§ 51.915   Recovery mechanism for price cap carriers.

   (a) Scope. This section sets forth the extent to which Price Cap Carriers
   may recover certain revenues, through the recovery mechanism outlined below,
   to implement reforms adopted in FCC 11-161 and as required by § 20.11(b) of
   this chapter, and § § 51.705 and 51.907.

   (b) Definitions. As used in this section and § 51.917, the following terms
   mean:

   (1) CALLS Study Area. A CALLS Study Area means a Price Cap Carrier study
   area that participated in the CALLS plan at its inception. See Access Charge
   Reform, Price Cap Performance Review for Local Exchange Carriers, Low-Volume
   Long-Distance Users, Federal-State Joint Board on Universal Service, Sixth
   Report and Order in CC Docket Nos. 96-262 and 94-1, Report and Order in CC
   Docket No. 99-249, Eleventh Report and Order in CC Docket No. 96-45, 15 FCC
   Rcd 12962 (2000).

   (2) CALLS Study Area Base Factor. The CALLS Study Area Base Factor is equal
   to ninety (90) percent.

   (3)  CMRS  Net  Reciprocal  Compensation Revenues. CMRS Net Reciprocal
   Compensation Revenues means the reduction in net reciprocal compensation
   revenues required by § 20.11 of this chapter associated with CMRS traffic as
   described in § 51.701(b)(2), which is equal to its Fiscal Year 2011 net
   reciprocal compensation revenues from CMRS carriers.

   (4) Expected Revenues for Access Recovery Charges. Expected Revenues for
   Access Recovery Charges are calculated using the tariffed Access Recovery
   Charge rate for each class of service and the forecast demand for each class
   of service.

   (5) Initial Composite Terminating End Office Access Rate. Initial Composite
   Terminating  End Office Access Rate means Fiscal Year 2011 terminating
   interstate End Office Access Service revenue divided by Fiscal Year 2011
   terminating interstate end office switching minutes.

   (6)  Lifeline  Customer. A Lifeline Customer is a residential lifeline
   subscriber as defined by § 54.400(a) of this chapter that does not pay a
   Residential and/or Single-Line Business End User Common Line Charge.

   (7) Net Reciprocal Compensation. Net Reciprocal Compensation means the
   difference  between  a carrier's reciprocal compensation revenues from
   non-access traffic less its reciprocal compensation payments for non-access
   traffic during a stated period of time. For purposes of the calculations
   made  under  § § 51.915 and 51.917, the term does not include reciprocal
   compensation  revenues  for non-access traffic exchanged between Local
   Exchange Carriers and CMRS providers; recovery for such traffic is addressed
   separately in these sections.

   (8) Non-CALLS Study Area. Non-CALLS Study Area means a Price Cap Carrier
   study area that did not participate in the CALLS plan at its inception.

   (9) Non-CALLS Study Area Base Factor. The Non-CALLS Study Area Base Factor
   is equal to one hundred (100) percent for five (5) years beginning July 1,
   2012. Beginning July 1, 2017, the Non-CALLS Price Cap Carrier Base Factor
   will be equal to ninety (90) percent.

   (10) Price Cap Carrier Traffic Demand Factor. The Price Cap Carrier Traffic
   Demand Factor, as used in calculating eligible recovery, is equal to ninety
   (90) percent for the one-year period beginning July 1, 2012. It is reduced
   by ten (10) percent of its previous value in each subsequent annual tariff
   filing.

   (11) Rate Ceiling Component Charges. The Rate Ceiling Component Charges
   consists of the federal end user common line charge and the Access Recovery
   Charge; the flat rate for residential local service (sometimes know as the
   “1FR” or “R1” rate), mandatory extended area service charges, and state
   subscriber  line charges; per-line state high cost and/or state access
   replacement universal service contributions, state E911 charges, and state
   TRS charges.

