Goto Section: 51.913 | 51.917 | Table of Contents
FCC 51.915
Revised as of December 4, 2012
Goto Year:2011 |
2013
§ 51.915 Recovery mechanism for price cap carriers.
(a) Scope. This section sets forth the extent to which Price Cap
Carriers may recover certain revenues, through the recovery mechanism
outlined below, to implement reforms adopted in FCC 11-161 and as
required by § 20.11(b) of this chapter, and § § 51.705 and 51.907.
(b) Definitions. As used in this section and § 51.917, the following
terms mean:
(1) CALLS Study Area. A CALLS Study Area means a Price Cap Carrier
study area that participated in the CALLS plan at its inception. See
Access Charge Reform, Price Cap Performance Review for Local Exchange
Carriers, Low-Volume Long-Distance Users, Federal-State Joint Board on
Universal Service, Sixth Report and Order in CC Docket Nos. 96-262 and
94-1, Report and Order in CC Docket No. 99-249, Eleventh Report and
Order in CC Docket No. 96-45, 15 FCC Rcd 12962 (2000).
(2) CALLS Study Area Base Factor. The CALLS Study Area Base Factor is
equal to ninety (90) percent.
(3) CMRS Net Reciprocal Compensation Revenues. CMRS Net Reciprocal
Compensation Revenues means the reduction in net reciprocal
compensation revenues required by § 20.11 of this chapter associated
with CMRS traffic as described in § 51.701(b)(2), which is equal to its
Fiscal Year 2011 net reciprocal compensation revenues from CMRS
carriers.
(4) Expected Revenues for Access Recovery Charges. Expected Revenues
for Access Recovery Charges are calculated using the tariffed Access
Recovery Charge rate for each class of service and the forecast demand
for each class of service.
(5) Initial Composite Terminating End Office Access Rate. Initial
Composite Terminating End Office Access Rate means Fiscal Year 2011
terminating interstate End Office Access Service revenue divided by
Fiscal Year 2011 terminating interstate end office switching minutes.
(6) Lifeline Customer. A Lifeline Customer is a residential lifeline
subscriber as defined by § 54.400(a) of this chapter that does not pay
a Residential and/or Single-Line Business End User Common Line Charge.
(7) Net Reciprocal Compensation. Net Reciprocal Compensation means the
difference between a carrier's reciprocal compensation revenues from
non-access traffic less its reciprocal compensation payments for
non-access traffic during a stated period of time. For purposes of the
calculations made under § § 51.915 and 51.917, the term does not include
reciprocal compensation revenues for non-access traffic exchanged
between Local Exchange Carriers and CMRS providers; recovery for such
traffic is addressed separately in these sections.
(8) Non-CALLS Study Area. Non-CALLS Study Area means a Price Cap
Carrier study area that did not participate in the CALLS plan at its
inception.
(9) Non-CALLS Study Area Base Factor. The Non-CALLS Study Area Base
Factor is equal to one hundred (100) percent for five (5) years
beginning July 1, 2012. Beginning July 1, 2017, the Non-CALLS Price Cap
Carrier Base Factor will be equal to ninety (90) percent.
(10) Price Cap Carrier Traffic Demand Factor. The Price Cap Carrier
Traffic Demand Factor, as used in calculating eligible recovery, is
equal to ninety (90) percent for the one-year period beginning July 1,
2012. It is reduced by ten (10) percent of its previous value in each
subsequent annual tariff filing.
(11) Rate Ceiling Component Charges. The Rate Ceiling Component Charges
consists of the federal end user common line charge and the Access
Recovery Charge; the flat rate for residential local service (sometimes
know as the “1FR” or “R1” rate), mandatory extended area service
charges, and state subscriber line charges; per-line state high cost
and/or state access replacement universal service contributions, state
E911 charges, and state TRS charges.
(12) Residential Rate Ceiling. The Residential Rate Ceiling, which
consists of the total of the Rate Ceiling Component Charges, is set at
$30 per month. The Residential Rate Ceiling will be the higher of the
rate in effect on January 1, 2012, or the rate in effect on January 1
in any subsequent year.
(13) True-up Revenues for Access Recovery Charge. True-up revenues for
Access Recovery Charge are equal to Expected Access Recovery Charge
Revenues minus ((projected demand minus actual realized demand for
Access Recovery Charges) times the tariffed Access Recovery Charge).
