**Before the**

**FEDERAL COMMUNICATIONS COMMISSION**

**Washington, D.C. 20554**

**DA 99-896**

In the Matter of )

Material to be Filed in Support of )

1999 Annual Access Tariff Filings )

**TARIFF REVIEW PLANS**

Adopted: May 13, 1999; Released: May 13, 1999

By the Chief, Competitive Pricing Division:

**I. INTRODUCTION**

1\. We set forth herein the Tariff Review Plan (TRP) that incumbent
local exchange carriers (ILECs) should file to support the annual
revisions to the rates in their interstate access service tariffs
scheduled to become effective on July 1, 1999. Pursuant to the *LEC
Streamlined Tariff Filing Report and Order*,[^1] price cap ILECs are
required to file a TRP to revise the price cap indices. The completion
of the TRPs appended to this document will partially fulfill the
requirements established in Sections 61.38, 61.39, 61.41 through 61.49,
and 61.50 of the Commission's Rules.[^2] The TRPs display basic data on
rate development in a consistent manner, thereby facilitating review of
the ILEC rate revisions by the Commission and interested parties.[^3]
The annual TRPs have served this purpose effectively in past years.

2\. Based on the Bureau\'s experience in reviewing the TRPs in prior
years, and the submission by the price cap ILECs of the short form TRP
on April 2, together with comments and replies by interested parties,
Section II details modifications to the TRP. The rate-of-return TRP
contained in Appendix C is discussed in Section III. Guidelines for
ILECs filing under Sections 61.39 and 61.50 are also discussed in
Section III. Appendix A describes filing procedures applicable to all
ILECs that will file a 1999 annual access tariff filing.

**II. PRICE CAP TARIFF REVIEW PLAN**

3\. In the *LEC Price Cap Order*,[^4] the Commission adopted price cap
regulation for ILECs, effective January 1, 1991. Companies that
currently file interstate access tariffs pursuant to the price cap rules
include the regional Bell Operating Companies,[^5] Aliant Communications
Corporation (Aliant), Cincinnati Bell Telephone Company, Citizens
Telecommunications Companies (Citizens), GTE Telephone Companies (GTE),
Frontier Corporation (Frontier), Southern New England Telephone Company
(SNET), and Sprint Local Telephone Companies (Sprint LTCs). Any other
company may elect price cap regulation as part of its 1999 annual
filing. All companies that file pursuant to price cap regulation in the
1999 annual filing should file the price cap TRPs outlined below and
contained in Appendix B. Companies subject to rate of return regulation
should file the TRP contained in Appendix C.[^6]

**A. Modifications to the TRP**

4\. In the July 1, 1999 TRP, we have adopted certain needed adjustments
in presentation. In the Exogenous costs worksheet, long term support has
been replaced by Sale of Exchanges. The CAP-1 form is now nine pages
long with the addition of a new page six.

**B. TRP Charts and Workpapers**

**1. Chart IND-1**

6\. IND-1 displays price cap indices (PCIs), actual price indices
(APIs), service band indices (SBIs), and upper SBI limits. It is
unchanged from the version in the 1998 TRP. To assist in verifying the
historical indices reported in IND-1, ILECs should continue to file a
workpaper that identifies transmittals in which the current index levels
became effective.

**2. Chart CAP-1**

7\. CAP-1 displays the calculation of the maximum carrier-common-line
(CCL) rate according to the formula in the Rules.[^7] The July 1999 TRP
includes some interim calculations for the Subscriber Line Charge rate
and PICC rates. These calculations are to prevent the PICC rate from
becoming negative. Specifically, page six of the CAP-1 form is a new
addition that is used to test whether target reductions to the MLB are
needed. Carriers are urged to follow carefully the calculations in Lines
1945 and 1972-1975.[^8]

**3. Chart PCI-1**

8\. PCI-1 displays the calculation of the PCIs for the price cap
baskets,[^9] and includes the following data: (1) the Gross Domestic
Product Price Index (GDP-PI) measuring inflation; (2) the productivity
offset (X-Factor);[^10] (3) the change in access charge expense (Y)
imputed for ILEC toll services, which affects the Interexchange Basket
PCI; (4) the exogenous cost change (Z); (5) the base-year (calendar-year
1998) revenue (R) for each basket; (6) the weighting factor (w) used in
computing the PCIs; and (7) the growth in minutes per line (g).

