Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 26 - SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Subchapter J - COSTS, RATES AND TARIFFS
Section 26.210 - Promotional Rates for Local Exchange Company Services
Current through Reg. 50, No. 13; March 28, 2025
(a) Application. This section applies to dominant certificated telecommunications utilities (DCTUs) as that term is defined by § 26.5 of this title (relating to Definitions) which are subject to the ratemaking jurisdiction of the commission for any service or market.
(b) Purpose. The procedures outlined in this section are intended to establish a process by which DCTUs may obtain authorization for offering promotional rates for the purpose of increasing long term demand for a service or utilizing unused capacity of the DCTU's network.
(c) Filings requesting approval of promotional rates. After the effective date of this section, a DCTU may request approval of promotional rates for a service by following the procedures outlined in this section. Not later than 35 days prior to the proposed effective date of the promotional rate, the DCTU must file with the commission an application containing the following information:
(d) Modification and waivers of requirements. In its application a DCTU may request the waiver of the long run incremental cost requirements set forth in this section. Such a waiver will only be granted if the presiding officer determines that the long run incremental cost standard imposes an unreasonable burden on a DCTU which has inadequate resources to produce the required cost information to meet the standard and if the presiding officer determines that an appropriate alternative cost standard is available. If the long run incremental cost standard is waived, the DCTU must provide other cost information showing the relationship between its proposed promotional rates and the costs of providing the service. A DCTU may also request a waiver of the requirement that promotional rates be offered in every exchange when such rates are proposed to be offered for a tariffed service which is being expanded into central offices which previously did not provide the service. Any request for waiver of the long run incremental cost information requirement or the system-wide application of the promotional rates requirement must include a complete statement of the DCTU' arguments supporting that request.
(e) Notice of intent to file. At least ten days before any application under this section may be filed by a DCTU, the DCTU must file a statement of intent to file such an application and the expected filing date. Such notice must also include a statement of the DCTU's intent to use the expedited procedures of this section, a description of the service, and a description of the proposed promotional rates and the proposed promotional period. The commission must then publish notice of the DCTU's intent to file such application in the Texas Register.
(f) Requirements for promotional rates. Unless waived or modified by the presiding officer as provided in subsection (d) of this section, the following requirements must apply to promotional rates approved under this section:
(g) Notification to the public of services to be offered at promotional rates. If promotional rates for a service are approved under this section, all advertising related to such service and its promotional rates must clearly describe the temporary nature of the rate, the date on which the promotional rate will expire, and the rate which will apply after expiration of the promotional rate. The DCTU must provide the same information to all customers requesting rate information for such service or ordering the service during the period the promotional rates are in effect.
(h) Reporting requirements. If promotional rates are approved, the DCTU must file with the commission a report showing the actual revenues, demand and related expenses and investment for the service over each period promotional rates are in effect. This report must be filed with the commission within three months after each authorized period for offering promotional rates has expired.
(i) Treatment of revenues and expenses related to promotional rates in subsequent rate cases. In any subsequent rate case in which a service was offered at promotional rates during the test year, the revenues attributed to such service must be adjusted upward to reflect the revenues which would have been collected if all customers who were charged the promotional rate had been charged the permanent tariffed rate over the promotional period.
(j) Subsequent review of the promotional rates. If promotional rates for a service are approved under the procedures set forth in this section, the commission's Office of Regulatory Affairs, the Office of Public Utility Counsel, or any affected person may file with the commission a petition seeking modification of the rates or terms under which the promotional rate is offered or withdrawal of the promotional rate. If multiple promotional rate periods are approved for a service under the provisions of this section and if the reports filed in accordance with subsection (h) of this section indicate that the rates for the service did not recover the costs of the service as required in subsection (f) of this section, the commission must initiate an inquiry into the reasonableness of such promotional rates and must suspend those rates pending the completion of the inquiry.
(k) Provisions for SLECs. Notwithstanding § 26.208 of this title and subsections (c), (d), and (f) of this section, the provisions of this subsection apply to a small local exchange company (SLEC) as defined in § 26.5 of this title (relating to Definitions). If the presiding officer determines that the SLEC is seeking to adopt as its promotional rates for its services the rates for the same or similar services offered by an incumbent local exchange carrier: