below, did not submit their corrections within the established time frame. We have reviewed the filings and the corrections which were submitted in response to the deficiency letters. \par\par Based upon our review, we conclude that 31 of the 40 facilities-based petitioners have satisfactorily complied with our certification requirements for entry and accordingly grant these petitioners CPCN authority to offer local exchange service and, where requested, intraLATA authority, effective January 1, 1996. The list of petitioners eligible to commence service January 1, 1996, is set forth in Appendix A. Unless otherwise noted, petitioners will be authorized to begin service upon the filing of tariffs in accordance with the terms and conditions set forth in the proposed tariffs filed with their petitions or, as applicable, with their filed \'5B*9\'5D corrections of deficiencies. In the case of certain CLCs as identified in Appendix F, the authority granted is conditional upon the CLC further amending its filed tariff as described in Appendix F. \par B. California Environmental Quality Act (CEQA) Review \par\par We have also reviewed the petitions for compliance with CEQA. CEQA requires the Commission to assess the potential environmental impact of a project in order that adverse effects are avoided, alternatives are investigated, and environmental quality is restored or enhanced to the fullest extent possible. To achieve this objective, Rule 17.1 of the Commission's Rules requires the proponent of any project subject to Commission approval to submit with the petition for approval of such project an environmental assessment which is referred to as a Proponent's Environmental Assessment (PEA). The PEA is used by the Commission to focus on any impacts of the project which may be of concern and to prepare the Commission's Initial Study to determine whether the project would need a Negative Declaration or an Environmental Impact Report (EIR). \par\par Upon review of the petitioners' filed PEAs, the Commission Advisory and Compliance Division (CACD) \'5B*10\'5D performed an Initial Study of the expected significance of the environmental impacts of petitioners' projects. The scope of review was limited to the 40 petitions seeking to offer facilities-based service, which means that the petitioners would use their own facilities in providing local telephone service. The remaining 26 resale petitioners would not use any facilities of their own, but would merely rely on other carriers' facilities to offer resale service. \par\par Based on its assessment of the 40 facilities-based petitions, CACD prepared a draft Negative Declaration and Initial Study generally describing the facilities-based petitioners' projects and their potential environmental effects. The Negative Declaration prepared by CACD is considered a mitigated Negative Declaration. This means that although the initial study identified potentially significant impacts, revisions which mitigate the impacts to a less than significant level have been agreed to by the petitioners. (Pub. Res. Code {\f0\'A7} 21080(c)(2).) \par\par On October 18, 1995, the Negative Declaration and Initial Study was sent to various city and county planning agencies, as well as public libraries throughout the state for review and comment. \'5B*11\'5D CACD prepared a public notice which announced the preparation of the draft negative declaration, the locations where it was available for review, and the deadline for written comments. The public notice was advertised for two successive weeks in 55 newspapers throughout the state. The draft Negative Declaration was also submitted to the Governor's Office of Planning and Research where it was circulated to affected state agencies for review and comment. Public comments were received by November 20, 1995. \par\par All public comments were reviewed and answered. CACD then finalized the Negative Declaration covering all 40 facilities-based petitions. Comments and responses are attached as Subappendix C to the Final Negative Declaration (Appendix D). \par\par Based upon our Initial Study and the public comments, it has been determined that with the inclusion of mitigation measures incorporated in the projects, the proposed projects will not have potentially significant environmental effects. Accordingly, we shall approve the Negative Declaration as prepared by CACD including CACD's proposed Mitigation Monitoring Plan (attached as Subappendix D to the Final Negative Declaration) which will ensure that \'5B*12\'5D the Mitigation Measures listed by CACD will be followed and implemented. The approved Negative Declaration, including CACD's findings regarding potential environmental impacts and proposed mitigation measures is set forth in Appendix D. \par\par One petitioner, Info-Tech Communications (Info-Tech), has submitted a Final Environmental Impact Report (FEIR) as an amendment to its petition for a CPCN. The FEIR, certified by the City of Lincoln in April 1994, mitigates the environmental impacts regarding Info-Tech's proposed project in the Twelve Bridges community development in the City of Lincoln. \par\par Info-Tech submits that the FEIR sufficiently addresses the environmental concerns of its initial project for local telephone service, and that the Commission may rely on the FEIR as a Responsible Agency pursuant to CEQA. \par\par Info-Tech has petitioned the Commission to provide competitive local telephone service throughout the territories opened in D.95-07-054. Its intention at this time is to begin service in the City of Lincoln, but it may originate services in other parts of the state at a later date. While the FEIR may include some n1 assessment of Info-Tech's initial project in the city of Lincoln, \'5B*13\'5D the FEIR does not assess the impacts of Info- Tech's intent to compete statewide. The Commission's Final Negative Declaration is an assessment of the environmental impacts of every petitioner's intent to compete statewide, and therefore is applicable to all petitioners, including Info-Tech. The Commission's Final Negative Declaration cannot be replaced by, or superceded by the FEIR as long as Info-Tech intends to compete statewide. \par\par n1 It is unclear from the documents that Info-tech provided the Commission, the degree to which Info-tech's service was evaluated in Lincoln's FEIR. \par\par Therefore, while Info-Tech is required to abide by the mitigation measures contained in the FEIR, it will also be required to comply with the measures of the Final Negative Declaration adopted in this order. \par\par IV. Special Considerations \par\par Some of the petitions filed warrant individual comment. Included in that group are Pacific and GTEC who filed to provide service in each other's territory, as well as other companies filing for facilities-based authority who are not being certificated at this time. \par A. Pacific and GTEC's Petitions \par\par While Pacific and GTEC filed for CLC authority to compete \'5B*14\'5D in each other's territories on September 1, 1995, two procedural matters had to be disposed of before their requests for CLC authority could be granted. We had to amend D.94-09-065, the Implementation Rate Design (IRD) decision to allow for LEC-to-LEC competition for Category II services. Also, we had to act on applications filed by Pacific and GTEC for CPCNs to provide intraLATA services in each other's territory (A.95-09-004--GTEC and A.95-09-021--Pacific). \par\par GTEC filed a Petition to Modify Conclusion of Law (COL) 8 of D.94-09-065, to eliminate the ban on LEC-to-LEC competition in California. GTEC indicates that due to the issuance of this Commission's decision authorizing facilities-based local competition commencing January 1, 1996, the time has come to remove this ban. A separate decision scheduled for our vote today would grant GTEC's request and allow the two LECs to compete. Also today in two separate decisions, we will act on Pacific and GTEC's applications for intraLATA authority to provide service in each other's territory. Pacific and GTEC will be able to provide local exchange service in each other's territory as a CLC under the terms outlined in their respective petitions \'5B*15\'5D as amended by their filed deficiency corrections only after we have disposed of the procedural matters described above, and after this decision becomes effective. \par B. Communications TeleSystems International \par\par Communications TeleSystems International (CTS) timely filed a petition requesting authority to operate as both a facilities-based and resale CLC. CTS currently holds a CPCN from this Commission (U-5273-C) to operate as an inter-exchange carrier. In our review of the complaint histories of petitioners currently certificated by this Commission, we found that CTS had a ratio of complaints to revenue n2 that was ten times greater than any facilities-based carrier being certificated in this decision. A review of the nature of the complaints disclosed that 75% of all complaints involved items not ordered and 37% of the total related to slamming complaints. As we stated clearly elsewhere in this decision, we will not tolerate slamming, and will use the force of state law and our own rules to eliminate the practice. \par\par n2 The complaint data was derived from complaints filed with the Commission's Consumer Affairs Branch for 1994-95 and the revenues used for the denominator were obtained from 1994 survey data compiled by the Commission Advisory and Compliance Division. \'5B*16\'5D \par\par We have been advised that our Safety and Enforcement (S&E) staff are in the process of conducting an investigation into the business practices of CTS and are reviewing allegations of abusive marketing and business practices. S&E has stated its intention to file a protest prior to January 10, 1996, to CTS being authorized to provide local exchange service. After review of the issues raised in S&E's protest, we will determine whether CTS' complaint history is an impediment to our granting the company a CPCN to provide local exchange service.\par C. Cellular Radio Service Providers \par\par Four facilities-based cellular carriers registered by this Commission filed for both facilities-based and resale CLC authority. The four are: Bakersfield Cellular Telephone Company (U-3017-C), Cellular 2000 (U-3037-C), Mammoth Cellular, Inc. (U-3025-C), and SLO Cellular, Inc. (U-3044-C). In addition, Unitel Communications, a Limited Liability Company which, according to its Petition, \'22is commonly controlled with Santa Cruz Cellular Telephone, Inc. (U-3019-C)\'22 (Petition, pp 1-2) filed for both facilities-based and resale authority. The tariffs filed by the five companies did not describe the specific \'5B*17\'5D service the companies intended to provide. \par\par As determined in D.95-10-032, the issuance of a CPCN for a cellular carrier, where found necessary, is now deemed to be a ministerial act. We stated in that decision that where a CPCN is required, the Executive Director of the Commission, or his delegee, would promptly issue a CPCN to any cellular provider that does not have one, and has made the initial Wireless Registration Identification filing as required by D.94-10-031. This CPCN confirms the carrier's authority to provide those cellular services licensed by the FCC. Accordingly, the process of issuing CPCNs for cellular providers is distinctly different from the process outlined herein for issuing CPCNs for CLC authority to offer competitive local exchange service. \par\par The petitions of the above-referenced cellular providers for CPCN authority to enter the local exchange market raise questions regarding exactly what, if any, additional authority the cellular providers need or are seeking beyond that which they already possess. The cellular petitioners have failed to provide sufficient explanation in their requests for authority to permit us to discern whether they intend merely to continue \'5B*18\'5D to provide their existing cellular service in competition with other CLCs and LECs, whether they are seeking to construct separate facilities and to use a separate technology distinct from the cellular service they already offer or to use some hybrid technology which relies, in part, on cellular. \par\par The petitioners are directed to supplement their petition filings with additional information describing exactly what facilities, if any, beyond their existing cellular facilities they intend to use for competing in the local exchange market and the specific services they intend to provide. If petitioners merely intend to continue as cellular providers and compete for customers who may consider cellular as a substitute for service from a CLC, then it is not clear to us that the cellular provider is entitled to any additional authority for that purpose. Cellular providers already are able to offer competitive service on this basis. If the cellular petitioners believe that they either need or desire to come under the jurisdictional authority applicable to CLCs within their existing role as cellular providers, we shall permit them to file briefs addressing the legal issues involved in determining \'5B*19\'5D the relationship between our ministerial jurisdiction over cellular CPCN authority and the jurisdiction applicable to CLCs as outlined in this rulemaking. In particular, such briefs should address the LECs' obligations to offer cellular providers interim bill and keep provisions established for CLCs and how this relates to their existing interconnection contracts. \par\par In order to provide all parties with an interest in this issue with an opportunity to file briefs, we shall serve a copy of this order on the service list in I.93-12-007, the Commission's Wireless Investigation. If the cellular petitioners, or any other parties of record to this proceeding or to I.93-12-007, intend to file such briefs, they shall do so on or before January 15, 1996. \par\par If, on the other hand, the cellular providers intend to offer a new form of service using wireline technology, then they must clarify this distinction in their supplemental filings. Upon receipt of this supplemental filing from the cellular petitioners, we are prepared to promptly review the new information and, if they otherwise meet our CLC eligibility requirements, we will reconsider approving their petitions, extending to them the opportunity \'5B*20\'5D to enter into a separate interconnection agreement with the LECs and to receive bill and keep treatment for their separate service. \par\par We shall determine what further appropriate action to take with respect to the cellular petitions following receipt of the supplemental filings and/or briefs. \par D. U.S. Long Distance, Inc. (U-5485-C) \par\par In its Petition, U.S. Long Distance (USLD) requested authority to provide local exchange service on a resale and facilities-based basis. However, USLD's petition included the following statement: \'22Applicant furthermore seeks authority to provide facilities-based local services, at which time the Applicant intends to lease facilities from the aforementioned LECs or any other authorized and qualified facilities-based provider.\'22 (Petition at 4.) In discussions with staff, USLD indicated that it does not intend to use any of its own facilities to offer facilities-based local exchange service. The definition of a facilities-based CLC in Appendix A of D.95-07-054 requires that CLCs \'22directly own, control, operate, or manage conduits, ducts, poles, wires...in connection with or to facilitate communications within the local exchange portion of the public \'5B*21\'5D switched network.\'22 (mimeo., Appendix A at 3.) Since USLD intends to lease facilities to provide service, and does not directly own, control or operate any of its own facilities for the provision of local exchange service, the company is appropriately classified as a CLC reseller. USLD's petition for authority will be addressed in February 1996 with those of other CLC resellers. \par E. Caribbean Telephone and Telegraph (Caribbean) and Venture Technologies Group dba Allegro Communications (Venture) \par\par Caribbean and Venture both made timely filing of their petitions for local exchange authority. Commission staff reviewed the companies' petitions and sent a deficiency letter to each company on November 13, 1995. In a response addressed to the Docket Office on November 27, 1995, Venture requested an extension of 30 additional calendar days, until December 29, 1995, to respond. Venture went on to say that it does not intend to offer facilities-based services during 1996 and expressed its intent to amend its petition to reflect that change. \par\par Caribbean sent a letter to CACD on November 27, 1995 transmitting a motion for an extension of time to correct its filing. Caribbean asked that its \'5B*22\'5D petition be held for the March 1996 approval cycle. \par\par We approve Caribbean and Venture's request for additional time to file corrections to their filings and will consider their petitions with the reseller group to be certificated in February 1996. We will require the companies to file their corrections by January 15, 1996. \par F. Falcon Holding Group, L.P. \par\par Falcon Holding Group, L.P. (Falcon) did not timely file its Petition by 5:00 p.m. on September 1, 1995. Falcon's petition was served on all parties on September 1, 1995, but Falcon did not file its petition with the Docket Office until September 5, 1995. \par\par On October 2, 1995, Falcon moved for leave to late-file its petition, to have a petition number assigned, and for its petition to be treated as if it were timely filed. \par\par Ordering Paragraph 2 of D.95-07-054 is very clear about the timetable established for filing petitions for CLC authority: \par \par \'22If prospective competitive local carriers wish to obtain approval of a certificate of public convenience and necessity (CPCN) prior to the January 1, 1996 and March 1, 1996 dates for implementation of facilities based and bundled resale based competition, respectively, they shall \'5B*23\'5D file on or before September 1, 1995, a petition in the investigation portion of this proceeding...\'22\par The schedule developed for this proceeding was set to enable us to meet our self-imposed deadline of opening the local exchange market to competitors by January 1, 1996. We recognized at the time that our schedule was an ambitious one, with no room for slippage in the schedule if we were to achieve our goal. Falcon's motion for acceptance of its late-filed submittal came more than a month after the September 1, 1995, filing date, and staff's review of the petitions was well underway. We see no reason to reward Falcon for its late filing. Falcon's October 2, 1995, Motion is denied. Falcon's filing will be treated as any other application for CLC authority filed after September 1, 1995, and will be processed as expeditiously as possible, but outside the petition process established in D.95-07-054. \par\par V. Summary of Required Tariff Changes \par\par Petitioners listed in Appendix A are ordered to file compliance tariffs, which comply with the requirements outlined in the deficiency letters issued by CACD and subsequent ALJ Rulings issued on November 16 and November 21, 1995. Petitioners \'5B*24\'5D may not make any changes to their tariffs, other than those listed in the deficiency letters issued by CACD, or as ordered in this decision. \par\par The following tariff changes must be incorporated into the compliance filings made by all facilities-based carriers: \par\par 1. Two of the surcharges collected by telecommunications carriers will change effective January 1, 1996. The Universal Lifeline Telephone Service (ULTS) surcharge was increased from 3% to 3.2% of all intrastate services in Resolution T-15799 dated November 21, 1995. The Deaf Equipment Acquisition Fund (DEAF) Surcharge was increased from 0.3% to 0.36%, effective January 1, 1996, in Resolution T-15801 on October 5, 1995. Both changes must be reflected in the compliance tariff filings. \par\par 2. CACD conducted a workshop on October 18-19, 1995 to discuss how the deaf and disabled equipment distribution program would operate in an environment of multiple local exchange service providers. The December 11, 1995 workshop report prepared by CACD includes the recommendation that, in the short term, CLCs can contract with one of the incumbent providers to offer equipment and services to eligible deaf and disabled customers. CLCs are to amend \'5B*25\'5D their tariffs to state which of the following incumbent providers they intend to use to administer the program: Pacific, GTEC, the California Telephone Association (CTA) or Thomson Consulting which performs program functions for CTA. \par\par Staff's review of tariff corrections filed in response to deficiency letters showed that some deficiencies have not been fully corrected. Appendix F includes a list of specific deficiencies, some generally applicable to all petitioners, and others, by company, which must be corrected as part of each petitioner's tariff compliance filing on or before December 27, 1995. \par\par VI. Review of Limitations of Liability Provisions \par\par The consumer protection rules in Appendix B of D.95-07-054 included Rule 13 relating to the liability of the CLC. Rule 13 reads as follows: \par \par \'22The CLC shall not be liable for any failure of performance due to causes beyond its control, including, without limitation to, acts of God, fires, floods or other catastrophes, national emergencies, insurrections, riots or wars, strikes, lockouts, work stoppages or other labor difficulties, and any order, regulation or other action of any governing authority or agency thereof.\'22 (Appendix \'5B*26\'5D B at 12.)\par This is the standard force majeure language typically found in contracts. The consumer protection rules have no other references to limitations on the liability of the CLCs. \par\par Our review of the limitation of liability provisions of draft tariffs submitted by petitioners revealed that many of the petitions included liability provisions that were substantially more restrictive than the language of Rule 13. All of the deficiency letters mailed out included a statement that CLC limitation of liability provisions were still being reviewed, and that CLCs would be notified at a later date regarding any changes required to be made to those tariffs. \par\par Following is an illustrative sample of a typical liability provision which is included in Viacom Communications, Inc.'s petition: \par \par \'22The liability of the Company for damages arising out of the furnishing of these services, including but not limited to mistakes, omissions, interruptions, delays, or errors, or other defects, representations, or use of these services or arising out of the failure to furnish the service, whether caused by acts of commission or omission, shall be limited to the extension of allowances for interruption. \'5B*27\'5D The extension of such allowances for interruption shall be the sole remedy of the Customer or authorized user and the sole liability of the Company. The Company will not be liable for any special, consequential, exemplary or punitive damages a Customer may suffer, whether or not caused by the intentional acts or omissions or negligence of the Company's employees or agents.\'22 (Viacom's Petition, Original Sheet No. 72-T.)\par This and similar provisions found in the petitions filed by other companies raised the question as to the degree of tariff protection from liability that is appropriate in a competitive marketplace. Certainly a totally unregulated company can, to the extent allowed by law, craft any limits to its liability that it feels are necessary for its protection. However, the situation is somewhat different for tariff language for regulated entities. Once the provisions are in the tariff, that tariff rule cannot be reviewed, reversed or annulled by any court except the state Supreme Court, except as provided in Rule 9 of the Commission's Rules. Therefore, unlike customers of unregulated companies, customers of regulated utilities who institute actions for damages in superior \'5B*28\'5D court cannot challenge the tariff provisions which limit liability. \par\par In reviewing the limitation of liability provisions of LEC tariffs, we found the provisions to be much less restrictive than those provided in most CLC petitions. Certainly LECs have routinely included limits on liability in their tariffs, under the theory that a public utility which is strictly regulated should be allowed to limit its liability. If that were not the case, captive ratepayers could end up paying the costs of settlements in higher rates. However, in the case of CLC tariffs, we are not dealing with monopoly public utilities which are heavily regulated by this Commission. We are not disposed to approve limitation of liability provisions in CLCs' tariffs that are more restrictive than those of the incumbent LECs. This is one area where symmetrical provisions are desirable. Therefore, in this decision we will order CLCs to replace the current limitation of liability provisions in the draft tariffs they filed as part of the petition process with either Pacific or GTEC's limitation of liability provisions, as shown in Appendices B and C. \par \par VII. Compliance with FCC Order Regarding Calling Party Number \'5B*29\'5D \par\par Since our July Order, the FCC has issued its Caller ID Reconsideration Order (\'22Recon Order\'22) requiring all SS7-capable local exchange carriers to pass calling party number (CPN) to interconnecting carriers starting December 1, 1995. The FCC extended the effective date to June 1, 1996 for California carriers. The Recon Order also provides that carriers with a compelling need for more time may seek and obtain a waiver from the FCC. \par\par The Recon Order is consistent with state privacy law as well as Commission policy stated in D.92-06-065 and D.92-11-062. CLCs are hereby given notice that they must comply with the FCC's Reconsideration Order regarding passing CPN. Furthermore, CLCs are reminded that they must comply with P.U. Code Section 2893 if they choose to offer Caller ID service. \par\par VIII. Authority Granted \par\par The petitioners listed in Appendix A shall be granted certificate of public convenience and necessity (CPCN) authority to commence offering competitive local exchange service effective January 1, 1996, upon compliance with the following requirements. Petitioners listed in Appendix A shall file tariffs for retail service on or before December 27, 1995, in accordance with \'5B*30\'5D the terms and conditions set forth in their proposed tariffs. Unless petitioners are notified otherwise, their filed tariffs shall become effective January 1, 1996. \par\par All certificated CLCs shall be subject to all the rights and obligations under the Commission's adopted rules governing competitive local exchange service as set forth in D.95-07-054 and as further modified and expanded by today's companion decision in this docket. Any CLC which does not comply with our adopted rules for local exchange competition shall be subject to punitive sanctions including, but not limited to, revocation of its CLC certificate. \par Findings of Fact \par\par 1. D.95-07-054 authorized CLC candidates to file petitions for authority to offer competitive local exchange service within the service territories of Pacific and GTEC. \par\par 2. Those CLCs listed in Appendix A filed petitions as authorized under D.95-07-054 on or before September 1, 1995, and possess the fitness and financial responsibility necessary to provide competitive local exchange service. \par\par 3. No protests to the petitions have been filed. \par\par 4. A hearing is not required. \par\par 5. Petitioners in Appendix A have demonstrated that they have a minimum of \'5B*31\'5D $100,000 of cash equivalent reasonably liquid and readily available to meet their start-up expenses. \par\par 6. The Safety and Enforcement Division is currently investigating Communications TeleSystems International for alleged abusive marketing and business practices. \par\par 7. U.S. Long Distance, Inc. does not fit within the definition of a facilities-based competitive local carrier because it does not intend to use its own facilities to provide local exchange service. \par\par 8. Caribbean Telephone and Telegraph, Inc. and Venture Technologies Group, Inc. requested additional time to correct the deficiencies in their original filings. \par\par 9. Falcon Holding Group, L.P.'s petition was not filed in the Docket Office until September 5, 1995. \par\par 10. CEQA requires the Commission to assess the potential environmental impact of a project. \par\par 11. CACD has conducted an Initial Study of the environmental impact of the 40 facilities-based petitions received by September 1, 1995, and prepared a Mitigated Negative Declaration. \par\par 12. CACD has concluded that with the incorporation of all mitigation measures discussed in the Mitigated Negative Declaration, certification of the CLCs will result in no significant impact on \'5B*32\'5D the environment. \par\par 13. The conditions outlined in the Mitigation Monitoring Plan of the Mitigated Negative Declaration require the CLCs to provide CACD quarterly reports on compliance with the established mitigation measures. \par Conclusions of Law \par\par 1. The petitioners listed in Appendix A have the financial ability to provide the proposed service. \par\par 2. The petitioners listed in Appendix A have made a reasonable showing of technical expertise in telecommunications and related businesses. \par\par 3. Public convenience and necessity require the provision of competitive local exchange service to be offered by petitioners. \par\par 4. Petitioners listed in Appendix A are subject to: \par \par a. The 3.2% surcharge applicable to all intrastate services as defined in D.94-09-065 as amended by D.95-02-050, effective January 1, 1996, to fund the Universal Lifeline Telephone Service (PU Code {\f0\'A7} 879; Resolution T-15799, November 21, 1995); \par \par b. The 0.36% surcharge on all intrastate services as defined by D.94-09-065 as amended by D.95-02-050, effective January 1, 1996, to fund the California Relay Service and Communications Devices Fund (PU Code {\f0\'A7} 2881; Resolution T-15801, October 5, 1995); \par \par c. The user fee \'5B*33\'5D provided in PU Code {\f0\'A7}{\f0\'A7} 431-435, which is 0.1% of gross intrastate revenue for the 1995-96 fiscal year (Resolution M-4778); and \par \par d. The California High Cost Fund surcharge of 0.5% of all intrastate services as defined in D.94-09-065 as amended by D.95-02-050.\par 5. The petitions listed in Appendix A for a Certificate of Convenience and Necessity (CPCN) should be granted to the extent set forth in the order below. \par\par 6. Communications TeleSystems International's (CTS) request for CLC authority should be deferred until the Commission has an opportunity to review Safety and Enforcement's protest to determine whether CTS' complaint history is an impediment to granting a CPCN. \par\par 7. The petitions of CLCs who have filed but who do not meet the approval criteria for a CPCN should be denied or deferred for further review. \par\par 8. The limitation of liability provisions in petitioners' tariffs should be replaced with the limitation of liability language from Pacific's tariff in Appendix B or GTEC's limitation of liability tariff in Appendix C. \par\par 9. All tariff corrections described in Section V above and Appendix F should be incorporated into petitioners' compliance tariff filings. \par\par 10. The petitioners \'5B*34\'5D listed in Appendix A have agreed to and are required to carry out the specific mitigation measures outlined in the Negative Declaration to be in compliance with CEQA. \par\par 11. With the incorporation of the specific mitigation measures outlined in the Negative Declaration, the proposed projects will not have potentially significant environmental impacts. \par\par 12. Any CLC which does not comply with our rules for local exchange competition adopted herein or in further proceedings, shall be subject to sanctions including, but not limited to, revocation of its CLC certificate. \par\par 13. Because of the public interest in competitive local exchange service, the following order should be effective immediately. \par\par ORDER \par\par IT IS ORDERED that: \par\par 1. A certificate of public convenience and necessity is granted to each of the petitioners listed in Appendix A to operate as facilities-based Competitive Local Carriers within the service territories of Pacific Bell and GTE California, as described in each company's petition, subject to the conditions outlined below, the interim rules established in this proceeding, and Conclusion of Law No. 12 above. \par\par 2. Each petitioner shall file a written acceptance of \'5B*35\'5D the certificate granted in this proceeding on or before December 27, 1995. \par\par 3. Petitioners are authorized to file with this Commission on or before December 27, 1995, tariff schedules for the provision of local exchange and, for those companies so specified in Appendix A, intraLATA service. Petitioners may not offer the service specified in Appendix A until January 1, 1996. Any petitioner who files its tariff schedules after December 27, 1995, will have its tariffs become effective five days after filing. Petitioners' tariff filings shall be made in accordance with General Order (GO) 96-A, excluding Sections IV, V, and VI and will not include any changes from its original draft tariff included with its petition, except as amended by the corrections to its deficiency letter, or as amended by this decision. \par\par 4. Petitioners are competitive local exchange carriers (CLCs). The effectiveness of their future tariffs is subject to the schedules set forth in Appendix A, Section 4.E of D.95-07-054: \par \par \'22E. CLCs shall be subject to the following tariff and contract filing, revision and service pricing standards \'5BContracts shall be subject to GO 96-A rules for NDIECs, except those for interconnection\'5D: \'5B*36\'5D \par \par \'22(1) Uniform rate reductions for existing tariff services shall become effective on five (5) working days' notice to the Commission. Customer notification is not required for rate decreases. \par \par \'22(2) Uniform major rate increases for existing tariff services shall become effective on thirty (30) days' notice to the Commission, and shall require bill inserts, or a message on the bill itself, or first class mail notice to customers at least 30 days in advance of the pending rate increase. \par \par \'22(3) Uniform minor rate increases shall become effective on not less than five (5) working days' notice to the Commission. Customer notification is not required for such minor rate increases. \par \par \'22(4) Advice letter filings for new services and for all other types of tariff revisions, except changes in text not affecting rates or relocations of text in the tariff schedules, shall become effective on forty (40) days' notice to the Commission. \par \par \'22(5) Advice letter filings revising the text or location of text material which do not result in an increase in any rate or charge shall become effective on not less than five (5) days, notice to the Commission.\par 5. Petitioners may deviate from the \'5B*37\'5D following provisions of GO 96-A: (a) paragraph II.C.(1)(b), which requires consecutive sheet numbering and prohibits the reuse of sheet numbers, and (b) paragraph II.C.(4), which requires that \'22a separate sheet or series of sheets should be used for each rule.\'22 Tariff filings incorporating these deviations shall be subject to the approval of the Commission Advisory and Compliance Division's (CACD) Telecommunications Branch. Tariff filings shall reflect all fees and surcharges to which applicant is subject, as reflected in Conclusion of Law 4. \par\par 6. Petitioners in Appendix A shall file a service area map as part of their initial tariff, after the effective date of this order and consistent with Ordering Paragraph 3. \par\par 7. Petitioners in Appendix A shall notify this Commission in writing of the date local exchange service is first rendered to the public within 5 days after service begins. If a petitioner begins intraLATA service on a different date from when it begins local exchange service, the petitioner shall provide separate notification within 5 days after intraLATA service begins. \par\par 8. Petitioners in Appendix A shall keep their books and records in accordance with the Uniform System \'5B*38\'5D of Accounts specified in Title 47, Code of Federal Regulations, Part 32. \par\par 9. In the event the books and records of any petitioner are required for inspection by the Commission or its staff, petitioner shall either produce such records at the Commission's offices or reimburse the Commission for the reasonable costs incurred in having Commission staff travel to applicant's office. \par\par 10. Petitioners shall each file an annual report, in compliance with GO 104-A, on a calendar-year basis using the information request form developed by the CACD Auditing and Compliance Branch and contained in Appendix E. \par\par 11. Petitioners shall ensure that their employees comply with the provisions of Public Utilities Code (PU) Code {\f0\'A7} 2889.5 regarding solicitation of customers. \par\par 12. The certificates granted and the authority to render service under the rates, charges, and rules authorized will expire if not exercised within 12 months after the effective date of this order. \par\par 13. The corporate identification numbers assigned to each petitioner are included on Appendix A and shall be included in the caption of all original filings with this Commission, and in the titles of other pleadings filed in existing cases. \'5B*39\'5D \par\par 14. Within 60 days of the effective date of this order, each petitioner shown on Appendix A shall comply with PU Code {\f0\'A7} 708, Employee Identification Cards, and notify the Chief of CACD's Telecommunications Branch in writing of its compliance. \par\par 15. If any petitioner is 90 days or more late in filing an annual report or in remitting the fees listed in Conclusion of Law 4, CACD shall prepare for Commission consideration a resolution that revokes the petitioner's certificate of public convenience and necessity, unless the petitioner has received the written permission of CACD to file or remit late. \par\par 16. The limitation of liability provisions in petitioners' tariffs shall be replaced with the limitation of liability language from Pacific's tariff in Appendix B or GTEC's limitation of liability tariff in Appendix C. \par\par 17. Certificated CLCs as authorized under this decision shall be subject to the rights and obligations of interconnection with Pacific or GTEC as prescribed in the interim rules adopted in the companion decision being issued today in this docket. \par\par 18. The Final Negative Declaration including the Mitigation Monitoring Plan prepared by CACD and attached as Appendix D is hereby \'5B*40\'5D approved and adopted. \par\par 19. The petitioners in Appendix A shall comply with the conditions and carry out the mitigation measures outlined in the Negative Declaration contained in Appendix D to this order. \par\par 20. The petitioners in Appendix A shall provide the Director of the Commission Advisory and Compliance Division with reports on compliance with the conditions and implementation of mitigation measures under the schedule as outlined in the Negative Declaration. \par\par 21. Caribbean Telephone and Telegraph and Venture Technologies Group dba Allegro Communications shall file corrections to their petitions by January 15, 1996, if they wish to be granted authority with the group of petitions seeking CLC resale authority effective March 1, 1996. \par\par 22. All petitioners listed in Appendix A shall file either maps or a written description of their facilities with the Commission Advisory and Compliance Division on or before December 27, 1995, pursuant to Appendix A of D.95-07-054. Such maps or descriptions must be adequate for staff to make the determination that the Competitive Local Carrier is providing service to any interested customers located within 300 feet of the company's facilities. \par\par 23. \'5B*41\'5D Cellular petitioners referenced in Section IV.C are directed to file supplemental information clarifying the service they propose to offer and how, if at all, it differs from their existing cellular service. \par\par 24. The petitioners or any other party of record to this proceeding or to I.93-12-007 may file briefs no later than January 15, 1996, and reply briefs no later than January 25, 1996, addressing the legal jurisdictional and other relevant issues involved in cellular and other Commercial Mobile Radio Service providers coming under this Commission's jurisdiction as CLC carriers. \par\par 25. CLCs shall comply with the Federal Communications Commission's Reconsideration Order on passing Calling Party Number. \par\par 26. The petitions are granted, under the terms and conditions as set forth above. \par\par This order is effective today. \par\par Dated December 20, 1995, at San Francisco, California. \par\par Appendix A \par\par CLC Petitions Meeting Eligibility Requirements \f1 \par________________________________________________________________________________\par\par - Facilities-\par Based\par Authority\par Company Petition Granted\par No.\par 1 Advantage Communications Group, Inc. 15 Local\par 2 The Associated Group, Inc. 45 Local\par 3 AT&T Communications of California, Inc. 38 Local\par 4 Brooks Fiber Communications of Bakersfield 24 Local\par 5 Brooks Fiber Communications of Fresno 25 Local\par 6 Brooks Fiber Communications of Sacramento 1 Local\par 7 Brooks Fiber Communications of San Jose 2 Local\par 8 Brooks Fiber Communications of Stockton 27 Local\par 9 Cable Plus Company, L.P. 29 Local\par 10 Century Telecommunications, Inc. 31 Local\par 11 Continental Telecommunications of California 54 Local/IntraLATA\par 12 Electric Lightwave, Inc. 23 Local\par 13 Fiber Data Systems, Inc. 46 Local\par 14 GST Lightwave (CA), Inc. 36 Local\par 15 GST Pacific Lightwave, Inc. 37 Local\par 16 GTE California, Inc. 50 Local\par 17 GTE Intelligent Network Services, Inc. 49 Local\par 18 ICG Access Services, Inc. 20 Local\par 19 Info-Tech Communications 3 Local/IntraLATA\par 20 Linkatel Pacific, L.P. 35 Local\par 21 MCI Metro Access Transmission Services, Inc. 32 Local\par 22 MFS Intelenet of California, Inc. 5 Local\par 23 NewTelco, L.P. 18 Local/IntraLATA\par 24 NextLink of California, L.L.C. 28 Local\par 25 Pacific Bell 30 Local\par 26 Pac-West Telecomm, Inc. 7 Local\par 27 TCG Los Angeles 55 Local\par 28 TCG San Diego 56 Local\par 29 TCG San Francisco 57 Local\par 30 Viacom Communications, Inc. 33 Local/IntraLATA\par 31 Winstar Wireless of California, Inc. 59 Local\par________________________________________________________________________________\par\par -\f0 \'5B*42\'5D \f1 \par________________________________________________________________________________\par\par - Current New\par Company User Fee No. User Fee No.\par Advantage Communications Group, Inc. U-5317-C\par The Associated Group, Inc. U-5554-C\par AT&T Communications of California, Inc. U-5002-C\par Brooks Fiber Communications of Bakersfield U-5544-C\par Brooks Fiber Communications of Fresno U-5545-C\par Brooks Fiber Communications of Sacramento U-5419-C\par Brooks Fiber Communications of San Jose U-5420-C\par Brooks Fiber Communications of Stockton U-5546-C\par Cable Plus Company, L.P. U-5547-C\par Century Telecommunications, Inc. U-5548-C\par Continental Telecommunications of California U-5549-C\par Electric Lightwave, Inc. U-5377-C\par Fiber Data Systems, Inc. U-5166-C\par GST Lightwave (CA), Inc. U-5469-C\par GST Pacific Lightwave, Inc. U-5371-C\par GTE California, Inc. U-1002-C\par GTE Intelligent Network Services, Inc. U-5550-C\par ICG Access Services, Inc. U-5406-C\par Info-Tech Communications U-5551-C\par Linkatel Pacific, L.P. U-5307-C\par MCI Metro Access Transmission Services, Inc. U-5253-C\par MFS Intelenet of California, Inc. U-5397-C\par NewTelco, L.P. U-5552-C\par NextLink of California, L.L.C. U-5553-C\par Pacific Bell U-1001-C\par Pac-West Telecomm, Inc. U-5266-C\par TCG Los Angeles U-5462-C\par TCG San Diego U-5389-C\par TCG San Francisco U-5454-C\par Viacom Communications, Inc. U-5555-C\par Winstar Wireless of California, Inc. U-5556-C\par________________________________________________________________________________\par\par -\f0 \'5B*43\'5D \par\par APPENDIX B \par\par PACIFIC BELL LIMITATIONS OF LIABILITY TARIFF \par\par NETWORK AND EXCHANGE SERVICES \par\par A2. GENERAL REGULATIONS \par \par 2.1 RULES (Cont'd) \par \par 2.1.14 RULE NO. 14 - LIMITATION OF LIABILITY \par\par A. LIMITATIONS \par \par 1. The provisions of this rule do not apply to errors and omissions caused by willful misconduct, fraudulent conduct or violations of law. \par \par 2. In the event an error or omission is caused by the gross negligence of the Utility, the liability of the Utility shall be limited to and in no event exceed the sum of $10,000. \par \par 3. The Utility will not provide a credit allowance for interruptions of (N) service caused by the customer's facilities, equipment, or systems. (N) \par \par 4. Except as provided in A3. of this rule, the liability of the Utility for (T) damages arising out of mistakes, omissions, interruptions, delays, errors or defects in any of the services or facilities furnished by the Utility up to and including its local loop demarcation point, including exchange,(T) toll, private line, supplemental equipment, alphabetical directory listings (excluding the use of bold face type) and all other services, shall in no event exceed an amount equal to the pro rata charges to \'5B*44\'5D the customer for the period during which the services or facilities are affected by the mistake, omission, interruption, delay, error or defect, provided, however, that where any mistake, omission, interruption, delay, error or defect in any one service or facility affects or diminishes the value of any other service said liability shall include such diminution, but in no event shall the liability exceed the total amount of the charges to the customer for all services or facilities for the period affected by the mistake, omission, interruption, delay, error or defect. \par \par 5. Services Other Than Directory (T) \par \par The following allowances are provided for interruptions in service, as specified for particular services furnished solely by the Utility. (T) \par \par a. The Utility shall allow, for interruptions in service of 24 hours or more not due to conduct of the customer, an amount equal to the pro rata charges for each 24-hour period, or major fraction thereof after the initial period or interruption in the following services: \par\par (1) Mobile telephone service. \par\par (2) Private line services and channels, as follows: \par\par Private line telephone service. 1 \par\par Private line teletypewriter and Morse services. \'5B*45\'5D 1 \par\par Channels for data transmission. 1 \par\par Channels for remote metering, supervisory control and miscellaneous signaling purposes. 1 \par\par Continuous time announcement service. 1 \par\par Channels for one-way speech networks in connection with loudspeakers. 2 \par\par Channels for one-way program transmission networks in connection with loudspeakers. 2 \par\par Channels for farmer lines and toll service station lines. \par\par Bells and lights system attack warning service. \par\par (3) Wide Area Telecommunications Service (Refer to Schedule Cal.P.U.C. No. A7.1, A.b.). \par \par b. The Utility shall allow for interruptions in exchange telephone service of 24 hours or more not due to conduct of the customer an amount equal to the fixed monthly charges for exchange service multiplied by the ratio of the days of interruption to thirty days. When interruptions continue beyond 24 hours, credit allowance will be given in successive 24-hour multiples.\par \par \par NOTE 1: The allowance applies only to service within the same exchange area. \par NOTE 2: The allowance applies only to station equipment and/or channel facilities. \par \par c. RESERVED (T) \par\par (D) \par\par (D) \par \par d. The Utility shall allow for interruptions of 30 minutes or more not due to conduct of the customer \'5B*46\'5D (including authorized users) an amount equal to the pro rata charges in half-hour multiples for each 30-minute period or major fraction thereof after the initial period, of interruption in the following private line services and channels: \par\par (1) Private Line telephone service. \par\par (2) Private line teletypewriter and Morse Services. \par\par (3) Channels for data transmission. \par\par (4) Channels for remote metering, supervisory control and miscellaneous signaling purposes. \par\par (5) Continuous Time Announcement Service. \par\par (6) Channels for the remote operation of private mobile radio-telephone systems. \par\par (7) Channels for one-way speech networks in connection with loudspeakers. \par\par (8) Channels for one-way program transmission networks in connection with loudspeakers. \par\par (9) Special assembly services and channels for miscellaneous experimental purposes. \par\par The allowance on (1) preceding applies only to full period service. The allowance on Items (1) through (6) preceding applies only to service between separate exchange areas. The allowance on (8) and (9) preceding applies only to interexchange and interdistrict channels. \par \par e. The Utility shall allow for interruptions of 30 seconds or more not due to conduct of the \'5B*47\'5D customer or failure of facilities provided by the customer an amount equal to the pro rata charges in five-minute multiples for each five-minute period or major fraction thereof of interruption in the following private line services and channels. \par\par (1) Channels for program transmission in connection with loudspeakers, sound reproduction or sound recording. \par\par (2) Channels for video transmission in connection with television viewers. \par \par f. The Utility shall allow for interruptions of short period private line telephone service which aggregate one-sixth or more of the daily contract service not due to conduct of the customer (including authorized users) an amount equal to the pro rata charges for the period of interruption (excluding lost time made up later in the same day at the customer's request). \par \par g. The Utility shall allow for interruptions of two consecutive hours or more not due to conduct of the customer or failure of facilities provided by the customer an amount equal to 1/720 of the fixed monthly charge for each hour or major fraction thereof of interruption in private line channels for television transmission for use in educational television systems. \par \par h. The Utility shall \'5B*48\'5D allow an amount calculated as shown in (2) below, for interruptions in Dataphone Digital Service based on the Average Station Value, as defined in (1) below, and the length of the interruption, not due to conduct of the customer or authorized user or failure of facilities provided by the customer or authorized user or due to the failure of the customer to authorize replacement of any element of special construction, as specified in Schedule Cal.P.U.C. No. B2.2.5. The period during which no credit allowance will be made shall begin on the seventh day after the customer receives the Utility's notification of the need for such replacement and shall end on the day after the Utility receives the customer's authorization for such replacement. \par \par (1) Average Station Value \par\par The average station value is calculated by dividing the total monthly charge for a service by the total number of stations on the service. The total monthly charge shall be comprised of all charges associated with the service, including charges for all equipment assigned to all Digital Station Terminals on the service. \par \par (2) Credit Allowances for Interruptions \par\par For the purpose of determining the amount of allowance every \'5B*49\'5D month is considered to have 30 days and only those stations on the interrupted portions of a service shall be considered in determining the number of stations affected. \par\par - An interruption credit allowance is determined by (i) calculating the Average Station Value for one full day (Average Station Value divided by 30 (days)) (ii) multiplying the result of (i) by the \'22credit\'22 as specified following then (iii) multiplying the result of (ii) by the number of stations affected. \par\par - Interruptions of 24 Hours or Less\par \f1 \par________________________________________________________________________________\par\par -Length of Interruption Credit\par Less than 30 minutes None\par 30 minutes up to but not including 3 hours 1/10 day\par 3 hours up to but not including 6 hours 1/5 day\par 6 hours up to but not including 9 hours 2/5 day\par 9 hours up to but not including 12 hours 3/5 day\par 12 hours up to but not including 15 hours 4/5 day\par 15 hours up to 24 hours inclusive One day\par________________________________________________________________________________\par\par -\f0 Two or more interruptions of 30 minutes or more during any period up to but not including 3 hours, shall be considered as an interruption. \par\par -Interruptions Over 24 Hours \par\par Credit will be allowed in 1/5 day multiples for each 3 hour period of interruption or fraction thereof. No more than one full day's credit will be allowed for \'5B*50\'5D any period of 24 hours. \par \par i. The Utility shall allow for interruptions in the Gemini 100 offering of 24 hours or more not due to conduct of the customer an amount equal to the proportionate part of the fixed monthly charges in multiples of one day for each 24 hours or major fraction thereof for the Gemini 100 component service items rendered inoperative by the interruption. Allowance for interruptions of exchange service or private line service with which the Gemini 100 system is associated are subject to the provisions set forth in a., b. and d. preceding. \par\par For purposes of these regulations, an interruption is deemed to exist from the time it is reported to or detected by the Utility. \par \par 5. Subject to Section 3 of this rule the Utility shall allow for errors or omissions in alphabetical telephone directories (excluding the use of bold face type) an amount within the following limits: \par\par a. For listings in alphabetical telephone directories furnished without additional charge, an amount not in excess of the minimum monthly charge to the customer for exchange service during the effective life of the directory in which the error or omission occurred. \par\par b. For listings and lines of information \'5B*51\'5D in alphabetical telephone directories furnished at additional charge set forth in Schedule Cal.P.U.C. No. A5.7, an amount not in excess of the charge for that listing or line of information during the effective life of the directory in which the error or omission occurred. \par\par c. For listings in information records furnished without additional charge, an amount not in excess of the minimum monthly charge to the customer for exchange service during the period the error or omission continued. \par\par d. For listings in information records furnished at additional charge, an amount not in excess of the charge for the listing during the period the error or omission continued. \par\par e. For listings in telephone directories furnished in connection with mobile telephone service, an amount not in excess of the guarantee and fixed charges for the service during the effective life of the directory in which the error or omission occurred. \par \par 6. Temporary Suspension for Repairs \par\par The Utility shall have the right to make necessary repairs or changes in its facilities at any time and will have the right to suspend or interrupt service temporarily for the purpose of making the necessary repairs or changes in its \'5B*52\'5D system. When such suspension or interruption of service for any appreciable period is necessary, the Utility will give the customers who may be affected as reasonable notice thereof as circumstances will permit, and will prosecute the work with reasonable diligence, and if practicable at times that will cause the least inconvenience. \par\par When the Utility is repairing or changing its facilities, it shall take appropriate precautions to avoid unnecessary interruptions of conversations or customer's service. \par \par 7. Errors in Transmitting, Receiving or Delivering Oral Messages by Telephone \par\par The Utility shall not be liable for errors in transmitting, receiving or delivering oral messages by telephone over the lines of the Utility and connecting utilities. \par \par 8. Loss Arising From Non-Delivery of Written Messages \par\par The Utility shall be liable for loss or damage that may occur in the course of the employment of any messenger not to exceed twenty-times the charge for such messenger service, and shall be liable for loss or damage that may occur in the transmission of any message over its lines not to exceed the amount received for sending same. \par \par 9. Errors in Information Furnished by Directory \'5B*53\'5D Assistance Operators \par\par Subject to provisions of Section 3. of this rule, the Utility shall allow a credit for errors in telephone numbers or other information furnished by the Utility's Directory Assistance Operators in accordance with Schedule Cal.P.U.C. No. A5.7.4 an amount not in excess of the charge for a call to Directory Assistance, dialed direct or placed through another utility operator (i.e. \'22O\'22 operator) as appropriate to the call on which the error occurred. For direct dialed calls, the credit will only apply if the customer has exceeded their allowance and incurred a charge. \par\par APPENDIX C \par\par GTE OF CALIFORNIA LIMITATIONS OF LIABILITY TARIFF \par\par RULE NO. 26 \par \par LIMITATION OF LIABILITY \par \par A. Liability \par \par 1. The provisions of this rule do not apply to errors and omissions caused by willful misconduct, fraudulent conduct or violations of laws. \par \par 2. In the event an error or omission is caused by the gross negligence of the Utility, the liability of the Utility shall be limited to and in no event exceed the sum of $10,000. \par \par 3. Except as provided in Sections 1 and 2 of this rule, the liability of the Utility for damages arising out of mistakes, omissions, interruptions, \'5B*54\'5D delays, errors or defects in any of the services or facilities furnished by the Utility including exchange, toll, private line, alphabetical directory listings (excluding the use of (T) bold face type), and all other services shall in no event exceed an amount equal to the pro rata charges to the customer for the periods during which the services or facilities area affected by the mistake, omission, interruption, delay, error or defect, provided, however, that where any mistake, omission, interruption, delay, error or defect an any one service or facility affects or diminishes the value of any other service said liability shall include such diminution, but in no event shall exceed the total amount of the charges to the customer for all services or facilities for the period affected by the mistake, omission, interruption, delay, error or defect.