Electronic Tariff Filing System (ETFS), 48629-48641 [2010-19580]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 75, Number 154 (Wednesday, August 11, 2010)]
[Proposed Rules]
[Pages 48629-48641]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-19580]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 61 and 64

[WC Docket No. 10-141; FCC 10-127]


Electronic Tariff Filing System (ETFS)

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) seeks comment on extending the electronic tariff filing 
requirement for incumbent local exchange carriers to all carriers that 
file tariffs and related documents. Additionally, the Commission seeks 
comment on the appropriate time frame for implementing this proposed 
requirement. The Commission also seeks comment on the proposal that the 
Chief of the Wireline Competition Bureau administer the adoption of 
this extended electronic filing requirement. Also, the Commission seeks 
comment on proposed rule changes to implement mandatory electronic 
tariff filing.

DATES: Comments are due on or before September 10, 2010 and reply 
comments are due on or before September 27, 2010. Written comments on 
the Paperwork Reduction Act proposed information collection 
requirements must be submitted by the public, Office of Management and 
Budget (OMB), and other interested parties on or before October 12, 
2010. If you anticipate that you will be submitting comments, but find 
it difficult to do so within the period of time allowed by this notice, 
you should advise the contact listed below as soon as possible.

ADDRESSES: You may submit comments, identified by WC Docket No. 10-141 
by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Federal Communications Commission's Web site: https://fjallfoss.fcc.gov/ecfs2/. Follow the instructions for submitting 
comments.
     People with Disabilities: Contact the FCC to request 
reasonable accommodations (accessible format documents, sign language 
interpreters, CART, etc.) by e-mail: FCC504@fcc.gov or phone: (202) 
418-0530 or TTY: (202) 418-0432.
     In addition to filing comments with the Secretary, a copy 
of any comments on the Paperwork Reduction Act information collection 
requirements contained herein should be submitted to the Federal 
Communications Commission via e-mail to PRA@fcc.gov and to Nicholas A. 
Fraser, Office of Management and Budget, via e-mail to Nicholas_A._Fraser@omb.eop.gov or via fax at 202-395-5167.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Pamela Arluk at (202) 418-1520 or 
Lynne Hewitt Engledow at (202) 418-1520, Wireline Competition Bureau, 
Pricing Policy Division. For additional information concerning the 
Paperwork Reduction Act information collection requirements contained 
in this document, send an e-mail to PRA@fcc.gov and to Nicholas A. 
Fraser, Office of Management and Budget, Nicholas_A._Fraser@omb.eop.gov or via fax at 202-395-5167.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Proposed Rulemaking (NPRM) in WC Docket No. 10-141, FCC 10-
127, adopted July 15, 2010, and released July 15, 2010. The complete 
text of this document is available for inspection and copying during 
normal business hours in the FCC Reference Information Center, Portals 
II, 445 12th Street, SW., Room CY-A257, Washington, DC 20554. The 
document may also be purchased from the Commission's duplicating 
contractor, Best Copy and Printing, Inc., 445 12th Street, SW., Room 
CY-B402, Washington, DC 20554, telephone (800) 378-3160 or (202) 863-
2893, facsimile (202) 863-2898, or via the Internet at https://www.bcpiweb.com. It is also available on the Commission's Web site at 
https://www.fcc.gov.
    Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's rules, 
47 CFR 1.415, 1.419, interested parties may file comments and reply 
comments on or before the dates indicated on the first page of this 
document. Comments may be filed using: (1) The Commission's Electronic 
Comment Filing System (ECFS), (2) the Federal Government's eRulemaking 
Portal, or (3) by filing paper copies. See Electronic Filing of 
Documents in Rulemaking Proceedings, 63 FR 24121, May 1, 1998.
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: https://www.fcc.gov/cgb/ecfs/ 
or the Federal eRulemaking Portal: https://www.regulations.gov. Filers 
should follow the instructions provided on the Web site for submitting 
comments.
    [cir] For ECFS filers, if multiple docket or rulemaking numbers 
appear in the caption of this proceeding, filers must transmit one 
electronic copy of the comments for each docket or rulemaking number 
referenced in the caption. In completing the transmittal screen, filers 
should include their full name, U.S. Postal Service mailing address, 
and the applicable docket or rulemaking number. Parties may also submit 
an electronic comment by Internet e-mail. To get filing instructions, 
filers should send an e-mail to ecfs@fcc.gov, and include the following 
words in the body of the message, ``get form.'' A sample form and 
directions will be sent in response.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing. If more than one 
docket or rulemaking number appears in the caption of this proceeding, 
filers must submit two additional copies for each additional docket or 
rulemaking number.
    Filings can be sent by hand or messenger delivery, by commercial 
overnight courier, or by first-class or

[[Page 48630]]

overnight U.S. Postal Service mail (although we continue to experience 
delays in receiving U.S. Postal Service mail). All filings must be 
addressed to the Commission's Secretary, Office of the Secretary, 
Federal Communications Commission.
    [cir] All hand-delivered or messenger-delivered paper filings for 
the Commission's Secretary must be delivered to FCC Headquarters at 445 
12th Street, SW., Room TW-A325, Washington, DC 20554. All hand 
deliveries must be held together with rubber bands or fasteners. Any 
envelopes must be disposed of before entering the building. The filing 
hours are Monday through Friday, 8 a.m. to 7 p.m.
    [cir] Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743.
    [cir] U.S. Postal Service first-class, Express, and Priority mail 
should be addressed to 445 12th Street, SW., Washington, DC 20554.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (Braille, large print, electronic 
files, audio format), send an e-mail to fcc504@fcc.gov or call the 
Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice) or 
(202) 418-0432 (TTY). Contact the FCC to request reasonable 
accommodations for filing comments (accessible format documents, sign 
language interpreters, CART, etc.) by e-mail: fcc504@fcc.gov; phone: 
(202) 418-0530 or (202) 418-0432 (TTY).
    In addition, one copy of each pleading must be sent to each of the 
following:
     [cir] The Commission's duplicating contractor, Best Copy and 
Printing, Inc, 445 12th Street, SW., Room CY-B402, Washington, DC 
20554; Web site: https://www.bcpiweb.com; phone: 1-800-378-3160; and
     [cir] Pamela Arluk, Pricing Policy Division, Wireline Competition 
Bureau, 445 12th Street, SW., Room 5-A131, Washington, DC 20554; e-
mail: pamela.arluk@fcc.gov or telephone number (202) 418-1520; and
     [cir] Lynne Hewitt Engledow, Pricing Policy Division, Wireline 
Competition Bureau, 445 12th Street, SW., Room 5-A361, Washington, DC 
20554; e-mail: lynne.engledow@fcc.gov or telephone number (202) 418-
1520.
    Filings and comments are also available for public inspection and 
copying during regular business hours at the FCC Reference Information 
Center, Portals II, 445 12th Street, SW., Room CY-A257, Washington, DC 
20554. Copies may also be purchased from the Commission's duplicating 
contractor, BCPI, 445 12th Street, SW., Room CY-B402, Washington, DC 
20554. Customers may contact BCPI through its Web site: https://www.bcpiweb.com, by e-mail at fcc@bcpiweb.com, by telephone at (202) 
488-5300 or (800) 378-3160 (voice), (202) 488-5562 (TTY), or by 
facsimile at (202) 488-5563.
    Comments and reply comments must include a short and concise 
summary of the substantive arguments raised in the pleading. Comments 
and reply comments must also comply with Sec.  1.49 and all other 
applicable sections of the Commission's rules. We direct all interested 
parties to include the name of the filing party and the date of the 
filing on each page of their comments and reply comments. All parties 
are encouraged to utilize a table of contents, regardless of the length 
of their submission. We also strongly encourage parties to track the 
organization set forth in the NPRM in order to facilitate our internal 
review process.

