**DA 01-2163**

September 17, 2001

**Initiation of Cost Review Proceeding for Residential and Single-Line
Business Subscriber Line Charge (SLC) Caps**

**CC Docket Nos. 96-262, 94-1**

**[Pleading Cycle Established]{.underline}**

**COST SUBMISSIONS DUE: October 17, 2001**

**COMMENTS DUE: November 14, 2001**

**REPLY COMMENTS DUE: November 28, 2001**

On May 31, 2000, the Commission released an order that adopted an
integrated interstate access reform and universal service proposal put
forth by the members of the Coalition for Affordable Local and Long
Distance Service (CALLS). *See Access Charge Reform, Price Cap
Performance Review for Local Exchange Carriers, Low-Volume Long-Distance
Users, Federal-State Joint Board on Universal Service*, Sixth Report and
Order in CC Docket Nos. 96-262 and 94-1, Report and Order in CC Docket
No. 99-249, Eleventh Report and Order in CC Docket No. 96-45, 15 FCC Rcd
12962 (2000) (*CALLS Order*), *aff'd in part and remanded in part on
other grounds sub nom. Texas Office of Pub. Util. Counsel v. FCC*, No.
00-60434, 2001 WL 1042228 (5^th^ Cir. Sept. 10, 2001). In that order,
the Commission raised the cap for the primary residential and
single-line business subscriber line charge (SLC) to \$4.35 on July 1,
2000, and to \$5.00 on July 1, 2001. Further scheduled increases were
also set forth over the next two years, not to begin until the July 1,
2002 annual access tariff filings, and subject to the following
Commission review in regard to the primary residential and single-line
business SLC:

> \[W\]e shall review any increases to residential and single-line
> business SLC caps above \$5.00 to verify that any such increases are
> appropriate and reflect higher costs where they are to be applied. We
> will initiate and complete a cost review proceeding prior to any
> scheduled increases above this cap taking effect to determine the
> appropriate SLC cap. For this proceeding, the price cap \[local
> exchange carriers (LECs)\] have agreed to provide, and we will
> examine, forward-looking cost information associated with the
> provision of retail voice grade access to the public switched
> telephone network. We will address in that proceeding whether an
> increase in the SLC cap above \$5.00 is warranted and, if not, whether
> a decrease in common line charges is warranted.

*See CALLS Order*, 15 FCC Rcd at 12994, para. 83. We now initiate the
proceeding described at paragraph 83 of the *CALLS Order*. We direct
price cap LECs to submit the cost information described in that
paragraph, and invite interested parties to comment on the cost
submissions.

This proceeding shall be treated as a "permit-but-disclose" proceeding
in accordance with the Commission's *ex parte* rules. *See* 47 C.F.R. §§
1.1200 and 1.1206. Persons making oral *ex parte* presentations are
reminded that memoranda summarizing the presentations must contain
summaries of the substance of the presentations and not merely a listing
of the subjects discussed. More than a one or two sentence description
of the views and arguments presented is generally required. *See* 47
C.F.R. § 1.1206(b). Other rules pertaining to oral and written *ex
parte* presentations in permit-but-disclose proceedings are set forth in
section 1.1206(b) of the Commission's rules, 47 C.F.R. § 1.1206(b).

Price cap LECs shall file their cost information no later than **October
17, 2001**. Interested parties may file comments no later than
**November 14, 2001**. Reply comments may be filed no later than
**November 28, 2001**. When filing cost information and comments, please
reference **CC Docket Nos. 96-262 and 94-1**.

An original and four copies of all cost information, comments and reply
comments must be filed with the Office of the Secretary, Federal
Communications Commission, 445 12^th^ Street, S.W., Room TW-A225,
Washington, D.C. 20554. In addition, one copy of each submission must be
filed with Qualex International, the Commission's duplicating
contractor, at its office at Portals II, 445 12^th^ Street, S.W., Room
CY-B402, Washington, D.C. 20554, and one copy with the Chief,
Competitive Pricing Division, 445 12^th^ Street, S.W., Room 5-A225,
Washington, D.C. 20554.

For further information, contact Jennifer McKee, Competitive Pricing
Division, Common Carrier Bureau, (202) 418-1530.

**- FCC -**