Sec.  51.513   Proxies for forward-looking economic cost.

   (a) A state commission may determine that the cost information available to
   it with respect to one or more elements does not support the adoption of a
   rate  or  rates that are consistent with the requirements set forth in
    Sec.  Sec. 51.505 and 51.511. In that event, the state commission may establish a
   rate for an element that is consistent with the proxies specified in this
   section, provided that:

   (1) Any rate established through use of such proxies shall be superseded
   once the state commission has completed review of a cost study that complies
   with the forward-looking economic cost based pricing methodology described
   in  Sec.  Sec. 51.505 and 51.511, and has concluded that such study is a reasonable
   basis for establishing element rates; and

   (2) The state commission sets forth in writing a reasonable basis for its
   selection of a particular rate for the element.

   (b) The constraints on proxy-based rates described in this section apply on
   a  geographically  averaged basis. For purposes of determining whether
   geographically deaveraged rates for elements comply with the provisions of
   this section, a geographically averaged proxy-based rate shall be computed
   based on the weighted average of the actual, geographically deaveraged rates
   that apply in separate geographic areas in a state.

   (c) Proxies for specific elements —(1) Local loops. For each state listed
   below,  the  proxy-based  monthly rate for unbundled local loops, on a
   statewide weighted average basis, shall be no greater than the figures
   listed in the table below. (The Commission has not established a default
   proxy ceiling for loop rates in Alaska.)

   Table
          State         Proxy ceiling
   Alabama                     $17.25
   Arizona                      12.85
   Arkansas                     21.18
   California                   11.10
   Colorado                     14.97
   Connecticut                  13.23
   Delaware                     13.24
   District of Columbia         10.81
   Florida                      13.68
   Georgia                      16.09
   Hawaii                       15.27
   Idaho                        20.16
   Illinois                     13.12
   Indiana                      13.29
   Iowa                         15.94
   Kansas                       19.85
   Kentucky                     16.70
   Louisiana                    16.98
   Maine                        18.69
   Maryland                     13.36
   Massachusetts                 9.83
   Michigan                     15.27
   Minnesota                    14.81
   Mississippi                  21.97
   Missouri                     18.32
   Montana                      25.18
   Nebraska                     18.05
   Nevada                       18.95
   New Hampshire                16.00
   New Jersey                   12.47
   New Mexico                   18.66
   New York                     11.75
   North Carolina               16.71
   North Dakota                 25.36
   Ohio                         15.73
   Oklahoma                     17.63
   Oregon                       15.44
   Pennsylvania                 12.30
   Puerto Rico                  12.47
   Rhode Island                 11.48
   South Carolina               17.07
   South Dakota                 25.33
   Tennessee                    17.41
   Texas                        15.49
   Utah                         15.12
   Vermont                      20.13
   Virginia                     14.13
   Washington                   13.37
   West Virginia                19.25
   Wisconsin                    15.94
   Wyoming                      25.11

   (2)  Local  switching  .  (i)  The  blended  proxy-based  rate for the
   usage-sensitive  component  of  the unbundled local switching element,
   including the switching matrix, the functionalities used to provide vertical
   features, and the trunk ports, shall be no greater than 0.4 cents ($0.004)
   per minute, and no less than 0.2 cents ($0.002) per minute, except that,
   where a state commission has, before August 8, 1996, established a rate less
   than or equal to 0.5 cents ($0.005) per minute, that rate may be retained
   pending completion of a forward-looking economic cost study. If a flat-rated
   charge is established for these components, it shall be converted to a
   per-minute  rate  by dividing the projected average minutes of use per
   flat-rated subelement, for purposes of assessing compliance with this proxy.
   A weighted average of such flat-rate or usage-sensitive charges shall be
   used in appropriate circumstances, such as when peak and off-peak charges
   are used.

   (ii) The blended proxy-based rate for the line port component of the local
   switching element shall be no less than $1.10, and no more than $2.00, per
   line port per month for ports used in the delivery of basic residential and
   business exchange services.

   (3)  Dedicated transmission links. The proxy-based rates for dedicated
   transmission links shall be no greater than the incumbent LEC's tariffed
   interstate charges for comparable entrance facilities or direct-trunked
   transport offerings, as described in  Sec.  Sec. 69.110 and 69.112 of this chapter.

   (4) Shared transmission facilities between tandem switches and end offices.
   The proxy-based rates for shared transmission facilities between tandem
   switches and end offices shall be no greater than the weighted per-minute
   equivalent of DS1 and DS3 interoffice dedicated transmission link rates that
   reflects the relative number of DS1 and DS3 circuits used in the tandem to
   end office links (or a surrogate based on the proportion of copper and fiber
   facilities in the interoffice network), calculated using a loading factor of
   9,000 minutes per month per voice-grade circuit, as described in  Sec. 69.112 of
   this chapter.

   (5) Tandem switching. The proxy-based rate for tandem switching shall be no
   greater than 0.15 cents ($0.0015) per minute of use.

   (6) Collocation. To the extent that the incumbent LEC offers a comparable
   form of collocation in its interstate expanded interconnection tariffs, as
   described in  Sec.  Sec. 64.1401 and 69.121 of this chapter, the proxy-based rates for
   collocation shall be no greater than the effective rates for equivalent
   services in the interstate expanded interconnection tariff. To the extent
   that the incumbent LEC does not offer a comparable form of collocation in
   its interstate expanded interconnection tariffs, a state commission may, in
   its  discretion, establish a proxy-based rate, provided that the state
   commission sets forth in writing a reasonable basis for concluding that its
   rate would approximate the result of a forward-looking economic cost study,
   as described in  Sec. 51.505.

   (7) Signaling, call-related database, and other elements. To the extent that
   the incumbent LEC has established rates for offerings comparable to other
   elements in its interstate access tariffs, and has provided cost support for
   those rates pursuant to  Sec. 61.49(h) of this chapter, the proxy-based rates for
   those elements shall be no greater than the effective rates for equivalent
   services in the interstate access tariffs. In other cases, the proxy-based
   rate shall be no greater than a rate based on direct costs plus a reasonable
   allocation of overhead loadings, pursuant to  Sec. 61.49(h) of this chapter.

   [ 61 FR 45619 , Aug. 29, 1996, as amended at  61 FR 52709 , Oct. 8, 1996]