[Federal Register Volume 62, Number 209 (Wednesday, October 29, 1997)]
[Rules and Regulations]
[Pages 56120-56121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28544]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 69
[CC Docket Nos. 96-262, 94-1, 91-213; FCC No. 97-368]
Access Charge Reform; Price Cap Performance Review for Local
Exchange Carriers
AGENCY: Federal Communications Commission.
ACTION: Final rule; petition for waiver.
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SUMMARY: On October 8, 1997, the Commission adopted a Memorandum
Opinion and Order in this proceeding granting a petition for waiver
filed by the National Exchange Carrier Association, Inc. (NECA). In its
petition, NECA sought an order waiving Sec. 69.105(b)(2)-(3) for NECA's
pool, so as to allow NECA to reflect revised long term support formula
amounts in its carrier common line (CCL) tariff rates effective January
1, 1998. The Commission granted the waiver on condition that NECA
compute the CCL charge in the manner prescribed by the Commission.
EFFECTIVE DATE: November 28, 1997.
FOR FURTHER INFORMATION CONTACT: Richard Lerner, Attorney, Common
Carrier Bureau, Competitive Pricing Division, (202) 418-1530.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Memorandum Opinion and Order adopted October 8, 1997, and released
October 9, 1997. The full text of this Memorandum Opinion and Order is
available for inspection and copying during normal business hours in
the FCC Reference Center (Room 239), 1919 M St., NW., Washington, DC.
The complete text also may be obtained through the World Wide Web, at
http://www.fcc.gov/Bureaus/Common__Carrier/Orders/fcc.97368.wp, or may
be purchased from the Commission's copy contractor, International
Transcription Service, Inc., (202) 857-3800, 1231 20th Street, NW,
Washington, DC 20036.
Paperwork Reduction Act
N/A. This Memorandum Opinion and Order does not require an
information collection.
[[Page 56121]]
Synopsis of Memorandum Opinion and Order
1. The National Exchange Carrier Association, Inc. (NECA) asserts
in its reconsideration petition that the Commission should revise on
reconsideration the rule provisions governing calculation of NECA
carrier common line (CCL) rates, without waiting for the conclusion of
a separate proceeding on access charge reform for rate-of-return LECs.
In the alternative, NECA requests that the Commission issue an order
waiving Sec. 69.105(b)(2)-(3) for NECA's pool, so as to allow NECA to
reflect revised long term support (LTS) formula amounts in its CCL
tariff rates effective January 1, 1998. No party opposed or supported
NECA's petition for reconsideration or waiver of the rule. We have
decided to waive the specified rule provisions at this time, and make
appropriate rule revisions in the separate proceeding.
2. Section 69.105(b) currently sets the NECA CCL tariff at the
average of price-cap LECs' CCL charges. Prior to January 1, 1998, LTS
is a variable amount, based on the difference between the revenues
earned from charging a nationwide average CCL rate and the NECA pool
CCL revenue requirement. In the Universal Service Order, we substituted
federal universal service support payments for previously-received
recovery from the interstate access charge system through LTS. Federal-
State Joint Board on Universal Service, Report and Order, CC Docket No.
96-45, 62 FR 32862 (June 17, 1997) (Universal Service Order). The rule
revisions in the First Report and Order removed LTS amounts from price
cap LEC CCL calculations, but postponed making conforming revisions in
Sec. 69.105(b) to the CCL rate calculation for NECA tariff
participants. Access Charge Reform, CC Docket No. 96-262, First Report
and Order, 62 FR 31040 (June 6, 1997).
3. Section 1.3 of our rules empowers the Commission to grant
waivers of its rules if good cause is shown. In this situation, NECA
must demonstrate that special circumstances justify a departure from
the general rule and that such a deviation will serve the public
interest. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164 (D.C.
Cir. 1990); WAIT Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969). We
conclude that NECA has demonstrated that continued application of
Sec. 69.105(b)(2)-(3) would be contrary to the public interest in these
circumstances. As we stated in the Universal Service Order, the
``elimination of price-cap (incumbent LECs') LTS obligations will allow
their CCL charges to fall, but there is no corresponding reason for a
reduction in the NECA CCL tariff. Yet under our current rules, the NECA
CCL charge would fall simply because of our regulatory changes to
price-cap (incumbent LECs') LTS payment obligations. We must therefore
establish a new method to set the NECA CCL tariff.''
4. Because changes in the recovery of LTS amounts and price-cap
carrier CCL rate computations as adopted in the First Report and Order
and Universal Service Order are scheduled to become effective on
January 1, 1998, grant of the waiver will allow NECA to conform its
rates to decisions reached in the Universal Service Order by reflecting
revised LTS formula amounts in its CCL tariff rates effective January
1, 1998. We therefore waive Sec. 69.105(b)(2)-(3) for the calculation
of NECA's CCL pool rate that will become effective January 1, 1998, on
the condition that NECA must compute the Carrier Common Line charge as
follows:
(a) From the NECA pool aggregate Carrier Common Line revenue
requirement amount, subtract: (1) Aggregate End User Common Line
charges; (2) aggregate Special Access Surcharges; and (3) the portion
of per-line support that NECA CCL pool participants receive, in the
aggregate, pursuant to 47 CFR 54.303.
(b) The premium originating Carrier Common Line charge must be one
cent per minute, except as described herein at paragraph (d), and
(c) The premium terminating Carrier Common Line charge must be
computed by subtracting the projected revenues generated by the
originating Carrier Common Line charges (both premium and non-premium)
from the number calculated in paragraph (a), and dividing the remainder
by the sum of the projected premium terminating minutes and a number
equal to 0.45 multiplied by the projected non-premium terminating
minutes, except as described herein at paragraph (d).
(d) If the calculations described in paragraph (c) result in a per
minute charge on premium terminating minutes that is less than one
cent, both the originating and terminating premium charges for the NECA
CCL pool participants must be computed by dividing the number
calculated pursuant to paragraph (a) by the sum of the premium minutes
and a number equal to 0.45 multiplied by the non-premium minutes for
the NECA CCL pool participants.
This NECA CCL charge calculation will reflect that now the CCL
charge, rather than LTS, is a residual amount.
Accordingly, it is ordered, pursuant to 47 U.S.C. 154(i) and 47 CFR
1.3, that NECA's request for waiver of Sec. 69.105(b)(2)-(3) of the
Commissions rules, 47 CFR part 69.105(b)(2)-(3) is granted subject to
the limitations and conditions described in this document.
Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-28544 Filed 10-28-97; 8:45 am]
BILLING CODE 6712-01-P
