Navigating the CPCN Process in California

If you're a company planning to offer voice service over your own facilities in California, obtaining a Certificate of Public Convenience and Necessity (CPCN) from the California Public Utilities Commission (CPUC) is a critical first step. This certificate is not just an administrative formality—it's a legal requirement needed to construct necessary facilities and provide specific services in the state.

What Is a CPCN and Why Is It Required?

A CPCN is a license authorizing a company to provide intrastate telecommunications services within California, including Voice over Internet Protocol (VoIP) services,[1] and granting a company access to the state's public rights of way (including utility poles and conduit). Through this licensing regime, the CPUC confirms that new providers of facilities-based voice service:

• Have the financial resources to sustain operations
• Possess the technical expertise to deliver reliable service
• Meet the CPUC's tariffing requirements, to the extent applicable
• Comply with the California Environmental Quality Act
• Comply with unique CPUC requirements regarding safety and environmental and social justice

Operating without a CPCN can result in fines, enforcement action, reputational harm, and challenges in future engagements with the CPUC. For new entrants, securing this certificate is essential for conducting business in California and one of your first steps to maintaining good state-level regulatory hygiene.

Step-by-Step Guide to Obtaining a CPCN

Step 1: Confirm Your Service Classification

The first and often most consequential question is whether your service requires a CPCN.

Most intrastate voice services, including VoIP, mobile technologies, and data transport services fall under CPUC jurisdiction. The CPUC offers several types of licenses and registrations, but a key distinction is whether a provider is operating as a reseller or offering a particular service over its own facilities. If you are facilities-based provider of VoIP, mobile, or data transport services operating in California, you must have a CPCN.

Step 2: Prepare a Comprehensive and Strategic Application

At a high level, the CPUC considers whether applicants for a new CPCN are technically, managerially, and financially fit to provide service in California. Therefore, a CPCN application must do more than supply information; it must clearly demonstrate that the applicant meets the Commission's standards and understands its regulatory obligations.

Your application should include:

• Incorporation documents and certificate of good standing: Provide corporate organization documents and a certificate of good standing to do business in California.
• Business description: Outline the services you plan to offer and your operational footprint.
• Financial documentation: Provide evidence of financial viability, such as balance sheets or bank statements.
• Technical qualifications: Demonstrate your ability to deliver reliable service.
• Facilities construction or extension details: Provide information regarding construction activities.
• D.13-05-035 verification: Verify that 10% or more owners of applicant and applicant's officers are in good corporate standing, which requires disclosures regarding prior enforcement actions, license suspensions or revocations, and more.

The D.13-05-035 verification is often the thorniest aspect of the application and the most frequently scrutinized by CPUC staff. Incomplete or inconsistent disclosures are a leading cause of supplemental data requests and extended review timelines.

Step 3: Respond to CPUC Review and Public Comment

Once your CPCN application is submitted, the CPUC initiates a formal review process that involves several steps:

• Assignment to an Administrative Law Judge (ALJ) and Commissioner: The ALJ manages the proceeding and, in coordination with the assigned Commissioner's office, ultimately issues a proposed decision that will be voted upon by the five CPUC Commissioners.
• Public notice and comment period: The CPUC will issue a notice of your application, allowing interested parties to submit responses or protests.
• Prehearing conference: The ALJ schedules a prehearing conference to clarify the scope of the proceeding, set timelines, address procedural issues, and, occasionally, delve into statements made in the Application.
• Record building and discovery: The CPUC may issue formal requests for supplemental documentation and information, such as:
• Financial statements or proof of funding
• Technical details about your network, construction activity, or service delivery
• Information regarding the background of key management figures
• Resolution of issues: If comments or protests are filed, you will need to respond formally and likely participate in additional conferences or negotiations before the ALJ issues a proposed decision. Protested applications could also be subject to hearings if there are material issues of disputed fact.

How Long Does the CPCN Process Take?

The CPCN process takes time. Here's what to expect:

• Assignment of ALJ and Commissioner: One to three weeks after filing of application
• Prehearing conference: 45-60 days after filing of application
• Scoping ruling: Timing of the issuance of a ruling determining the scope, schedule, and need for hearing in the proceeding is highly variable
• Data requests and responses: Can add several weeks or months depending on complexity
• Final decision (voted on by the full Commission): Typically nine to 12 months from filing, but may take longer if protests are filed or complex issues arise

Delays often occur when applications lack sufficient detail or when responses to CPUC inquiries are incomplete or untimely. Drafting a thorough application at the outset is key.

Why Working with Experienced CPUC Counsel Matters

Drafting a CPCN application is not just about filling out forms—it requires strategic positioning and regulatory expertise. Experienced CPUC counsel can:

• Determine in the first instance whether a CPCN is needed for the particular service offering
• Ensure your application meets all technical and financial requirements
• Anticipate potential objections and address them proactively
• Navigate important procedural steps like prehearing conferences and responding to data requests efficiently
• Help maintain the confidentiality of sensitive information
• Reduce approval timelines by avoiding common pitfalls

In short, working with counsel can save time, reduce risk, and improve your chances of a smooth approval process.

Davis Wright Tremaine Can Help

At Davis Wright Tremaine, we have deep experience guiding telecommunications providers through CPUC requirements. From preparing your CPCN application to advising on compliance strategies once your application is granted, our team is here to make the process seamless.

Let us help you navigate California's regulatory landscape with confidence.

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Thaila Sundaresan is a partner and David Huang is counsel in the communications group in the San Francisco and Los Angeles offices of DWT. For any questions or more information, please reach out to the authors or another member of our communications team and sign up for our alerts.

[1] In late 2024, the CPUC determined that interconnected VoIP service providers are regulated "telephone corporations" subject to regulations promulgated by the CPUC, including its licensing rules. For this reason, providers of intrastate VoIP services in California that may not otherwise hold a CPCN in any other state may need such an authorization before providing VoIP services in California. Additional DWT insights regarding this requirement may be found in our April 2025 blog post.