This calculation shall be made separately for each class of service and
shall be adjusted to reflect any changes in tariffed rates for the
Access Recovery Charge. Realized demand is the demand for which payment
has been received, or has been made, as appropriate, by the time the
true-up is made.
(c) 2011 Price Cap Carrier Base Period Revenue. 2011 Price Cap Carrier
Base Period Revenue is equal to the sum of the following three
components:
(1) Terminating interstate end office switched access revenues and
interstate Tandem-Switched Transport Access Service revenues for Fiscal
Year 2011 received by March 31, 2012;
(2) Fiscal Year 2011 revenues from Transitional Intrastate Access
Service received by March 31, 2012; and
(3) Fiscal Year 2011 reciprocal compensation revenues received by March
31, 2012, less fiscal year 2011 reciprocal compensation payments made
by March 31, 2012.
(d) Eligible recovery for Price Cap Carriers.
(1) Notwithstanding any other provision of the Commission's rules, a
Price Cap Carrier may recover the amounts specified in this paragraph
through the mechanisms described in paragraphs (e) and (f) of this
section.
(i) Beginning July 1, 2012, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
following three components:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) multiplied by
the Price Cap Carrier Traffic Demand Factor;
(B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor; and
(C) A Price Cap Carrier's reductions in Fiscal Year 2011 net reciprocal
compensation revenues resulting from rate reductions required by
§ 51.705, other than those associated with CMRS traffic as described in
§ 51.701(b)(2), which may be calculated in one of the following ways:
(1) Calculate the reduction in Fiscal Year 2011 net reciprocal
compensation revenue as a result of rate reductions required by
§ 51.705 using Fiscal Year 2011 reciprocal compensation demand, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2012 multiply by the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(ii) Beginning July 1, 2013, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
following three components:
(A) The cumulative amount of the reduction in Transitional Intrastate
Access Service revenues determined pursuant to § 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and
(B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor; and
(C) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by § 51.705 using Fiscal Year 2011 reciprocal compensation demand and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2013, using the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(iii) Beginning July 1, 2014, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
amounts in paragraphs (d)(1)(iii)(A) through (d)(1)(iii)(E), of this
section, and then adding the amount in paragraph (d)(1)(iii)(F) of this
section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and
(B) The reduction in interstate switched access revenues equal to the
difference between the Initial Composite Terminating End Office Access
Rate and the 2014 Target Composite Terminating End Office Access Rate
determined pursuant to § 51.907(d) using 2011 terminating interstate
end office switching minutes, and then multiply by the Price Cap
Carrier Traffic Demand Factor;
(C) If the 2014 Intrastate Composite Terminating End Office Access Rate
is higher than the 2014 Target Composite Terminating End Office Access
Rate, the reduction in revenues equal to the difference between the
intrastate 2014 Composite Terminating End Office Access Rate and the
intrastate 2014 Target Composite Terminating End Office Access Rate
determined pursuant to § 51.907(d) using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor; and
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by § 51.705 using Fiscal Year 2011 reciprocal compensation demand, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2014, using the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(F) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2012.
(iv) Beginning July 1, 2015, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
amounts in paragraphs (d)(1)(iv)(A) through (d)(1)(iv)(E) of this
section and then adding the amount in paragraph (d)(1)(iv)(F) of this
section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor;
(B) The reduction in interstate switched access revenues equal to the
difference between the Initial Composite Terminating End Office Access
Rate and the 2015 Target Composite Terminating End Office Access Rate
determined pursuant to § 51.907(e) using Fiscal Year 2011 terminating
interstate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(C) If the 2014 Intrastate Composite Terminating End Office Access Rate
is higher than the 2015 Target Composite Terminating End Office Access
Rate, the reduction in intrastate switched access revenues equal to the
difference between the intrastate 2014 Composite Terminating End Office
Access Rate and the 2015 Target Composite Terminating End Office Access
Rate determined pursuant to § 51.907(e) using Fiscal Year 2011
terminating intrastate end office switching minutes, and then multiply
by the Price Cap Carrier Traffic Demand Factor; and
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor;
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by § 51.705 using Fiscal Year 2011 reciprocal compensation demand, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2015, using the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(F) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2013.
