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

   Link to an amendment published at  69 FR 25336 , May, 6, 2004.

   (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.
   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
   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 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 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 (ii) above.

   (2) For a tariff filing offering a new service, the 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 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
   (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 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
   Chief, Pricing Policy Division must be provided two sets of 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 the Commission's Rules.

   (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 filing carrier must submit all additional cost, marketing
   and other data underlying the working papers to justify a proposed rate
   increase. The 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 offering
   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 carrier shall indicate the transmittal number under which that
   page was submitted.

   [ 49 FR 40869 , Oct. 18, 1984, as amended at  53 FR 36289 , Sept. 19, 1988;  54 FR 19841 , May 8, 1989;  55 FR 42382 , Oct. 19, 1990;  56 FR 55239 , Oct. 25,
   1991;  57 FR 54330 , Nov. 18, 1992;  58 FR 36147 , July 6, 1993;  58 FR 48762 ,
   Sept. 17, 1993;  64 FR 46588 , 46593, Aug. 26, 1999;  67 FR 13228 , Mar. 21,
   2002]

   Effective Date Note:   At  69 FR 25336 , May 6, 2004, paragraph (b)(4) of
    Sec. 61.38  was  removed and reserved. This paragraph contains information
   collection and recordkeeping requirements and will not become effective
   until approval has been given by the Office of Management and Budget.