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$///DA 95497,4/6/95,RO///$ $// MO&O Suspending Rates; CC Dkit. 94139 & 94157; DA 95497 //$ $/ Section 0.291 Delegated Authority /$ TRANSMITTED FOR FCC RECORD ONLY  ]- 2 Before the FEDERAL COMMUNICATIONS COMMISSION  \-JWashington, D.C. 20554 ă x` `  hh@hpp  DA 95497 X(# X(#P  ] -In the Matter of  hh@h) x` `  hh@h)  ]u - p Bell Atlantic Telephone Companies@h)ppCC Docket Nos. 94139 and 94157 x` `  hh@h)  ]a-Tariff F.C.C. No. 1, Transmittal No. 747h) x` `  hh@h)  ]9-  MEMORANDUM OPINION AND ORDER  \0- SUSPENDING RATES ă N Adopted: March 15, 1995; Released: March 15, 1995 By the Acting Chief, Tariff Division, Common Carrier Bureau:  ]- I. INTRODUCTION ă  ]-  p6x` ` 1. On February 16, 1995, Bell Atlantic Telephone Companies (Bell  xAtlantic) filed Transmittal No. 747 to revise rates in its Tariff F.C.C No. 1 which became  ]- xeffective on February 11, 1995.W[ XS - xmԍ #o\  PCXP# See Bell Atlantic Tariff F.C.C. No. 1, Transmittal No. 704, CC Docket No. 94139,  xjMemorandum Opinion and Order Suspending Rates (Tar. Div., Com. Car. Bur., rel. Feb. 9, 1995)  X%"-(SFAS112 Suspension Order). W Bell Atlantic states that these revisions correspond to  x/earlier revisions to its price cap indexes to reflect the recovery of exogenous amounts  xassociated with the implementation of Statement of Financial Accounting Standard 106,  xj"Employers Accounting for Postretirement Benefits Other Than Pensions" (SFA106) and  xjStatement of Financial Accounting Standard 112, "Standards for Employers' Accounting  x[for Postemployment Benefits" (SFAS112). MCI Telecommunications Corporation (MCI)  x[filed a petition to reject or suspend and investigate Transmittal No. 747 and Bell Atlantic"#K0*0*0*""  xfiled a reply. In this Order, we suspend the Transmittal No. 747 revisions for one day and make these revisions subject to investigation in the abovecaptioned dockets.  [-MII. BACKGROUND ă  [- ` Ax2.` ` On September 1, 1994, Bell Atlantic filed its Transmittal No. 690 to increase  x its interstate access rates based upon exogenous cost adjustments associated with its  [- ximplementation of SFAS106.6 X^- xԍ#o\  PCXP# See Bell Atlantic Telephone Companies Tariff F.C.C. No. 1, Transmittal No. 690 (filed Sept. 1, 1994). Bell Atlantic adjusted its price cap index (PCI) level  xupward to reflect the exogenous treatment for the costs of certain other postemployment  xLbenefits (OPEBs). The changes in OPEB costs for local exchange carriers (LECs) w oH ere oH   [- x[implemented by the Common Carrier Bureau (Bureau) in 1993.b6 X - x@ԍ #o\  PCXP#Treatment of Local Exchange Carrier Tariffs Implementing Statement of Financial  xlAccounting Standards, "Employers Accounting for Postretirement Benefits Other Than  X -Pensions," CC Docket No. 92101, 8 FCC Rcd 1024 (Com. Car. Bur. 1993) (OPEB Order). On December 29, 1994,  xthe Bureau suspended Transmittal No. 690 for one day and initiated an investigation of the  [- xtariff in CC Docket No. 94157.A6 XI- x#o\  PCXP#э See Bell Atlantic Telephone Companies Tariff F.C.C. No. 1, Transmittal No. 690, NYNEX  xTelephone Companies Tariff F.C.C. No. 1, Transmittal No. 328, Pacific Bell Tariff F.C.C. No.  x128, Transmittal No. 1738, US West Communications, Transmittal No. 550, CC Docket No. 94 X- x157, Memorandum Opinion and Order, DA 941613 (Com. Car. Bur., rel. Dec. 29, 1994) (SFAS X-106 Suspension Order). A On October 13, 1994, Bell Atlantic filed Transmittal No.  [ - x704 to increase rates based upon its SFAS112 costs. : 6 X- x#o\  PCXP#э See Bell Atlantic Telephone Companies Tariff F.C.C. No. 1, Transmittal No. 704 (filed Oct. 13, 1994). The Tariff Division suspended  xkTransmittal No. 704 for one day and made the rates subject to our investigation in CC  [ -Docket No. 94139. 6 X-#o\  PCXP#э See SFAS112 Suspension Order, supra at note 1.  [t - ` x3.