Regulatory Affairs Updates

CCTA represents its members before California State Agencies, including the California Public Utilities Commission, the California Department of Energy, and the California Department of Housing and Community Development. CCTA also represents its members before the Office of Emergency Services, Department of Transportation, and the Office of the State Fire Marshal.   CCTA is a member of the California High Tech Task Force and is the national representative for the industry at the North American Numbering Committee (NANC).

The California Public Utilities Commission provides oversight to cable’s access to utility rights of way, and establishes overhead and underground safety standards for utilities and cable facilities in California. The CPUC regulates traditional wireline telecommunications facilities and services, and is also the state video franchising authority in California. To access the CPUC website, click http://www.cpuc.ca.gov/.
 

Regulatory Update -- Week of January 13, 2012

CCTA Filed Opening Comments in Proceeding at Commission that proposes to change requirements for obtaining and retaining a CPCN.  CCTA filed Opening Comments at the California Public Utilities Commission in its proceeding in which the Commission proposes to change requirements for obtaining and retaining a CPCN. CCTA urged the Commission not to implement performance bond requirements, CPUC user and license fees, particularly for facilities-based CPCN holders, since those providers have significant assets and close ties to the community that ensure that the provider will be responsive to customers and able to meet financial obligations for fines or penalties issued by the Commission.       

Commission Unanimously Approved Fire Safety Decision.  Yesterday the Commission unanimously approved (5-0) a Decision in Phase 2 of the Fire Safety OIR ("Rulemaking").  The Rulemaking was established in the wake of the 2007 Southern California wildfires in order to consider and adopt regulations to reduce the fire hazards associated with overhead power-line facilities and aerial communication facilities.  Phase 1 addressed measures that could be adopted prior to the 2009 autumn fire season.  Phase 2 addressed longer-term issues.  Yesterday's Phase 2 Decision is the culmination of more than two years of workshops, formal pleadings, and advocacy.  In addition to the new rules described below, the Phase 2 Decision also establishes a "Phase 3" where the Commission will consider the establishment of a new "High Fire-Threat District for Southern California, develop new, standard fire-threat maps, and develop a plan for the collection of fire-threat related data.

CCTA and Member's will work over the next few weeks to review the operational and legal implications stemming from the new rules.  Also, CCTA will join with the Commission's CPSD in hosting a series of training seminars aimed at providing cable providers with a understanding of how CPSD intends to interpret and enforce the rules. Those seminars will take place in San Diego, Los Angeles, and Northern California and will begin in April with details to follow.

The New and Revised Rules are listed in the attached document. 

Regulatory Update -- Week of October 21, 2011

CCTA Negotiates 2012 Pole Attachment Rate with AT&T.  AT&T advised CCTA in early October that the 2011 pole attachment rate of $4.83 would increase in 2012 to $8.67. The conduit rate was similarly raised to 77 cents from 41 cents. The basis for the significant increase is due to the fact that AT&T is loading actuarial losses from pension and retirement benefits into its general and administrative (G & A) expenses, resulting in a tenfold increase in G & A expenses, and nearly doubling the pole attachment and conduit rates. AT&T has stated that it expects its rates to return to historical levels in 2013. Notwithstanding the calculations, CCTA has negotiated for its members a 2012 pole attachment rate of $5.02 and a conduit rate of 49 cents. Because the calculations may impact AT&T's pole attachment and conduit rates nationally, CCTA recommends that members investigate proposed rates outside of California and the potential for negotiation.


California Public Utilities Commission Approves Area Code Overlay of the 408 Area Code.  On October 20th day the Commission voted to approve an all-services overlay that will add a new 669 area code to the same geographic region as the existing 408 area code.  This is Northern California's first area code overlay. CCTA advocated in support of the 408 overlay to address an accelerated depletion of numbering resources in that area.
 
The Commission's Decision accepts the recommendations and plan proposed by the North American Numbering Plan Administrator (NANPA) on behalf of the California Telecommunications Industry including adoption of the Industry-proposed 13-month total implementation schedule.  The start of a permissive 1+10 digit-dialing period will begin in six months, while the implementation will be complete in November 2012.  The Proposed Decision also requires the Industry to implement a Public Education Program ("PEP") consistent with the PEPs authorized for the 760 and 818 area codes.

Regulatory Update -- Week of September 13, 2011

Commission Adopts Decision Bringing 211 Service to Areas without 211 Centers.   Last week the CPUC unanimously approved a decision authorizing the provision of emergency access to 211 services in localities that do not have regular 211 service centers. The Decision incorporates CCTA's recommendation to retain a requirement that allows Cable and other voice service providers to enable 211 calling by means of a simple, cost effective, "point-to" toll-free number as authorized in a previous Commission Order.  The Decision also rejects the more severe reporting and operating rules originally proposed by the Commission's Division of Ratepayer Advocates.
The Decision allows for the provision of 211 information services to areas without 211 Centers only in times of emergency. Commenting before the vote, Commissioner Ferron indicated that he would like to see 211 dialing available to rural residents all of the time, and not just in times of emergency.

Regulatory Update -- Week of August 26, 2011

Energy Efficiency Standards for Set Top Boxes.  The California Energy Commission (CED) will hold a workshop on Wednesday, August 31, 2011, to consider the adoption of energy efficiency standards for a number of appliances, including set top boxes. The CEC considered adopting energy efficiency standards for set top boxes in 2004, but dropped its consideration after CCTA presented the clear and unambiguous Cable Act's federal preemption of state or local regulation of technical standards for subscriber equipment.  CCTA will file similar comments, due August 30th, regarding the CEC's prior exemption of set top boxes from its regulations and reinforce the fact that the CEC remains federally preempted from adopting energy efficiency standards for set top boxes.

Special Advisor to the California Public Utilities Commission.  Jeanne Clinton, a Democrat from Berkeley, has been appointed special advisor to the California Public Utilities Commission.   According to CalTax, Ms. Clinton has been a manager of the Climate Strategies Branch of the commission since 2009, and was an advisor on clean energy and policy planning to the commission from 2006 to 2009 and a consultant to former California Energy Commissioner Jackalyne Pfannenstiel from 2005 to 2006. Ms. Clinton served as an international energy efficiency advisor for the Vietnam Ministry of Industry from 2004 to 2005, and as deputy director for the California Consumer Power and Conservation Financing Authority from 2001 to 2004.  


Regulatory Update -- Week of July 1, 2011

CPUC Safety Rulemaking: This week CCTA, Comcast, and Time Warner Cable filed comments in response to a Proposed Decision issued in Phase 2 of the California Public Utilities Commission's (CPUC) Fire Safety Rulemaking.  The Cable comments asked the CPUC to reject a proposed facilities identification tagging rule, which would require the physical marking of all facilities state-wide by January 1, 2015.  The joint Cable filing proposes that an identification database system should be used instead since that method would be more accurate, cost effective and safer than tagging.