\par \par \par B. Credit Allowance - Services other than Directory \par \par The following allowances are provided for interruptions in service, as specified for particular services furnished by the Utility: \par \par 1. The Utility shall allow, for interruptions in service of 24 hours or more not due to conduct of the customer, an amount equal to the pro rata \'5B*55\'5D charges for each 24-hour period, or major fraction thereof after the initial period of interruption in the following services: \par \par NOTE: The allowance on Items a. and b. applies to services within the same or different exchanges. \par\par a. Mobile Telephone Service \par\par b. Air Raid Warning Systems \par\par c. Special Access Services and Channels, as follows: (T) \par\par NOTE: The allowance on Items (1) through (13) applies only to service within the same exchange area. \par\par (1) Special Access Telephone Service. (T) \par\par (2) Speaker-Microphone Service. \par\par (3) Special Access Teletypewriter Service. (T) \par\par (4) Channels for Data Transmission. \par\par (5) Channels for Program Transmission in connection with Loudspeakers, Sound Reproduction or Sound Recording. \par\par (6) Channels for One-Way Speech Network in Connection with Loudspeakers. \par\par (7) Wideband Services. \par\par (8) Digital Data Service. \par\par (9) Channels for Remote Metering, Supervisory Control and Miscellaneous Signaling Purposes. \par\par (10) Alarm Transport Service. \par\par (11) Loudspeaker Paging System Service. \par\par (12) Optinet High Capacity Digital Service. \par\par (13) Optinet Switched Digital Service. \par\par (14) Channels for the Transmission of Closed Circuit Television Signals. \par\par (15) \par\par (16) Channels for the Remote \'5B*56\'5D Operation of Private Mobile Radiotelephone Systems. \par\par d. Wide Area Telephone Service \par \par Where credit is allowed against initial charges, the initial period shall be reduced in the same proportion, and additional hourly rates shall apply to each hour or major fraction thereof for Wide Area Telephone Service furnished in excess of the initial period as so reduced. \par\par e. Special Service Arrangements. \par \par 2. The Utility shall allow, for interruptions in exchange telephone service of 24 hours or more not due to conduct of the customer, an amount equal to the fixed monthly charges for exchange service multiplied by the ratio of the days of interruption to thirty days. When interruptions continued beyond 24 hours, credit allowance will be given in successive 24-hour multiples. \par \par 3. The Utility shall allow, for interruptions of 30 minutes or more not due to conduct of the customer (including authorized users), an amount equal to the pro rata charges in half-hour multiples for each 30-minute period, or major fraction thereof after the initial period, of interruption in the following private line services and channels: \par \par NOTE: The allowance on Items a. through h. below applies only to services \'5B*57\'5D between separate exchanges areas. \par\par a. Special Access Line Telephone Service. (T) \par\par b. Special Access Line Teletypewriter Service. (T) \par\par c. Channels for Data Transmission. \par\par d. Channels for Remote Metering, Supervisory Control and Miscellaneous Signaling Purposes. \par\par e. Speaker-Microphone Service. \par\par f. Wideband Services. \par\par g. Channels for One-Way Speech Network in Connection with Loudspeakers. \par\par h. Channels for the remote operation of private mobile radiotelephone systems. \par \par 4. The Utility shall allow, for interruptions of 30 seconds or more not due to conduct of the customer (including failure of facilities provided by the customer), an amount equal to the pro rata charges in five-minute multiples for each five minute period or major fraction thereof of interruption in private line channels for program transmission in connection with loudspeakers, sound reproduction or sound recording. \par \par 5. The Utility shall allow, for interruptions of two consecutive hours or more not due to conduct of the customer (including failure of facilities provided by the customer), an amount equal to 1/720 of the fixed monthly charge for each hour or major fraction thereof of interruption in private line channels \'5B*58\'5D for television transmission for use in closed circuit educational television service.\par \par \par For purposes of these regulations, an interruption is deemed to exist from the time it is reported to or detected by the Utility. \par \par C. Credit Allowances - Directory \par \par Subject to the provisions of Section A.3 of this rule the Utility shall allow, for errors or omissions in alphabetical telephone directories (excluding the use of bold face type), an amount within the following limits: \par \par 1. For listings in alphabetical telephone directories furnished without additional charge, an amount not in excess of the minimum monthly charge to the customer for exchange service during the effective life of the directory in which the error or omission occurred. \par\par X Correction \par \par 2. For listings and lines of information in alphabetical telephone directories furnished at additional charge, as set forth in Schedule Cal. P.U.C. No. D-1 an amount not in excess of the charge for that listing during the effective life of the directory in which the error or omission occurred. \par \par 3. For listings in information records furnished without additional (T) charge, an amount not in excess of the minimum monthly charge \'5B*59\'5D to the customer for exchange service during the period the error or omission continued. \par \par 4. For listings in information records furnished at additional (T) charge, an amount not in excess of the charge for the listing during the period the error or omission continued. \par \par 5. For listings in telephone directories furnished in connection (T) with mobile telephone service, an amount not in excess of the guarantee and fixed charges for the service during the effective life of the directory in which the error or omission occurred.\par \par \par x Correction \par\par APPENDIX D \par\par FINAL NEGATIVE DECLARATION AND INITIAL STUDY \par\par NEGATIVE DECLARATION \par\par Competitive Local Carriers' (CLCs) \par\par Projects for Local Exchange Telecommunication Service throughout California. \par \par PROJECT DESCRIPTION: \par \par The California Public Utilities Commission's Decision 95-07-054 enables various telecommunication companies to compete with local telephone companies in providing local exchange service. Previous to this decision, local telephone service was monopolized by a single utility per service territory. The Commission has received 66 petitions from companies to provide competitive local telephone service \'5B*60\'5D throughout areas presently served by Pacific Bell and GTE California. \par \par The 66 petitions include cable television companies, cellular (wireless) companies, long-distance service providers, local telephone service providers, and various other telecommunication companies that specialize in transporting data. \par \par 40 of the 66 petitions are for approval of facilities-based services, which means that the petitioners propose to use their own facilities in providing local telephone service. The remaining 26 petitions are strictly for approval of resale-based services, meaning that telephone service will be resold using another competitor's facilities. (Most of the facilities-based petitioners offer resale-based services as well.) The 40 facilities-based petitions indicate that physical modifications to existing facilities may be required, and construction of new facilities is a possibility in the long-term. (See Appendix B for a list of the facilities-based petitioners.) The 26 resale-based petitions are strictly financial and billing arrangements that involve no construction and are therefore considered to be exempt from the California Environmental Quality Act (CEQA) (Public Resources \'5B*61\'5D Code Sections 21000 et seq.). \par \par Since many of the petitioners are initially targeting local telephone service for areas where their telecommunication infrastructures are already established, very little construction is envisioned. In fact, approximately one-third of the 40 facilities-based petitioners indicate that no modifications or extensions are necessary since their facilities are already equipped to begin competition for local telephone services. For service areas that are beyond their current infrastructure, the petitioners generally plan to resell services, rather than build additional facilities. \par \par The remaining facilities-based petitioners will need to make modifications to their facilities. Some of these modifications are minor in nature, the most common being the installation of a switch that connects potential customers to outside systems. Switch installation is necessary because customers receiving a particular type of service may not have access to local telephone networks. For example, customers receiving cable television service are presently unable to connect to local telephone networks because of the differences in modes of service. A switch installation by a cable \'5B*62\'5D television provider is one step that makes the connection possible. Switch installation is considered a minor modification because it typically involves a single installation within an existing central communication facility or building. \par \par Besides the minor modifications, a minority of companies are planning to install their own fiber optic cables to provide adequate service. Cables will be installed within existing utility underground conduits or ducts, or attached to utility poles with existing overhead lines whenever possible. Fiber optic cables are extremely thin, and existing conduits will likely be able to hold multiple cables. However, if existing conduits or poles are unable to accommodate additional cables, then new conduits or poles will need to be constructed by the petitioner. In this case, the petitioners will construct within existing utility rights-of-way. There is also the possibility that the petitioners may attempt to access other rights-of-way (such as roads) to construct additional conduits. Extension of existing rights-of-way into undisturbed areas is not likely, but a possibility. \par \par The installation of fiber optic cables into underground conduits will vary \'5B*63\'5D in complexity depending upon the conditions of the surrounding area. For example, in urban, commercial areas, utility conduits can be accessible with minimal groundbreaking and installation simply requires stringing the cable through one end of the conduit and connecting it to the desired end. In this case, major excavation of the right-of-way is unnecessary. However, there may also be conditions where access to the conduit will require trenching and excavation. \par \par Many of the petitioners have no plans to construct service boxes or cabinets which contain batteries for the provision of power or emergency power. The dimensions of the boxes vary, but basically range from three to five feet in height. Depending upon the type of technology and facilities operated by the petitioner, smaller service boxes (approximately 3 inches in height) would be used for power supply and backup power. Those petitioners who have no plans to use such boxes already have capable power and backup power within their existing facilities. The few petitioners who will need such boxes, have committed to placing the boxes in existing buildings, or in underground vaults. If conditions do not permit building or underground \'5B*64\'5D installation, the petitioners would use small low-profile boxes that are landscaped and fenced. \par \par Cellular companies that wish to compete in providing local service are already required to comply with Commission regulations for the construction of new facilities or modification of existing facilities. The Commission's General Order (G.O.) 159 requires the cellular utilities to obtain all necessary local approvals and permits for a new or modified cell site before it receives approval from the Commission. This may involve an environmental review under CEQA. \par \par All the petitioners state their intention to compete in the territories presently served by Pacific Bell and GTE California. These territories encompass many of California's 58 counties, and therefore include almost all types of zoning designations. However it is unclear at this time if all zoned areas will be affected by the projects since the petitioners are not specific where they intend to compete in the long-run. \par \par It is expected that most of the petitioners will initially compete for customers in urban, dense commercial areas and residential zones where their telecommunication infrastructures already exist. In general, \'5B*65\'5D the petitioners' projects will be in places where people live or work. Cellular companies are somewhat of an exception in that they are not limited to urban or residential zones. Cellular technology is wireless and therefore enables them to provide communication service in areas that could be less populated but contain major transportation thoroughfares. Thus in some limited instances, the targeted areas for cellular projects could potentially be in agricultural, industrial, or uninhabited forested zones, depending upon the proximity of roads, streets or highways. However, this is not anticipated in the near-term. \par \par The California Public Utilities Commission is the lead agency in approving these petitioners' intent to compete in the local exchange market. Additional approvals by other agencies may be required depending upon the scope and type of construction proposed by the petitioner (e.g. federal, other state agencies, and ministerial permits by local agencies). \par \par ENVIRONMENTAL DETERMINATION \par \par An Initial Study was prepared to assess the projects' potential effects on the environment, and the respective significance of those effects. Based on the Initial Study, the CLCs' \'5B*66\'5D projects for competitive local exchange service have the potential to cause significant adverse effects on the environment in the area of Land Use and Planning, Geological Resources, Water, Air Quality, Transportation and Circulation, Hazards, Noise, Public Services, Aesthetic and Cultural Resources. The projects will have less than a significant effect in other resource areas of the checklist. It should be noted that Findings 2 through 10 are for those projects which require work within existing utility rights-of-way for the purpose of modifying existing facilities or installing new facilities. Finding 1 is applicable for work outside of the existing utility rights-of-way. \par \par In response to the Initial Study, the following specific measures should be incorporated into the projects to assure that they will not have any significant adverse effects on the environment. (See Public Resources Code Section 21064.5.)\par \par As a general matter, many of the mitigation measures rely on compliance with local standards and the local ministerial permit process. Although local safety and aesthetic input is essential in minimizing the impact of the petitioner's construction, local jurisdictions cannot \'5B*67\'5D impose standards or permit requirements which would prevent petitioners from developing their service territories, or otherwise interfere with the statewide interest in competitive telecommunication service. Therefore, the petitioners' required compliance with local permit requirements is subject to this limitation. \par \par The findings of the draft Negative Declaration were modified in response to comments filed during the public comment period. (See Appendix C for responses to comments.) Changes are marked by italics. \par \par 1. The proposed projects could have potentially significant environmental effects for all environmental factors if a proposed project extends beyond the utility right-of-way into undisturbed areas or into other rights-of-way. (\'22Utility right-of-way\'22 means any utility right-of-way, not limited to only telecommunication utility right-of-way.) For the most part, the petitioners do not plan to conduct projects that are beyond the utility right-of-way. However, should this occur, the petitioner shall file a Petition to Modify its Certificate for Public Convenience and Necessity (CPCN). An appropriate environmental analysis of the impacts of these site specific activities \'5B*68\'5D shall be done. \par \par 2. The proposed projects will not have any significant effects on Population and Housing, Biological Resources, Energy and Mineral Resources, and Recreation if the proposed projects remain within existing utility right-of-way. There are no potential environmental effects in these areas, or adequate measures are incorporated into the projects to assure that significant effects will not occur. \par\par 3. The proposed projects could have potentially significant environmental effects on Geological Resources because possible upgrades or installations to underground conduits may induce erosion due to excavation, grading and fill. It is unclear as to how many times underground conduits may be accessed by the petitioners, but it is reasonable to assume that constant excavation by various providers could result in erosion in areas where soil containment is particularly unstable. \par \par In order to mitigate any potential effects on geological resources, the petitioners shall comply with all local design, construction and safety standards by obtaining all applicable ministerial permits from the appropriate local agencies. In particular, erosion control plans shall be developed and implemented \'5B*69\'5D for areas identified as particularly unstable or susceptible to erosion. If more than one petitioner plans to excavate geologically sensitive areas, coordination of their plans shall be necessary to minimize the number and duration of disturbances. \par \par 4. The proposed projects could have potentially significant environmental effects on Water Resources because possible upgrades or installation to underground conduits may be in close proximity to underground or surface water sources. While the anticipated construction will generally occur within existing utility rights-of-way, the projects have the potential to impact nearby water sources if heavy excavation is required as the method of access to the conduits. \par \par In order to mitigate any potential effects on water resources, the petitioners shall comply with all local design, construction and safety standards. This will include consultation with all appropriate local and state water resource agencies for projects that are in close proximity to water resources, underground or surface. The petitioners shall comply with all applicable local and state water resource regulations. Appropriate site specific mitigation plans shall be developed \'5B*70\'5D by the petitioners if the projects impact water quality, drainage, direction, flow or quantity. If there is more than one petitioner for a particular area that requires excavation, coordination plans shall be required to minimize the number and duration of disturbances. \par \par 5. The proposed projects could have potentially significant environmental effects on Air Quality because possible excavation efforts for underground conduits may result in vehicle emissions and airborne dust for the immediate areas of impact. This is especially foreseeable if more than one petitioner should attempt such work in the same locale. While the impact will be temporary, the emissions and dust could exceed air quality standards for the area. \par \par The petitioners shall develop and implement appropriate dust control measures during excavation as recommended by the applicable air quality management district. The petitioners shall comply with all applicable air quality standards as established by the affected air quality management districts. If there is more than one petitioner for a particular area that requires excavation, coordination plans shall be required to minimize the number and duration of disturbances. \'5B*71\'5D \par \par 6. The proposed projects could have potentially significant environmental impacts on Transportation and Circulation and Public Services because uncoordinated efforts by the petitioners to install fiber optic cable could result in a cumulative impact of traffic congestion, insufficient parking and hazards or barriers for pedestrians. This is forseeable if the competitors choose to compete in the same locality and desire to install their own cables. If the selected area is particularly dense with heavy vehicular or pedestrian traffic, the impacts could be enormous without sufficient control and coordination. Uncoordinated efforts may also adversely impact the quality and longevity of public street maintenance because numerous excavation activity depreciates the life of the surface pavement. \par \par The petitioners shall coordinate their efforts to install fiber optic cables or additional conduits so that the number of encroachments to the utility rights-of-way are minimized. These coordination efforts shall also include affected transportation and planning agencies to coordinate other projects unrelated to the petitioners' projects. Besides coordinating their efforts, the petitioners \'5B*72\'5D shall abide by all local construction, maintenance and safety standards by acquiring the necessary ministerial permits from the appropriate local agency. Examples of these permits are excavation, encroachment and building permits. Appropriate construction start and end times, and dates if appropriate, shall be employed to avoid peak traffic periods and to minimize disruption, especially if the petitioners' work encroaches upon transportation rights-of-way. \par \par 7. The proposed projects could have potentially significant hazard-related effects because uncoordinated construction efforts described above could potentially interfere with emergency response or evacuation plans. There is also potential for an increase in overhead lines and poles which carry hazard-related impacts. \par \par The same mitigation plan as described in the previous section is applicable here as well, and shall be augmented by notice to and consultation with emergency response or evacuation agencies if the proposed project interferes with routes used for emergencies or evacuations. The coordination efforts shall include provisions so that emergency or evacuation plans are not hindered. If the projects result in an increase \'5B*73\'5D in overhead communication lines, the petitioner shall obtain the necessary ministerial permits to erect the necessary poles to support the lines. The Commission's Safety and Enforcement Division shall include these facilities as part of its overhead line regular inspections so that the requirements of G.O. 95 are met. \par \par 8. The proposed projects could have potentially significant environmental effects on Noise because it is possible some projects may require excavation or trenching. Although the effect is likely to be short-term, existing levels of noise could be exceeded. \par \par If the petitioner requires excavation, trenching or other heavy construction activities which would produce significant noise impacts, the petitioner shall abide by all applicable local noise standards and shall inform surrounding property owners and occupants (particularly school districts, hospitals and the residential neighborhoods) of the day(s) when most construction noise would occur. Notice shall be given at least two weeks in advance of the construction. \par \par 9. The proposed projects could have potentially significant environmental effects on aesthetics because it is possible that additional lines on poles \'5B*74\'5D in utility rights-of-way could become excessive for a particular area. Moreover, there is potential for an increase in above grade utility service boxes or cabinets which also carry aesthetic impacts. \par \par Local aesthetic concerns shall be addressed by the petitioners for all facilities that are above-ground, in particular all types of service boxes or cabinets. The local land use or planning agency shall be consulted by the petitioner so that any site-specific aesthetic impacts are assessed and properly mitigated. \par \par 10. The proposed projects could have potentially significant environmental effects on cultural resources because situations involving additional trenching may result in uncovering unanticipated archaeological or historical resources. \par \par Should cultural resources be encountered during construction, all earthmoving activity which would adversely impact such resources shall be halted or altered so as to avoid such impacts, until the petitioner retains the service of a qualified archaeologicalist who will do the appropriate examination and analysis. The archaeologist shall provide proposals for any procedures to mitigate the impact upon those resources encountered. \par \par In summary, \'5B*75\'5D the Mitigation Measures recommended in this environmental determination are: \par \par A) All Environmental Factors: if a proposed project extends beyond the utility right-of-way into undisturbed areas or other right-of-way, the petitioner shall file a Petition to Modify its Certificate for Public Convenience and Necessity (CPCN). (\'22Utility right-of-way\'22 means any utility right-of-way, not limited to only telecommunications utility right-of-way.) An appropriate environmental analysis of the impacts of these site specific activities shall be done.\par \par \par If the projects remain within the utility right-of-way, the following Mitigation Measures are recommended: \par \par B) General Cumulative Impacts: in the event that more than one petitioner seeks modifications or additions to a particular locality, the petitioners shall coordinate their plans with each other, and consult with affected local agencies so that any cumulative effects on the environment are minimized. These coordination efforts shall reduce the number and duration of disturbance to existing utility right-of-way. Regardless of the number of petitioners for a particular locality, the petitioner shall consult with, and abide \'5B*76\'5D by the standards established, by all applicable local agencies. Each petitioner shall file a quarterly report, one month prior to the beginning of each quarter, that summarizes the construction projects that are anticipated for the coming quarter. The summary will contain a description of the type of construction and the location for each project so that the local planning agencies can adequately coordinate multiple projects if necessary. The reports will also contain a summary of the petitioner's compliance with all Mitigation Measures for the projects listed. The quarterly reports will be filed with the local planning agencies where the projects are expected to take place and the Telecommunications Branch of the Commission Advisory and Compliance Division (CACD). The CACD filing will be in the form of an informational advice letter. Subsequent quarterly reports shall also summarize the status of the projects listed in previous quarterly report, until they are completed. \par \par C) Geological Resources: the petitioners shall comply with all local design construction and safety standards by obtaining all applicable ministerial permits from the appropriate local agencies including the \'5B*77\'5D development and approval of erosion control plans. These shall be developed and implemented for areas identified as particularly unstable or susceptible to erosion. If more than one petitioner plans to excavate sensitive areas, coordination of their plans shall be necessary to minimize the number of disturbances. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par D) Water Resources: the petitioners shall consult with all appropriate local and state water resource agencies for projects that are in close proximity to water resources, underground or surface. The petitioners shall comply with all applicable local and state water resource regulations including the development of site-specific mitigation plans should the projects impact water quality, drainage, direction, flow or quantity. If there is more than one petitioner for a particular area that requires excavation, coordination plans shall be required to minimize the number of disturbances. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par E) Air Quality: the petitioners shall develop and implement appropriate dust control \'5B*78\'5D measures during excavation as recommended by the applicable air quality management district. The petitioners shall comply with all applicable air quality standards as established by the affected air quality management districts. If there is more than one petitioner for a particular area that requires excavation, coordination plans shall be required to minimize the number of disturbances. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par F) Transportation and Circulation and Public Services: the petitioners shall coordinate their efforts to install fiber optic cables or additional conduits so that the number of disturbances to the utility rights-of-way are minimized. These coordination efforts shall include affected transportation and planning agencies to coordinate other projects unrelated to the petitioners' projects. Besides coordinating their efforts, the petitioners shall abide by all local construction, maintenance and safety standards by acquiring the necessary ministerial permits from the appropriate local agency. Examples of these permits are excavation, encroachment and building permits. Appropriate construction start \'5B*79\'5D and end times, and dates if appropriate, shall be employed to avoid peak traffic periods, especially if the petitioners' work encroaches upon transportation rights-of-way. Notice to the affected area (surrounding property owners and occupants) shall be given at least two weeks in advance of the construction. The notice will provide the time and dates of the proposed construction and discussion of potential impacts on traffic and circulation. The notice required for Mitigation Measures F and H shall be consolidated. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par G) Hazards: the petitioners shall use the Transportation and Circulation mitigation measure and augment it by informing and consulting with emergency response or evacuation agencies if the proposed project interferes with routes used for emergencies or evacuations. The coordination effort shall include provisions so that emergency or evacuation plans are not hindered. If the projects result in an increase in overhead communication lines, the petitioner shall obtain the necessary ministerial permits to erect the necessary poles to support the lines. The Commission's \'5B*80\'5D Safety and Enforcement Division shall include these facilities as part of its overhead line regular inspections so that the requirements of G.O. 95 are met. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par H) Noise: the petitioner shall abide by all applicable local noise standards and shall inform surrounding property owners and occupants, particularly school districts, hospitals and the residential neighborhoods, of the day(s) when most construction noise would occur if the petitioner plans excavation, trenching or other heavy construction activities which would cause any significant noise. Notice shall be given at least two weeks in advance of the construction. The notice required for Mitigation Measures F and H shall be consolidated. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par I) Aesthetics: All applicable local aesthetic standards will be addressed by the petitioners for all facilities that are above-ground, in particular all types of service boxes or cabinets. The local land use agency shall be consulted by the petitioner so that any site-specific aesthetic \'5B*81\'5D impacts are assessed and properly mitigated. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report. \par \par J) Cultural Resources: Should cultural resources be encounterd during construction, all earthmoving activity which would adversely impact such resources shall be halted or altered until the petitioner retains the service of a qualified archaeologicalist who will do the appropriate examination and analysis. The archaeologist will provide proposals for any procedures to mitigate the impact upon those resources encountered. The petitioner's compliance with this Mitigation Measure shall be included in its quarterly report.\par \par \par General Statement for all Mitigation Measures: \par \par Although local safety and aesthetic input is essential in minimizing the impact of the petitioner's construction, local jurisdictions cannot impose standards or permit requirements which would prevent petitioners from developing their service territories, or otherwise interfere with the statewide interest in competitive telecommunication service. Therefore, the petitioners' required compliance with local permit requirements is subject to this limitation. \par \par \'5B*82\'5D With the implementation of the mitigation measures listed in A) - J) above, the Commission should conclude that the proposed projects will not have one or more potentially significant environmental effects. The Commission should also adopt a Mitigation Monitoring Plan which will ensure that the Mitigation Measures listed above will be followed and implemented. The Mitigation Monitoring Plan will be included as an appendix in the Commission decision which adopts this final Negative Declaration. \par \par \'5BILLEGIBLE SIGNATURE\'5D for \par \par Douglas Long, Manager \par Environmental and Energy Advisory Branch \par Commission Advisory and Compliance Division \par \par Date 12/7/95 INITIAL STUDY CHECKLIST \par \par BACKGROUND INFORMATION \par \par A. Project Title: Competitive Local Carriers' (CLCs) Petitions for Local Exchange Telecommunication Service throughout California. \par \par B. Lead Agency and Contact Person: the Lead Agency for this project is the California Public Utilities Commission. The Commission contact person for this project is: \par \par Bruce Kaneshiro \par \par California Public Utilities Commission \par \par Environmental and Energy Advisory Branch \par \par Commission Advisory and Compliance Division \par \par 505 \'5B*83\'5D Van Ness Avenue \par \par San Francisco, CA 94102-3298 \par \par (415) 703-1187 \par \par C. Project Location: throughout various counties in California where local telephone service is currently provided by Pacific Bell and GTE California. See Appendix A for map. \par \par D. Project Sponsors' Names and Addresses: See Appendix B for list of all project sponsors. \par \par E. Project Description: The California Public Utilities Commission's Decision 95-07-054 enables various telecommunication companies to compete with the two largest local telephone companies in providing local exchange service. Previous to this decision, local telephone service was monopolized by a single utility per service territory. The Commission has received petitions from 66 companies to provide competitive local telephone service throughout the areas presently served by Pacific Bell and GTE California. \par \par The 66 petitioners include cable television companies, cellular (wireless) companies, long-distance service providers, local telephone service providers, and various other telecommunication companies that specialize in transporting data. \par \par 40 of the 66 petitions are proposed facilities-based services, which means that \'5B*84\'5D the petitioners propose to use their own facilities in providing local telephone service. (Most of the facilities-based petitioners offer resale-based services as well.) The remaining 26 petitions are strictly resale-based services, meaning that telephone service will be resold using another competitor's facilities. The 40 facilities-based petitions indicate that physical modifications to existing facilities may be required, and construction of new facilities is a possibility in the long-term. The 26 resale-based petitions are strictly financial and billing arrangements that involve no construction and are considered to be exempt from the California Environmental Quality Act's (CEQA) regulations. (Public Resources Code Sections 21000 et seq.)\par \par Since many of the petitioners are initially targeting local telephone service for areas where their telecommunication infrastructures are already established, very little new construction is envisioned. In fact, approximately one-third of the 40 facilities-based petitioners indicate that no modifications or extensions are necessary since their facilities are already equipped to begin competition for local telephone services. For service areas \'5B*85\'5D that are beyond their current infrastructure, the petitioners generally plan to use resell services, rather than build additional facilities. \par \par The remaining facilities-based petitioners will need to make modifications to their facilities. Some of these modifications are minor in nature, the most common being the installation of a switch that connects potential customers to outside systems. Switch installation is necessary because customers receiving a particular type of service may not have access to local telephone networks. For example, customers receiving cable television service are presently unable to connect to local telephone networks because of the differences in modes of service. A switch installation by a cable television provider is one step that makes the connection possible. Switch installation is considered a minor modification because it typically involves a single installation within an existing central communication facility or building. \par \par Besides the minor modifications, a minority of companies are planning to install their own fiber optic cables to provide adequate service. Cables (fiber or conventional) will be installed within existing utility underground conduits \'5B*86\'5D or ducts, or attached to utility poles with existing overhead lines whenever possible. Fiber optic cables are extremely thin, and existing conduits will likely be able to hold multiple cables. However, if existing conduits or poles are unable to accomodate additional cables, then new conduits and poles will need to be constructed by the petitioner. In this case, the petitioners will attempt to construct within existing utility rights-of-way. There is also the possibility that the petitioners may attempt to access other rights-of-way (such as roads) to construct additional conduits. Extension of existing rights-of-way is not likely, but a possibility. \par \par The installation of fiber optic cables in underground conduits will vary in complexity depending upon the conditions of the surrounding area. For example, in urban, commercial areas, utility conduits can be accessed with minimal groundbreaking; installation simply requires stringing the cable through one end of the conduit and connecting it to the desired end. In this case major excavation of the right-of-way is unnecessary. However, there may also be instances where the lack of access to the conduit will require heavy trenching that \'5B*87\'5D involves large machinery and excavation. \par \par Many of the petitioners have no plans to construct service boxes or cabinets which contain batteries for the provision of power or emergency power. The dimensions of the boxes vary, but basically range from three to five feet in height. Depending upon the type of technology and facilities operated by the petitioner, smaller service boxes (approximately 3 inches in height) would be used for power supply and backup power. Those petitioners who have no plans to use such boxes already have capable power and backup power within their existing facilities. The few petitioners who will need such boxes have committed to placing the boxes in existing buildings, or in underground vaults. If conditions do not permit building or underground installation, the petitioners would use small low-profile boxes that are landscaped and fenced. \par \par Cellular companies that wish to compete in providing local service have no plans at this time expand or modify their existing facilities. However, should they need to do so, they are required to comply with Commission regulations for the construction of new facilities or modification of existing facilities. The Commission's \'5B*88\'5D General Order (G.O.) 159 requires the cellular utilities to obtain all necessary local approvals and permits for a new or modified cell site before it receives approval from the Commission. This may involve an environmental review under CEQA. \par \par F. Zoning: All the petitioners state that their intention is to compete in the territories presently served by Pacific Bell and GTE California. These territories encompass many of California's 58 counties, and therefore include almost all types of zoning designations. However it is unclear at this time if all zoned areas will be affected by the projects since the petitioners are not specific where they intend to compete in the long-run. \par \par It is expected that most of the petitioners will initially compete for customers in urban, dense commercial areas and residential zones where their telecommunication infrastructures already exist. In general, the petitioners' projects will be in places where people live or work. Cellular companies are somewhat of an exception in that they are not limited to urban or residential zones. Cellular technology is wireless and therefore enables them to provide communication service in areas that could be \'5B*89\'5D less populated but contain major transportation thoroughfares. Thus in some limited instances, the targeted areas for cellular projects could potentially be in agricultural, industrial, or uninhabited forested zones, depending upon the proximity of roads, streets or highways. However, this is not anticipated in the near-term. \par \par G. Surrounding Land Use and Setting: All the petitioners state that their intention is to compete in the territories served by either Pacific Bell or GTE California which encompasses a variety of areas and settings. It is unclear at this time what specific surrounding land use areas will be affected by the projects. It is clear that in the short-term, the petitioners will focus their efforts where their infrastructure already exists. This is generally in commercial centers or residential communities. \par \par H. Public Agency Approval and Permits: the California Public Utilities Commission is the lead agency in approving these petitioners' requests to compete in the local exchange market. \par \par Permits from local planning agencies may be required depending on the scope and type of construction proposed by the petitioner. \par \par Environmental Factors Potentially \'5B*90\'5D Affected: \par \par The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a \'22Potentially Significant Impact\'22 as indicated by the checklist on the following pages. \par\par \'5Bcheckmark\'5D Land Use and Planning \par\par \'5B\'5D Population and Housing \par\par \'5Bcheckmark\'5D Geological Problems \par\par \'5Bcheckmark\'5D Water \par\par \'5Bcheckmark\'5D Air Quality \par\par \'5Bcheckmark\'5D Transportation/Circulation \par\par \'5B\'5D Biological Resources \par\par \'5B\'5D Energy and Mineral Resources \par\par \'5Bcheckmark\'5D Hazards \par\par \'5Bcheckmark\'5D Noise \par\par \'5Bcheckmark\'5D Mandatory Findings of Significance \par\par \'5Bcheckmark\'5D Public Services \par\par \'5Bcheckmark\'5D Utilities and Service Systems \par\par \'5Bcheckmark\'5D Aesthetics \par\par \'5Bcheckmark\'5D Cultural Resources \par\par \'5Bcheckmark\'5D Recreation \par \par Note: For construction outside of the utility rights-of-way, potential environmental impacts are too variable and uncertain to be specifically evaluated in this Initial Study, but are addressed in Environmental Determination 1 and Mitigation Measure (A) in the Negative Declaration. \par \par Determination: \par \par On the basis of this initial evaluation: \par \par I find that the proposed projects COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. \'5B*91\'5D \'5B\'5D \par \par I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the projects. A NEGATIVE DECLARATION will be prepared. \'5Bcheckmark\'5D \par \par I find that the proposed projects MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. \'5B\'5D \par \par I find that the proposed projects MAY have a significant effect(s) on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on an earlier analysis as described on attached sheets, if the effect is a \'22potentially significant impact\'22 or \'22potentially significant unless mitigated.\'22 An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. \'5B\'5D \par \par I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been analyzed adequately in \'5B*92\'5D an earlier EIR pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. \'5B\'5D \par \par \'5BILLEGIBLE SIGNATURE\'5D \par Signature \par\par Date 12/6/95 \par \par Douglas Long \par Printed Name \par\par For \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par I. LAND USE AND PLANNING.\par Would the proposal:\par a) Conflict with general \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par plan designation or\par zoning?\par b) Conflict with \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par applicable\par environmental plans\par or policies adopted by\par agencies with\par jurisdiction\par over the project?\par c) Be incompatible with \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par existing land use in the\par vicinity?\par d) Affect agricultural \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par resources or operations\par (e.g. impacts\par to soils or\par farmlands, or impacts\par from incompatible land\par uses)?\par e) Disrupt or divide the \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par physical arrangement of\par an established community\par (including a low-\par income or minority\par community)?\par________________________________________________________________________________\par\par -\f0 \par The proposed projects are not anticipated to have any significant impacts on general \'5B*93\'5D or environmental plans, zoning, existing land usage, or agricultural resources. The projects are essentially modifications to existing facilities within established utility rights-of-way. Since these rights-of-way are already designed to be in compliance with zoning and land use plans, disruption of such plans are not forseeable. In the event that the petitioners need to construct facilities that extend beyond the rights-of-way, see Mitigation Measure A in the Negative Declaration. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par II. POPULATION AND\par HOUSING.\par Would the proposal:\par a) Cumulatively exceed \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par official regional or\par local population\par projections?\par b) Induce substantial \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par growth in an area either\par directly or indirectly\par (e.g. through projects in\par an undeveloped area\par or extension of major\par infrastructure?\par c) Displace existing \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par housing, especially\par affordable\par housing?\par________________________________________________________________________________\par\par -\f0 \par The proposed projects will not have impacts upon population or housing. The purpose of the projects is to introduce competition into \'5B*94\'5D the local telephone service market. Since competition will be generally statewide and not centered in one locale, it is Is not anticipated that the projects will have an effect on population projections or housing availability of any particular area. The areas that will not initially receive the competition are rural, less populated areas; it cannot be seen that the initial lack of competitive services in these areas will result in significant movements of people to areas where competition will be heavy. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par III. GEOLOGIC PROBLEMS.\par Would the proposal result\par in or expose people\par to potential\par impacts involving:\par a) Fault rupture? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par b) Seismic ground \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par shaking?\par c) Seismic ground \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par failure,\par including liquefaction?\par d) Seiche, tsunami, or \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par volcanic hazard?\par e) Landslides or \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par mudflows?\par f) Erosion, changes in \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par topography or unstable\par soil conditions from\par excavation, grading, or\par fill?\par g) Subsidence of land? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par h) Expansive soils? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par i) Unique geologic or \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par physical features?\par________________________________________________________________________________\par\par -\f0 \'5B*95\'5D \par The projects will be constructed within existing utility facilities or established utility rights-of-way and will therefore not expose people to new risks for any of these impacts, except possibly erosion. Should additional cable facilities require the installation of new or upgraded conduits, trenching, excavation, grading and fill could be required. For appropriate mitigation, see Mitigation Measures (B) and (C) for details in the Negative Declaration. \par \par IV. WATER. Would the proposal result in: \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par a) Changes in absorption \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par rates, drainage patterns,\par or the rate and amount\par of surface runoff?\par b) Exposure of people of \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par property to water\par related hazards such\par as flooding?\par c) Discharge into \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par surface\par waters or other\par alteration\par of surface water quality\par (e.g. temperature,\par dissolved\par oxygen or turbidity)?\par d) Changes in the \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par amount of\par surface water in any\par water body?\par e) Changes in \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par currents, or\par the course or direction\par of water movements?\par f) Change in the \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par quantity\par of ground waters, either\par through direct additions\par or withdrawals, or\par through interception of\par an aquifer by cuts or\par excavations or through\par substantial loss of\par groundwater recharge\par capability?\par g) Altered direction \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par or rate\par of flow of groundwater?\par h) Impacts to \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par groundwater\par quality?\par i) Substantial reduc- \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par tion in\par the amount of groundwater\par otherwise available for\par public water supplies?\par________________________________________________________________________________\par\par -\f0 \'5B*96\'5D \par The projects will involve alterations to existing telecommunication facilities (underground conduits or overhead poles) but could expose additional risks if more than one petitioner decide to compete in the same locality. Efforts to install cables, or if necessary, new conduits, in utility rights-of-way that are in close proximity to an underground or surface water sources could carry significant effects for quality, flow, quantity, direction or drainage if done improperly and without coordination. See Mitigation Measures (B) and (D) in the Negative Declaration for details. \f1 \par________________________________________________________________________________\par\par -\par V. AIR QUALITY.\par Would the proposal:\par Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par a) Violate any air \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par quality\par standard or contribute\par to an existing or\par projected\par air quality violation?\par b) Expose sensitive \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par receptors\par to pollutants?\par c) Alter air movement, \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par moisture,\par or temperature, or\par cause any change in\par climate?\par d) Create objection- \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par able odors?\par________________________________________________________________________________\par\par -\f0 \par If the projects do not require excavation or \'5B*97\'5D trenching of underground conduits, they will not have an effect upon air quality, movement, temperature or climate. However, should the projects require such work and, if more than one petitioner decide to work in the same locale, there is potential for an increase in dust in the immediate area. See Mitigation Measures (B) and (E) in the Negative Declaration for details. \f1 \par________________________________________________________________________________\par\par -VI. TRANSPORTATION/\par CIRCULATION.\par Would the proposal\par result in:\par Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par a) Increased vehicle \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par trips or\par traffic congestion?\par b) Hazards to \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par safety from\par design features (e.g.\par sharp curves or\par dangerous\par intersections) or\par incompatible uses\par (e.g. farm equipment)?\par c) Inadequate emergency \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par access or access to\par nearby\par uses?\par d) Insufficient parking \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par capacity on-site\par or off-site?\par e) Hazards or barriers \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par for pedestrians\par or bicyclists?\par f) Conflicts with \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par adopted policies\par supporting\par alternative\par transportation\par (e.g. bus turnouts,\par bicycle racks)?\par g) Rail, waterborne \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par or air\par traffic impacts?\par________________________________________________________________________________\par\par -\f0 \'5B*98\'5D \par The petitioners plan to modify existing utility conduits or poles within existing utility rights-of-way initially in urban, commercial zones and residential areas. Modification of these facilities by a single party does not present significant impacts upon traffic or circulation since the installation process is not expected to be lengthy. However, if more than one of the petitioners decide to compete in the same locality, their efforts to install their own cables will have a significant cumulative effect on circulation, especially in dense, urban commercial areas. As a result, increases in traffic congestion, insufficient parking, and hazards or barriers for pedestrian are possible. \par \par See Mitigation Measures (B) and (F) in the Negative Declaration for details. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par VII. BIOLOGICAL\par RESOURCES.\par Would the proposal\par result in impacts to:\par a) Endangered, \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par threatened, or rare\par species or their\par habitats (including\par but not limited to\par plants, fish,\par insects, animals,\par and birds)?\par b) Locally designated \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par species\par (e.g. heritage trees)?\par c) Locally designated \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par natural\par communities (e.g. oak\par forest, coastal\par habitat, etc.)?\par d) Wetland habitat \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par (e.g. marsh,\par riparian and vernal\par pool)?\par e) Wildlife dispersal or \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par migration corridors?\par________________________________________________________________________________\par\par -\f0 \'5B*99\'5D \par The projects will not affect any biological resources since all anticipated work will occur within existing utility facilities or established utility rights-of-way. Established utility rights-of-way are assumed to be outside of locally designated natural communities, habitats or migration corridors. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par VIII. ENERGY AND MINERAL\par RESOURCES.\par Would the proposal\par result in:\par a) Conflict with adopted \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par energy conservation\par plans?\par b) Use non-renewable \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par resources\par in a wasteful and\par inefficient manner?\par c) Result in the loss \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par of availability\par of a known mineral\par resource that would\par be of future\par value to the\par region and the resi-\par dents of the State?\par \par________________________________________________________________________________\par\par -\f0 \par The projects will no impact upon mineral resources or the use of energy. The projects provide competitive telecommunication services that have no direct relationship to efficient energy use or mineral resources. The installation of additional fiber optic cables are within existing facilities or rights-of-way that \'5B*100\'5D are assumed to have adequate mitigation designs to avoid impacts on any mineral resources within proximity. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par IX. HAZARDS. Would the\par proposal involve:\par a) A risk of accidental \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par explosion or release of\par hazardous substances\par (including, but not\par limited\par to: oil, pesticides,\par chemicals\par or radiation)?\par b) Possible inter- \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par ference with\par an emergency response\par plan or emergency\par evacuation plan?\par c) The creation of \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par any health\par hazard or potential\par health hazard?\par d) Exposure of people to \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par existing sources\par of potential\par health hazards?\par e) Increased fire hazard \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par in areas with\par flammable\par brush, grass, or trees?\par________________________________________________________________________________\par\par -\f0 \par The installation of fiber optic cables can be a quick, clean and simple procedure with little use of heavy machinery. However there may be situations where excavation and trenching of underground conduits is necessary if the conduits are not easily accessible. Should this occur, uncoordinated efforts by \'5B*101\'5D the petitioners in one concentrated area could potentially affect emergency response or evacuation plans for that locale. See Mitigation Measures (B) and (G) in the Negative Declaration for details. Once the project is completed, the additional cables do not represent any additional hazards to people nor do they increase the possibility of fires. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par X. NOISE. Would the\par proposal result in:\par a) Increases in existing \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par noise levels?\par b) Exposure of people \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par to severe noise\par levels?