| (iii) direct costs incurred by the utility(ies) in
conducting demand analyses in compliance with paragraph (3) of this
subsection.
(B) The utility(ies) may analyze the effect on toll
revenues in order to present evidence on the overall revenue effects
of providing the requested EAS. Revenue effects supported by such
evidence, if presented, may be included in the EAS rate additives
specified in paragraph (5)(D) of this subsection.
(C) The utility must file with the commission's the
proceeding the results of these studies, together with supporting
schedules and detailed documentation needed to understand and verify
the study results according to the following schedule, unless the
utility can demonstrate that good cause exists to expand the time
schedule for a particular study:
(i) incremental costs identified in this paragraph
must be filed no later than 90 days from the filing of the results
of the demand analysis conducted in accordance with paragraph (3)
of this subsection; and
(ii) toll revenue effects, if analyzed in accordance
with subparagraph (B) of this paragraph, must be filed no later than
90 days from the filing of the results of the incremental costs, in
accordance with clause (i) of this subparagraph.
(5) EAS rate additives.
(A) Coincident with the filing of cost study results,
or coincident with the toll revenue effect results, if filed, the
utility must file recommendations for proposed incremental rate additives,
by class of service, necessary to support the cost of the added service,
as well as to support the toll revenue effect, if such effect is filed.
(i) EAS rate additives to be assessed on EAS subscribers
in each petitioning exchange are to recover the incremental cost of
providing the service according to paragraph (4)(A) of this subsection
plus 10% of the incremental cost.
(ii) The rate additives to be assessed on subscribers
in the metropolitan exchange for which EAS has been requested are
to recover revenues determined by the following formula: net lost
toll multiplied by percent outbound toll, and multiplied by the estimated
EAS take rate. The terms in the formula are defined as follows:
(I) net lost toll - lost toll revenue calculated according
to paragraph (4)(B) of this subsection less the revenue recovered
through the EAS rate additive identified in clause (i) of this subparagraph;
(II) percent outbound toll - this factor is calculated
by dividing toll minutes of use originating in the metropolitan exchange
and terminating in the petitioning exchanges by the total number of
toll minutes of use between the metropolitan exchange and each petitioning
exchange; and
(III) estimated EAS take rate - the estimated number
of EAS subscribers in the petitioning exchanges divided by the total
number of subscribers in each petitioning exchange.
(B) Service connection charges will be applicable.
(C) A non-recurring charge to defray the direct incremental
costs of the demand analyses identified in paragraph (4)(A)(iii) of
this subsection must be charged to subscribers who order the service
within 12 months from the time it is first offered. The non-recurring
charge must not exceed $5.00 per access line.
(D) The EAS rate additive to be used in each affected
exchange must meet the following standards.
(i) No increase in rates must be incurred by the subscribers
of non-benefiting exchanges, that is, by subscribers whose calling
scopes are not affected by the requested EAS service.
(ii) If the petitioning exchange demonstrated a unilateral
but not a bilateral community of interest through the requirements
of paragraph (2)(C)(ii) of this subsection, the EAS arrangements must
be priced using those rate increments designed to recover the added
costs for each route, plus the toll revenue effect, if reasonably
substantiated. The total increment chargeable to subscribers within
an exchange must be the sum of the increments of all new EAS routes
established for that exchange.
(iii) If the petitioning exchange demonstrated a bilateral
community of interest through the requirements of paragraph (2)(C)(i)
of this subsection and requested that the costs be borne on a bilateral
basis, the additional cost for the new EAS route must be divided between
the two participating exchanges according to the ratio of calling
volumes between the two exchanges.
(iv) In establishing a flat rate EAS increment, all
classes of customer access line rates within each exchange must be
increased by equal percentages.
(6) Subscription threshold.
(A) A threshold demand level must be established by
the commission's order in the docketed proceeding prior to the design
or construction of facilities for the service. A reasonable pre-subscription
process must then be undertaken to determine the likely demand level.
If the likely demand level equals or exceeds the threshold demand
level, then EAS must be provided in accordance with the commission's
order. If the threshold demand level is not met, the affected utility
is not required to provide the EAS approved by the commission.
(B) The cost of pre-subscription must be divided between
the utility and the petitioners. The petitioners must pay for the
printing of bill inserts and ballots and the utility must insert them
in bills free of charge. In the alternative, upon the agreement of
the parties, the utility must provide, free of charge, and under protective
order, the mailing labels of the subscribers in the petitioning exchange,
and the petitioners must pay the cost of printing and mailing the
bill inserts and ballots.
(7) Notice.
(A) Notice of the filing of an EAS application must
be provided to all subscribers within each petitioning exchange, by
publication for two consecutive weeks in a newspaper of general circulation
in the area. Notice must also be given to individual subscribers either
through inserts in customer bills, or through a separate mailing to
each subscriber. The notice must state: the project number, the nature
of the request, and the commission's mailing address and telephone
number to contact in the event an individual wishes to protest or
intervene. The commission must also publish notice in the Texas Register.
(B) Written notice containing the information described
above must be provided to each governing official of all incorporated
areas within the affected exchanges and each county commission, or
each board of directors or trustees of a community association representing
any unincorporated areas within the affected exchanges.
(C) The cost of notice must be borne by the petitioners.
(8) Joint filings.
(A) EAS agreements. The commission may approve agreements
for EAS or EAS substitute services filed jointly by the representatives
of petitioning exchanges and the affected utility so long as the agreements
are in accordance with subparagraph (C)(i) - (x) of this paragraph.
Notwithstanding any other provisions of this paragraph, if more than
one political subdivision is affected by a proposed optional calling
plan under PURA §55.023, the agreement of each political subdivision
is not required.
(B) Multiple exchange common calling plans. Joint filing
agreements for EAS or EAS substitute services among three or more
exchanges must be permitted in accordance with subparagraph (C)(i)
- (x) of this paragraph.
(C) Standards for joint filings. Joint filings must
be permitted subject to the following:
(i) The parties to joint filings must include the name
of each utility which provides service in the affected exchanges and
one duly appointed representative for each affected exchange. Each
exchange representative must be designated jointly by the governing
officials of all incorporated areas within the affected exchange and
each county commission representing any unincorporated areas within
the affected exchange.
(ii) Joint filings are exempt from the traffic requirements
contained in paragraph (2) of this subsection.
(iii) Joint filings may include rate proposals which
are flat rate, usage sensitive, block rates, or other pricing mechanisms.
If usage-sensitive rates are proposed, joint applicants must include
the commission staff in their negotiations.
(iv) Joint filings may propose either one-way or two-way
calling.
(v) Joint filings may propose either optional or non-optional
calling.
(vi) Joint filings must specify all non-recurring and
recurring rate additives to be paid by the various classes and grades
of service in the affected exchanges.
(vii) Joint filings must demonstrate that the proposed
rate additives:
(I) are in the public interest, and in the case of
non-optional joint filings which include flat rate additives, the
filing must demonstrate that more than 50% of the total subscribers
who will experience a rate change are in favor of this joint filing
at the proposed rates; and
Cont'd... |