Regulatory Update -- Week of June 24, 2011

Status of Telecommunications Competition. The pending Rulemaking to Evaluate the Status of Telecommunications Competition in California and its Implications for Regulatory Policies has been withdrawn from the Commission's agenda. During the Commission's June 23rd meeting, President Peevey remarked that the Rulemaking has been withdrawn and "won't be back for months, if at all." President Peevey's remarks implied that the Commission's agenda in the telecommunications arena would be focused on the AT&T/T-Mobile merger. Notwithstanding President Peevey's remarks, in a meeting with CCTA June 23rd, Commissioner Catherine Sandoval indicated repeatedly that she is firmly committed to the Competition proceeding, that she continues to work with the ALJ to refine the Rulemaking, and that it will be released in the Fall and will include an examination of VoIP, DIVCA and the level of competition for all telecommunications and video, broadband services.        

Regulatory Update -- Week of June 17, 2011

On Thursday, June 16, 2011, Jack Luetza, Director of the CPUC's Communications Division, announced in a letter the elimination of jeopardy conditions and related rationing for area codes throughout California effective immediately. In response to that letter, the North American Number Plan Administration (NANPA) announced that it "rescinds the jeopardy status, removes the rationed amounts and the associated set aside codes" for the 209, 323,415,530,562,619,650,707,805,916,925, and 949 NPAs effective immediately.  NANPA also announced that it would dismiss the suspended relief project currently open for the 415, 619, 650, and 707. 

This return to numbering normalcy by the CPUC seemingly ends an era of intense oversight of service provider telephone numbering allocation practices. That oversight included number lotteries and a successful petition to the FCC for authority to establish a technology-specific overlay for VoIP, ATMs, and other devices. The CPUC never acted on that particular authority.

According to Mr. Leutza's letter, the CPUC recognizes that the current projected life of those area codes "makes rationing and jeopardy unnecessary."   However, it is not believed that this action reflects a decreased demand for numbering resources by carriers.  The NANPA recently reported to the North American Numbering Council (NANC) that demand for central office codes is at its highest since 2006.

The 408 area code relief process will, presumably, continue as scheduled.

Regulatory Update -- Week of June 3, 2011

Conference of California Public Utility Counsel - MCLE Seminar.  On June 9, 2011, from 3-5 pm at the CPUC's Auditorium in San Francisco the Conference of California Public Utility Counsel (CCPUC) will hold a MCLE seminar.  The Program will explore how the CPUC practitioner needs to be mindful that the practice often requires advocacy beyond the CPUC's "5th floor" and can include the Governor's Office, the Legislature, and other State Agencies. 

The Panel will be moderated by Rachelle Chong, Regional Vice President, Government Affairs, California Comcast. The panelists are experienced practitioners and leaders from a variety of regulated entities and government and include: V. John White, Executive Director, Center for Energy Efficiency and Renewable Technologies; Cliff Rechtschaffen, Special Advisor to the Governor; Ed Randolph California Public Utilities Commission; and Susan Lipper, Senior Manager, Government Affairs at T-Mobile. 

A reception will follow to welcome new CPUC Commissioner Sandoval and Commissioner Ferron. 
 
CCTA's Jerome Candelaria is President of the CCPUC. To find out more go to http://www.ccpuc.org/.

Regulatory Update -- Week of May 27, 2011

CPUC Draft Rulemaking Released to Examine The Level of Competition In The Communications Market, and To Determine If Regulatory Revisions Are Necessary To Produce Just and Reasonable Rates.  A draft Order Instituting Rulemaking to assess whether developments in communications markets warrant changes to the California Public Utilities Commission's (CPUC) current regulatory program for telecommunications services has been released by the CPUC, but the final Order has been held for further consideration by the Commission before the Investigation is commenced.

The Rulemaking is being opened to determine whether the passage of time and the changes in technology and markets that characterize telecommunications warrant a revision to the Commission's Uniform Regulatory Framework (a largely deregulatory program) to ensure that "regulation in California continues to produce just and reasonable rates."  The Commission tentatively concludes that the communications market is moving away from the "voice communications" as a single marketplace to a broad "communications market" consisting of both voice and broadband connections, where broadband connections include both wireline and wireless broadband "because they are capable of providing voice services as well."

Central questions in the Rulemaking include whether voice, text, data and broadband should be considered a single market, or whether the Commission should continue to use voice or some other service to define the relevant market for regulatory analysis, and whether developments in telecom markets provide evidence that the Uniform Regulatory program should be changed, including changes to the monitoring of service quality.  The Rulemaking also inquires as to the success of DIVCA and the reliance on competition for broadband deployment and investment, or "whether there is some other source for the improvements in broadband infrastructure."  Clearly, the Rulemaking opens the door for a broad discussion of the role of regulation in California, and further, there is a potential for an alternate rulemaking to be issued that more stridently promotes a re-regulation.

Regulatory Update -- Week of May 13, 2011

Service Quality Issues.  The Utility Reform Network (TURN) requested the Commission to issue an Order Instituting Investigation or Rulemaking to address telephone service outage and service quality issues. TURN cited telephone outages experienced by AT&T and Verizon customers following severe rainstorms this past winter, and alleged that these outages were the result of inadequate maintenance of the network. TURN also alleged that warm line "phantom calls" were similarly due to inadequate maintenance of the POTS network. Disability Rights Advocates, CalTel (CLECs) and the Division of Ratepayer Advocates (DRA) filed in support of TURN's request. DRA also suggested that service quality rules be applied to VoIP services "in the interest of competitive neutrality."     

CCTA Asks Commission to Reject Excessively Burdensome Regulations for 211 Providers.  Commenting on draft rules governing the provision of 211 dialing for community and social services in times of emergency for areas currently not served by 211 services, CCTA filed comments recommending that the Commission reject excessively restrictive certification requirements for the 211 Lead Entity.  The Commission's draft rules would require non-profit 2-1-1 Lead Entities to meet obligations similar to those imposed on telephone corporations. CCTA also opposed a draft rule that would impose duplicative reporting requirements upon 211 providers.  CCTA noted that 211 providers must recover costs through donations, typically through United Way contributions, and shouldn't be burdened by reporting requirements that are merely duplicative of the CPUC's existing 211 provider reporting requirements.