(v) Beginning July 1, 2016, a Price Cap Carrier's eligible recovery
will be equal to the CALLS Study Area Base Factor and/or the Non-CALLS
Study Area Base Factor, as applicable, multiplied by the sum of the
amounts in paragraphs (d)(1)(v)(A) through (d)(1)(v)(E), of this
section and then adding the amount in paragraph (d)(1)(v)(F) of this
section to that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor;
(B) The reduction in interstate switched access revenues equal to the
difference between the Initial Composite Terminating End Office Access
Rate and $0.0007 determined pursuant to § 51.907(f) using Fiscal Year
2011 terminating interstate end office switching minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(C) If the 2014 Intrastate Composite Terminating End Office Access Rate
is higher than $0.0007, the reduction in revenues equal to the
difference between the intrastate 2014 Composite Terminating End Office
Access Rate and $0.0007 determined pursuant to § 51.907(f) using Fiscal
Year 2011 terminating intrastate end office minutes, and then multiply
by the Price Cap Carrier Traffic Demand Factor;
(D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor;
(E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by § 51.705 using Fiscal Year 2011 reciprocal compensation demand, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2016, using the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(F) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2014.
(vi) Beginning July 1, 2017, a Price Cap Carrier's eligible recovery
will be equal to ninety (90) percent of the sum of the amounts in
paragraphs (d)(1)(vi) through (d)(1)(vi)(F) of this section, and then
adding the amount in paragraph (d)(1)(vi)(G) f this section to that
amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and
(B) The reduction in interstate switched access revenues equal to the
Initial Composite terminating End Office Access Rate using Fiscal Year
2011 terminating interstate end office switching minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(C) The reduction in revenues equal to the intrastate 2014 Composite
terminating End Office Access Rate using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(D) The reduction in revenues resulting from reducing the terminating
Tandem-Switched Transport Access Service rate to $0.0007 pursuant to
§ 51.907(g)(2) using Fiscal Year 2011 terminating tandem-switched
minutes, and then multiply by the Price Cap Carrier Traffic Demand
Factor;
(E) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor; and
(F) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by § 51.705 using Fiscal Year 2011 reciprocal compensation demand, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2017, using the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(G) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2015.
(vii) Beginning July 1, 2018, a Price Cap Carrier's eligible recovery
will be equal to ninety (90) percent of the sum of the amounts in
paragraphs (d)(1)(vii)(A) though (d)(1)(vii)(G) of this section, and
then adding the amount in paragraph (d)(1)(vii)(H) of this section to
that amount:
(A) The amount of the reduction in Transitional Intrastate Access
Service revenues determined pursuant to § 51.907(b)(2) and (c)
multiplied by the Price Cap Carrier Traffic Demand Factor; and:
(B) The reduction in interstate switched access revenues equal to the
Initial Composite terminating End Office Access Rate using Fiscal Year
2011 terminating interstate end office switching minutes, and then
multiply by the Price Cap Carrier Traffic Demand Factor;
(C) The reduction in revenues equal to the intrastate 2014 Composite
terminating End Office Access Rate using Fiscal Year 2011 terminating
intrastate end office switching minutes, and then multiply by the Price
Cap Carrier Traffic Demand Factor;
(D) The reduction in revenues resulting from reducing the terminating
Tandem-Switched Transport Access Service rate to $0.0007 pursuant to
§ 51.907(g)(2) using Fiscal Year 2011 terminating tandem-switched
minutes, and then multiply by the Price Cap Carrier Traffic Demand
Factor;
(E) The reduction in revenues resulting from moving from a terminating
Tandem-Switched Transport Access Service rate tariffed at a maximum of
$0.0007 to removal of intercarrier charges pursuant to § 51.907(h), if
applicable, using Fiscal Year 2011 terminating tandem-switched minutes,
and then multiply by the Price Cap Carrier Traffic Demand Factor;
(F) CMRS Net Reciprocal Compensation Revenues multiplied by the Price
Cap Carrier Traffic Demand Factor; and
(G) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
reciprocal compensation revenues other than those associated with CMRS
traffic as described in § 51.701(b)(2) resulting from rate reductions
required by § 51.705 may be calculated in one of the following ways:
(1) Calculate the cumulative reduction in Fiscal Year 2011 net
reciprocal compensation revenue as a result of rate reductions required
by § 51.705 using Fiscal Year 2011 reciprocal compensation demand, and
then multiply by the Price Cap Carrier Traffic Demand Factor;
(2) By using a composite reciprocal compensation rate as follows:
( i ) Establish a composite reciprocal compensation rate for its Fiscal
Year 2011 reciprocal compensation receipts and its Fiscal Year 2011
reciprocal compensation payments by dividing its Fiscal Year 2011
reciprocal compensation receipts and payments by its respective Fiscal
Year 2011 demand excluding demand for traffic exchanged pursuant to a
bill-and-keep arrangement;
(ii) Calculate the difference between each of the composite reciprocal
compensation rates and the target reciprocal compensation rate set
forth in § 51.705 for the year beginning July 1, 2018, using the
appropriate Fiscal Year 2011 demand, and then multiply by the Price Cap
Carrier Traffic Demand Factor; or
(3) For the purpose of establishing its recovery for net reciprocal
compensation, a Price Cap Carrier may elect to forgo this step and
receive no recovery for reductions in net reciprocal compensation. If a
carrier elects this option, it may not change its election at a later
date.
