Sec. 61.49  Supporting information to be submitted with letters of 
          transmittal for tariffs of carriers subject to price cap 
          regulation.

    (a) Each price cap tariff filing must be accompanied by supporting 
materials sufficient to calculate required adjustments to each PCI, API, 
and SBI pursuant to the methodologies provided in Secs. 61.44, 61.45, 
61.46, and 61.47, as applicable
    (b) Each price cap tariff filing that proposes rates that are within 
applicable bands established pursuant to Sec. 61.47, and that results in 
an API value that is equal to or less than the applicable PCI value, 
must be accompanied by supporting materials sufficient to establish 
compliance with the applicable bands, and to calculate the necessary 
adjustment to the affected APIs and SBIs pursuant to Secs. 61.46 and 
61.47, respectively.
    (c) Each price cap tariff filing that proposes rates above the 
applicable band limits established in Sec. 61.47 (e), (f)(1), (g), and 
(h) or above the limit on composite average residential rates 
established in Sec. 61.47(f)(2), must be accompanied by supporting 
materials establishing substantial cause for the proposed rates.
    (d) Each price cap tariff filing that proposes rates that will 
result in an API value that exceeds the applicable PCI value must be 
accompanied by:
    (1) An explanation of the manner in which all costs have been 
allocated among baskets; and
    (2) Within the affected basket, a cost assignment slowing down to 
the lowest possible level of disaggregation, including a detailed 
explanation of the reasons for the prices of all rate elements to which 
costs are not assigned.
    (e) Each price cap tariff filing that proposes restructuring of 
existing rates must be accompanied by supporting materials sufficient to 
make the adjustments to each affected API and SBI required by 
Secs. 61.46(c) and 61.47(d), respectively.
    (f)(1) Each tariff filing by a dominant interexchange carrier, as 
specified by Commission order, that introduces a new service that will 
later be included in a basket must be accompanied by cost data 
sufficient to establish that the new service, and each unbundled

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element thereof, will generate a net revenue increase--measured against 
revenues generated from all services subject to price cap regulation, 
and calculated based upon present value--within the lesser of a 24-month 
period after an annual price cap tariff including the new service takes 
effect, or 36 months from the date the new service becomes effective. 
Each carrier making such a tariff filing must, at the time the new 
service is incorporated into the price cap index, submit data sufficient 
to make the API and PCI calculations required by Secs. 61.46(b) and 
61.44(c) of this part, and, as necessary, to make the SBI calculations 
provided in Sec. 61.47 (b) or (c) of this part.
    (2) Each tariff filing submitted by a local exchange carrier 
specified in Sec. 61.41(a) (2) or (3) of this part that introduces a new 
service or a restructured unbundled basic service element (BSE) (as BSE 
is defined in Sec. 69.2 (mm)) that is or will later be included in a 
basket must be accompanied by cost data sufficient to establish that the 
new service or unbundled BSE will not recover more than a reasonable 
portion of the carrier's overhead costs.
    (g) Each tariff filing by a local exchange carrier subject to price 
cap regulation that introduces a new service or a restructured unbundled 
basis service element (BSE), as defined in Sec. 69.2(mm) of this 
chapter, that is or will later be included in a basket, or that 
introduces or changes the rates for connection charge subelments for 
expanded interconnection, as defined in Sec. 69.121 of this chapter, 
must also be accompanied by:
    (1) 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 tariff on the traffic and 
revenues from the service to which the new tariff applies, the 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 
paragraph (h)(1)(i) of this section.
    (2) Working papers and statistical data. (i) Concurrently with the 
filing of any tariff change or tariff filing for a service not 
previously offered, the Chief, Tariff Review Branch must be provided two 
sets of working papers containing the information underlying the data 
supplied in response to paragraph (h)(1) of this section, and a clear 
explanation of how the working papers relate to that information.
    (ii) All statistical studies must be submitted and supported in the 
form prescribed in Sec. 1.363 of the Commission's rules.
    (h) Each tariff filing submitted by a local exchange carrier subject 
to price cap regulation that introduces or changes the rates for 
connection charge subelements for expanded interconnection, as defined 
in Sec. 69.121 of this chapter, must be accompanied by cost data 
sufficient to establish that such charges will not recover more than a 
just and reasonable portion of the carrier's overhead costs.
    (i) For a tariff filing that introduces or changes a contribution 
charge for special access and expanded interconnection, as defined in 
Sec. 69.122 of this chapter, the carrier must submit information 
sufficient to establish that the charge has been calculated in a manner 
that complies with the Commission order authorizing the contribution 
charge.
    (j) For a tariff that introduces a system of density pricing zones, 
as described in Sec. 69.123 of this chapter, the 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.
    (k) In accordance with Secs. 61.41 through 61.49, local exchange 
carriers subject to price cap regulation that elect to file their annual 
access tariff pursuant to section 204(a)(3) of the Communications Act 
shall submit supporting material for their interstate

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annual access tariffs, absent rate information, 90 days prior to July 1 
of each year.

[ 54 FR 19843 , May 8, 1989, as amended at  55 FR 42384 , Oct. 19, 1990;  56 FR 5956 , Feb. 14, 1991;  56 FR 21617 , May 10, 1991;  56 FR 33880 , July 24, 
1991;  57 FR 37730 , Aug. 20, 1992;  57 FR 54331 , Nov. 18, 1992;  58 FR 17167 , Apr. 1, 1993;  58 FR 38536 , July 19, 1993;  58 FR 48762 , Sept. 17, 
1993;  59 FR 10304 , Mar. 4, 1994;  62 FR 4659 , Jan. 31, 1997;  62 FR 5778 , 
Feb. 7, 1997;  62 FR 42218 , Aug. 6, 1997]