Regulatory Update -- Week of April 22, 2011

Cable/Broadcaster Technical EAS SubCommittee Meets For First Time.  A technical subcommittee of cable and broadcasters established by CCTA and the California Broadcasters Association (CBA) met this week to discuss issues related to Emergency Alert System (EAS) system limitations and capabilities and how those issues would need to be addressed as California plans for Tsunami tests for the Bay Area, the implementation of the FCC-mandated Common Alert Protocol (CAP) this September, and the FCC-mandated national live code test.  The subcommittee discussed limitations of a proposed "radio only" Tsunami alert test, broadcast system override, "force-tuning", issues stemming from the recent local EAS alerts related to the Japanese Tsunami, and the public education component to EAS messaging.  The subcommittee reached common understanding on each issue - an understanding that is necessary as both broadcasters and cable now work with CalEMA in fashioning the particulars of California EAS testing.

Regulatory Update -- Week of April 8, 2011

Commissioner Mike Florio Event.  The Federal Communications Bar Association (FCBA) will hold an event for CPUC Commissioner Mike Florio on April 12, from 6-8:00 p.m. The event will be at Davis Wright Tremaine, 505 Montgomery, Suite 800. Admission is $25.00 for non members.

Regulatory Update -- Week of April 1, 2011

CPUC Releases Report Entitled "Market Share Analysis of Retail Communications in California 2001 through 2009, Expanding markets, Market Concentration, and the Impact of Merger Activity." In an apparent effort to gear up for a review on the level of competition for basic services, and the need to re-regulate those services, the CPUC's Communications Division (CD) released a Report  entitled "Market Share Analysis of Retail Communications in California 2001 through 2009, Expanding markets, Market Concentration, and the Impact of Merger Activity."  The study concluded that 1) Intermodal competition reduces total market concentration; 2) Wireline telephone is the most concentrated of the individual technology modes; 3) Market concentration remains evident - the overall market is led by only two parent provider companies across all technologies. AT&T's and Verizon's combined market shares of all wireline telephone, wireless, voice, broadband and VoIP subscribership totals 66% of all communication subscribership in California. The study indicated that 54% of fixed broadband was provided by AT&T and Comcast; that 50% of the interconnected VoIP market was provided by Comcast and Time Warner Cable; that 68% of the total voice market, including wireline, wireless and VoIP was provided by AT&T and Verizon; that 66% of all connections in the market were those of AT&T and Verizon. The study concluded that most individual communication technology modes, except VoIP, are HHI concentrated. The Report is dated March 10, 2011, and is available at: Market Share Analysis of Retail Communications in California 2001 - 2009

Inland Empire Gathers Emergency Alert System (EAS) Community.  This week Riverside and San Bernardino Counties hosted a Local Emergency Communications Committee (LECC) meeting where broadcasters, Cable, County Emergency Managers, FCC representatives and state EAS representatives met to discuss the status of the Inland Empire's yet to be adopted 2007 EAS Plan and to explore that general status of federal, state, and local EAS roles and responsibilities.
 
There was a general recognition that local EAS plans in California are rarely reviewed and revised but the FCC's rollout of national EAS tests, Common Alert Protocols (CAP) and other "next generation" EAS necessitates renewed partnerships between CalEMA, local emergency managers, and those providers who convey EAS messages to the public.  Jim Gabbert, Chair of the State Emergency Communications Committee, reported that California's EAS progress continues to wait for federal action on key matters. Fore example, FEMA has yet to release a list of certified EAS devices thereby delaying California's ability to fully comply with the FCC's CAP September 2011 implementation and that more FCC guidance is needed if we are to conduct the first-ever live code National test this fall.
 
Representatives from Charter and Time Warner Cable provided a cable perspective to the group, describing how some cable operators remain under unique local franchise requirements concerning  local EAS. They also reminded county emergency managers and law enforcement officials that Cable serves as a conduit for public warnings and that Cable does not originate warnings.
 
The Inland Empire LECC meeting was recognized as a valuable opportunity for stakeholders to come together to address the evolving EAS landscape and CalEMA and the State Emergency Communications Committee committed to initiate meetings in other local EAS regions throughout the State to help facilitate EAS Plan updates and preparation for next generation EAS.


Regulatory Update -- Week of March 25, 2011

Governor Brown announced this week that he has appointed Mark Ferron as Commissioner of the California Public Utilities Commission. The appointment is Governor Brown's third and final appointment, assuming that President Peevey does not leave the Commission. Commissioner Ferron was a senior partner at Silicon Valley Social Ventures and is a board fellow of the New Teacher Center. From 2001 to 2009 he worked as chief operating officer for the Global Markets Division of Deutsche Bank in London, and has worked previously at Solomon Brothers and the Bank of America. The CPUC Commissioners now includes Commissioners Mark Ferron, Catherine Sandoval, Michael Florio, Timothy Simon and President Michael Peevey.  Ferron, Sandoval and Florio must be confirmed by the California State Senate within one year of their appointment.


 Regulatory Update -- Week of March 11, 2011

CPUC Rulemaking: VoIP Contribution to Public Purpose Programs.   CCTA filed Opening Comments in the CPUC's Rulemaking proposing to require interconnected VoIP providers to contribute and remit surcharges associated with public purpose (universal service) programs, and defining interconnected VoIP providers as "telephone corporations" as the basis for jurisdiction to do so. CCTA's comments focused on the necessity for the Commission to obtain legislation to expand the surcharge base, and given the need for legislation, argued that there was no basis to treat interconnected VoIP providers as telephone corporations for any reason. CCTA's comments were largely mirrored by other providers. TURN's comments argued that interconnected VoIP providers should be classified as telephone corporations for all purposes. The Commission's Consumer Protection and Safety Division filed comments, and a Motion to Modify the Proceeding, both arguing that interconnected VoIP providers should be subject to the Commission's consumer protection rules. Reply Comments are due March 22, 2011. Responses to the CPSD Motion are due April 4, 2011.       

Local Jurisdiction and Public Meetings on Area Code Relief.  Next week, the CPUC will conduct a series of local jurisdiction and public meetings in the South Bay to present plans for establishing a new area code to relieve the near depleted 408 area code.  The telecommunications industry has unanimously recommended that the new 669 area code be implemented in the form of an overlay, a plan that will require ten-digit dialing but will not require existing customers to change area codes.  A plan to split the current 408 (where some customer must change area codes) will also be presented. The North American Numbering Plan Administrator (NANPA) predicts that the 408 will exhaust in the fourth quarter of 2012.  No other California area code is predicted to exhaust within the next 36 months, though yesterday NANPA reported that NXX code assignments nation-wide have rebounded from recession-era lows.  Assignments for 2010 were second only to the year 2006. Moreover, carriers are returning less numbers than ever before suggesting a steady and strong demand for telephone numbers - and area codes.