Initial Paperwork Reduction Act of 1995 Analysis

    This document contains proposed information collection 
requirements. The Commission, as part of its continuing effort to 
reduce paperwork burdens, invites the general public and the Office of 
Management and Budget (OMB) to comment on the information collection 
requirements contained in this document, as required by the Paperwork 
Reduction Act of 1995, Public Law 104-13. Public and agency comments 
are due October 12, 2010.
    Comments on the proposed information collection requirements should 
address: (a) Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information shall have practical 
utility; (b) the accuracy of the Commission's burden estimates; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on the respondents, including the use of automated 
collection techniques or other forms of information technology. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002, 
Public Law 107-198, see 44 U.S.C. 3506(c)(4), we seek specific comment 
on how we might further reduce the information collection burden for 
small business concerns with fewer than 25 employees.
    OMB Control Number: 3060-XXXX.
    Title: Electronic Tariff Filing System (ETFS).
    Form Number(s): N/A.
    Type of Review: New information collection.
    Respondents: Business or other for-profit and not-for-profit 
institutions.
    Number of Respondents and responses: Estimated 1,500 respondents 
and 1,500 responses.
    Estimated Time per Response: 1 hour (average time per response).
    Obligation to Respond: Required to obtain or retain benefits.
    Frequency of Response: Annual and on occasion reporting 
requirements.
    Total Annual Burden: 1,500 hours.
    Total Annual Cost: $150,000.
    Privacy Act Impact Assessment: No impact.
    Nature of Extent of Confidentiality: The Commission is not 
requesting that the respondents submit confidential information to the 
FCC. Respondents may, however, request confidential treatment for 
information they believe to be confidential under 47 CFR 0.459 of the 
Commission's rules.
    Needs and Uses: The Commission is requesting review and approval of 
a new information collection requiring all tariff filing entities to 
use the Federal Communications Commission's Electronic Tariff Filing 
System (ETFS) to file their tariffs and related documents.
    Currently, incumbent local exchange carriers (LECs) file their 
tariffs and associated documents electronically, using ETFS. ETFS has 
improved the usefulness of tariff filings for both filers and the 
public and made the entire tariff filing process more transparent. By 
contrast, competitive LECs currently do not file tariffs and associated 
documents electronically. In the Notice of Proposed Rulemaking (NPRM), 
in WC Docket No. 10-141, we initiate a rulemaking proceeding to 
consider extending the existing electronic filing requirement to all 
tariff filing entities. In particular, to create a more open, 
transparent and efficient flow of information to the public, we 
consider whether the benefits of using the ETFS for incumbent LEC 
tariff filings would also be obtained if all tariff filers filed 
electronically.
    Additionally, the Commission seeks comment on the appropriate time 
frame for implementing this proposed requirement. Relevant rule 
modifications are also proposed in the NPRM. The Commission also seeks 
comment on the proposal that the Chief of the Wireline Competition 
Bureau administer the adoption of this extended electronic filing 
requirement. We believe such action will benefit the

[[Page 48631]]

public and carriers by creating a central system providing online 
access to all carrier tariffs and related documents filed with the 
Commission.

I. Introduction

    1. Currently, incumbent local exchange carriers (LECs) file their 
tariffs and associated documents electronically, using the Electronic 
Tariff Filing System (ETFS). ETFS has improved the usefulness of tariff 
filings for both filers and the public and made the entire tariff 
filing process more transparent. By contrast, competitive LECs do not 
file tariffs and associated documents electronically. In this NPRM, we 
initiate a rulemaking proceeding to consider extending the existing 
electronic filing requirement to all tariff filing entities, consistent 
with the public interest. In particular, to create a more open, 
transparent and efficient flow of information to the public, we 
consider whether the benefits of using the ETFS for incumbent LEC 
tariff filings would also be obtained if all tariff filers filed 
electronically. As discussed below, we propose rule modifications that 
expand the electronic tariff filing requirement to all tariff filers. 
We believe such action will benefit the public and carriers by creating 
a central system providing online access to all carrier tariffs filed 
with the Commission.