**4. Chart SUM-1**

9\. This is a summary chart displaying the revenues in baskets and
categories. It displays the base-year (calendar year 1998) service
demand multiplied by (1) current rates and (2) proposed rates. SUM-1 is
used to calculate the difference in revenues using base-year demand,
under current and proposed rates.

**5. Chart EXG-1**

10\. This chart displays the exogenous cost changes to the PCIs
attributable to any changes in (1) Sale of Exchanges (2) FCC regulatory
fees; (3) excess deferred taxes; (4) amortization of investment tax
credits; (5) a sharing or low-end adjustment that was reported in the
1997 annual filing and is now being removed in the 1998 annual
filing;[^11] (6) any revision to that sharing or low-end adjustment; (7)
any new sharing or low-end adjustment; (8) fees associated with
Telecommunications Relay Service; (9) Universal Service Fund; and (10)
other exogenous cost changes the ILECs may file.

11\. As noted above, EXG-1 reports any low-end adjustment that was
reported in the 1998 annual filing and is now being removed, and any
revision to that low-end adjustment. EXG-1 also reports any current
low-end adjustment, and this amount must reflect earnings in calendar
year 1998. ILECs are required to provide workpapers showing the full
calculation of the low-end adjustment, and cite the transmittals that
reported low-end adjustments in previous annual filings.

12\. Price Cap ILECs are required to submit their Form 492A for calendar
years 1997 and 1998 as part of their TRP support material, and use the
footnote page provided on Form 492A to explain the development of
composite tax rates. As in the 1998 annual filing, the earnings of
services excluded from price cap treatment should be removed based on
the assumption the excluded services earned the same interstate rate of
return as price cap services.

**6. Chart RTE-1**

13\. This chart displays information used to compute the APIs, SBIs, and
upper SBI limits. It displays calendar year 1998 demand, current rates,
proposed rates, and revenues computed by multiplying the 1998 demand by
current and proposed rates. Chart RTE-1 enables us to verify the
accuracy of \"R,\" the revenue variable in the PCI formula that equals
base period (1998) demand multiplied by rates. Demand and price data are
reported in the aggregate under the primary rate elements of each
category. The level of aggregation in RTE-1 allows rapid, consistent
verification of index calculations across all companies.

14\. In their 1998 annual filings, ILECs provided a chart that gave
complete rate element detail, *i.e.*, demand, existing rates, proposed
rates. ILECs should again file this chart on a 3.5-inch computer disk
with their 1999 annual access tariff filing We leave unspecified the
exact format of the rate detail charts because each price cap ILEC has a
different number of rate elements. For each rate element, however, ILECs
should display the rate element name, base period demand, current rates,
and proposed rates. ILECs may also include a rate identifying code. The
revenue amounts for baskets and categories should be totaled, to assist
in verifying the agreement between this chart and the revenue amounts in
RTE-1. The variation in the number of rate elements among ILECs prevents
us from specifying the row numbers, but each row of this chart should
correspond to only one rate element. The rows should reflect the basket
and service category sequence used in RTE-1. Price cap ILECs should also
include with their support materials a separate list of new services
that are being incorporated into the APIs in this annual filing for the
first time. This list should contain all services introduced as new
services under the price cap rules during calendar year 1998, and the
basket and service category to which the new service is assigned.

**C. Miscellaneous**

15\. In addition to the above specifications, price cap ILECs should
include with their support materials a list of all currently applicable
Part 69 waivers. The list should include the following information: (1)
a citation to the Commission or Bureau Order granting the waiver; (2) a
brief description of the waiver, including whether any new rate elements
were authorized; and (3) the basket and, if applicable, service category
of each rate element authorized by the waiver.

16\. If ILECs file to revise their TRP after April 2, the TRP should be
refiled in its entirety, rather than just the parts of the TRP that are
changed. The latest TRP filed becomes the TRP of record. Other parts of
the original filing, *e.g.*, portions of the explanations, description
and justification, and workpapers, may be omitted if unchanged by the
revision.

**III. TARIFF REVIEW PLAN FOR NON-PRICE CAP COMPANIES**

17\. ILECs not electing price caps must file pursuant to either (1)
Section 61.38 (rate-of-return);[^12] 2) Section 61.39 (small telephone
rules);[^13] or 3) Section 61.50 (optional incentive regulation).[^14]
ILECs that file under Section 61.38 should complete the TRP contained in
Appendix C. As in the past, there is no TRP for companies filing
pursuant to either Section 61.39, the small company rules, or Section
61.50, optional incentive regulation. Requirements for carriers electing
to file under the small company rules are described below in Subsection
B, as are the requirements for optional incentive regulation ILECs.

**A. Rate-of-Return Regulation**

18\. Companies filing under rate-of-return regulation are subject in
part to the filing requirements adopted in the *Regulatory Reform
Order*,[^15] which established a biennial filing cycle.[^16] The Rules
require that rates be targeted to earn the authorized rate of
return.[^17]

19\. The rate-of-return TRP contained in Appendix C has been framed to
place the smallest possible regulatory burden on ILECs while allowing us
to evaluate the proposed rates. The 1999 TRP is the same as the 1998 TRP
except for needed adjustments in presentation. We require rate-of-return
ILECs to file their computer file containing the TRP in a LOTUS
Version-3 file. A 3.5-inch disk containing the TRP file will be sent
directly to all ILECs. This TRP file is similar to the format of the
price cap TRP file that has proven successful.

20\. Rate-of-return ILECs are required to file one year of historical
data and one year of forecast data. All proposed rates must be based
upon the forecast data. The time frame of the historical data, termed
the past year cost-of-service (PYCOS) period, and of the forecast data,
termed the test year, are determined pursuant to Section 61.38 of the
Rules. The PYCOS period is calendar year 1998 and the test year runs
from July 1, 1999 through June 30, 2000 for the 1999 annual filings.

**B. Small Telephone Companies**

21\. ILECs that qualify as small telephone companies may elect to file
pursuant to the small telephone company rules under Section 61.39,[^18]
for either their traffic sensitive rates, common line rates, or both.
Companies filing under the small company rules must file access tariffs
for their traffic sensitive and common line rates in odd-numbered
years,[^19] and are thus required to make a 1999 annual filing.

22\. ILECs filing under the small company rules need not submit
supporting material at the time of the access tariff filing. Companies,
however, should be prepared to submit the data promptly upon reasonable
request by the Commission or interested parties.[^20]

23\. In contrast to rate-of-return regulation, the small company rules
rely on historical costs. For its first annual filing, an ILEC is
required to propose rates based on the cost of service and demand for
the most recent twelve months. For subsequent annual filings, an ILEC
bases rates on the cost and demand for the two years since the last
annual filing.

**C. Optional Incentive Regulation**

24\. Any non-price cap company may elect optional incentive regulation
for either its traffic sensitive rates only, or for both its traffic
sensitive and common line rates. In contrast to rate-of-return
regulation, optional incentive regulation relies more heavily on
historical costs, establishes broader earnings bands, and affords the
ILECs greater pricing flexibility.

25\. We have not adopted a TRP for companies filing under optional
incentive regulation. For any carrier planning to file in 1999 under
optional incentive regulation, the Competitive Pricing Division will
provide guidance regarding specific support material.

26\. For its first annual filing, an ILEC must base its rates on the
cost of service and related demand for the most recent twelve months.
For subsequent annual filings, an ILEC is required to base its rates on
the cost of service and demand for the two-year period since the last
annual filing.