Regulatory Update -- Week of February 25, 2011

CPUC Rulemaking: VOIP Contribution to Universal Service Surcharges: The CPUC opened a Rulemaking in December 2010 proposing to require interconnected VoIP service providers to contribute and remit surcharges to its public purpose programs, such as the universal service program, the high cost funds, the teleconnect fund and the deaf and disabled fund. The CPUC has tentatively determined that it has the authority to require contributions from VoIP providers, since, "for the purpose of this proceeding" the CPUC has determined that interconnected VoIP service providers are "telephone corporations." Notwithstanding this determination, it is accepted by many that the CPUC will need legislation to implement its proposal. AT&T is now sponsoring AB 841, currently a spot bill introduced by Assembly member Buchanan, to ensure that legislation can be adopted to meet the CPUC goal.  Comments on the Rulemaking are due March 7.     

SBOE Opinion on Possessory Interest Usage Report Confidentiality: Tax Counsel at the State Board of Equalization has provided an opinion concluding that the express terms of confidentiality statutes from the Revenue and Taxation statutes do not require county assessors to keep the Possessory Interests Annual Usage Reports secret. Comments are due by March 4, and an interested parties meeting will be held at the Board's headquarters on March 14, 2011.   

Basic Telephone Rate Deregulation: A Ruling was issued in the High Cost Fund proceeding in December 2010 by Commissioner Bohn, just prior to leaving his office. The Ruling was designed to investigate whether or not competition was sufficient in the telephone market to adequately protect ratepayers from unreasonable rate increases for basic telephone rates, and was released on the heels of total basic telephone rate deregulation in California. In January, President Peevey issued a second Ruling in the proceeding delaying the investigation, and suggesting a potential separate proceeding form the High Cost Fund issue.

New Commissioners at the CPUC: The terms of two CPUC Commissioners, Bohn and Greuneich, expired at the end of 2010. Governor Brown has appointed two consumer advocates,  Catherine Sandoval and Michael Florio to replace them. Both Commissioners must be confirmed by the State Senate but may serve up to one year without confirmation.  A third Commissioner, Nancy Ryan, was never confirmed, and Governor Brown appointed her to the position of Assistant Executive Director at the CPUC, leaving her position as Commissioner open for another Brown appointment. Further it is rumored that current Commission President Peevey may not stay on the Commission for his full term, leaving a fourth potential appointment for Governor Brown.  If that occurs, the only remaining Commissioner appointed by former Governor Schwarzenneger would be Commissioner Simon.      

Regulatory Update -- Week of July 30

CPUC Holds Workshop Addressing E911 in Multi-Line Business Environment
This week the California Public Utilities Commission conducted a two-day workshop to examine the “regulatory contours” of enhanced 9-1-1 provisioning for multi-line telephone systems (MLTS) used by business customers of California local exchange carriers. The Commission heard from CALNENA, the California County Coordinator Task Force, ILECs, vendors, and CalTel regarding the need, challenges, and solutions related to providing accurate caller location and call back information from businesses that rely on MLTS.  Workshop participants recognized that carriers and vendors offer a variety of solutions for providing accurate 911 location data to customers with both traditional PBXs and newer IP based systems. Participants also acknowledged decisions and responsibility ultimately fall on the customer who must decide to subscribe to the proper service and obtain the necessary customer premise equipment needed to facilitate E 9-1-1 provisioning in an MLTS environment.
 
CALNENA recommended that California use model legislation prepared by the National Emergency Number Association (NENA) that would require sufficiently precise caller location information for 9-1-1 calls made using MLTS. The model legislation would apply to workspaces with over 7,000 sq. ft. on a single level, require automatic location identification (ALI) maintenance, and provide limitation of liability for MLTS related providers.
 
In response to questions posed at the workshop by Commissioner Simon, the Assigned ALJ indicated that MLTS-related E9-1-1 testing falls within the scope of the proceeding. The Assigned ALJ also acknowledged that workshop participants believed legislation, and not CPUC regulatory action, was needed. The Commission plans to produce a workshop report followed by the scheduling of working groups this fall.
 

 Regulatory Update -- Week of July 23

PG&E Class Action Suit.  Cable and other communications companies attached to PG&E poles received a Letter for Indemnification from PG&E for legal costs incurred associated with a pending class action suit against PG&E by California landowners. The landowners claim that PG&E has unlawfully allowed third party attachments on its poles, despite the alleged fact that the landowners gave PG&E easement rights limited to the distribution of electricity. Plaintiffs seek not only monetary damages for past practices, but also an injunction prohibiting the continued unauthorized use of the subject easements. Thus the case raises some question regarding cable’s obligation to reimburse, or indemnify PG&E, but also raises much more serious questions regarding the right of cable operators to remain on PG&E poles, as well as potential liability for alleged trespass until now. CCTA is working with its members and outside counsel to defend the industry in the litigation. Obviously, a favorable result for cable will likely deter copy-cat class actions for other utilities in California, as well as in other states; an adverse outcome will guarantee similar cases will be filed in virtually every other state.        

Regulatory Update -- Week of July 2

Southern California Edison Pole Attachment Administrative Fee.  CCTA has provided Southern California Edison with a letter inquiring about the basis for imposing an administrative fee, usually charged for an initial permit, to poles already permitted but recently changed out by Edison. Once Edison provides the basis for the charges, CCTA will pursue discussions to eliminate the fee for permitted attachments. 

 

Regulatory Update -- Week of June 25

Cable and CIPs Urge Commission to Consider Proposed Liability Protection Rule.  This week CCTA joined Cox, Comcast, TWC, AT&T and Frontier in opposing a Motion by CPSD, TURN, and DRA to exclude a proposed rule change concerning utility liability from Phase 2 of the Commission’s Fire Safety OIR.
 
In the Phase 2 workshops, Communications Infrastructure Providers (“CIPs”) and electric utilities proposed a rule change to GO 95 that would clarify that the new rules are not intended to create any private right of action or to create liability that would not otherwise exist.  CPSD’s motion argues that the overarching goal of the proceeding is to reduce fire hazards associated with utility facilities and that the proposed rule fall outside of the proceeding’s scope.
 
The Cable/CIP response argues that the proposed liability protection rule is within scope as it would ensure compliance with rules pertaining to fire safety while avoiding a more litigious and less cooperative compliance process.  The response also asks that if the liability protection rule issue is deferred to another proceeding, CIPs must be afforded a full and fair opportunity to participate.
 
CIPs and electric utilities are pursuing the proposed rule change out of a growing concern that in a California civil lawsuit, the court’s finding of a “violation” of the general orders can lead to a determination of negligence per se.