   (12) Residential Rate Ceiling. The Residential Rate Ceiling, which consists
   of the total of the Rate Ceiling Component Charges, is set at $30 per month.
   The Residential Rate Ceiling will be the higher of the rate in effect on
   January 1, 2012, or the rate in effect on January 1 in any subsequent year.

   (13) True-up Revenues for Access Recovery Charge. True-up revenues for
   Access Recovery Charge are equal to (projected demand minus actual realized
   demand for Access Recovery Charges) times the tariffed Access Recovery
   Charge. This calculation shall be made separately for each class of service
   and shall be adjusted to reflect any changes in tariffed rates for the
   Access Recovery Charge. Realized demand is the demand for which payment has
   been received by the time the true-up is made.

   (14) Intrastate 2014 Composite Terminating End Office Access Rate. The
   Intrastate 2014 Composite Terminating End Office Access Rate as used in this
   section is determined by

   (i) If a separate terminating rate is not already generally available,
   developing separate intrastate originating and terminating end office rates
   in accordance with § 51.907(d)(1) using end office access rates at their June
   30, 2014, rate caps;

   (ii) Multiplying the existing terminating June 30, 2014, intrastate end
   office  access  rates, or the terminating rates developed in paragraph
   (b)(14)(i) of this section, by the relevant Fiscal Year 2011 intrastate
   demand; and

   (iii) Dividing the sum of the revenues determined in paragraph (b)(14)(ii)
   of this section by 2011 Fiscal Year intrastate terminating local switching
   minutes.

   (c) 2011 Price Cap Carrier Base Period Revenue. 2011 Price Cap Carrier Base
   Period Revenue is equal to the sum of the following three components:

   (1)  Terminating  interstate  end  office switched access revenues and
   interstate Tandem-Switched Transport Access Service revenues for Fiscal Year
   2011 received by March 31, 2012;

   (2) Fiscal Year 2011 revenues from Transitional Intrastate Access Service
   received by March 31, 2012; and

   (3) Fiscal Year 2011 reciprocal compensation revenues received by March 31,
   2012, less fiscal year 2011 reciprocal compensation payments made by March
   31, 2012.

   (d) Eligible recovery for Price Cap Carriers. (1) Notwithstanding any other
   provision of the Commission's rules, a Price Cap Carrier may recover the
   amounts specified in this paragraph through the mechanisms described in
   paragraphs (e) and (f) of this section.

   (i) Beginning July 1, 2012, a Price Cap Carrier's eligible recovery will be
   equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
   Base Factor, as applicable, multiplied by the sum of the following three
   components:

   (A) The amount of the reduction in Transitional Intrastate Access Service
   revenues determined pursuant to § 51.907(b)(2) multiplied by the Price Cap
   Carrier Traffic Demand Factor;

   (B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor; and

   (C) A Price Cap Carrier's reductions in Fiscal Year 2011 net reciprocal
   compensation revenues resulting from rate reductions required by § 51.705,
   other than those associated with CMRS traffic as described in § 51.701(b)(2),
   which may be calculated in one of the following ways:

   (1) Calculate the reduction in Fiscal Year 2011 net reciprocal compensation
   revenue as a result of rate reductions required by § 51.705 using Fiscal Year
   2011 reciprocal compensation demand, and then multiply by the Price Cap
   Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2012 multiply by the appropriate
   Fiscal Year 2011 demand, and then multiply by the Price Cap Carrier Traffic
   Demand Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (ii) Beginning July 1, 2013, a Price Cap Carrier's eligible recovery will be
   equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
   Base Factor, as applicable, multiplied by the sum of the following three
   components:

   (A) The cumulative amount of the reduction in Transitional Intrastate Access
   Service revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by
   the Price Cap Carrier Traffic Demand Factor; and

   (B) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor; and

   (C) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
   reciprocal compensation revenues other than those associated with CMRS
   traffic  as  described in § 51.701(b)(2) resulting from rate reductions
   required by § 51.705 may be calculated in one of the following ways:

   (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
   compensation revenue as a result of rate reductions required by § 51.705
   using Fiscal Year 2011 reciprocal compensation demand and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2013, using the appropriate Fiscal
   Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
   Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (iii) Beginning July 1, 2014, a Price Cap Carrier's eligible recovery will
   be equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
   Base  Factor,  as  applicable, multiplied by the sum of the amounts in
   paragraphs (d)(1)(iii)(A) through (d)(1)(iii)(E), of this section, and then
   adding  the amount in paragraph (d)(1)(iii)(F) of this section to that
   amount:

   (A) The amount of the reduction in Transitional Intrastate Access Service
   revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
   Price Cap Carrier Traffic Demand Factor; and

   (B)  The reduction in interstate switched access revenues equal to the
   difference between the 2011 Baseline Composite Terminating End Office Access
   Rate  and the 2014 Target Composite Terminating End Office Access Rate
   determined  pursuant  to § 51.907(d) using Fiscal Year 2011 terminating
   interstate end office switching minutes, and then multiply by the Price Cap
   Carrier Traffic Demand Factor;

   (C) If the carrier reduced its 2014 Intrastate Terminating End Office Access
   Rate(s) pursuant to § 51.907(d)(2), the reduction in revenues equal to the
   difference between either the Intrastate 2014 Composite Terminating End
   Office Access Rate and the Composite Terminating End Office Access Rate
   based on the maximum terminating end office rates that could have been
   charged on July 1, 2014, or the 2014 Target Composite Terminating End Office
   Access Rate, as applicable, using Fiscal Year 2011 terminating intrastate
   end office switching minutes, and then multiply by the Price Cap Carrier
   Traffic Demand Factor;

   (D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor; and

   (E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
   reciprocal compensation revenues other than those associated with CMRS
   traffic  as  described in § 51.701(b)(2) resulting from rate reductions
   required by § 51.705 may be calculated in one of the following ways:

   (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
   compensation revenue as a result of rate reductions required by § 51.705
   using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2014, using the appropriate Fiscal
   Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
   Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (F) An amount equal to True-up Revenues for Access Recovery Charges for the
   year beginning July 1, 2012.

   (iv) Beginning July 1, 2015, a Price Cap Carrier's eligible recovery will be
   equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
   Base  Factor,  as  applicable, multiplied by the sum of the amounts in
   paragraphs (d)(1)(iv)(A) through (d)(1)(iv)(E) of this section and then
   adding the amount in paragraph (d)(1)(iv)(F) of this section to that amount:

   (A) The amount of the reduction in Transitional Intrastate Access Service
   revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
   Price Cap Carrier Traffic Demand Factor;

   (B)  The reduction in interstate switched access revenues equal to the
   difference between the 2011 Baseline Composite Terminating End Office Access
   Rate  and the 2015 Target Composite Terminating End Office Access Rate
   determined  pursuant  to § 51.907(e) using Fiscal Year 2011 terminating
   interstate end office switching minutes, and then multiply by the Price Cap
   Carrier Traffic Demand Factor;

   (C) If the carrier reduced its Intrastate Terminating End Office Access
   Rate(s) pursuant to § 51.907(e)(1), the reduction in intrastate switched
   access revenues equal to the difference between either the intrastate 2014
   Composite Terminating End Office Access Rate and the Composite Terminating
   End Office Access Rate based on the maximum terminating end office rates
   that could have been charged on July 1, 2015, or the 2015 Target Composite
   Terminating End Office Access Rate, as applicable, using Fiscal Year 2011
   terminating intrastate end office switching minutes, and then multiply by
   the Price Cap Carrier Traffic Demand Factor; and

   (D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor;

   (E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
   reciprocal compensation revenues other than those associated with CMRS
   traffic  as  described in § 51.701(b)(2) resulting from rate reductions
   required by § 51.705 may be calculated in one of the following ways:

   (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
   compensation revenue as a result of rate reductions required by § 51.705
   using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2015, using the appropriate Fiscal
   Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
   Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (F) An amount equal to True-up Revenues for Access Recovery Charges for the
   year beginning July 1, 2013.