(H) An amount equal to True-up Revenues for Access Recovery Charges
less Expected Revenues for Access Recovery Charges for the year
beginning July 1, 2016.
(viii) Beginning July 1, 2019, and in subsequent years, a Price Cap
Carrier's eligible recovery will be equal to the amount calculated in
paragraph (d)(1)(vii)(A) through (d)(1)(vii)(H) of this section before
the application of the Price Cap Carrier Traffic Demand Factor
applicable in 2018 multiplied by the appropriate Price Cap Carrier
Traffic Demand Factor for the year in question, and then adding an
amount equal to True-up Revenues for Access Recovery Charges less
Expected Revenues for Access Recovery Charges for the year beginning
July 1 two years earlier.
(2) If a Price Cap Carrier recovers any costs or revenues that are
already being recovered as Eligible Recovery through Access Recovery
Charges or the Connect America Fund from another source, that carrier's
ability to recover reduced switched access revenue from Access Recovery
Charges or the Connect America Fund shall be reduced to the extent it
receives duplicative recovery.
(3) A Price Cap Carrier seeking revenue recovery must annually certify
as part of its tariff filings to the Commission and to the relevant
state commission that the carrier is not seeking duplicative recovery
in the state jurisdiction for any Eligible Recovery subject to the
recovery mechanism.
(e) Access Recovery Charge. (1) A charge that is expressed in dollars
and cents per line per month may be assessed upon end users that may be
assessed an end user common line charge pursuant to § 69.152 of this
chapter, to the extent necessary to allow the Price Cap Carrier to
recover some or all of its eligible recovery determined pursuant to
paragraph (d) of this section, subject to the caps described in
paragraph (e)(5) of this section. A Price Cap Carrier may elect to
forgo charging some or all of the Access Recovery Charge.
(2) Total Access Recovery Charges calculated by multiplying the
tariffed Access Recovery Charge by the projected demand for the year in
question may not recover more than the amount of eligible recovery
calculated pursuant to paragraph (d) of this section for the year
beginning on July 1.
(3) For the purposes of this section, a Price Cap Carrier holding
company includes all of its wholly-owned operating companies that are
price cap incumbent local exchange carriers. A Price Cap Carrier
Holding Company may recover the eligible recovery attributable to any
price cap study areas operated by its wholly-owned operating companies
through assessments of the Access Recovery Charge on end users in any
price cap study areas operated by its wholly owned operating companies
that are price cap incumbent local exchange carriers.
(4) Distribution of Access Recovery Charges among lines of different
types. (i) A Price Cap Carrier holding company that does not receive
ICC-replacement CAF support (whether because it elects not to or
because it does not have sufficient eligible recovery after the Access
Recovery Charge is assessed or imputed) may not recover a higher
fraction of its total revenue recovery from Access Recovery Charges
assessed on Residential and Single Line Business lines than:
(A) The number of Residential and Single-Line Business lines divided by
(B) The sum of the number of Residential and Single-Line Business lines
and two (2) times the number of End User Common Line charges assessed
on Multi-Line Business customers.
(ii) For purposes of this subpart, Residential and Single Line Business
lines are lines (other than lines of Lifeline Customers) assessed the
residential and single line business end user common line charge and
lines assessed the non-primary residential end user common line charge.
(iii) For purposes of this subpart, Multi-Line Business Lines are lines
assessed the multi-line business end user common line charge.
