Sec. 69.612  Long term and transitional support.

    A telephone company that does not participate in the association 
Common Line tariff shall have computed by the association:
    (a) Long term support obligation. (1) Beginning July 1, 1994 and 
until December 31, 1997, the Long Term Support payment obligation of 
telephone companies that do not participate in the NECA Common Line 
tariff shall equal the difference between the projected Carrier Common 
Line revenue requirement of association Common Line tariff participants 
and the projected revenue recovered by the association Carrier Common 
Line charge as calculated pursuant to Sec. 69.105(b)(1).
    (2) For the period from April 1, 1989 through June 30, 1994, the 
Long Term Support payment obligation shall be funded by all telephone 
companies that are not association Common Line tariff participants and 
do not receive transitional support pursuant to Sec. 69.612(b). The 
percentage of the total annual Long Term Support requirement paid by 
each telephone company in this group that is not a Level I or Level II 
Contributor shall equal the number of its common lines divided by the 
total number of common lines of all telephone companies paying Long Term 
Support. The remaining amount of Long Term Support requirement shall be 
allocated among Level I and Level II Contributors based upon the amount 
of each Level I and Level II Contributor's 1988 contributions to the 
association Common Line pool in relation to the total amount of 1988 
Common Line pool contributions of all other Level I and Level II 
Contributors. The association shall inform each telephone company about 
its mandatory Long Term Support obligations within a reasonable time 
prior to the filing of each telephone company's annual Common Line 
tariff revisions or other similar filing ordered by the Commission. Such 
amounts shall represent a negative net balance due to the association 
that it shall bill, collect, and distribute pursuant to Sec. 69.603(e).
    (3) Beginning July 1, 1994, and thereafter, the Long Term Support 
payment obligation shall be funded by each telephone company that files 
its own Carrier Common Line tariff does not receive transitional 
support. The percentage of the total annual Long Term Support 
requirement paid by each of these companies shall equal the number of 
its common lines divided by the total number of common lines of all 
telephone companies paying Long Term Support. The association shall 
inform each telephone company about its Long Term Support obligation 
within a reasonable time prior to the filing of each telephone company's 
annual Common Line tariff revisions or other similar filing ordered by 
the Commission. Such amounts shall represent a negative net balance due 
to the association that it shall bill, collect, and distribute pursuant 
to Sec. 69.603(f).
    (b) Transitional support. (1) Telephone Companies categorized as 
Level I and Level II Receivers that file their own Common Line tariffs 
effective April 1, 1989 shall receive Transitional Support for a four 
year period commencing April 1, 1989. Level II Receivers that file their 
own Common Line tariffs effective July 1, 1990 shall receive 
Transitional Support for a four year period commencing July 1, 1990. 
Transitional Support for each of these telephone companies shall be 
computed on the basis of the net revenues less revenue requirement 
amounts for 1988 (adjusted for the additional revenues resulting from an 
increase in End User Common Line charges to $3.50). Transitional Support 
for these telephone companies during the transition shall be as follows:

Year 1--80% of the adjusted 1988 frozen amount

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Year 2--60% of the adjusted 1988 frozen amount
Year 3--40% of the adjusted 1988 frozen amount
Year 4--20% of the adjusted 1988 frozen amount

    (2) For the period from April 1, 1989 through June 30, 1994, the 
Transitional Support Fund shall be funded by all telephone companies or 
groups of affiliated telephone companies that are not association Common 
Line tariff participants and do not qualify under Sec. 69.612(b)(1) for 
Transitional Support payments.

[ 55 FR 6990 , Feb. 28, 1990, as amended at  62 FR 32962 , June 17, 1997]