3 AAC 53.245 - Competitive entry rate modification
Current through April 6, 2022
(a) An incumbent
local exchange carrier may petition the commission to modify its existing
retail local exchange rates to establish new rates for the noncompetitive area
if the carrier
(1) is a rural telephone
company as defined in 47
U.S.C. 153(44);
and
(2) demonstrates that a
competitor may enter the incumbent local exchange carrier's service
area.
(b) An incumbent
local exchange carrier that is not a rural telephone company as defined in
47 U.S.C.
153(44), or that cannot make
the demonstration required by (a)(2) of this section, may petition the
commission for approval to use the provisions of (d) - (h) of this section to
propose modifications of the carrier's existing retail local exchange rates for
the noncompetitive areas. The carrier must obtain approval of its petition
before filing a rate modification proposal under this section. The commission
may grant a petition filed under this subsection if the carrier demonstrates
that using the provisions of (d) - (h) of this section is in the public
interest.
(c) A petition for
permanent rate modification, filed under this section by an incumbent local
exchange carrier, and as approved by the commission, becomes effective only
upon approval of the competitor's application for certification or eligible
telecommunications carrier designation in the incumbent local carrier's service
area.
(d) A petition for a rate
modification filed under this section must also be filed in accordance with
3
AAC 48.220 and
3
AAC 48.270, and must include the following:
(1) a reference to this section and a
description of the service or group of services that are or may become
competitive in one or more portions of the incumbent carrier's service area
and, if applicable, the docket number of the competitor's application
proceeding;
(2) a study in support
of the rate modification; the study must be based on
(A) the incumbent carrier's most recent
revenue requirement study or cost-of-service and rate design study, including
demand levels from the test year if the revenue requirement study or
cost-of-service and rate design study was approved within the previous three
years;
(B) a new revenue
requirement developed under
3
AAC 48.275; or
(3) a detailed description and an explanation
of the method used to determine the revenue requirement, demand, and rates
proposed for each exchange including
(A) all
accounts or subaccounts and the amounts that are directly assigned to each
exchange;
(B) all accounts or
subaccounts and the amounts that are allocated among the exchanges, together
with a description of the allocation methodology and the basis for the factors
used; and
(C) an analysis
demonstrating that the sum of the revenue requirements for the exchanges in
noncompetitive areas plus the exchanges in competitive local exchange markets
equals
(i) the total company local revenue
requirement approved by the commission within the three previous years;
or
(ii) a local revenue requirement
developed under either
3
AAC 48.275 or
3
AAC 53.010 -
3
AAC 53.140;
(4) a copy of the carrier's federal universal
service fund disaggregation plan filing under
47 C.F.R.
54.315;
(5) an explanation of how the cost
allocations and universal service fund assignments used in the proposed rate
modification are consistent with or different from the cost allocations and
universal service fund assignments from the carrier's federal universal service
fund disaggregation plan filing;
(6) supporting data and reasons why the cost
differences by exchange cannot or should not be addressed through the current
or an amended federal universal service fund disaggregation plan
filing;
(7) a description of the
operating revenues by exchange based on billing records from the test year used
to develop the revenue requirement;
(8) a description of the methodology used to
allocate all operating revenues that are not specifically related to an
exchange;
(9) existing rates for
discretionary services and non-recurring charges;
(10) a cost allocation manual, developed
consistent with the cost allocation principles of
47 C.F.R.
64.901, as revised as of October 1, 2004 and
adopted by reference, with costs for competitive local exchange markets treated
like nonregulated costs; the cost allocation manual must specify how the
incumbent local exchange carrier will separate nonregulated costs and costs for
competitive local exchange markets from regulated costs for noncompetitive
areas; the cost allocation manual must remain in effect until completion of the
carrier's next general rate case or until otherwise ordered by the commission;
however, if an incumbent local exchange carrier received approval under (b) of
this section to use the provisions of (d) - (h) of this section to propose
modifications to the carrier's existing retail local exchange rates, the
carrier is not required to file a cost allocation manual under this
paragraph.
(e) A
petition for a rate modification filed under this section may include
(1) deaveraged rates for private line
services based on differences in cost between exchanges; and
(2) a differential between basic residential
rates and business rates within the same exchange area with a detailed
explanation and a justification for any change in the differential between
basic residential rates and business rates.
(f) A local exchange carrier may petition the
commission to implement, on an interim and refundable basis, its rate
modification proposal in the noncompetitive areas
(1) on the date a competitor is granted a
certificate of public convenience and necessity;
(2) when a competitor is designated as an
eligible telecommunications carrier in the local exchange carrier's service
area; or
(3) on the date a
competitor offers services to a customer for compensation, if
(A) a complete petition for rate modification
is filed with the commission; and
(B) the commission has not previously
approved or denied the petition to modify rates.
(g) Any information required under
(d) of this section may also be filed in the docket relating to the
competitor's application for certification or for eligible telecommunications
carrier designation to aid in the commission's consideration of the
application.
(h) Upon petition, or
on its own motion, for good cause, the commission may delay or advance the
implementation of a rate modification proposal that is the subject of a
petition under (f) of this section.
(i) In this section, "general rate case"
means a proceeding, initiated by a filing with supporting information described
in 3 AAC 48.275, in which the
commission reviews the local exchange carrier's costs and revenues to establish
rates
Notes
As of Register 202 (July 2012), the regulations attorney made technical revisions under AS 44.62.125(b)(6), to 3 AAC 53.245(a) and (b).
Authority: AS 42.05.141
AS 42.05.151
AS 42.05.381
AS 42.05.421
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