\par________________________________________________________________________________\par\par -\f0 \par The anticipated projects can be a quick and simple procedure, but in some cases could require heavy machinery or construction activity such as excavation, trenching, grading and refill. There is also the possibility that uncoordinated efforts by the petitioners in one locale could increase existing noise levels, if their activities involve the construction described. See Mitigation Measures (B) and (H) in the Negative Declaration for details. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par XI. PUBLIC SERVICES.\par Would the\par proposal have an\par effect upon, or result\par in a need\par for new or altered\par government services\par in any of\par the following areas:\par a) Fire protection? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par b) Police protection? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par c) Schools? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par d) Maintenance of pub- \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par lic facilities,\par including roads?\par e) Other government \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par services?\par________________________________________________________________________________\par\par -\f0 \'5B*102\'5D \par The proposed projects will increase competition in the local telephone service. The construction associated with the projects have potential impacts on the maintenance of public streets and roads. Numerous disturbances to the street surfaces depreciates the quality and longevity of the pavement. Mitigation Measure F addresses this impact. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par XII. UTILITIES AND\par SERVICE SYSTEMS.\par Would the\par proposal result\par in a need for\par new systems or supplies,\par or substantial alter-\par ations to\par the following utilities:\par a) Power or natural gas? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par b) Communication \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par systems?\par c) Local or regional \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par water treatment or\par distribution facilities?\par d) Sewer or septic \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par tanks?\par e) Storm water drainage? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par f) Solid waste disposal? \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par g) Local or regional \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par water supplies?\par________________________________________________________________________________\par\par -\f0 \par The proposed projects could substantially alter communication systems in the event that existing facilities are \'5B*103\'5D unable to accomodate all of the participants in the market. If this should occur, additional conduits or poles for telecommunication equipment will need to be inserted in existing utility rights-of-way or the petitioners may seek entry to other rights-of-way. If the petitioners are forced to construct outside of the existing utility rights-of-way, Mitigation Measure A is applicable. For work within the rights-of-way, see Mitigation Measure B in the Negative Declaration. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par XIII. AESTHETICS.\par Would the proposal:\par a) Affect a scenic vista \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par or scenic highway?\par b) Have a demonstrated \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par negative\par aesthetic effect?\par c) Create light \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par or glare?\par________________________________________________________________________________\par\par -\f0 \par The proposed projects will occur within utility rights of way that will be either be undergrounded or on existing poles. Undergrounded facilities will have no demonstrated negative aesthetic effects. Additional lines on the poles may be a concern, but the proposed cables are not easily discernable and will unlikely have a \'5B*104\'5D negative impact. The only scenario where an aesthetic effect can occur is if the number of competitors for a particular area become so heavy that the cables on the poles become excessive. There is potential for an increase in service boxes if the boxes cannot be installed within buildings or underground. Should this occur, the petitioners should follow Mitigation Measures (B) and (I) as described in the Negative Declaration. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par XIV. CULTURAL RESOURCES.\par Would the proposal:\par a) Disturb paleontol- \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par ogical\par resources?\par b) Disturb archaeo- \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par logical\par resources?\par c) Affect historical \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par resources?\par d) Have potential to \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par cause a physical\par change\par which would affect\par unique\par ethnic cultural values?\par e) Restrict existing \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par religious or sacred\par uses within\par the potential impact\par area?\par________________________________________________________________________________\par\par -\f0 \par The projects will involve existing utility facilities or established rights-of-way that are assumed to be clear from any paleontological, \'5B*105\'5D historical or archaeological resources. However, some projects may require excavation or trenching of utility rights-of-way, or outside the rights-of-way. If unanticipated cultural resources are encountered during such work, then the Mitigation Measures (B) and (J) should be followed. See Negative Declaration for details. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par XV. RECREATION.\par Would the proposal:\par a) Increase the \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par demand for\par neighborhood or\par regional parks or other\par recreational facilities?\par b) Affect existing \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par recreational\par opportunities?\par________________________________________________________________________________\par\par -\f0 \par The projects will have no impact on recreational facilities or opportunities since these resources have no direction relationship to increased competition in local telephone services. \f1 \par________________________________________________________________________________\par\par - Potentially\par Significant\par Potentially Unless Less Than\par Significant Mitigation Significant No\par Impact Incorporated Impact Impact\par XVI. MANDATORY FINDINGS\par OF SIGNIFICANCE.\par a) Does the project \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par have the potential\par to degrade the\par quality of the\par environment,\par substantially\par reduce the\par habitat of a fish\par or wildlife species,\par cause a fish or\par wildlife population\par to drop\par below self-sustaining\par levels, threaten to\par eliminate\par a plant or animal\par community, reduce the\par number\par or restrict the range\par of a rare or endangered\par plant\par or animal, or eliminate\par important examples of\par the major\par periods of California\par history or prehistory?\par b) Does the project \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par have the\par potential to achieve\par short-term, to the\par disadvantage\par of long-term,\par environmental goals?\par c) Does the project \'5B\'5D \'5Bcheckmark\'5D \'5B\'5D \'5B\'5D\par have impacts\par that are individually\par limited, but\par cumulatively\par considerable?\par (\'22Cumulatively\par considerable\'22 means\par that the\par incremental effects of a\par project are consid-\par erable when\par viewed in connection\par with the effects of past\par projects,\par the effects of other\par current projects, and\par the effects\par of probably future\par projects.)\par d) Does the project have \'5B\'5D \'5B\'5D \'5B\'5D \'5Bcheckmark\'5D\par environmental\par effects which\par will cause substantial\par adverse\par effects on human beings,\par either directly or\par indirectly?\par________________________________________________________________________________\par\par -\f0 \'5B*106\'5D \par\par Appendix A \par\par \'5BSEE TELEPHONE EXCHANGE AREAS CALIFORNIA PUBLIC UTILITIES COMMISSION IN ORIGINAL\'5D \par\par APPENDIX B \par\par Project Sponsors and Addresses \f1 \par________________________________________________________________________________\par\par -1. Advantage Communications Group 100 Swan Way, Suite 200\par Oakland, CA 94621\par 2. AT&T Communications of California 795 Folsom Street\par San Francisco, CA 94107\par 3. Bakersfield Cellular Telephone Co. 4200 Truxton Avenue\par Bakersfield, CA 90035\par 4. Brooks Fiber Communication 525 Almanor Avenue\par of Bakersfield\par Sunnyvale, CA 94086\par 5. Brooks Fiber Communication 525 Almanor Avenue\par of Fresno\par Sunnyvale, CA 94086\par 6. Brooks Fiber Communication 10316 Placer Lane\par of Sacramento\par Sacramento, CA 95827\par 7. Brooks Fiber Communication 525 Almanor Avenue\par of San Jose\par Sunnyvale, CA 94086\par 8. Brooks Fiber Communication 525 Almanor Avenue\par of Stockton\par Sunnyvale, CA 94086\par 9. Cable Plus Company 11400 S.E. Sixth Street,\par Suite 120\par dba Telephone Plus Bellevue, WA 98004\par 10. Caribbean Telephone and Telegraph 1249 Washington Blvd.,\par Suite 2015\par Detroit, MI 48226\par 11. Cellular 2000 3250 G Street\par Merced, CA 95340\par 12. Century Telecommunications 50 Locust Avenue\par New Canaan, Connecticut 06840\par 13. Communication TeleSystems 4350 La Jolla Village\par International Dr., Suite 100\par San Diego, CA 92122\par 14. Continental Telecommunications 550 N. Continental Blvd.,\par of California Suite 250\par El Segundo, CA 90245\par 15. Electric Lightwave 8100 N.E. Parkway\par Drive, Suite 150\par Vancouver, CA 98662\par 16. Fiber Data Systems 111 West Washington Boulevard\par Suite G\par Montebello, CA 90640\par 17. GST Lightwave 580 Executive Center\par 11501 Dublin Boulevard,\par Suite 200\par Dublin, CA 94568\par 18. GST Pacific Lightwave 3403 Tenth Street, Suite 630\par Riverside, CA 92501\par 19. GTE California One GTE Place\par Thousand Oaks, CA 91362-3811\par 20. GTE Intelligent Network Services 5525 MacArthur Blvd., Suite 445\par Irving, TX 75038\par 21. ICG Access Services 1050 17th. Street, Suite 1610\par Denver, CO 80265\par 22. Info-Tech Communications 1515 Lincoln Way\par Auburn, CA 95603\par 23. Linkatel Pacific 1924 Deere Avenue, Suite 110\par Santa Ana, CA 92706\par 24. Mammoth Cellular 330 120th Avenue N.E., #200\par Bellevue, WA 98005\par 25. MCI Metro Access Transmission 2250 Lakeside Boulevard\par Services\par Richardson, TX 75082\par 26. MFS Intelnet of California 185 Berry Street, Building One\par Suite 5100\par San Francisco, CA 94107\par 27. NewTelco, 9221 Ward Parkway\par dba Sprint Telecommunications Venture Kansas City, Missouri 64114\par 28. NextLink of California 2433 Carillon Point\par Kirkland, WA 98033\par 29. Pacific Bell 140 New Montgomery Street\par San Francisco, CA 94105\par 30. Pac-West Telecomm 4202 Coronado Avenue\par Stockton, CA 95204\par 31. SLO Cellular 733 Marsh Street\par San Luis Obispo, CA 93401\par 32. TCG Los Angeles 700 Flower Street\par Los Angeles, CA 90017\par 33. TCG San Diego 1370 India Street\par San Diego, CA 92101\par 34. TCG San Francisco One Bush Street\par San Francisco, CA 94104\par 35. The Associated Group 200 Gateway Towers\par dba Associated Communications Pittsburgh, PA 15222\par of Los Angeles\par 36. Unitel Communications 3949 Research Park Court,\par Suite 100\par Santa Cruz, CA 95073\par 37. U.S. Long Distance 9311 San Pedro, Suite 300\par San Antonio, TX 78216\par 38. Venture Technologies Group 6611 Santa Monica Blvd.\par dba Allegro Communications Los Angeles, CA 90038-1311\par 39. Viacom Communications 5924 Stoneridge Drive\par Pleasanton, CA 94588\par 40. Winstar Wireless of California 7779 Leesburg Pl.,\par Suite 401 South\par Tyson's Corner, VA 22043\par________________________________________________________________________________\par\par -\f0 \'5B*107\'5D \par\par APPENDIX C \par\par Response to Comments: \par \par Comment letters were received from several local agencies on the draft Negative Declaration and Initial Study. The following are responses to these comments: \par \par 1. Antero Rivasplata, Chief, State Clearinghouse, dated 11/17/95. \par\par No comments from state agencies sent through the Clearinghouse. \par \par 2. Kellie Morgantini, Community Services Director, City of Greenfield, dated 10/20/95. \par\par No comments on the projects. \par \par 3. Richard Hoffstadt, Development/Subdivision Engineer, City of Newport Beach, dated 10/25/95. \par \par Comment #1: The Negative Declaration does not address the potential impacts of the projects on the City's streets. The installation of additional lines, manholes and service cabinets in the right-of-way will overwhelm the existing right-of-way, and interfere with the maintenance of other utility services. Recommends that a maximum of four (4) petitioners be permitted in any one street right-of-way. All other petitioners will be forced to lease facilities from those already in the right-of-way. \par \par Response: The impact of the projects on streets is noted and the petitioners would be required to work in cooperation \'5B*108\'5D with each other and the local agencies so that the number of disturbances to the right-of-way are minimized as discussed in Mitigation Measures B and F. One suggestion is for the local agencies to establish one or more construction time periods or \'22windows\'22 for the petitioners to install their facilities in the public right-of-way. The windows could be determined by street construction projects already planned. Applications received after a predetermined date could have to wait for the next construction \'22window\'22 established by the local agency. We cannot accept the recommendation to limit the petitioners to four (4) per street because the Commission has already determined in D.95-07-054 that competition for local telephone service is open to all petitioners who filed their intent to provide that service. \par \par Comment #2: The Negative Declaration does not address the reduction of service life of streets as a result of trenching and patching. Studies indicate that pavement life is reduced from 20% to 30% once it has been trenched. Recommends that a variety of specific construction standards for street patching and the assessment of a Street Deterioration Fee to offset the reduction \'5B*109\'5D of street life. \par \par Response: Question XI(d) of the Initial Study has been amended to discuss impacts to maintenance of public roads. Mitigation Measure F has been amended to specifically state that the petitioners are required to abide by all local standards by obtaining various ministerial permits such as encroachment or building permits. Specific construction standards as recommended in the comment can be incorporated into the local permit process. The same can be said for the Street Deterioration Fee. However, ministerial permits and local standards cannot be used by a local agency as a discretionary tool to prevent or limit a state-wide interest in competition for local telephone service. \par \par Comment #3: The Negative Declaration does not address the visual impacts of the above service grade cabinets needed to provide service. Besides visual impacts, the City is concerned about potential liability for the cabinets in sidewalks, and that the petitioners may be required to obtain easements from property owners in areas where space for the cabinets are not available. Recommends that the cabinets be spaced at least 500 feet apart. \par \par Response: The proposed facilities as \'5B*110\'5D described in 4. Schuller's Comment below are part of a utility's intended project to upgrade its existing infrastructure and is not related to the proposed projects as discussed in the Negative Declaration (projects to extend facilities to new territories for service). However it is anticipated that some petitioners may require smaller, less obtrusive service cabinets to provide competing service in new territories. In many cases, the boxes can be placed within existing buildings or underground. In the event that the boxes are placed above ground, the petitioners will be required to consult with local agencies regarding aesthetic concerns about their construction. Finding #9 and Mitigation Measure I will be modified to clarify this point. The Negative Declaration will not prescribe a specific method for the petitioners and the local agencies to follow in addressing this issue since each locality has the means to determine the approach most appropriate for it.\par \par \par 4. Ray Schuller, Building Department Director, City of Newport Beach, dated 11/20/95 \par \par Comment: The service cabinets proposed by the petitioners carry equipment that have the potential for explosion if impacted \'5B*111\'5D by a vehicle. The cabinets contain 110 volts, backup batteries and gas generators. \par \par Response: The above grade service cabinets as described in the comment are part of a petitioner's construction project within its existing service territory. These service cabinets are designed for providing broadband capability to existing telecommunication infrastructure, and are not directly related to the proposed projects addressed in the Negative Declaration. Pursuant to Public Utilities Code Section 1001, the Commission does not review modifications made by utilities to their existing facilities in territories they already serve. The other petitioners either do not plan to use the type of service cabinets as described in the comment, or will install them in existing buildings or underground. This clarification has been added to the Project Description in the Negative Declaration.\par \par \par 5. Keri Parrish, Assistant Planner, City of Wasco, dated 11/1/95 \par \par Comment #1: The Negative Declaration does not address the potential increase of exposure of people to health hazards from the construction of new poles and overhead lines. In particular, will there be an increase of radiation \'5B*112\'5D or electric-magnetic fields (EMFs) from the poles or overhead lines? \par \par Response: To date, we are not aware of any evidence that suggests that the EMF levels, if any, from fiber optic cables or overhead communication lines present a health hazard to the public. The Commission established an EMF research and education program in 1993 (D.93-11-013) that is currently being managed by the California Department of Health Services (DHS). Commission staff consult with the DHS regularly on the most up-to-date information concerning EMF. \par \par The Commission's responsibility for ensuring safety of utility overhead poles or lines is carried out by the Commission's Safety and Enforcement Division (SED). Under the regulations established under the Commission's General Order 95, the SED makes periodic inspections of overhead lines to ensure that they meet existing Commission standards for safety. Finding #7 and Mitigation Measure G have been modified to state that the SED will incorporate inspections of any new lines into its procedures. \par \par Comment #2: Will the Commission permit new facilities to be built in residential neighborhoods, near schools, parks, etc.? \par \par Response: The petitioners \'5B*113\'5D may place new facilities in a variety of areas as discussed in Sections E and F of the Initial Study. Mitigation Measure A in the Negative Declaration will be triggered if a petitioner proposes to construct a project which goes beyond the existing utility right-of-way. This measure will require a complete environmental review before it is approved.\par \par \par 6. Todd Galarneau, Associate Planner, City of Santee, dated 11/2/95 \par \par Comment #1: The Negative Declaration does not specifically require the petitioners to comply with local agency requirements or ordinances. Recommends that the document should specifically state that the petitioners comply with local standards and that they address all substantive concerns prior to commencement. \par \par Response: For the purpose of clarity, the Negative Declaration has been revised to state that local standards must be adhered to and all applicable local ministerial permits must be obtained. However, as stated in response to earlier comments, the ministerial permit process cannot be used by local agencies to interfere with or prevent a state-wide interest in local telephone competition. \par \par Comment #2: The Negative Declaration does not \'5B*114\'5D cover the 26 resale petitioners by declaring them exempt from CEQA review. These petitioners are not necessarily exempt from CEQA if the facilities-based carrier is required to modify or expand its facilities to provide service for the resale petitioner. \par \par Response: We do not agree with the comment. The resale petitioners are exempt from CEQA because of the fact that they have no facilities to construct. If a facilities-based carrier chooses to modify or expand its facilities as described in the comment, then that carrier will be subject to the appropriate review and permit process as outlined in the Negative Declaration. \par \par Comment #3: The Negative Declaration is missing the words, \'22control plans shall be developed and implemented for areas identified as particularly\'22 at the bottom of page 3. \par \par Response: The wording as described has been inserted. \par \par Comment #4: The Negative Declaration's Finding #6, should be modified so that the language specifically requires the petitioners to work with the local agencies in developing traffic control plans, obtaining all required permits, and complying with all applicable local ordinances. \par \par Response: Mitigation Measure \'5B*115\'5D F has been modified to specify that the petitioners must comply with all local standards and ministerial permits regarding traffic and circulation concerns. Finding #6 has also been modified to reflect that requirement. \par \par Comment #5: Mitigation Measure H should be modified so that the petitioners are required to comply with all local noise ordinances in addition to conducting public outreach. \par \par Response: Mitigation Measure H has been modified to require petitioners to comply with all applicable local noise standards.\par \par \par 7. Mo Khatami, Senior Planner, City of Atwater, dated 11/7/95 \par \par Comment: The City of Atwater will require each petitioner to go through the Conditional Use Permit process for any exterior modifications to existing facilities or new facilities. \par \par Response: In locating its projects, the petitioners will need to cooperate with, and obtain the input of, local authorities regarding land use matters and obtain any ministerial local permits or approvals required for construction and operation of the projects to ensure safety and compliance with local standards. The language of the Mitigation Measures has been revised to clarify this. The fact \'5B*116\'5D that petitioners must obtain local ministerial permits does not indicate that the Commission has relinquished its authority. General land use and zoning authority does not permit local agencies to thwart any legitimate construction project necessary to provide utility service. The Mitigation Monitoring Plan (Appendix D) designates the Commission as the final arbiter for disputes between local agencies and the petitioner(s).\par \par \par 8. Kerry McCants, Development Services Manager, County of Fresno, date 11/9/95 \par \par Comment: The project is not site specific and land use permits may be required for some work. \par \par Response: The Negative Declaration acknowledges that the specific projects which could result from the Commission's action are necessarily speculative, but their descriptions contain enough information for the purposes of the document. In locating its projects, the petitioners will need to cooperate with, and obtain the input of, local authorities regarding land use matters and obtain any ministerial local permits or approvals required for construction and operation of the projects to ensure safety and compliance with local standards. The language of the Mitigation Measures \'5B*117\'5D has been revised to clarify this. The fact that petitioners must obtain local ministerial permits does not indicate that the Commission has relinquished its authority. General land use and zoning authority does not permit local agencies to thwart any legitimate construction project necessary to provide utility service. The Mitigation Monitoring Plan (Appendix D) designates the Commission as the final arbiter for disputes between local agencies and the petitioner(s).\par \par \par 9. Linda B. Guillis, Community and Economic Development Director, City of Moreno Valley, dated 11/13/95 \par \par Comment: Mitigation Measures 4, 6 and 9 should be modified by replacing the \'22should\'22 with the word \'22shall\'22 to ensure that the petitioners are required to comply with local standards, ordinances and coordination efforts. \par \par Response: The Mitigation Measures already contained the word \'22shall\'22, and have been modified further in response to the comments described earlier. All findings listed in the Negative Declaration have also been modified by replacing the word \'22should\'22 with \'22shall\'22.\par \par \par 10. Richard L. Schneider, Senior Planner, City of Vallejo, date 11/14/95 \par \par Comment #1: The analysis \'5B*118\'5D in the Negative Declaration is too general and should be revised by identifying each applicant, the local government jurisdiction they will be operating in, whether they will be using facilities-based services or resale services, and a brief description of the anticipated modifications to existing facilities or construction of new facilities. \par \par Response: Appendix B, attached to the Initial Study, identifies each applicant. All of the applicants listed on Appendix B are facilities-based carriers (most of them will be resale-based as well). The companies which are strictly resale-based are exempt from CEQA because they have no facilities to construct, and are therefore not addressed in the Negative Declaration. For purposes of clarity, the text in the Project Description of the Negative Declaration has been modified to identify Appendix B more easily. \par \par A brief description of the anticipated modifications to existing facilities and/or the construction of new facilities is provided in both the Project Description sections of the Initial Study and the Negative Declaration. \par \par At this time, the facilities-based carriers are requesting state-wide authority to offer service anywhere \'5B*119\'5D within the territories presently served by Pacific Bell and GTE California. Mitigation Measure B has been modified by requiring all petitioners to file quarterly reports with the local agencies. These reports will summarize all anticipated projects for the upcoming quarter. Local governments will know at that time which companies are planning to compete in their particular jurisdiction, and will have the information to begin appropriate coordination. \par \par Comment # 2: The Mitigation Measures should be modified by replacing the word \'22should\'22, with the word \'22shall\'22 so that the petitioners are required to comply with local standards/measures. \par \par Response: As noted in earlier comments, the Mitigation Measures have been modified so that it is clear that compliance with local standards/measures are a requirement.\par \par \par 11. David J. Stagnaro, Environmental Planner, San Joaquin Valley Unified Air Pollution Control District, dated 11/15/95. \par %Comment: The Negative Declaration is appropriate from an air quality perspective. The air quality impacts that will be associated with the construction phase of the projects will be subject to the District's regulations and air quality \'5B*120\'5D standards. Besides regulations for construction, additional rules regarding handling, shipping, paving and storing may also apply. (The District provides the specific regulations.) \par \par Response: Finding #5 and Mitigation Measure E addresses air quality and requires the petitioners to implement appropriate dust control measures as recommended by air quality management districts. The Finding and Mitigation Measure have been modified to include compliance with any other air quality standards as established by the affected air quality management districts.\par \par \par 12. Rita Westfield, Assistant Director Community Development, City of Tustin, dated 11/15/95. \par \par Comment: The Negative Declaration addresses the City's concerns about compliance with local construction standards, permit issuance and traffic control. No other comments offered. \par \par Response: Comment noted. The Negative Declaration have been modified in response to other comments about local standards and permits.\par \par \par 13. Terry L. Farmer, resident, Tehama County, dated 11/16/95\par \par Comment: The address provided in the Public Notice for the Planning Department of the County of Tehama is incorrect. The correct \'5B*121\'5D address is provided. \par \par Response: The mailing list for the final Negative Declaration will be revised with the correct address for the Tehama County Planning Department.\par \par \par 14,John Ernest, Senior Planner, City of Irvine, dated, 11/16/95. \par \par Comment #1: There is no limit on the number of petitioners that will be allowed on a particular street to construct facilities. Multiple trenching will shorten street life and impact traffic and circulation as well maintenance of public roads. In fact, some telecommunication companies have already applied for permits to install fiber optic cables in streets. \par \par Response: See response to 3. Hoffstadt (Comment #1). \par \par Comment #2: Finding #2 of the Negative Declaration indicates that the proposed projects will not have significant effects on public services. The projects will significant effects on the City's ability to provide traffic service, as described in Comment #1. \par \par Response: Finding #2 will be modified to exclude the words, \'22Public Services\'22 since the impacts on the maintenance of public roads may be potentially significant. The Initial Study has also been modified to address impacts on public roads (Question \'5B*122\'5D XI d). Mitigation Measure F has been modified as discussed in the response to 3. Hoffstadt (Comment #2). \par \par Comment #3: Finding #3 of the Negative Declaration indicates that the petitioners should comply with all local design, construction and safety standards. The City would like the Negative Declaration to state that the petitioners are required to adhere to all reasonable local policies designed to protect streets and public safety. \par \par Reponse: Finding #3 addresses impacts and mitigation for Geological Resources. Finding #6 and Mitigation Measure F, which address streets and public safety, have been modified to clarify that the petitioners must comply with local design, construction and safety standards. The petitioners are also required to cooperate with local planning agencies to reduce any cumulative impacts to the greatest extent possible. The Commission will be the final arbiter for disputes that cannot be resolved at the local level (see the Mitigation Monitoring Plan for details in Appendix D.) \par \par Comment #4: Finding #6 of the Negative Declaration indicates that the petitioners should coordinate their efforts so that the number of encroachments to the utility \'5B*123\'5D rights-of-way are minimized. The experience of the City has been that utility companies are unwilling to coordinate or cooperate so that encroachments are minimized. Recommends that the Commission become more involved in the process by enforcing coordination through strict penalties or other means. \par \par Response: Coordination among the petitioners and the local agencies will be more specifically addressed in the Mitigation Monitoring Plan (Appendix D). In brief, the Commission believes coordination is best handled at the local level but the Commission will be the final arbiter for all unresolved issues of compliance with the Negative Declaration. The local agencies have the ministerial authority to use reasonable means to organize and coordinate the projects so that public safety and services are protected, but cannot use that authority to prevent or limit utility service. \par \par Comment #5: The Negative Declaration's discussion of traffic, rights-of-way and infrastructure should indicate continuance and even strengthening of local authority whenever they are referenced. \par \par Response: As discussed in response to other comments, the language in the Mitigation Measures will be \'5B*124\'5D modified to clarify the authority of local agencies. However it should also be noted that Commission's intent in clarifying local authority is not meant to relinquish Commission jurisdiction over utility facilities. Moreover, it must also be noted that local agencies cannot use its ministerial permit process to prevent or interfere with a state-wide interest in utility service.\par \par \par 15. Ann Grant-McLaughlin, Associate Planner, City of Buenaventura, dated 11/17/95. \par \par Comment # 1: The scale of the map provided in the Negative Declaration is too large for a complete evaluation to be done. More locational detail is necessary.\par \par Response: In July 1995, the Commission opened the territories presently served by Pacific Bell and GTE California to competition (D.95-07-054). The purpose of the Negative Declaration is to discuss the petitioners' applications for state-wide authorization to compete. Mitigation Measure B has been modified by requiring all petitioners to file quarterly reports with the local agencies. These reports will summarize all anticipated projects for the upcoming quarter. Local governments will know at that time which companies are planning to compete in \'5B*125\'5D their particular jurisdiction, and will have the information to begin appropriate coordination. \par \par Comment #2: The Negative Declaration states that in the event that more than one petitioner seeks modifications or additions to a particular locality, the petitioners shall coordinate their plans and consult with affected local agencies. Recommends that the petitioners consult with local agencies for all proposed construction activities regardless of the number of petitioners. Construction even in the utility rights-of-way may be subject to local permits and consequent environmental review. \par \par Response: The reason for the language regarding coordination and consultation with local agencies is to ensure that multiple construction efforts in a single locality are done efficiently and with minimal disturbance to the affected area. However, the language was not meant to excuse a single petitioner from local coordination and consultation. For every construction project, the local ministerial permitting process must be followed by the petitioner regardless of the number of petitioners. Mitigation Measure B has been revised to clarify the points made here.\par \par \par 16. Natalie Meeks \'5B*126\'5D , Development Services Manager, City of Anaheim, dated 11/18/95. \par \par Comment #1: The mitigation measures should be rewritten to clearly require the petitioners to consult and coordinate to the satisfaction of the local agency. The mitigation measures must be written to ensure that construction activities and facilities are adequately mitigated. Moreover, the local agencies should have opportunity to review the Mitigation Monitoring Plan prior to adoption by the Commission. \par \par Response: As discussed in response to other comments, the Mitigation Measures have been modified to clearly require petitioner compliance with local standards through the local ministerial permitting process. The Mitigation Monitoring Plan (Appendix D in the Final Negative Declaration) contains details on how the measures will be implemented and monitored, including suggestions made in comments on the proposed Negative Declaration. \par \par Comment #2: A method should be established by which the local agency reviews and approves the location and number of facilities. For aboveground facilities, traffic, safety, and aesthetic impacts should be mitigated. Collocation, alternate locations and screening should \'5B*127\'5D also be considered. \par \par Response: Comment #2 requests that the Negative Declaration prescribe a set procedure for the local agencies to follow for review and approval of the location and number of facilities. Each local agency will have the freedom to follow its own method of ministerial review and approval for the facilities. However, as noted in the response to 7. Khatami, the Commission is not relinquishing its jurisdiction to the local agencies, and local agencies may not use land use and zoning authority to prevent utilities from constructing legitimate projects to provide service. \par \par Each jurisdiction will have the authority to enforce its own safety and traffic standards through its ministerial permit process so that any related impacts are mitigated. \par \par Comment #3: The Negative Declaration fails to address the important issues such as equipment necessary to operate the facilities, their impact on safety, pavement, and aesthetics. \par \par Response: The Project Description of the Negative Declaration contains information regarding the use of switches that are necessary to operate the facilities. Besides the necessary switches, some of the petitioners may need to install \'5B*128\'5D small service boxes (not the same as described in 4. Schuller) to effectively distribute service. The Project ' Description of the Negative Declaration has been modified to discuss the service boxes. Impacts on safety, pavement and aesthetics are discussed in responses below (Comments 4,5 and 7). \par \par Comment #4: The Mitigation Measures are not strong enough to prevent repeated excavation in public streets. Local agencies should have authority to limit excavations and regulate facility placement. Moreover the loss of street life as a result of the excavations should be compensated from the petitioners. \par \par Response: Mitigation Measure F has been modified to clarify that local ministerial permitting ensures that the installation is done safely and with minimal impact on traffic. Compensation for loss of street life can be effectively implemented through the local permitting process, rather than specifying it in the Negative Declaration. Also, see Response to 3. Hoffstadt (Comments #1 & 2). \par \par Comment #5: The Initial Study indicates that there is no hazardous impacts associated with the facilities. However, the proposed operating equipment (same as described in 4. \'5B*129\'5D Schuller) may be potentially hazardous to the public. Recommends that Question IX should be marked as \'22potentially significant unless mitigation incorporated\'22. \par \par Response: See response to 4. Schuller. \par \par Comment #6: The location, number, type and design of the proposed facilities are not identified in the Negative Declaration. Excessive installation could leave inadequate space for other public services, and space for telecommunication facilities should be limited by local agencies. Questions XI (d) and (e) should be marked as \'22potentially significant unless mitigation incorporated\'22 in the Initial Study. \par \par Response: See response to 15. Grant-McLaughlin (Comment #1). The amount and size of facility installation will vary from city to city, and from street to street. As stated in the Project Description of the Negative Declaration, it is anticipated that existing utility conduits can accomodate the installation of fiber optic cable. In the event that a petitioner will be forced to go beyond the existing utility right-of-way to install its own facilities, Mitigation Measure A is triggered and a full environmental review of the proposed project would be completed. \'5B*130\'5D Question XI (d) of the Initial Study has been modified to indicate the need for mitigation of potential impacts on public road maintenance. \par \par Comment #7: The potential aesthetic impacts of the proposed facilities described in Comment #5 above are not mitigated in the Negative Declaration. Encroachments into sidewalks and parkway, diminished aesthetic appeal of surrounding areas, and pedestrian/vehicular conflict are not addressed. Moreover, cost and time for upkeep and maintenance of the facilities are additional concerns. Recommends that the petitioners submit a master plan to local agencies for review and approval so that cumulative effects of these facilities can be mitigated. Finally the City has a number of aesthetic regulations that the petitioners need to comply with. \par \par Response: The proposed facilities as described in Comment #5 are part of Pacific Bell's project to upgrade its existing infrastructure and is not related to the proposed projects as discussed in the Negative Declaration (projects to extend facilities to new territories for service). However it is anticipated that some petitioners may require smaller, less obtrusive service cabinets to provide competing \'5B*131\'5D service in new territories. The Project Description in the Negative Declaration has been modified to discuss the use of service boxes in greater detail For these facilities, the petitioners will be required to consult with local agencies regarding aesthetic concerns about their construction. Finding #9 and Mitigation Measure I has been modified to clarify this point. The Negative Declaration will not prescribe a specific method for the petitioners and the local agencies to follow in addressing this issue since each locality has the means to determine the approach most appropriate for it.\par \par \par 17 Lee Hitchcock, Building and Safety Manager, City of Buena Park, dated 11/20/95. \par \par Comment #1: Pacific Bell has submitted an application requesting a permit to install node cabinets with the City's limits. The node cabinets combine 110 volt primary power, battery backup and low-pressure gas generators for emergency power in an above-grade cabinet. There is insufficient data about vehicle impact and explosion resistance safeguards. \par \par Response: See response to 4. Schuller. \par \par Comment #2: The size and number of the node cabinets create visual blight and possible visual \'5B*132\'5D obstructions in the right-of-way. \par \par Response: See response to 16. Meeks (Comment #7). \'5D\par \par Comment #3: The installation of the service cabinets may necessitate negotiation for private property easements. Predicts that most citizens will object to the installation of the cabinets on their property. \par \par Response: As stated in the modified Project Description of the Negative Declaration, the petitioners who need to install the cabinets are committed to building installation or underground vaults. Based on other comments, private property easements are preferable to installation on sidewalks. The petitioners will have to obtain rights to use whatever property is needed, if not already in their possession. \par \par Comment #4: Same as 3. Hoffstadt (Comment #2). Recommends common trenching and/or systems to mitigate the problem rather than deterioration fee or limit on the number of competitors. \par \par Response: See response to 3. Hoffstadt's (Comment #2). \par \par Comment #5: The City could experience liability for the service cabinets located in sidewalks and parkway areas. \par \par Response: As noted in responses to earlier comments, the local agencies may enforce its \'5B*133\'5D safety standards on the petitioners through ministerial permits. Safety concerns shall be resolved to the satisfaction of the local agencies. Local agencies are liable for those facilities it permits.\par \par \par 18. Richard Jantz, Deputy Executive Officer (ERC), Stanislaus County, dated 11/20/95. \par\par No comments on the Negative Declaration. \par \par 19. Thomas Berg, Director, Ventura County, dated 11/21/95. \par \par Comment #1: The County's Transportation Department concurs with the Initial Study checklist. Its review of the project is limited to impacts on the County's roadway network and transportation system. The traffic generated by the projects will not significantly impact County roads in unincorporated areas. \par \par Response: Comment noted. \par \par Comment #2: Construction in the road right-of-way will require an encroachment permit from the County Transportation Department \par \par Response: Comment noted. All work in public road ways will require ministerial permits such as encroachment permits from the local agencies, and the Mitigation Measures have been modified to clarify this point.\par \par \par 20. Daniel J.P. Weaver, Project Coordinator, San Francisco Beautiful, dated 11/21/95. \'5B*134\'5D \par \par Comment: The service boxes will encroach into sidewalks and parkways, diminish aesthetic appeal of surrounding areas, and impact pedestrian/vehicular movement along city streets. Moreover, boxes are often the target of graffiti vandalism. Recommends all service cabinets be placed either underground, or on leased private property, fenced and landscaped to avoid visual blight. \par \par Response: See response to 16. Meeks (Comment #7)\par \par \par 21. Donald Stroh, Dolores Heights Improvement Club and the Coalition of San Francisco Neighborhoods, dated 11/28/95. \par \par Comment: Opposes the Negative Declaration. The widespread proliferation of utility \'22street furniture\'22 or service boxes and cabinets results in adverse visually effects and presents hazards for the blind and disabled. Recommends that all utility above-ground boxes be removed from public property and placed in underground vaults or on private property. Also requests public posting by the local public works agency for proposed above-ground boxes, and public hearing procedures, through an independent committee, that are identical to procedures used by the local parking and traffic agency. \par \par Response: The construction \'5B*135\'5D of all utility facilities will require compliance with all local ministerial standards and that the petitioners are required to cooperate with local agencies about aesthetic impacts. The Mitigation Measures have been modified to clarify the local agencies' authority. However, the Negative Declaration will not specify standards or procedures for aesthetic or safety concerns. The recommendations made in the comment are directed to the local permitting agencies.\par \par \par 22. John E. Cribbs, Director of Public Works, City and County of San Francisco, dated 12/6/95. \par \par Comment: The Negative Declaration does not address the projects' impact to the City's street pavement due to the increase in excavations by the petitioners. Enclosed a study done by San Francisco State University which found that the useful life of street pavement declines from multiple utility \'22cuts\'22 or excavation. \par \par Response: See response to 3. Hoffstadt Comment #2.\par Appendix D \par\par Mitigation Monitoring Plan \par\par Competitive Local Carriers (CLCs) \par\par Projects for Local Exchange Telecommunication Service Throughout California \par \par Introduction: \par \par The purpose of this section is to describe the \'5B*136\'5D mitigation monitoring process for the CLCs' proposed projects and to describe the roles and responsibilities of government agencies in implementing and enforcing the selected mitigation measures. \par \par California Public Utilities Commission (Commission): \par \par The Public Utilities Code confers authority upon the Commission to regulate the terms of service and safety, practices and equipment of utilities subject to its jurisdiction. It is the standard practice of the Commission to require that mitigation measures stipulated as conditions of approval be implemented properly, monitored, and reported on. Section 21081.6 of the Public Utilities Code requires a public agency to adopt a reporting and monitoring program when it approves a project that is subject to the adoption of a mitigated negative declaration. \par \par The purpose of a reporting and monitoring program is to ensure that measures adopted to mitigate or avoid significant environmental impacts are implemented. The Commission views the reporting and monitoring program as a working guide to facilitate not only the implementation of mitigation measures by the project proponents, but also the monitoring, compliance and reporting activities \'5B*137\'5D of the Commission and any monitors it may designate. \par \par The Commission will address its responsibility under Public Resources Code Section 21081.6 when it takes action on the CLCs' petitions to provide local exchange telephone service. If the Commission adopts the Negative Declaration and approves the petitions, it will also adopt this Mitigation Monitoring Plan as an attachment to the Negative Declaration. \par \par Project Description: \par \par The Commission has authorized various companies to provide local exchange telephone service in competition with Pacific Bell and GTE California. 66 petitioners notified the Commission of their intent to compete in the territories presently served by Pacific Bell and GTE California, 40 of which will be facilities-based services meaning that they propose to use their own facilities to provide service. \par \par Since many of the facilities-based petitioners are initially targeting local telephone service for areas where their telecommunications infrastructure is already established, very little construction is envisioned. However, there will be occasion where the petitioners will need to install fiber optic cable within existing utility underground conduits \'5B*138\'5D or attach cables to overhead lines. There is the possibility that existing utility conduits or poles will be unable to accomodate all the planned facilities, thereby forcing some petitioners to build or extend additional conduits into other rights-of-way, or into undisturbed areas. For more details on the project description please see Project Description in the Negative Declaration. \par \par Roles and Responsibilities: \par \par As the lead agency under the California Environmental Quality Act (CEQA), the Commission is required to monitor this project to ensure that the required mitigation measures are implemented. The Commission will be responsible for ensuring full compliance with the provisions of this monitoring program and has primary responsibility for implementation of the monitoring program. The purpose of this monitoring program is to document that the mitigation measures required by the Commission are implemented and that mitigated environmental impacts are reduced to insignificance or avoided outright. \par \par Because of the geographic extent of the proposed projects, the Commission may delegate duties and responsibilities for monitoring to other environmental monitors or consultants \'5B*139\'5D as deemed necessary. For specific enforcement responsibilities of each mitigation measure, please refer to the Mitigation Monitoring Table attached to this plan. \par \par The Commission has the ultimate authority to halt any construction, operation, or maintenance activity associated with the CLC's local telephone service projects if the activity is determined to be a deviation from the approved project or adopted mitigation measures. For details refer to the mitigation monitoring plan discussed below. \par \par Mitigation Monitoring Table: \par \par The table attached to this plan presents a compilation of the Mitigation Measures in the Negative Declaration. The purpose of the table is to provide the monitoring agencies with a single comprehensive list of mitigation measures, effectiveness criteria, the enforcing agencies, and timing. \par \par Dispute Resolution Process: \par \par The Mitigation Monitoring Plan is executed to reduce or eliminate many potential disputes. However, in the event that a dispute occurs, the following procedure will be observed: \par \par Step 1: Disputes and complaints (including those of the public) shall be directed first to the Commission's designated Project Manager for resolution. \'5B*140\'5D The Project Manager will attempt to resolve the dispute. \par \par Step 2: Should this informal process fail, the Commission Project Manager may initiate enforcement or compliance action to address deviation from the proposed project or adopted Mitigation Monitoring Program. \par \par Step. 3: If a dispute or complaint regarding the implementation or evaluation of the Mitigation Monitoring Program or the Mitigation Measures cannot be resolved informally or through enforcement or compliance action by the Commission, any affected participant in the dispute or complaint may file a written \'22notice of dispute\'22 with the Commission's Executive Director. This notice shall be filed in order to resolve the dispute in a timely manner, with copies concurrently served on other affected participants. Within 10 days of receipt, the Executive Director or designee(s) shall meet or confer with the filer and other affected participants for purposes of resolving the dispute. The Executive Director shall issue an Executive Resolution describing his decision, and serve it on the filer and the other participants. \par \par Parties may also seek review by the Commission through existing procedures specified in the Commission's \'5B*141\'5D Rules of Practice and Procedure, although a good faith effort should first be made to use the foregoing procedure. \par \par Mitigation Monitoring Program: \par \par 1. As discussed in Mitigation Measure B, the petitioners shall file a quarterly report which summarizes those projects which they intend to construct for the coming quarter. The report will contain a description of the project and its location, and a summary of the petitioner's compliance with the Mitigation Measures described in the Negative Declaration. The purpose of the report is to inform the local agencies of future projects so that coordination of projects among petitioners in the same locality can be done. The quarterly report shall be filed with the appropriate planning agency of the locality where the project(s) will occur. The report shall also be filed as an informational advice letter with the Telecommunications Branch of the Commission Advisory and Compliance Division (CACD) so that petitioner compliance with the Mitigation Measures are monitored. \par \par In order to ensure that the Mitigation Measures are fulfilled, the Commission will make periodic reviews of the projects listed in quarterly reports. The projects will \'5B*142\'5D be generally chosen at random, although the Commission will review any project at its discretion. The reviews will follow-up with the local jurisdictions so that all applicable Mitigation Measures are addressed. \par \par If any project is expected to go beyond the existing utility rights-of-way, that project will require a separate petition to modify the CPCN. The petitioner shall file the petition with the Commission and shall also inform the affected local agencies in writing. The local agencies are also responsible for informing the Commission of any project listed in the quarterly reports which may potentially go out of the existing utility right-of-way. As discussed in Mitigation Measure A, a complete environmental review of the project will be triggered under CEQA, with the Commission as the lead agency. \par \par 2. In the event that the petitioner and the local agency do not agree if a project results in work outside of the utility rights-of-way, the Commission will review the project and make the final determination. See Dispute Resolution Process discussed above. \par \par 3. For projects that are in the utility rights-of-way, the petitioners shall abide by all applicable local standards \'5B*143\'5D as discussed in the Mitigation Measures. If a petitioner fails to comply with local regulatory standards by either neglecting to obtain the necessary permits, or by neglecting to follow the conditions of the permits, the local agency shall notify the Commission and Dispute Resolution Process begins. \par \par 4. The Commission is the final arbiter for all unresolvable disputes between the local agencies and the petitioners. If the Commission finds that the petitioner has not complied with the Mitigation Measures in the Negative Declaration, it may halt and terminate the project. \par\par Mitigation Monitoring Table\f1 \par________________________________________________________________________________\par\par - Impact Mitigation Measure\par ALL FACTORS\par Extension or work A. Petitioner must file a Petition\par beyond or outside of to modify its CPCN. An appropriate\par of the existing environmental study of the\par utility right-of-way project is done.\par into undisturbed\par areas.\par CUMULATIVE EFFECTS\par Cumulative im- B. Coordination efforts among\par pacts due to the petitioners and the affect-\par multiple disturb- ed local agencies so that\par ances to a par- construction projects in the\par ticular area. same location can be com-\par bined or simultaneous.\par GEOLOGICAL RESOURCES\par Potential erosion C. Petitioners shall comply\par due to excavation, with all local design, construc-\par grading and fill. tion and safety standards\par through permit process. Erosion\par control plans for areas identified\par as susceptible to erosion.\par WATER RESOURCES\par Potential impact on water D. Petitioners shall consult with\par resources, underground all appropriate water resource\par or surface due to exca- agencies for projects in close\par vation or grading work. proximity to water resources\par Appropriate mitigation plans shall\par be developed and compliance to\par all local and state water regu-\par lations is required.\par AIR QUALITY\par Excessive dust E. Appropriate dust control\par and other air measures by petitioner.\par emissions due to Compliance with all applicable\par construction. air quality standards as established\par by air quality management districts.\par TRANSPORTATION &\par CIRCULATION\par Traffic congestion, insuf- F. Coordination by petitioners\par ficient parking, and through local agencies to mi-\par hazards for pedestrians. nimize right-of-way encroachments.\par All local safety and construc-\par tion standards shall be met\par through the local permit process.\par Advance notice to surrounding\par area of construction date and time.\par HAZARDS\par Construction in right-of-way G. Measure F above shall be\par may interfere with emergency augmented by informing and\par or evacuation plans. consulting with emergency\par and evacuation agencies if the\par proposed project impacts a route\par used for emergencies or evacua-\par tions.\par Potential increase in overhead G. Petitioner shall obtain all neces-\par poles and communication lines. sary building permits for the poles.\par CPUC's Safety & Enforcement\par Division will inspect the overhead\par lines.\par NOISE\par Noise standards for the area are H. All applicable noise standards\par exceeded due to construction. shall be complied with by the peti-\par tioners.\par Petitioners shall notice the\par surrounding area of construc-\par tions dates and times.\par AESTHETICS\par Service boxes or cabinets may I. All applicable aesthetic\par be a visual blight. standards will be met by\par petitioners for above-ground\par facilities, especially service\par cabinets.\par CULTURAL RESOURCES\par Cultural resources are encount- J. All earthmoving that would\par ered during construction; resour- impact the resources shall\par ces are damaged or moved. cease or be altered until the\par petitioner retains the service\par of an archaeologist who will\par propose mitigation.