**IV. GUIDELINES APPLICABLE TO NECA**

27\. We have not adopted a TRP for NECA, although NECA should refer to
the rate-of-return TRP for guidance on the level of Section 61.38
support material to provide in its annual filing. As in the past, NECA
should provide: (1) earnings data using the Chart ERN-1 format; and (2)
average schedule company settlements using the Chart COS-1 format.

**V. GENERAL INSTRUCTIONS**

28\. The following general instructions apply to all ILECs except as
noted. Except for Section V.B., *infra*, the following general
instructions also apply to NECA. These instructions pertain to the TRPs
and other documentation filed in support of access charges.

**A. Certification**

29\. The filing of inaccurate or incomplete data may seriously detract
from the ability of the Commission and interested parties to evaluate
the revised rates. The ILECs and NECA must certify that their historical
and forecast data are accurate by including a signed statement that the
support data are true, correct, and complete to the best of the
carrier\'s knowledge. This certification will apply to all data
submitted in support of revised rates, including the data that are filed
in the TRP. The text of the certification is the same as that adopted in
the *1987 Waiver Order*.[^21] The certification should be displayed as
the last page in the binder containing each company\'s TRP. ILECs are
also under a legal obligation to correct any inaccurate or incomplete
data discovered in the TRP or other support data.

**B. Geographic Aggregation**

30\. Except for the RTE and ERN charts, all TRP information should be
displayed at the same level of geographic aggregation as the ILEC\'s
proposed rates. RTE and ERN carriers should be consistent with the
current level of geographic aggregation. In addition, if the tariff
rates are based on data from a number of study areas or operating
companies, levels of aggregation associated with each study area (state)
and operating company should be provided by carriers (except for Charts
RTE, ERN, and REV).

**C. Assistance from United States Telephone Association (USTA)**

31\. As in past years, to assist the Commission and interested parties
in evaluating the national impact of revised rates, we request that USTA
provide us with aggregated TRP data for all price cap ILECs, except for
those charts or portions of charts for which aggregation is
inappropriate.

**D. Waivers**

32\. If carriers find that they are unable to provide data in the TRP,
they may file applications for waiver. These waiver applications should
demonstrate good cause for reporting a different or lower level of
detail than specified and should indicate how the carrier intends to
report complete TRP data in the future. Each carrier requesting any
waiver of Commission Rules should include all such requests in a single
application. Carriers should not delay undertaking development of data
for the 1999 TRP in anticipation that waiver requests will be granted.

**E. Technical Instructions**

33\. Consistent with TRP filings in previous years, all companies that
file a TRP should provide the data in a computer disk file, as detailed
in the Attachments.

**F. Compliance with the Paperwork Reduction Act**

34\. The TRPs are subject to approval by the Office of Management and
Budget (OMB) in accordance with the provisions of the Paperwork
Reduction Act, 44 U.S.C., §§ 3506 et seq. On September 23, 1996, OMB
approved the TRPs through September 30, 1999 (OMB Control No.
3060-0400). In compliance with the Paperwork Reduction Act, we estimate
burden‑hours and place the Office of Management and Budget form number
and date on the formats included in the Appendices. We note that these
TRPs were developed after informal discussions with ILECs and other
industry representatives and after evaluation of comments filed in
response to our *1999 TRP Public Notice*. We minimize the regulatory
burden on the ILECs by deleting obsolete sections of the TRP that have
not proved useful, and carriers need not file historical data that have
been filed in previous years. Overall, the burden this year is unchanged
from that imposed by the 1998 annual access tariff charge filings, and
smaller ILECs continue to report significantly fewer data than larger
companies.

**G. Procedural Matters**

35\. This document will be sent directly to all carriers that will file
their own annual access tariffs. A copy of the document and all
attachments will be available for inspection at the Public Reference
Room, Federal Communications Commission, CY-C404. The Commission will
publish the text of this document in the FCC Record. Copies of
Appendices can be obtained through International Transcription Service,
Inc. (ITS), the Commission\'s contractor for public records duplication.
Further details regarding the procedures applicable to the 1999 annual
access tariff filings are provided in the Appendices.

FEDERAL COMMUNICATIONS COMMISSION

Richard D. Lerner

Deputy Chief, Competitive Pricing Division

Common Carrier Bureau

**Appendix A**

**Filing Procedures for**

**Companies filing TRPs**

**on June 16, 1999**

1\. The TRPs\--for ILECs with any rate increases\--contained in Appendix
B for price cap carriers, and Appendix C for rate of return companies
should be filed on June 16, 1999. If an ILEC has all rate decreases,
TRPs should be filed on June 24, 1999. All correspondence and comments
in connection with these filings should be designated \"1999 PRICE CAP
REVISIONS.\"

**A**. **TRP Filing Requirements**

2\. In addition to filing their TRPs electronically through the
Electronic Tariff Filing System, (ETFS) ILECs should also file their
TRPs on diskette. ILECs should consult the distribution table at the end
of this Appendix A, as to where to distribute their TRP copies. ILECs
that maintain a Washington, D.C. office should have their Washington,
D.C. office file their diskettes. ILECs that do not have a Washington,
D.C. office are to send their diskettes via Overnight Courier, addressed
to Raj Kannan, Competitive Pricing Division, Common Carrier Bureau 5 th
floor, 445 12 th Street S.W., Washington, D.C. 20554.

3\. To facilitate identification and cataloging of the price cap index
revisions filing, carriers should note that:

**a.** A 3.5-inch high-density disk containing a Lotus Release-3 TRP
file will be sent directly to ILECs. ILECs using more recent versions of
Lotus should nevertheless save the TRP in a Lotus Release-3 file; *i.e.*
a WK3 file. A computer virus check will be conducted before the disk is
sent, and the Division urges the ILECs to re-check the disk before
filing. The computer file on the disk should be named COSAAN99 where
\"COSA\" is the 4-character company study area code.

**b**. ILECs should also file their TRPs using the Electronic Tariff
Filing System on June 16 or 24, 1999 depending on the nature of the
filing. Carriers experiencing any difficulty using ETFS can contact Todd
Mitchell of the Competitive Pricing Division at 202-418-1555.

**B. Comments and Replies**

C.  

4\. Comments on the annual access TRPs may be filed on or before June
23, 1999\--for filings made on June 16, 1999\--and June 28, 1999 for
filings made on June 24, 1999. Parties should reference the general
designation shown in paragraph 1 and specific ILECs if applicable. These
comments should specify that they concern the 1999 PCI revisions in
general or those of specific ILECs. Comments filed in paper format
should be filed with the Commission\'s Secretary, Magalie Roman Salas,
Office of the Secretary, Federal Communications Commission, 445 -12th
Street S.W. TW - A325, Washington D.C. 20054. Another copy should be
submitted to the Chief, Competitive Pricing Division, 5th Floor, Federal
Communications Commission, 445 - 12th Street S.W., Washington D.C.
20054. A copy should also be submitted to Raj Kannan, Competitive
Pricing Division, Common Carrier Bureau, Federal Communications
Commission, Fifth Floor, 445 - 12th Street S.W., Washington D.C. 20554.
Finally, a copy should also be provided to the International
Transcription Service (ITS), the Commission\'s duplicating contractor.

5\. Petitioners may also file their comments electronically using the
Electronic Tariff Filing System (ETFS). Comments and reply comments
filed electronically do not have to be filed with the Secretary's Office
and distributed in the same manner as those filed in paper format.

6\. Reply comments should be submitted to the parties listed above; in
addition, each petitioner should be served with a copy on, or before
June 28, 1999, for petitions filed on June 23, 1999, and June 29, 1999
for petitions filed on June 28, 1999.

