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 and 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

   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;  63 FR 2133 , Jan. 13, 1998]

Subpart H—Pricing Flexibility

   Source:    64 FR 51267 , Sept. 22, 1999, unless otherwise noted.