Regulatory Update: California Public Utilities Commission Issues Order on Carrier of Last Resort Rules

Strategic Insights -

The California Public Utilities Commission has released a regulatory update in the form of an Order Instituting Rulemaking Proceeding to Consider Changes to the Commission's Carrier of Last Resort (COLR) Rules. The update pertains to the COLR rules and their implications for service providers and customers in California. The proceeding was initiated by the Commission in response to the Assigned Commissioner's Scoping Memo and Ruling, which was dated February 4, 2025.

A joint stipulation was submitted by the parties to the proceeding, including AT&T California, the Public Advocates Office, and other participating parties, after convening and participating in five monthly meet-and-confer sessions. The stipulations address various aspects of the COLR rules, including the designation of COLR as a regulatory designation with specified service obligations, the notice requirements for COLR withdrawal, and the prohibition against redlining.

Key Takeaways:

  • The California Public Utilities Commission has initiated a rulemaking proceeding to consider changes to the COLR rules.
  • A joint stipulation was submitted by the parties to the proceeding, including AT&T California and the Public Advocates Office, after participating in five monthly meet-and-confer sessions.
  • The stipulations emphasize that COLR is a regulatory designation with specified service obligations, rather than a service.
  • The notice requirements for COLR withdrawal were specified, with parties agreeing that customers in the COLR territory should be notified of the request to withdraw when the COLR first notifies the Commission of its intent to withdraw and when the withdrawal is effective.
  • Revisions to the Commission's COLR regulations should not alter the Commission's prohibition against redlining or its ability to enforce that prohibition.
  • The stipulations were submitted without prejudice to any arguments that may be made by any stipulating party about the meaning and implications of these stipulations.

Statistics:

  • Fifteen parties participated in the meet-and-confer sessions, including AT&T California, the Public Advocates Office, and other industry stakeholders.
  • The stipulations were submitted on August 5, 2025, following five monthly meet-and-confer sessions.
  • Eight participating parties abstained from entering into a stipulation regarding the notice requirements for COLR withdrawal.

Sources:

  • R.24-06-012 (Filed June 20, 2024) - Order Instituting Rulemaking Proceeding to Consider Changes to the Commission's Carrier of Last Resort Rules
  • Assigned Commissioner's Scoping Memo and Ruling, February 4, 2025
  • The joint stipulation submitted by the parties to the proceeding (Exhibit A)