 Regulatory Update -- Week of June 18

Enhanced 9-1-1 provisioning for single and multi-line telephone systems.  This week, the California Public Utilities Commission issued an “Assigned Commissioner’s and Administrative Law Judge’s Ruling “ (ACR) establishing workshops to examine enhanced 9-1-1 provisioning for single and multi-line telephone systems (“MLTS”) used by business customers of local exchange carriers.


According to the ACR, the scope of the proceeding will be to examine such provisioning and to “extend, through Commission rules, utility tariffs, contracts and interconnection agreements, or a proposal to the state legislature, the protections of E9-1-1 service to those telephone systems utilizing traditional analog and digital voice telephony or fixed and nomadic Voice over Internet Protocol telephony.”
 

It is unclear whether the Commission intends to use this proceeding to expand its jurisdiction over IP-based voice service providers.  While the ACR’s scope specifies “fixed and nomadic VOIP telephony” as within the scope of the proceeding, the ACR questions to be address at workshops address only IP-based MLTS systems.  The ACR makes no specific reference to Cable, Vonage, or any non-certificated IP service providers.  Moreover, the underlying OIR specifically seeks comment from a list that includes ILECS, 9-1-1 representatives, Nortel and Cisco Systems, but does not mention cable.
CCTA will plan to participate in the workshops scheduled for July 26 and 27.
 

Regulatory Update -- Week of June 11

Commission Establishes 211 services Rulemaking.  This week the CPUC released a Final Decision granting a Petition for a Rulemaking as to whether to enable emergency access to 211 services in counties and localities without existing 211 centers.  A group called “211 California” submitted the Petition.

The Decision is supportive of questions and suggestions raised by CCTA and others concerning the need for more information from “211 California” before the Commission changes its current rules governing 211 services.  Specifically, CCTA raised questions about the impact of a part-time 211 program on routing protocols and cost and concerning the basis for establishing 211 California as the “lead entity” for the entire state.
 
The Decision also rejects the Verizon Wireless argument that wireless provision of 211 should not be considered in the proceeding.  The Commission agreed with the wireless carrier that the CPUC has no jurisdiction over wireless rates, but said it would nevertheless include the wireless carriers in its assessment of expanding the 211 program to provide emergency service in unserved areas.
 
The Decision establishes a schedule calling for Opening Comments on August 3, 2010, Workshops on September 14, 2010, and a final decision on the Commission’s agenda for April 2011.   CCTA will convene a conference call in early July to plan for Opening Comments and workshops.
 

Regulatory Update -- Week of June 4

SDG&E Withdraws “Fiber Optic Cable In Gas Pipeline” Tariff.  Today SDG&E notified the CPUC that it withdrawing its Fiber Optic Cable in Gas Pipelines Tariff (Schedule G-FIG) due to lack of interest. In an Advice Letter, SDG&E told the Commission that no contracts for the fiber optic cable service had been executed since the establishment of the service in 2003. SDG&E also said it “does not foresee future demand for FIG service.
 
CCTA successfully opposed Sempra Energy’s original request to offer FIG service, arguing that Sempra’s original proposal would have unduly advantaged Sempra’s affiliate, “Sempra Fiberlink,” in competing against California Cable Providers.

Regulatory Upate -- Week of May 28

FCC Establishes Requirements For One-Day Porting of “Simple Ports.”  Last week, the FCC released a Report and Order (FCC 10-85) adopting a revised recommendation of the North American Numbering Council (NANC) that streamlines the telephone number porting interval and validation requirements for the completion of simple ports within one-business day.  The Order marks a success for the Cable Industry, whose members urged the FCC to minimize the number of standardized “data fields” necessary to effectuate a simple port.  Some telecommunications industry segments had originally sought adoption of rules that would have provided for more than 100 “data fields” for simple ports.  The FCC ultimately adopted 14 required “data fields.”  The FCC also clarified that change in directory listings should not disqualify a port from being “simple” and adopted a NANC recommendation that requested Customer Service Records (CSR) are to be returned within 24 hours unless otherwise negotiated. Moreover, carriers cannot require a carrier-assigned pass code in order to obtain access to a CSR.  CCTA serves on the NANC on behalf of NCTA.

CPUC released Smart Grid Proposed Decision.  The California Public Utilities Commission (CPUC) released a Proposed Decision in its Smart Grid Proceeding on Friday, May 21st.  The decision sets out requirements for smart grid deployment plans, which are to be filed at the Commission by the electric utilities in June, 2011.  The Commission proposes to require an electric utility’s Smart Grid Deployment Plan to demonstrate that the utility has considered whether third party communications networks can provide cost-effective communications that meet the security and performance requirements of the Smart Grid.  Before the Commission approves a specific Smart Grid infrastructure investment, it will ascertain whether investments in Smart Grid are cost-effective and whether a utility has adequately considered a range of alternatives, especially those concerning the use of existing and future communications infrastructure operated by third parties.
 
The initial Rulemaking sought comments from parties regarding whether the Commission should determine a demarcation point for utility investments, effectively prohibiting utility ownership of devices installed on the customer-side of the meter. CCTA’s comments conceded that it may be too early to determine whether a clear demarcation point between a utility and the consumer is necessary or appropriate, and urged the Commission to consider the issues relating to the necessity of a demarcation point in a future proceeding or future phase of this proceeding.  The proposed decision declines to adopt a demarcation point at this time, but states that the Commission will consider parties’ arguments at the time a utility proposes investments in devices on the consumer-side of the meter.  If a utility proposes using ratepayer funds for a device or technology that it anticipates owning and operating that is placed inside a customer’s home or establishment, the Commission will expect the utility to fully explain and justify why such an investment is needed, and explain why such devices or technologies have failed to be widely adopted. 
 

Regulatory Update -- Week of May 7

CCTA Opposes “Fire Risk” As Reason To Allow Undergrounding.  Today CCTA joined Comcast, TWC, and Verizon in Comments filed at the CPUC opposing an SDG&E proposal to revise Rule 20A to add “fire risk” to the list of reasons to permit undergrounding under that rule.  Our comments also argue that an expansion of Rule 20A would increase communications infrastructure provider costs, and that any new proceeding to consider Rule 20A must first resolve fundamental issues related to cable/telco participation in undergrounding and, most importantly, address the issue of who should bear the costs.  The Commission is expected to decide whether to establish a new undergrounding rulemaking once it has considered comments.

 Regulatory Update -- Week of April 23

The California Public Utilities Commission issues an Order Instituting Rulemaking on Enhanced 9-1-1 service.  On April 14, 2010, the California Public Utilities Commission (“Commission”) issued an Order Instituting a Rulemaking (“OIR”) to examine the provision of Enhanced 9-1-1 (“E911”) service for single- and multi-line telephone systems (“MLTS”) used by business customers of California local exchange carriers (“LECs”).

