| (1) Relevant increment of output. When the LRIC is
computed for a group of services, the relevant increment of output,
as that term is used in the definition of LRIC in §26.5 of this
title (relating to Definitions), must be the level of output necessary
to satisfy current demand levels for the services in the group. Adjustments
to total service output may be made to reflect the presence of new
services for which demand levels can demonstrably be anticipated to
increase significantly over the course of six months.
(2) Relating expenses to groups of services. The company
must avoid the use of embedded cost data and must determine expenses
consistent with the principles of long run incremental costing.
(A) Common expenses. Common expenses that are not directly
attributable, using the cost causation principle, to the group of
services must be excluded.
(B) Nonrecurring expenses. The expenses of nonrecurring
activities must be separately identified.
(C) Taxes. Any tax expenses not directly attributable,
using the cost causation principle, must be excluded from the LRIC
study for the group of services.
(3) Least cost technology. LRIC studies must assume
the use of least cost technology. The choice of least cost technologies,
however, must:
(A) be restricted to technologies that are currently
available on the market and for which vendor prices can be obtained;
(B) be consistent with the level of output necessary
to satisfy current demand levels for all services using the BNF in
question; and
(C) be consistent with overall network design and topology
requirements.
(4) Network topology. LRIC studies must use the existing
or planned network topology.
(5) Cost of money. When the company uses the most recent
commission approved rate of return for the company, determined either
in a rate proceeding as described in §26.201(d)(1) of this title
(relating to Cost of Service) or a commission arbitration proceeding,
there will be a rebuttable presumption of its reasonableness. The
company may use any other forward-looking rate, but must justify its
use. The DCTU is not required to update its filing only to reflect
the most recently approved cost of money.
(6) Rate of depreciation. When the company uses the
most recent commission approved rate of depreciation for the company
there will be a presumption of reasonableness. The company must justify
the use of any other rate.
(j) Requirements for subsequent filings of LRIC studies.
The LRIC studies required by this subsection must be consistent with
the principles, instructions and requirements set forth in this section
and the workplan approved by the commission and must be reviewed in
accordance with the procedures established in subsection (k) of this
section.
(1) Updated studies. A DCTU may be required to update
the filings required by this section, other than the workplan, for
those studies where significant changes have occurred.
(2) Provisions for new BNFs. When significant technological
or other changes occur that necessitate a change in the definition
of current BNFs or the identification of new BNFs, the DCTU must file
with the commission and the Office of Public Utility Counsel (OPUC)
updated versions for all affected LRIC studies or new studies as appropriate.
(3) Provisions for new services. For each application
for a service filed in accordance with this title, the DCTU must file
with the commission and OPUC a LRIC study for the service consistent
with the principles described in subsection (d) of this section and
the specific requirements set forth in subsection (g) of this section.
(4) Unbundling of existing tariffed services. When
an application filed in accordance with this title proposes a service
that previously had been bundled with other BNFs into a tariffed service,
the DCTU must carefully reexamine the identification of groups of
services that share significant common costs (as required under subsection
(h) of this section). If the new service significantly changes the
identification of groups of services and the identification of common
costs, the DCTU should update all studies required under this section
that are affected by these changes.
(k) Review process for LRIC studies. A LRIC study considered
under this section will be reviewed administratively to determine
whether the DCTU's LRIC study is consistent with the principles, instructions
and requirements set forth in this section.
(1) Sufficiency. The LRIC study will be examined for
sufficiency. To be sufficient, the LRIC study must conform to the
prototype studies developed under the workplan approved by the commission.
If the presiding officer or the commission staff concludes that material
deficiencies exist in the LRIC study, the DCTU will be notified within
15 days of the filing date of the specific deficiency in its LRIC
study. The DCTU will have 15 days from the date it is notified of
the deficiency to file a corrected LRIC study.
(2) Time schedule.
(A) No later than 45 days after the filing date of
the sufficient LRIC study, any party that demonstrates a justiciable
interest may file with the presiding officer written comments or recommendations
concerning the LRIC study.
(B) No later than 55 days after the filing date of
the sufficient LRIC study, OPUC may file with the presiding officer
written comments or recommendations concerning the LRIC study.
(C) No later than 65 days after the filing date of
the sufficient LRIC study, commission staff must file with the presiding
officer written comments or recommendations concerning the LRIC study.
(D) No later than 75 days after the filing date of
the sufficient LRIC study, any party that demonstrates a justiciable
interest, OPUC, or the DCTU may file with the presiding officer a
written response to the commission staff's recommendation.
(E) No later than 85 days after the filing date of
the sufficient LRIC study, the presiding officer must complete an
administrative review to determine whether the DCTU's LRIC study is
consistent with the principles, instructions and requirements set
forth in this section. The presiding officer must approve the LRIC
study or order the DCTU to refile the LRIC study incorporating all
modifications recommended by the presiding officer.
(F) Any party may appeal to the commission an administrative
determination by a presiding officer within five days after the date
of notification of the determination. The commission will rule on
the appeal within 30 days after the date it receives the appeal. If
the commission or a presiding officer orders a cost study to be changed,
the dominant certificated telecommunications utility must be ordered
to make those changes within a period that is commensurate with the
complexity of the LRIC study.
(3) Requests for information. While the LRIC study
is being administratively reviewed, the commission staff, OPUC, and
any party that demonstrates a justiciable interest may submit requests
for information to the DCTU. Answers to such requests for information
must be provided within ten days after receipt of the request by the
DCTU to commission staff, OPUC and any party that demonstrates a justiciable
interest.
(4) Suspension. At any point within the first 45 days
of the review process, the presiding officer, the commission staff,
OPUC, the DCTU, or any party that demonstrates a justiciable interest
may request that the review process be suspended for 30 days. The
presiding officer may grant a request for suspension only if he or
she has determined that the party has demonstrated that good cause
exists for such suspension.
(5) Effective date of the LRIC study. The effective
date of the LRIC study must be the date it is approved by the presiding
officer.
(l) Notice requirements. At least ten days before a
DCTU files any workplan or LRIC study in accordance with this section,
the DCTU must file with the commission and OPUC a notice of its intent
to file such workplan or LRIC study and the expected filing date.
The DCTU's notice must indicate that the filing is being made in accordance
with this section. The commission must then publish notice of the
DCTU's intent to file the workplan or LRIC study in the Texas Register.
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| Source Note: The provisions of this §26.215 adopted to be effective August 10, 1999, 24 TexReg 6066; amended to be effective December 21, 1999, 24 TexReg 11318; amended to be effective December 21, 2023, 48 TexReg 7524 |
