[Federal Register Volume 62, Number 209 (Wednesday, October 29, 1997)]
[Rules and Regulations]
[Pages 56120-56121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28544]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 69

[CC Docket Nos. 96-262, 94-1, 91-213; FCC No. 97-368]


Access Charge Reform; Price Cap Performance Review for Local 
Exchange Carriers

AGENCY: Federal Communications Commission.

ACTION: Final rule; petition for waiver.

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SUMMARY: On October 8, 1997, the Commission adopted a Memorandum 
Opinion and Order in this proceeding granting a petition for waiver 
filed by the National Exchange Carrier Association, Inc. (NECA). In its 
petition, NECA sought an order waiving Sec. 69.105(b)(2)-(3) for NECA's 
pool, so as to allow NECA to reflect revised long term support formula 
amounts in its carrier common line (CCL) tariff rates effective January 
1, 1998. The Commission granted the waiver on condition that NECA 
compute the CCL charge in the manner prescribed by the Commission.

EFFECTIVE DATE: November 28, 1997.

FOR FURTHER INFORMATION CONTACT: Richard Lerner, Attorney, Common 
Carrier Bureau, Competitive Pricing Division, (202) 418-1530.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Memorandum Opinion and Order adopted October 8, 1997, and released 
October 9, 1997. The full text of this Memorandum Opinion and Order is 
available for inspection and copying during normal business hours in 
the FCC Reference Center (Room 239), 1919 M St., NW., Washington, DC. 
The complete text also may be obtained through the World Wide Web, at 
http://www.fcc.gov/Bureaus/Common__Carrier/Orders/fcc.97368.wp, or may 
be purchased from the Commission's copy contractor, International 
Transcription Service, Inc., (202) 857-3800, 1231 20th Street, NW, 
Washington, DC 20036.

Paperwork Reduction Act

     N/A. This Memorandum Opinion and Order does not require an 
information collection.

[[Page 56121]]

Synopsis of Memorandum Opinion and Order

    1. The National Exchange Carrier Association, Inc. (NECA) asserts 
in its reconsideration petition that the Commission should revise on 
reconsideration the rule provisions governing calculation of NECA 
carrier common line (CCL) rates, without waiting for the conclusion of 
a separate proceeding on access charge reform for rate-of-return LECs. 
In the alternative, NECA requests that the Commission issue an order 
waiving Sec. 69.105(b)(2)-(3) for NECA's pool, so as to allow NECA to 
reflect revised long term support (LTS) formula amounts in its CCL 
tariff rates effective January 1, 1998. No party opposed or supported 
NECA's petition for reconsideration or waiver of the rule. We have 
decided to waive the specified rule provisions at this time, and make 
appropriate rule revisions in the separate proceeding.
    2. Section 69.105(b) currently sets the NECA CCL tariff at the 
average of price-cap LECs' CCL charges. Prior to January 1, 1998, LTS 
is a variable amount, based on the difference between the revenues 
earned from charging a nationwide average CCL rate and the NECA pool 
CCL revenue requirement. In the Universal Service Order, we substituted 
federal universal service support payments for previously-received 
recovery from the interstate access charge system through LTS. Federal-
State Joint Board on Universal Service, Report and Order, CC Docket No. 
96-45, 62 FR 32862 (June 17, 1997) (Universal Service Order). The rule 
revisions in the First Report and Order removed LTS amounts from price 
cap LEC CCL calculations, but postponed making conforming revisions in 
Sec. 69.105(b) to the CCL rate calculation for NECA tariff 
participants. Access Charge Reform, CC Docket No. 96-262, First Report 
and Order, 62 FR 31040 (June 6, 1997).
    3. Section 1.3 of our rules empowers the Commission to grant 
waivers of its rules if good cause is shown. In this situation, NECA 
must demonstrate that special circumstances justify a departure from 
the general rule and that such a deviation will serve the public 
interest. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164 (D.C. 
Cir. 1990); WAIT Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969). We 
conclude that NECA has demonstrated that continued application of 
Sec. 69.105(b)(2)-(3) would be contrary to the public interest in these 
circumstances. As we stated in the Universal Service Order, the 
``elimination of price-cap (incumbent LECs') LTS obligations will allow 
their CCL charges to fall, but there is no corresponding reason for a 
reduction in the NECA CCL tariff. Yet under our current rules, the NECA 
CCL charge would fall simply because of our regulatory changes to 
price-cap (incumbent LECs') LTS payment obligations. We must therefore 
establish a new method to set the NECA CCL tariff.''
    4. Because changes in the recovery of LTS amounts and price-cap 
carrier CCL rate computations as adopted in the First Report and Order 
and Universal Service Order are scheduled to become effective on 
January 1, 1998, grant of the waiver will allow NECA to conform its 
rates to decisions reached in the Universal Service Order by reflecting 
revised LTS formula amounts in its CCL tariff rates effective January 
1, 1998. We therefore waive Sec. 69.105(b)(2)-(3) for the calculation 
of NECA's CCL pool rate that will become effective January 1, 1998, on 
the condition that NECA must compute the Carrier Common Line charge as 
follows:
    (a) From the NECA pool aggregate Carrier Common Line revenue 
requirement amount, subtract: (1) Aggregate End User Common Line 
charges; (2) aggregate Special Access Surcharges; and (3) the portion 
of per-line support that NECA CCL pool participants receive, in the 
aggregate, pursuant to 47 CFR 54.303.
    (b) The premium originating Carrier Common Line charge must be one 
cent per minute, except as described herein at paragraph (d), and
    (c) The premium terminating Carrier Common Line charge must be 
computed by subtracting the projected revenues generated by the 
originating Carrier Common Line charges (both premium and non-premium) 
from the number calculated in paragraph (a), and dividing the remainder 
by the sum of the projected premium terminating minutes and a number 
equal to 0.45 multiplied by the projected non-premium terminating 
minutes, except as described herein at paragraph (d).
    (d) If the calculations described in paragraph (c) result in a per 
minute charge on premium terminating minutes that is less than one 
cent, both the originating and terminating premium charges for the NECA 
CCL pool participants must be computed by dividing the number 
calculated pursuant to paragraph (a) by the sum of the premium minutes 
and a number equal to 0.45 multiplied by the non-premium minutes for 
the NECA CCL pool participants.
    This NECA CCL charge calculation will reflect that now the CCL 
charge, rather than LTS, is a residual amount.
    Accordingly, it is ordered, pursuant to 47 U.S.C. 154(i) and 47 CFR 
1.3, that NECA's request for waiver of Sec. 69.105(b)(2)-(3) of the 
Commissions rules, 47 CFR part 69.105(b)(2)-(3) is granted subject to 
the limitations and conditions described in this document.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 97-28544 Filed 10-28-97; 8:45 am]
BILLING CODE 6712-01-P