7\. Parties are instructed to provide contact persons and fax numbers in
their filings. ILECs are directed to serve their complete tariff
filings, including accompanying cost studies, upon all persons who filed
comments in the January 1, 1999 access tariff filing proceedings.
Parties filing comments and replies electronically are reminded that
they are still required to serve copies in accordance with Sections
47-1.773(a)(4) and (b)(3) of the Commission's rules, and as stated
herein.

**C. Public Information**

8\. Copies of these filings and related correspondence will be available
for inspection in the Public Reference Room, located at Room CY-C404,
Federal Communications Commission, 445 -- 12 th Street S.W. Copies may
also be obtained from ITS, 1231 20th Street N.W. Washington D.C. 20036,
(202/857-3800). For more information, contact Raj Kannan at
202/418-1540, Common Carrier Bureau, Competitive Pricing Division.

**Filing Distribution List For**

**1999 Annual** **Access Tariff Charges**

**Number of Copies**

Trans. TRP

**Location** [Letter]{.underline} [Disk]{.underline}

Public Reference Copy

445- 12 th Street S.W.

Room TW A325 1 1

ITS

445-12 th Street S.W.

Room TW A325 1 1

Raj Kannan

Competitive Pricing Div.

445- 12 th Street S.W.

Room TW A325 1 2

**Note:** Please attach a copy of the transmittal letter to your TRP
diskette so that we may identify the carrier submitting the TRP easily.

Please label each packet with the name of the person or organization
that will be receiving the TRP before filing in Room TW A325. Since
carriers are no longer able to deliver these packages directly to each
recipient, it is extremely important that they be properly labeled.

**Appendix B**

**Price Cap**

**Tariff Review Plan**

**Approved by OMB**

**3060-0400**

**Expires September 30, 1999**

See below for information regarding public

burden estimate.

NOTICE: These Tariff Review Plans (TRPs) contain summary support
material that certain local exchange carriers (LECs) should file to
support their annual access charge tariff filings in partial fulfillment
of Sections 61.38 and 61.44 through 61.49 of the Commission\'s Rules.
The TRPs specify basic information in a consistent format and are
essential components of the Commission\'s access tariff review process.
The information in the TRPs is used by the FCC to evaluate rates. Public
reporting burden for this collection of information is estimated to
average 61 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other
aspect of this collection of information, including suggestions for
reducing the burden, to the Federal Communications Commission, Office of
Managing Director, Washington, DC 20554, and to the Office of Management
and Budget, Office of Information and Regulatory Affairs, Washington, DC
20503.

**Appendix C**

**Rate-of-Return**

**Tariff Review Plan**

**to Accompany Tariff Filings**

**Approved by OMB**

**3060-0400**

**Expires September 30, 1999**

See below for information regarding public

burden estimate.

NOTICE: These Tariff Review Plans (TRPs) contain summary support
material that certain local exchange carriers (LECs) should file to
support their annual access charge tariff filings in partial fulfillment
of Sections 61.38 and 61.44 through 61.49 of the Commission\'s Rules.
The TRPs specify basic information in a consistent format and are
essential components of the Commission\'s access tariff review process.
The information in the TRPs is used by the FCC to evaluate rates. Public
reporting burden for this collection of information is estimated to
average 61 hours per response, including the time for reviewing
instructions, searching existing data sources, gathering and maintaining
the data needed, and completing and reviewing the collection of
information. Send comments regarding this burden estimate or any other
aspect of this collection of information, including suggestions for
reducing the burden, to the Federal Communications Commission, Office of
Managing Director, Washington, DC 20554, and to the Office of Management
and Budget, Office of Information and Regulatory Affairs, Washington, DC
20503.

[^1]:     ^?^ Implementation of Section 402(b)(1)(A) of the
    Telecommunications Act of 1996, Report and Order, CC Docket No.
    96-187, FCC 97-23 (rel. Jan 31, 1997) (*LEC Streamlined Tariff
    Filing Report and Order*).