` ` In a letter submitted to the Commission on February 14, 1995, two days prior  x=to its filing of Transmittal No. 747, Bell Atlantic asserts that the revisions it was making  xin that transmittal reflect the recovery of its SFAS106 and SFAS112 exogenous amounts  [V- xover a shorter period of time.V6 X"- xM#o\  PCXP#э See Letter from Michael R. McCullough, Bell Atlantic to Secretary, FCC, dated Feb. 14, 1995. This shorter time period results because the effective dates  xyof Transmittal Nos. 690 and 704 were deferred beyond the initial effective dates of those  xtransmittals. In that letter, Bell Atlantic shows adjustments to its PCI to take into account  xSFAS106 and SFAS112 accounting changes. The transmittal before us here therefore"80*(("  xraises the same issues as those already set for investigation in CC Docket Nos. 94139 and 94157.  [-x  III. POSITIONS OF THE PARTIES ă  [- ` 2x4.` ` On February 22, 1995, MCI Telecommunications Corporation (MCI) filed a  xjpetition to reject or, in the alternative, to suspend and investigate Bell Atlantic Transmittal  xjNo. 747. In its petition, MCI argues that Bell Atlantic did not include the PCI adjustment  xrequired by Section 61.49(a) of the Commission's Rules, 47 C.F.R.  61.49 (a) in its  [- xtransmittal but instead in a letter submitted on February 14, 1995.e6 X, -#o\  PCXP#э MCI Petition at 48.e According to MCI, the  xLECs are required to file index information and the calculations underlying the index levels  [ - x.reflected in their transmittals. a y6 X-ԍ#o\  PCXP# Id. at 5.a MCI contends that Bell Atlantic's letter of February 14 is  xnot subject to the same review process as a tariff. According to MCI, by failing to file the  xLnecessary information in its transmittal, Bell Atlantic is attempting to avoid the possibility  [t - xthat its transmittal adjusting the PCI would be suspended and investigated or rejected. b t *6 S\-ԍ Id. at 89. #o\  PCXP#b  xFinally, MCI contends that the Bell Atlantic letter raises the same issues of lawfulness the  [`-Commission found in the SFAS112 Suspension Order.F `6 X- x?#o\  PCXP#э Id. at 1112, citing SFAS 112Suspension Order, supra at note 1. In its petition, MCI  xZcontends that Bell Atlantic unlawfully increased its Interconnection Charge by using calculations  X- x?based on the wrong price cap indexes. Id. at 1011. In a letter filed March 10, 1995, MCI  x=withdrew this claim from its petition. Letter from Christopher Bennett, MCI, to Secretary, FCC, dated March 10, 1995.F  [L- ` x5.` ` In its reply, Bell Atlantic states that it complied with all of the filing  x\requirements set out in the Commission's rules, but that MCI failed to follow Section  x61.33(d) of the Commission's Rules, 47 C.F.R.  61.33 (d). According to Bell Atlantic,  x=that rule section requires petitions to be personally served on the filing carrier or sent via  [$- xzfacsimile for tariff filings with notice periods of 15 days or less.j $ 6 X"-ԍ#o\  PCXP# Bell Atlantic Reply at 1.j Finally, Bell Atlantic  xMmaintains that changes to the PCI can be ma oH d oH e by letter and that this is an established  [-practice of making changes when tariff revisions are not required._  6 X%-ԍ#o\  PCXP# Id. at 4._ " 0*((3"Ԍ [- ` Bx6.` ` In addition, Bell Atlantic maintains that Transmittal No. 747 was merely a  xx"trueup" to recover the exogenous costs associated with SFAS106 and SFAS112, which  [- xthe Commission has already found may be included in a revised access tariff filing.-6 Xr- xkԍ #o\  PCXP#Id. at 2, citing #o\  PCXP#SFAS106 Suspension Order, supra at note 4 and SFAS112 Suspension  X[-Order, supra at note 1.- Bell  x.Atlantic further states that it filed this transmittal because of delays in the effective dates  xof the original tariffs that reduced the amount of the exogenous costs that could have been  xrecovered before the annual 1995 filing. Bell Atlantic maintains that this filing restores  xkthose amount by adjusting its rates to recover the same amount of revenue in the new  [-shorter (four month) period of time.Yb6 X -ԍ#o\  PCXP# Id.Y  [- III. DISCUSSION ă  [ - ` x7.