§  61.40   Private line rate structure guidelines.

   (a) The Commission uses a variety of tools to determine whether a
   dominant carrier's private line tariffs are just, reasonable, and
   nondiscriminatory. The dominant carrier's burden of cost justification
   can be reduced when its private line rate structures comply with the
   following five guidelines.

   (1) Rate structures for the same or comparable services should be
   integrated;

   (2) Rate structures for the same or comparable services should be
   consistent with one another;

   (3) Rate elements should be selected to reflect market demand, pricing
   convenience for the carrier and customers, and cost characteristics; a
   rate element which appears separately in one rate structure should
   appear separately in all other rate structures;

   (4) Rate elements should be consistently defined with respect to
   underlying service functions and should be consistently employed
   through all rate structures; and

   (5) Rate structures should be simple and easy to understand.

   (b) The guidelines do not preclude a carrier, in a given case when a
   private line tariff does not comply with these guidelines, from
   justifying its departure from the guidelines and showing that its
   tariff is just, reasonable, and nondiscriminatory.

   [ 49 FR 40869 , Oct. 18, 1984, as amended at  76 FR 43213 , July 20, 2011]

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