(a) Application. This section applies to dominant certificated
telecommunications utilities (DCTUs), as that term is defined by §26.5
of this title (relating to Definitions).
(1) The services to which this section applies are
those that are a subset of a service for which the utility is dominant.
(2) A DCTU may alternatively seek approval for an application
for a new or experimental service in accordance with §26.208
of this title (relating to General Tariff Procedures), however the
presiding officer may require any application for a new or experimental
service to also comply with the requirements of this section.
(3) If an application for a new or experimental service
is reviewed under this section, each rate established for such a service
must comply with the requirements of §26.208 of this title.
(b) Purpose. The procedures in this section establish
the process by which a DCTU obtains approval to offer new and experimental
services.
(c) Filings requesting approval of new and experimental
services. A DCTU may request approval of a new or experimental service
by following the procedures outlined in this section. Not later than
35 days prior to the proposed effective date of the new or experimental
service, the DCTU must file with the commission an application containing
the following information:
(1) a statement of intent by the DCTU to use the procedures
established in this section;
(2) a description of the proposed service and the rates,
terms and conditions under which the service is proposed to be offered;
(3) the proposed effective date of the service;
(4) a statement detailing the type of notice, the utility
has provided or intends to provide to the public regarding the application
and a brief statement explaining why the DCTU's notice proposal is
reasonable and in compliance with §26.208 of this title;
(5) a copy of the notice, if any;
(6) detailed documentation showing that the proposed
service is priced above the long run incremental cost of such service.
The commission will allow an incumbent local exchange carrier (LEC)
that is not a Tier 1 LEC as of September 1, 1995, at that company's
option, to adopt the cost studies approved by the commission for a
Tier 1 LEC. The application must also include projections of revenues,
demand, and expenses demonstrating that in the second year after the
service is first offered, the proposed rates will generate sufficient
annual revenues to recover the annual long run incremental costs of
providing the service, as well as a contribution for joint or common
costs. Capital costs related to providing the service must be separately
identified in these projections. The application must also include
all workpapers and supporting documentation relating to computations
or assumptions contained in the application.
(7) If the application concerns a service which will
not initially be offered system-wide, the application must separately
explain for each exchange in which the service will not be offered
why the DCTU's facilities in that exchange do not have the technical
capability to handle the service.
(8) The application must also include:
(A) an implementation plan which must specify the DCTU's
plans for making the service available in such exchanges within a
reasonable time after receipt by the LEC of a bona fide request for
the service.
(B) what requirements must be met for a request for
service to be considered bona fide. This requirement does not apply
to experimental services, but the DCTU must specify the exchanges
in which it proposes to offer the experimental service.
(9) If the application concerns an experimental service
for which a range of rates is proposed, the application must state
the range of rates requested and show in detail how the upper and
lower rates in that range relate to the long run incremental cost
of the service.
(10) Any other information which the DCTU wants considered
in connection with the commission's review of its application.
(d) Modifications and waivers of requirements.
(1) In its application a DCTU may request:
(A) the modification or waiver of requirements set
forth in this section concerning system-wide rates;
(B) system-wide provision of service;
(C) the one-year maximum period for offering an experimental
service; the one-year, cost-related prove-in period;
(D) or long run incremental cost support.
(2) Subsequent to the introduction of an experimental
service, a DCTU may also apply for modification of the period initially
approved for offering the service, provided that:
(A) An experimental service will not be approved for
more than two years;
(B) A prove-in period will not be extended beyond two
years and;
(C) As an alternative to providing incremental cost
information, the DCTU must provide other cost support demonstrating
that the proposed rates for the service will recover its costs plus
a contribution within the required period.
(3) A waiver of the incremental cost standard must
only be granted if the presiding officer determines that such a standard
imposes an unreasonable burden on a DCTU which has inadequate resources
to produce the required cost information to meet that standard and
if the presiding officer determines that an appropriate alternative
cost standard is available.
(4) Any request for modification or waiver of these
requirements must include a complete statement of the DCTU's arguments
supporting that request. The presiding officer will rule on the waiver
request within 15 days of the filing of the request.
(e) Requirements for proposed new and experimental
services. Unless waived or modified by the presiding officer as provided
under subsection (d) of this section, the following requirements must
apply to any new service approved under this section:
(1) Such new service must be offered at the same price
throughout the DCTU's system.
(2) The service must also be offered in every exchange
served by the DCTU, except exchanges in which the DCTU's facilities
do not have the technical capability to handle the service.
(3) The rates for a new service must be designed to
generate sufficient annual revenues to recover the annual long run
incremental cost of the service, including a contribution for joint
or common costs, in the second year after it is first offered. Requirements
related to system-wide pricing and system-wide provision of service
do not apply to a proposed experimental service.
(4) An experimental service approved under this section
may be flexibly priced provided that the minimum rate in the range
of rates must be above the long run incremental cost of providing
the service. The DCTU may make a change in rates within an approved
range of rates upon such notice to customers and the commission as
the presiding officer may require. In addition, before discontinuing
provision of an experimental service, the DCTU must give such notice
of the discontinuation as the presiding officer may require.
(f) Reporting requirements.
(1) If a new service is approved, the DCTU must file
with the commission:
(A) tracking reports showing the actual revenues;
(B) demand and related expenses for the service;
(C) its progress on the implementation plan, if any
such plan was approved by the commission;
(D) and such other information as may be required by
the presiding officer or requested by the commission staff.
(2) Reports filed under this section must be filed
as specified by this paragraph, unless otherwise excepted by paragraph
(3) of this subsection.
(A) The initial report is due nine months after the
service is first offered and must contain information for at least
the first six months the service was offered.
(B) The second such report must be filed 12 months
after the service is first offered and must contain information for
at least the first nine months the service was offered.
(C) The third such report must be filed no later than
15 months after the service is first offered and must contain information
for at least the first 12 months the service was offered.
(3) Such reporting requirements are waived for experimental
services of one year's duration or less, but the DCTU must retain
in its record such information related to revenues, demand and expenses
and must submit such information with any subsequent request to make
a formerly experimental service a permanent new service.
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