The OIR proposes to extend the protections of E911 service to MLTS and single-line business telephone services—including telephone systems utilizing traditional analog voice telephony or fixed Voice over Internet Protocol telephony—through Commission rules, utility tariffs, contracts, and interconnection agreements, or a proposal to the state legislature.  While not expressly excluded, the OIR does appear to extend to wireless service.  The extension of existing protections is based on an alleged gap in the ability of public safety answering points (“PSAPs”) to identify a caller’s exact location when using certain telephone systems.
 
The OIR sets forth the following procedural schedule:
 
May 10, 2010                      Parties File Opening Comments on Scope and Issues in Preliminary
                                              Scoping Memo and Appendix A (Staff Overview of Aspects of E911
                                              for MLTS)
June 2010                              Scoping Memo
July 2010                               Workshop
September 2010                     Workshop Report Issued
October 2010                         Parties file Comments on Workshop Report
February 2011                        Proposed Decision Mailed for Comment
March 2011                            Final Decision on Commission Agenda
 
CCTA will hold a call early next week to discuss potential association comments in the OIR.
 
General Order 156 (GO 156).  The Commission issued a Ruling in its GO 156 proceeding reviewing its diversity procurement program. The Ruling establishes a schedule for two workshops on supplier diversity procurement issues facilitated by the Commission’s Utility Supplier Diversity Program staff.  The first workshop—scheduled for May 5, 2010—will “focus on underutilized areas” of procurement, i.e., where there are few or no small businesses and [WM]DBEs bidding or receiving utility supply contracts.”  The second workshop—scheduled for June 7, 2010—will “focus on barriers [WM]DBEs and small businesses face when trying to compete for utility supply contracts.”  The Commission’s staff will file a report on each of the workshops no more than 21 days after each of the workshops, and parties will have the opportunity to submit comments on each of the reports.
Additionally, the Commission intends to hold oral argument on issues related to utilities' timelines for meeting the voluntary target goals set forth in Paragraph 8 of GO 156.  As part of its oral argument, the Ruling requires all utilities covered by GO 156 to submit written responses relating to one and two year steps proposed to be taken by the utility to reach targeted goals for 2011 and 2012, and identify subgroups that are underutilized by your procurement team.
 
As you know, cable operators are currently exempt from GO 156 requirements, although there is a bill (AB 2758 – Bradford) pending in the Legislature designed to require cable participation.  
 
 

Regulatory Update -- Week of April 9

Judge Grants Motion To Exclude Undergrounding Issues From Safety OIR Workshops.   This week a CPUC Administrative Law Judge (ALJ) granted the Communications Infrastructure Providers (CIP) Coalition’s motion to exclude undergrounding issues from the scope of the Safety OIR Proceeding.  SDG&E and Los Angeles had sought to use the Safety OIR as a vehicle to modify Tariff Rule 20 undergrounding rules to include fire risk among the reasons for placing facilities underground. SDG&E proposed an undergrounding plan that did not include communications utilities. Instead, SDG&E suggested it would only underground its own facilities and leave cable and telephone on the pole. CCTA and its members joined other CIP’s in arguing that issues related to undergrounding are far too complex to address in a proceeding limited to fire safety, and that undergrounding deserves its own proceeding.  The ALJ Ruling asks parties to file and serve comments on May 7, 2010, as to whether the Commission should open a new proceeding to consider adding fire risk to the list of reasons to permit undergrounding under Tariff Rule 20.   
 
Safety OIR Workshop Established for Governmental Agencies.  In another Safety OIR Ruling this week, a CPUC Administrative Law Judge established a workshop for governmental agencies followed by a public participation hearing in Sacramento on May 25, 2010.  The purpose of the workshop is to invite governmental agencies to provide input on ways to reduce the fire risk associated with overhead power lines and telecommunications facilities.  In a recent filing, CCTA and its members joined the CIP Coalition in recommended that the Commission include the State Chief Information Officer in that workshop.  The CIP Coalition noted that the OCIO is dedicated to keeping Californians connected in times of crisis and that OCIO’s participation is essential if the Commission is to understand whether its proposed rules affect the deployment and management of California’s 9-1-1 and other information technology resources.
 
 Regulatory Update -- Week of March 26, 2010

Public Utility Commission holds “Smart Grid” Workshops.  Last week the Commission held three days of workshops in its “Smart Grid” proceeding. Presentations were made by parties that are participating in smart grid working groups nationally that will assist us in making the point that broadband facilities should not be duplicated if the grid is to be economic, and that information on the customer side should be in the customer control. These parties included representatives from wireless groups, Cisco and Google. Presentations were also made by electric companies, which are concerned about Cybersecurity, and wish to have the opportunity to provide service on both the “electric” side of the grid and the “customer” side of the grid. Reply Comments will be submitted in April.

CCTA Comments on Petition to Expand 2-1-1 Dialing to Rural Areas.  This week CCTA submitted a Response to a Petition by 2-1-1 California seeking to modify the Commission’s current rules so that the Commission can name 2-1-1 California as the “lead entity” to enable emergency access to 2-1-1 services in counties and localities without existing 211 centers. 
The 2-1-1 telephone number provides access to social services provided by community-based organizations and government agencies. The Petition suggests that 2-1-1 would have an expanded role in times of emergency.

CCTA did not oppose the Petition but suggested that more information was needed to help frame technical and operational issues, including how the change would affect call routing. CCTA suggested these issues could be addressed through workshops.  A companion bill, AB 2737 (Block), would authorize the CPUC to designate a lead entity for the implementation of a 2-1-1 dialing system and would extend liability protection to Information and Resource providers.
 
 
Regulatory Update -- Week of March 5, 2010
 
CCTA Files Complaint Against San Diego Gas & Electric (SDG&E).   After seventeen months of negotiations, CCTA filed a complaint against SDG&E for failure to justify its pole attachment rates. SDG&E’s rates are four times the rate charged by AT&T for poles in SDG&E’s service territory, and are three times the average rate for pole attachments charged by electric utilities nationally. SDG&E has continued to provide inconsistent and incomplete backup support documentation to justify its rates, and the documentation provided suggests improper accounting practices. For example, SDG&E has provided inconsistent statements regarding the number of poles it owns, and has engaged in retirement accounting practices that inflate pole investment. SDG&E has never explained how it determines embedded costs.
 
Regulatory Update - Week of February 26, 2010
 
Smart Grid Proceeding at the California Public Utilities Commission.  The California Public Utilities Commission (CPUC) released his ruling today revising the schedule for Rulemaking to Consider Smart Grid Technologies.  The original dates for the workshop were March 10 – 12, 2010; the new dates are March 17 – 19, 2010.  The workshop will be held at the CPUC, 505 Van Ness, San Francisco, Ca.   Comments are due to the CPUC on March 5. 
 
