§  36.605   Calculation of safety net additive.

   (a) "Safety net additive support." A rural incumbent local exchange
   carrier shall receive safety net additive support if it satisfies the
   conditions set forth in paragraph (c) of this section. Safety net
   additive support is support available to rural telephone companies, as
   conditioned in paragraph (c) of this section, in addition to support
   calculated pursuant to § 36.631. Safety net additive support shall not
   be available to rural telephone companies for exchange(s) that are
   subject to § 54.305 of this chapter.

   (b) Calculation of safety net additive support: Safety net additive
   support is equal to the amount of capped support calculated pursuant to
   this subpart F in the qualifying year minus the amount of support in
   the year prior to qualifying for support subtracted from the difference
   between the uncapped expense adjustment for the study area in the
   qualifying year minus the uncapped expense adjustment in the year prior
   to qualifying for support as shown in the following equation: Safety
   net additive support = (Uncapped support in the qualifying year
   -Uncapped support in the base year) -(Capped support in the qualifying
   year -Amount of support received in the base year).

   (c) Operation of safety net additive support: (1) In any year in which
   the total carrier loop cost expense adjustment is limited by the
   provisions of § 36.603 a rural incumbent local exchange carrier shall
   receive safety net additive support as calculated in paragraph (b) of
   this section, if in any study area, the rural incumbent local exchange
   carrier realizes growth in end of period Telecommunications Plant in
   Service (TPIS), as prescribed in § 32.2001 of this chapter, on a per
   loop basis, of at least 14 percent more than the study area's TPIS per
   loop investment at the end of the prior period.

   (2) If paragraph (c)(1) of this section is met, the rural incumbent
   local exchange carrier must notify the Administrator; failure to
   properly notify the Administrator of eligibility shall result in
   disqualification of that study area for safety net additive, requiring
   the rural incumbent local exchange carrier to again meet the
   eligibility requirements in paragraph (c)(1) of this section for that
   study area in a subsequent period.

   (3) Upon completion of verification by the Administrator that the study
   area meets the stated criterion in paragraphs (a), (b), (c) of this
   section, the Administrator shall:

   (i) Pay to any qualifying rural telephone company, safety net additive
   support for the qualifying study area in accordance with the
   calculation set forth in paragraph (b) of this section; and

   (ii) Continue to pay safety net additive support in any of the four
   succeeding years in which the total carrier loop expense adjustment is
   limited by the provisions of § 36.603. Safety net additive support in
   the succeeding four years shall be the lesser of:

   (A) The sum of capped support and the safety net additive support
   received in the qualifying year; or

   (B) The rural telephone company's uncapped support.

   [ 66 FR 30086 , June 5, 2001, as amended at  66 FR 65856 , Dec. 21, 2001]

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