Goto Section: 61.38 | 61.40 | Table of Contents

FCC 61.39
Revised as of October 1, 2007
Goto Year:2006 | 2008
Sec.  61.39   Optional supporting information to be submitted with letters of
transmittal for Access Tariff filings effective on or after April 1, 1989, by
local exchange carriers serving 50,000 or fewer access lines in a given study
area that are described as subset 3 carriers in  Sec. 69.602.

   (a) Scope. This section provides for an optional method of filing for any
   local exchange carrier that is described as subset 3 carrier in  Sec. 69.602,
   which elects to issue its own Access Tariff for a period commencing on or
   after April 1, 1989, and which serves 50,000 or fewer access lines in a
   study area as determined under  Sec. 36.611(a)(8) of this chapter. However, the
   Commission may require any carrier to submit such information as may be
   necessary  for review of a tariff filing. This section (other than the
   preceding sentence of this paragraph) shall not apply to tariff filings of
   local exchange carriers subject to price cap regulation.

   (b) Explanation and data supporting tariff changes. The material to be
   submitted to either a tariff change or a new tariff which affects rates or
   charges must include an explanation of the filing in the transmittal as
   required by  Sec. 61.33. The basis for ratemaking must comply with the following
   requirements. Except as provided in paragraph (b)(5) of this section, it is
   not necessary to submit this supporting data at the time of filing. However,
   the local exchange carrier should be prepared to submit the data promptly
   upon reasonable request by the Commission or interested parties.

   (1) For a tariff change, the local exchange carrier that is a cost schedule
   carrier must propose Tariff Sensitive rates based on the following:

   (i) For the first period, a cost of service study for Traffic Sensitive
   elements for the most recent 12 month period with related demand for the
   same period.

   (ii) For subsequent filings, a cost of service study for Traffic Sensitive
   elements for the total period since the local exchange carrier's last annual
   filing, with related demand for the same period.

   (2) For a tariff change, the local exchange company that is an average
   schedule  carrier  must  propose  Traffic Sensitive rates based on the
   following:

   (i) For the first period, the local exchange carrier's most recent annual
   Traffic Sensitive settlement from the National Exchange Carrier Association
   pool.

   (ii) For subsequent filings, an amount calculated to reflect the Traffic
   Sensitive average schedule pool settlement the carrier would have received
   if the carrier had continued to participate, based upon the most recent
   average schedule formulas approved by the Commission.

   (3) For a tariff change, the local exchange carrier that is a cost schedule
   carrier must propose Common Line rates based on the following:

   (i) For the first biennial filing, the common line revenue requirement shall
   be  determined by a cost of service study for the most recent 12-month
   period. Subscriber line charges shall be based on cost and demand data for
   the  same period. Carrier common line rates shall be determined by the
   following formula:
   [er06jn97.008.gif]

   where:
   [er06jn97.009.gif]

   And where:

   CCL Rev Req = carrier common line revenue requirement for the most recent
   12-month period;

   CCL MOU b= carrier common line minutes of use for the most recent 12-month
   period;

   CCL MOU 1= CCL MOU [b]; and

   CCL  MOU 0= carrier common line minutes of use for the 12-month period
   preceding the most recent 12-month period.

   (ii) For subsequent biennial filings, the common line revenue requirement
   shall be determined by a cost of service study for the most recent 24-month
   period. Subscriber line charges shall be based on cost and demand data for
   the  same period. Carrier common line rates shall be determined by the
   following formula:
   [er06jn97.010.gif]

   Where:
   [er06jn97.011.gif]

   And where:

   CCL Rev Req = carrier common line revenue requirement for the most recent
   24-month period;

   CCL MOU [b]= carrier common line minutes of use for the most recent 24-month
   period;

   CCL MOU [1]= carrier common line minutes of use for the 12-month period; and

   CCL MOU [0]= carrier common line minutes of use for the 12-month period
   preceding the most recent 12-month period.

