65- 407 C.M.R. ch. 288, § 3 - ELIGIBILITY AND FILING REQUIREMENTS

A. Eligible Applicants. To be eligible to apply for support from the MUSF, a carrier must be:

1. A non-price cap incumbent local exchange carrier that provides POLR service, or a successor provider of POLR service designated by the Commission; and

2. Found by the Commission to be an Eligible Telecommunications Carrier.

B. Application for Universal Service Funding or Change in Funding.

1. Filing. A non-price cap incumbent local exchange carrier (ILEC) that intends to request universal service funding or a change in the amount of funding shall file an application requesting the funding or change in funding. The application must demonstrate:

a. that the non-price cap ILEC's cost of providing POLR service is greater than the current POLR rate charged by the ILEC;

b. that the non-price cap ILEC's total intrastate revenue requirement exceeds the amount of intrastate revenue that the ILEC receives under its current rates and prices; or

c. that the non-price cap ILEC's total combined (intrastate and interstate) revenue requirement exceeds the total amount of revenue that the ILEC receives from all services under its current rates and prices.

2. Additional Requirements. If the non-price-cap ILEC files its application using the demonstration described in Subsection B (1)(a) of this Section, the ILEC must also demonstrate that raising its POLR rate to the level necessary to meet its cost of providing POLR service would result in a POLR rate that is not reasonably comparable. If the non-price cap ILEC files its application using the demonstrations described in Subsections B(1)(b) or B(1)(c) of this Section, the non-price cap ILEC must also:

* demonstrate that it has maximized the revenues that it obtains from all intrastate services, other than POLR service, or all services, as applicable;

* demonstrate that it has reduced to the lowest reasonably prudent level its costs necessary to provide safe and adequate service;

* propose to raise its POLR rate to a reasonably comparable level; and

* establish intrastate access rates that meet the requirements of 35-A M.R.S. §7101-B and any requirements established by the Commission pursuant to 35-A M.R.S. §7101-B(2)(C).

3. Contents

a. A non-price cap ILEC that files an application using the demonstration described in Subsection B(1)(a) of this Section must also provide complete support for its asserted cost of providing POLR service.

b. A non-price cap ILEC that files an application using the demonstrations described in Subsections B(1)(b) or B(1)(c) of this Section, shall also contain all information required by Chapter 120, Section 5 of the Commission's Rules, except to the extent waived pursuant to Section 7 of this Chapter.

C. Support for Successor Providers. In the event that a non-price cap ILEC is relieved of its POLR service obligation, and the Commission designates a successor entity to provide POLR service in the relieved provider's service territory, the successor entity shall initially receive the same amount of MUSF support as the non-price cap ILEC received at the time it was relieved of its POLR obligation. The successor entity may request a change in the amount of its MUSF support pursuant to the requirements applicable to a non-price cap ILEC under Subsection (B of this Section.

D. Order Establishing Amount of Support. Following any application or rate proceeding required by this Section or any adjustment or order for support permitted by this Section, the Commission shall issue an order establishing the amount of payments that a provider of POLR service is authorized to receive from the Fund and, if necessary, a schedule for the implementation of the rate for POLR service.

E. Adjustments Without Further Rate Proceeding. At any time after the initial establishment of the MUSF support level for a provider of POLR service, the Commission, without an additional proceeding pursuant to B of this Section, but after notice and such procedure as required by law, may adjust the amount of support provided from the Fund to accommodate substantial and direct changes in the cost of providing POLR service, or in the case of a POLR provider who received an adjustment of its MUSF support amount pursuant to the provisions of Subsection B(1)(b) or (c) of this Section, in costs and revenues of a provider of POLR service. The Commission may consider changes in:

1. access charges;

2. the amount of federal high cost support;

3. the Basic Service Calling Area of the provider;

4. federal or Maine regulatory rules or policies, accounting practices, tax laws, or other legislatively or judicially imposed requirements to the extent these changes have a direct and specific effect on telecommunications carriers collectively or individually; or

5. such other items the Commission considers to be appropriate.

F. Adjustments for Other Reasons. To change the amount of payments that a provider of POLR service receives from the Fund for reasons other than those listed in Section 3(E), the Commission shall conduct a proceeding that is appropriate to address the type of change under consideration.

Notes

65- 407 C.M.R. ch. 288, § 3