II. Background

    2. In adopting the Telecommunications Act of 1996 (1996 Act), 
Congress sought to establish ``a pro-competitive, de-regulatory 
national policy framework'' for the telecommunications industry. 
Consistent with that goal, section 402(b)(1)(A)(iii) of the 1996 Act 
added section 204(a)(3) to the Communications Act of 1934, as amended, 
providing for streamlined tariff filings by local exchange carriers. On 
September 6, 1996, in an effort to meet the goals of the 1996 Act, the 
Commission released the Tariff Streamlining NPRM, 61 FR 49,987, 
September 24, 1996, proposing measures to implement the tariff 
streamlining requirements of section 204(a)(3). Among other 
suggestions, the Commission proposed requiring LECs to file tariffs 
electronically. The Commission also tentatively concluded that 
electronic tariff filing would reduce burdens on carriers and the 
Commission, facilitate access to tariffs and associated documents by 
the public, make all tariff information available to state and other 
federal regulators, and facilitate the compilation of aggregate carrier 
data for industry analysis purposes.
    3. The Commission began implementing the electronic filing of 
tariffs on January 31, 1997, when it released the Streamlined Tariff 
Order. The Streamlined Tariff Order established rules implementing the 
1996 Act's tariff streamlining provisions and also required LECs to 
file tariffs and associated documents electronically in accordance with 
requirements established by the Common Carrier Bureau (Bureau). On 
November 17, 1997, the Bureau made this electronic system, known as the 
Electronic Tariff Filing System, available for voluntary filing by 
incumbent LECs. The Bureau also announced that the use of ETFS would 
become mandatory for all incumbent LECs in 1998.
    4. On May 28, 1998, in the ETFS Order, 63 FR 35,539, June 30, 1998, 
the Bureau established July 1, 1998, as the date after which incumbent 
LECs would be required to use ETFS to file tariffs and associated 
documents. The ETFS Order also revised the Commission's rules to 
establish other requirements necessary to implement the Commission's 
electronic tariff filing program. Specifically, the revised rules 
required incumbent LECs to electronically file complete tariff Base 
Documents, tariff revisions, applications for special permission, 
supporting information, and Tariff Review Plans (TRPs) via ETFS. 
Although the Tariff Streamlining NPRM proposed mandatory electronic 
filing by all local exchange carriers, the Bureau limited the scope of 
the ETFS Order to incumbent LECs. The Commission deferred consideration 
of establishing mandatory electronic filing for non-incumbent LECs 
until the conclusion of a proceeding considering the mandatory 
detariffing of interstate long distance services.
    5. On October 31, 1996, the Commission released the Detariffing 
Order, which ordered mandatory detariffing of most interstate, 
domestic, interexchange services of nondominant interexchange carriers 
(IXCs). In deciding to detariff these services, the Commission found 
that tariffs ``are not necessary to ensure that the rates, practices, 
and classifications of nondominant interexchange carriers for 
interstate, domestic, interexchange services are just and reasonable 
and not unjustly or unreasonably discriminatory'' and are not necessary 
for the protection of consumers. The Commission, however, permitted 
some exceptions to mandatory detariffing, in which nondominant carriers 
could still file tariffs.
    6. In addition, nondominant carriers continue to file tariffs for 
other services that were unaffected by the Detariffing Order. For 
example, domestic operator service providers (OSPs) must file 
informational tariffs pursuant to the Communications Act and the 
Commission's rules. Moreover, subject to certain exceptions and 
limitations, competitive LECs are permitted to tariff interstate access 
charges if the charges are no higher than the rate charged for such 
services by the competing incumbent LEC. In contrast to tariff filings 
by incumbent LECs, tariff filings by nondominant carriers are currently 
submitted via diskette, CD-ROM and/or paper, which are cumbersome and 
costly for the carrier, the Commission, and make it difficult for 
interested parties to review the documents.

III. Discussion

    7. With this document we initiate a rulemaking proceeding to 
examine whether mandatory electronic filing of tariffs and associated 
documents should be extended to all tariff filing entities. As 
discussed below, we propose rules that extend the electronic filing 
requirement to all tariff filers. We believe this proposed action is in 
the public interest.
    8. We solicit comment on our proposal that mandatory electronic 
tariff filing should be required for all tariff filers. Specifically, 
we propose that all tariff filers must follow the Commission's rules 
for electronic tariff filing and file via ETFS their tariffs, tariff 
revisions, base documents, and associated documents, including 
applications for special permission. In addition, we expect that all 
carriers would have the capabilities to file tariffs electronically and 
that such a requirement would not impose an undue burden on small or 
rural carriers. We invite interested parties to comment and propose 
alternative means to accomplish these goals.
    9. We believe that electronic filing of all tariffs and associated 
documents would facilitate the administration of those tariffs. We also 
believe that the expected benefits of electronic tariff filing by 
incumbent LECs outlined in the Tariff Streamlining NPRM will also be 
realized by requiring electronic filing of all tariffs and associated 
documents. These anticipated benefits include: Reducing burdens on 
carriers and the Commission; facilitating access to tariffs and 
associated documents by the public; increasing the ease in which 
interested parties can review all tariffs; making all tariff 
information available to state and other federal regulators; and 
facilitating the compilation of aggregate carrier data for industry 
analysis purposes. We believe that including all tariffs on ETFS

[[Page 48632]]

