[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR61.46]

[Page 207-208]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 61_TARIFFS--Table of Contents
 
              Subpart E_General Rules for Dominant Carriers
 
Sec. 61.46  Adjustments to the API.

    (a) Except as provided in paragraphs (d) and (e) of this section, in 
connection with any price cap tariff filing proposing rate changes, the 
carrier must calculate an API for each affected basket pursuant to the 
following methodology:

APIt = APIt-1[[Sigma]i vi 
    (Pt/Pt-1)i]

Where:

APIt = the proposed API value,
APIt-1 = the existing API value,
Pt = the proposed price for rate element ``i,''
Pt-1 = the existing price for rate element ``i,'' and
vi = the current estimated revenue weight for rate element 
``i,'' calculated as the ratio of the base period demand for the rate 
element ``i'' priced at the existing rate, to the base period demand for 
the entire basket of services priced at existing rates.

    (b) New services subject to price cap regulation must be included in 
the appropriate API calculations under paragraph (a) of this section 
beginning at the first annual price cap tariff filing following 
completion of the base period in which they are introduced. This index 
adjustment requires that the demand for the new service during the base 
period must be included in determining the weights used in calculating 
the API.
    (c) Any price cap tariff filing proposing rate restructuring shall 
require an adjustment to the API pursuant to the general methodology 
described in

[[Page 208]]

paragraph (a) of this section. This adjustment requires the conversion 
of existing rates into rates of equivalent value under the proposed 
structure, and then the comparison of the existing rates that have been 
converted to reflect restructuring to the proposed restructured rates. 
This calculation may require use of carrier data and estimation 
techniques to assign customers of the preexisting service to those 
services (including the new restructured service) that will remain or 
become available after restructuring.
    (d) The maximum allowable carrier common line (CCL) revenue shall be 
computed pursuant to the following methodology:

CCL = CMT-EUCL-Interstate Access Universal Service Support Mechanism Per 
    Line-PICC

Where:

CMT = Price Cap CMT Revenue as defined in Sec. 61.3(cc).
EUCL = Maximum allowable EUCL rates established pursuant to Sec. 69.152 
of this chapter multiplied by base period lines.
Interstate Access Universal Service Support Per Line = the amount as 
determined by the Administrator pursuant to Sec. 54.807 of this chapter 
times the number of base period lines for each customer class and zone 
receiving Interstate Access Universal Service support pursuant to part 
54, subpart J.
PICC = Maximum allowable PICC rates established pursuant to Sec. 69.153 
of this chapter multiplied by base period lines.

    (e) In no case shall a price cap local exchange carrier include data 
associated with services offered pursuant to contract tariff in the 
calculations required by this section.

[65 FR 38698, June 21, 2000; 65 FR 57741, 57742, Sept. 26, 2000]