California PUC Requires Non-dominant Interexchange Carrier Registrants to Obtain a Performance Bond and Pay a Minimum Annual User Fee

October 25, 2010

The California Public Utility Commission has revised its registration requirements for uncertificated non-dominant interexchange carriers to require existing registrants to obtain a performance bond no later than December 1, 2010, that is equal to 10 percent of intrastate revenues reported by the registrant during the preceding calendar year or $25,000, whichever is greater, and to pay an annual user fee based on the Commission-established rate in effect at the time (currently 0.18% of gross intrastate revenues) or $100, whichever is greater. Annual Advice Letters demonstrating continued compliance with the performance bond requirement will thereafter be required by March 31 each year. If a registrant is deemed delinquent and is more than 120 days late in providing the executed bond, the Communication Division is required to prepare a resolution for the Commission’s consideration to revoke the registration.

The requirements only apply to registrants such as pre-paid calling card providers that obtain authority pursuant to Section 1013 of the Public Utility Code and do not currently apply to a carrier that holds a Certificate of Public Convenience and Necessity (CPCN) pursuant to Section 1001 of the Public Utility Code or that holds both a CPCN and is a registrant for certain services. However, the Commission indicated that it may in the future apply similar performance bond and annual fee requirements to carriers with a CPCN.

If you have questions regarding this matter or would like further information regarding the specific filing obligations, please do not hesitate to contact us: 

Danielle C. Burt, Counsel, 202.373.6039

This article was originally published by Bingham McCutchen LLP.