(5) Per-line caps and other limitations on Access Recovery Charges
(i) For each line other than lines of Lifeline Customers assessed a
primary residential or single-line business end user common line charge
or a non-primary residential end user common line charge pursuant to
§ 69.152 of this Chapter, a Price Cap Carrier may assess an Access
Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $0.50 per month for each line;
(B) Beginning July 1, 2013, a maximum of $1.00 per month for each line;
(C) Beginning July 1, 2014, a maximum of $1.50 per month for each line;
(D) Beginning July 1, 2015, a maximum of $2.00 per month for each line;
and
(E) Beginning July 1, 2016, a maximum of $2.50 per month for each line.
(ii) For each line assessed a multi-line business end user common line
charge pursuant to § 69.152 of this chapter, a Price Cap Carrier may
assess an Access Recovery Charge as follows:
(A) Beginning July 1, 2012, a maximum of $1.00 per month for each
multi-line business end user common line charge assessed;
(B) Beginning July 1, 2013, a maximum of $2.00 per month for each
multi-line business end user common line charge assessed;
(C) Beginning July 1, 2014, a maximum of $3.00 per month for each
multi-line business end user common line charge assessed;
(D) Beginning July 1, 2015, a maximum of $4.00 per month for each
multi-line business end user common line charge assessed; and
(E) Beginning July 1, 2016, a maximum of $5.00 per month for each
multi-line business end user common line charge assessed.
(iii) The Access Recovery Charge allowed by paragraph (e)(5)(i) of this
section may not be assessed to the extent that its assessment would
bring the total of the Rate Ceiling Component Charges above the
Residential Rate Ceiling on January 1 of that year. This limitation
applies only to the first residential line obtained by a residential
end user and does not apply to single-line business customers.
(iv) The Access Recovery Charge allowed by paragraph (e)(5)(ii) of this
section may not be assessed to the extent that its assessment would
bring the total of the multi-line business end user common line charge
and the Access Recovery Charge above $12.20 per line.
(v) The Access Recovery Charge assessed on lines assessed the
non-primary residential line end user common line charge in a study
area may not exceed the Access Recovery Charge assessed on residential
end-users' first residential line in that study area.
(vi) The Access Recovery Charge may not be assessed on lines of any
Lifeline Customers.
(vii) If in any year, the Price Cap Carrier's Access Recovery Charge is
not at its maximum, the succeeding year's Access Recovery Charge may
not increase more than $.0.50 per line per month for charges assessed
under paragraph (e)(5)(i) of this section or $1.00 per line per month
for charges assessed under paragraph (e)(5)(ii) of this section.
(f) Price Cap Carrier eligibility for CAF ICC Support.
(1) A Price Cap Carrier shall elect in its July 1, 2012 access tariff
filing whether it will receive CAF ICC Support under this paragraph. A
Price Cap Carrier eligible to receive CAF ICC Support subsequently may
elect at any time not to receive such funding. Once it makes the
election not to receive CAFF ICC Support, it may not elect to receive
such funding at a later date.
(2) Beginning July 1, 2012, a Price Cap Carrier may recover any
eligible recovery allowed by paragraph (d) that it could not have
recovered through charges assessed pursuant to paragraph (e) of this
section from CAF ICC Support pursuant to § 54.304. For this purpose,
the Price Cap Carrier must impute the maximum charges it could have
assessed under paragraph (e)of this section.
(3) Beginning July 1, 2017, a Price Cap Carrier may recover two-thirds
( 2⁄3 ) of the amount it otherwise would have been eligible to recover
under paragraph (f)(2) from CAF ICC Support.
(4) Beginning July 1, 2018, a Price Cap Carrier may recover one-third
(1/3) of the amount it otherwise would have been eligible to recover
under paragraph (f)(2) of this section from CAF ICC Support.
(5) Beginning July 1, 2019, a Price Cap Carrier may no longer recover
any amount related to revenue recovery under this paragraph from CAF
ICC Support.
(6) A Price Cap Carrier that elects to receive CAF ICC support must
certify with its 2012 annual access tariff filing and on April 1st of
each subsequent year that it has complied with paragraphs (d) and (e)
of this section, and, after doing so, is eligible to receive the CAF
ICC support requested pursuant to paragraph (f) of this section.
[ 76 FR 73856 , Nov. 29, 2011, as amended at 77 FR 48452 , Aug. 14, 2012]
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Goto Section: 51.913 | 51.917
Goto Year: 2011 |
2013
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