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They note that Section 302(b)(3) of the 1996 Act only eliminated the Commission's  xrules and policies regarding video dialtone service that were established in CC Docket 87266.  xThey contend that since the price cap basket requirement was established in CC Docket 941,  xrather than in CC Docket 87266, the 1996 Act does not alter Bell Atlantic's requirement to  X - xestablish a video dialtone price cap basket in its 1996 Annual Access Tariff filing.y ,P X-ԍxAdelphia Opposition at 23; MCI Comments at 23; NCTA Opposition at 12.y Adelphia and  xNCTA further argue that establishing a video dialtone price cap basket should not place any  X - xburden on Bell Atlantic, so the petition should be denied.` P Xc-ԍxAdelphia Opposition at 4; NCTA Opposition at 3.` MCI agrees with Bell Atlantic that  xit cannot calculate the PCI or API for a video dialtone basket since it did not provide any service  X - xin 1995.C P X-ԍxMCI Comments at 3.C AT&T argues that should the waiver be granted, Bell Atlantic should still be required  xyto account separately for its revenues, expenses, and investment in the Dover Township video  Xy- xservice in accordance with Commission rules.D y? P Xi-ԍxAT&T Comments at 4.D In its reply, Bell Atlantic contends that none of  xithe commenters presents any reason that would justify requiring Bell Atlantic to establish a video  XK-dialtone price cap basket in its 1996 Annual Access Tariff filing.J K P X-ԍxBell Atlantic Reply at 1.J  X-  x4. Under Section 1.3 of our rules,X01Í ÍX01Í Í we are authorized to grant waivers "if good cause  X- xitherefor is shown."D  P XX"-ԍx47 C.F.R.  1.3.D As interpreted by the courts, this requires that a petitioner demonstrate that  x"special circumstances warrant a deviation from the general rule and such a deviation will serve  X- x  the public interest." RP X%-  mԍXxNortheast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990); WAIT  X&-Radio v. FCC, 418 F.2d 1153 (D.C. Cir. 1969).(# In this case, we find that the lack of demand and revenues associated with  xvideo dialtone service in the base period does not allow Bell Atlantic to compute a PCI or an API" ,((qq" for the video dialtone basket for its 1996 Annual Access Tariff filing. We conclude that this fact establishes the necessary special circumstance that warrants grant of this waiver.   x5. Section 61.48 of the Commission's rules sets out the transition rules for the video  X- xzdialtone price cap formula calculations.I  X-ԍx47 C.F.R.  61.48(j).I According to the rules, Bell Atlantic is required to  x1establish its initial PCI and API levels at 100 and adjust those levels for inflation and  xyproductivity before adding the video dialtone price cap basket to its existing price cap baskets.  xIt is mathematically impossible, however, to make the inflation adjustment if there were no  xrevenues or demand in the base period. T v ; he formula for PCI adjustment prescribed by the  xCommission's rules requires that part of the equation be divided by revenue for the base period,  X - xwhich in this case is zero.S y  XD -ԍxSee 47 C.F.R.  61.45(c).S Likewise, the formula for API adjustment requires that part of the  X - xequation be divided by demand for the base period, which in this case is also zero.S ,  X-ԍxSee 47 C.F.R.  61.46(a).S A  xkdenominator of zero results in an indeterminate factor in the equation, which means that the  xequation cannot be solved. We find that this situation requires us to grant Bell Atlantic a waiver  x\from the requirements of Sections 61.42(d)(5), 61.45 (b), 61.45(b)(3), 61.45(h), 61.47(g)(6) and  x61.48 (j) for its 1996 Annual Access Tariff filing to the extent that they deal with the price cap  X- xbasket established in Section 61.42(d)(5).  X -ԍXx47 C.F.R.  61.42(d)(5), 61.45 (b), 61.45(b)(3), 61.45(h), 61.47(h) and 61.48(j).(#ƒ Since we are granting the waiver based on Bell  x=Atlantic's inability to establish a PCI or API for its 1996 Annual Access Tariff filing, we do not  xneed to reach its argument regarding the effect of the passage of the 1996 Act on the requirement that Bell Atlantic include a video dialtone basket in that tariff filing.  X-  Rx6. ACCORDINGLY, IT IS ORDERED THAT, pursuant to Section 4(i) of the  xCommunications Act of 1934, as amended, 47 U.S.C.  154(i), and Sections 0.91 and 0.291 of  x>the Commission's Rules, 47 C.F.R.  0.91 and 0.291, the petition for waiver filed by the Bell Atlantic Telephone Companies IS GRANTED to extent provided herein. x` `   x` ` hh@FEDERAL COMMUNICATIONS COMMISSION x` `  hh@Regina M. Keeney x` `  hh@Chief, Common Carrier Bureau