Section 3.53.345. Local exchange carrier of last resort support and rate cap increase.

	(a)  Except as provided in (h) of this section, if a local exchange carrier is designated, under 3 AAC 53.200 - 3 AAC 53.299, a carrier of last resort, and if that carrier is a nonpooling company, the carrier is eligible for carrier of last resort support from the AUSF to offset the shortfall in carrier common line (CCL) revenue below the carrier of last resort's supported CCL revenue requirement. If the carrier of last resort is a nonpooling company, but was previously a pooling company, the supported CCL revenue requirement for the carrier is the CCL revenue requirement from which the carrier's CCL rate cap was determined. If the carrier is a nonpooling company, and was not previously a pooling company,  
		(1) the carrier must support the proposed supported CCL revenue requirement with a filing  
			(A) in accordance with the Alaska Intrastate Interexchange Access Charge Manual, adopted by reference in 3 AAC 48.440; and  
			(B) submitted with the carrier's first tariff filing for carrier of last resort support under (c) of this section; and  
		(2) the supported CCL revenue requirement for the carrier may not exceed, on a per-line basis, the CCL revenue requirement of a carrier of last resort that is a nonpooling company, but that was previously a pooling company.  
	(b)  A local exchange carrier of last resort that is a nonpooling company, that faces local exchange competition, and that has a CCL rate cap less than the network access fee (NAF) established under section 109 of the Alaska Intrastate Interexchange Access Charge Manual , adopted by reference in 3 AAC 48.440, is eligible for an increase in the carrier's CCL rate cap for the sole purpose of increasing the carrier's NAF rate up to the currently effective NAF limit so as to allow additional NAF revenues to offset, in whole or in part, the shortfall in CCL revenue below the supported CCL revenue requirement. The supported CCL revenue requirement is not changed even though a carrier is eligible for a CCL rate cap increase under this subsection.  
	(c)  A local exchange carrier of last resort seeking to initiate, renew, or modify its total carrier of last resort support amount, or to increase a CCL rate cap as provided under (b) of this section, must submit a tariff advice letter in accordance with 3 AAC 48.220, 3 AAC 48.240, and 3 AAC 48.270.  
	(d)  The carrier of last resort support amount approved by the commission under this section remains in effect for one year and will not be automatically renewed.  
	(e)  A tariff filing under (c) of this section must specify the CCL rate cap increase, the NAF rate change, and the carrier of last resort support amount being sought, and must provide a calculation of the shortfall in CCL revenue below the carrier of last resort's supported CCL revenue requirement. The shortfall in CCL revenue is determined by subtracting the carrier of last resort's combined CCL revenue from the carrier of last resort's supported CCL revenue requirement. The combined CCL revenue is the carrier of last resort's annualized revenue from the NAF and the CCL rate element, determined by multiplying the revenue generated for a recent three-month period by four. The calculation must impute any increase in NAF revenue associated with a proposed increase in the NAF rate for purposes of determining the proposed carrier of last resort support.  
	(f)  If a local exchange carrier of last resort has a CCL rate cap greater than or equal to the NAF established under section 109 of the Alaska Intrastate Interexchange Access Charge Manual, adopted by reference in 3 AAC 48.440, the carrier of last resort shall receive carrier of last resort support equal to the shortfall calculated under (e) of this section.  
	(g)  If a local exchange carrier of last resort has a CCL rate cap less than the NAF established under section 109 of the Alaska Intrastate Interexchange Access Charge Manual, adopted by reference in 3 AAC 48.440, the CCL rate cap and NAF for the carrier of last resort shall be increased up to the currently effective NAF limit, to the extent necessary to recover the shortfall. If any shortfall remains after the increase to the CCL rate cap, the carrier of last resort shall receive carrier of last resort support equal to the remaining shortfall.  
	(h)  Notwithstanding (a), (b), (f), and (g) of this section or the provisions of 3 AAC 53.265, the commission upon a petition or on its own motion may withdraw carrier of last resort status or may terminate carrier of last resort support provided to a local exchange carrier serving a portion or all of the study area if the commission determines after notice and hearing that a local exchange carrier of last resort is no longer needed in that area due to competitive market conditions or other relevant factors.  
	(i)  After investigation and opportunity for hearing, the commission may reduce a carrier's carrier of last resort support  
		(1) if all or a part of the support is being used for an unreasonable purpose;  
		(2) if federal support becomes available that fills the same or a similar purpose as carrier of last resort support; or  
		(3) for good cause.  
	(j)  In this section,  
		(1) "CCL" means carrier common line;  
		(2) "NAF" means network access fee.  

Authorities

42.05.141;42.05.145;42.05.151;42.05.291;42.05.311;42.05.321;42.05.381;42.05.431;42.05.830;42.05.840

Notes

Authority

AS 42.05.141 AS 42.05.145 AS 42.05.151 AS 42.05.291 AS 42.05.311 AS 42.05.321 AS 42.05.381 AS 42.05.431 AS 42.05.830 AS 42.05.840

History

Eff. 7/31/2011, Register 199