   (v) Beginning July 1, 2016, a Price Cap Carrier's eligible recovery will be
   equal to the CALLS Study Area Base Factor and/or the Non-CALLS Study Area
   Base  Factor,  as  applicable, multiplied by the sum of the amounts in
   paragraphs (d)(1)(v)(A) through (d)(1)(v)(E), of this section and then
   adding the amount in paragraph (d)(1)(v)(F) of this section to that amount:

   (A) The amount of the reduction in Transitional Intrastate Access Service
   revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
   Price Cap Carrier Traffic Demand Factor;

   (B)  The reduction in interstate switched access revenues equal to the
   difference between the 2011 Baseline Composite Terminating End Office Access
   Rate and $0.0007 determined pursuant to § 51.907(f) using Fiscal Year 2011
   terminating interstate end office switching minutes, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (C) If the carrier reduced its Intrastate Terminating End Office Access
   Rate(s) pursuant to § 51.907(f), the reduction in revenues equal to the
   difference between either the Intrastate 2014 Composite Terminating End
   Office Access Rate and $0.0007 based on the maximum terminating end office
   rates that could have been charged on July 1, 2016, or the 2016 Target
   Composite Terminating End Office Access Rate, as applicable, using Fiscal
   Year 2011 terminating intrastate end office minutes, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (D) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor;

   (E) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
   reciprocal compensation revenues other than those associated with CMRS
   traffic  as  described in § 51.701(b)(2) resulting from rate reductions
   required by § 51.705 may be calculated in one of the following ways:

   (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
   compensation revenue as a result of rate reductions required by § 51.705
   using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2016, using the appropriate Fiscal
   Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
   Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (F) An amount equal to True-up Revenues for Access Recovery Charges for the
   year beginning July 1, 2014.

   (vi) Beginning July 1, 2017, a Price Cap Carrier's eligible recovery will be
   equal  to  ninety (90) percent of the sum of the amounts in paragraphs
   (d)(1)(vi) through (d)(1)(vi)(F) of this section, and then adding the amount
   in paragraph (d)(1)(vi)(G) f this section to that amount:

   (A) The amount of the reduction in Transitional Intrastate Access Service
   revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
   Price Cap Carrier Traffic Demand Factor; and

   (B) The reduction in interstate switched access revenues equal to the 2011
   Baseline Composite Terminating End Office Access Rate using Fiscal Year 2011
   terminating interstate end office switching minutes, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (C)  The  reduction in revenues equal to the intrastate 2014 Composite
   terminating  End Office Access Rate using Fiscal Year 2011 terminating
   intrastate end office switching minutes, and then multiply by the Price Cap
   Carrier Traffic Demand Factor;

   (D)  The reduction in revenues resulting from reducing the terminating
   Tandem-Switched  Transport  Access Service rate to $0.0007 pursuant to
   § 51.907(g)(2) using Fiscal Year 2011 terminating tandem-switched minutes,
   and then multiply by the Price Cap Carrier Traffic Demand Factor;

   (E) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor; and

   (F) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
   reciprocal compensation revenues other than those associated with CMRS
   traffic  as  described in § 51.701(b)(2) resulting from rate reductions
   required by § 51.705 may be calculated in one of the following ways:

   (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
   compensation revenue as a result of rate reductions required by § 51.705
   using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2017, using the appropriate Fiscal
   Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
   Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (G) An amount equal to True-up Revenues for Access Recovery Charges for the
   year beginning July 1, 2015.

   (vii) Beginning July 1, 2018, a Price Cap Carrier's eligible recovery will
   be equal to ninety (90) percent of the sum of the amounts in paragraphs
   (d)(1)(vii)(A) though (d)(1)(vii)(G) of this section, and then adding the
   amount in paragraph (d)(1)(vii)(H) of this section to that amount:

   (A) The amount of the reduction in Transitional Intrastate Access Service
   revenues determined pursuant to § 51.907(b)(2) and (c) multiplied by the
   Price Cap Carrier Traffic Demand Factor; and:

   (B) The reduction in interstate switched access revenues equal to the 2011
   Baseline Composite Terminating End Office Access Rate using Fiscal Year 2011
   terminating interstate end office switching minutes, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (C)  The  reduction in revenues equal to the intrastate 2014 Composite
   terminating  End Office Access Rate using Fiscal Year 2011 terminating
   intrastate end office switching minutes, and then multiply by the Price Cap
   Carrier Traffic Demand Factor;

   (D)  The reduction in revenues resulting from reducing the terminating
   Tandem-Switched  Transport  Access Service rate to $0.0007 pursuant to
   § 51.907(g)(2) using Fiscal Year 2011 terminating tandem-switched minutes,
   and then multiply by the Price Cap Carrier Traffic Demand Factor;

   (E) The reduction in revenues resulting from moving from a terminating
   Tandem-Switched Transport Access Service rate tariffed at a maximum of
   $0.0007  to removal of intercarrier charges pursuant to § 51.907(h), if
   applicable, using Fiscal Year 2011 terminating tandem-switched minutes, and
   then multiply by the Price Cap Carrier Traffic Demand Factor;

   (F) CMRS Net Reciprocal Compensation Revenues multiplied by the Price Cap
   Carrier Traffic Demand Factor; and

   (G) A Price Cap Carrier's cumulative reductions in Fiscal Year 2011 net
   reciprocal compensation revenues other than those associated with CMRS
   traffic  as  described in § 51.701(b)(2) resulting from rate reductions
   required by § 51.705 may be calculated in one of the following ways:

   (1) Calculate the cumulative reduction in Fiscal Year 2011 net reciprocal
   compensation revenue as a result of rate reductions required by § 51.705
   using Fiscal Year 2011 reciprocal compensation demand, and then multiply by
   the Price Cap Carrier Traffic Demand Factor;

   (2) By using a composite reciprocal compensation rate as follows:

   (i) Establish a composite reciprocal compensation rate for its Fiscal Year
   2011 reciprocal compensation receipts and its Fiscal Year 2011 reciprocal
   compensation  payments  by  dividing  its  Fiscal Year 2011 reciprocal
   compensation receipts and payments by its respective Fiscal Year 2011 demand
   excluding  demand  for  traffic  exchanged pursuant to a bill-and-keep
   arrangement;

   (ii) Calculate the difference between each of the composite reciprocal
   compensation rates and the target reciprocal compensation rate set forth in
   § 51.705 for the year beginning July 1, 2018, using the appropriate Fiscal
   Year 2011 demand, and then multiply by the Price Cap Carrier Traffic Demand
   Factor; or

   (3)  For  the  purpose of establishing its recovery for net reciprocal
   compensation, a Price Cap Carrier may elect to forgo this step and receive
   no recovery for reductions in net reciprocal compensation. If a carrier
   elects this option, it may not change its election at a later date.

   (H) An amount equal to True-up Revenues for Access Recovery Charges for the
   year beginning July 1, 2016.

   (viii)  Beginning  July  1, 2019, and in subsequent years, a Price Cap
   Carrier's  eligible recovery will be equal to the amount calculated in
   paragraph (d)(1)(vii)(A) through (d)(1)(vii)(H) of this section before the
   application of the Price Cap Carrier Traffic Demand Factor applicable in
   2018 multiplied by the appropriate Price Cap Carrier Traffic Demand Factor
   for  the  year in question, and then adding an amount equal to True-up
   Revenues for Access Recovery Charges for the year beginning July 1 two years
   earlier.