\par________________________________________________________________________________\par\par -\f0 \'5B*144\'5D \f1 \par________________________________________________________________________________\par\par - Monitoring/Reporting\par Impact Action\par ALL FACTORS\par Extension or work Quarterly reports.\par beyond or outside of\par of the existing\par utility right-of-way\par into undisturbed\par areas.\par CUMULATIVE EFFECTS\par Cumulative im- Quarterly reports.\par pacts due to\par multiple disturb-\par ances to a par-\par ticular area.\par GEOLOGICAL RESOURCES\par Potential erosion Quarterly reports.\par due to excavation,\par grading and fill.\par WATER RESOURCES\par Potential impact on water Quarterly reports.\par resources, underground\par or surface due to exca-\par vation or grading work.\par AIR QUALITY\par Excessive dust Quarterly reports.\par and other air\par emissions due to\par construction.\par TRANSPORTATION & CIRCULATION\par Traffic congestion, insuf- Quarterly reports.\par ficient parking, and\par hazards for pedestrians.\par HAZARDS\par Construction in right-of-way Quarterly reports.\par may interfere with emergency\par or evacuation plans.\par Potential increase in overhead Quarterly reports.\par poles and communciation lines.\par NOISE\par Noise standards for the area are Quarterly reports.\par exceeded due to construction.\par AESTHETICS\par Service boxes or cabinets may Quarterly reports.\par be a visual blight.\par CULTURAL RESOURCES\par Cultural resources are encount- Quarterly reports.\par ered during construction; resour-\par ces are damaged or moved.\par________________________________________________________________________________\par\par -\f0 \'5B*145\'5D \f1 \par________________________________________________________________________________\par\par - Effectiveness\par Impact Criteria\par ALL FACTORS\par Extension or work Any work outside of\par beyond or outside of existing utility right-of-\par of the existing way is assessed\par utility right-of-way through an environ-\par into undisturbed mental study.\par areas.\par CUMULATIVE EFFECTS\par Cumulative im- The number and duration\par pacts due to of disturbances to a\par multiple disturb- particular area are\par ances to a par- minimized.\par ticular area.\par GEOLOGICAL RESOURCES\par Potential erosion Erosion at the project\par due to excavation, areas is contained.\par grading and fill.\par WATER RESOURCES\par Potential impact on water Impacts to water qua-\par resources, underground lity, drainage, flow, di-\par or surface due to exca- rection and quantity\par vation or grading work. are averted.\par AIR QUALITY\par Excessive dust Dust and other emis-\par and other air sions are contained.\par emissions due to Air quality standards\par construction. for area are met.\par TRANSPORTATION & CIRCULATION\par Traffic congestion, insuf- Traffic congestion is\par ficient parking, and minimized.\par hazards for pedestrians.\par HAZARDS\par Construction in right-of-way Construction projects\par may interfere with emergency do not interfere with\par or evacuation plans. emergency or evacu-\par ation routes.\par Potential increase in overhead Poles are built in com-\par poles and communciation lines. pliance with local safe-\par ty standards. Lines\par are inspected and\par maintained as safe.\par NOISE\par Noise standards for the area are Noise from construc-\par exceeded due to construction. tion is kept to levels\par that do not exceed\par local standards.\par AESTHETICS\par Service boxes or cabinets may Cabinets are placed\par be a visual blight. within existing build-\par ings, underground, or\par in areas that are land-\par scaped so that aesthe-\par tic impacts are minimi-\par zed.\par CULTURAL RESOURCES\par Cultural resources are encount- Cultural resources that\par ered during construction; resour- are encountered are\par ces are damaged or moved. not destroyed or ad-\par versely impacted.\par________________________________________________________________________________\par\par -\f0 \'5B*146\'5D \f1 \par________________________________________________________________________________\par\par - Impact Responsible\par Agency\par ALL FACTORS\par Extension or work CPUC\par beyond or outside of Local agencies.\par of the existing\par utility right-of-way\par into undisturbed\par areas.\par CUMULATIVE EFFECTS\par Cumulative im- CPUC\par pacts due to Local agencies.\par multiple disturb-\par ances to a par-\par ticular area.\par GEOLOGICAL RESOURCES\par Potential erosion CPUC\par due to excavation, Local agencies.\par grading and fill.\par WATER RESOURCES\par Potential impact on water CPUC\par resources, underground Local agencies.\par or surface due to exca- Applicable state\par vation or grading work. water resource\par agencies.\par AIR QUALITY\par Excessive dust CPUC\par and other air Air quality\par emissions due to management\par construction. districts.\par TRANSPORTATION & CIRCULATION\par Traffic congestion, insuf- CPUC\par ficient parking, and Local agencies.\par hazards for pedestrians. Caltrans\par HAZARDS\par Construction in right-of-way CPUC\par may interfere with emergency Local agencies.\par or evacuation plans.\par Potential increase in overhead CPUC\par poles and communciation lines. Local agencies.\par NOISE\par Noise standards for the area are CPUC\par exceeded due to construction. Local agencies.\par AESTHETICS\par Service boxes or cabinets may CPUC\par be a visual blight. Local agencies.\par CULTURAL RESOURCES\par Cultural resources are encount- CPUC\par ered during construction; resour- Local, state\par ces are damaged or moved. and/or federal\par agencies.\par________________________________________________________________________________\par\par -\f0 \'5B*147\'5D \f1 \par________________________________________________________________________________\par\par - Impact Timing\par ALL FACTORS\par Extension or work Before construction\par beyond or outside of\par of the existing\par utility right-of-way\par into undisturbed\par areas.\par CUMULATIVE EFFECTS\par Cumulative im- Before construction\par pacts due to\par multiple disturb-\par ances to a par-\par ticular area.\par GEOLOGICAL RESOURCES\par Potential erosion Before and during\par due to excavation, construction.\par grading and fill.\par WATER RESOURCES\par Potential impact on water Before and during\par resources, underground construction.\par or surface due to exca-\par vation or grading work.\par AIR QUALITY\par Excessive dust Before and during\par and other air construction.\par emissions due to\par construction.\par TRANSPORTATION & CIRCULATION\par Traffic congestion, insuf- Before and during\par ficient parking, and construction.\par hazards for pedestrians.\par HAZARDS\par Construction in right-of-way Before and during\par may interfere with emergency construction.\par or evacuation plans.\par Potential increase in overhead Before and during\par poles and communciation lines. construction.\par NOISE\par Noise standards for the area are Before and during\par exceeded due to construction. construction.\par AESTHETICS\par Service boxes or cabinets may Before and during\par be a visual blight. construction.\par CULTURAL RESOURCES\par Cultural resources are encount- During construction.\par ered during construction; resour-\par ces are damaged or moved.\par________________________________________________________________________________\par\par -\f0 \'5B*148\'5D \par\par APPENDIX E \par\par INFORMATION REQUESTED OF COMPETITIVE LOCAL CARRIERS \par\par INFORMATION REQUESTED OF COMPETITIVE LOCAL CARRIERS \par \par TO: ALL COMPETITIVE LOCAL CARRIERS \par \par Article 5 of the Public Utilities Code grants authority to the California Public Utilities Commission to require all public utilities doing business in California to file reports as specified by the Commission on the utilities' California operations. \par \par A specific annual report form has not yet been prescribed for the California's competitive local carriers. However, you are hereby directed to submit an original and two copies of the information requested on the following page no later than March 31st of the year following the calendar year for which the annual report is submitted. \par \par Address your report to: \par\par California Public Utilities Commission \par\par Auditing and Compliance Branch, Room 3251 \par\par 505 Van Ness Avenue \par\par San Francisco, CA 94102-3298\par \par Failure to file this information on time may result in a penalty as provided for in {\f0\'A7}{\f0\'A7} 2107 and 2108 of the Public Utilities Code. \par \par If you have any question concerning this matter, please call (415) 703-1961. \par\par INFORMATION REQUESTED OF COMPETITIVE LOCAL CARRIERS \par \par To be \'5B*149\'5D filed with the California Public Utilities Commission, 505 Van Ness Avenue, Room 3251, San Francisco, CA 94102-3298, no later than March 31st of the year following the calendar year for which the annual report is submitted. \par \par 1. Exact legal name and U # of reporting utility. \par \par 2. Address. \par \par 3. Name, title, address, and telephone number of the person to be contacted concerning the reported information. \par \par 4. Name and title of the officer having custody of the general books of account and the address of the office where such books are kept. \par \par 5. Type of organization (e.g., corporation, partnership, sole proprietorship, etc.). \par\par If incorporated, specify: \par \par a. Date of filing articles of incorporation with the Secretary of State. \par \par b. State in which incorporated.\par \par \par 6. Commission decision number granting operating authority and the date of that decision. \par \par 7. Date operations were begun. \par \par 8. Description of other business activities in which the utility is engaged. \par \par 9. A list of all affiliated companies and their relationship to the utility. State if affiliate is a: \par \par a. Regulated public utility. \par \par b. Publicly held corporation.\par \par \par 10. Balance sheet as of December \'5B*150\'5D 31st of the year for which information is submitted. \par \par 11. Income statement for California operations for the calendar year for which information is submitted.\par APPENDIX F \par\par Outstanding CLC Deficiencies of Petitoners \par \par GENERAL ISSUES THAT ALL PETITIONERS MUST CORRECT: \par \par When the compliance tariffs are filed, they should be noted as original sheets, contain original sheet numbers, and should not contain any sidebar notations. Type in decision number of this decision, the December 27, 1995 filing date and the January 1, 1996 effective date. \par \par CLC tariffs must contain rates for all services and elements listed in a CLC's tariffs, except those services offered only on a resale basis can be added later. \par \par CLC tariffs should not reference a prior Commission Decision or P.U. Code section without describing completely its content. For example, regarding Privacy-CLC tariffs may not reference a PU Code or Decision without giving a complete description of the policy/content entailed in that code or decision. \par \par Pacific and GTEC will not have INP tariffs in place until sometime after February 1, 1996. Therefore, CLCs that have filed tariffs for INP have the option \'5B*151\'5D of removing INP rates in their tariffs at this time and may file an advice letter to add this element once LEC INP rates are finalized. Any CLC that has an INP tariff must show specific rates. \par \par Non-Published Service -- CLCs need to define that \'22non-published service\'22 means a customer is not listed in the published directory nor in the directory assistance database. \par \par Advanced Payments -- consist of construction costs, non-recurring charges and first month's recurring charges and must be shown as a credit on the customer's first month's bill. \par \par Refund of Deposits -- After 12 months of timely payments, a deposit must be refunded to the customer with interest and cannot be used as a credit against subsequent bills. \par \par Rates in Rules -- Rates must be stated in the rate section of the tariffs, and should not be included in the rules portion of the tariff. \par \par Service Area Maps- For companies which concur in Pacific Bell's and GTE California service area, their maps may only display Pacific Bell's and GTE California's exchanges. The exchanges of other LECS must to be removed. \par \par COMPANIES: \par \par The Associated Group, Inc. \par \par Rate Sheet 9-T,Section B, Digital Carrier Access Service: \'5B*152\'5D Need to replace with \'22This service provides for Utility-provided switching services for the routing of customer traffic to and from a long distance carrier for completion of long distance calls.\'22 \par \par AT&T Communications of California, Inc. \par \par No. D-2, Sheet 8, Section 2.7.2, \'22Deposits\'22: This section is in conflict with Rule 5 of App. B of D.95-07-054. \par \par Brooks Fiber Communications of Bakersfield, Fresno, Sacramento, San Jose, Stockton \par \par Brook's deficiency letter states concurrence in Pacific Bell's 175-T tariff for switched access. This concurrence must be stated in Brook's tariffs. \par \par Century Telecommunications, Inc. \par \par Schedule Cal. P.U.C. 2-T, Sheet No. 63: Address for Southern California PUC office is incomplete. Add \'22Room 5109\'22 to the address. \par \par Fiber Data Systems, Inc. \par \par Sheet 45-T: Tariffs must state that E911 access is provided at no charge. \par \par MCI Metro Access Transmission Service, Inc. \par \par Rule 3.1.3.4 must be rewritten to comply with ALJ November 21, 1995 Ruling regarding legal fees and courts costs. \par \par Rule 7.1 -- remove the entire third sentence regarding other security interests and pledges because it goes beyond what is allowed in the \'5B*153\'5D Commission's Rule 5 of Appendix B of D.95-07-054. \par \par MFS Intelenet of California, Inc. \par \par Cal. P.U.C. No.2, First Revised Sheet No. 10-T: Reference dates for effectiveness of CHCF surcharge and California Relay Service & Communications Devices Fund surcharge are incorrect. Effective dates are not required, remove references from tariff. \par \par Cal. P.U.C. No. 2, Sheet 46-T: Local calling areas need to be defined prior to tariff approval. \par \par Cal. P.U.C. No. 2, Sheet 89-T: Rule 3, Customer Application for Service language must specify all documents that a customer \'22may be reasonably requested...\'22 to complete. \par \par No. 2, Sheet 91-T, Rule 7, Section B - Deposits: This section is in conflict with Rule 5 of App. B of D.95-07-054. \par \par Cal. P.U.C. No. 2, Rule 9, Section B and Rule 10, Section 2: The two rules conflict with each other because in Rule 9 bills are due 30 days after presentation date and in Rule 10 undisputed bill portions are due 15 days after presentation date. MFS may specify either due date, but the date must be applied consistently to non-recurring, recurring and usage charges. Due dates may not be different for undisputed portions of disputed bills. \par \par Cal. P.U.C. No-2, Sheet \'5B*154\'5D 121-T: MFS cannot refuse to provide service to a customer solely because the customer has outstanding charges with another telecommunications corporation. \par \par NewTelco, L.P. \par \par A-1, Sheet 96: If NewTelco offers blocking of 900/976 calls to its customers, NewTelco must allow customers to remove the blocking. If NewTelco charges for removing the blocking, the charge must appear in NewTelco's tariffs. \par \par A-1, Sheet 54-T, 63-T and 65-T: Rules 5 and 9 conflict because bill due dates are not consistent. NewTelco may specify either due date, but the date must be applied consistently to non-recurring, recurring and usage charges. \par \par Pacific Bell \par \par No Tariff Title Page \par \par Incomplete Table of Contents \par \par No Preliminary Statement \par \par No Non-recurring charges for 1MB, PBX Trunks, Centrex Classic Feature Package \par \par No Service Description or Terms and Conditions for 1MB, PBX, Centrex and Frame Relay, ISDN, HICAP services, Custom 800, and local toll. \par \par The tariff must state concurrence in Pacific switched access tariff \par \par Proposed tariff does not address rules. Pacific may state concurrence in its network and exchange tariff rules to the extent they do not conflict with the CLC rules \'5B*155\'5D established in Appendix B of D.95-07-054. \par \par Winstar Wireless of California, Inc. \par \par No. 1, Sheet 30-T: Local calling area needs to be specifically defined. Winstar cannot simply reference the exchange map shown on Sheet 7-T. \par \par No. 1, Sheet 43-T: A-1, Sheet 96: If Winstar offers blocking of 900/976 calls to its customers, Winstar must allow customers to remove the blocking. If Winstar charges for removing the blocking, the charge must appear in Winstar's tariffs. \par \par No. 1, Sheet 49-T, Section 7.1 - Advance Payments: Advance payments may be for only one month's worth of recurring charges. \par \par No. 1, Sheet 80-T, Rule 22.4 - Prohibited Uses: Winstar may not impose a disconnection fees when customers terminate service. \par \par No. 1, Sheet 83-T, Rule 28 - Change in Service Provider: The rule does not correctly reflect Rule 11 in Appendix B of D.95-07-054. Winstar should rewrite this rule to mirror Rule 11. \pard -\sect \sectd \sbknone -\f1 \fs20 \page ****------------------------------------------------------------------------****\par \par * 76 PAGES 3529 LINES JOB 75977 100E67 *\par * 3:37 P.M. STARTED 3:39 P.M. ENDED 10/23/97 *\par ****------------------------------------------------------------------------****\par ****------------------------------------------------------------------------****\par * EEEEE N N DDDD *\par * E N N D D *\par * E NN N D D *\par * EEE N N N D D *\par * E N NN D D *\par * E N N D D *\par * EEEEE N N DDDD *\par \par ****------------------------------------------------------------------------****\par \par ****------------------------------------------------------------------------****\par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par SEND TO: WILLIAMS, KALE \par CALIFORNIA PUBLIC UTILITIES COMM. \par LEGAL DIVISION \par 505 VAN NESS AVENUE, ROOM 2204 \par SAN FRANCISCO, CALIFORNIA 94102-3298} \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9603020.doc b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9603020.doc deleted file mode 100644 index edbf178..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/d9603020.doc +++ /dev/null @@ -1,3432 +0,0 @@ -{\rtf1 \ansi \deff0 -{\fonttbl -{\f0 \fmodern Courier New;} -{\f1 \fmodern Courier New;} -{\f2 \froman Symbol;} -{\f3 \froman MS LineDraw;} -{\f4 \froman Wingdings;} -{\f5 \froman ZapfDingbats;}} -{\colortbl ;\red0 \green0 \blue0 ;\red0 \green0 \blue127 ;\red0 \green127 \blue0 ;\red0 \green127 \blue127 ;\red127 \green0 \blue0 ;\red127 \green0 \blue127 ;\red127 \green127 \blue0 ;\red192 \green192 \blue192 ;\red127 \green127 -\blue127 ;\red0 \green0 \blue255 ;\red0 \green255 \blue0 ;\red0 \green255 \blue255 ;\red255 \green0 \blue0 ;\red255 \green0 \blue255 ;\red255 \green255 \blue0 ;\red255 \green255 \blue255 ;} -{\info }\deflang0 \paperw12240 \paperh15840 \margl1008 \margr432 \margt480 \margb2160 \facingp \revbar1 \fet2 \ftnbj \pgnstarts1 \pgnrestart \pgwsxn12240 \pghsxn15840 \margtsxn480 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery0 -\footery720 -{\headerr } -{\headerl } -{\footerr \pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 -\par -\par -\par -\par -\par \pgnstarts1 \pgnrestart \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 ALJ/TRP/sid -\par \tab -\par -\par -\par Decision 96\_03\_020 March 13, 1996 -\par -\par \qc BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 -\par Order Instituting Rulemaking on the \tab ) -\par Commission's Own Motion Into\tab ) R.95\_04\_043 -\par Competition for Local Exchange \tab ) (Filed April 26, 1995) -\par Service.\tab ) -\par \ul \ulnone ) -\par \tab ) -\par Order Instituting Investigation\tab ) I.95\_04\_044 -\par on the Commission's Own Motion \tab ) (Filed April 26, 1995) -\par into Competition for Local Exchange\tab ) -\par Service.\tab ) -\par \ul \ulnone ) -\par -\par -\par \qc (See Appendix A for appearances.) -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 -\par -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \pgnstarts1 \pgnrestart \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \qc \ul \b O P I N I O N\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 -\par -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 -\par -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \qc \b I -. \ul Introduction\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par \tab \b0 By this decision, we institute the resale of local exchange service by competitive local carriers (CLCs) within the market territories of Pacific Bell (Pacific) and GTE California (GTEC) effective March 31, 1996. Pacific and G -TEC will be required to offer a broad range of services for resale. We adopt wholesale rates for these services that reflect avoided retail costs. For Pacific and GTEC, adopted wholesale rates will generally reflect a 17% and a 12% reducti -on, respectively, below current retail rates (with certain exceptions noted in the order below). The interim rules adopted in this decision also cover the issues designated for evidentiary hearings in Phase II of this proceeding, namely, lo -cal exchange carrier (LEC) and CLC retail pricing flexibility policies, rating area consistency, and recovery of the costs of implementing local exchange competition. -\par \tab Consistent with our adopted timetable for progressing toward a fully competitive telecommunications market, today's decision will enable the competitive resale of the basic exchange service of Pacific and GTEC to commence effective - March 31, 1996. Today's decision will help us meet the requirement of Public Utilities (PU) Code \{ 709.5 that we "ensure that competition in telecommunications markets is fair and that the state's universal service policy is observed." -Meeting this mandate involves the close coordination of this rulemaking and investigation with companion proceedings including Open Access and Network Architecture Development (OANAD), Universal Service, and the New Regulatory Framework (NRF -). The rules adopted in today's decision are interim in nature and designed to be modified, as we progress past various milestones in this as well as in companion proceedings. -\par In the meantime, the measures we adopt for interim purposes are based on the best information available to us today. In the interests of maintaining California's leadership in creating a competitive telecommunications market, we have -adopted a schedule that initiates resale competition now even though the pathway toward a fully competitive market will require additional work. Accordingly, throughout this decision, we lay out remaining tasks to be completed in this as we -ll as other proceedings in order to make progress toward a fully competitive market. -\par \tab As we discuss below, although the rules we adopt are intended to ultimately lead to a fully competitive market, the incumbent LECs will likely not lose their market power overnight. Accordingly, at least during the initial transit -ion to a competitive marketplace, our interim rules must retain certain restrictions on the LECs in recognition of their market dominance. We intend to continue monitoring the progress of competition on an ongoing basis and will consider m -odifying regulations for either the LECs or the CLCs when justified to allow the forces of competition to work. It would be irresponsible, however, to prematurely remove regulatory safeguards which are in place to ensure that carriers canno -t abuse their market power to the detriment of the public interest. -\par -\par \qc \b II. \ul Procedural Background\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par \tab \b0 By issuance of Decision (D.) 94\_12\_053, we formally adopted a procedural plan to open all telecommunications markets within California to competition by January 1, 1997. As part of that plan, we instituted R.95\_04\_043/I.95 -\_04\_044 on April 26, 1995 in which interim rules were proposed for local exchange competition within the service territories of Pacific and GTEC. The proposed rules included provisions for interim number portability (INP). -\par \tab In July 1995, we issued D.95\_07\_054 which set forth our initial rules for the competitive provision of local exchange service within the territories of Pacific and GTEC. As prescribed by D.95\_07\_054, entry into the local excha -nge service market for facilities\_based CLCs was authorized to begin January 1, 1996 and for CLC resellers of local exchange service by March 1, 1996. D.95\_07\_054 also identified issues for which evidentiary hearings would be held, and d -irected the administrative law judge (ALJ) to schedule them. -\par \tab By ruling dated August 18, 1995, the assigned ALJ adopted a procedural schedule establishing three phases for the proceeding. The ALJ's adopted schedule called for INP issues to be divided between Phase I and Phase II of the proc -eeding. -\par \tab Phase I was designated to cover issues relating to the institution of facilities\_based competition effective January 1, 1996. We adopted additional interim rules on December 20, 1995, in D.95\_12\_056 governing interconnection an -d related matters in Phase\~I. In D.95\_12\_057, we concurrently approved an initial group of CLC petitions to engage in facilities\_based competition. Phase\~II was designated to cover hearing issues relating to institution of bundled res -ale competition to become effective March\~1, 1996, as well as LEC/CLC retail pricing flexibility, NXX rating area consistency, and implementation costs.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 The issues of interim number portability pricing and franchise impacts, originally Phase II issues, were rescheduled to be decided in separate decisions. On -January 8, 1996, a proposed ALJ Decision was released addressing interim number portability pricing. A decision on franchise impacts issues is scheduled for Commission action in the spring of 1996. -\par }}\up0 In addition to the issues which were designated for evidentiary hearings, Phase\~II was also designated to address the remaining rulemaking issues which were set forth in the proposed interim rules issued -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 April 26, 1995 but which were not resolved in our Phase I decision (D.95\_12\_056). As determined in D.95\_07\_054, these rulemaking issues were addressed by wri -tten comment only and were not the subject of evidentiary hearings. In this decision, we shall address the issue of resale restrictions which was subject to written comments because of its close linkage to resale rates which was designated -as a hearing issue.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Various parties filed written comments on resale issues and/or briefs who did not offer testimony. We have reviewed all parties' filed comments, and briefs a -nd taken them into account as appropriate. -\par }}\up0 We addressed the remaining Phase II nonhearing issues in a decision on February 23, 1996. -\par \tab Phase II evidentiary hearings were held from October 23 through November 21, 1995. Testimony on Phase\~II issues was served on October 9, 1995, by Pacific, GTEC, the Commission's Division of Ratepayer Advocates (DRA), MCI Telecomm -unications Corp. (MCI), AT&T Communications of California, Inc. (AT&T), Citizens Utilities (Citizens), Public Advocates,\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Public Advocates represents the Southern Christian Leadership Conference, National Council of La Raza, Korean Youth and Community Center, Filipinos for Affirm -ative Action, and Filipino Civil Rights Advocates. -\par }}\up0 LDDS World Com (LDDS); California Cable Television Association (CCTA); Teleport Communications Group (TCG) and Toward Utility Rate Normalization (TURN). The California Telecommunications Coalition (Coalition) filed a single bri -ef in support of its members' positions. In the case of wholesale rate issues, separate briefs were filed by various Coalition members. The members of the Coalition joining in the brief in addition to those serving testimony include Califo -rnia Association of Long Distance Telephone Companies; California Payphone Association; Time Warner AxS of California, L.P. Opening briefs were filed -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 December\~11, 1995, and reply briefs were filed December 18, 1995. This decision disposes of all Phase II hearing issues. -\par -\par \qc \b III. \ul Competitive Resale of Local Exchange Service\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 A. \ul Introduction\ulnone -\par \tab \tab \b0 In D.95\_07\_054, we stated that resale of basic services by the LECs is key to creating a truly competitive local exchange market,\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 D.95\_07\_054, mimeo, p. 31.}}\up0 and required Pacific and GTEC to provide basic service for resale by March 1, 1996. To implement this requirement, we sol -icited input regarding the following topics: (1) The appropriate interim rate for wholesale bundled local exchange services and (2)\~How to reconcile rates other than existing retail rates with the Commission's imputation policies expressed - in IRD. -\par \b B. \ul Parties' Positions\ulnone -\par \ul Pacific\ulnone -\par \tab \tab \b0 On an interim basis, Pacific proposes reselling basic access service priced at the current retail rate for its 1MB basic business service, or $10.32/month. Pacific believes the $10.32 rate will allow Pacific to recover it -s costs, is low enough to attract entry by resellers, and complies with the Commission's order that the NRF LECs must offer resale of basic service by March\~1, 1996. -\par \tab \tab Pacific would tariff "basic service" for resale as an access line, with no packaged local usage. The resale access line (1RL) would be available throughout Pacific's territory, could be purchased as a single line or multi\_li -ne group, and could be resold by the CLC to either business or residential customers. Included with the 1RL would be the telephone number, dial tone, touch\_tone, a copy of white and yellow pages, the ability to place/receive calls, the abi -lity to place 10XXX calls, and access to 911, operator, 800, and 900 services. Pacific would also include with its 1RL a listing in the white pages, yellow pages, and Pacific's 411 data base. Custom calling features would be available thro -ugh Pacific's already approved wholesale tariff and could be packaged -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 with 1RL by resellers. Also, blocking of 900 and 976 calls wou -ld be provided free to the residential customers of resellers. Excluded from 1RL basic service would be local usage, which Pacific would sell separately, billed at its current retail rates. -\par \tab \tab Pacific proposes that existing resale restrictions on any of its local exchange services be maintained. Pacific argues that CLCs will have ample opportunity to compete in the resale market through the 1 RL tariff offering wit -hout the lifting of resale restrictions on all LEC local exchange services. Pacific believes that the lifting of resale restrictions will cause resellers to arbitrage subsidized services and will undermine the LECs' ability to earn a fair r -eturn. Pacific is particularly concerned that large IECs will be able to offer customers "one\_stop shopping" whereby all the customer's traffic could be carried by the IEC. Pacific believes that the IECs intend to use the lure of cheap re -sale rates for local exchange service to also capture the more lucrative toll market. To mitigate the risk that IECs will be able to take away a significant share of Pacific's toll customers, Pacific proposes restricting CLCs and IECs who h -ave over 5% of the presubscribed access lines from jointly marketing interLATA services and resold local services obtained from the LEC. Without this restriction, Pacific states it would be at a competitive disadvantage due to its inability - to package inter\_ and intraLATA services. Pacific's proposed joint marketing restriction would remain in place until Pacific was permitted into the interLATA market. GTEC proposes that no CLC should be allowed to bundle interLATA service -s with intraLATA services as long as GTEC is excluded from doing the same. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \tab Pacific intends for all services provided in conjunction -with its resale service to be priced at "compensatory rates." In practice, this would mean that usage would be resold at currently tariffed or "retail" rates; Directory Assistance would be resold on a per\_call, retail basis, without the al -lowances Pacific is required to give its own retail customers; and Operator service would be charged on a per\_call basis. Tariffed volume discounts would not be available for toll resold to customers since Pacific states that its billing s -ystem cannot track toll usage resold to specific end users of the reseller. -\par \tab \tab On a longer\_term basis, Pacific proposes pricing its wholesale service based on geographically deaveraged TSLRIC. Pacific strongly opposes setting wholesale prices "below cost," arguing that to do so would be inconsistent wi -th economically efficient pricing; would be confiscatory and financially harmful to Pacific; and would be inconsistent with the Commission's own policy that rates be set at or above cost. Pacific recommends that all LEC services, including -resold basic service, be priced above cost in order to cover joint and common costs such as overhead costs. -\par \tab \tab Pacific states that applying standard imputation rules to subsidized service will result in negative contribution, where the price floor of the retail service after imputation may be lower that its incremental cost. Pacific b -elieves this issue can be solved through universal service funding that is made available to all providers. -\par \ul \b GTEC\ulnone -\par \tab \tab \b0 GTEC recommends a resale pricing policy that it calls the "efficient component pricing rule" (ECPR). Under ECPR, GTEC's resale price would equal GTEC's average incremental cost, including all pertinent incremental opportu -nity costs. Among the opportunity costs included in GTEC's ECPR are the profits (i.e., contribution) that GTEC loses by being forced to sell services to its rivals who use the purchased inputs to take away business from GTEC. For -\par example, competitors might package their own toll service with basic exchange service purchased from GTEC, causing GTEC to lose the contribution embedded in the toll service it previously provided. -\par \tab \tab GTEC justifies its ECPR on several grounds. First, the Commission adopted a "contribution formula" in the IRD decision which GTEC views as similar to its ECPR formula. Second, GTEC states that a competitor in a competitive m -arket will charge a price for an input to recover the same level of contribution which the competitor would have received if it had used the input to sell the final product itself. Third, ECPR is economically efficient since it reflects GTE -C's economic costs. Finally, GTEC argues ECPR is fair since it preserves the level of contribution irrespective of whether GTEC sells the product wholesale to the CLCs or retail to the end user. -\par \tab \tab GTEC proposes a basic exchange wholesale rate of $25.92/month which could be resold by the CLC to either business or residential customers. GTEC says this rate reflects ECPR since it is the sum of the LRIC for basic business -service plus a contribution to margin, and excludes all costs associated with LEC retail activities. Included in the wholesale price is the contribution from anticipated losses in intraLATA toll if a CLC provides its own intraLATA toll serv -ices via 10XXX. However, if the CLC end user uses GTEC's intraLATA toll service, GTEC will provide a credit to the CLC, based on 9 cents per intraLATA toll MOU, not to exceed $7/month per pre\_subscribed line, which results in a wholesale b -asic exchange rate as low as $18.92/month. The intent of the credit is avoid double recovery of contribution to margin from toll services. -\par \ul \b The Coalition\ulnone -\par \tab \tab \b0 The Coalition argues that all existing resale restrictions should be lifted if viable resale competition is to occur. The Coalition proposes that at least the following services not be restricted: -\par \pard \li0 \ri2448 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \tab \tab 1.\tab Residential 1FR and 1MR service\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 The Coalition agrees, however, that the existing restriction on selling 1FR service to business customers is appropriate if the Commission believes that 1FR r -ates are below cost. -\par }}\up0 -\par -\par \tab \tab 2.\tab All vertical features -\par -\par \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \tab \tab 3.\tab Pacific's CENTREX and GTEC's CENTRANET services -\par -\par \tab \tab 4.\tab ISDN, both primary rate interface (PRI) and basic rate interface (BRI) -\par -\par \tab \tab 5.\tab All bulk\_purchase intraLATA toll offerings, whether they be tariffed or offered pursuant to contract -\par -\par \tab \tab 6.\tab All private line services\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 This includes digital (DS0, DS1 and DS3) and voice\_grade private lines, fractional T1.5, basic rate digital services (2.4\~-\~64 Kbps), frame relay service, -packet switched service, switched multi\_megabit data service (SMDS), switched services, foreign exchange (FX) lines and off\_premise extensions. -\par }}\up0 -\par -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 The members of the Coalition do not have a consensus position on issue of wholesale rates of LEC services. Instead, the following members of the Coalition pres -ented separate positions on this topic. We shall review each position below. -\par \ul \b AT&T and MCI (AT&T/MCI)\ulnone -\par \tab \tab \b0 AT&T/MCI recommend that the Commission adopt interim wholesale rates equal to the LECs' current tariffed rates less "retail costs" the LECs avoid by selling the services wholesale to CLCs. According to AT&T/MCI, the retai -l costs that LECs avoid by selling wholesale to CLCs amount to 28% of Pacific's tariffed rates and 24% of GTEC's tariffed rates. These across\_the\_board percentages were the result of an analysis performed by AT&T witness Selwyn (Exh. 45) -using accounting data reported on Pacific's and GTEC's Form M's filed with the FCC. From this data, AT&T identified costs attributable to retailing functions such as billing and collection, sales and marketing, and processing end\_user serv -ice orders. Once TSLRIC studies become available, AT&T/MCI support pricing LEC wholesale services at their TSLRIC with no additional mark\_up. -\par \tab \tab AT&T/MCI believe that wholesale rates proposed by Pacific and GTEC generally exceed what the LECs charge to their own end users, thus making it extremely difficult for resellers to compete for customers. For instance, GTEC's - proposed wholesale monthly rate of $25.92 (plus usage) exceeds GTEC's $10.00 for 1MR, $17.25 for 1FR, and $19.22 for 1MB. Similarly, Pacific's 1RL rate of $10.32/month (plus usage) exceeds Pacific's $6.00 for 1MR, and, in most circumstance -s probably exceeds Pacific's $11.25 for 1FR if usage charges are taken into account. These comparisons do not include the additional charges the CLCs will have to pay for services the LECs provide free to their own customers, such as the fi -ve free monthly directory assistance (DA) calls Pacific provides to its residential customers and two free DA calls Pacific provides to its business customers; nor do the comparisons include the mark\_up the CLCs must add to recover their o -wn internal costs. -\par \tab \tab AT&T/MCI also claim the LECs' proposed wholesale rates would allow the LECs to make more money from CLCs than from their own retail customers because the LECs would charge the CLCs at least as much as the LECs' own end users w -ithout incurring any of the retail\_related costs. In addition, the LECs will continue to receive direct subsidies such as the EUCL charge and interstate carrier common line charge (CCL), while the CLCs would bear much of the associated cos -ts. -\par \tab \tab AT&T/MCI claim that pricing LEC wholesale offerings at the same level as LEC retail offerings, without regard to avoidable retailing costs would create an anticompetitive price squeeze, and would prohibit the CLCs from competi -ng against the LECs on the basis of the retailing efficiencies. Conversely, if LEC wholesale pricing excludes avoidable retail costs, resellers will have an opportunity to substitute their retail functions for those otherwise provided by th -e incumbent LEC, and to pass on any efficiencies in the form of lower prices. AT&T/MCI claim that their proposed wholesale rates maintain current levels of contribution built into LEC retail prices, since the tariffed rate is only reduced b -y avoided retail costs, leaving intact any built\_in contribution. -\par \tab \tab AT&T/MCI also state that the wholesale services the LECs will sell to the CLCs will be inferior to the service the LECs provide to their own end users in five different areas. Because of the inferior service, AT&T/MCI believe - that CLCs will be at a competitive disadvantage, and recommend that the LECs be required to discount the wholesale service by 2% for each of the five identified deficiencies until the problems are resolved. The five areas of deficiencies -are: (1) Pre\_provisioning ordering; (2)\~service ordering and provisioning; (3) on\_line access to local listing databases and line information databases; (4) trouble reporting and resolution; and (5) access to local usage data. -\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 For definitions of the deficiencies, see the Coalition's November 27, 1995 Phase II Reply Comments, pp. 14\_15. -\par -\par }}\up0 -\par \tab \tab AT&T/MCI recommend that the Commission allow the resale of LEC residential flat\_rate (1FR) and measured\_rate service (1MR). According to AT&T/MCI, even if residential rates are currently below cost, the LECs are no worse of -f by wholesaling 1FR and 1MR to CLCs since the wholesale rate subtracts only the LECs avoidable costs from the retail price. To the extent the Commission is concerned that lower priced residential services will be resold to -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 business customers, placing LECs at a disadvantage, AT&T/MCI believe that a narrow and temporary limitation can be impose -d on the resale of residential services to business customers until cost\_based rates can be set. -\par \tab \tab AT&T/MCI also recommend that resellers be allowed to purchase vertical features and intraLATA toll service at the tariff or contract rates Pacific and GTEC offer to their largest customers. AT&T/MCI state that the LECs have e -ntered into hundreds of contracts with large end\_users for vertical features and intraLATA toll services at prices below tariffed rates. AT&T/MCI believe that it would be discriminatory for the LECs to deny a CLC reseller, whose volumes ma -y exceed those of large end\_users, the same bulk\_purchase prices offered to end users. AT&T/MCI state that CLC resellers should be able, as the LECs' large end users are, to receive toll discounts based upon a CLC's total toll usage which - AT&T/MCI state can be tracked by the LECs' billing systems. -\par \tab \tab Finally, AT&T/MCI recommend that the LECs should be ordered to wholesale all of their services, including ISDN and Centrex. For those services for which Pacific and GTEC have contracting authority, they should be required - to enter into contracts with reseller CLCs with comparable terms and conditions as those offered to the LECs' end users. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \b Sprint Communications Company, -\par TCG; Time Warner AxS of California (TW); MFS -\par \ul Intelenet of California (MFS)\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Sprint, TCG, TW, CCTA, and MFS each filed separate briefs that stated similar positions on the issue of LEC resale rates. -\par }}\up0 and CCTA \ulnone -\par -\par \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \tab \b0 According to Sprint, TCG, TW, CCTA, and MFS,\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 MFS's brief included a discussion and recommendations regarding access to rights of way. That issue was set for written comment only pursuant to the ALJ Ruli -ng of August 18, 1995, and will not be addressed by this decision. -\par }}\up0 the ultimate success of local competition hinges on robust facilities\_based competition. Once facilities\_based competition is fully in place, they believe that resellers will be able to obtain discounts from the many competin -g facilities\_based providers and offer vigorous competition to incumbent LECs. Sprint, TCG, TW, and MFS argue that setting LEC wholesale rates at large wholesale discounts below actual costs would give CLC resellers an unfair advantage and - discourage investment by facilities\_based CLCs, impeding the development of facilities\_based competition. -\par \tab Sprint, TCG, TW, and MFS oppose the interim discounted wholesale prices recommended by AT&T/MCI, arguing that AT&T/MCI have not properly supported their proposal. TCG adds that AT&T/MCIs' proposal to discount Pacific's and GTEC's - wholesale rates by an additional 10% until certain interfaces are provided by the two LECs is arbitrary. Instead, TCG believes that the LEC interfaces should be made available at prices that reflect the cost of providing the interfaces. T -CG notes that when AT&T and Sprint provide services to resellers, they do not discount the price of their wholesale offerings to compensate their resale customers for their lack of access to Sprint or AT&T internal databases. -\par \tab To the extent LECs provide discounted service to reseller CLCs, TW and MFS believe the discounts should be negotiated between the LEC and CLC. If the Commission is determined to set a wholesale discount, TCG states that it should -be no greater than the LEC's clearly demonstrated avoided cost. Finally, TCG recommends removal of all restrictions on the resale of residential flat rated service, except to restrict resale of residential services to nonresidential custome -rs if the residential rates are not compensatory. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx5328 \hyphpar1 \b \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 \ul \b LDDS\ulnone -\par \tab \b0 LDDS recommends that LECs be required to offer a "wholesale local network platform" (WLNP) which it defines as an end\_to\_end network configuration that can be purchased and re\_offered to customers. The WLNP would include t -he provision of local loops, switching, call termination, vertical services, interexchange access, and any other operational inputs necessary to make resold service appear seamless to the end user. Carriers purchasing the WLNP would be able - to use the platform to provide innovative retail local services, offering both basic service and vertical features, and reselling access to IECs. The WLNP could also be combined with other services to create full service offerings in compe -tition with the LECs' own offerings. -\par \tab LDDS sees many benefits from requiring the LECs to offer a WLNP. First, full\_service retail packages would be available from many providers, not just those who own local network facilities. Second, customers in areas in which in -vestment in local facilities is uneconomic would have the same choices that would be available to customers in areas where such investment may be justified. Third, with WLNP, local resale competition could proceed immediately, everywhere, -and for all customers without the need to await the construction of new local facilities. Fourth, WLNP would give IECs the same opportunity to provide local service to their customers over the existing LEC network that LECs will have to pro -vide long distance service to their customers over existing IEC networks. Finally, the availability of a WLNP would promote the construction of new local networks by allowing new entrants to develop a customer base and build facilities grad -ually where it is efficient to do so. -\par \tab LDDS states that carriers purchasing from the WLNP should be able to resell it at any price they choose. LDDS believes that the LECs should be indifferent to this proposal as long as they receive full cost of the WLNP. -\par \tab LDDS believes that LECs should be required to provide the necessary data to allow the WLNP users to bill IECs for access. If the current carrier access billing systems (CABS) do not permit the LECs to make the data available, then - LDDS believes the LECs should make the necessary system modifications to make such data available. If the LEC demonstrates that it will take time to revise its CABS billing system, LDDS suggests on an interim basis, the LEC could adjust it -s charges to the CLC by a surrogate approximating the access revenues the LEC is receiving from that CLC's customers, based on the average usage per line. -\par \tab LDDS believes that WLNP must be priced at TSLRIC as soon as possible so that competing carriers using the local network face the same underlying cost structure as do the LECs. Until TSLRIC cost studies can be completed, LDDS suppo -rts using the avoided cost approach proposed by AT&T/MCI. -\par \tab LDDS finds fault with the concern of some parties that facilities\_based competition will be delayed if wholesale local service is priced at rates lower than the LECs' retail rates. LDDS believes that the experience of the long di -stance industry belies this argument since discounted wholesale long distance service has existed concurrently with the construction of four nationwide and many regional IEC networks. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart \ul \b Citizens\ulnone -\par \tab \b0 Citizens opposes the wholesale prices proposed by Pacific and GTEC. Citizens believes that the proposed rates inappropriately include retail costs that are avoided when providing the services at wholesale. Citizens also opp -oses using AT&T's proposed across\_the\_board flat percentage discount to Pacific's and GTEC's "retail" prices. Instead, Citizens proposes a formula which it believes will assure that the LECs recover their legitimate costs. Citizens' form -ula would make the wholesale price equal to the retail price less avoided costs plus any specific added costs incurred for a true co\_carrier relationship. -\par \tab Citizens supports requiring LECs to provide bundled services to CLCs at wholesale prices with the exception that: (1)\~no resale should be required for services which the Commission has mandated prices to be set below TSLRIC or DE -C, whichever is lower, for social policy reasons; and (2) the resale of switched access lines for switched access purposes should be prohibited without payment of applicable switched access charges. -\par \ul \b TURN\ulnone -\par \tab \b0 TURN supports the avoided cost wholesale discount proposed by AT&T of 28% for Pacific and 24% for GTEC. TURN also supports AT&T's recommendation for an additional 2% discount for each area for which LEC provisioning is unsatis -factory. If the Commission determines that the LEC's avoided costs are less than what AT&T has found, TURN recommends that the Commission adopt a discount based on its own calculation of avoided costs, plus a discount for each of the five a -reas of unsatisfactory provisioning identified by AT&T. TURN suggests that a discount of up to 25% would be appropriate. -\par \tab TURN is concerned that affordable flat rate service will not be available for resale. According to TURN, this is a popular service, and the LECs should be required to wholesale flat rate service with a cost\_based discount. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart \ul \b DRA\ulnone -\par \tab \b0 Until costs are determined in the OANAD or Universal Service proceedings, DRA recommends that basic business services should be offered for resale at the current, IRD\_based tariffed rates for 1MB service, less avoidable retail -ing costs. DRA recommends using the avoidable retailing costs included in cost studies upon which IRD adopted rates are based. Since neither Pacific nor GTEC has provided such cost studies, DRA recommends using as an alternative the avoida -ble retailing costs calculated by AT&T. Accordingly, DRA's recommended rate for basic business access service for Pacific is its 1MB rate of $10.32/month less 28% and for GTEC is GTEC's 1MB rate of $19.22/month less 24%. However, DRA would - add back 5% for Pacific since Pacific's 1MB rate of $10.32/month was set at 5% below DEC in IRD. DRA also recommends that additional usage charges proposed by Pacific and GTEC should be reduced by 28% and 24%, respectively, to account for -avoidable retailing costs. -\par \tab DRA recommends that Pacific and GTEC not be required to offer resale of basic residential services until appropriate cost\_based residential rates are determined in the OANAD or Universal Service proceedings. DRA believes that rat -es for basic residential services were set below cost in the IRD proceeding for public policy reasons, and that it would be inappropriate to authorize the resale of residential service at below\_cost rates. DRA is concerned that the LECs no -t be allowed to seek recovery of revenue losses alleged to represent below\_cost rates. -\par \tab DRA opposes GTEC's proposed rate of $25.92 (plus additional usage charges) which DRA states is substantially higher than GTEC's IRD rates of $17.25 for 1FR, $10.00 for 1MR, and $19.22 for 1MB. DRA states that GTEC's IRD rates prov -ide the required revenue contribution and preserve GTEC's financial security. For GTEC to charge a wholesale rate greater than its -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 retail rates would, in DRA's view, result in unjustified additional revenues while unduly inhibiting reseller -s' ability to compete against GTEC. DRA therefore recommends that GTEC's wholesale rate for business be set at the current 1MB monthly rate of $19.22 less 24% for avoidable retail costs. For residential, DRA recommends that GTEC's wholesal -e rates equal the current tariffed rates with no adjustment for avoidable retail costs. However, GTEC's proposed usage charges should be reduced by 24%. -\par \tab DRA supports there being no end user restriction for the resale of local service if the Commission adopts uniform wholesale rates for both business and residential services, such as those proposed by Pacific and GTEC. However, if -the Commission adopts wholesale rates that are different for business and residence local exchange service, DRA recommends that the Commission impose use and user restrictions on all local exchange service providers, similar to those current -ly applicable to incumbent LECs. Otherwise, the resellers could purchase residential or lifeline services at discounts and unfairly resell those services to business customers at a profit. -\par \tab DRA supports AT&T's proposal for additional discounts on resold LEC services that are inferior to the same service the LEC provides to its own customers. DRA agrees with AT&T that such an approach would incent the LECs to expediti -ously provide all interconnection and intercompany arrangements necessary for resellers to provide services comparable to the LECs'. -\par \ul \b Public Advocates\ulnone -\par \tab \b0 Public Advocates is concerned that California's minority, low\_income, and limited\_English\_speaking communities may not benefit fully and equally from local competition. According to Public Advocates, Pacific, GTEC, and the -CLCs intend to focus their energies on serving business and affluent residential customers. Public Advocates believes that carriers -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid * -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 will compete for the high revenue customers by offering them lower rates and new technologies such as ISDN, A -TM, Internet access, and frame relay. On the other hand, Public Advocates perceives a lack of commitment by carriers to provide new or lower cost services to low\_income, minority, and limited\_English\_speaking communities. Public Advocat -es asks the Commission to prevent local carriers from implementing the above mentioned pricing and marketing strategies which discriminate against California's disadvantaged communities. -\par \ul \b California Department of Consumer Affairs (DCA)\ulnone -\par \tab \b0 DCA recommends that monopoly building blocks necessary to provide service to end users be unbundled and sold at wholesale rates. DCA believes that wholesale rates for monopoly building blocks should exclude costs that are avoi -ded by selling the service at wholesale instead of retail. DCA also recommends that LECs should not be required to provide resellers with competitive services that CLCs can obtain from other sources. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \b C. \ul Discussion\ulnone -\par \tab 1. \tab \ul General Program for Adopting Resale Rates\ulnone -\par \tab \tab \b0 The resale rates we adopt in this decision are interim in nature and will permit certificated CLC resellers to begin competitively reselling the LECs' bundled local exchange service effective March 31, 1996. Because cost -studies for unbundled network elements have not yet been approved in OANAD, the wholesale rates we adopt herein necessarily cover only bundled local exchange service and do not reflect TSLRIC\_based costs. In the OANAD proceeding, parties w -ill be developing TSLRIC studies which will be used to develop wholesale rates for unbundled network elements. Once these rates are adopted in OANAD, we shall begin to use them to replace the interim wholesale rates adopted in this order. -\par \tab \tab Likewise, our adopted wholesale rates are on a statewide average basis for each LEC. As discussed below, we -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 recognize the merits of geographic deaveraging of rates and adopt a plan for th -e subsequent adoption of geographically deaveraged LEC retail rates. While parties disagree on the specific levels of geographic costs, there is general agreement that costs can vary dramatically between low and high cost areas. Given the -significant variation in costs, statewide average wholesale prices will provide uneconomic pricing signals to competitors who are deciding whether to resell or build their own facilities. Accordingly, we intend to concurrently develop geogr -aphically deaveraged wholesale cost studies and rates under a schedule to be announced to permit the CLC resellers to compete effectively. -\par \tab \tab Our goal in establishing interim wholesale rates is to promote economic efficiency and a level playing field among all competitors. These goals will be met by setting wholesale rates in relation to the cost of service and by - assuring that the bundled elements and features offered for resale match as closely as possible the retail service packages which the LECs currently market. Since the determination of cost\_based rates for wholesale service is yet to be m -ade, we must adopt an interim solution that will allow resale to begin March 31, 1996, while striking a fair balance between the interests of competing LECs and CLCs, and promoting competitively priced retail service to consumers. -\par \tab \tab Until further order of the Commission, wholesale rates should be set high enough that LECs are fairly compensated. Otherwise, this would give resellers an unfair competitive advantage relative to the LECs as well as facilitie -s\_based CLCs. Wholesale rates should be set low enough so that CLC resellers are not subjected to price squeezes which impede or prevent the CLCs from offering a competitive price. The determination of wholesale rates during this interim -period prior to completion of OANAD cost studies and price determinations is, of necessity, an imprecise art. -\par \b 2.