Transfers of Ownership or Control

I. No New Entities

When a certificated nondominant carrier transfers its CPCN to its existing parent, subsidiary, or affiliate, the carrier should send the Communications Division a letter stating so. The tariff should be updated as if this was only a company name change.

II. New Entities to Become Associated with the CPCN Holder


A. When a certificated nondominant carrier transfers its CPCN to a newly created subsidiary, the carrier should send the Communications Division a letter stating so. The tariff should be updated as if this was only a company name change.
B. When a certificated nondominant carrier has a new parent or holding company or transfers its CPCN to a new affiliate, then that new entity must obtain authority of the Commission to acquire the CPCN (PU Code Sect. 854). This may be done either of two ways:
1. The new entity may file an application. This is typically done by a Transfer Application. It qualifies the new entity as a public utility and transfers the CPCN to that new entity.
2. The new entity may use the following two-step process in this sequence:
a. File an application or registration form as a public utility
b. File an advice letter to transfer the ownership of the CPCN from the first company to itself.

III. Transfer of Ownership to an Independent Entity


A. When a certificated nondominant carrier transfers its CPCN to another already certificated company of the same class (i.e., IEC or CLC), the buyer should file an advice letter stating so (D.94-05-051). The advice letter must include a financial statement indicating the buyer's ability to continue the operations of its own company and of the acquired company (if applicable).
1. It would be useful for Telecom records if the acquired company sent an informational advice letter indicating that it has been acquired but plans to continue operating.
2. If the acquired company will be closed down, it should submit one of the following:
a. a letter requesting revocation of the CPCN and explaining when and how notice was given to current customers.
b. an advice letter requesting revocation of the CPCN and explaining when and how notice was given to current customers.
B. When a certificated nondominant carrier transfers its CPCN to a non-certificated entity, then the latter entity must become certificated. This may be done either of two ways:
1. The new entity may file a transfer application. This qualifies the new entity as public utility and transfers the CPCN to that new entity.
2. The new entity may use the following two-step process in this sequence:
a. File an application or registration form as a public utility
b. File an advice letter to transfer the ownership of the CPCN from the first company to itself. In all circumstances where the customers will receive bills with a carrier's name different from the one to which they have presubscribed, customers must receive 30-day written notice of their transfer (D.97-06-096).