(a) Application. This section applies to ILECs with
annual revenues from regulated telecommunications operations in Texas
of less than $100 million for five consecutive years.
(b) Purpose. This section will be used to determine
the long run incremental costs incurred by ILECs in the provision
of telecommunications services in those instances in which the ILEC
chooses to establish LRIC studies.
(c) LRIC studies. An ILEC may establish a service's
LRIC by submitting a LRIC cost study that conforms to the following
general requirements:
(1) A LRIC study must identify the ILEC's investment
in all facilities that reflect forward looking least cost technology,
as set forth in §26.215(f)(3) of this title (relating to Long
Run Incremental Cost Methodology for Dominant Certificated Telecommunications
Utility (DCTU) Services), used in the provision of the service.
(2) A LRIC study must apply appropriate loading and
fill factors associated with the service.
(3) A LRIC study must apply appropriate annual cost
factors, including but not limited to depreciation and cost of money,
associated with the service.
(4) A LRIC study must identify non-capital costs associated
with the service, including but not limited to maintenance, billing
and collection, and marketing costs.
(d) Procedures for review of LRIC studies filed under
subsection (c) of this section. A LRIC study considered under this
section will be reviewed administratively to determine whether the
ILECs LRIC study is consistent with the requirements of this section.
(1) Notice. At least ten days before an ILEC files
any LRIC study in accordance with this section, the ILEC must file
with the commission and the Office of Public Utility Counsel (OPUC)
a notice of its intent to file such LRIC study and the expected filing
date. The ILEC's notice must indicate that the filing is being made
in accordance with this section. The commission will then publish
notice of the ILEC's intent to file the LRIC study in the Texas Register.
(2) Sufficiency. The LRIC study will be examined for
sufficiency. To be sufficient, the LRIC study must conform to the
requirements of this section.
(A) Except as required under subparagraph (B) of this
paragraph, if commission staff concludes that material deficiencies
exist in the LRIC study, the ILEC must be notified by commission staff
of the specific deficiency within three working days after the filing
date of the LRIC study. The ILEC will have two working days after
the date it is notified of the deficiency to file a corrected LRIC
study. On or before five working days after the date of the ILEC response,
the presiding officer will issue an order with regard to the sufficiency.
(B) If the LRIC study filed for approval in accordance
with this section is also filed simultaneously as part of an informational
notice filing and a contested case arises as a result of the dispute
regarding sufficiency of the LRIC study filed as part of the informational
notice filing, the review of the LRIC study in accordance with this
section will be abated pending the resolution of the contested case.
(3) 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 justiciable
interest, OPUC, or the ILEC 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 will issue a notice
stating whether the ILEC's LRIC study is consistent with the requirements
of this section. In this notice, the presiding officer may either
approve the LRIC study or order the ILEC to refile the LRIC study
incorporating all modifications recommended by the presiding officer.
(F) Any party may appeal to the commission an administrative
notice by a presiding officer within seven days after the date the
notice is issued. The commission will rule on any appeal added to
an open meeting agenda, within 30 days after the date the appeal is
filed. If the commission or a presiding officer orders a cost study
to be changed, the ILEC will be ordered to make those changes within
a period that is commensurate with the complexity of the LRIC study.
(G) 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 ILEC. Answers to such requests for information
must be provided within ten days after receipt of the request by the
ILEC to commission staff, OPUC, and any party that demonstrates a
justiciable interest.
(H) Suspension. At any point within the first 45 days
of the review process, the presiding officer, the commission staff,
OPUC, the ILEC, 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 upon determination
that the party has demonstrated a good cause exists for the suspension.
(I) Effective date of the LRIC study. The effective
date of the LRIC study is the date it is approved by the presiding
officer.
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