\tab \ul Resale Restrictions\ulnone -\par \tab \tab \b0 In this decision, we will address the issues of wholesale rates and restrictions on the resale of LEC retail services. In D.96\_02\_072 regarding Phase II issues which were subject to written comments only, we addressed o -ther terms and conditions of resale including operational interface requirements. We conclude that the proposed tariffs of Pacific and GTEC are overly restrictive in terms of the limited range of services which would be available for resale -. The LECs should amend their tariffs to incorporate the list of services set forth on Table 1 below for resale. Unless the range of services which the LECs proposed to offer for resale is expanded, CLC resellers will be prevented from com -peting in a meaningful way with the LECs. -\par \tab \tab We conclude that most existing resale restrictions should be removed on the services listed in Table 1 below effective March 31, 1996. We find the LECs' arguments in opposition to removal of resale restrictions to be based la -rgely on appeals for protecting the status quo with respect to LEC market share and profitability. These arguments constitute an untenable basis to refrain from implementing meaningful resale competition at this time. Resale restrictions p -roposed by the LECs must be removed if we are to achieve our goal to promote a viably competitive resale market. We do not believe that the removal of resale restrictions as adopted in this decision is unfair to Pacific and GTEC even though - it necessarily subjects them to new risks as well as new opportunities of a competitive marketplace. Moreover, we are also conducting hearings regarding the impacts of our adopted rules on the "franchise" of the incumbent LECs and on their - ability to earn a return on investment. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ***** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ***** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \tab We shall direct the LECs to offer their residential 1FR and 1MR service f -or resale. While the LECs do not object to CLCs reselling to residential customers, they would restrict resale to only the 1RL service which could be resold either to residential or business customers. We conclude that the adoption of the - LECs proposed restriction would effectively foreclose resale competition in the residential market. While the LECs would be able to offer residential customers a 1FR flat rate which offers customers unlimited local calling, CLC resellers w -ould be forced to pay retail usage charges for local calling under the LECs' proposal. CLC resellers would be placed at a significant disadvantage in profitably competing for 1FR customers. \tab -\par \tab \tab We agree with AT&T/MCI, certain current features of the LECs' wholesale offerings would be inferior to the LECs' retail offering. For example, Pacific's provisional wholesale custom calling tariff omits key vertical services -such as call waiting. Pacific witness Pitchford, however, indicated that Pacific was planning to make call waiting available to resellers. We direct Pacific to make call waiting, as well as all other vertical services missing from its curr -ent wholesale tariff, available to CLCs effective March 31, 1996. This will serve as a supplement to the seven custom calling services currently in Pacific's provisional Wholesale Custom Calling Services Tariff. The additional vertical fea -tures will be priced to at least reflect the 17% and 12% discounts off the retail rates as adopted in this Decision. We also direct the LECs to make intraLATA toll service available for resale. -\par \tab \tab Pacific indicated that its billing system cannot accommodate the resale of its optional calling plans for toll service because the billing system used to bill resellers cannot apply the applicable individual end\_user discount -s. GTEC stated that its billing system has similar limitations. Consequently, -\par \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 as an interim measure, we shall direct Pacific and GTEC to offer its toll service for resale on a bulk basis subject to a discount off the DDD tariff rate. The discoun -ted rate for residence customers will be the average price residence customers pay Pacific (less avoided costs). The discounted rate for business customers will be the weighted average rate for business customers (less the 17% and 12% avoid -ed costs). Pacific and GTEC shall provide the necessary usage and revenue data to CACD to enable CACD to calculate the appropriate discounts off the DDD tariff rates. -\par \tab \tab We shall further direct Pacific and GTEC to implement the necessary modifications to their billing systems to make their optional calling plans available to CLC resellers within six months from the effective date of this order -. Accordingly, by September 1, 1996, Pacific and GTEC shall file an amendment to their wholesale tariffs making available their optional calling plans to resellers. The calling plans shall be offered at wholesale rates which apply the avoi -ded cost discount which we adopt below to the existing LEC retail calling plan rates. -\par \tab \tab We agree that CLC resellers should not be permitted to resell Pacific's and GTEC's optional business calling plans to residential customers at this time. The business calling plans are designed to compete with IECs' high\_vol -ume calling plans sold to businesses and are not available to residential customers. We shall examine in Phase III of this proceeding the basis for continuing resale restrictions on the LEC's toll calling plans for business customers. -\par \tab \tab While we are generally supportive of lifting resale restrictions where it will promote a competitive marketplace, we recognize that some remaining restrictions are appropriate with respect to use and user as well as the range -of services subject to resale, as discussed below. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart \tab With respect to Centrex and Centranet, we conclude that certain issues need further examination before we authorize CLC resale of the -se services other than at tariff rates. We agree with Pacific that Centrex should be resold only as a business system to single businesses and not as a network infrastructure, toll aggregation tool that undermines the federal law on presubs -cription timing. (Section\~271(e)(2) of the Telecommunications Act of 1996 provides that intraLATA presubscription await Pacific's entry into the interLATA market.) The balance set by the law would be upset if CLCs could give their custome -rs presubscription through Centrex sale. It would be inappropriate to use resale of Centrex as a tool to aggregate toll from unrelated end users. We shall consider in Phase III of this proceeding what changes to the Centrex and Centranet r -etail services may be necessary to make them appropriate for competitive resale by CLCs. We shall consider imposing appropriate use and user restrictions limiting Centrex and Centranet to resale as business systems in place of premises base -d equipment (i.e., PBX). -\par \tab \tab Private lines are already available for resale under the LECs' existing tariffs. Accordingly, as an interim measure, we will make no change in the existing private line tariff. CLCs may purchase private lines for resale at e -xisting tariff rates. -\par \tab \tab Customer owned pay telephone (COPT) lines are already sold to COPT providers, not to end users as a retail service, and are already essentially a wholesale service. Accordingly, since COPT is very similar to a wholesale servi -ce, it logically follows that there are no avoided retail costs associated with the marketing of COPT. To adopt an avoided cost discount for COPT service would simply enable all COPT providers to avoid paying current tariff COPT rates by ob -taining CLC certification. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1200 \margbsxn1440 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart Accordingly, we shall not apply any avoided cost discount for purposes of determining CLC wholesale rates applicable to COPT. We will, how -ever, permit CLC resellers to purchase COPT service at existing tariff COPT rates. -\par \tab \tab We shall also defer to Phase III consideration of whether to authorize CLC resale of semipublic service. Outstanding issues must be resolved regarding how resale of this service would be structured and how the responsibility -for phone maintenance, coin collection, and related matters would be treated between the LEC and CLC. Questions must also be addressed regarding the potential opportunities for arbitrage of seimpublic service. Another issue involves the im -plications of the FCC's exclusion of semipublic service pay telephone sets from the definition of customer premises equipment as discussed in Pacific's comments to the proposed ALJ decision. -\par \tab \tab While we find no reason to restrict CLCs' ability to resell ISDN, we shall not at this time apply an avoided cost discount to ISDN because ISDN costs will be considered in the application of Pacific to increase ISDN rates (A.9 -5\_12\_043) and we have not yet acted on the Application. In contrast to residential tariffs, there are not as many offsetting revenue sources to compensate the LECS for ISDN. Accordingly we shall authorize as an interim measure CLC resale - of ISDN service with the wholesale rate set equal to retail rates. We shall reevaluate this interim approach including the determination of a wholesale rate once we have resolved A.95\_12\_043. -\par \tab \tab We shall also not require the LECs to offer grandfathered services for resale except in the case of customers who currently receive grandfathered service from the LEC. We shall lift the restriction on CLC resale of grandfathe -red services to those customers who currently receive such grandfathered service from the LEC. Lifting this restriction will enhance the ability of CLCs to compete for customers with grandfathered services. Pacific points out that in addit -ion to grandfathered private lines, it also has grandfathered vertical services. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn960 \margbsxn960 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart \tab To prevent arbitrage, we will continue the LECs' current use and user restrictions on the sale of residential access lines. We find -no valid reason why resale restrictions should be maintained on the other services listed in Table 1 below. Lifting resale restrictions on these services will enhance competition. Accordingly, we direct the LECs to amend their proposed who -lesale tariffs to conform as closely as possible to the LEC retail offerings currently available for all services listed in Table 1 below: -\par \pgnstarts1 \pgnrestart \sect \sbknone \pgncont -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \qc -\ul TABLE 1\ulnone -\par \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \qc \ul Category II Services Subject to Resale\ulnone -\par \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 -\par \pgnstarts1 \pgnrestart \sect \sbknone \pgncont -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \pard \li0 \ri2448 \fi0 \ql \sl240 \slmult1 \tx864 -\tx1440 \tx2016 \hyphpar1 \tab * Residential 1FR and 1MR service -\par -\par \tab * 1MB -\par -\par \tab * Local usage, ZUM, and EAS -\par -\par \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \tab * All vertical features (except for grandfathered services) -\par -\par \tab * Customer\_owned Pay Telephone (COPT) line and features -\par -\par \tab * Centrex/CentraNet\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Current use and user restrictions shall remain in place pending further examination in Phase III of the proceeding. -\par }} -\par \sect \sbknone \pgncont -{\footerr \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \up0 -\par -\par \tab *\tab ISDN, both PRI and BRI -\par -\par \tab * IntraLATA toll -\par -\par \tab * Private lines (except grandfathered services) -\par -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \hyphpar1 \tab \tab Pacific and GTEC have not justified adding additional charges for separate items such as usage and 411 calls, which are part of their retail basic exchange service. Accordingly, we direct the LECs to ame -nd their tariffs to include these items under the basic wholesale rates. This directive means that LECs are not to charge CLCs for local usage for wholesale 1FR service, and are to give a $3 local usage allowance for 1MR service. It also m -eans that CLCs are not charged for any type of 0\_calls or for any other services or functions which LECs provide to their own end\_users at no charge. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \tab We also note that neither Pacific nor GTEC has provided in their tariffs -for resellers to offer Universal Lifeline Telephone Service (ULTS). Accordingly, we shall authorize CLC resellers to receive reimbursement from the ULTS fund for the ULTS service they provide to qualified end users. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \b 3. \ul Adopted Wholesale Rates\ulnone -\par \tab \tab \b0 We next address the quantification of wholesale rates. In the absence of OANAD cost studies, we conclude that the existing retail rates provide a useful starting point to determine interim wholesale rates for local exchan -ge service. We find however GTEC's proposed wholesale rate which exceeds it retail rate to be unreasonably high. GTEC has failed to provide any evidence as to what LRIC is embedded within its rate or whether the implied contribution above -LRIC is reasonable. GTEC's proposal to include an additional contribution from anticipated losses in intraLATA toll revenues is contrary to our goal of setting wholesale rates only at the cost of providing the service. An increase in GTEC' -s interim wholesale rate is not the proper remedy to address any lost opportunity to generate intraLATA toll revenues. In the franchise impacts hearings phase of this proceeding, we are already separately addressing issues related to possib -le diminution in the LECs' opportunity to earn a fair return as a result of local exchange competition. -\par \tab \tab We conclude, however, that while retail rates are a useful starting point, simply setting wholesale rates equal to the LECs' retail rate will unfairly overcompensate the LECs and undermine the viability of CLC resale competiti -on. We are persuaded that there are differences in the cost of providing retail versus wholesale local exchange service. Accordingly, adopted wholesale rates should account for differences between wholesale and retail costs. Failure to ad -just for avoided retail costs (such as end\_user billing, marketing, and customer service expenses) in adopting wholesale rates could result in overstating the true wholesale cost of service and undercutting the ability of resellers to recov -er a sufficient retail mark up to allow for a -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart viable resale market. On the other hand, if the adjustment for avoided retail costs is too large, the LECs will not be compensated for the -ir true costs. Moreover, facilities\_based CLCs could be placed at a competitive disadvantage in pricing their retail service if CLC resellers are able to purchase wholesale local exchange service below its cost. -\par \tab \tab The only parties to present quantifiable evidence regarding the magnitude of avoided retailing costs were AT&T/MCI through witness Lee Selwyn. However, parties' critique of Selwyn's methodology focuses on some key areas which - we feel warrant examination, and we are not willing to adopt AT&T's proposal without modification. In the following section, we discuss the four major areas where we found AT&T's methodology to be flawed, and conclude with a description of - how we have adjusted Selwyn's proposal to take those flaws into account in our own estimate of avoided retailing costs. -\par \tab \tab First, AT&T's model allocates 100% of uncollectible expenses to retail based on the assumption that any uncollectible expense is totally avoided at the wholesale level. On cross\_ examination, AT&T's witness Selwyn indicated -that uncollectibles at the wholesale level would be nothing like those experienced at the retail level and therefore his assumption of zero was reasonable. (Tr. p. 2914.) In further cross\_examination, Selwyn indicated that he was not fami -liar with Sonic Communications, Inc. While Selwyn may not be familiar with the name Sonic, our recent experience with Sonic and our recognition of the millions of dollars that company owed Pacific and GTEC when it went bankrupt are all too -clear in our minds. We therefore cannot accept the assumption of zero uncollectibles at the wholesale level and have modified the model accordingly. -\par \tab \tab A second change comes in determining an allocation factor for marketing and customer services. During cross\_examination, a number of parties questioned Selwyn on various subaccounts which did not appear to support his analys -is which was done at the aggregate account level. A key area of discussion centered around -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 the Marketing and Customer Services expense category, which Selwyn allocated 100% to retail activities. -\par \tab \tab Parties pointed to selected examples of individual accounts under Marketing and Customer Services which do not appear to be related exclusively to retail functions. One of those accounts allocated 100% to retailing was Accoun -t 32.6622 Number Services. This category includes both paper directories and 411 directory assistance, both of which will be part of the access line package resellers buy at wholesale from the LECs. Thus, those expenses are not exclusively - retail in nature. A second category we found troublesome was 32.6623 Customer Services, which includes costs incurred in establishing and servicing customer accounts as well as billing and collection services performed on behalf of interex -change carriers. The latter is clearly only a wholesale service, while the former must include some wholesale components as well. We find merit to the argument that there will be some expense involved in dealing with CLC customers. While -Selwyn decried the need to look at subaccounts and pointed out there would be offsetting adjustments in the other categories, that argument is not convincing when 100% of the costs associated with Marketing and Customer Services are allocate -d to retail service. Therefore, we have adjusted the allocation factor for the Marketing and Customer Services category to reflect that some of the expenses are wholesale in nature. -\par \tab \tab Our third adjustment comes in the category of maintenance expense which Selwyn treated the same as depreciation expenses. Our analysis led us to determine that maintenance should be treated the same as the marketing, uncollec -tible and support categories so it was combined with those categories and a single allocation factor developed for the entire group. In its comments to the proposed ALJ decision, Pacific stated that maintenance and support expenses are not -avoided in the offering of wholesale service. However, we are not persuaded by Pacific's argument. AT&T's Reply Comments have convinced us that some maintenance and support expenses are avoided. AT&T reiterates Dr. Selwyn's testimony that - indeed some maintenance and support expenses are avoided by wholesale pricing. -\par \tab \tab The final adjustment relates to overhead expenses. Selwyn excluded overheads from his development of the allocation factors, which we do not find to be appropriate. Our analysis includes overheads in the development of all o -ur allocation factors. -\par \tab \tab Parties' criticisms and our own analysis confirm that Selwyn's methodology is an imprecise approximation. Yet, while imprecise, Selwyn's approach affords us a starting point to determine a reasonable approximation of avoided -retail costs. Based on our analysis of the Uncollectible and Marketing and Customer Service categories, we determined that they did not warrant being allocated totally to LECs' retailing functions. Instead, we grouped those two categories -with the category "Support Expenses" (which in Selwyn's model was allocated partly to retail and partly to wholesale expense). We also included maintenance and overheads and developed a single allocation factor for the combined group. The -change in allocation factors results in changes in the overall percentage discounts which represent avoided retailing expenses. For Pacific, the percentage drops from AT&T's proposed percentage of 28% to 17%. For GTEC, the percentage drops - from 24% to 12%.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 The revised calculation of the avoided cost percentages for Pacific Bell and GTEC is set forth in Appendices B and C. -\par }}\up0 -\par \tab \tab We shall adopt wholesale rates for Pacific and GTEC which generally incorporate avoided retail costs based on this refinement -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart of the methodology proposed by AT&T. These rates will be used in the interim until we have data from the OANAD proceeding to establish app -ropriate wholesale rates. We shall not apply the 17% and 12% discounts to residential rates or rates for certain other services, as discussed below. -\par \tab \tab Our approach addresses concerns raised by Sprint, TCG, TW, CCTA and MFS that setting LEC resale rates at large wholesale discounts below actual costs would give CLC resellers an unfair advantage and discourage investment by -facilities\_based CLCs. Our reformulation of the AT&T/MCI model reduces the margin between wholesale and retail to better reflect avoided retailing costs which should help to spur development of competing networks. At the same time, we fin -d that the wholesale/retail margins we are adopting are adequate to provide a viable marketing opportunity for CLC resellers, while still allowing LECs the opportunity to cover their wholesale costs. -\par \tab \tab Following are the adopted 1MB wholesale rates for the two companies, derived by applying a 17% discount for Pacific and a 12% discount for GTEC to the 1MB retail rate: -\par \pgnstarts1 \pgnrestart \sect \sbknone \pgncont -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \qc -\ul Retail/Wholesale Rate Comparison for Pacific and GTEC\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 -\par 1MB Adopted 1MB -\par \tab \tab \tab \ul Retail\ulnone \ul Wholesale \ulnone -\par -\par \tab Pacific $10.32 $8.57 -\par \tab GTEC 19.22 16.91 -\par -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 -\tx2016 \hyphpar1 \tab The LECs are directed to apply the above adopted percentage discounts of avoided costs to develop wholesale rates for 1MB, local usage, ZUM, EAS, vertical services for features not covered under existing wholesale tar -iffs and intraLATA toll. As discussed above, COPT, Centrex/CentraNet, private line and ISDN shall be priced at existing retail rates. Vertical features covered under existing wholesale tariffs will continue to be priced at existing wholesa -le tariff rates. Directory assistance and other operator services are not subject to the avoided cost discounts at this time. -\par \tab \tab We shall direct the LECs to establish a separate wholesale tariff rate for residential retail rates for both flat -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1200 \margbsxn1200 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart (1FR) and measured service (1MR). Until the conclusion of cost studies in OANAD, we will not have definitive data concerning whether exist -ing residential rates are priced below TSLRIC. Yet, we did find in D.94\_09\_065 that the residential rates we adopted in that decision were already below the LECs reported direct embedded costs. Accordingly, while we decline to apply the -full 17% and 12% discounts to the LECs' 1FR and 1MR retail rates, we still conclude that at least some discount off residential retail rates is needed to spur resale competition in the residential market. Accordingly, we will apply a 10% di -scount for for Pacific and a 7% discount for GTEC in setting wholesale 1FR and 1MR rates. We believe the 10% and 7% discounts are a conservative measure of retail costs which the LECs avoid in providing residential service. Since the LECs -will avoid these costs at the wholesale level, the net effect on the LECs of applying these discounts to residential retail rates should be zero. Our adopted residential discounts are a temporary expedient and will likely change, if the OAN -AD cost studies reveal that residential rates are priced below LRIC. Additionally, the Universal Service proceeding's disposition of rate and subsidy issues may affect the discount. Our adoption of the 10% and 7% residential discounts will - in the meantime help promote resale competitions in the residential sector. To prevent arbitrage, we will continue the LECs' current use and user restrictions on the sale of residential access lines to business customers. -\par \tab \tab We reject the LECs' arguments that pricing wholesale residential service equal to the 1FR and 1MR retail rates would constitute unlawful confiscation or unfair compensation. Pacific's claims regarding its compensation levels -for residential service (Nugent/Exh. 81/Table 2) ignore revenue which it receives from various sources and which subsidizes residential customers. Until OANAD cost studies are finalized, we will not have a complete record of the TSLRIC of r -esidential service. Moreover, in considering whether Pacific and GTEC will be adequately compensated under the adopted wholesale residential rates, it is appropriate to consider all of the revenues which the LECs receive associated with res -elling residential service, not just the revenues from the basic -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart access line, itself. This complete revenue package includes intraLATA toll, switched access from IECs, and vertical features. In addition - to the monthly rate for local exchange service, residential subscribers also pay a federally mandated end\_user common line (EUCL) charge. Pacific's current EUCL is $4.61 for multi\_line business customers and $3.50 for single line buiness - customers. GTEC's business customers pay $6.00. We believe that the LECs will continue to receive these revenues in a resale environment. -\par \tab \tab The EUCL charge reflects the Federal Communications Commission's (FCC) determination of the interstate portion of nontraffic sensitive (NTS) costs that should be collected from the basic exchange subscriber. Because the LECs' - costs to provide basic exchange service include the costs of interstate access, a failure to account for the EUCL charge in setting rates would overcompensate the LEC for the cost of providing service. Given that LECs will continue to rece -ive the EUCL either directly from end users when the LECs bill on behalf of resellers, or indirectly from end users through resellers if resellers do their own billing, the EUCL must be taken into account when computing the revenues the LECs - will receive from resold local exchange service. Pacific indicates that it will begin billing CLCs directly for the EUCL once it receives FCC approval. Thus, the LECs will likely have these and other revenue sources to offset any claimed -shortfall in residential revenues. -\par \tab \tab Moreover, the LECs have been given an opportunity to address the potential impacts of our overall regulatory program for local exchange competition in the franchise impacts phase of this proceeding. The wholesale rates we est -ablished in this decision are only one part of our overall regulatory program. Whether a wholesale rate is so low that it is confiscatory depends on whether the utility has the opportunity to earn a fair return. "Rates which enable the com -pany to operate successfully, to maintain its financial integrity, to attract capital, and to compensate its -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1200 \margbsxn1440 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart investors for the risks assumed certainly cannot be condemned as invalid. ..." (\ul Federal Power Commission v. Hope Natural Gas\ulnone ( -1943) 320 U.S. 591, 602.) The question of whether the overall regulatory program provides the LEC an opportunity to earn a fair return will be addressed in the franchise impacts phase of this proceeding. -\par \tab \tab We consider the adopted wholesale rates to be consistent with the pricing principles established in IRD. In D.95\_07\_054, we asked for comment on the following statement: "If the Commission considers Pacific's and GTEC's ba -sic service a monopoly building block and concludes that presently there are no competitive elements in basic service, then the price of basic service must equal the tariffed rate element of the monopoly building block, the actual price for -service." We agree with AT&T/MCI that the relevant monopoly building block is the underlying wholesale distribution, switching, and transport service. Accordingly, the wholesale price can be lower than the retail price of basic service to -the extent the latter includes avoidable retailing costs. -\par \tab \tab In addition to the monthly recurring charges applicable to wholesale service, the LECs will incur one\_time costs when a LEC customer transfers to a CLC reseller. These nonrecurring costs relate to the administrative work inv -olved in transferring a customer's account from the LEC's billing and accounting system to that of the CLC reseller. In their proposed wholesale tariffs, neither Pacific or GTEC indicated what they proposed for nonrecurring charges related -to the transfer of a LEC customer to a CLC reseller. -\par \tab \tab As an interim measure, we shall limit the amount that LECs may impose as a nonrecurring charge to the existing retail tariff charges applicable to the transfer of a customer account who remains at the same service location, le -ss avoided retailing costs. These rates are found in Pacific's tariff schedule Cal PUC No. A3, Network and Exchange Services, and in GTEC's tariff schedule Cal PUC No. A\_41, Service Connection, Move, and Change Charges. We find that these - charges are the best interim proxies for the nonrecurring charges applicable to switching customers from LECs to CLC resellers. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1200 \margbsxn1440 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} \_ -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} \_ -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \tab For Pacific, the applicable charges to be used from this tariff is the "Supersedure Charge" of $5 per residential account and $7 per account for all other se -rvices. For GTEC, the applicable charges to be used from its tariff are $17.50 for residential accounts and $34.50 for all accounts other than residential. These charges are derived from the section of the GTEC tariff labeled "Service Ord -er Activity: Subsequent Order." These charges are lower than GTEC's initial order charges of $23 per residential account and $49.57 for business accounts. In the interests of avoiding prohibitively high nonrecurring charges which may tend -to inhibit competition, we shall direct GTEC to use the lower "subsequent order" charges as an interim proxy for setting nonrecurring charges. -\par \tab \tab Consistent with our methodology for applying avoided cost discounts to wholesale services, we shall also apply the 17% discount for Pacific and a 12% discount for GTEC to the retail nonrecurring charges referenced above. -We shall examine in Phase\~III of this proceeding what appropriate nonrecurring charges should be imposed prospectively related to the transfer of a LEC customer account to a CLC reseller. -\par -\par \qc \b IV. \ul Retail Pricing Flexibility\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\par A. \ul Overview\ulnone -\par \tab \tab \b0 In D.89\_10\_031, we placed LEC services into three categories based primarily on the degree of market power that the LECs possess for each service. As the degree of market power diminishes from Category I (monopoly servi -ces) to Category II (partially competitive or discretionary services) to Category III (fully competitive services), the extent of pricing flexibility available to the LECs increases. -\par \tab \tab In D.95\_07\_054, we adopted initial rules for the retail pricing of local exchange service by CLCs. The adopted rules allowed CLCs more pricing flexibility than was allowed Pacific and GTEC. In response to LECs' claims that - they should be allowed the same pricing flexibility as the CLCs, D.95\_07\_054 ordered -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pgnstarts1 \pgnrestart evidentiary hearings to determine how much LEC pricing flexibility is appropriate given the advent of local exchange competition. -\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 D.95\_07\_054, mimeo, pp. 34, 41, 42. -\par }}\up0 The ALJ Ruling of August 18, 1995, clarified the scope of pricing flexibility issues to be addressed in Phase II evidentiary hearings. Specifically, the ALJ Ruling stated that parties' testimony should address the principles a -nd framework which should apply to LEC pricing flexibility; propose pricing mechanisms that permit interim pricing flexibility without cost studies; and present proposals regarding how subsequent pricing flexibility could be implemented and -coordinated with the cost studies being developed in the OANAD docket.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 ALJ Ruling of August 18, 1995, p. 9. -\par }}\up0 -\par \tab \b 1.\tab \ul Parties' Positions\ulnone -\par \ul Pacific and GTEC\ulnone -\par \tab \tab \b0 The LECs argue that in order to have effective competition, the LECs must be able to compete on the same terms and conditions granted to the CLCs. The LECs claim that if they are unable to mount a competitive response to -the CLCs, consumers will not obtain the best prices or the widest array of services that they could otherwise. For example, Pacific states if the LECs are the low cost producers, consumers may still be unable to buy services at the lowest c -ost because of the pricing restrictions placed on the LECs. The LECs further argue that handicapping them is not in the public interest because it blocks the normal functioning of the market through artificial government intervention, resul -ting in lower economic efficiency and fewer consumer benefits. -\par \tab \tab The LECs state that in the past, the Commission has not relied upon market power as the test for granting the LECs pricing flexibility. Instead, the LECs state that the Commission previously granted the LECs pricing flexibili -ty when markets were opened to competition. For instance, the LECs state that in D.88\_09\_059, when competition was authorized for high speed private line service, the Commission simultaneously granted the LECs pricing flexibility by movin -g this service from Category I to II. Similarly, in D.94\_09\_065, when the Commission authorized -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 competition for intraLATA toll, low speed private line, Centrex, and operator services, the Commission also allowed the LECs pricing flexibility by reclassifying t -hese services to Category\~II. Even if the Commission believes that a market power test should be used to determine pricing flexibility, Pacific and GTEC claim that they do not possess market power\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Various definitions of market power were put forth by the parties. AT&T's witness Dr. Mayo defined market power as "the ability of a firm to control prices t -o exclude competition." (Ex.\~30, p. 7.) MCI's Dr. Cornell defined market power as "the ability by a firm to raise prices above competitive level prices...and sustain that price increase for some nontransitory period of time." (9 RT 1409. -) GTEC's Mr. Wilks defined market power as "the ability to restrict the entrance of new providers based solely upon GTEC's presence." (Ex. 34, p. 31.) -\par }}\up0 sufficient to deter entry by CLCs into the local market. Even if the LECs do possess market power, GTEC states there is no evidence that it will hinder the development of competition. -\par \tab \tab According to the LECs, several factors demonstrate their lack of market power. First, the LECs already face competition in existing competitive markets such as intraLATA toll. The LECs believe they will face equally stiff co -mpetition in the local exchange market. Second, the LECs believe that the sheer number of petitioners seeking to offer local exchange service (66 as of September 1, 1995) demonstrates that local exchange competition will be immediate and ro -bust. Third, the LECs note that among the new entrants are large, well\_financed competitors with great expertise in the telecommunications industry, such as AT&T, MCI, and Sprint. The LECs believe that the presence of these large and skil -led competitors assures vigorous competition. Finally, the LECs state their competitors will enjoy a significant competitive advantage in their ability to bundle all telecommunications services to create valuable packages for customers -\_ -something the LECs cannot do because of their lack of interLATA authority. -\par \tab \tab The LECs also argue that they lack market power because there are no significant barriers to entry. According to the LECs, the only barrier to entry was removed when the Commission allowed facilities\_based competition to beg -in on January 1, 1996, and resale competition to commence on March 1, 1996. In addition, GTEC states that even if some entry barriers remain, they will either be removed or diminished significantly by the rules issued in this proceeding. G -TEC states that the new rules for interconnection, unbundling, resale, interim number portability, E\_911, and ancillary LEC services adopted in this proceeding will restructure the local exchange market, facilitate market entry, and further - reduce the LECs' market power. -\par \tab \tab The LECs deny that competition will develop only slowly. Both LECs cite the 66 CLC petitions as evidence that competitors are poised to grab market share from the LECs. GTEC adds that it tried, but was unable, to discover fr -om the Coalition evidence about the level of competition GTEC will face. GTEC thus believes there is no evidence that CLCs will not immediately and vigorously pursue the local exchange market. -\par \tab \tab GTEC argues that the LECs will have little opportunity or incentive to abuse their diminishing market power. GTEC believes the facilities\_based CLCs will provide many substitute capabilities, and any abuse by the LECs will c -ause customers to abandon the LECs for the CLCs. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \ul \b Citizens\ulnone \b0 -\par \tab \tab Citizens believes that the LECs possess market power by virtue of their control over essential facilities. In recognition of the LECs' market power, Citizens recommends that a LEC should only be allowed pricing flexibility wi -thin defined geographic areas and on a service by service basis, and only if the following conditions are met. First, the LEC removes a key barrier to entry by providing nondiscriminatory interconnection to essential inputs. Second, an aut -horized competitor enters a defined geographic area of the incumbent LEC's territory to provide a comparable competitive service. Finally, the competitor is not solely reselling a bundled LEC offering. -\par \tab \tab Citizens disagrees with the Coalition's recommendation that the LECs be denied pricing flexibility until the incumbent LECs have met criteria beyond those recommended by Citizens. Citizens believes that withholding pricing fl -exibility from the incumbent LECs would give the LECs little incentive to freely open their facilities and market to competitors. Citizens believes that as long as an incumbent LEC demonstrates that it has opened its facilities to competito -rs on a nondiscriminatory basis, the Commission should allow the LEC the flexibility necessary to compete for services in those geographic areas where the LEC faces competition. -\par \ul \b Coalition\ulnone -\par \tab \tab \b0 The Coalition believes that the LECs possess overwhelming market power for local exchange services, and that the LECs' market power will not be seriously eroded by the entry of CLCs. -\par \tab \tab The Coalition presents a long list of items which it believes demonstrates that the LECs possess tremendous market power protected by various barriers to competition. Among the items on the Coalition's list are the following: - -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \hyphpar1 \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx1440 \tx2016 \hyphpar1 1 -.\tab The LECs have nearly 100% of the market for local exchange services; -\par -\par \tab 2.\tab The absence of true number portability results in CLC customers being charged to retain their existing number(s) and being unable to obtain CLASS features if they keep their existing number; -\par -\par \tab 3.\tab The lack of CLC access to LEC data bases including SS7 signaling; -\par -\par \tab 4.\tab The lack of CLC access to numbering resources, enabling the LECs to be the only competitor able to easily offer personalized telephone number service; -\par -\par \tab 5.\tab The lack of interconnection arrangements; -\par -\par \tab 6.\tab The existence of resale restrictions; -\par -\par \tab 7.\tab LECs are the only competitors with access to existing rights of way and conduits; -\par -\par \tab 8.\tab LECs are the only competitors with the ability to offer 1+ intraLATA toll service; -\par -\par \tab 9.\tab LECs are the only competitors with ubiquitous networks capable of serving every customer in their service territories; -\par -\par 10.\tab LECs are the only competitors with an established relationship with each customer and historical information regarding customer usage; -\par -\par 11.\tab The markedly greater expense associated with winning customers relative to the cost associated with customer retention; -\par -\par 12.\tab LECs may submit "express contracts" to the Commission which are automatically approved in 14 days while IEC competitors in the interLATA market must wait 40 days for approval of their contracts; and -\par -\par 13.\tab The substantial time it will take for CLCs to build ubiquitous facilities throughout California, leaving many LEC customers without competitive alternatives for years to come. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li2016 \ri2448 \fi-2016 \ql \sl240 -\slmult1 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx1440 \tx2016 \hyphpar1 -\par \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \tab To promote the development of competition, the Coalition recommends that the Commission: (1) eliminate barriers to entry; (2) identify services subject to effective competition a -nd significant market power, and (3) adopt efficient pricing for inputs that are subject to monopoly power which are sold to downstream competitors. The Coalition identifies four specific barriers to entry that must be removed before compet -ition will be able to develop: (1) the absence of true number portability; (2)\~the absence of access to LEC data bases including SS7 signaling; (3) the absence of access to numbering resources; and (4) the lack of interconnection arrangeme -nts. To protect competition, the Coalition recommends four polices: (1) removal of resale restrictions, (2) unbundling, (3) imputation, and (4)\~design of nondiscriminatory interconnection rules. -\par \tab The Coalition states that CLCs should be subject to fewer regulations than LECs because the CLCs lack market power in the local exchange market. Because the CLCs lack market power, the Coalition believes that the market will effec -tively discipline CLCs' behavior. For example, the Coalition states a CLC cannot obtain customers unless its rates are lower and/or its service is better than the LEC's. Thus, Commission regulation is unnecessary to ensure that CLCs' rates - are not excessive. Because CLCs lack market power, the Coalition believes that additional regulation would impose costs without any offsetting public policy benefits, and create an unnecessary barrier to entry. -\par \tab The Coalition cites several Commission precedents of tailoring regulation to a level commensurate with (but inversely proportional to) the degree of market power a utility possesses. \tab The Coalition recommends that until there -is solid evidence that competition for Category I services has taken hold, the LECs must not be granted any additional regulatory flexibility for these services. Otherwise, the Coalition believes that the LECs will use their market power an -d new\_found regulatory flexibility to impede the development of local competition. -\par \ul \b DRA\ulnone -\par \tab \b0 Given the CLCs' nondominant status, DRA believes that no public interest would be served by imposing the same pricing regulations on the CLCs that are presently on (and appropriate for) the LECs. DRA believes that CLCs will ha -ve no market power at the start of local competition due to their almost complete lack of market share. DRA believes that CLCs will have difficulty capturing market share and eroding the LECs' market power as long as barriers to competition - remain, including: absence of true number portability; lack of CLC access to LEC data bases, including SS7 signalling; lack of CLC access to numbering resources; and lack of interconnection arrangements. Conversely, DRA believes that the - LECs will initially have substantial market power since they will have virtually the entire market for local services. -\par \tab DRA anticipates that competition will evolve only gradually. DRA believes that regulation of the LECs should steadily be relaxed as the market becomes more competitive. However, before ending the economic regulation of the LECs, -DRA recommends that the Commission make a formal finding that effective competition actually exists. According to DRA, the preconditions to an effectively competitive marketplace include intraLATA equal access and interLATA relief. In dete -rmining whether an effectively competitive marketplace actually exists, DRA recommends the Commission evaluate: (1) breadth of the relevant market; (2) LEC market share; (3) ease of market entry and exit; (4) ability of competitors to expan -d capacity and capture sales; (5) willingness of customers to switch providers; (6) price elasticity of demand; and (7) the percentage of customers for whom choice is available and the percentage that -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 have availed themselves of that choice. -\par \ul \b Other Parties\ulnone -\par \tab \b0 The Department of Defense & Federal Executive Agencies (FEA) agree with the Coalition and DRA that the LECs will retain significant market power over local exchange services for some time to come. FEA believes that the CLCs wi -ll have little market power and sees no need to regulate the prices charged by the CLCs other than requiring them to file tariffs. -\par \tab LDDS and The California Department of Consumers Affairs (DCA) believe that the LECs will face competition in some local areas, but that many customers will be reliant on the facilities of the LECs for many years to come, if not for -ever. -\par \tab MFS states that the LECs will continue to control bottleneck monopoly facilities, and that the Commission must assure that CLCs have access to these facilities on the same basis as the LECs themselves if local exchange competition -is to develop. Accordingly, MFS sees Commission involvement as essential to the development of local exchange competition. MFS believes that the key to the development of real competition is the building of competing local exchange network -s, and that the Commission should avoid any action which would impede investment in competing local exchange networks. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \b 2.\tab \ul Discussion\ulnone -\par \tab \tab \b0 Our adopted rules for pricing flexibility are both responsive to and influential upon competition. Our goal is to establish an environment conducive to the development of an economically efficient marketplace. The rules -should promote a level playing field within which economically efficient decisions will be rewarded through the workings of a competitive marketplace. -\par \tab \tab A threshold issue to resolve is the standard of proof which must be met in order to find that the local exchange market -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 is sufficiently competitive to justify additional pricing flexibility for the LECs. We find th -at both the LECs and the Coalition offer unacceptably extreme standards by which to evaluate the issue of pricing flexibility. While the Coalition would have us grant the LECs no flexibility, the LECs believe we should immediately move its -local exchange services to Category\~II subject to immediate pricing flexiblity. GTEC advocates eliminating a wide range of regulatory restrictions on the LECs which are not applicable to CLCs. -\par \tab \tab While we find that varying degrees of competition can be expected in certain market segments within Pacific's and GTEC's service territory in the near term, we do not find evidence that Pacific and GTEC will automatically lose - their dominant market position overnight merely because CLCs have been granted certificates to enter the local exchange market. Yet, we do find evidence to indicate that CLCs are poised to aggressively compete with the LECs for a share of -their local exchange market to the extent remaining barriers permit. Accordingly, we shall grant limited additional pricing flexibility to the LECs effective March 31, 1996 in relation to the degree of competition we expect to materialize i -n the immediate future. It would be premature, however, to make sweeping changes in LEC pricing rules at this point before competition has become sufficiently developed. LEC pricing flexibility must be granted in progressive stages in prop -ortion to the responsiveness of the market to competition. Our adopted rules have laid the groundwork for CLCs to begin to compete, and we intend to monitor the progress of competition and continue to adjust our interim rules accordingly. -\par \tab \tab Since January 1, 1996, the legal entry restrictions have been removed with respect to facilities\_based offering of local exchange service by CLCs within the territories of Pacific and GTEC. Effective March 31, 1996, the lega -l restrictions on -\par entry for CLCs seeking to resell the LECs' basic exchange service will also be lifted. Thus, CLCs can compete either by resale or by offering service using their own facilities through interconnection to the LECs' network. While CLCs -will face different problems and opportunities depending on which of these options is used, there will be at least initial competitive inertia and handicaps to overcome under either approach. The listing of constraints cited by the Coalitio -n and enumerated above illustrate the fact that CLCs will not immediately be able to competitively penetrate LEC markets on a widespread basis. -\par \tab \tab While our adopted interim rules enable facilities\_based CLCs to arrange interconnection with the LEC network, it remains for the CLC to negotiate a successful interconnection arrangement and to build or acquire the facilities - to enable it to serve customers. The CLC will also remain at a competitive disadvantage with respect to access to LEC numbering resources. Particularly because of the scarcity of numbering resources within California, CLC access to number -ing resources in certain densely populated markets may be constrained. While we will soon adopt rules requiring the LECs to offer interim number portability to the CLCs, the interim number portability methods employed will still result in i -nferior service relative to the LECs in certain respects. Until permanent service provider number portability is implemented, facilities\_based CLCs will be at a competitive disadvantage in this respect. -\par \tab \tab Nonetheless, facilities\_based CLCs will also realize certain offsetting competitive advantages relative to the LECs. Facilities\_based CLCs will be able to define their service territories in a manner which offers the best p -rofit opportunities and will be able to compete in low cost areas against LECs and CLC resellers who are constrained by statewide average rates. -\par \tab \tab CLC resellers, however, will have certain inherent competitive advantages particularly in the near term over facilities\_based CLCs. CLC resellers will not be constrained by the need to build extensive facilities since they w -ill merely be reselling service provided by another carrier's facilities. Yet, they will still be largely dependent upon the LECs who will still control the facilities over which the resale service is provided. We have sought to establish -wholesale rates which will approximate costs of wholesale service. Because of the uncertainty over the true costs of wholesale service (to be determined in OANAD), the ability of CLC resellers to obtain a significant share of the local exch -ange market remains to be seen. -\par \tab \tab While we recognize that certain CLCs represent large entities which are national or international in scope, we must focus our analysis on the competitiveness of the local exchange markets within the service territories of Paci -fic and GTEC. We believe that the access to capital, the ability to bundle toll, long distance and local services, as well as the skilled telecommunications expertise of such large entities will be significant factors in those CLCs' abilit -y to penetrate the LECs' markets. Nonetheless, it will still take some time for this process of market penetration to occur. Moreover, large IECs will be constrained from the joint marketing of long distance and local service, as provided -in the recently enacted Federal Telecommunications Act. -\par \tab \tab As discussed in further detail below, we conclude that the presence of CLCs poised to enter the market already creates sufficient basis to provide some additional regulatory flexibility to the LECs immediately in certain respe -cts. We also conclude that further pricing flexibility will be appropriate once critical threshold events occur, as we discuss below. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \tab One of the key factors to be considered in granting future pricing flexibility is the extent to which competition develops and customers throughout California have a real choice in -selecting a local provider. While it is clear that the local exchange market is not sufficiently competitive to lift all pricing restrictions presently imposed on the LECs, it remains to be determined exactly what threshold should be used t -o determine when competition is sufficiently robust to eliminate the need for remaining restrictions. -\par \tab \tab We appreciate that the measurement of market power is a difficult matter, and parties have not provided sufficiently detailed proposals to develop a definitive process for determining market power or translating it into specif -ic pricing policies. Accordingly, while we find the list of criteria offered by the Coalition and DRA a useful starting point to evaluate the progress of competition, further development is needed to produce and implement a means of evaluat -ing changes in the LECs' market power. Accordingly at this time, we will not adopt any specific value for market share losses or other measures as definitive evidence of a competitive market. We find the proposed 15% market share loss stan -dard to be too arbitrary for use in determining whether to grant additional pricing flexibility. We will consider in Phase III of this proceeding the development of more specific benchmark criteria for finding that a competitive market exis -ts. -\par \tab \tab We conclude, however, that certain pricing flexibility measures can be implemented effective March 31, 1996 while additional flexibility can be implemented following adoption of appropriate costing/pricing studies. We conside -r below proposals for specific forms of pricing flexibility and discuss the outcomes we are adopting. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \b B. \ul Recategorization of Category I Services to Category II\ulnone -\par \tab 1. \ul Parties' Positions\ulnone -\par \ul Pacific and GTEC\ulnone -\par \tab \tab \b0 Pacific and GTEC recommend that all Category I services for which competition is permitted be immediately moved to Category II or be accorded the same pricing flexibility as services presently in Category II. Pacific and -GTEC believe this would be consistent with several Commission decisions, including D.94\_09\_065 where the Commission moved newly competitive services, such as toll and Centrex, from Category I to Category\~II. Pacific and GTEC state that C -ategory II pricing flexibility is justified by the competitive threat they face as evidenced by the 66 CLC petitions filed thus far.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 In its opening brief, GTEC references material regarding the level of competition faced by the LECs that was stricken from the record by the ALJ during eviden -tiary hearings. Use of the stricken material is completely inappropriate and may constitute a violation of Rule 1 of the Commission's Rules of Practice and Procedure. We will disregard the stricken material since it has no evidentiary valu -e. -\par -\par A motion to strike portions of GTEC's opening and reply briefs was filed on January 23, 1996, by the Coalition on the basis that GTEC's briefs improperly cite documents and other information which were not admitted into evidence, a -nd therefore, not part of the record in this case. None of the portions of GTEC's briefs which have been cited in the motion to strike have been relied upon as a basis for this decision. Before a ruling on the motion to strike, however, GT -EC and other parties will have an opportunity to file a reply to the motion. -\par -\par }}\up0 Furthermore, Pacific and GTEC believe that Category II pricing flexibility will enable them to lower prices and bring the benefits of competition to California. Pacific adds that if the LECs are not granted pricing flexibili -ty, price umbrellas will result which will harm consumers. Pacific states that Category\~II pricing flexibility will not harm competition since cost\_based Category II price floors prevent LECs from pricing below cost, and Category II price - caps prevent LECs from charging monopoly prices. -\par \tab \tab Pacific states that services moved from Category I to Category II would initially have no price floors, but that the price floors could be developed in the OANAD proceeding and put into place during the second quarter of 1996. - GTEC, on the other hand, asks that the Commission's review and approval process of price floors not delay the granting of pricing flexibility on an expeditious basis. -\par \ul \b Citizens\ulnone -\par \tab \tab \b0 Citizens recommends that LECs be allowed pricing flexibility on a service\_by\_service basis only if (1) the LEC provides nondiscriminatory interconnection to essential inputs; (2) an authorized competitor enters an incumb -ent LEC's territory to provide a comparable competitive service; and (3) the -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 competitor is not solely reselling a bundled LEC offering. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \tab Citizens recommends that the Commission define necessary inputs broadly so as to cover al -l necessary functions, features, and services required by CLCs. An element should be deemed necessary if it is required by the CLC to provide comparable service, cannot be reasonably duplicated, and there is no economic alternative to the c -ompetitor in terms of quality, quantity, and price. -\par \tab \tab According to Citizens, essential inputs should be tariffed and priced at TSLRIC. Because of the large number of inputs needed by new entrants, Citizens believes that it will initially be necessary to employ the imputation pri -nciples adopted in the IRD decision (D.94\_09\_065) to price many of the necessary inputs. As an alternative, Citizens recommends a "short cut" method to pricing necessary inputs to expedite opening the local exchange market to competition. - Citizen's "short cut" approach is to employ price ceilings rather than price floors. Citizens believes this would avoid the LECs having to produce countless complex cost studies and a concurrent need for the Commission to scrutinize all o -f the studies. Where cost studies are available, the Commission should continue to use a price floor and imputation analysis, but where cost studies have not yet been developed, the Commission could use the "short cut" price ceiling approac -h. -\par \ul \b Coalition\ulnone -\par \tab \tab \b0 The Coalition opposes Pacific's and GTEC's requests to move local exchange services from Category I to Category II. The Coalition believes that the LECs will combine their market power in the local exchange market with pr -icing flexibility to impede competition. As evidence of the LECs' market power, the Coalition states the LECs have 100% of the switched local exchange service market and are the only carriers capable of serving every customer in their servi -ce territories. The Coalition believes a variety of structural barriers will perpetuate the LECs' market power. These structural barriers include the absence of true number portability, the lack of CLC -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 access to LEC databases such as SS7 signaling, and the lack of CLC facilities to compete with the LECs throughout their service territories. -\par \tab \tab The Coalition believes the proper procedure for LECs to seek pricing flexibility is under the rules established by NRF (D.89\_10\_031). According to the Coalition, the Commission anticipated the development of competition for - all LEC services and structured NRF so as to allow for the reclassification of services upon petition and evidentiary showing by the LECs. The Coalition recommends that the Commission review the LEC's request for pricing flexibility under -the NRF framework on a service by service basis. -\par \tab \tab The Coalition notes that the Commission granted AT&T pricing flexibility only after a demonstration that its market power had significantly diminished. The specific criteria used by the Commission in D.86\_07\_017 to assess A -T&T's market power and the level of pricing flexibility that was warranted were as follows: The market share of AT&T and its competitors; the extent of facilities ownership by competitors; the ease of market entry and exit; the size of indi -vidual carriers; customer satisfaction; and changes in prices and the mix of available services. The Coalition states that the Commission later refined in D.93\_02\_010 the criteria for assessing AT&T's market power to eight criteria. -\par \tab \tab In analyzing a LEC's request for pricing flexibility for a service, the Coalition believes the Commission should evaluate the LEC's market power over the service using the same eight criteria established in D.93\_02\_010. The -se criteria are: (1) determination of the relevant market, (2) market share, (3)\~LEC and CLC earnings, (4) ownership of facilities by other carriers, (5) ease of market entry and exit, (6) individual carriers' size and growth potential, (7 -) equal access and other technical factors, and (8) service options and customer satisfaction. By following this approach, the Coalition states the LECs will be granted pricing flexibility commensurate with the lessening of their market pow -er as measurable competition actually emerges. -\par \tab \tab If the Commission decides in this proceeding that LECs should be allowed to reclassify Category I services to Category\~II, the Coalition recommends that the Commission first remove barriers to competition. Specifically, befo -re allowing basic exchange services to become Category II services, the Coalition believes there must be: (1) TSLRIC studies performed and price floors in place; (2) price, terms, and conditions that allow facilities\_based and resale compet -ition; (3) true number portability; (4) access to LEC databases, including SS7; (5) CLC access to numbering resources; and (6) interconnection arrangements. -\par \ul \b DRA\ulnone -\par \tab \tab \b0 Even though DRA believes the LECs will have substantial market power at the outset of competition, DRA believes that the LECs should be allowed pricing flexibility for most local exchange services. DRA believes that the o -pening of the local exchange market to competition results in most local exchange services being "partially" competitive and thus qualifying for Category II pricing flexibility. However, DRA recommends pricing flexibility only be allowed af -ter cost\_based price floors and ceilings are established. Moreover, DRA recommends keeping certain services in Category I due to their continued monopoly status until competition for these services becomes more evident (i.e., basic service - elements, 911 service, and public policy payphones). -\par \tab \b 2. \ul Discussion\ulnone -\par \tab \tab \b0 We conclude that most local exchange services should be moved to Category II since they conform to our Category II definition of "partially competitive services for which the local exchange carrier retains signficant (thou -gh perhaps declining) -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 market power" (D.89\_10\_031, p. 152). We conclude that it will enhance competition to permit -this recategorization. While we acknowledge that the LECs will continue to retain significant market power at least during the initial implementation of competition, our institution of competitive local exchange service as outlined in this -and previous orders creates a "partially competitive" market consistent with the Category II definition. -\par \tab \tab We will retain Category I status for certain limited services. We shall adopt DRA's proposal to retain Category I status for the following services: public policy payphones, -\par 911\~services, and basic service elements (BSEs) as well as for basic network functions developed in OANAD. Because of the unique public policy and safety characteristics of public policy payphones and 911 services, it is appropriate -to retain Category\~I status for them. Since BSEs represent bottleneck elements of the LEC networks, they do not exhibit the characteristics of partially competitive services and should remain in Category I. We shall also retain Category I - status for collocation and the Network Interconnection Charge since these remain monopoly services. We shall reclassify most remaining local exchange services to Category II effective March 31, 1996. As defined in the IRD decision, Catego -ry II services are subject to flexible pricing rules within established floor and ceiling limits. The revised listing of Category I and Category II services is set forth on Table 2 below: -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1296 \fi0 \ql \sl360 \tx864 \tx1440 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \qc \ul TABLE 2\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par \qc \ul CATEGORY I SERVICES\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par Network Interconnection Charge (NIC) -\par Collocation arrangements -\par Public policy pay telephone service -\par Switching portion of switched access -\par E\_911 service -\par Basic Service Elements \_ other Open Network Architecture services -\par Pacific's Multiple Line Call Detail Service (\ul see\ulnone D.93\_11\_014) -\par All wholesale services ordered in this decision -\par CLC \_ Remote Call Forwarding -\par -\par -\par \qc \ul CATEGORY II SERVICES\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Retail oferings of the services are in Category II, and wholesale offerings are in Category I. -\par \pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 }}\up0 \ulnone -\par -\par Basic exchange services -\par Semipublic telephone service -\par Customer\_owned pay telephone (COPT) access line -\par IntraLATA directory assistance -\par Local measured usage -\par Zone Unit Measurement (ZUM) -\par Extended Area Service -\par Foreign Exchange Service -\par Foreign Prefix Service -\par Directory listing services -\par IEC directory assistance -\par Operator services (0+) -\par Operator services (0\_) -\par \pard \li720 \ri1008 \fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 IntraLATA message toll (Direct Distance Dialed (DDD), optional calling plans (OCPs), 800, WATS, operator\_handled calls (OPH), calling card, coin) -\par Custom calling/vertical services -\par Centrex/CentraNet service -\par PBX trunk line service -\par Special access -\par Private line -\par Billing and collection services (except Pacific's Multiple -\par Line Call Detail Service) -\par Local transport, except the Network Interconnection Charge -\par ISDN, both Pri and Bri -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1200 \margbsxn1200 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li720 \ri1008 \fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li720 \ri1008 \fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li720 \ri1008 \fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li720 \ri1008 \fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li720 \ri1008 -\fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li720 \ri1008 \fi-720 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \tx2592 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 Be -cause price floors for the remaining reclassified Category II services have not yet been established, however, the LECs shall not be immediately authorized to implement Category II price flexibility on March 31, 1996. This restriction is co -nsistent with our policy stated in the IRD proceeding that "[b]efore an LEC may exercise pricing flexibility for Category II services...it must establish a price floor for the service." (D.94\_09\_065, p. 284.) -\par \tab Similarly, in our recent decision to move local transport (LTR) services from Category I to Category II, we identified two criteria for deciding whether to recategorize a service as Category\~II: (1) whether sufficient competition - exists within the market, and (2) whether the LECs have submitted cost study data sufficient to establish price floors required for Category II pricing flexiblity (D.95\_04\_073, pp. 41\_42). In that decision, we found that the LTR service - met the first prong of the test, but not the second. Thus, we reclassified LTR service to Category II, but required the LECs to submit cost data which would be used to establish price floors. -\par \tab We shall follow a similar approach for the reclassified Category II local exchange services. The LECs will be permitted to implement pricing flexiblity for tariffed Category II services once relevant price floors are established f -or the reclassified services. The process of establishing price floors is currently underway in the OANAD proceeding. Until appropriate price floors are approved, the LECs shall be required to continue pricing these services at existing ta -riffed rates. Before we approve price floors for these reclassified Category II services, we shall consider in the NRF proceeding how to develop and use price floors for exercising pricing flexibility. -\par \tab We recognize, however, that competition will develop in certain markets earlier than others, and accordingly, conclude that pricing flexibility with respect to customer\_specific contracts -\par \pgnstarts1 \pgnrestart \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ***** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ***** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 should be implemented gradually in recognition of such competition. Thus, fo -r those services which are moved from Category I to Category II pursuant to this decision, we shall establish the following provision. We shall consider approval of LECs' advice letter requests for pricing flexibility for customer specific -contracts on an exchange\_by\_exchange basis contingent on (1) the establishment of a customer\_specific price floor for the service in accordance with D.94\_09\_065 and (2) the demonstration of competition within a given exchange as define -d below. -\par \tab It is not enough that the LECs are required to include customer\_specific price floors in their advice letter filings. We are concerned that without service\_wide price floors against which customer specific price floors can be co -mpared, there would be too much opportunity for gaming the price floor results. Accordingly, for customer\_specific contracts covering those services which are moved from Category I to Category II pursuant to this decision, we shall add the - second precondition requiring a showing of competition from at least one facilities\_based CLC. We do not believe it is necessary to prohibit any LEC pricing flexibility until service\_wide price floors are established in OANAD in those lo -cal exchanges where such competition develops. -\par \tab The mere lifting of legal barriers to competitive entry, however, is not evidence of competition sufficient to warrant LEC pricing flexibility for customer\_specific contracts. Thus, we shall only permit the LECs to seek authority - for Category II pricing flexibility on a case\_by\_case basis for customer\_specific contracts where the LEC makes a showing that at least one facilities\_based CLC is actively competing against it within the majority of exchanges served by - the customer subject to the flexibly\_priced contract. As evidence that the facilities\_based CLC is actively competing, the LEC must show that the CLC has executed an interconnection agreement with the LEC, has opened one or more NXX code -s within the exchange, and has originated or terminated traffic to CLC customers within the LEC's exchange. -\par \tab We shall further require that the competing CLC must be other than Pacific or GTEC. This restriction will prevent the -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 incumbent LECs from being able to meet the test for customer\_specific contracts merely by executing an interconnection agreement with each other in their roles a -s CLCs. -\par \tab We conclude that the presence of at least one facilities\_based CLC will provide a valuable check against the power of the LEC to engage in anticompetitive pricing through customer\_specific contracting. The requirement for the pr -esence of one facilities\_based CLC will provide a more meaningful indication of competition than reliance only on CLC resellers. The CLC reseller's prices are significantly keyed to the LEC's wholesale rates. The LEC will still be collect -ing revenue from the sales made by CLC resellers and can enter into a customer\_specific contract below the wholesale rate charged to the reseller. By contrast, the facilities\_based CLC is independent of the LEC and can compete against the - LEC based on the CLC's own cost structure irrespective of what wholesale rates the LEC may charge resellers. -\par \tab In the case of Category II services which were so classified prior to today's order, existing rules for the approval of customer\_specific contracts shall remain in place. However, in the case of contracts for bundled services th -at include services we have placed in Category II as a result of today's order, we shall apply the rules we have designed for these services. We shall not require a showing of competition by a facilities\_based CLC for approval of customer\ -_specific contracts for existing Category II services. -\par \tab Any LEC advice letter request for a customer specific price floor must also conform the the process outlined in D.94\_09\_065: -\par \pgnstarts1 \pgnrestart \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 "[C]ustomer\_specific LRICs must be calculated on an appropriate uniform per\_unit basis (e.g., per\_foot, per\_line). - The LEC must establish per\_unit LRICs in a compliance filing setting forth the calculation and cost basis for the unit price. The LEC may then apply the unit price to the appropriate characteristic of the customer..... to establish custo -mer\_specific LRICs for use in calculating price floors for -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql -\sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 -{\headerr \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 the individual contracts. (D.94\_09\_065, p -.\~229.) -\par -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li1440 \ri2448 \fi-1440 \ql \sl240 \slmult1 \tx1440 \tx2016 \tx2592 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 -\tx1440 \tx2016 \tx2592 \hyphpar1 The pricing flexibility permitted for Category II services will retain sufficient safeguards to prevent the LECs from setting anticompetitive prices. The LECs will not be allowed to raise Category II price -s above established price caps absent the filing of an application. Since the LEC price floors will impute the contribution from monopoly building blocks, the LECs will not be able to price squeeze their competitors. This recategorization -will enhance the opportunity for competition between LECs and CLCs, but will not enable the LECs to engage in anticompetitive practices. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \b C. \ul Bundling of Services\ulnone -\par \tab 1.\tab \ul Parties' Positions\ulnone -\par \tab \tab \b0 Pacific, GTEC, Citizens, and DRA recommend that the LECs be granted authority to package Category I, II, and III services into a single offering. According to Pacific and GTEC, there is strong customer demand for service -packages, and the LECs would be at competitive disadvantage if they were not given the right to offer packages. These four parties agree that the LECs should also provide the components of their packaged services on an individual basis, thu -s allowing customers to purchase only those services they want or need, and allaying any concerns about illegal tying arrangements or other anticompetitive bundling arrangements. -\par \tab \tab Pacific recommends that the price floor for any package be the sum of the price floors of the individual parts of the package (including any imputation requirement in setting the price floors), with the same principle applying - to a package's price ceiling. If packaged Category I services do not have a price ceiling and floor, Pacific and DRA propose using the retail rates of the Category I services in establishing the price of the package's floor and ceiling. T -URN asks that any imputation structure adopted by the Commission not result in an increase to basic exchange service rates. Pacific believes that when packaging residential services, the existing imputation rules for subsidized services sho -uld apply, but that the subsidy payment must be included in the revenues received to determine whether the price is above the price floor. -\par \tab \tab DRA recommends the lifting of the Commission's current prohibition on offering local exchange services in customer specific contracts that was established in D.94\_09\_065. DRA recommends allowing such contracts if they are c -onsistent with GO\~96\_A contract rules adopted in IRD. DRA also believes the Commission should require that the customer\_specific DEC for any local exchange services included in the contract be imputed in the contract floor. Finally, DRA - recommends that the LECs not be authorized to use express contract procedures for services for which no service\_wide floors and ceilings have been approved. Nor does DRA believe that the LECs should be granted pricing flexibility below DE -C in customer\_specific contracts until service\_wide or rate element cost studies are approved. -\par \tab \tab The Coalition opposes allowing Pacific and GTEC to bundle Category I services with Category II or III services. The Coalition states that "tying" of noncompetitive basic local exchange service with competitive Category II and - III services is per se anticompetitive when the LECs have sufficient economic power over basic local exchange services to restrain free competition for Category II and III services. -\par \tab \tab The Coalition states that bundling of Category II and III services can be allowed, but only if established Commission safeguards for bundling are rigorously enforced. These safeguards include those established in D.94\_09\_06 -5 which precluded bundling in the form of contracts that include Category\~I services at other than tariffed rates; and D.94\_09\_065 and Resolution T\_15613 which prohibit the bundling of certain monopoly services, including residential sub -scriber service, basic exchange lines, ZUM, local usage, and the access line portion of semipublic telephone service. -\par \tab \tab The Coalition and TURN recommend the strict enforcement of the Commission imputation safeguards when bundling Category II services with Category III services to assure that monopoly elements are not subsidizing competitive pro -ducts. Furthermore, the Coalition states its view that PU Code \{\{ 453, 532, and 2882.5 together dictate that LECs must demonstrate, prior to the offering of a package, the imputed underlying costs of any Category II service bundled with a - Category III or nonregulated service. -\par \tab \b 2.\tab \ul Discussion\ulnone \b0 -\par \tab \tab We conclude that the LECs should be granted the flexibility to bundle Category II local exchange service with Category III services (including all services moved from Category\~I to II in this decision) as long as no "tying a -rrangements" are involved and our imputation rules are strictly observed. This bundling comports with the rules in D.89\_10\_031 for bundling of Category II and III services. -\par \tab \tab A tying arrangement arises under antitrust laws when a seller conditions the sale of one product (the tying product) or service on the purchase of a separate product or service (the tied service). Such arrangements are in vio -lation under Section\~1 of the Sherman Act, Section 3 of the Clayton Act and Section 5 of the Federal Trade Commission Act. In addition, there are two provisions of the Cartwright Act that can apply to tying arrangements; Sections 16720 and - 16727. These two sections together have been characterized as analogous to Section 1 of the Sherman Act. (\ul Corwin v. Los Angeles Newspaper Bureau, Inc.\ulnone , 4 Cal. 3d 842, 852 (1971).) -\par \tab \tab Tying arrangements generally involve the supplier's use of economic power or leverage in the market for the tying product to curb competition in the tied product and deny customers a free choice with respect to the products th -ey purchase. Because such tying arrangements have been viewed as having little purpose other than the restriction of competition, they have been considered unlawful per se. In two recent cases, \ul Jefferson Parish Hospital \ulnone \ul Dis -trict No. 2 v. Hyde\ulnone , 466 US 2 (1984( and \ul Eastman Kodak Co. v. \ulnone \ul Image Technical Services\ulnone , 504 US 451 (1992) the Court reaffirmed that tying arrangements are per se unlawful. -\par \tab \tab Accordingly, for any bundled service offering, the LECs must also offer customers the opportunity to purchase the service on a stand\_alone basis at the authorized tariff rates. We find no reason to conclude that the mere aut -horization allowing the LECs to bundle Category II and III services on this basis constitutes an anticompetitive tying arrangement. Federal case law supports the conclusion that bundling of services does not constitute an unlawful tying whe -n the offered terms do not preclude purchase of the separate services. (\b Robert's Waikiki U\_Drive,\b0 732 F.2d 1403, 1407 (9th Cir. 1989).) -\par \tab \tab Moreover, we find no basis in antitrust law to conclude -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 that an unlawful tying would necessarily result merely from the - LECs offering a bundled Category II and III service at a discount relative to the tariff rates for the separate services. In \b Amerinet v. Xerox Corporation\b0 , 972 F.2d 1483, 1500 (8th Cir. 1992), the court found no unlawful tying mere -ly because the separate products were more expensive than the bundled product. The court did find, however, that "an illegal tying arrangement may still be shown if the defendant's policy makes the purchasing of the tying and tied products -together 'the only viable economic option...'" \tab Thus, we will not prohibit the LECs from offering bundled Category II and III services at any discounts relative to the tariff rates for the separate services. On the other hand, if the -price differential between a bundled package and the separate services was so great that customers were economically coerced into buying unwanted or overpriced Category III services, then could a valid claim that an lawful tying had occurred -. The opportunity for -\par the LECs to offer a bundled service which is a customer's only viable economic option, however, is constrained to the extent that the bundled price of the Category II product cannot go below the price floor and the separate Category II -prices cannot go above the ceiling. In any event, Pacific and GTEC are placed on notice that any bundled arrangements they enter into pursuant to our adopted rules are subject to applicable antitrust laws regarding unlawful tying arrangemen -ts, and they shall be liable for any applicable penalties or sanctions resulting from violation of those laws. -\par \tab \tab Accordingly, effective March\~31, 1996, LECs may bundle Category II and III services as long as customers are able to purchase the individual services separately at tariffed rates, and as long as proper imputation of price fl -oors for each separately unbundled Category\~II service is verified. As prescribed under PU Code \{\~2282.5: "Cross\_subsidy of the enhanced services by the noncompetitive services offered by the local exchange telephone corporation is pro -hibited." For any bundled tariffed Category II services, we shall require a full demonstration of the imputed underlying tariffed rates. We shall not allow bundling of Category\~I services. -\par \b D. \ul Geographic Deaveraging\ulnone -\par \tab 1.\tab \ul Parties' Positions\ulnone -\par \tab \tab \b0 Pacific, GTEC, LDDS, Citizens and DCA support allowing the LECs to set cost\_based, geographically deaveraged rates, with geographically\_based costs determined in the OANAD proceeding. Pacific would make one exception fo -r residential services which Pacific believes should not have geographic\_based prices. These parties generally agree that geographic deaveraging provides correct economic signals to both CLCs and to customers. Without geographic deaveragi -ng, the CLCs may be encouraged to enter low cost areas protected by the umbrella of averaged LEC prices, and dissuaded from serving high cost areas where the LECs charge below their costs due to averaged LEC prices. Unless the geographic pr -ice distortions are corrected, these parties believe a truly cost\_based competitive marketplace cannot emerge. -\par \tab \tab To the extent that the cost to serve high cost areas makes the price prohibitive, Citizens recommends that the Commission's universal service system be used to ensure that prices are kept at an affordable level. If the Commis -sion forces GTEC to maintain average prices, GTEC recommends the Commission mandate that a universal service contribution be collected from CLCs to address the revenue needs associated with high cost areas. -\par \tab \tab The Coalition and TURN oppose geographic rate deaveraging. According to the Coalition, allowing entry by CLCs will not affect the LECs' overwhelming market power which will continue to persist because, among other things, man -y ratepayers will not have competitive alternatives available to them for many years to come. The Coalition states that if the Commission permits rate deaveraging immediately following entry, the LECs intend to wield their market power by i -mposing significant rate increases on large numbers of ratepayers with no competitive options for local exchange service, resulting in widespread discrimination of the sort that averaged rates were designed to limit. Moreover, the Coalition - believes that deaveraging would result in significant anticompetitive conduct by the LECs who would drop rates in areas where they face incipient competition and underwrite those decreases by raising rates to captive customers. -\par \tab \tab The Coalition recommends that deaveraging not be permitted until there are sufficient competitive alternatives available to ratepayers to limit potential discrimination and anticompetitive behavior. However, if geographic dea -veraging is allowed before then, the Coalition recommends that it be subject to four conditions. First, there should be no deaveraging of residential basic service given that the Universal Service Fund will ensure that LECs are made whole f -or the cost of providing basic service in high cost areas. Second, there should be no deaveraging until OANAD cost studies have been completed and verified by the Commission. Third, deaveraging should be offered -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 to ratepayers based on their cost characteristics and not on th -e lack of competitive alternatives available to them. This means that all ratepayers with the same cost characteristics should receive the same rates. Finally, deaveraging should not be permitted below the exchange level to avoid the admin -istrative burden of many different rates for the same service. -\par \tab \b 2.\tab \ul Discussion\ulnone -\par \tab \tab \b0 We recognize that geographic deaveraging may promote more efficient pricing. Under the existing LEC rate structure which is based on statewide averages, retail rates do not reflect the costs of serving different geographi -c regions. Once LEC rates are geographically deaveraged and prices are allowed to more closely match costs of service, CLCs will have a greater incentive to enter new geographic markets which were not previously cost effective to serve. Th -us, geographic deaveraging should increase rather than constrain competition. CLCs will be encouraged to enter a geographic market if they can offer a more competitive price than the LEC. While we agree that allowing geographically cost\_b -ased prices may be necessary in a competitive environment, statewide average rates must remain in place for LECs for the present and until relevant cost studies by relevant geographic region have been completed and approved. -\par \tab \tab Before deaveraged rates can be implemented, studies must be completed to determine the appropriate costs of serving different geographic regions. Although cost studies are presently being prepared in the OANAD proceeding to d -evelop rates for unbundled network elements, those cost studies will not necessarily provide all the necessary information needed to determine geographically deaveraged costs. Moreover, in the Universal Service proceedings, we are consideri -ng using a "proxy" cost study to estimate the cost of basic service to residential customers -\par throughout the state based on geography. Under the proxy factor method, we would examine a sample of actual costs from different geographic areas. Accordingly, we shall coordinate with the ongoing work in companion proceedings and sub -sequently determine a procedural schedule for the preparation, review, and approval of cost and price studies which can be used for adoption of geographically deaveraged rates. The studies should provide data which would separately identify - wholesale and retail costs and prices. Appropriate coordination between the OANAD, Universal Service, and NRF proceedings will assure that relevant cost data are shared among these proceedings accordingly. -\par \tab \tab The Universal Service High Cost Voucher fund as proposed in the Universal Service proceeding, may reduce the need for rate deaveraging in the residential market. The availability of subsidies from the fund should allow LECs a -nd CLCs to serve high cost areas at affordable rates and reduce or eliminate the need for residential rate deaveraging. -\par \tab \tab Once appropriate geographically deaveraged prices have been allowed, we shall then be prepared to revise the rules in this proceeding authorizing implementation of geographically deaveraged wholesale and retail rates. After -hearing from parties, we may also consider implementing geographically deaveraged pricing gradually on an exchange\_by\_exchange basis as cost data becomes available. We find no necessity to require a separate showing of some minimum level -of market share loss by the LECs or other related measures before we approve the use of geographically deaveraged Category II services. We shall, however, require that each LEC offer the same geographically deaveraged rates to all ratepayer -s within a designated geographic region. This requirement is consistent with PU Code \{\~453(a) which states: "No public utility shall as to rates, charges, service, facilities, or in any other respect, make or grant any preference or adv -antage to any corporation or person subject any corporation or person to any prejudice or disadvantage." These restrictions will provide appropriate safeguards against the risk of discriminatory pricing -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 in those geographic regions where there may be few or no CLCs serving customers. The LECs will not be able to reduce rat -es below the geographically deaveraged price floors nor raise rates above the geographically deaveraged price caps. -\par \tab \tab For the immediate future, however, and until the appropriate pricing studies are concluded, we shall not permit the LECs to geographically deaverage any of their rates. Likewise, the interim wholesale rates for basic service -which we approve in this order do not reflect any geographic deaveraging. Therefore, the lack of geographically deaveraged prices will not competitively handicap the LECs in relation to CLC resellers. On the other hand, facilities\_based C -LCs will not be constrained by the LECs' statewide average rates, but will be able to target specific geographic regions and price their service accordingly. In this respect, facilities\_based CLCs will have a competitive advantage until ge -ographically deaveraged rates are implemented for the LECs and CLC resellers. -\par \b E. \ul Miscellaneous LEC Pricing Flexibility Issues\ulnone -\par \tab \tab \b0 Our interim rules established in D.95\_07\_054 permitted greater flexibility to the CLCs in comparison to the LECs. We reject, however, the proposal of GTEC to abolish all differences and to establish identical rules for -both the LECs and CLCs with respect to pricing and tariffing requirements. GTEC's list of proposed changes includes elimination of all service category distinctions, removal of all cost study requirements, removal of all LEC earnings limita -tions, and complete parity with the CLCs regarding the filing of tariffs and turnaround times and procedures for making rate changes. The list of proposed changes in pricing rules as outlined in GTEC's listing (Exhibit 43, Attachment A) of -the differences between the regulatory rules for LECs versus CLCs is overly broad and unjustified at this time. -\par \pgnstarts1 \pgnrestart \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \tab We find it appropriate, however, to grant the LECs additi -onal flexibility to make effective customer\_specific contracts without a formal Commission resolution, as is presently required under GO 96\_A and consistent with the requirements of this Decision. Instead, CACD will be authorized to infor -mally approve such contracts, or to provisionally reject them and prepare a resolution for those cases where major modifications are required which would go beyond CACD's ministerial function. CACD shall also be authorized to dismiss protes -ts to customer\_specific contracts when appropriate. By removing the formal resolution requirement, LECs should be able to place customer\_specific contracts into effect several weeks sooner, thereby enhancing the LECs' competitive flexibil -ity. Customer\_specific contracts will still be subject to the regular 40\_day notice period. We shall also modify the rule for LEC advance notice of Category II rate decreases to require only five\_day, instead of 10\_day, advance notice. - This change will conform to the CLC notice requirement adopted in D.95\_07\_054. -\par \tab \tab Except for the specific changes we adopt herein, we find no basis to grant any remaining changes in pricing rules for the LECs at this time. It is appropriate to retain more flexible rules for the CLCs in comparison to the LE -Cs at least for the immediate future. While the additional regulatory flexibility will provide the CLCs certain limited competitive advantages over the LECs, we conclude that these advantages will be counterbalanced by the overall market do -minance which the LECs will continue to have for at least some period following March 31, 1996. The market dominance of the LECs justifies retention of the existing regulatory rules governing the LECs for the present time. We reserve the r -ight to continue to monitor the progress of competition within the industry and to revise the rules over time as conditions warrant. -\par \tab \tab While the LECs and CLCs will initially be subject to "asymmetrical" requirements in various respects, we do not view -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 this as unbalanced or unfair regulation. Because we are dealing with a changing market which we hope to move toward the -ultimate goal of full competition, it will be challenging to craft rules which exactly balance the LECs' and CLCs' opportunities and constraints at any single point in time though this is our intent. Nonetheless, when the disparities in mar -ket power between the LECs and CLCs are considered along with the adopted rules in the overall regulatory equation, we conclude that the rules we put in place effective March 31, 1996 promote the goal of overall regulatory symmetry for the i -mmediate future. -\par \b F. \ul CLC Pricing Policies\ulnone -\par \tab 1. \ul Introduction\ulnone -\par \tab \tab \b0 In D.95\_07\_054, the Commission required hearings to consider evidence regarding CLC pricing policies and whether there would be harm to consumers if CLC costs studies were not required.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 D.95\_07\_054, mimeo, p. 34. -\par }}\up0 -\par \tab \b 2. \ul Parties' Positions\ulnone -\par \ul Pacific and GTEC\ulnone -\par \tab \tab \b0 Pacific believes that formal cost studies are unnecessary in a competitive environment. Pacific, however, is concerned that unreasonable charges assessed by a CLC against Pacific would harm its customers who would have t -o pay inflated rates. Pacific thus recommends that CLCs with more than five percent of the nation's presubscribed access lines (e.g., AT&T, MCI, and Sprint) should be required to submit minimal cost support to CACD demonstrating that their -prices for interconnection and interim number portability are reasonable. Pacific recommends that CLCs submitting cost support should be able to have their prices become effective immediately pending a CACD review. -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \pgnstarts1 \pgnrestart \tab Pacific and GTEC both recommend that LECs should be allowed the same rules for timing of pr -ice changes, new product introductions, contracts, and other product and pricing requirements as will be allowed CLCs.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 GTEC would abandon the current cost study requirements for LECs once price floors are approved in the OANAD proceeding and pricing flexibility established for - services moved from Category I to Category II. -\par }}\up0 For example, if CLCs are allowed to make minor rate increases within five days, the LECs believe they should be allowed the same right; and if CLCs are not required to submit reports tracking the revenues and costs of contracts -, the LECs state they should not have to, either. The LECs argue that asymmetric regulation is not in the public interest because it handicaps the normal functioning of the market through artificial government intervention, resulting in low -er economic efficiency and fewer consumer benefits. -\par \ul \b Citizens\ulnone -\par \tab \tab \b0 As a general principle, Citizens believes that Commission rules governing new entrants should be as minimal as possible. Following this principle, Citizens recommends that CLCs not be required to file cost studies in orde -r to offer a service. Citizens views cost studies as a barrier to entry and not justified by the CLCs' lack of market power. Instead, Citizens recommends that CLCs be required to justify their prices if a complaint is filed charging the CL -C with below cost pricing. -\par \ul \b Coalition\ulnone -\par \tab \tab \b0 The Coalition opposes any cost study requirement being imposed on the CLCs, while it supports such a requirement for the LECs. The Coalition believes that stricter regulation of the LECs is justified by the many competiti -ve advantages enjoyed by the LECs such as: LEC customers retain their existing telephone numbers without charge; it costs less for LECs to retain their customers than for CLCs obtain customers; LECs' ability to offer 1+ intraLATA toll servi -ce; and LECs can offer ubiquitous facilities\_based service, an important feature for large business customers with multiple locations. -\par \tab \tab The Coalition also states that CLCs should be subject to fewer regulations than LECs because the CLCs lack market power in the local exchange service market, and the market will therefore -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 effectively discipline their behavior. For example, the Coalition states a CLC cannot obtain customers unless its rates -are lower and/or its service is better than the LEC's. Thus, Commission regulation is unnecessary to ensure that CLCs' rates are not excessive, argues the Coalition. Because CLCs lack market power, the Coalition believes that additional re -gulation would impose costs without any offsetting public policy benefits. Symmetrical regulation between LECs and CLCs would thus create a barrier to entry. -\par \tab \tab Finally, the Coalition states that the different rules for LECs and CLCs, though appropriate, are not significantly different. Rate increases, except those defined as minor for the CLCs, are effective on 30 days' notice for b -oth LECs and CLCs; while introduction of new services requires 40 days' notice for both LECs and CLCs. -\par \ul \b DRA\ulnone -\par \tab \tab \b0 DRA recommends allowing maximum pricing flexibility for the CLCs, and requiring CLCs to file tariffs that clearly state the rates, charges, terms, and conditions for all local exchange services the CLCs provide. DRA recom -mends against granting the LECs regulatory parity with the CLCs due to what DRA sees as the LECs' continued dominance of the local exchange market. DRA thus believes that the LECs should abide by the current rules regarding LEC rate changes -, cost studies, imputation, establishing new services, and revising tariffed terms and conditions other than rates. -\par \tab \b 3. \ul Discussion\ulnone -\par \tab \tab \b0 We decline to impose on the CLCs cost study requirements or restrictions on the ability to bundle interLATA and competitive local exchange service. Consistent with our findings in Section\~IV.A above that the LECs retain -dominant market power, we do not believe the CLCs have the power to engage in anticompetitive pricing. Accordingly, it would be an unnecessary constraint on the competitive marketplace to impose such restrictions. -\par -\par \qc \b V. \ul Rating Area Consistency\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par A. \ul Introduction\ulnone -\par \tab \tab \b0 In D.95\_07\_054, the Commission ordered CLCs to conform to the LECs' existing NXX rating areas and methodology\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 A rate center is a physical point within an exchange, such as a post office building, from which distance to another exchange is measured in airline miles to -identity whether a particular call will be billed as a long distance, toll, or local call. Each rate center's vertical and horizontal (V&H) geographical coordinates are used to calculate airline mileage. This method of rating calls is used - throughout the United States. -\par }}\up0 for an interim period pending evidentiary hearings on the long\_term resolution of CLC rating area designation.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 D.95\_07\_054, p. 30. -\par }}\up0 The ALJ Ruling of August 18, 1995, directed parties to address in their Phase II testimony whether the CLCs should be required to conform to established rating areas. -\par \b B. \ul Parties' Positions\ulnone -\par \ul Pacific and GTEC\ulnone -\par \tab \tab \b0 Pacific and GTEC recommend that CLCs be required to use existing NXX rating areas to rate and bill calls until long\_term number portability is implemented. The LECs argue that the use of inconsistent rating areas could r -esult in misrated and misbilled calls.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Misrated calls could occur where CLC's NXX codes inconsistently span several of the LEC's rating areas, causing the LEC to be unable to determine in which of - its rating areas the call actually terminated, thereby precluding the LEC from correctly billing the call in accordance with its local/toll bands. -\par -\par }}\up0 The LECs are concerned that the misrated calls would have the largest effect on the LECs' high volume customers, the very LEC customers that the CLCs would target. In addition, the misbilling caused by the use of disparate r -ate areas could impair the Commission's ability to determine what compensation mechanism is appropriate after the conclusion of the one\_year interim period for bill and keep. -\par \tab \tab The LECs further argue that using existing rating areas will minimize customer confusion. According to the LECs, customers have an understanding borne of experience of what constitutes a local or toll call. If each CLC were -allowed its own rating area, the designation of a call as local or toll would change each time a call was placed to a customer of a different carrier. The result would be customers having difficulty in knowing whether they are making a loca -l or toll call. -\par \tab \tab The LECs argue that inconsistent rating areas would affect all carriers nationally and should be undertaken only after the development of new national standards. Finally, Pacific is concerned that allowing CLCs to use differe -nt rating areas could impair the reliability of the E\_911 network. Pacific does not oppose modifying E\_911 to cope with different rating areas, but only after careful study. -\par \tab \tab Pacific acknowledges that a requirement for rating area consistency may accelerate NPA exhaustion. However, Pacific believes accelerated number exhaust is preferable to thousands of misrated calls per day. Pacific adds that -its recommendation for consistent rating areas is meant to facilitate local competition, and thus the costs caused by the accelerated NPA exhaust should be shared by the industry. In all, Pacific estimates that it will incur $70 million -\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Exhibit 22, p. 46. -\par }}\up0 of additional costs for accelerated NPA exhaust due to local competition. Pacific asks for authority to track these costs using a balancing account mechanism, and to recover these costs through a surcharge on all telecommunicat -ions end\_users. -\par \tab \tab GTEC states that a "super rate center" alternative as proposed by the Coalition is a possible compromise approach. A super rate center results from combining several contiguous incumbent LEC exchange areas (each with its own -rate center) into a single CLC rate center. GTEC finds that super rate centers would reduce, but not eliminate, the number exhaust problem or misrating problems. -\par \ul \b Citizens\ulnone -\par \tab \tab \b0 Citizens supports all carriers being required to use the same NXX rating areas as already established for the incumbent LECs. Without rating area consistency, Citizens believes there will be customer confusion. In additi -on, Citizens states that inconsistent rating areas will cause carriers nationally to experience serious technical problems in identifying, transporting, and pricing calls. Citizens does not believe that a requirement for consistent rating a -reas should restrict carriers from developing different calling areas to accommodate customer need and demand. -\par \ul \b Coalition\ulnone -\par \tab \tab \b0 The Coalition opposes the requirement of consistent rate centers since it would exacerbate the already serious problem of statewide number exhaust, and would force each CLC to open a unique NXX in every existing LEC rate c -enter in which the CLC offers service. Given that Pacific and GTEC together have more than 559 rate centers, each CLC providing service throughout the two LECs' service territories would need to obtain at least 559 NXX number blocks totalin -g more than 5,590,000 telephone numbers, causing immediate and widespread number exhaust. The Coalition is concerned that the resulting number exhaust would shut the CLCs out of some or all markets due to a lack of NXX codes, which would be -nefit the LECs but impede competition. -\par \tab \tab The Coalition is concerned that as number exhaust accelerates due to the use of consistent rate centers, solutions to the problem could further impede competition. As an example, the Coalition cites a CACD report dated Novemb -er 9, 1995, regarding number exhaust for the 310 area code. In their report, CACD recommends a freeze on assigning numbers when only 48 NXXs remain, and that there be a lottery for the allocation of the remaining codes. The Coalition belie -ves the freeze and lottery could preclude new entrants from obtaining NXXs and offering service in the 310 area. -\par \tab \tab The Coalition states that call misrating is a minor and temporary problem that will be solved by true local number portability (LNP). According to the Coalition, prior to the implementation of true LNP, few customers will be -impacted by call misrating since competition will be slow to develop and there will be few CLC customers. Moreover, the call misrating applies only to facilities\_based CLCs, not resale CLCs, further limiting the number of affected customer -s. Finally, there will be no call rating problem for the customers of facilities\_based CLCs who use interim LNP since their telephone numbers (and thus their rating center location) will remain the same. -\par \tab \tab The Coalition is concerned about a co\_carrier agreement between Pacific and MFS Intelenet of California (MFS). Under the agreement, MFS would obtain at no charge a unique NXX in every Pacific Bell rate center area that MFS o -ffers service. The Coalition is concerned the agreement would exacerbate the number exhaust problem by requiring MFS to obtain full blocks of 10,000 numbers even where MFS had no need for so many numbers; and would discriminate in favor of -MFS by providing MFS with NXXs at no charge while all other CLCs are charged to open new codes. -\par \tab \tab To reduce the problems associated with using inconsistent rate centers, the Coalition recommends the Commission adopt the proposal by TCG to modify the Terminating Point Master (TPM). Currently, to rate a call, all carriers u -se a national file called the TPM, which identifies the rate center to which a particular NPA\_NXX number is assigned. TCG's proposal would modify the TPM so it could recognize that a particular NXX has been assigned to a CLC. Once the TPM - has recognized that a particular NXX was assigned to a CLC, the rating system would look to a separate file in order to properly rate the call. TCG believes its proposal can be implemented fairly easily with little cost. The Coalition not -es that several facilities\_based IECs, including AT&T, MCI, and Sprint, would be as impacted by TCG's proposal as the LECs, yet these IECs are willing to pursue it further. The Coalition therefore recommends that if the Commission feels co -mpelled to address call misrating prior to true LNP, the Commission approve TCG's proposal and move forward with an examination and implementation of the technical details associated with its adoption via workshops. -\par \tab \tab The Coalition recommends that the Commission consider implementing "super rate centers" in the short term to minimize possible call misrating. Under this approach, CLCs would obtain an NXX covering a number of current LEC exc -hange areas. The number of LEC exchanges subsumed by a CLC super rate center could be calibrated to make the number as small as possible while avoiding number exhaust. This calibration could vary by geographic area in order to account for -the varying risks of number exhaust. The super rate center approach would only need to be in effect until either TCG's solution is deployed, or until permanent LNP is deployed. -\par \tab \tab During the period that the TCG proposal to modify the TPM is being evaluated and tested, the Coalition recommends that the Commission address possible customer confusion through customer notification. The Coalition believes t -hat providing information and a list of "local NXXs" in the form of directory guides, bill inserts, and other mailings would be an efficient and inexpensive means of preventing customer confusion, and would avoid the number\_exhaust\_produci -ng requirement that CLCs obtain NXXs in every rating center where they have customers. The Coalition believes that customers would quickly learn from experience, just as they do now, which calls are local and which are not. -\par \tab \tab The Coalition believes the LECs have caused customer confusion due to inaccurate information the LECs have disseminated to their customers regarding how calls are currently rated. To alleviate the customer confusion, the Coal -ition asks that the Commission require Pacific and GTEC to make a special mailing that would (1) apprise customers of the correct manner in which calls are rated, (2) advise customers that in order to know whether a call is local, ZUM, or to -ll, the customers must refer to the "NXX charts" in their phone books or to the "detachable card" that the Coalition recommends that Pacific should be ordered to provide to its customers. Finally, the Coalition recommends that Pacific and G -TEC be required to provide information for customers on how to reach carriers when calls have been misrated. -\par \tab \tab The Coalition states that the use of inconsistent rate centers can be done without harm to the E\_911 system by arranging for special trunking where necessary to assure proper routing of E\_911 calls. -\par \tab \tab The Coalition is opposed to Pacific's request for authority to recover costs for accelerated NPA exhaust. The Coalition believes that accelerated NPA exhaust is due mostly to the LECs insistence that CLCs use consistent ratin -g areas, and that they should therefore be the parties to bear the costs for accelerated NPA exhaust. The Coalition also believes that the costs for area code splits are part of the LECs' ongoing costs of business under NRF, and that Pacifi -c has never before received Z\_factor treatment for costs to split area codes. -\par \ul \b DRA\ulnone -\par \tab \tab \b0 DRA recommends that the Commission require CLCs to match the LECs' existing rate centers. DRA believes that such a policy will reduce customer and carrier confusion about the local or toll nature of a particular call. DR -A doubts that use of consistent rate centers will substantially increase number exhaust over the next few years since DRA believes that competition will be slow to develop. DRA states that implementing true number portability will ultimatel -y eliminate the necessity of matching LEC and CLC rate centers. Until then, DRA finds the proposals to modify the TPM or use super rate centers to be infeasible since the proposals are too vague or suffer from other defects. -\par \tab \tab DRA recommends that CLCs be allowed to offer local calling areas that equal or exceed the size of the LECs' 12\_mile local calling area, but that CLCs should not be permitted to offer local calling areas smaller than the LECs' - local calling areas. DRA believes that the ability of CLCs to offer larger local calling areas may enable them to gain local market share and thereby generate some of the consumer benefits that local exchange competition is expected to pro -vide. -\par \b C. \ul Discussion\ulnone -\par \b0 \tab \tab We recognize that number exhaustion is a serious concern, and that requiring CLCs to obtain a separate NXX code in each rate center could signficantly increase the number of NXX codes to be -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 opened. Pacific has 449 rate centers while GTEC has over 100. - Assuming CLCs are to be charged for NXX code openings, the result would be increased costs for CLCs to enter new rating areas or to be foreclosed or delayed from entry into certain areas if no more NXX codes were available within a rating a -rea. Another negative result of accelerated number exhaustion is the added costs and customer disruption resulting from more frequent NPA relief measures such as area code splits. Yet, while we remain concerned regarding these consequences -, we must weigh these problems against the negative customer impacts of abandoning our policy of rating area consistency, (i.e., misrating of calls and customer confusion). -\par \tab \tab Although customers may not all precisely understand how calls are rated, they generally have some sense of which calls are rated as local. Immediately eliminating any CLC requirements to match existing rating areas without a -ppropriate consumer education would likely lead to customer confusion and misrating of calls. We also agree that these negative impacts would be experienced chiefly by the incumbent LECs' customers and could create a competitive disadvantag -e for the LECs. -\par \tab \tab We conclude that under the rating area proposals of either the LECs or the Coalition, there is some risk of negative impacts, and no solution can be absolutely problem free. We must weigh these impacts and adopt a solution t -hat results in the least overall negative effects. On balance, we conclude that the best solution is one which preserves scarce number resources and promotes the development of facilities\_based competition. Requiring CLCs to open a separa -te NXX code in every rate center in which they serve customers would create an unacceptable acceleration of number exhaustion and inhibit the growth of facilities\_based competition. Accordingly, effective March 31, 1996, we shall not requi -re CLCs to open a separate NXX code in each rate center in which they offer service. -\par \tab We also recognize, however, concurrently with the lifting of this restriction, we need to address parties' concerns over the potential for customer confusion and call misrating resulting from inconsistencies between LEC and CLC NX -X rating areas. While the problems associated with the use of different rating areas between CLCs and LECs are of concern to us, we believe they can be reasonably dealt with by developing appropriate mitigation measures through technical wo -rkshops. The timely implementation of appropriate mitigation procedures following these workshops will provide for a transition period to mitigate any call misrating and customer confusion resulting from the use of different NXX rating area -s between LECs and CLCs. Accordingly, we shall direct CACD to convene a technical workshop during March 1996 to address necessary mitigation measures on a priority basis to mitigate call misrating and to educate consumers regarding the mann -er in which the rating of local calls of CLC subscribers will be determined. CACD shall prepare a draft workshop report for parties comments following the workshop and present the final report to the ALJ no later than May\~17, 1996. -\par \tab \tab We believe that the measures developed through the technical workshops can be implemented before any significant impacts from the use of differing CLC/LEC rating areas would be felt. The need to open NXX codes will only be an - issue for facilities\_based CLCs since resellers simply rely on LECs' existing NXX code designations. Facilities\_based CLCs, however, must first execute interconnection agreements, build or acquire necessary facilities, open NXX codes, an -d actually sign up subscribers before beginning to offer local exchange service. Given the pace of progress toward facilities\_based competition since the market was opened on January 1, 1996, we do not believe that a significant number of -customers would be served using a CLC's NXX codes before appropriate mitigation measures could be put into place. -\par \tab \tab In any event, we shall direct Commission Advisory and Compliance Division (CACD) to monitor the NXX code assignment process. We shall also require that until appropriate mitigation measures are adopted, any facilities\_based -CLC which enters into a commitment to begin providing local exchange service to a customer served by an NXX rating area which is inconsistent with that of the LEC shall first notify CACD. -\par \tab \tab The topics to be covered in the workshop are discussed below. -\par \tab \tab While the TCG proposal to modify the TPM is not presently developed sufficiently to permit its implementation, it has the potential to be implemented with additional work. We direct the CACD to convene a workshop to identify -the additional implementation details which would need to be resolved to make the TCG proposal workable and to develop a timetable for implementing those details. To the extent workshop participants are unable to reach agreement on particul -ar details, they may file separate comments dissenting from the report. We will consider the results of the workshop report and assess whether to implement the TCG proposal or other alternatives including a timetable for implementing the su -per rate center proposal and for implementing a customer awareness program to inform them concerning the new procedures for determining how a local call will be rated. -\par \tab \tab Likewise, the MCI proposal to use a "super rate center" approach is not sufficiently developed to implement as an interim solution until the TCG proposal can be implemented. MCI does not explain how the size of each "super ra -te center" would be determined. If sized too large, it would not really serve to avoid customer confusion, and if sized too small, it would fail to alleviate the scarcity of NXX codes. -\par \tab \tab In considering any change in existing rating area consistency, we must also assure that E\_911 service is not impaired. The existing NXX\_to\_rating\_point system supports E\_911 service. Pacific's E\_911 Tandem Selective Ro -uting function is NXX and wire center based. The Selective Routing feature routes calls to the appropriate Public Safety Answering Point (PSAP) based on the Automatic Number Identification (ANI) and the associated -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 Emergency Service Number (ESN) in Pacific's E\_911 Management S -ystem. -\par \tab \tab Each Tandem Selective Route receives data from a number of corresponding rate centers and distributes the E\_911 calls to the appropriate PSAP. The PSAP dispatches the appropriate agency (i.e., fire, ambulance) to the caller -based on the caller's location information as recorded in the Master Street Address Guide (MSAG), If the ESN system fails, the Selective Routing telephone number database serves as a redundant safeguard. This safeguard is based on the rate - center and associated NXX of the caller's ANI. -\par \tab \tab The Coalition claims the E\_911 problem could be solved by requiring separate dedicated trunks. We believe, however, the technical details of how such trunking arrangements can be implemented should be worked out expeditiousl -y in technical workshops. Parties should address via workshop the best means to ensure E\_911 service reliability as the existing NXX code assignment procedures are changed. Before any CLC begins offering service through an NXX rating area - which differs from the LEC, we shall require that they first provide assurance to CACD that separate dedicated trunks are in place to handle E\_911 calls or that equivalent means are provided to ensure the integrity of E\_911 service. -\par \tab \tab Another technical concern to be addressed in the workshops is to assure that the measurement of local traffic would not be impaired by the elimination of rating area consistency. In D.95\_12\_056, we directed all carriers to -provide measurements of local versus toll traffic. We must therefore assure that any subsequent rating area differences allow for the ability to measure local traffic. -\par \tab We also need a developed timetable regarding the preparation, dissemination, and assimilation of any customer awareness program to educate customers concerning the new procedures for determining the rating of local calls involving - CLC customers and to consider any other appropriate mitigation measures to deal with any customer confusion or negative reaction which may still occur. -\par \tab \tab As part of Phase III, we shall therefore also give consideration to proposed means of implementing appropriate mitigation measures and a timetable for doing so. -\par \tab \tab Rating area consistency is only one of many factors determining the rate with which number exhaustion will occur. In D.95\_08\_052, we directed that as part of this rulemaking, the assigned ALJ solicit comments regarding a st -atewide policy for dealing with "California's exploding number usage" and appropriate remedies for area code relief. -\par \tab \tab The assigned ALJ also deferred consideration of the issue of NXX code opening costs to a later phase of this proceeding.