Reynolds

I. BACKGROUND

9 A. Parties and Challenge 10 Sierra Telephone is a small, rural telephone company regulated by the California Public 11 Utilities Commission operating in California’s Mariposa County and Madera County and 12 providing voice service and network access services. (Doc. 1 ¶ 6, Doc. 6-2 ¶ 4.) Sierra Internet is 13 an unregulated Internet service provider (“ISP”) and affiliate of Sierra Telephone. (Doc. 1 ¶ 7, 14 Doc. 6-2. ¶ 4.) Sierra Internet provides broadband Internet service to customers in Sierra 15 Telephone’s service territory by purchasing access to Sierra Telephone’s infrastructure network. 16 (Id.) Both Sierra Telephone and Sierra Internet are wholly owned by Sierra Tel Communications 17 Group. (Doc. 6-2 ¶ 4.) Defendants are the five Commissioners of the California Public Utilities 18 Commission (“CPUC”). (Doc. 1 ¶ 8.) The CPUC runs a subsidy program called the California 19 High-Cost Fund-A Administrative Committee Fund subsidy program (“A-Fund”) and also determines the rate design of telephone companies like Sierra Telephone. (Doc. 1 ¶ 8.) Sierra 21 Telephone is a participant in the A-Fund subsidy program.

2 CPUC “fashions a rate…