will improve public access to these filings and will greatly enhance 
the transparency and efficiency of the tariff filing process. We invite 
interested parties to comment on these anticipated benefits. 
Additionally, we propose that international dominant carriers filing 
pursuant to section 61.28 of the Commission's rules should be subject 
to electronic filing. We seek comment on this proposal.
    10. Requirements applicable to carriers filing tariffs 
electronically are different from those that apply to carriers filing 
tariffs via diskette, CD ROM and/or paper. By requiring electronic 
filing of all tariffs, the same rules will apply to all tariff filers, 
which will help ensure that interested parties have notice of the type 
of filing being made and will be able to more easily review those 
filings. In that regard, we invite interested parties to comment on 
expanding the applicability of sections 61.14, 61.15, and 61.16 of the 
Commission's rules in that manner.
    11. Section 61.15 also requires the inclusion of a filer's FCC 
Registration Number (FRN) with each electronic tariff filing. We 
propose that consistent with this rule, each letter of transmittal must 
contain the filing carrier's FRN. If more than one carrier participates 
in the tariff, the FRN for the filing carrier and the FRNs for each 
individual carrier that participates in the tariff should be included 
in the letter of transmittal. This will ensure that it is clear to 
Commission staff and the public which carriers are participating in the 
tariff. We also propose that the use of consecutive transmittal numbers 
for letters of transmittal pursuant to the proposed revision of section 
61.15 facilitates the Commission's ability to electronically match the 
mandatory tariff filing fee with the appropriate carrier's filing. We 
seek comment on these proposals and appropriate alternatives.
    12. We also invite specific comment on the use of transmittal 
numbers if mandatory electronic filing is required; for carriers 
converting from non-electronic filing, should the transmittal numbers 
continue sequentially from the last non-electronic tariff or associated 
document transmission or should transmittal numbers start anew at the 
number one, with the implementation of mandatory electronic filing? We 
also invite comment on the numbering of special permission applications 
pursuant to section 61.17. If mandatory electronic filing is required, 
should the first special permission application filed electronically 
for a carrier start with number one or should the special permission 
application continue to be numbered sequentially from the last non-
electronically filed special permission request?
    13. Currently, sections 61.52 and 61.54 of our rules, which require 
specific formatting and composition of tariffs, apply only to dominant 
carriers. Because we will be requiring all carriers to file tariffs 
electronically, we believe that it may be beneficial for the public and 
Commission staff to have consistent formatting of all tariffs. 
Accordingly, we propose that all carriers should be required to comply 
with the formatting and composition requirements of our rules. This 
would ensure that all tariffs have a basic uniformity that will 
facilitate an ease of review for customers and other entities examining 
such tariffs. However, we recognize that this modification may create a 
burden for nondominant carriers that have not been subject to such 
requirements in the past. Accordingly, we seek comment on this proposal 
and invite specific comment on whether requiring all carriers to comply 
with sections 61.52 and 61.54 would place an undue burden on carriers 
that have not been required to comply with such requirements in the 
past. Moreover, we propose amending the notice requirements of section 
61.58 to add a provision that nondominant carriers who are eligible to 
file pursuant to the streamlining requirements of section 204(a)(3), 
but choose not to, must file tariffs on at least one days' notice. This 
addition to section 61.58 would permit us to remove section 61.23 as 
duplicative, and instead require all carriers to comply with the 
general notice requirements of section 61.58. We seek comment on this 
proposed modification to our rules and any appropriate alternatives.
    14. A number of nondominant carriers operate under a ``doing 
business as'' or d/b/a name. Such a practice can be confusing to 
Commission staff and parties searching for tariff documents. Section 
61.54 of the Commission's rules requires the ``exact name of the 
carrier'' be used to ``identify the carrier issuing the tariff 
publication.'' We propose to clarify that this rule requires carriers 
to use their legal names in tariffs and associated documents when 
filing via ETFS. If carriers use a d/b/a name in addition to their 
legal name, we propose that the d/b/a name be noted on the Title page 
of the tariff other than with the ``exact name of the carrier.'' We 
seek comment on this proposal and any alternative means by which to 
address such confusion.
    15. We note that ETFS has been available for use since November 17, 
1997 and its use has been mandatory for incumbent LECs since July 1, 
1998. Given that ETFS has been used by the public for more than a 
decade, we seek comment on the amount of time parties believe all 
tariff filers will need before they can comply with the mandatory 
tariff filing requirement. Specifically, we seek comment on how long 
after an order requiring electronic filing for all tariff filers should 
filers be required to use ETFS for all tariff and associated document 
filing. We propose that all tariff filers must use ETFS for all tariff 
and associated document filing 120 days after a final order in this 
docket implementing such a requirement (or summary thereof) is 
published in the Federal Register. We also propose that affected 
carriers must file their currently effective tariffs on ETFS no later 
than 120 days after a final order in this docket (or summary thereof) 
is published in the Federal Register, which will be the carrier's Base 
Document. Once the initial Base Documents are filed on ETFS, all future 
tariff revisions would also be required to be filed electronically on 
ETFS. After that 120-day period, we propose that the electronic version 
of the currently effective tariffs on ETFS will replace all prior 
tariffs, and those previously filed will be considered null and void. 
Similarly, we propose that tariffs previously filed with the Commission 
that are not replaced by an electronic version on ETFS will also be 
considered null and void. After that 120-day period, we also propose 
that all tariff filers will no longer be permitted to file diskette, 
CD-ROM and/or paper copies of tariffs and associated documents that 
otherwise would be filed with the Secretary, the Chief of the Pricing 
Policy Division of the Wireline Competition Bureau, and the 
Commission's commercial contractor. We seek comment on these proposals 
and any suggested alternatives.
    16. We propose that the Chief of the Wireline Competition Bureau 
should be responsible for administering the adoption of electronic 
tariff filing requirements for all tariff filers. This is consistent 
with the Streamlined Tariff Order. We seek comment on this proposal. We 
also seek comment on the proposed rule modifications in Appendix A and 
we believe that these proposed requirements are in the public interest 
for the reasons stated herein.
    17. For consistency and administrative clarity we propose changes 
to additional sections in part 61 of the Commission's rules as shown in 
Appendix A of the NPRM. For example, we propose consolidating the 
requirements for letters of transmittal and cover letters in section 
61.15 of the Commission's rules, and therefore,

[[Page 48633]]

propose to delete sections 61.21 and 61.33 of our rules because those 
rules would be duplicative of section 61.15. We believe that these 
proposed changes are necessary to accomplish the numerous goals 
anticipated with the implementation of mandatory electronic tariff 
filing for all tariff filing entities. We seek comment on these 
proposed changes. Finally, we invite comment on other considerations 
and alternatives interested parties believe relevant to extending the 
electronic tariff filing requirement to all tariff filing entities.

IV. Procedural Matters

A. Initial Regulatory Flexibility Analysis

    18. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA) see 5 U.S.C. 603, the Commission has prepared the present 
Initial Regulatory Flexibility Analysis (IRFA) of the possible 
significant economic impact on small entities that might result from 
this NPRM. Written public comments are requested on this IRFA. Comments 
must be identified as responses to the IRFA and must be filed by the 
deadlines for comments on the NPRM provided above. The Commission will 
send a copy of the Notice, including this IRFA, to the Chief Counsel 
for Advocacy of the Small Business Administration. In addition, the 
Notice and IRFA (or summaries thereof) will be published in the Federal 
Register.
1. Need for, and Objectives of, the Proposed Rules
    19. Today, the Commission adopts a Notice of Proposed Rulemaking 
(NPRM) to consider extending the requirement to file tariff and 
associated documents electronically via the Electronic Tariff Filing 
System to all tariff filing entities. In the NPRM the Commission seeks 
comment on the proposal to extend this requirement to all tariff filing 
entities and on the expected benefits of doing such. Additionally, the 
Commission seeks comment on the appropriate time frame for implementing 
this proposed requirement. The Commission also seeks comment on the 
proposal that the Chief of the Wireline Competition Bureau administer 
the adoption of this extended electronic filing requirement.
2. Legal Basis
    20. The legal basis for any action that may be taken pursuant to 
the NPRM is contained in sections 1, 4(i), 201-205, and 226(h)(1)(A) of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 201-
205, and 226(h)(1)(A).
3. Description and Estimate of the Number of Small Entities To Which 
the Proposed Rules May Apply
    21. The RFA directs agencies to provide a description of, and where 
feasible, an estimate of the number of small entities that may be 
affected by the proposed rules, if adopted. The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small-business concern'' under the Small Business 
Act. A ``small-business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration.
    22. Competitive Local Exchange Carriers (competitive LECs), 
Competitive Access Providers (CAPs), Shared-Tenant Service Providers, 
and Other Local Service Providers. Neither the Commission nor the SBA 
has developed a small business size standard specifically for these 
service providers. The appropriate size standard under SBA rules is for 
the category Wired Telecommunications Carriers. Under that size 
standard, such a business is small if it has 1,500 or fewer employees. 
According to Commission data, 1,005 carriers reported that they were 
engaged in the provision of either competitive local exchange services 
or competitive access provider services. Of these 1,005 carriers, an 
estimated 918 have 1,500 or fewer employees and 87 have more than 1,500 
employees. In addition, 16 carriers have reported that they are Shared-
Tenant Service Providers, and all 16 are estimated to have 1,500 or 
fewer employees. In addition, 89 carriers have reported that they are 
Other Local Service Providers. Of the 89, all 89 have 1,500 or fewer 
employees and none has more than 1,500 employees. Consequently, the 
Commission estimates that most providers of competitive local exchange 
service, competitive access providers, Shared-Tenant Service Providers, 
and Other Local Service Providers are small entities.
    23. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to interexchange services. The closest applicable size 
standard under SBA rules is for Wired Telecommunications Carriers. 
Under that size standard, such a business is small if it has 1,500 or 
fewer employees. According to Commission data, 300 companies reported 
that their primary telecommunications service activity was the 
provision of interexchange services. Of these 300 companies, an 
estimated 268 have 1,500 or fewer employees and 32 have more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
interexchange service providers are small entities.
    24. Operator Service Providers (OSPs). Neither the Commission nor 
the SBA has developed a small business size standard specifically for 
operator service providers. The appropriate size standard under SBA 
rules is for the category Wired Telecommunications Carriers. Under that 
size standard, such a business is small if it has 1,500 or fewer 
employees. According to Commission data, 28 carriers have reported that 
they are engaged in the provision of operator services. Of these, an 
estimated 27 have 1,500 or fewer employees and one has more than 1,500 
employees. Consequently, the Commission estimates that the majority of 
OSPs are small entities.
4. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements
    25. Should the Commission decide to expand mandatory electronic 
filing to competitive LECs, the associated rules potentially would 
modify the reporting and recordkeeping requirements of these entities. 
The NPRM proposed that tariff filers must follow the Commission's rules 
for electronic tariff filing and file via ETFS their tariffs, tariff 
revisions, base documents and associated documents, including 
applications for special permission. Moreover, in order to provide 
uniformity for tariff filings, the NPRM would propose to extend certain 
procedural requirements to all tariff filing entities, including: 
Specific formatting and composition requirements, the use of FCC 
registration numbers and the use of transmittal numbers. We seek 
comment on the possible burden these requirements would place on small 
entities. Also, we seek comment on whether a special approach toward 
any possible compliance burdens on small entities might be appropriate. 
Entities, especially small businesses, are encouraged to quantify the 
costs and benefits of any reporting requirement that may be established 
in this proceeding.

[[Page 48634]]

5. Steps Taken To Minimize Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered
    26. The RFA requires an agency to describe any significant, 
specifically small business, alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): ``(1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance and 
reporting requirements under the rules for such small entities; (3) the 
use of performance rather than design standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for such small 
entities.''
    27. The NPRM seeks comment from all interested parties. Small 
entities are encouraged to bring to the Commission's attention any 
specific concerns they may have with the proposals outlined in the 
NPRM. The Commission believes that most carriers are familiar with the 
Electronic Tariff Filing System, if not currently using it. As such, 
the Commission believes the burden on small entities will be minimal. 
In addition, to assist tariff filers that have not used ETFS 
previously, including small entity filers, the Commission is seeking 
comment on the amount of time filers will need to transition from paper 
filing to using ETFS.
6. Federal Rules That May Duplicate, Overlap, or Conflict With the 
Proposed Rules
    28. None.

B. Paperwork Reduction Act Analysis

    29. The NPRM contains proposed information collection requirements. 
As part of the continuing effort to reduce paperwork burdens, we invite 
the general public and the OMB to comment on the information 
collections contained in this NPRM, as required by the Paperwork 
Reduction Act of 1995, 44 U.S.C. 3501 et seq. Public and agency 
comments are due at the same time as other comments on this NPRM; OMB 
comments are due 60 days from the date of publication of this NPRM in 
the Federal Register. Comments should address: (1) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (2) the accuracy of the Commission's 
burden estimates; (3) ways to enhance the quality, utility, and clarity 
of the information collected; and (4) ways to minimize the burden of 
the collection of information on the respondents, including the use of 
automated collection techniques or other forms of information 
technology. In addition, pursuant to the Small Business Paperwork 
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), we 
seek specific comment on how we might further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.

C. Ex Parte Presentations

    30. This proceeding shall be treated as a ``permit-but-disclose'' 
proceeding in accordance with the Commission's ex parte rules. 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. Other requirements 
pertaining to oral and written presentations are set forth in Sec.  
1.1206(b) of the Commission's rules.

List of Subjects

47 CFR Part 61

    Communications common carriers, Tariffs, Telecommunications, 
Telephone.

47 CFR Part 64

    Communications common carriers, Tariffs, Telecommunications, 
Telephone.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR parts 61 and 64 as 
follows:

PART 61--TARIFFS

    1. The authority citation for part 61 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, unless otherwise noted.

    2. Section 61.3 is amended by redesignating paragraphs (t) through 
(y) as paragraphs (u) through (z) and by adding paragraph (t) to read 
as follows:


Sec.  61.3  Definitions.

* * * * *
    (t) Incumbent Local Exchange Carrier. ``Incumbent Local Exchange 
Carrier'' or ILEC'' has the same meaning as that term is defined in 47 
U.S.C. 251(h).
* * * * *
    3. Section 61.13 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec.  61.13  Scope.

    (a) This applies to all tariff publications of issuing carriers 
required to file tariff publications electronically, and any tariff 
publication that a carrier chooses to file electronically.
    (b) All issuing carriers that file tariffs are required to file 
tariff publications electronically.
* * * * *
    4. Section 61.14 is amended by revising paragraphs (b) and (e) to 
read as follows:


Sec.  61.14  Method of filing publications.