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Per ALJ bench ruling on October 30, 1995. -\par }}\up0 The charge, if any, which CLCs are assessed for NXX code openings will also have a bearing on the impacts of rating area consistency. -\par \tab \tab We shall direct that both the issues of NXX code opening costs and mitigating measures to deal with LEC/CLC rating area differences be further considered in Phase\~III of this proceeding. \tab \tab In Resolution T\_15824, -adopted on January 17, 1996, we conditioned approval of Pacific Bell Advice Letter No. 17879 upon Pacific maintaining a memorandum account for NXX code opening costs for MFS until the Commission establishes costs and any recovery mechanisms -for NXX code openings. As an interim measure to become effective March 31, 1996, we shall further direct Pacific to establish a separate memorandum account to track the number of NXX -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 codes opened for each CLC. Since we have deferred the issue of rate setting for NXX code opening costs to Phase III, the - memorandum account will not initially record any revenues collected for code openings. Once we have determined in Phase III what rates, if any, should be established for NXX code openings, we shall direct Pacific to apply the adopted rates - to the NXX code openings as reflected in the memorandum account and to determine the amount of compensation due and to bill the CLCs accordingly. (We separately address the LECs' proposals to recover implementation costs in Section VI belo -w.) -\par \tab \tab A related, but separate issue is that of how large the local calling area of the CLC should be. DRA proposes that CLCs should be able to have local calling areas larger than -\_ but no smaller than -\_ the existing LEC local -calling area of approximately 12 miles. No party disagreed with this proposal, and we find it reasonable. Accordingly, we will place no restriction on the maximum size of the CLCs' designated local calling areas, but shall require that the - local calling area be no smaller than that of Pacific and GTEC. -\par -\par \qc \b VI. \ul LEC Recovery of Costs of Implementing Local Competition\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 -\par A. \ul Introduction\ulnone -\par \tab \tab \b0 The ALJ Ruling of August 18, 1995, and the Assigned Commissioner Ruling dated October 26, 1995, directed parties to address in Phase II of this proceeding the recovery of costs incurred by LECs for implementing local compe -tition.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 ALJ Ruling of August 18, 1995, p. 9, and ACR, p. 11. -\par }}\up0 In addition, the Commission in D.95\_08\_052 ordered that costs associated with NXX code opening were to be addressed in this proceeding.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 D.95\_08\_052, OP 8. -\par }}\up0 In a bench ruling on October 30, 1995, the ALJ deferred addressing NXX code opening costs to a later phase of this proceeding\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 10 RT 1787. -\par }}\up0 except for the topic of a balancing account to record NXX opening costs.\up6 -{ -{\fs16 \up6 \chftn } -{\footnote -{\fs16 \up6 \chftn }\pard \li0 \ri0 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 Some parties' briefs address the merits of whether LECs should be allowed to charge CLCs for NXX opening costs which is beyond the scope of this decision. Th -e issue of whether and to what extent LECs will be authorized to charge for NXX opening costs will be addressed in a subsequent decision. -\par -\par }}\up0 -\par \b B. \ul Parties' Positions\ulnone -\par \ul Pacific\ulnone -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 -\tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \tab \tab \b0 Pacific projects that it will incur $32,474,000 f -or implementing local exchange competition, and recommends that it be authorized to recover the $32 million via a one\_year surcharge of 0.59% on all of its end users. A summary of the cost elements comprising the $32 million figure is summ -arized below: -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx864 \tx1440 \tx2016 \tx2592 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \qc -\b LOCAL COMPETITION IMPLEMENTATION COSTS -\par \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 -\par \ul Implementation Activity\ulnone \ul Cost\ulnone -\par -\par \b0 Resale $7,471,000 -\par Operator Support Services $5,763,000 -\par E\_911 $1,367,000 -\par DNCF $3,569,000 -\par LISA $4,124,000 -\par Data Exchange $1,056,000 -\par Interconnection Project \ul $9,124,000\ulnone -\par -\par TOTAL $32,474,000 -\par -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 Pacific states that its estimate of $3 -2 million is based on detailed analyses of the incremental work that will be needed to offer interconnection, INP, and resale services to the CLCs; and excludes any costs for activities to help Pacific better compete against the CLCs. As a -n alternative, Pacific would agree to track its actual implementation costs and recover them via a Z factor type of mechanism. -\par \tab Not included within Pacific's $32M are costs associated with NXX code opening and accelerated NPA exhausts. To recover these costs Pacific proposes a balancing account mechanism, with costs recovered via a surcharge on Pacific's e -nd users. Pacific would file an annual advice letter to true up surcharge revenues with actual costs booked to the balancing account, apply interest to any over or under collection of the balancing account, and adjust the surcharge as neces -sary. Under Pacific's proposal, Commission staff would be able to review and verify Pacific's costs and their recovery. -\par \ul \b GTEC\ulnone -\par \tab \b0 GTEC recommends that it be allowed to recover its estimated implementation costs of $7.2 million via a two\_year surcharge on all the end users of LECs and CLCs. GTEC believes that it has provided detailed information demonstr -ating the reasonableness of its estimate of $7.2 million, broken down as follows: -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \qc \b LOCAL COMPETITION IMPLEMENTATION COSTS -\par \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 -\par \b0 General Implementation Labor $ 554,908 -\par Total Systems Modifications $2,092,085 -\par (includes specific labor -\par hours, vendor and hardware -\par costs) -\par Resale $2,000,000 -\par Network Interconnection $ 219,189 -\par Customer Notification \ul $2,322,651\ulnone -\par TOTAL $7,188,833 -\par -\par (Exhibit 82, Attachment 1.) -\par -\par \page \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 \cols0 \colno1 \colsr0 \colw10800 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 \tab Included among GTEC's implementation costs is $2.2 million for bill inserts and mailings to notify customers about facilities\_based and resale competition, and to explain the impacts of local competition. GTEC - states that similar bill inserts were required by the IRD decision, and GTEC intends to submit the bill inserts and mailings to the Commission for approval. GTEC's states that its costs for implementing local competition could be affected -by the final rules adopted by the Commission. GTEC thus recommends that the Commission review its actual implementation costs, and requests authority to seek recovery of additional costs it incurs as a result of the final local competition -rules. -\par \tab GTEC believes a surcharge on all end users is a fair method to recover its implementation costs since the Commission has ruled that local competition is in the public interest and thus all telecommunications users in the State shou -ld equally bear the costs of local competition. In addition, GTEC believes an all end user surcharge avoids GTEC subsidizing the CLCs' market entry, thus advancing the Commission's goals of economic efficiency and regulatory parity. -\par \ul \b Coalition\ulnone -\par \tab \b0 The Coalition supports LECs being given an opportunity to recover their recorded implementation costs following a review and approval process conducted by the Commission. To the extent the Commission permits recovery of implem -entation costs, the Coalition recommends that they be recovered through a surcharge on all LECs and CLCs in proportion to the number of access lines they serve. -\par \tab The Coalition opposes the Commission pre\_approving the LECs' estimated implementation costs for two reasons. First, the Coalition believes that the LECs' cost estimates are speculative since they are forecasts. Second, the Coali -tion believes the LECs have overstated their implementation costs by including costs the LECs would have incurred in any event. In particular, the Coalition states that GTEC is not entitled to recover costs for customer notification since t -his is a marketing cost, not an implementation cost. The Coalition states that all LECs and CLCs will provide information about their services to customers. In addition, the Coalition states that all LECs and CLCs are required to provide i -nformation about the prices, terms, and conditions of their basic exchange service pursuant to Universal Service rules. The Coalition states that CLCs will not be allowed to pass along these costs, and neither should the LECs. -\par \ul \b TURN\ulnone -\par \tab \b0 TURN opposes LECs recovering implementation costs for several reasons. First, TURN finds the LECs' proposals provide them with an incentive to drive up implementation costs in order to impede competition. Second, TURN believe -s that the LECs benefit from the opening of the local exchange market to competition since the LECs may in turn be allowed into the interLATA market; hence the LECs should bear the implementation costs, not the ratepayers. Third, TURN state -s that the CLCs must bear all of their own implementation costs, and the LECs will be given an unfair competitive advantage if they are able to recover their implementation costs from ratepayers. Finally, TURN opposes GTEC's recovery of cos -ts for customer notification since TURN considers this a marketing cost, not an implementation cost. TURN states that Universal Service rules require that all LECs and CLCs provide information to their customers about the prices, terms, and - conditions of their basic exchange service. TURN states that CLCs will not be allowed to pass along these costs, and neither should the LECs. -\par \tab If the Commission decides to allow LECs to recover implementation costs, TURN supports the costs being recovered via a surcharge on all local exchange providers in proportion to the number of lines they serve. -\par \ul \b DRA\ulnone -\par \tab \b0 DRA opposes allowing the LECs to recover any costs for implementing local exchange competition. DRA believes that the LECs' costs will be offset by the benefits the LECs will receive by being allowed to compete in each other's - service territories and ultimately being allowed into the interLATA market as a result of local exchange competition. -\par \tab DRA also finds the LECs' requests to be one sided since they call for the ratepayers to absorb all of the costs but share none of the profits the LECs may realize as a result of local competition. DRA notes that CLCs will also hav -e their own implementation costs for which they have no guarantee of recovery. DRA thus sees the LECs being given an unfair advantage if they were guaranteed recovery of their implementation costs while the CLCs were not. -\par \tab If the Commission allows the LECs to recover implementation costs, DRA recommends that the Commission first review the LECs' actual implementation costs and then authorize their recovery via a surcharge on the ratepayers of the LEC - that incurred the costs. In addition, DRA recommends that the costs attributable to a specific service, such as number portability, resale, or interconnection, should be recovered in the rates charged to the purchasers of those services, a -nd not from a general surcharge applied to all end users or a specific company's ratepayers. Finally, DRA supports setting a separate phase for a generic review of number exhaust and code opening issues. -\par \b C. \ul Discussion\ulnone -\par \tab \b0 The LECs' request to recover implementation costs raise issues as to (1) what costs the LECs will incur in connection with implementing the Commission's local competition rules, and (2) whether, how, or to what extent the LECs -should be compensated for such costs. -\par \tab Merely because a LEC is expected to incur additional costs as part of providing service, there is no automatic entitlement that it be made whole for such costs on a dollar\_for\_dollar basis. In a competitive market, firms are not -guaranteed -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl240 \slmult1 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 recovery of specific costs on a dollar\_for\_dollar basis. Instead, competitive firms must recover their costs through the normal course of business by competing for greater sales or by being more efficient. -\par \tab It would send an inappropriate signal to the LECs if we were merely to preapprove any of their estimated expenses. The LECs should be financially responsible for the consequences of their management decisions on how to implement c -ompetition and should have the incentive to be as efficient as possible in implementing competition. Guaranteed preapproval negates the incentives of the LECs to manage its implementation costs efficiently. -\par \tab We recognize, however, that the LECs will need to perform various activities as outlined in their testimony to implement the infrastructure for local exchange competition and that some level of costs will be incurred by the LECs - associated with these activities. Moreover, we expect society as a whole to benefit from the implementation of local exchange competition. Accordingly, we conclude that reasonably incurred costs to implement competitive local exchange s -ervice are appropriate, and it is not unreasonable that end\_users pay for such costs. -\par \tab The LECs' proposal for an end\_user surcharge has the appeal of spreading any implementation costs among all customers who are beneficiaries of a competitive market including customers of the CLCs. We have imposed end\_user surcha -rges in the past for certain limited purposes where there is a demonstrated public interest in doing so. Moreover, the LECs will institute the technical infrastructure for local exchange competition not only for their own use but also to pe -rmit CLCs to compete in the local -\par \pgnstarts1 \pgnrestart \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 exchange market and allow all customers to benefit from competition. -\par \tab We do not find, however, that the cost estimates presented by Pacific and GTEC are sufficiently reliable as a measure of the amount which the LECs will incur for each of the activities listed. The LECs admit that the actual costs w -hich will be incurred are subject to great uncertainty. Accordingly, we cannot treat the estimates with any degree of reliability as a basis for quantifying any prospective recovery at this time. -\par \tab We shall consider establishing an end\_user surcharge for certain reasonably incurred implementation costs at a later date in either this proceeding or the NRF proceeding when more reliable cost data is available. The LECs will ha -ve to demonstrate that the costs they seek to recover provide benefits to the public interest and are consistent with our general policy for establishing end\_user surcharges. We will not preapprove recovery of any specified amount of imple -mentation costs for Pacific or GTEC at this time. We will, however, authorize Pacific and GTEC each to establish a memorandum account to record actual implementation costs incurred on and after January 1, 1996, the date when local exchange -competition was officially instituted. -\par \tab The authorization to track recorded costs should not be construed as an assurance that recorded costs will automatically be subject to recovery through a surcharge. We will direct the LECs to file a report by January 1, 1997 provi -ding the recorded balance in the memorandum account broken down by the major categories corresponding to the estimated implementation costs presented in the testimony in Phase II. The ALJ will establish a further schedule for considering th -e issue of compensation, if any, for implementation costs in a later phase of this proceeding or in the NRF. We shall then consider what amounts, if any, should be subject to recovery through a end\_user surcharge. The LECs are placed on -notice that they will be responsible for justifying the reasonableness and consumer benefits of any -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql -\sl360 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart amounts which they seek to recover through an end\_user surcharge. We will not guarantee or preapprove recovery of any implementation costs at this time. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \ql \sl360 \tx1440 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \ul \b Findings of Fact\ulnone -\par \tab -{\tc -{\v 1.\tab The initial rules for local competition adopted in } -{\v \tcf99 }}\b0 1.\tab The initial rules for local competition adopted in D.95\_07\_054 set March 1, 1996 as the implementation date for the competitive bundled resale of local exchange service within the service territories of Pacific and - GTEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 2.\tab Pacific and GTEC filed proposed tariffs for bundled } -{\v \tcf99 }} 2.\tab Pacific and GTEC filed proposed tariffs for bundled resale on October 2, 1995. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 3.\tab The determination of TSLRIC\_based rates for resale } -{\v \tcf99 }} 3.\tab The determination of TSLRIC\_based rates for resale service is yet to be made in the OANAD proceeding. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 4.\tab Pacific's proposed 1RL wholesale tariff provides a basic } -{\v \tcf99 }} 4.\tab Pacific's proposed 1RL wholesale tariff provides a basic access line, without any packaged local usage, which can be resold by a CLC to either business or residential customers throughout Pacific's territory. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 5.\tab Pacific's proposed 1RL rate of $10.32 coincides with its } -{\v \tcf99 }} 5.\tab Pacific's proposed 1RL rate of $10.32 coincides with its retail measured 1MB rate. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 6.\tab GTEC's proposed wholesale rate of $25.92 plus usage } -{\v \tcf99 }} 6.\tab GTEC's proposed wholesale rate of $25.92 plus usage charges is substantially higher than GTEC's retail rates of $17.25 for 1FR, $10.00 for 1MR, and $19.22 for 1MB. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 7.\tab GTEC's proposed wholesale rate is intended to preserve } -{\v \tcf99 }} 7.\tab GTEC's proposed wholesale rate is intended to preserve GTEC's level of contribution from providing local exchange service, irrespective of whether such service is provided at the wholesale or retail level. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 8.\tab The LDDS "wholesale local network platform" (WLNP) } -{\v \tcf99 }} 8.\tab The LDDS "wholesale local network platform" (WLNP) concept which calls for an end\_to\_end network configuration to make the resold service appear seamless to the end user may be a worthwhile long\_term goal. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 9.\tab Certain current features of the LECs' provisional } -{\v \tcf99 }} 9.\tab Certain current features of the LECs' provisional wholesale offerings would be technically inferior to the LECs' retail offerings. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart -{\tc -{\v 10.\tab AT&T presented an overall quantification of the avoided } -{\v \tcf99 }}10.\tab AT&T presented an overall quantification of the avoided retailing costs included in LEC retail rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 11.\tab AT&T used a "tops down" analysis of recorded FCC } -{\v \tcf99 }}11.\tab AT&T used a "tops down" analysis of recorded FCC accounting data to quantify the avoided retailing costs reflected in Pacific's and GTEC's proposed wholesale rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 12.\tab Based upon its quantification of avoided retailing costs, } -{\v \tcf99 }}12.\tab Based upon its quantification of avoided retailing costs, AT&T computed a downward adjustment of 28% from Pacific's and 24% from GTEC's retail rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 13.\tab The AT&T methodology overstates Pacific's and GTEC's } -{\v \tcf99 }}13.\tab The AT&T methodology overstates Pacific's and GTEC's avoided retail costs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 14.\tab The calculation in Appendices B and C to this decision } -{\v \tcf99 }}14.\tab The calculation in Appendices B and C to this decision which yields a wholesale discount of 17% for Pacific and 12% for GTEC provides a reasonable approximation of avoided retail costs for setting interim wholesale rates - for 1MB, local usage, ZUM, EAS, intraLATA toll, and vertical features not already included in the LECs' existing wholesale tariffs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 15.\tab The application of a 17% discount results in a wholesale } -{\v \tcf99 }}15.\tab The application of a 17% discount results in a wholesale 1MB rate of $8.57 for Pacific, and the application of a 12% discount results in a $16.91 1MB rate for GTEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 16.\tab COPT, private line, Centrex, CentraNet, directory } -{\v \tcf99 }}16.\tab COPT, private line, Centrex, CentraNet, directory assistance, operator services, and ISDN services should be authorized for resale at the existing tariffed rates for these services. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 17.\tab Vertical features covered under existing wholesale } -{\v \tcf99 }}17.\tab Vertical features covered under existing wholesale tariffs should continue to be offered for resale at rates applicable to those existing wholesale tariffs for vertical features. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 18.\tab Given that the LECs charge different rates to business } -{\v \tcf99 }}18.\tab Given that the LECs charge different rates to business and residential customers on a retail level, it would provide a more balanced competitive market for the wholesale rates for business and residence customers to refl -ect a wholesale rate differential. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 19.\tab The residential retail 1MR and 1FR rates are already set } -{\v \tcf99 }}19.\tab The residential retail 1MR and 1FR rates are already set below the direct embedded cost (DEC) submitted in IRD. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart -{\tc -{\v 20.\tab Until OANAD cost studies are finalized, there will be } -{\v \tcf99 }}20.\tab Until OANAD cost studies are finalized, there will be some uncertainty as to the TSLRIC costs of residential service and whether current residential rates are below that cost. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 21.\tab The complete revenue package associated with resale, } -{\v \tcf99 }}21.\tab The complete revenue package associated with resale, including intraLATA toll, switched access, EUCL, and vertical features allows the LECs to recover additional margin to compensate for any shortfall in residential acce -ss line revenues. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 22.\tab The functions associated with the avoided retailing costs } -{\v \tcf99 }}22.\tab The functions associated with the avoided retailing costs reflected in the LEC retail rate represent competitive elements which can be performed by the CLCs as well as the LECs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 23.\tab The franchise impacts hearings phase of this proceeding } -{\v \tcf99 }}23.\tab The franchise impacts hearings phase of this proceeding will separately address issues related to impairment in the LECs' opportunity to earn a fair return as a result of local exchange competition. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 24.\tab D.89\_10\_031 established three categories of service for } -{\v \tcf99 }}24.\tab D.89\_10\_031 established three categories of service for Pacific Bell and GTEC; Category I, for basic monopoly services; Category II for discretionary or partially competitive services for which the LEC retains signif -icant (though perhaps declining) market power; and Category III for services where the LEC retains insignificant market power or state jurisdiction has been preempted. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 25.\tab The lack of true number portability provides a } -{\v \tcf99 }}25.\tab The lack of true number portability provides a competitive disadvantage to facilities\_based CLCs relative to Pacific and GTEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 26.\tab Pacific and GTEC possess dominant market power in their } -{\v \tcf99 }}26.\tab Pacific and GTEC possess dominant market power in their local exchange market even though legal barriers to market entry have been lifted. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 27.\tab Pricing flexibility for reclassified Category II tariffed } -{\v \tcf99 }}27.\tab Pricing flexibility for reclassified Category II tariffed services will enable Pacific and GTEC to lower prices and bring the benefits of competition to California once applicable price floors are determined and approved -. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 28.\tab Category II pricing flexibility prevents the LECs from } -{\v \tcf99 }}28.\tab Category II pricing flexibility prevents the LECs from charging anticompetitive prices because (1) Category II price floors, which include imputed contributions for monopoly building blocks, prevent LECs from pricing bel -ow cost and engaging in price -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 squeezes against their competitors; and (2) Category II price caps limit the maximum amount LECs may charge. -\par \tab -{\tc -{\v 29.\tab In D.94\_09\_065, the Commission required that before a LEC } -{\v \tcf99 }}29.\tab In D.94\_09\_065, the Commission required that before a LEC may exercise pricing flexibility for Category II services, it must first establish a price floor for the service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 30.\tab In D.95\_04\_073, the Commission identified two criteria } -{\v \tcf99 }}30.\tab In D.95\_04\_073, the Commission identified two criteria for deciding whether to recategorize a service from Category I to Category II: (1) whether sufficient competition exists within the market, and (2) whether the LE -Cs have submitted cost study data sufficient to establish price floors required for Category II pricing flexibility. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 31.\tab Allowing pricing flexibility for reclassified Category II } -{\v \tcf99 }}31.\tab Allowing pricing flexibility for reclassified Category II tariffed local exchange services only after cost studies have been performed and adopted by the Commission mitigates against the anticompetitive exercise of marke -t power by Pacific and GTEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 32.\tab The process of establishing TSLRIC costs which can be } -{\v \tcf99 }}32.\tab The process of establishing TSLRIC costs which can be used to develop Category II price floors is currently underway in the OANAD proceeding. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 33.\tab D.94\_09\_065 required that customer specific LRICs be } -{\v \tcf99 }}33.\tab D.94\_09\_065 required that customer specific LRICs be calculated on an appropriate uniform per\_unit basis (e.g., per foot, per line) and that the per\_unit LRICs need to be established in a compliance filing that sets -forth the calculation and cost basis for the unit price. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 34.\tab Public policy payphones and E\_911 services have unique } -{\v \tcf99 }}34.\tab Public policy payphones and E\_911 services have unique public policy and safety characteristics. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 35.\tab Basic Service Elements represent bottleneck elements of } -{\v \tcf99 }}35.\tab Basic Service Elements represent bottleneck elements of the LECs' networks and do not exhibit the characteristics of partially competitive services. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 36.\tab There is customer demand for bundled service packages. } -{\v \tcf99 }}36.\tab There is customer demand for bundled service packages. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 37.\tab The California Business and Professions Code } -{\v \tcf99 }}37.\tab The California Business and Professions Code Section\~16727 defines tying arrangements as a requirement that as a condition of purchasing one product, a buyer must purchase a different (or tied) product. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 38.\tab Requiring Pacific and GTEC to provide the components of } -{\v \tcf99 }}38.\tab Requiring Pacific and GTEC to provide the components of their bundled services on an individual, stand\_alone basis is intended to allow customers to purchase only those services they want or need. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 39.\tab A bundled service offering would constitute an unlawful } -{\v \tcf99 }}39.\tab A bundled service offering would constitute an unlawful tying if customers were compelled to purchase services they do not want in order to obtain local exchange service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 40.\tab The Commission's imputation safeguards help assure that } -{\v \tcf99 }}40.\tab The Commission's imputation safeguards help assure that monopoly elements do not subsidize competitive products. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 41.\tab The Commission in D.94\_09\_065 precluded Pacific and GTEC } -{\v \tcf99 }}41.\tab The Commission in D.94\_09\_065 precluded Pacific and GTEC from entering into contracts that offered Category I services at other than tariffed rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 42.\tab The service territories of Pacific and GTEC constitute a } -{\v \tcf99 }}42.\tab The service territories of Pacific and GTEC constitute a geographically diverse market; the companies may have different costs to serve their different geographic regions. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 43.\tab The existing LEC rate structure of service\_territory\_wide } -{\v \tcf99 }}43.\tab The existing LEC rate structure of service\_territory\_wide average rates may not accurately reflect the costs of serving many of California's different geographic regions. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 44.\tab Geographic deaveraging of rates based upon Commission\_} -{\v \tcf99 }}44.\tab Geographic deaveraging of rates based upon Commission\_approved cost studies and price determination would promote efficient pricing and provide correct economic signals to both customers and competitors. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 45.\tab Without the geographic deaveraging of LEC rates, the } -{\v \tcf99 }}45.\tab Without the geographic deaveraging of LEC rates, the facilities\_based CLCs may be encouraged to enter low cost areas protected from competition by the umbrella of averaged LEC prices, and dissuaded from serving high cos -t areas where the LECs must charge below their costs due to geographically averaged LEC prices. \tab -{\tc -{\v 46. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab Once LEC rates are geographically deaveraged and prices } -{\v \tcf99 }}46. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab Once LEC rates are geographically deaveraged and prices are allowed to more closely match -costs of service, CLCs will have a greater incentive to compete in new geographic markets which were not previously cost effective to serve. -\par -{\tc -{\v 47.\tab Cost studies being prepared in the OANAD and the } -{\v \tcf99 }}47.\tab Cost studies being prepared in the OANAD and the Universal Service proceedings will not necessarily provide all the necessary information needed to determine geographically deaveraged costs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 48.\tab The Universal Service High Cost Voucher Fund will ensure } -{\v \tcf99 }}48.\tab The Universal Service High Cost Voucher Fund will ensure that LECs and CLCs are compensated for the cost of providing basic residential service in high cost areas. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 49.\tab Since facilities\_based CLCs will be able to target } -{\v \tcf99 }}49.\tab Since facilities\_based CLCs will be able to target specific geographic regions and price their service accordingly, they will have a competitive advantage until geographically deaveraged rates are implemented for the L -ECs and CLC resellers. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 50.\tab PU Code \{ 453(c) prohibits public utilities from } -{\v \tcf99 }}50.\tab PU Code \{ 453(c) prohibits public utilities from discriminating between ratepayers who are similarly situated. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 51.\tab Pacific and GTEC will need to perform various activities } -{\v \tcf99 }}51.\tab Pacific and GTEC will need to perform various activities to implement the infrastructure for local exchange competition and will incur costs in the process. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 52.\tab Pacific projects $32,474,000 for its costs of } -{\v \tcf99 }}52.\tab Pacific projects $32,474,000 for its costs of implementing local exchange competition, excluding Pacific's costs associated with NXX code opening and accelerated NPA exhausts. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 53.\tab GTEC projects $7.2 million for its costs of implementing } -{\v \tcf99 }}53.\tab GTEC projects $7.2 million for its costs of implementing local exchange competition. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 54.\tab The LECs will institute the technical infrastructure to } -{\v \tcf99 }}54.\tab The LECs will institute the technical infrastructure to implement local exchange competition not only for their own benefit but also to permit CLCs to compete in the local exchange market. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 55.\tab Customers as a whole will benefit from the implementation } -{\v \tcf99 }}55.\tab Customers as a whole will benefit from the implementation of competition for local exchange service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 56.\tab In a competitive market, firms are not guaranteed } -{\v \tcf99 }}56.\tab In a competitive market, firms are not guaranteed recovery of specific costs on a dollar\_for\_dollar basis. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 57.\tab It would be a disproportionate burden on the LECs and } -{\v \tcf99 }}57.\tab It would be a disproportionate burden on the LECs and their customers if there was no means for implementation costs to be shared among other competitive local carriers. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 -{\tc -{\v 58.\tab Guaranteeing Pacific and GTEC recovery of their estimated } -{\v \tcf99 }}58.\tab Guaranteeing Pacific and GTEC recovery of their estimated implementation costs provides them with little incentive to manage these costs in an efficient manner. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 59.\tab Pacific's and GTEC's current implementation cost } -{\v \tcf99 }}59.\tab Pacific's and GTEC's current implementation cost estimates are based on uncertain outcomes in the local exchange proceeding, and therefore are subject to change. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 60.\tab Under the adopted NRF price cap formula, the LECs absorb } -{\v \tcf99 }}60.\tab Under the adopted NRF price cap formula, the LECs absorb unanticipated cost increases while reaping the productivity rewards for being more efficient. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 61.\tab A rate center is a physical point within an exchange from } -{\v \tcf99 }}61.\tab A rate center is a physical point within an exchange from which distance to another exchange is measured to identify whether a particular call will be rated as a long distance, toll, or local call. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 62.\tab In D.95\_07\_054, CLCs were ordered to match the LECs' } -{\v \tcf99 }}62.\tab In D.95\_07\_054, CLCs were ordered to match the LECs' existing rate centers for an interim period pending the resolution of CLC rating area designation in Phase II hearings. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 63.\tab While CLCs use of NXX codes which spanned several LEC } -{\v \tcf99 }}63.\tab While CLCs use of NXX codes which spanned several LEC rating areas could result in customer confusion and misrated calls, this problem could be mitigated through a consumer awareness program. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 64.\tab The negative impacts of misrated calls and customer } -{\v \tcf99 }}64.\tab The negative impacts of misrated calls and customer confusion due to the use of inconsistent rating areas would be experienced chiefly by the incumbent LEC customers and could create a competitive disadvantage for the LE -Cs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 65.\tab The misrating caused by the use of disparate rating areas } -{\v \tcf99 }}65.\tab The misrating caused by the use of disparate rating areas could require implementation of alternative measures to the ability to measure local versus toll traffic. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 66.\tab If each CLC were allowed its own rating areas, the } -{\v \tcf99 }}66.\tab If each CLC were allowed its own rating areas, the designation of a call as local or toll would change each time a call was placed to a customer of a different CLC. Absent the timely implementation of mitigation measure -s, the result would be customer confusion as to whether they are making a local or toll call. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 67.\tab Requiring CLCs to use rate centers consistent with } -{\v \tcf99 }}67.\tab Requiring CLCs to use rate centers consistent with established LEC rate centers avoids such customer confusion. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 68.\tab Allowing CLCs to use different rating areas could } -{\v \tcf99 }}68.\tab Allowing CLCs to use different rating areas could adversely impact the E\_911 network, unless special trunking is provided to assure proper routing of E\_911 calls. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 69.\tab Consistent rate centers require a CLC to open a separate } -{\v \tcf99 }}69.\tab Consistent rate centers require a CLC to open a separate NXX in every LEC rate center in which the CLC offers service, thereby causing increased use of NXX codes and accelerated NPA exhausts. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 70.\tab Accelerated number exhaust would constrain the CLCs entry } -{\v \tcf99 }}70.\tab Accelerated number exhaust would constrain the CLCs entry into some markets due to a shortage of NXX codes, and result in additional costs and customer disruption from more frequent NPA relief measures such as area code -splits. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 71.\tab The issue of rating area consistency is only one of many } -{\v \tcf99 }}71.\tab The issue of rating area consistency is only one of many factors determining how quickly number exhaustion will occur. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 72.\tab A super rate center results by combining several } -{\v \tcf99 }}72.\tab A super rate center results by combining several contiguous incumbent LEC exchange areas, each with its own rate center, into a single CLC rate center. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 73.\tab Super rate centers would enable CLCs to obtain an NXX } -{\v \tcf99 }}73.\tab Super rate centers would enable CLCs to obtain an NXX covering a number of current LEC exchange areas, calibrated to make the number of combined rate centers as small as possible while trying to minimize number exhaust. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 74.\tab Use of super rate centers by CLCs will reduce, but not } -{\v \tcf99 }}74.\tab Use of super rate centers by CLCs will reduce, but not eliminate, the potential for number exhaust and the misrating of calls. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 75.\tab To rate a call, all carriers use a national file called } -{\v \tcf99 }}75.\tab To rate a call, all carriers use a national file called the Terminating Point Master (TPM) which identifies the rate center to which a particular NPA\_NXX number is assigned. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 76.\tab There is insufficient information on the record to } -{\v \tcf99 }}76.\tab There is insufficient information on the record to immediately implement TCG's proposal for modifying the TPM in a way that would eliminate the possibility of misrating and misbilling associated with CLCs' using inconsis -tent rate centers. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 77.\tab There is insufficient information on the record to } -{\v \tcf99 }}77.\tab There is insufficient information on the record to immediately implement super rate centers as an interim solution to the call misrating/misbilling associated with the use of inconsistent rate centers. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 78.\tab Customer confusion caused by use of inconsistent rating } -{\v \tcf99 }}78.\tab Customer confusion caused by use of inconsistent rating areas could be alleviated through information disseminated by an effective customer notification program. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 79.\tab The interim rules set forth in D.95\_07\_054 permit greater } -{\v \tcf99 }}79.\tab The interim rules set forth in D.95\_07\_054 permit greater regulatory flexibility for the CLCs in comparison to the LECs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 80.\tab The additional regulatory flexibility permitted the CLCs } -{\v \tcf99 }}80.\tab The additional regulatory flexibility permitted the CLCs provides them with certain limited competitive advantages over the LECs which are counterbalanced by the overall market dominance which the LECs will continue to h -ave for some time. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 81.\tab Stronger regulatory requirements for the LECs compared to } -{\v \tcf99 }}81.\tab Stronger regulatory requirements for the LECs compared to the CLCs is warranted by the current market dominance of the LECs compared to the CLCs and promotes the goal of overall regulatory symmetry. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \ul \b Conclusions of Law\ulnone -\par \f1 \fs24 \tab -{\tc -{\v 1.\tab Interim wholesale rates that will allow competition for } -{\v \tcf99 }}\b0 1.\tab Interim wholesale rates that will allow competition for resale of bundled local exchange service should be initiated within the service territories of Pacific and GTEC effective March 31, 1996. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 2.\tab Permanent wholesale rates should not be set until } -{\v \tcf99 }} 2.\tab Permanent wholesale rates should not be set until applicable cost studies and price determinations have been finalized and approved in the OANAD proceeding. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 3.\tab Interim wholesale rates should be set in a manner which } -{\v \tcf99 }} 3.\tab Interim wholesale rates should be set in a manner which promotes economic efficiency and a level playing field among all competitors for local exchange service within the Pacific and GTEC service territories. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 4. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab Interim wholesale rates should be set in relation to the } -{\v \tcf99 }} 4. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab Interim wholesale rates should be set in relation to the cost of wholesale service for bun -dled elements and features which match as closely as possible the retail service features which the LECs currently market. -\par -{\tc -{\v 5.\tab Resale restrictions should be lifted on those retail } -{\v \tcf99 }} 5.\tab Resale restrictions should be lifted on those retail services set forth on Table 1 of this decision with exception that use and user restrictions on the resale of residential service to business customers should be maint -ained. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 6.\tab The terms and conditions under which to authorize CLC } -{\v \tcf99 }} 6.\tab The terms and conditions under which to authorize CLC resale for Centrex, Centranet, and semipublic services should be examined in Phase III of this proceeding. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 7.\tab The applicability of wholesale discounts for ISDN service } -{\v \tcf99 }} 7.\tab The applicability of wholesale discounts for ISDN service will be reexamined after the Commission has resolved A.95\_12\_043, Pacific's application to increase ISDN rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 8.\tab Restrictions on resale of existing grandfathered services } -{\v \tcf99 }} 8.\tab Restrictions on resale of existing grandfathered services should be lifted as long as resale is made to a customer currently receiving grandfathered service from the LEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 9.\tab Current use and user restrictions on Centrex and } -{\v \tcf99 }} 9.\tab Current use and user restrictions on Centrex and CentraNet should remain in place pending further examination in Phase III. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 10.\tab CLC resellers should receive reimbursement from the } -{\v \tcf99 }}10.\tab CLC resellers should receive reimbursement from the Universal Lifeline Telephone Service (ULTS) fund for the ULTS service they provide to qualified end users. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 11.\tab Pacific and GTEC have not justified adding additional } -{\v \tcf99 }}11.\tab Pacific and GTEC have not justified adding additional charges in their wholesale tariffs for usage charges associated with flat residential services and 411 calls that are within the current allowance for retail services -. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 12.\tab Simply setting wholesale rates equal to retail rates } -{\v \tcf99 }}12.\tab Simply setting wholesale rates equal to retail rates without adjustment for avoided retailing costs will unfairly overcompensate the LECs and undermine the viability of CLC resale competition. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 13.\tab Incumbent LECs as well as facilities\_based CLCs could be } -{\v \tcf99 }}13.\tab Incumbent LECs as well as facilities\_based CLCs could be placed at a competitive disadvantage in pricing their retail service if CLC resellers are able to purchase wholesale local exchange service without fairly compens -ating the LECs' cost. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 14.\tab GTEC has failed to show what LRIC is embedded within its } -{\v \tcf99 }}14.\tab GTEC has failed to show what LRIC is embedded within its proposed wholesale rate or whether the implied contribution above LRIC is reasonable. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 15.\tab GTEC's proposal to include an additional contribution } -{\v \tcf99 }}15.\tab GTEC's proposal to include an additional contribution -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 from anticipated losses in intraLATA toll revenues is contrary to the goal of setting interim wholesale rates no higher than retail rates. -\par \tab -{\tc -{\v 16.\tab Setting GTEC's interim wholesale rate higher than its } -{\v \tcf99 }}16.\tab Setting GTEC's interim wholesale rate higher than its retail rate is not the proper way to make up for any lost opportunity to generate intraLATA toll revenues. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 17.\tab Adopted wholesale rates should account for avoided retail } -{\v \tcf99 }}17.\tab Adopted wholesale rates should account for avoided retail costs (such as end\_user billing, marketing, and customer service expenses). -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 18.\tab For the purposes of setting interim wholesale rates, an } -{\v \tcf99 }}18.\tab For the purposes of setting interim wholesale rates, an approximate adjustment for avoided retailing costs through imprecise, is superior to making no adjustment at all. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 19.\tab AT&T's proposed quantification of avoided retailing costs } -{\v \tcf99 }}19.\tab AT&T's proposed quantification of avoided retailing costs should be adjusted to reflect a retail cost differential of 17% for Pacific and 12% for GTEC, and the adjusted discounts should be applied to all the wholesale se -rvices in Table 1 of this order except residential access lines, vertical features covered under existing wholesale tariffs, private lines, COPT, Centrex/CentraNet, and ISDN. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 20.\tab AT&T's proposed additional discount of 10% for specified } -{\v \tcf99 }}20.\tab AT&T's proposed additional discount of 10% for specified technical deficiencies in wholesale offerings is arbitrary and should not be adopted. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 21.\tab It is consistent with the imputation rules for price } -{\v \tcf99 }}21.\tab It is consistent with the imputation rules for price floors established in IRD to price wholesale service below the retail 1MB retail business rate as long as the wholesale price subtracts only those avoided retailing co -sts which represent competitive functions. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 22.\tab It is appropriate to establish wholesale discounts for } -{\v \tcf99 }}22.\tab It is appropriate to establish wholesale discounts for the 1MR or 1FR rates of 10% for Pacific and 7% for GTEC to arrive at reasonable residential wholesale rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 23.\tab In considering whether Pacific and GTEC will be fairly } -{\v \tcf99 }}23.\tab In considering whether Pacific and GTEC will be fairly compensated for wholesale residential service, it is appropriate to consider all of the revenues which the LECs receive associated with reselling residential service -, not just the revenues from the access line itself. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 24.\tab Pricing wholesale residential service at discounts of 10% } -{\v \tcf99 }}24.\tab Pricing wholesale residential service at discounts of 10% and 7% below the residential retail rates of Pacific and GTEC, respectively, would not constitute an unlawful confiscation of property as long as the LEC is able -to be fairly compensated from the total package of revenues it receives. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 25.\tab Pacific and GTEC should be allowed to recover from CLC } -{\v \tcf99 }}25.\tab Pacific and GTEC should be allowed to recover from CLC resellers for nonrecurring charges associated with transferring customers' accounts from the LEC to a CLC reseller. On an interim basis, such nonrecurring charges s -hould be limited to the LECs' existing retail rates for transfers of customer accounts who remain at the same physical location, less a 17% discount for Pacific and a 12% discount for GTEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 26.\tab The issue of appropriate nonrecurring charges for Pacific } -{\v \tcf99 }}26.\tab The issue of appropriate nonrecurring charges for Pacific and GTEC should be examined as part of Phase III of this proceeding. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 27.\tab The interim LEC wholesale rates adopted in this order } -{\v \tcf99 }}27.\tab The interim LEC wholesale rates adopted in this order should be superseded by wholesale rates established in the OANAD proceeding once those rates are finalized and approved. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 28.\tab At least during the initial transition to a competitive } -{\v \tcf99 }}28.