[Federal Register Volume 60, Number 78 (Monday, April 24, 1995)]
[Rules and Regulations]
[Pages 20051-20052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10027]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 61

[CC Docket No. 93-179, FCC 95-133]


Price Cap Rules for Local Exchange Carriers

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This action is taken to incorporate explicitly the ``add-
back'' adjustment into the local exchange carrier (LEC) price cap 
rules. The explicit add-back rule will first be applied when the LECs 
file their 1995 access tariffs. It is intended that the explicit add-
back rule will ensure that [[Page 20052]] the LEC price cap plan 
operates as the Commission intended when it adopted the LEC price cap 
plan.

EFFECTIVE DATE: May 24, 1995.

FOR FURTHER INFORMATION CONTACT:
Joanne F. Wall, (202) 418-1550.

SUPPLEMENTARY INFORMATION: On March 30, 1995, the Commission adopted a 
Report and Order in CC Docket No. 93-179 amending the Commission's LEC 
price cap rules. This order makes explicit the requirement that LECs 
must exclude the effects of sharing and low-end adjustments relating to 
the prior year before computing the earnings levels that determine 
required sharing or permitted low-end adjustments for the current year. 
The Commission found that this requirement, known as the ``add-back 
adjustment'' rule, is essential to ensure that the sharing and low-end 
adjustments of the LEC price cap plan achieve their intended purpose.
    The full text of this item is available for inspection and copying 
during normal business hours in the FCC Reference Center (Room 239) of 
the Federal Communications Commission, 1919 M Street, NW., Washington, 
DC 20554. The complete text of this decision may be purchased from the 
Commission's duplicating contractor, International Transcription 
Service, Inc., 2100 M Street, NW., Suite 140, Washington, DC 20036, 
(202) 857-3800.

List of Subjects in 47 CFR Part 61

    Communications common carriers, Reporting and recordkeeping 
requirements, Telegraph, Telephone.

Federal Communications Commission.
William F. Caton,
Acting Secretary.

    Part 61 of Title 47 of the Code of Federal Regulations is amended 
as follows:

PART 61--TARIFFS

    1. The authority citation continues to read as follows:

    Authority: Secs. 1, 4(i), 4(j), 201-205, and 403 of the 
Communications Act of 1934, as amended; 47 U.S.C. 151, 154(i), 
154(j), 201-205, and 403.

    2. Section 61.3(e) is amended by adding a last sentence to read as 
follows:


Sec. 61.3  Definitions.

* * * * *
    (e) * * * Base year or base period earnings shall not include 
amounts associated with exogenous adjustments to the PCI for the 
sharing or lower formula adjustment mechanisms.
* * * * *
[FR Doc. 95-10027 Filed 4-21-95; 8:45 am]
BILLING CODE 6712-01-M