* * * * *
    (b) In addition, except for issuing carriers filing tariffing fees 
electronically, for all tariff publications requiring fees as set forth 
in part 1, subpart G of this chapter, issuing carriers must submit the 
original of the cover letter (without attachments), FCC Form 159, and 
the appropriate fee to the address set forth in Sec.  1.1105 of this 
chapter.
* * * * *
    (e) Carriers that are required to file publications electronically 
must comply with the format requirements set forth in Sec. Sec.  61.52 
and 61.54.
    5. Section 61.15 is revised to read as follows:


Sec.  61.15  Letters of transmittal and cover letters.

    (a) All tariff publications filed with the Commission 
electronically must be accompanied by a letter of transmittal. All 
letters of transmittal filed with the Commission must be numbered 
consecutively by the issuing carrier beginning with Number 1. All 
letters of transmittal must also:
    (1) Concisely explain the nature and purpose of the filing;
    (2) Specify whether supporting information is required for the new 
tariff or tariff revision, and specify the Commission rule or rules 
governing the supporting information requirements for that filing;
    (3) Contain a statement indicating the date and method of filing of 
the original of the transmittal as required by Sec.  61.14(b);
    (4) Include the FCC Registration Number (FRN) of the carrier(s) on 
whose behalf the cover letter is submitted. See subpart W of part 1 of 
this title.

[[Page 48635]]

    (b) Local exchange carriers filing tariffs electronically pursuant 
to the notice requirements of section 204(a)(3) of the Communications 
Act shall display prominently, in the upper right hand corner of the 
letter of transmittal, a statement that the filing is made pursuant to 
that section and whether the tariff is filed on 7 or 15 days notice.
    (c) Any carrier filing a new or revised tariff made on 15 days' 
notice or less shall include in the letter of transmittal the name, 
room number, street address, telephone number, and facsimile number of 
the individual designated by the filing carrier to receive personal or 
facsimile service of petitions against the filing as required under 
Sec.  1.773(a)(4) of this chapter.
    (d) International carriers must certify that they are authorized 
under Section 214 of the Communications Act of 1934, as amended, to 
provide service, and reference the FCC file number of that 
authorization.
    (e) In addition to the requirements set forth in paragraph (a) of 
this section, any incumbent local exchange carrier choosing to file an 
Access Tariff under Sec.  61.39 must include in the transmittal:
    (1) A summary of the filing's basic rates, terms and conditions;
    (2) A statement concerning whether any prior Commission facility 
authorization necessary to the implementation of the tariff has been 
obtained; and
    (3) A statement that the filing is made pursuant to Sec.  61.39.
    (f) In addition to the requirements set forth in paragraph (a) of 
this section, any price cap local exchange carrier filing a price cap 
tariff must include in the letter of transmittal a statement that the 
filing is made pursuant to Sec.  61.49.
    (g) The letter of transmittal must specifically reference by number 
any special permission necessary to implement the tariff publication. 
Special permission must be granted prior to the filing of the tariff 
publication and may not be requested in the transmittal letter.
    (h)(1) The letter of transmittal must be substantially in the 
following format:

-----------------------------------------------------------------------
(Exact name of carrier in full)

-----------------------------------------------------------------------
(Post Office Address)

-----------------------------------------------------------------------
(Date)

-----------------------------------------------------------------------
Transmittal No.

Secretary, Federal Communications Commission; Washington, DC 20554

Attention: Wireline Competition Bureau

The accompanying tariff (or other publication) issued by ----, and 
bearing FCC No. ----, effective ----, 20 --, is sent to you for 
filing in compliance with the requirements of the Communications Act 
of 1934, as amended. (Here give the additional information 
required.)

-----------------------------------------------------------------------
(Name of issuing officer or agent)

-----------------------------------------------------------------------
(Title)

    (2) A separate letter of transmittal may accompany each 
publication, or the above format may be modified to provide for filing 
as many publications as desired with one transmittal letter.
    (i) All submissions of documents other than a new tariff or 
revisions to an existing tariff, such as Base Documents or Tariff 
Review Plans, must be accompanied by a cover letter that concisely 
explains the nature and purpose of the filing. Publications submitted 
under this paragraph are not required to submit a tariffing fee.
    6. Section 61.16 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec.  61.16  Base documents.

    (a) The Base Document is a complete tariff which incorporates all 
effective revisions, as of the last day of the preceding month. The 
Base Document should be submitted with a cover letter as specified in 
Sec.  61.15(i) and identified as the Monthly Updated Base Document.
    (b) Initially, issuing carriers that currently have tariffs on file 
with the commission must file a Base Document within five days of the 
initiation of mandatory electronic filing.
* * * * *
    7. Section 61.17 is revised to read as follows:


Sec.  61.17  Applications for special permission.

    (a) All issuing carriers that file applications for special 
permission, associated documents, such as transmittal letters, requests 
for special permission, and supporting information, shall file those 
documents electronically.
    (b) Applications for special permission must contain:
    (1) A detailed description of the tariff publication proposed to be 
put into effect;
    (2) A statement citing the specific rules and the grounds on which 
waiver is sought;
    (3) A showing of good cause; and
    (4) The appropriate Illustrative tariff pages the issuing carrier 
wishes to either revise or add as new pages to its tariff.
    (c) An application for special permission must be addressed to 
``Secretary, Federal Communications Commission, Washington, DC 20554.'' 
The Electronic Tariff Filing System will accept filings 24 hours a day, 
seven days a week. The official filing date of a publication received 
by the Electronic Tariff Filing System will be determined by the date 
and time the transmission ends. If the transmission ends after the 
close of a business day, as that term is defined in Sec.  1.4(e)(2) of 
this chapter, the filing will be date and time stamped as of the 
opening of the next business day.
    (d) In addition, except for issuing carriers filing tariffing fees 
electronically, for special permission applications requiring fees as 
set forth in part 1, subpart G of this chapter, issuing carriers must 
submit the original of the application letter (without attachments), 
FCC Form 159, and the appropriate fee to the address set forth in Sec.  
1.1105 of this chapter.
    (e) In addition, if an issuing carrier applies for special 
permission to revise joint tariffs, the application must state that it 
is filed on behalf of all carriers participating in the affected 
service. Applications must be numbered consecutively in a series 
separate from FCC tariff numbers and Letters of Transmittal, bear the 
signature of the officer or agent of the carrier, and be in the 
following format:

Application No.--------------------------------------------------------
(Date)-----------------------------------------------------------------

Secretary
Federal Communications Commission
Washington, DC 20554.