[^2]:     ^?^ 47 C.F.R. §§ 61.38, 61.39, 61.4-61.49, and 61.50.

[^3]: ^?^ TRP formats for the annual filings are developed for the
    specific circumstances of the calendar year in which the revised
    rates will become effective. We refer to the TRPs discussed in this
    document as the 1999 TRPs.

[^4]: ^?^ Policy and Rules Concerning Rates for Dominant Carriers, CC
    Docket No. 87-313, Order, 5 FCC Rcd 6786 (1990) (*LEC Price Cap
    Order*), *recon.*, 6 FCC Rcd 2637 (1991), *further recon.*, 6 FCC
    Rcd 4524 (1991), 7 FCC Rcd 5235 (1992), *aff\'d sub nom. National
    Rural Telecom Ass\'n v. FCC*, 988 F.2d 174 (D.C. Cir. 1993).

[^5]: ^?^ These holding companies include Ameritech Operating Company
    (Ameritech), Bell Atlantic Telephone Companies (Bell Atlantic),
    BellSouth Telecommunications, Inc. (BellSouth), Nevada Bell and
    Pacific Bell (Pacific Telesis), New York Telephone Company and NYNEX
    Telephone Companies (NYNEX), Southwestern Bell Communications (SBC),
    and U S West Communications and United Inter-Mountain Telephone
    Company (U S West).

[^6]: ^?^ All data in the price cap TRP, except rates, should be
    reported in full units of measure with zero decimal places.
    Individual rates should be reported to the number of decimal places
    reflected in the company\'s tariffs. In certain cases, the rates
    reported on Chart RTE-1 may be aggregate rates, *i.e.*, an average
    of several rates. In those cases, rates should be displayed to six
    decimal places. For the CAP-1 form, LECs should keep intermediate
    calculations to at least six decimal places (no rounding up) except
    where the calculated rate is itself of higher precision

[^7]: ^?^ 47 C.F.R. § 61.46(d).

[^8]: ^?^ On May 11, 1999, the United States Telephone Association filed
    a petition for waiver of Sections 69.152(b) and 69.153(c)(1) of the
    Commission's rules for calculating the SLC and PICC. The attached
    TRP illustrates USTA's proposal which is intended to prevent
    negative rate levels for multiline business PICCs.

[^9]: ^?^ 47 C.F.R. § 61.45.

[^10]: ^?^ The X-Factor is 6.5 percent for all filing price cap LECs.

[^11]: ^?^ The amount of sharing or low-end adjustment removed from the
    PCIs and reported in the 1999 TRPs will not match the original
    amount reported in the 1997 TRP. This is because the variable \"R\",
    base year revenues, in the PCI formula has changed. The amount of
    sharing removed should differ from the original amount by the
    percentage change in \"R\" from the 1997 to the 1999 annual filing.

[^12]: ^?^ 47 C.F.R. § 61.38.

[^13]: ^?^ 47 C.F.R. § 61.39.

[^14]: ^?^ 47 C.F.R. § 61.50.

[^15]: ^?^ Regulatory Reform for Local Exchange Carriers Subject to Rate
    of Return Regulation, 8 FCC Rcd 4545 (1993) (*Regulatory Reform
    Order*), recon. pending.

[^16]: ^?^ *Regulatory Reform Order* at para. 97.

[^17]: ^?^ 47 C.F.R. §§ 69.2(b) and (z).

[^18]: ^?^ Some companies that, on their own, would qualify as small
    telephone companies are not so classified either because 1) they are
    affiliated with companies that are NECA Subset 2 companies or 2) the
    combined study areas of a company and its affiliates are greater
    than 50,000 access lines.

[^19]: ^25^ 47 C.F.R. § 69.3(f).

[^20]: ^?^ 47 C.F.R. § 61.39(b).

[^21]: ^?^ Annual 1987 Access Tariff Filings, Petitions for Waivers of
    Filing Requirements, Mimeo No. 6945 (rel. Sept. 16, 1986) (*1987
    Waiver Order*).