   (2) If a Price Cap Carrier recovers any costs or revenues that are already
   being recovered through Access Recovery Charges or the Connect America Fund
   from another source, that carrier's ability to recover reduced switched
   access revenue from Access Recovery Charges or the Connect America Fund
   shall  be  reduced to the extent it receives duplicative recovery. Any
   duplicative  recovery shall be reflected as a reduction to a carrier's
   Eligible Recovery calculated pursuant to § 51.915(d).

   (3) A Price Cap Carrier seeking revenue recovery must annually certify as
   part of its tariff filings to the Commission and to the relevant state
   commission that the carrier is not seeking duplicative recovery in the state
   jurisdiction for any Eligible Recovery subject to the recovery mechanism.

   (4) If a Price Cap Carrier receives payment for Access Recovery Charges
   after the period used to measure the adjustment to reflect the differences
   between estimated and actual revenues, it shall treat such payments as
   actual revenues in the year the payment is received and shall reflect this
   as an additional adjustment for that year.

   (e) Access Recovery Charge. (1) A charge that is expressed in dollars and
   cents per line per month may be assessed upon end users that may be assessed
   an end user common line charge pursuant to § 69.152 of this chapter, to the
   extent necessary to allow the Price Cap Carrier to recover some or all of
   its eligible recovery determined pursuant to paragraph (d) of this section,
   subject to the caps described in paragraph (e)(5) of this section. A Price
   Cap Carrier may elect to forgo charging some or all of the Access Recovery
   Charge.

   (2) Total Access Recovery Charges calculated by multiplying the tariffed
   Access Recovery Charge by the projected demand for the year in question may
   not recover more than the amount of eligible recovery calculated pursuant to
   paragraph (d) of this section for the year beginning on July 1.

   (3) For the purposes of this section, a Price Cap Carrier holding company
   includes all of its wholly-owned operating companies that are price cap
   incumbent local exchange carriers. A Price Cap Carrier Holding Company may
   recover the eligible recovery attributable to any price cap study areas
   operated by its wholly-owned operating companies through assessments of the
   Access Recovery Charge on end users in any price cap study areas operated by
   its wholly owned operating companies that are price cap incumbent local
   exchange carriers.

   (4) Distribution of Access Recovery Charges among lines of different types.
   (i)  A  Price  Cap  Carrier  holding  company  that  does  not receive
   ICC-replacement CAF support (whether because it elects not to or because it
   does not have sufficient eligible recovery after the Access Recovery Charge
   is assessed or imputed) may not recover a higher fraction of its total
   revenue recovery from Access Recovery Charges assessed on Residential and
   Single Line Business lines than:

   (A) The number of Residential and Single-Line Business lines divided by

   (B) The sum of the number of Residential and Single-Line Business lines and
   two  (2)  times the number of End User Common Line charges assessed on
   Multi-Line Business customers.

   (ii) For purposes of this subpart, Residential and Single Line Business
   lines  are lines (other than lines of Lifeline Customers) assessed the
   residential and single line business end user common line charge and lines
   assessed the non-primary residential end user common line charge.

   (iii) For purposes of this subpart, Multi-Line Business Lines are lines
   assessed the multi-line business end user common line charge.

   (5) Per-line caps and other limitations on Access Recovery Charges

   (i) For each line other than lines of Lifeline Customers assessed a primary
   residential  or  single-line business end user common line charge or a
   non-primary residential end user common line charge pursuant to § 69.152 of
   this Chapter, a Price Cap Carrier may assess an Access Recovery Charge as
   follows:

   (A) Beginning July 1, 2012, a maximum of $0.50 per month for each line;

   (B) Beginning July 1, 2013, a maximum of $1.00 per month for each line;

   (C) Beginning July 1, 2014, a maximum of $1.50 per month for each line;

   (D) Beginning July 1, 2015, a maximum of $2.00 per month for each line; and

   (E) Beginning July 1, 2016, a maximum of $2.50 per month for each line.