\tab At least during the initial transition to a competitive marketplace, these interim rules must retain certain restrictions on the LECs' pricing flexibility in recognition of their market dominance to guard against anticom -petitive pricing practices. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 29.\tab The progress of competition should be monitored on an } -{\v \tcf99 }}29.\tab The progress of competition should be monitored on an ongoing basis to allow for the possible removal of any unnecessary -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1440 \margbsxn1680 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ***** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ***** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart regulatory restrictions on either the LECs or the CLCs when justified to allow the forces of competition to work. -\par \tab -{\tc -{\v 30.\tab Institution of competition for local exchange services as } -{\v \tcf99 }}30.\tab Institution of competition for local exchange services as outlined in this and previous orders creates a "partially competitive" market for many of Pacific's and GTEC's local exchanges services consistent with the defini -tion of Category II contained in D.89\_10\_031. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 31.\tab Except as specified in Table 2 in this decision, all } -{\v \tcf99 }}31.\tab Except as specified in Table 2 in this decision, all other Category I services of Pacific and GTEC should be moved to Category\~II effective March 31, 1996, since they conform to the definition of Category II services s -et forth in D.89\_10\_031. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 32.\tab Category I services reclassified to Category II by this } -{\v \tcf99 }}32.\tab Category I services reclassified to Category II by this order should be priced at their currently tariffed rates with no pricing flexibility until appropriate cost studies are completed, and Category II price floors are -adopted by the Commission. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 33.\tab The LECs should be permitted to implement pricing } -{\v \tcf99 }}33.\tab The LECs should be permitted to implement pricing flexibility for tariffed Category II services once relevant price floors are established in the OANAD proceeding for the reclassified services. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 34.\tab The restrictions on LEC pricing flexibility for } -{\v \tcf99 }}34.\tab The restrictions on LEC pricing flexibility for reclassified tariffed Category II services should not apply to customer\_specific contracts, if and only if a customer\_specific price floor has been approved and a facilit -ies\_based CLC has executed an interconnection agreement, opened one or more NXX codes, and originated or terminated traffic within the exchange served by the customer. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 35.\tab Allowing LECs to enter into contracts at below tariff } -{\v \tcf99 }}35.\tab Allowing LECs to enter into contracts at below tariff rates for reclassified Category II services within a local exchange before any facilities\_based CLC had begun to offer service within the majority of exchanges serve -d by the customer subject to the flexibly\_priced contract would give LECs an undue competitive advantage. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 36.\tab Pacific and GTEC may bundle those services moved from } -{\v \tcf99 }}36.\tab Pacific and GTEC may bundle those services moved from Category I to Category II by this decision with other Category II -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pgnstarts1 \pgnrestart and III services so long as no unlawful tying arrangements are involved. -\par \tab -{\tc -{\v 37.\tab Every Category II service that is bundled into a packaged } -{\v \tcf99 }}37.\tab Every Category II service that is bundled into a packaged offering should also be provided on an individual basis so that customers may purchase only those services they want or need at the authorized tariff price. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 38.\tab The prices for Category II services sold apart from a } -{\v \tcf99 }}38.\tab The prices for Category II services sold apart from a bundled offering should reflect the proper imputation of price floors. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 39.\tab Tying arrangements are illegal when the seller has } -{\v \tcf99 }}39.\tab Tying arrangements are illegal when the seller has sufficient economic power to restrain free competition in the tied product through the tying arrangement. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 40.\tab There is no tying arrangement under California's } -{\v \tcf99 }}40.\tab There is no tying arrangement under California's antitrust laws merely because the LECs offer customers any of their services individually or in combination with other services. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 41.\tab PU Code \{\{ 453, 532, and 2882.5 together require LECs to } -{\v \tcf99 }}41.\tab PU Code \{\{ 453, 532, and 2882.5 together require LECs to demonstrate, prior to the offering of a package, the imputed underlying costs of any Category II service bundled with a Category\~III or nonregulated service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 42.\tab Pacific and GTEC should not be authorized to bundle the } -{\v \tcf99 }}42.\tab Pacific and GTEC should not be authorized to bundle the remaining Category I services with Category II and/or III services. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 43.\tab The Commission should lift its prohibition on offering } -{\v \tcf99 }}43.\tab The Commission should lift its prohibition on offering certain local exchange services in customer specific contracts that was established in D.88\_09\_059. Such contracts should be allowed if they are consistent with t -he requirements of this Decision and GO 96\_A contract rules adopted in IRD. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 44.\tab Pacific and GTEC may not enter into contracts which } -{\v \tcf99 }}44.\tab Pacific and GTEC may not enter into contracts which include Category I services at other than tariffed rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 45.\tab Pacific and GTEC should be authorized to file advice } -{\v \tcf99 }}45.\tab Pacific and GTEC should be authorized to file advice letters for customer\_specific contracts that include bundled Category II services for which no service\_wide floors and ceilings have been approved. These advice let -ters should comply with GO\~96\_A. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 46.\tab Pacific and GTEC should be granted pricing flexibility in } -{\v \tcf99 }}46.\tab Pacific and GTEC should be granted pricing flexibility in customer\_specific contracts for reclassified Category II services -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 for which customer specific price floors have been submitted and approved and where a facilities\_based CLC has executed an interconnection agreement, opened one or more NXX codes, and or -iginated or terminated traffic within the exchange served by the customer. -\par \tab -{\tc -{\v 47.\tab The price floor for any package should be the sum of the } -{\v \tcf99 }}47.\tab The price floor for any package should be the sum of the price floors of the individual parts of the package (including any imputation requirement in setting the price floors). -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 48.\tab When packaging residential services, the existing } -{\v \tcf99 }}48.\tab When packaging residential services, the existing imputation rules should apply. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 49.\tab The subsidy payment should be included in the revenues } -{\v \tcf99 }}49.\tab The subsidy payment should be included in the revenues received in determining whether the price of a package is above the price floor. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 50.\tab The LECs service\_territory\_wide average retail and } -{\v \tcf99 }}50.\tab The LECs service\_territory\_wide average retail and wholesale rates should remain in place until cost studies by relevant geographic region have been completed and approved by the Commission. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 51.\tab The venue for the development of LEC cost studies and } -{\v \tcf99 }}51.\tab The venue for the development of LEC cost studies and pricing specifically aimed at geographic deaveraging should be set by subsequent Commission action. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 52.\tab The assigned ALJ in the venue for geographic deaveraging } -{\v \tcf99 }}52.\tab The assigned ALJ in the venue for geographic deaveraging cost studies should determine a procedural schedule for the preparation, review, and approval of cost studies and pricing which can be used for adoption of geograp -hically deaveraged wholesale and retail rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 53.\tab Any rate deaveraging should be offered to ratepayers on a } -{\v \tcf99 }}53.\tab Any rate deaveraging should be offered to ratepayers on a nondiscriminatory basis so that all ratepayers in the same geographically defined service area should pay the same rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 54.\tab Once appropriate geographically deaveraged costs have } -{\v \tcf99 }}54.\tab Once appropriate geographically deaveraged costs have been approved, the LECs may be authorized to implement geographically deaveraged prices by specific Commission action. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 55.\tab LECs should not have to show some minimum level of market } -{\v \tcf99 }}55.\tab LECs should not have to show some minimum level of market share loss or other related measures of competition before being authorized to implement geographic deaveraging. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 56.\tab LECs' deaveraged prices should be treated as Category II } -{\v \tcf99 }}56.\tab LECs' deaveraged prices should be treated as Category II services and subject to geographically deaveraged price floors and caps. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 57.\tab The requirement for advance notice of LEC rate decreases } -{\v \tcf99 }}57.\tab The requirement for advance notice of LEC rate decreases for Category II services should be changed from 10 days to 5 days. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 58.\tab The requirement for a Commission resolution for approval } -{\v \tcf99 }}58.\tab The requirement for a Commission resolution for approval of LEC customer\_specific contracts should be eliminated effective March 31, 1996, except where more than a ministerial function is involved. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 59.\tab Reasonably incurred costs to implement local exchange } -{\v \tcf99 }}59.\tab Reasonably incurred costs to implement local exchange competition are appropriate costs of service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 60.\tab It is reasonable that end\_users' rates reflect some } -{\v \tcf99 }}60.\tab It is reasonable that end\_users' rates reflect some recognition of costs to implement local exchange competition. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 61.\tab Pacific and GTEC should each be authorized to establish a } -{\v \tcf99 }}61.\tab Pacific and GTEC should each be authorized to establish a memorandum account to record actual implementation costs incurred on and after January 1, 1996. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 62.\tab Pacific and GTEC should each file a report by January 1, } -{\v \tcf99 }}62.\tab Pacific and GTEC should each file a report by January 1, 1997, providing the recorded balance in the memorandum account broken down by the major categories corresponding to the estimated implementation costs presented in - the testimony in Phase II. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 63.\tab A schedule should be established in a later phase of this } -{\v \tcf99 }}63.\tab A schedule should be established in a later phase of this or some other appropriate proceeding for considering the issue of compensation for implementation costs, including a review of recorded implementation costs and c -onsideration of what amounts, if any, should be subject to recovery through an end\_user surcharge. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 64.\tab The LECs will be responsible for justifying the } -{\v \tcf99 }}64.\tab The LECs will be responsible for justifying the reasonableness of any amounts which they seek to recover through an end user surcharge. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 65.\tab No cost recovery for implementation costs should be } -{\v \tcf99 }}65.\tab No cost recovery for implementation costs should be approved at this time. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 66.\tab The ultimate disposition of the issue of whether CLCs } -{\v \tcf99 }}66.\tab The ultimate disposition of the issue of whether CLCs should continue to conform with existing LEC rating areas should be determined by the record developed in Phase III of this proceeding -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid **** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 in conjunction with formulating an integrated statewide policy on number usage and resolving relevant technical issues through workshops. -\par \tab -{\tc -{\v 67.\tab CLCs should not be required to open a separate NXX code } -{\v \tcf99 }}67.\tab CLCs should not be required to open a separate NXX code in every rating center in which they offer service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 68.\tab CLCs should not be permitted to offer local calling areas } -{\v \tcf99 }}68.\tab CLCs should not be permitted to offer local calling areas smaller than the LECs' 12\_mile local calling areas. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 69. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab The issue of NXX code opening costs should be considered } -{\v \tcf99 }}69. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab The issue of NXX code opening costs should be considered in Phase III of this proceeding -\par -{\tc -{\v 70.\tab Pacific should establish a separate memorandum account to } -{\v \tcf99 }}70.\tab Pacific should establish a separate memorandum account to track the number of NXX codes opened for each CLC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 71.\tab Except for the specific changes we adopt herein, there is } -{\v \tcf99 }}71.\tab Except for the specific changes we adopt herein, there is no basis to grant any remaining changes in pricing rules for the LECs or CLCs at this time. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab -{\tc -{\v 72.\tab The progress of competition within the local exchange } -{\v \tcf99 }}72.\tab The progress of competition within the local exchange market should be monitored and rules governing the LECs and/or CLCs may be revised over time as conditions warrant. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \qc \ul \b O R D E R\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 -\par \tab \tab IT IS ORDERED\b0 that: -\par \f1 \fs24 \tab 1.\tab Pacific Bell (Pacific) and GTE California (GTEC) shall each file a tariff in accordance with General Order (GO) 96\_A by March 21, 1996, to become effective on March 31, 1996, which provides for the competitive re -sale of local exchange service to certificated competitive local carrier (CLC) resellers in conformance with the prices, terms, and conditions set forth in each of their respective proposed resale tariff filings dated October 2, 1995, except - for the modifications set forth below. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 2.\tab CACD shall have until April 15, 1996, to review the tariffs and notify Pacific and GTEC of any deficiencies in their filings. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 3.\tab Pacific and GTEC shall file revised tariffs by September\~1, 1996, offering their optional toll calling plans for CLC resale. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 4.\tab For residential customers, Pacific and GTEC shall establish separate wholesale tariff rates equal to their current residential 1MR and 1FR retail rates with an adj -ustment for avoided retailing costs of 10% for Pacific and 7% for GTEC. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 5.\tab The tariffed wholesale rate for 1MB service for Pacific shall be $8.57. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 6.\tab The tariffed wholesale rate for 1MB service for GTEC shall be $16.91. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 7.\tab Pacific and GTEC shall amend their proposed wholesale tariffs to include all services within the wholesale offering as set forth on Table 1 of this decision and sh -all apply the 17% discount (for Pacific) and 12% discount (for GTEC) to those services except for residential access lines, vertical features covered under existing wholesale tariff, private lines, COPT, Centrex/CentraNet, ISDN, directory as -sistance, and operator services. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 8.\tab Pacific and GTEC shall offer ISDN, Centrex/CentraNet, private line, directory assistance and operator services and COPT for resale at existing tariffed rates, and -shall offer all vertical features not covered under existing wholesale tariff rates at 17% and 12% discounts, respectively, from retail rates. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 9.\tab Pacific shall provide by March 18, 1996 intraLATA toll data to CACD necessary to compute the wholesale rates for intraLATA toll. Pacific and CACD shall meet and c -onfer on the calculation of the discounts to enable Pacific to make a compliance filing by March 29, 1996, regarding the appropriate intraLATA toll wholesale rates. Such filing will become effective on March 31, 1996. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 10.\tab Pacific shall modify its billing system to enable it to offer intraLATA toll custom calling plans and shall file an amended -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 tariff offering such plans by September 1, 1996. -\par \tab 11.\tab The local exchange carriers (LECs) shall make intraLATA toll service available for resale. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 12.\tab The local exchange services offered within Pacific's and GTEC's tariffed resale rate shall be expanded to include the services set forth on Table 1 of this decisio -n. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 13.\tab Pacific shall limit any nonrecurring charges billed to CLC resellers to an amount no higher than the existing retail tariff charges found in its tariff schedule CA -L PUC NO. A3 of $5 per residential line and $7 per line for all other services, less the avoided cost discount of 17%. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 14.\tab GTEC shall limit any nonrecurring charges billed to CLC resellers to an amount no higher than the existing retail tariff charges found in its tariff schedule CAL P -UC No. A\_41 of $34.50 per business line and $17.25 per residential line, less a discount of 12% for avoided retail costs. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 15.\tab Effective March 31, 1996, services shall be classified in Category I and II as set forth in Table 2 of this decision. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 16. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab The LECs shall be allowed to offer flexible prices under customer\_specific contracts for -reclassified Category II services -\par effective March 31, 1996, subject to the filing of advice letters which include customer\_specific price floors and showing of facilities\_based competition. -\par \tab 17.\tab Pacific's and GTEC's Category I services shall be reclassified as Category II effective March 31, 1996, except for those specified in Table 1 of this decision. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 18. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab A workshop, coordinated by Commission Advisory and Compliance Division (CACD), shall be co -nvened beginning at 8:00\~a.m. on March 25, 1996, to address the following topics: -\par \sect \sbknone \pgncont -{\headerr \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par } -{\headerl \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid ** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pard \li2016 \ri2448 \fi-2016 \ql \sl240 \slmult1 \tx720 \tx1440 \tx2016 \hyphpar1 \tab a. T -he feasibility of implementing TCG's proposal to modify the Terminating Point Master in order to allow for inconsistent rating areas without the attendant misrating and misbilling problems. -\par -\par \tab \tab b. The feasibility of implementing the super rate center proposal. -\par -\par \tab \tab c. Means of assuring integrity of E\_911 service and the ability to measure local traffic if existing rating area rules are changed. -\par -\par \tab \tab d. The steps and timetable for implementing a customer awareness program regarding new procedures for determining how calls will be rated as CLCs establish NXX rating areas which differ from those of the LECs. -\par -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 19.\tab CACD shall prepare a workshop report as scheduled by subsequent ALJ ruling. To the extent workshop participants are unable to reach agreement on particular details o -f the report, they should be authorized to file separate comments dissenting from the report. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 20. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab Phase III of this proceeding shall consider the results of the workshop report and determi -ne appropriate mitigation measures to be adopted, including a timetable for customer awareness programs to educate customers about the new procedures for rating calls involving CLC customers; and to consider any other appropriate mitigation -measures to deal with any call misrating or -\par other negative consequences which may result from different NXX rating areas between LECs and CLCs. -\par \tab 21.\tab No CLC shall begin to serve customers from NXX rating areas which are inconsistent with those of the LEC without first notifying CACD and providing assurance that adequate provision has been made to ensure the integrity of -E\_911 service. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard -\li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab 22.\tab Pacific and GTEC shall establish a memorandum account to record actual implementation costs incurred on and after January 1, 1996, and shall file a report setting forth actua -l implementation costs recorded in the memorandum account effective January 1, 1997. -\par \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \tab \tab This order is effective today. -\par \sect \sbknone \pgncont -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl360 \tx720 \tx1440 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \tab Dated March 13, 199 -6, at San Francisco, California. -\par -\par -\par -\par \tab \tab DANIEL Wm. FESSLER -\par \tab \tab President -\par \tab \tab P. GREGORY CONLON -\par \tab \tab JESSIE J. KNIGHT, JR. -\par \tab \tab Commissioners -\par -\par -\par I will file a joint written dissent. -\par -\par /s/ HENRY M. DUQUE -\par Commissioner -\par -\par /s/ JOSIAH L. NEEPER -\par Commissioner -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ i - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ i - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 -\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx1440 \tx5616 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 -\qc \ul \b I N D E X\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 -\par -\par \b0 \ul \b Subject\ulnone \ul Page\ulnone -\par -\par -\par \b0 OPINION ...................................................... 2 -\par -\par I. Introduction .......................................... 2 -\par -\par II. Procedural Background ................................. 3 -\par -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2304 \hyphpar1 III.\tab Competitive Resale of Local Exchange Service .......... 6 -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \tab \tab A.\tab Introduction ...................................... 6 -\par \tab \tab B.\tab Parties' Positions ................................ 6 -\par \tab \tab C.\tab Discussion ........................................ 20 -\par \tab \tab \tab 1. General Program for Adopting -\par \tab \tab \tab Resale Rates .................................. 20 -\par \tab \tab \tab 2. Resale Restrictions ........................... 22 -\par \tab \tab \tab 3. Adopted Wholesale Rates ....................... 28 -\par -\par IV.\tab Retail Pricing Flexibility ............................ 36 -\par \tab \tab A. \tab Overview .......................................... 36 -\par \tab \tab \tab 1.\tab Parties' Positions ............................ 37 -\par \tab \tab \tab 2.\tab Discussion .................................... 44 -\par \tab \tab B.\tab Recategorization of Category I -\par \tab \tab \tab Services to Category II ........................... 49 -\par \tab \tab \tab 1.\tab Parties' Positions ............................ 49 -\par \tab \tab \tab 2.\tab Discussion .................................... 53 -\par \tab \tab C.\tab Bundling of Services .............................. 59 -\par \tab \tab \tab 1.\tab Parties' Positions ............................ 59 -\par \tab \tab \tab 2.\tab Discussion .................................... 61 -\par \tab \tab D.\tab Geographic Deaveraging ............................ 63 -\par \tab \tab \tab 1.\tab Parties' Positions ............................ 63 -\par \tab \tab \tab 2.\tab Discussion .................................... 65 -\par \tab \tab E.\tab Miscellaneous LEC Pricing Flexibility Issues ...... 67 -\par \tab \tab F.\tab CLC Pricing Policies .............................. 69 -\par \tab \tab \tab 1.\tab Introduction .................................. 69 -\par \tab \tab \tab 2.\tab Parties' Positions ............................ 69 -\par \tab \tab \tab 3.\tab Discussion .................................... 72 -\par \tab -\par V.\tab Rating Area Consistency ............................... 72 -\par \tab \tab A.\tab Introduction ...................................... 72 -\par \tab \tab B.\tab Parties' Positions ................................ 72 -\par \tab \tab C.\tab Discussion ........................................ 78 -\par -\par -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ ii - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ ii - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql -\sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \b \f1 \fs24 \b0 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \b \f1 \fs24 \b0 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl240 -\slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \qc \ul \b I N D E X\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 -\par -\par \b0 \ul \b Subject\ulnone \ul Page\ulnone -\par -\par -\par \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \b0 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 VI.\tab LEC Recovery of Costs of Implementing -\par \tab \tab Local Competition ..................................... 84 -\par \tab \tab A. \tab Introduction ...................................... 84 -\par \tab \tab B.\tab Parties' Positions ................................ 85 -\par \tab \tab C.\tab Discussion ........................................ 89 -\par -\par Findings of Fact ............................................. 92 -\par -\par Conclusions of Law ........................................... 100 -\par -\par ORDER ........................................................ 108 -\par -\par APPENDIX A \_ List of Appearances -\par APPENDIX B \_ Avoided Retail Costs as a Percentage of -\par Total LEC Expenses for Pacific Bell -\par APPENDIX C \_ Avoided Retail Costs as a Percentage of -\par Total LEC Expenses for GTEC -\par -\par -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\headerl \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \f1 \fs24 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql -\sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1008 \tx1584 \tx2160 \hyphpar1 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 \qc \b APPENDIX A -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 \qc Page 1 -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 -\par \qc \ul List of Appearances\ulnone -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 -\par -\par \b0 \pard \li432 \ri1008 \fi-432 \ql \sl240 \slmult1 \tx432 \hyphpar1 Respondents: \ul David Discher\ulnone and Theresa Cabral, Attorneys at Law, and Pillsbury, Madison & Sutro, by \ul James B. Young\ulnone , Attorney at Law, for P -acific Bell; \ul Judith Endejan\ulnone and Susan Rossi, and Munger, Tolles & Olson, by \ul Henry Weissman\ulnone , for GTE California, Incorporated; Orrick, Herrington & Sutcliffe, by \ul Robert \ulnone \ul Gloistein\ulnone , Attorney at La -w, for Contel of California, Inc.; and \ul Barbara Snider\ulnone , Attorney at Law, for Citizens Utilities Company. -\par -\par Interested Parties: \ul Eric Artman\ulnone , Attorney at Law and Swindler & -\par Berlin, by \ul Andrew Lipman\ulnone and Richard Rinder, Attorneys at Law, for MFS Communications Company and Subsidiaries, \ul Carmela \ulnone \ul Castellano\ulnone , Attorney at Law, for NCLR, SLLC, FAA, FCRA, KSCC; \ul John Clark\ulnone -, Attorney at Law, for California Association of Long Distance Telephone Companies, Inc., Caltel; \ul Jeffrey Beck\ulnone and Jullisa Bronfman, Attorneys at Law, for CP National, Evans Telephone Company, GTE West Coast Incorporated, Kerman -Telephone Company, Pinnacles Telephone Company, The Siskiyou Telephone Company, Tuolumne Telephone Company, and The Volcano Telephone Company; \ul Shelley Bergum\ulnone , for Deaf & Disabled Telecommunications Program; Cooper, White & Cooper -, by \ul E. Garth Black\ulnone , Mark Schreiber and Sean Beatty, Attorneys at Law, for Roseville Telephone Company, Ducor Telephone Company, Calaveras Telephone Company, California\_Oregon Telephone Company, Winterhaven Telephone Company, Fo -resthill Telephone Company, Sierra Telephone Company, Happy Valley Telephone Company, Hornitos Telephone Company and Ponderosa Telephone Company; Blumenfeld & Cohen, by \ul Stephen Bowen\ulnone , Attorney at Law, for MCI Telecommunications C -orporation; \ul Peter Casciato\ulnone , Attorney at Law, for Time Warner AxS of California, L.P. and Association of Directory Publishers; \ul Jon Chambers\ulnone , for Sprint Telecommunications Venture; \ul Ellen Deutsch\ulnone , Attorney at - Law, for Electric Lightwave, Inc.; Davis, Wright & Tremaine, by \ul Joseph \ulnone \ul Faber\ulnone , Attorney at Law, for California Committee for Large Telecommunications Consumers; \ul Alan Gardner\ulnone , Glen Semohr, Carrington Philli -p and Jennifer Johns, Attorneys at Law, for California Cable Television Association; \ul William C. Harrelson\ulnone , Attorney at Law, for MCI Telecommunications Corporation; \ul Manning \ulnone \ul Lee\ulnone and Teresa Marrero, for TCG; -\ul Thomas Long\ulnone and Bruce J. Weston, Attorneys at Law, for Toward Utilities Rate Normalization; Graham & James, by \ul Martin\~A. Mattes\ulnone , Attorney at -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 -\par \sect \sectd \sbkpage \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 -{\headerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \b \f1 \fs24 \b0 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\headerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx576 \tx1296 \tx2304 \hyphpar1 \b \f1 \fs24 \b0 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 R.95\_04\_043, I.95\_04\_044 ALJ/TRP/sid *** -\par } -{\footerr \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par } -{\footerl \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \tx864 \tx1440 \tx2016 \hyphpar1 \f1 \fs24 \pard \li0 \ri1296 \fi0 \qj \sl240 \slmult1 \hyphpar1 \_ -{\field \flddirty -{\*\fldinst page \\* arabic} -{\fldrslt -{}}} - -\par }\f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 \f1 \fs24 \pard \li0 \ri1008 \fi0 \ql -\sl240 \slmult1 \hyphpar1 \qc \b APPENDIX A -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 \qc Page 2 -\par \pard \li0 \ri1008 \fi0 \ql \sl240 \slmult1 \hyphpar1 -\par -\par \b0 \pard \li432 \ri1008 \fi-432 \ql \sl240 \slmult1 \tx432 \hyphpar1 Law, for California Payphone Association; \ul Patrick McMahon\ulnone , Attorney at Law, for Sprint Communications Company, L.P.; \ul Michael A. Morris\ulnone , Att -orney at Law, for Teleport Communications Group; \ul Terry Murray\ulnone , for Murray & Associates; \ul Karen M. Potkul\ulnone , Attorney at Law, and McCutchen, Doyle, Brown & Enersen, by \ul Terry J. Houlihan\ulnone , Attorney at Law, for -AT&T Communications of California; Law Offices of Earl Nicholas Selby, by \ul Earl Nicholas \ulnone \ul Selby\ulnone , Attorney at Law, for ICG Access Services, Inc.; \ul Cecil O. \ulnone \ul Simpson, Jr.\ulnone , Attorney at Law, for U.S. D -epartment of Defense and All Other Federal Executive Agencies; \ul Jerry Varcak\ulnone , for Bank of America; and \ul Virginia J. Taylor\ulnone , Staff Counsel, for California Department of Consumer Affairs. -\par -\par Commission Advisory and Compliance Division: \ul Dorothy Duda\ulnone , Karen -\par Jones, and Jonathan Lakritz. -\par -\par Division of Ratepayer Advocates: \ul Helen Mickiewicz\ulnone and Ira -\par Kalinsky, Attorneys at Law. -\par -\par Public Advisor's Office: \ul Robert Feraru\ulnone . -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par -\par \qc \b (END OF APPENDIX A)\b0 -\par \pard \li432 \ri1008 \fi-432 \ql \sl240 \slmult1 \tx432 \hyphpar1 \page \pgwsxn12240 \pghsxn15840 \margtsxn1680 \margbsxn2160 \marglsxn1008 \margrsxn432 \headery480 \footery720 \cols0 \colno1 \colsr0 \colw10800 \qc (See Formal Files for - Appendixes B and C.) -\par \pard \li432 \ri1008 \fi-432 \ql \sl240 \slmult1 \tx432 \hyphpar1 } \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/documentorderformtemplate121708.doc b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/documentorderformtemplate121708.doc deleted file mode 100644 index 13bbdee..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/documentorderformtemplate121708.doc and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/theProcess b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/theProcess deleted file mode 100644 index 674fe39..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/theProcess +++ /dev/null @@ -1,6 +0,0 @@ - - -AT&T - - -Verizon diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-OEMQPT.xls b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-OEMQPT.xls deleted file mode 100644 index 057a751..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-OEMQPT.xls and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-oem_cust_data_rqmts.doc b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-oem_cust_data_rqmts.doc deleted file mode 100644 index d66e6cf..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-oem_cust_data_rqmts.doc and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-oem_cust_site_prep.doc b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-oem_cust_site_prep.doc deleted file mode 100644 index 4a3ed61..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/fiber/IM-oem_cust_site_prep.doc and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/network-plan.txt b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/network-plan.txt deleted file mode 100644 index aa7f419..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/network-plan.txt +++ /dev/null @@ -1,55 +0,0 @@ - -This document covers the socalwifi.net network deployment model. - -OSS: -This is a highly available system with primary hosting at KNEL HQ and fully -redundant backup on two ec2 availability zones. It contains the network -command and control systems used for provisioning,billing,monitoring etc. - -Please see the SCW-OSS for exhaustive detail. - -Packet pushing: - -The packet pushing functions of the network are split into 5 layers: - -1) Network core POP location (horizontal/distributed network core layer) -These are located in computer rooms on mountain tops throughout southern -California. These locations terminate bridged Black Diamond PtP back haul -links over 3650 frequencies. - -These points of presence consist of: - -A) vyatta based x86 rack mount systems -B) switching gear -C) UBNT.com 3650 and 700mhz antennas - - -2) Network Aggregation POP Location (horizontal/distributed network aggregation layer) -(Black diamond nodes) (30% revenue sharing) -These are located in peoples houses that have been friends of the project for some time: - -LA County: -Dallas Legan - DTLA -Ralf Pieper - El Segundo -Tarry Burgy - East Valley -John Willauer - West Valley -Ken Wyrick - DTLA - -Orange County: -Howard Siegel - Irvine -Mike Fedyk - Anaheim - -They host an AP/switch, iboot, ups, sheeva plug, x86 ad server. All contained in a locked box -with only the antennas/connectors exposed. - -3) Network Distribution POP Location (horizontal/distributed network distribution layer) -(Green diamond nodes) (15% revenue sharing) -mesh gateway ap - -4) Neighborhood POP -(Blue diamond nodes - mesh client ap) (4% revenue sharing) - - -5) Block POP -(Red diamond nodes in home ap) (1% revenue sharing) - diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/NetworkSimulationVendorInformation.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/NetworkSimulationVendorInformation.md deleted file mode 100644 index 2e44107..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/NetworkSimulationVendorInformation.md +++ /dev/null @@ -1,3 +0,0 @@ -# information on Network Simulation Vendors - -- diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/README.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/README.md deleted file mode 100644 index 763905d..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/README.md +++ /dev/null @@ -1,2 +0,0 @@ -# RRdocs - diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/RackRentalPunchList.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/RackRentalPunchList.md deleted file mode 100644 index 1616948..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/RackRentalPunchList.md +++ /dev/null @@ -1,23 +0,0 @@ -# RackRental punch list - -- [RackRental punch list](#rackrental-punch-list) - - [General Infrastructure/IT needs](#general-infrastructure-it-needs) - - [SBC setup](#sbc-setup) - - [Provisioning Backend](#provisioning-backend) - -## General Infrastructure/IT needs - -- Power up rackrental router (2800), switch, console server -- confirm final console ports -- setup console / power port mapping on cyclades -- Setup bastillion for RackRental -- Setup 6 rackrental general vlans - -## SBC setup - -- Setup a docker container on pfv-maas for - - parallela (xilinx) - - esp (arduino) - - sifive (FreedomStudio) - -## Provisioning Backend \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/auto-provision.txt b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/auto-provision.txt deleted file mode 100644 index e7d69be..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/auto-provision.txt +++ /dev/null @@ -1,51 +0,0 @@ -Cisco - -Switch -https://supportforums.cisco.com/t5/network-infrastructure-documents/how-to-use-zero-touch-smartinstall/ta-p/3112248 -https://www.cisco.com/c/en/us/td/docs/switches/lan/smart_install/configuration/guide/smart_install.html - - -Router -https://www.cisco.com/en/US/docs/ios/12_1t/12_1t5/feature/guide/dt_dhcpa.html -https://www.cisco.com/c/en/us/support/docs/wireless/4400-series-wireless-lan-controllers/111452-autoinstall-feature-wlc.html -(ap) https://www.cisco.com/c/en/us/support/docs/wireless/aironet-1200-series/113353-autoinstall-aap-config.html - -voip -https://www.cisco.com/c/en/us/support/docs/voice-unified-communications/ip-communicator/113589-ar-ipc-cucm-00.html -https://www.cisco.com/c/en/us/td/docs/voice_ip_comm/cucm/admin/8_5_1/ccmsys/accm-851-cm/a02tftp.html#wp1042446 - -o - -Mikrotik -https://commotionwireless.net/docs/guides-howtos/installation-server-setup/ - -ubnt -https://help.ubnt.com/hc/en-us/articles/204959514-EdgeRouter-Last-Resort-Recovery -https://community.ubnt.com/t5/EdgeRouter/How-to-upload-configuration-to-edge-router-from-CLI/td-p/1888889 -https://community.ubnt.com/t5/EdgeRouter/Official-TFTP-recovery-for-EdgeMAX-products-needed/td-p/1593478 - - -f5 -https://devcentral.f5.com/articles/f5-devops-libraries-simplify-big-ip-provisioning-reset-and-ha-pairing-21908 -https://support.f5.com/kb/en-us/products/big-ip_ltm/releasenotes/clean_install_9_4_x.html - - -brocade -https://www.google.com/search?q=brocade+ztp&oq=brocade+ztp&aqs=chrome..69i64j5.1930j1j9&sourceid=chrome&ie=UTF-8 -https://github.com/tbraly/campus_ztp - - -dell -http://www.dell.com/downloads/global/products/pwcnt/en/app_note_12.pdf - - -netgear -https://www.netgear.com/images/Application_Notes18-71326.pdf -https://kb.netgear.com/22688/How-to-upload-firmware-to-a-NETGEAR-router-using-TFTP - - -juniper -https://www.juniper.net/documentation/en_US/junos/topics/task/configuration/software-image-and-configuration-automatic-provisioning-confguring.html - -huawei -http://support.huawei.com/enterprise/jp/doc/DOC1000086918 \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/rrTodo b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/rrTodo deleted file mode 100644 index 152d89e..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/rrTodo +++ /dev/null @@ -1,15 +0,0 @@ - -################################### -Physical infrastructure work -################################## -Rack and stack: - Finish galielo bringup - Finish parallella bringup - - -Finish middleware -Get finalized inventory into spreadsheet -Deploy nomad/counsul across SATX/AUSLAB -Deploy MAAS on auslab-core-rtr -Deploy MAAS on auslab-linsrv -(kick off Ubuntu 32/64/arm image imports at both, that will need to run for sometime) diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/tsys-pfv-power.pdf b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/tsys-pfv-power.pdf deleted file mode 100644 index 32692b0..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/tsys-pfv-power.pdf and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/tsys-power.ods b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/tsys-power.ods deleted file mode 100644 index d0c316e..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/RackRental/tsys-power.ods and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/StartingLineProductions/ToolAndEquipmentInventory.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/StartingLineProductions/ToolAndEquipmentInventory.md deleted file mode 100644 index 88d4adb..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/StartingLineProductions/ToolAndEquipmentInventory.md +++ /dev/null @@ -1,37 +0,0 @@ -- [Starting Line Productions LLC Inventory](#starting-line-productions-llc-inventory) - - [HQ - office/lab](#hq---officelab) - - [HQ - dirty shop](#hq---dirty-shop) - - [Diogenes](#diogenes) - - [RF lab](#rf-lab) - - [Environmental Lab](#environmental-lab) - - [CNC](#cnc) - -# Starting Line Productions LLC Inventory - -## HQ - office/lab - -| Record Number | Asset Tag | Description/Link| Quantity | Purchase Cost | Replacement Cost | -|---------------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|---------------|------------------| -| 1 | | Magnetizer / de-magnetizer | 1 | 4.95 | 4.95 | -| 2 | | Pens, pencils, sharpies, highlighters | n/a | 25.00 | 25.00 | -| 3 | | Magnetic Pickup tool/level | 1 | 14.48 | 14.48 | -| 4 | | T-handle ball end hex key set | 1 | 19.99 | 19.99 | -| 5 | | Infrared thermometer | 1 | 199.99 | 199.99 | -| 6 | | | | | | -| 7 | | | | | | -| 8 | | | | | | -| 9 | | | | | | -| 10 | | | | | | -| 11 | | | | | | -| 12 | | | | | | -| 13 | | | | | | - -## HQ - dirty shop - -## Diogenes - -### RF lab - -### Environmental Lab - -### CNC diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/RDTodoList.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/RDTodoList.md deleted file mode 100644 index 85cb3c5..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/RDTodoList.md +++ /dev/null @@ -1,297 +0,0 @@ -- [R&D Todo](#rd-todo) - - [Shop Equipment](#shop-equipment) - - [PCB Assembly/rework workflow](#pcb-assemblyrework-workflow) - - [PCB Stencil making](#pcb-stencil-making) - - [Reflow Oven](#reflow-oven) - - [Pick N Place Machine](#pick-n-place-machine) - - [Other elements](#other-elements) - - [Environmental chamber](#environmental-chamber) - - [RF Chamber](#rf-chamber) - - [Overview](#overview) - - [Hardware](#hardware) - - [Process](#process) - - [Enclosure](#enclosure) - - [CNC/3d](#cnc3d) - - [CNC](#cnc) - - [3d printer workflow/ops](#3d-printer-workflowops) - - [TSYS R&D Lab Workstation Needs](#tsys-rd-lab-workstation-needs) - - [RF](#rf) - - [SDR server](#sdr-server) - - [EE](#ee) - - [Documentation of existing POC](#documentation-of-existing-poc) - -# R&D Todo - -## Shop Equipment - -### PCB Assembly/rework workflow - -#### PCB Stencil making - -Setup workstation on dirty shop bench to drive the Silhouette cameo cutter to make PCB stencils. - -Below links are a curated collection of all the particulars. - -- -- -- -- -- -- -- -- -- - -#### Reflow Oven - -- - -we need to start at - -#### Pick N Place Machine - -- -- -- -- -- - -Some combination of the above is arriving (currently projected) in March 2022 from a kickstarter campaign. - -#### Other elements - -- De-ionized water - -### Environmental chamber - -### RF Chamber - -#### Overview - -- -- -- -- -- -- -- -- -- -- - -#### Hardware - -- -- - -#### Process - -#### Enclosure - -- -- -- -- -- -- -- -- - -to categorize - -- -- -- -- -- -- -- -- - -### CNC/3d - -We have a crealty ender (something) which has laser cuter, filament extruder, cnc. - -We also have monoprice 3d printers. - -#### CNC - -- Deploy -- Deploy - -The following are some options to drive the controller - -- -- -- - -Depending on maintenance , installation difficulty, features etc, may end up with multiple options. - -#### 3d printer workflow/ops - -Evaluate - -- -- -- - -Leaning towards MatterControl - -MatterControl has an issue post install, bug report at - -## TSYS R&D Lab Workstation Needs - -### RF - -- -- -- -- -- -- - -### SDR server - -Idea is to use the raspi4 on the lab bench, with the various SDR/pluto USB radios hung off it and stream the output to the (either/or) upstairs GPU farm or downstairs gpu/cpu server farm for processing. - -- -- -- -- -- -- -- - -### EE - -- Setup bitscope -- Setup openocd server and -- Setup sigrok with logging multimeter - - - - - -- Setup bus pirate -- Setup document camera -- Setup USB microscope and -- Setup jtag and and (google openocd st-link v2 ) (maybe add jtag as well) - -``` -For the above items that present serial port over USB, we need to setup persistent device names. - -Here is some text on how to do that from - -" -Assigning Serial Ports - -On Linux, serial port assignments can change whenever a printer is connected or disconnected. MatterControl cannot tell which printer is connected to which serial port. You can setup a udev rule to permanently assign a unique port to your printer. - -Do ls /dev/tty* before and after connecting your printer to find out which port it is assigned to. Printers will show up as either /dev/ttyACM# or /dev/ttyUSB#. - -Use udevadm to get the serial number (UUID) of the USB device. This is a unique 20 digit hexadecimal value. - -$ udevadm info --attribute-walk -n /dev/ttyACM0 | grep "serial" - -Some printers will not report a serial number. In this case, you will have to use other attributes to identify it such as the vendor ID (idVendor) and the product ID (idProduct). - -Create a file /etc/udev/rules.d/97-3dprinters.rules. Here is an example with rules for two printers. - -SUBSYSTEM=="tty", ATTRS{serial}=="6403237383335190E0F1", GROUP="uucp", MODE="0660", SYMLINK+="tty-taz" -SUBSYSTEM=="tty", ATTRS{idVendor}=="16d0", ATTRS{idProduct}=="076b", GROUP="uucp", MODE="0660", SYMLINK+="tty-kosselpro" - -Fill in either the serial number or vender and product IDs based on the information you obtained earlier. Make sure GROUP is set to the same group ownership as the rest of your serial ports. This is usually dialout on Debian or uucp on Arch. You can check by doing ls -l /dev/ttyACM*. Lastly, give your printer a unique name for the SYMLINK. This name must start with tty or it will not show up in the list in MatterControl. - -The next time you connect the printer, a symlink will automatically be created that points to the correct serial device. You can now edit the printer in MatterControl and choose the new device. -" - -Here is an example rule from a production system at tsys: - -root@pfv-vmsrv-04:/etc/udev/rules.d# cat 99-usb-serial.rules - -# examples from - -# -# - -# SUBSYSTEM=="tty", ATTRS{idVendor}=="1a86", ATTRS{idProduct}=="7523", SYMLINK+="rah-ctrl" - -# SUBSYSTEM=="tty", ATTRS{idVendor}=="0403", ATTRS{idProduct}=="6001", ATTRS{serial}=="A6008isP", SYMLINK+="arduino" - -# SUBSYSTEM=="tty", ATTRS{idVendor}=="0403", ATTRS{idProduct}=="6001", ATTRS{serial}=="A7004IXj", SYMLINK+="buspirate" - -# SUBSYSTEM=="tty", ATTRS{idVendor}=="0403", ATTRS{idProduct}=="6001", ATTRS{serial}=="FTDIF46B", SYMLINK+="ttyUSB.ARM" - -# Apply changes via - -# - -# udevadm control --reload-rules && sudo udevadm trigger - -# - -#################################### - -# USB serial for UPS - -#################################### - -# Bus 002 Device 045: ID 067b:2303 Prolific Technology, Inc. PL2303 Serial Port - -# root@pfv-vmsrv-03:~# udevadm info --name=/dev/ttyUSB2 --attribute-walk|grep -i vendor - -# ATTRS{idVendor}=="067b" - -# ATTRS{idVendor}=="2109" - -# ATTRS{idVendor}=="8087" - -# ATTRS{idVendor}=="1d6b" - -# ATTRS{subsystem_vendor}=="0x1028" - -# ATTRS{vendor}=="0x8086" - -# root@pfv-vmsrv-03:/etc/snmp# udevadm info --name=/dev/ttyUSB2 --attribute-walk|grep -i serial - -# SUBSYSTEMS=="usb-serial" - -# ATTRS{product}=="USB-Serial Controller" - -# ATTRS{serial}=="0000:00:1d.0" - -# root@pfv-vmsrv-03:/etc/udev/rules.d# udevadm info -a -n /dev/ttyUSB0 | grep '{serial}' | head -n1 - -# ATTRS{serial}=="0000:00:1d.0" - -# SUBSYSTEM=="tty", ATTRS{idVendor}=="067b", ATTRS{idProduct}=="2303", ATTRS{serial}=="0000:00:1d.0", SYMLINK+="ups4" - -SUBSYSTEM=="tty", ATTRS{idVendor}=="067b", ATTRS{idProduct}=="2303", SYMLINK+="ups4" -#################################### - -# USB serial for sifive - -#################################### -#################################### - -# USB serial for parallella - -#################################### - - - -and - - - -would be some things to check out. -``` - -## Documentation of existing POC - -- POC1 Hardware -- Software Engineering tooling stack -- Hardware Engineering tooling stack -- Mechanical/Industrial design tooling stack -- Software Engineering supply chain (software components) stack -- Hardware Engineering supply chain (hardware/software components ) stack diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboLinks.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboLinks.md deleted file mode 100644 index 4b92e72..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboLinks.md +++ /dev/null @@ -1,47 +0,0 @@ -# Suborbital Links - -## Introduction - -This is a collection of links related to suborbital. I need to integrate this material into the MorseFlyerDocs repository. - -## Device fleet management - -### Backend - -- - -- - -- - -### Client side - -- - -- - -- - -- - -- - -### Telemetry - -- - -- - -- - -- - -- - -- - -- - -- - -- diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboPiDocs.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboPiDocs.md deleted file mode 100644 index 6f561bd..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboPiDocs.md +++ /dev/null @@ -1,49 +0,0 @@ - -# Suborbital Systems Pi Systems - -## Ground Stations - -### Subopi2 - -* System Name: Subopi2 -* Pi Hat: Lora Concentrator (todo: document brand) -* USB Device: Arduino UNO with servo control board (attached to antenna tracker high precision) - -### Subopi3 - -* System Name: Subopi3 -* Pi Hat: None -* USB Device: Lora Concentrator (todo: document brand) - -## Flight Computers - -### Subopi5 - -* System Name: Subopi5 -* Pi Hat: Sense Hat -* USB Accessory: Seeduino Lora/GPS Package - -### Subopi6 - -* System Name: Subopi6 -* Pi Hat: Sense Hat -* USB Accessory: Seeduino Lora/GPS Package - -## Payload - -### Subopi 4 - -This is an IOT / IP payload system - -* Pi Hat: Lora GPS (Dragino) -* USB Accessory: - * Omnidirectional USB wifi with rubber ducky antenna - * TI Sensor Tag programmer/debugger (it can operate standalone via bluetooth but uses the USB board to program) - -### Subopi 1 - -This is an IP payload system - -* Pi Hat: None -* Special notes: Zymbit HSM, multiple wifi interfaces built in -* USB Accessory: Directional USB wifi with special antenna \ No newline at end of file diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboPiDocs.pdf b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboPiDocs.pdf deleted file mode 100644 index 2868220..0000000 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/SuboPiDocs.pdf and /dev/null differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/engineering-orbiter-crossSection.PDF b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/engineering-orbiter-crossSection.PDF deleted file mode 100644 index 3acf853..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/engineering-orbiter-crossSection.PDF +++ /dev/null @@ -1,172 +0,0 @@ -%PDF-1.4 -% -1 0 obj -<< -/Creator (Canon MF731C/733C) -/CreationDate (D:20210401091551-06'00') -/Producer (\376\377\000A\000d\000o\000b\000e\000 \000P\000S\000L\000 \0001\000.\000\ -4\000e\000 \000f\000o\000r\000 \000C\000a\000n\000o\000n\000\000) ->> -endobj -2 0 obj -<< -/Pages 3 0 R -/Type /Catalog -/OutputIntents 10 0 R -/Metadata 11 0 R ->> -endobj -4 0 obj -<< /Type /XObject /Subtype /Image /Width 2550 /Height 3300 /BitsPerComponent 1 -/ColorSpace /DeviceGray /Filter /CCITTFaxDecode /DecodeParms << /K -1 /Columns 2550 >> -/Length 13068 >> -stream -Q5"&#0" a %)DB""qB"&h4G C;B"P4'B H'.ԄꏢT"jB#2BF"Ij*}S hH%H(B"1%Jt%֎!hS;5B ,)P"$(E"# -M!TD6YQeT%>dRqUBa4]H1 -ķxG[JdBc"iDOȒ(JҏSG,QFEU1%$ C;B|mi#0菜Fc>KM#p#a -#‘̏KI-E8f28B?- \#z"$6>Hs' #"ti"菗sUe ČsVR`"V 8㔘-"DDqs!U8bqɎ[9NT "Øq$9ZNeHDDD3Lq"iE!JTq f`"'t""y KQt(4E躄cpB'fK| @A"f -C.n#B$ #-БBE["8` 1$rFCmgrKaClŗPdtMA Bd0+, d0]K1iB B(  -uy, 8 b `B:&a:`ނn @ʀ 2!c,2LIJ #fjGPD)q0pE!$Y B$"ˠ#CGPLaɺ!PYʙe \!0FpdF @(pp l@8$  A!h = dV7 GP \  x@$A%h$#) !: n8E)HSA]AAA0!t  Yΐ B 0p@;B&JBF:L7ZG!8 Tr7nIDp a:n7R@RልGpDEBAdrR; Dܠr8ЈDv]]"n&N827H":L炛dZz&B PB[GDpn]t= 18 "nH%G u&᠅#$B(`@| DAYM"m}xA PSq#dz& q9Fjw!H# -MGrds|"l) -LÈ"9ÂjwDr87A!`Dq(JUށpaXEq8wQZG #z9#ap#.6> 8?HÄ -", (">gú(e - Ń : B6ρ  !.lu@e`7 AAЦI "; tq!lm @El9^m,7P8 7t=MAl6A# -Y_ l= DtdCp-At`莴 A duP!1GXn0mR 3aBa 6q,{.$-l:h"?PNIt)L Au0۠P,;Ab Q 7AaiCo+H 0}5Za} utgAˮe}*cyٙ#GAÂ,{]RJ,>H:H / 7Du`pH$IX}m%BmL;T,G -0o m%6kI! 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- - uuid:6065e3a7-00ee-f80d-60e6-3f6200010000 - - - - - -endstream -endobj -3 0 obj -<< /Type /Pages /Count 1 /Kids [8 0 R ] >> -endobj -xref -0 12 -0000000000 65535 f -0000000016 00000 n -0000000259 00000 n -0000017894 00000 n -0000000353 00000 n -0000013641 00000 n -0000013721 00000 n -0000013820 00000 n -0000013839 00000 n -0000014041 00000 n -0000016695 00000 n -0000016879 00000 n -trailer -<< -/Size 12 -/Info 1 0 R -/Root 2 0 R -/ID[] ->> -startxref -17952 -%%EOF diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/legacy-Parasail.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/legacy-Parasail.md deleted file mode 100644 index 8a9d132..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/legacy-Parasail.md +++ /dev/null @@ -1,41 +0,0 @@ -# Notes on Parasail - -## Requirements - -* Capable of putting up with extended UV exposure -* Memory wire leading/trailing edges of parasail - - -### Steering/navigation system - -Undefined type cable - -(self lubricating nylon) - -1 spool locking / deployment system - -4 spools of cable (back two will need lock pins, front two need geared lip) - -Navigation servo to drive front two spools - -custom item - -locking slot - -gear - -Front two spools geared because those will be used to "steer" - -Spool locker - -Weight is biggest consideration - -UV resistance is second biggest consideration - -4 pulley knuckles - -go at four corners of superstructure - -3d printed with hole through them (diagonal, inside to outside) - -Bowden tubes diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/legacy-albatrossNotes.md b/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/legacy-albatrossNotes.md deleted file mode 100644 index c5830d1..0000000 --- a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/Subo/legacy-albatrossNotes.md +++ /dev/null @@ -1,55 +0,0 @@ - -Albatross - -Bill of Materials: - -Avionics electronics - -Pi - -Nav radio - -Altimeter/accelerometer/imu/gps - -Servo controller - -Solenoid (when powered, locks open) - -Energy storage - -X-splitter (to charge controller, and critical load out) - -port solar in - -starboard solar in - -critical load out - -Charge controller - -Batteries (low weight vs volume) - -Avionics box (housing) - -single layer, injection molded, carbon fiber - -Carbon fiber shell - -Line box in aero gel - -Inner carbon fiber core holding electronics - -Socket power out for critical load (specifically power passthrough) (female, sealed, capped, weatherproof) - -Redundant RF for cutdown - -Super structure - -Carbon fiber tubes - -——- -Charles N Wyble -Founder TSYS Group -Email: charles@turnsys.com -Phone: 818 280 7059 -Matrix: @Charlesnw:turnsys.com diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/TheCharlesWybleShow.md b/notesToIngestIntoDendron/TheCharlesWybleShow.md similarity index 100% rename from notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/TheCharlesWybleShow.md rename to notesToIngestIntoDendron/TheCharlesWybleShow.md diff --git a/notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/TheCharlesWybleShow.pdf b/notesToIngestIntoDendron/TheCharlesWybleShow.pdf similarity index 100% rename from notesToIngestIntoDendron/ChiefOperationsComplianceFinanceOfficer/ChiefFundraisingOfficer/TheCharlesWybleShow.pdf rename to notesToIngestIntoDendron/TheCharlesWybleShow.pdf diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/core-pitch-prefund.txt b/notesToIngestIntoDendron/core-pitch-prefund.txt similarity index 100% rename from notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/core-pitch-prefund.txt rename to notesToIngestIntoDendron/core-pitch-prefund.txt diff --git a/notesToIngestIntoDendron/data-ownership-uuascMarch2010.odp b/notesToIngestIntoDendron/data-ownership-uuascMarch2010.odp new file mode 100644 index 0000000..0f37291 Binary files /dev/null and b/notesToIngestIntoDendron/data-ownership-uuascMarch2010.odp differ diff --git a/notesToIngestIntoDendron/data-ownership.odp b/notesToIngestIntoDendron/data-ownership.odp new file mode 100644 index 0000000..748f5d1 Binary files /dev/null and b/notesToIngestIntoDendron/data-ownership.odp differ diff --git a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/D9507054complete.pdf b/notesToIngestIntoDendron/data-security-uuasc-Jan2011.odp similarity index 50% rename from notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/D9507054complete.pdf rename to notesToIngestIntoDendron/data-security-uuasc-Jan2011.odp index b8b6bea..2312d65 100644 Binary files a/notesToIngestIntoDendron/ChiefTechnologyAndProductOfficer/HFNOC-v1/clec/D9507054complete.pdf and b/notesToIngestIntoDendron/data-security-uuasc-Jan2011.odp differ