ALJ Proposes California PUC OK Frontier Buy of Verizon Systems Subject to Conditions
An administrative law judge proposed the California Public Utilities Commission approve Frontier Communications' buy of Verizon's wireline system in the state subject to conditions and related settlements with various groups. Among the conditions in the ALJ's 82-page proposed decision (PD):…
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Frontier "shall offer broadband connectivity to all Lifeline-eligible Verizon California, Inc., customers at the rate and on the terms contained in its Memorandum of Understanding with the California Emerging Technologies Fund," and "Prior to the closing date of the Transaction, Verizon California, Inc., shall repair all known General Order (GO) 95 non-conformances within its California service territory or, to the extent completion of all repairs within that time period is impossible, shall at the closing date escrow with the Commission in accordance with the terms of this decision the balance of funds necessary to complete the repairs." The PD will appear on the CPUC's Dec. 3 agenda, said an attachment, which noted the commission could act then or postpone a vote. A Frontier statement called the proposal "favorable," and noted the company had already received Department of Justice antitrust clearance and FCC approval of its planned purchase of wireline systems in California, Florida and Texas (see 1509030063). It said it expected to close the transaction by the end of Q1. In a Friday statement, Kathleen Abernathy, executive vice president-external affairs, said Frontier was pleased the proposed decision says its proposed settlements with the Office of Ratepayer Advocates, The Utility Rate Network, Center for Accessible Technology, California Emerging Technology Fund, Greenlining and others "address the public interest requirements to be considered by the Commission. ... We will continue to work through any remaining issues raised in the PD and address them in our comments, which are due in a few weeks."