   (ii) For each line assessed a multi-line business end user common line
   charge pursuant to § 69.152 of this chapter, a Price Cap Carrier may assess
   an Access Recovery Charge as follows:

   (A) Beginning July 1, 2012, a maximum of $1.00 per month for each multi-line
   business end user common line charge assessed;

   (B) Beginning July 1, 2013, a maximum of $2.00 per month for each multi-line
   business end user common line charge assessed;

   (C) Beginning July 1, 2014, a maximum of $3.00 per month for each multi-line
   business end user common line charge assessed;

   (D) Beginning July 1, 2015, a maximum of $4.00 per month for each multi-line
   business end user common line charge assessed; and

   (E) Beginning July 1, 2016, a maximum of $5.00 per month for each multi-line
   business end user common line charge assessed.

   (iii) The Access Recovery Charge allowed by paragraph (e)(5)(i) of this
   section may not be assessed to the extent that its assessment would bring
   the total of the Rate Ceiling Component Charges above the Residential Rate
   Ceiling on January 1 of that year. This limitation applies only to the first
   residential line obtained by a residential end user and does not apply to
   single-line business customers.

   (iv) The Access Recovery Charge allowed by paragraph (e)(5)(ii) of this
   section may not be assessed to the extent that its assessment would bring
   the total of the multi-line business end user common line charge and the
   Access Recovery Charge above $12.20 per line.

   (v) The Access Recovery Charge assessed on lines assessed the non-primary
   residential line end user common line charge in a study area may not exceed
   the  Access  Recovery  Charge assessed on residential end-users' first
   residential line in that study area.

   (vi) The Access Recovery Charge may not be assessed on lines of any Lifeline
   Customers.

   (vii) If in any year, the Price Cap Carrier's Access Recovery Charge is not
   at  its  maximum, the succeeding year's Access Recovery Charge may not
   increase more than $.0.50 per line per month for charges assessed under
   paragraph (e)(5)(i) of this section or $1.00 per line per month for charges
   assessed under paragraph (e)(5)(ii) of this section.

   (f) Price Cap Carrier eligibility for CAF ICC Support. (1) A Price Cap
   Carrier shall elect in its July 1, 2012 access tariff filing whether it will
   receive CAF ICC Support under this paragraph. A Price Cap Carrier eligible
   to receive CAF ICC Support subsequently may elect at any time not to receive
   such funding. Once it makes the election not to receive CAFF ICC Support, it
   may not elect to receive such funding at a later date.

   (2) Beginning July 1, 2012, a Price Cap Carrier may recover any eligible
   recovery allowed by paragraph (d) that it could not have recovered through
   charges assessed pursuant to paragraph (e) of this section from CAF ICC
   Support pursuant to § 54.304. For this purpose, the Price Cap Carrier must
   impute the maximum charges it could have assessed under paragraph (e)of this
   section.

   (3) Beginning July 1, 2017, a Price Cap Carrier may recover two-thirds (
   2⁄3 ) of the amount it otherwise would have been eligible to recover under
   paragraph (f)(2) from CAF ICC Support.

   (4) Beginning July 1, 2018, a Price Cap Carrier may recover one-third (1/3)
   of  the  amount it otherwise would have been eligible to recover under
   paragraph (f)(2) of this section from CAF ICC Support.

   (5) Beginning July 1, 2019, a Price Cap Carrier may no longer recover any
   amount  related  to revenue recovery under this paragraph from CAF ICC
   Support.

   (6) A Price Cap Carrier that elects to receive CAF ICC support must certify
   with its annual access tariff filing that it has complied with paragraphs
   (d) and (e) of this section, and, after doing so, is eligible to receive the
   CAF ICC support requested pursuant to paragraph (f) of this section.

   [ 76 FR 73856 , Nov. 29, 2011, as amended at  77 FR 48453 , Aug. 14, 2012;  78 FR 26268 , May 6, ;79 2013 FR 28846 , May 20, 2014]

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