CCTA will request that the Commission recognize the importance that existing broadband networks and providers can and should play in Smart Grid deployments.  Existing broadband networks can serve as a least-cost alternative, and obviate the need to deploy redundant communications networks.  CCTA-members broadband providers are capable and experienced in providing the secure and reliable data transmission paths that underlie Smart Grid deployments. To that end, the Commission should not adopt rules or regulations that would foreclose competition or the potential for competition in the delivery of home energy management and other Smart Grid-related products and services. 
 
 
Regulatory Update - Week of February 19, 2010 
 
California’s Smart Grid Infrastructure.  The California Public Utilities Commission has issued a joint ruling inviting comments and scheduling workshops to adopt policies to promote California’s Smart Grid infrastructure. The Opening Comments are due March 5, with reply comments due April 1. The workshops will be held March 10, 11 and 12.  Specifically, the Commission solicits information to enable it to provide policy guidance so that electric utilities may develop Smart Grid deployment plans by July 1, 2011.
 
CCTA will file comments and participate in the workshops. Our comments will essentially mirror earlier comments submitted by NCTA before the FCC, staking out a placeholder for the use of cable networks to deliver the benefits of Smart Grid technologies at low cost to consumers. We will also advocate an open energy management architecture that delineates the utility domain and the consumer domain.
 
CCTA Joins Motion To Exclude “Undergrounding” Issues From Safety OIR.  This week, CCTA joined Comcast and other Communications Infrastructure Providers in a formal motion to exclude proposed rule changes addressing undergrounding issues from Phase 2 of the California Public Utilities Commission’s Safety Rulemaking. The Motion argues that that the proposed rule changes that would consider undergrounding to be a GO 95 fire safety measure is outside the scope of the proceeding and is a collateral attack on prior Commission decisions that expressly determined that undergrounding is not be considered a fire-safety measure.
 
The Motion is in response to Commissioner Simon’s Scoping Memo that states that Phase 2 “may consider” adding fire risk to the list of reasons to permit undergrounding under Tariff Rule 20.”  That Scoping Memo prompted SDG&E and the County of Los Angeles to suggest changes to electric utility tariffs to allow use of ratepayer funds to convert aerial facilities to underground facilities. SDG&E’s proposal contemplates undergrounding only supply facilities, while leaving cable and telecommunications lines on poles.
 
If the Commission does not rule – or rules against – the Motion, parties to the Safety OIR will begin considering the proposed undergrounding rules in May workshops.
 
 
Regulatory Update - Week of February 12, 2010
 
Commission’s GO 95-related Fire Safety Workshops.  Last week, the Commission’s Consumer Protection and Safety Division (CPSD) tentatively agreed to support changes to the Commission’s current rules concerning the establishment of safety maintenance programs; the resolution of safety hazards contained in current GO 95 Rule 18 A; and the reporting of safety hazards from one utility to another (Rule 18B).
 
CPSD’s compromise came at last week’s GO 95 Fire Safety Workshops where Cable and other CIPs expressed concern that the current rules adopted in the hurried Phase 1 Safety OIR Decision were laden with too much detail and process that detracted from the underlying purpose of the safety rules. CIPs also wanted rules that allowed for greater consistency with current business practices.  SDG&E continues to oppose efforts to modify the existing Rules 18 A and 18 B claiming that those rules in current form have forced CIPs to be more responsive to SDG&E-identified hazards.
 
Cable and CIPs are now working to resolve concerns regarding a CPSD proposal that would mandate annual “patrol” inspections in Extreme and Very High Fire Hazard Zones and would additionally require “detailed inspections” once every ten years on all overhead communications lines installed on joint use poles. Cable and other CIPs contend that the proposed inspections are duplicative, excessive, and not in the public interest given the negligible fire risk posed by communications facilities.  This issue will be further addressed at workshops resuming on February 24.
 
Market Sourcing Regulations/Cost of Performance:  On February 10, the Franchise Tax Board held an interested parties meeting to discuss possible amendments to California Code of Regulations, Title 18, Section 25136 (sales other than sales of tangible personal property), to implement the recently enacted Revenue & Taxation Code Section 25136 that applies for tax years beginning on or after January 1, 2011. This is the new market sourcing regulation that will replace the existing cost of performance rules.
The discussion was focused on variations of Iowa, Ohio and other states approaches to where the benefit of the service or use of property is received for purposes of assignment of sales. There was a lot of discussion related to how to define a "purchaser" and how to determine their location in determining if the benefit received from a sale is attributable to California. FTB has allowed the comment period to continue until March 15th, 2010 with regulations to be drafted sometime in April.
The California Taxpayers Association (Cal-Tax) is monitoring these workshops.  If you are planning to submit comments and would like to share with Cal-Tax, let us know.   
 
Regulatory Upate - Week of February 5, 2010
 
Nancy Ryan Sworn in as the newest CPUC Commissioner.  On Thursday, February 4, 2010, California Public Utilities Commission (CPUC) President Michael R. Peevey administered the Oath of Office for new Commissioner Nancy E. Ryan. As mentioned in last week’s CCTA Update, Ms. Ryan is an economist with expertise in energy markets, climate change policy, and the public health and ecological impacts of energy production. Since February 2009, she has served as the CPUC’s Deputy Executive Director for Policy.  She joined the CPUC in January 2006 as President Peevey’s Chief Energy Advisor and served as his Chief of Staff from April 2007 to February 2009. Commissioner Ryan will have one year to be confirmed by the State Senate.
 
Federal Communication Commission’s Network Outage Reporting System (NORS). The Federal Communications Commission (FCC) issued on February 2, 2010, a Public Notice asking for comments, due March 4, on a California Public Utilities Commission (CPUC) Petition for Rulemaking, in which the Commission requested password protected access to the FCC’s Network Outage Reporting System (NORS).
The CPUC currently requires all facilities-based certificated and registered carriers to file with the Communication Division and the Division of Ratepayer Advocates, a written report detailing when California service is affected, regardless of whether or not the California outage independently would meet the FCC’s significant disruption and outage reporting threshold. In fact, the CPUC already also requires concurrent reporting at the CPUC with FCC NORS reports. The Petition thus appears to be an effort to expand access to reports filed by cable, and potentially, VoIP providers, although VoIP service is currently exempt from the FCC’s NORS filing requirement.

 
Regulatory Upate - Week of January 29, 2010

Governor Appoints Nancy Ryan as the newest California Public Utilities Commissioner.
 
