§ 61.46   Adjustments to the API.

   (a) Except as provided in paragraphs (d) and (e) of this section, in
   connection with any price cap tariff filing proposing rate changes, the
   price cap local exchange carrier must calculate an API for each
   affected basket pursuant to the following methodology:

   APIt = APIt-1[Σi vi (Pt/Pt-1)i]

   Where:

   APIt = the proposed API value,

   APIt-1 = the existing API value,

   Pt = the proposed price for rate element “i,”

   Pt-1 = the existing price for rate element “i,” and

   vi = the current estimated revenue weight for rate element “i,”
   calculated as the ratio of the base period demand for the rate element
   “i” priced at the existing rate, to the base period demand for the
   entire basket of services priced at existing rates.

   (b) New services subject to price cap regulation must be included in
   the appropriate API calculations under paragraph (a) of this section
   beginning at the first annual price cap tariff filing following
   completion of the base period in which they are introduced. This index
   adjustment requires that the demand for the new service during the base
   period must be included in determining the weights used in calculating
   the API.

   (c) Any price cap tariff filing proposing rate restructuring shall
   require an adjustment to the API pursuant to the general methodology
   described in paragraph (a) of this section. This adjustment requires
   the conversion of existing rates into rates of equivalent value under
   the proposed structure, and then the comparison of the existing rates
   that have been converted to reflect restructuring to the proposed
   restructured rates. This calculation may require use of carrier data
   and estimation techniques to assign customers of the preexisting
   service to those services (including the new restructured service) that
   will remain or become available after restructuring.

   (d) The maximum allowable carrier common line (CCL) revenue shall be
   computed pursuant to the following methodology:

   CCL = CMT−EUCL−Interstate Access Universal Service Support Mechanism
   Per Line−PICC

   Where:

   CMT = Price Cap CMT Revenue as defined in § 61.3(cc).

   EUCL = Maximum allowable EUCL rates established pursuant to § 69.152 of
   this chapter multiplied by base period lines.

   Interstate Access Universal Service Support Per Line = the amount as
   determined by the Administrator pursuant to § 54.807 of this chapter
   times the number of base period lines for each customer class and zone
   receiving Interstate Access Universal Service support pursuant to part
   54, subpart J.

   PICC = Maximum allowable PICC rates established pursuant to § 69.153 of
   this chapter multiplied by base period lines.

   (e) In no case shall a price cap local exchange carrier include data
   associated with services offered pursuant to contract tariff in the
   calculations required by this section.

   [ 65 FR 38698 , June 21, 2000;  65 FR 57741 , 57742, Sept. 26, 2000;  76 FR 43214 , July 20, 2011]

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