` ` As an initial matter, we conclude that Bell Atlantic complied with Section  xO61.49 (a) of the rules when it filed Transmittal No. 747 because that transmittal  xspecifically references Bell Atlantic's February 14, 1995 letter which contained the cost  xsupport data necessary to comply with our rules. While under these circumstances the  xMrequirements of Section 61.49 (a) of the rules were met, we remind carriers to file all  x]relevant cost support data with their transmittals to avoid any questions about their  [V-compliance with our rules.vV6 X'- xԍ#o\  PCXP# We conclude Bell Atlantic is correct that MCI was required by the Commission's Rules  X- xLto serve Bell Atlantic either personally or by facsimile with a copy of its petition. See Sections  xz61.33(d) and 1.773(a)(4) of the Commission's Rules, 47 C.F.R.  61.33(d), 1.773 (a)(4). While  xjwe find that Bell Atlantic received a copy of MCI's petition in time to file a timely response and  xtherefore was not prejudiced by MCI's action, we expect parties to fully comply with our rules regarding service of pleadings.  [B- ` Rx8.` ` As indicated above, Bell Atlantic states in Transmittal No. 747 that it is  xproposing to revise its interstate access rates to reflect an adjustment of its exogenous costs  xfor SFAS106 and SFAS112. According to Bell Atlantic, the exogenous costs for these  xypostemployment benefits are the same as those requested in its Transmittal Nos. 690 and  xx704. These transmittals were suspended because Bell Atlantic's supporting information was  [- xy"insufficient to answer basic questions."Q 6 X$-ԍ#o\  PCXP#  SFAS 112 Suspension Order, supra at para. 12. While the Commission has granted exogenous  xKtreatment of these postemployment benefits, the question of the specific amount "oHof increases that are "eligible for" 0*(("  [- xexogenous treatment is subject to investigation.6 X- xyԍ #o\  PCXP# SFAS106 Suspension Order, supra at note 4; SFAS112 Suspension Order, supra. at note 1.#o\  PCXP# Transmittal No. 747 raises issues similar  xyto those raised in the tariffs currently subject to investigation in CC Docket Nos. 94157  x<and 94139 and, therefore, we are suspending Transmittal No. 747 and including the issues presented therein in these two pending investigations.  [-  [-IV. ORDERING CLAUSES ă  [- ` Cx9.` ` Accordingly, IT IS ORDERED that, pursuant to Section 204(a) of the  xCommunications Act of 1934, 47 U.S.C.  204(a), and Section 0.291 of the Commission's  x.Rules, 47 C.F.R.  0.291, the revised rates set forth in Bell Atlantic Tariff F.C.C. No. 1,  xjTransmittal No. 747 ARE SUSPENDED for one day from the current effective date and  xyan investigation of those rates is included with CC Docket Nos. 94157 and 94139. Bell  xAtlantic SHALL FILE a supplement reflecting this suspension no later than five days from the release of this Order.  [j- ` x 10.` ` IT IS FURTHER ORDERED that, pursuant to Sections 4(i) and 204(a) of the  xZCommunications Act, 47 U.S.C.  154(i), 204 (a), and Section 0.291 of the Commission's  x Rules, 47 C.F.R.  0.291, Bell Atlantic SHALL KEEP ACCURATE ACCOUNT of all amounts received that are associated with the rates that are the subject of this investigation.  [8- ` bx 11.` ` IT IS FURTHER ORDERED that Bell Atlantic SHALL INCLUDE A  xSTATEMENT in all subsequent transmittals revising rates indicating whether, and to what  xextent, the price change is predicated upon the exogenous cost claim set forth in  [-Transmittal No. 747.;b6 X:- x#o\  PCXP##o\  PCXP#э#o\  PCXP# We anticipate that any such transmittals will be suspended for one day, included in this investigation, and made subject to an accounting order.; " 0*((: "Ԍ [- ` x 12.` ` IT IS FURTHER ORDERED that the petition to reject or to suspend and  xinvestigate Bell Atlantic Transmittal No. 747 filed by MCI Telecommunications Corporation IS GRANTED to the extent discussed above and otherwise IS DENIED.  [- x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `  hhGeraldine A. Matise x` `  hhActing Chief, Tariff Division x` `  hhCommon Carrier Bureau