Commissioner Ryan is an economist with expertise in energy markets, climate change policy, and the public health and ecological impacts of energy production.  Since February 2009, she has served as the CPUC’s Deputy Executive Director for Policy.  She joined the CPUC in January 2006 as President Peevey’s Chief Energy Advisor and served as his Chief of Staff from April 2007 to February 2009.  While at the CPUC, Commissioner Ryan has played a key role in developing policies in the areas of climate change, electricity market design, and renewable energy.  In the course of these efforts she has helped to build and enhance the CPUC’s working relationships with its sister energy agencies and the Federal Energy Regulatory Commission, as well as the Legislature and Governor’s office. Commissioner Ryan must be confirmed by the State Senate.
 

 

Safety OIR Workshops.  This week participants in the Public Utilities Commission’s ongoing Safety Rulemaking workshops reached a favorable compromise on revisions to rules addressing initial pole construction and modification to poles (GO 95 Rule 44).  The compromise resolves a key dispute concerning which safety factor applies when adding facilities to a pole. Some electric utilities, particularly SDG&E, wanted a rule requiring that a pole meet “Initial Construction” safety factors of 4.0 whenever additional facilities are added to the pole.  For cable companies, that “return to new condition” requirement would dramatically add to construction and pole replacement costs since our attachments would more likely cause a pole to “fail” under the higher safety requirement.  With the surprising support of Commission Staff, a revised rule was tentatively agreed upon requiring that addition to facilities not bring a pole below a safety factor of 2.67 (the current California rule).
 
The Workshop did not reach agreement on a CIP proposal to Rule 44 that would require cooperation between companies when performing load calculations.  The matter will be addressed once again in workshops next month.
 
Parties also continued work on GO 95, Rule 48, a rule containing a “no fail” provision regarding structure design and construction. The Commission Staff continues to oppose changes to this strict liability provision of GO 95, arguing that the provision gives utilities a greater incentive to construct and maintain a safe plant.  Electric utilities and CIPS contend (and the Commission’s engineers agree) that is technically impossible to design a plant that will “never fail” and the rule needs to be revised so that utilities can comply.  Workshop participants did agree to further consider alternatives to the rules through a Rule 48 working group.
 
Regulatory Update -- Week of March 12, 2010
Regulatory Upate - Week of January 15, 2010
 
California Public Utilities Commission Begins Phase 2 Safety OIR Workshops.  This week the Commission held the first two days of workshops in Phase 2 of the Safety OIR 08-11-005. The workshops will consist of 2 to 3 day meetings, twice a month, through May. The purpose of the workshop is to “collaboratively explore” proposed rule changes relating to General Orders 95 and 165 related to inspection and maintenance of facilities, and to the extent possible to agree on specific proposed rules to be recommended for adoption by the Commission. CCTA will participate throughout the process.
 
Battery Back-up Proceeding.  Comcast and CCTA filed Joint Comments on the Alternate Proposed Decision of Commissioner Peevey in the proceeding relating to customer premise backup battery requirements. The Alternate PD requires the same customer education program as the Proposed Decision of Commissioner Simon, but does not impose CPUC jurisdiction over VoIP providers. The Commission is now scheduled to vote on either the PD or Alternate PD on January 21. 
 
 
Regulatory Update - Week of January 8, 2010 
 
Backup Battery Proceeding.  An Alternate Proposed Decision in the proceeding examining backup battery issues at the customer premise was issued by CPUC President Peevey.  The Alternate Proposed Decision proposes the same customer notification requirements as the Proposed Decision of Commissioner Simon, but does not assert that the Commission has jurisdiction to impose the requirements over VoIP providers.

 
 
2009 Year End Report
CALIFORNIA PUBLIC UTILITIES COMMISSION
 
Backup Battery Proceeding. CCTA and its members effectively reversed a Proposed Decision at the CPUC to require a minimum 8 hour standard for backup batteries at the customer premise. The current decision requires customer education programs regarding the backup battery for VoIP provided at the customer premise.
 
Tariff Proposal Reversal. CCTA reversed a tariff proposal filed at the CPUC by SDG&E to assume responsibility to inspect and maintain cable network overhead plant.
 
Wood to Steel Utility Pole Proposal. CCTA worked with its members to reverse proposals by SDG&E to require new applications for all poles changed out from wood to steel, and facilitated a streamlined process for the change out of cable plant to the steel poles.
 
Pole Attachment Rates. CCTA negotiated reduced pole attachment rates with AT&T. Pole attachment rate increases were avoided for two years with Southern California Edison, and the increase for 2010 was kept to a minimum, far less than the rate proposed by Edison. Negotiations were also held with PG&E, with the proposed rate confirmed, and negotiations with SDG&E continue.         
Safety Order Instituting Rulemaking (OIR) – Phase 1 and 2. This year, the Commission’s Consumer Protection and Safety Division, electric utilities, cable, wireline, and wireless phone service providers engaged in a marathon rulemaking to revise and clarify Commission regulations relating to the Safety of Electric utility and communications infrastructure provider facilities.  The OIR was established in response to the 2007 Southern California fires.
 
The Rulemaking was divided into two phases: In August, the Commission adopted a Phase 1 Decision adopting measures said to reduce fire hazards that could be implemented in time for the 2009 autumn fire season in Southern California.  The purpose of Phase 2 is to address measures that require more time to consider and implement. CCTA, joined by its members and a broader telecommunications coalition, recently submitted proposed rule changes in the Phase 2 proceeding aimed at providing reasonable rules while respecting the fact that cable and telecommunications facilities pose significantly less risks than those associated with electric facilities. Phase 2 workshops will begin in January 2010.
 
SDG&E’s De-Energization Application. In September, the Commission voted 4-1 to reject SDG&E’s plan to proactively cut power to customers in high fire danger weather conditions.  The final decision also rejected SDG&E’s requested tariff which would have expressly protected SDG&E from liability resulting from proactive de-energization.   That decision was a success for the cable industry, who along with a telecommunications coalition, participated in seven months of workshops, pleadings, and meetings with regulators and other public officials in an effort to convince the Commission to reject the plan.
 
CCTA is now participating in a “collaborative stakeholder process” coordinated by SDG&E with the aim of developing a comprehensive fire prevention program for the San Diego area. The Federal Mediation and Conciliation Services facilitate the meetings.
 
CALIFORNIA EMERGENCY MANAGEMENT AGENCY
 
California Alert and Warning Workgroup. CCTA continues to actively participate in the development of California Emergency Management Agency’s (Cal EMA) work plan to implement the recommendations set forth earlier this year by the “Alert and Warning Workgroup.”  This workgroup was established to implement the provisions of AB 2231 (Chapter 764, Statutes of 2006) regarding enhancing alert, notification, and warning systems in California through public/private partnerships.