   (4) For a tariff change, the local exchange carrier which is an average
   schedule carrier must propose common line rates based on the following:

   (i) For the first biennial filings, the common line revenue requirement
   shall be determined by the local exchange carrier's most recent annual
   Common Line settlement from the National Exchange Carrier Association.
   Subscriber line charges shall be based on cost and demand data for the same
   period. Carrier common line rates shall be determined by the following
   formula:
   [er06jn97.012.gif]

   Where:
   [er06jn97.013.gif]

   And where:

   CCL Rev Req = carrier common line settlement for the most recent 12-month
   period;

   CCL MOU b= carrier common line minutes of use for the most recent 12-month
   period;

   CCL MOU 1= CCL MOU [b]; and

   CCL  MOU 0= carrier common line minutes of use for the 12-month period
   preceding the most recent 12-month period.

   (ii) For subsequent biennial filings, the common line revenue requirement
   shall  be  an  amount  calculated to reflect the average schedule pool
   settlements the carrier would have received if the carrier had continued to
   participate in the carrier common line pool, based upon the average schedule
   Common Line formulas developed by the National Exchange Carrier Association
   for the most recent 24-month period. Subscriber line charges shall be based
   on cost and demand data for the same period. Carrier common line rates shall
   be determined by the following formula:
   [er06jn97.014.gif]

   Where:
   [er06jn97.015.gif]

   And where:

   CCL Rev Req = carrier common line settlement for the most recent 24-month
   period;

   CCL MOU b= carrier common line minutes of use for the most recent 24-month
   period;

   CCL MOU 1= carrier common line minutes of use for the most recent 12-month
   period; and

   CCL  MOU 0= carrier common line minutes of use for the 12-month period
   preceding the most recent 12-month period.

   (5) For End User Common Line charges included in a tariff pursuant to this
   Section, the local exchange carrier must provide supporting information for
   the two-year historical period with its letter of transmittal in accordance
   with  Sec. 61.38.

   (c) Maximum allowable rate of return. Local exchange carriers filing tariffs
   under this section are not required to comply with  Sec.  Sec. 65.700 through 65.701,
   inclusive, of the Commission's Rules, except with respect to periods during
   which tariffs were not subject to this section. The Commission may require
   any carrier to submit such information if it deems it necessary to monitor
   the carrier's earnings. However, rates must be calculated based on the local
   exchange carrier's prescribed rate of return applicable to the period during
   which the rates are effective.

   (d) Rates for a new service that is the same as that offered by a price cap
   regulated local exchange carrier providing service in an adjacent serving
   area  are  deemed  presumptively lawful, if the proposed rates, in the
   aggregate, are no greater than the rates established by the price cap local
   exchange  carrier. Tariff filings made pursuant to this paragraph must
   include the following:

   (1) A brief explanation of why the service is like an existing service
   offered by a geographically adjacent price cap regulated local exchange
   carrier; and

   (2) Data to establish compliance with this subsection that, in aggregate,
   the proposed rates for the new service are no greater than those in effect
   for the same or comparable service offered by that same geographically
   adjacent price cap regulated local exchange carrier. Compliance may be shown
   through submission of applicable tariff pages of the adjacent carrier; a
   showing that the serving areas are adjacent; any necessary explanations and
   work sheets.

   (e) Average schedule companies filing pursuant to this section shall retain
   their status as average schedule companies.

   (f)  On  each page of cost support material submitted pursuant to this
   section, the carrier shall indicate the transmittal number under which that
   page was submitted.

   [ 52 FR 26682 , July 16, 1987, as amended at  53 FR 36289 , Sept. 19, 1988;  55 FR 42382 , Oct. 19, 1990;  58 FR 36147 , July 6, 1993;  62 FR 31004 , June 6,
   1997;  64 FR 46588 , Aug. 26, 1999]


Goto Section: 61.38 | 61.40

Goto Year: 2006 | 2008
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