Attention: Wireline Competition Bureau (here provide the statements 
required by section 61.17(b)).

(Exact name of carrier)------------------------------------------------
(Name of officer or agent)---------------------------------------------
(Title of officer or agent)--------------------------------------------

    (f) If approved, the issuing carrier must comply with all terms and 
use all authority specified in the grant. If a carrier elects to use 
less than the authority granted, it must apply to the Commission for 
modification of the original grant. If a carrier elects not to use the 
authority granted within sixty days of its effective date, the original 
grant will be automatically cancelled by the Commission.
    8. Section 61.20 is revised to read as follows:


Sec.  61.20  Method of filing publications.

    (a) All issuing carriers that file tariffs shall file all tariff 
publications and associated documents, such as transmittal letters, 
requests for special permission, and supporting information, 
electronically in accordance with the requirements set forth in Sec.  
61.13 through Sec.  61.17.
    (b) In addition, except for issuing carriers filing tariffing fees

[[Page 48636]]

electronically, for all tariff publications requiring fees as set forth 
in part 1, subpart G of this chapter, issuing carriers must submit the 
original of the cover letter (without attachments), FCC Form 159, and 
the appropriate fee to the address set forth in Sec.  1.1105 of this 
chapter.


Sec. Sec.  61.21 through 61.23  [Removed and Reserved]

    9. Remove and reserve Sec. Sec.  61.21 through 61.23.


Sec. Sec.  61.32 and 61.33  [Removed and Reserved]

    10. Remove and reserve Sec. Sec.  61.32 and 61.33.
    11. Section 61.38 is revised to read as follows:


Sec.  61.38  Supporting information to be submitted with letters of 
transmittal.

    (a) Scope. This section applies to dominant carriers whose gross 
annual revenues exceed $500,000 for the most recent 12 month period of 
operations or are estimated to exceed $500,000 for a representative 12 
month period. Incumbent Local exchange carriers serving 50,000 or fewer 
access lines in a given study area that are described as subset 3 
carriers in Sec.  69.602 of this chapter may submit Access Tariff 
filings for that study area pursuant to either this section or Sec.  
61.39. However, the Commission may require any issuing carrier to 
submit such information as may be necessary for a review of a tariff 
filing. This section (other than the preceding sentence of this 
paragraph) shall not apply to tariff filings proposing rates for 
services identified in Sec.  61.42 (d), (e), and (g).
    (b) Explanation and data supporting either changes or new tariff 
offerings. The material to be submitted for a tariff change which 
affects rates or charges or for a tariff offering a new service, must 
include an explanation of the changed or new matter, the reasons for 
the filing, the basis of ratemaking employed, and economic information 
to support the changed or new matter.
    (1) For a tariff change the issuing carrier must submit the 
following, including complete explanations of the bases for the 
estimates.
    (i) A cost of service study for all elements for the most recent 12 
month period;
    (ii) A study containing a projection of costs for a representative 
12 month period;
    (iii) Estimates of the effect of the changed matter on the traffic 
and revenues from the service to which the changed matter applies, the 
issuing carrier's other service classifications, and the carrier's 
overall traffic and revenues. These estimates must include the 
projected effects on the traffic and revenues for the same 
representative 12 month period used in (b)(1)(ii) of this section.
    (2) For a tariff filing offering a new service, the issuing carrier 
must submit the following, including complete explanations of the bases 
for the estimates.
    (i) A study containing a projection of costs for a representative 
12 month period; and
    (ii) Estimates of the effect of the new matter on the traffic and 
revenues from the service to which the new matter applies, the issuing 
carrier's other service classifications, and the issuing carrier's 
overall traffic and revenues. These estimates must include the 
projected effects on the traffic and revenues for the same 
representative 12 month period used in paragraph (b)(2)(i) of this 
section.
    (3) [Reserved]
    (4) For a tariff that introduces a system of density pricing zones, 
as described in Sec.  69.123 of this chapter, the issuing carrier must, 
before filing its tariff, submit a density pricing zone plan including, 
inter alia, documentation sufficient to establish that the system of 
zones reasonably reflects cost-related characteristics, such as the 
density of total interstate traffic in central offices located in the 
respective zones, and receive approval of its proposed plan.
    (c) Working papers and statistical data. (1) Concurrently with the 
filing of any tariff change or tariff filing for a service not 
previously offered, the issuing carrier must file the working papers 
containing the information underlying the data supplied in response to 
paragraph (b) of this section, and a clear explanation of how the 
working papers relate to that information.
    (2) All statistical studies must be submitted and supported in the 
form prescribed in Sec.  1.363 of this chapter.
    (d) Form and content of additional material to be submitted with 
certain rate increases. In the circumstances set out in paragraphs 
(d)(1) and (2) of this section, the issuing carrier must submit all 
additional cost, marketing and other data underlying the working papers 
to justify a proposed rate increase. The issuing carrier must submit 
this information in suitable form to serve as the carrier's direct case 
in the event the rate increase is set by the Commission for 
investigation.
    (1) Rate increases affecting single services or tariffed items.
    (i) A rate increase in any service or tariffed item which results 
in more than $1 million in additional annual revenues, calculated on 
the basis of existing quantities in service, without regard to the 
percentage increase in such revenues; or
    (ii) A single rate increase in any service or tariffed item, or 
successive rate increases in the same service or tariffed item within a 
12 month period, either of which results in:
    (A) At least a 10 percent increase in annual revenues from that 
service or tariffed item, and
    (B) At least $100,000 in additional annual revenues, both 
calculated on the basis of existing quantities in service.
    (2) Rate increases affecting more than one service or tariffed 
item.
    (i) A general rate increase in more than one service or tariffed 
item occurring at one time, which results in more than $1 million in 
additional revenues calculated on the basis of existing quantities in 
service, without regard to the percentage increase in such revenues; or
    (ii) A general rate increase in more than one service or tariffed 
item occurring at one time, or successive general rate increases in the 
same services or tariffed items occurring within a 12 month period, 
either of which results in:
    (A) At least a 10 percent increase in annual revenues from those 
services or tariffed items, and
    (B) At least $100,000 in additional annual revenues, both 
calculated on the basis of existing quantities in service.
    (e) Submission of explanation and data by connecting carriers. If 
the changed or new matter is being filed by the issuing carrier at the 
request of a connecting carrier, the connecting carrier must provide 
the data required by paragraphs (b) and (c) of this section on the date 
the issuing carrier files the tariff matter with the Commission.
    (f) Copies of explanation and data to customers. Concurrently with 
the filing of any rate for special construction (or special assembly 
equipment and arrangements) developed on the basis of estimated costs, 
the issuing carrier must transmit to the customer a copy of the 
explanation and data required by paragraphs (b) and (c) of this 
section.
    (g) On each page of cost support material submitted pursuant to 
this section, the issuing carrier shall indicate the transmittal number 
under which that page was submitted.
    12. Section 61.39 is revised to read as follows:

[[Page 48637]]

Sec.  61.39  Optional supporting information to be submitted with 
letters of transmittal for Access Tariff filings by incumbent local 
exchange carriers serving 50,000 or fewer access lines in a given study 
area that are described as subset 3 carriers in Sec.  69.602.

    (a) Scope. This section provides for an optional method of filing 
for any incumbent local exchange carrier that is described as subset 3 
carrier in Sec.  69.602 of this chapter, which elects to issue its own 
Access Tariff for a period commencing on or after April 1, 1989, and 
which serves 50,000 or fewer access lines in a study area as determined 
under Sec.  36.611(a)(8) of this chapter. However, the Commission may 
require any issuing carrier to submit such information as may be 
necessary for review of a tariff filing. This section (other than the 
preceding sentence of this paragraph) shall not apply to tariff filings 
of price cap local exchange carriers.
    (b) Explanation and data supporting tariff changes. The material to 
be submitted to either a tariff change or a new tariff which affects 
rates or charges must include an explanation of the filing in the 
transmittal as required by Sec.  61.15. The basis for ratemaking must 
comply with the following requirements. Except as provided in paragraph 
(b)(5) of this section, it is not necessary to submit this supporting 
data at the time of filing. However, the incumbent local exchange 
carrier should be prepared to submit the data promptly upon reasonable 
request by the Commission or interested parties.
    (1) For a tariff change, the incumbent local exchange carrier that 
is a cost schedule carrier must propose Tariff Sensitive rates based on 
the following:
    (i) For the first period, a cost of service study for Traffic 
Sensitive elements for the most recent 12 month period with related 
demand for the same period.
    (ii) For subsequent filings, a cost of service study for Traffic 
Sensitive elements for the total period since the incumbent local 
exchange carrier's last annual filing, with related demand for the same 
period.
    (2) For a tariff change, the incumbent local exchange carrier that 
is an average schedule carrier must propose Traffic Sensitive rates 
based on the following:
    (i) For the first period, the incumbent local exchange carrier's 
most recent annual Traffic Sensitive settlement from the National 
Exchange Carrier Association pool.
    (ii) For subsequent filings, an amount calculated to reflect the 
Traffic Sensitive average schedule pool settlement the carrier would 
have received if the carrier had continued to participate, based upon 
the most recent average schedule formulas approved by the Commission.
    (3) For a tariff change, the incumbent local exchange carrier that 
is a cost schedule carrier must propose Common Line rates based on the 
following:
    (i) For the first biennial filing, the common line revenue 
requirement shall be determined by a cost of service study for the most 
recent 12-month period. Subscriber line charges shall be based on cost 
and demand data for the same period. Carrier common line rates shall be 
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.028


Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.029


And where:

CCL Rev Req = carrier common line revenue requirement for the most 
recent 12-month period;
CCL MOUb = carrier common line minutes of use for the 
most recent 12-month period;
CCL MOU1 = CCL MOUb; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.

    (ii) For subsequent biennial filings, the common line revenue 
requirement shall be determined by a cost of service study for the most 
recent 24-month period. Subscriber line charges shall be based on cost 
and demand data for the same period. Carrier common line rates shall be 
determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.030


Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.031


And where:

CCL Rev Req = carrier common line revenue requirement for the most 
recent 24-month period;
CCL MOUb = carrier common line minutes of use for the 
most recent 24-month period;
CCL MOU1 = carrier common line minutes of use for the 12-
month period; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.

    (4) For a tariff change, the incumbent local exchange carrier which 
is an average schedule carrier must propose common line rates based on 
the following:
    (i) For the first biennial filings, the common line revenue 
requirement shall be determined by the incumbent local exchange 
carrier's most recent annual Common Line settlement from the National 
Exchange Carrier Association. Subscriber line charges shall be based on 
cost and demand data for the same period. Carrier common line rates 
shall be determined by the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.032


Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.033


And where:

CCL Rev Req = carrier common line settlement for the most recent 12-
month period;
CCL MOUb = carrier common line minutes of use for the 
most recent 12-month period;
CCL MOU1 = CCL MOUb; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.

    (ii) For subsequent biennial filings, the common line revenue 
requirement shall be an amount calculated to reflect the average 
schedule pool settlements the carrier would have received if the 
carrier had continued to participate in the carrier common line pool, 
based upon the average schedule Common Line formulas developed by the 
National Exchange Carrier Association for the most recent 24-month 
period. Subscriber line charges shall be based on cost and demand data 
for the same period. Carrier common line rates shall be determined by 
the following formula:
[GRAPHIC] [TIFF OMITTED] TP11AU10.034


Where:
[GRAPHIC] [TIFF OMITTED] TP11AU10.035


And where:

CCL Rev Req = carrier common line settlement for the most recent 24-
month period;
CCL MOUb = carrier common line minutes of use for the 
most recent 24-month period;
CCL MOU1 = carrier common line minutes of use for the 
most recent 12-month period; and
CCL MOU0 = carrier common line minutes of use for the 12-
month period preceding the most recent 12-month period.

    (5) For End User Common Line charges included in a tariff pursuant 
to this Section, the incumbent local

[[Page 48638]]

exchange carrier must provide supporting information for the two-year 
historical period with its letter of transmittal in accordance with 
Sec.  61.38.
    (c) Maximum allowable rate of return. Incumbent Local exchange 
carriers filing tariffs under this section are not required to comply 
with Sec. Sec.  65.700 through 65.701 of this chapter, except with 
respect to periods during which tariffs were not subject to this 
section. The Commission may require any carrier to submit suc