Goto Section: 54.1303 | 54.1305 | Table of Contents
FCC 54.1304
Revised as of October 5, 2017
Goto Year:2016 |
2018
§ 54.1304 Calculation of safety net additive.
(a) Safety net additive support. Only those local exchange carriers
that qualified for safety net additive based on 2011 or prior year
costs shall be eligible to receive safety net additive pursuant to
paragraph (c) of this section. A local exchange carrier shall not
receive safety net additive unless the carrier's realized total growth
in Telecommunications Plant in Service (TPIS) was more than 14 percent
in 2011 or earlier, pursuant to paragraph (c) of this section.
(b) Calculation of safety net additive support for companies that
qualified based on 2011 or prior year costs. Safety net additive
support is equal to the amount of capped support calculated pursuant to
this subpart M 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 for companies that
qualified based on 2011 or prior year costs. (1) In any year in which
the total carrier loop cost expense adjustment is limited by the
provisions of § 54.1302, a rate-of-return 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 TPIS,
as prescribed in § 32.2001, 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), or (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 § 54.1302. 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.
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Goto Section: 54.1303 | 54.1305
Goto Year: 2016 |
2018
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