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CenturyLink Average Schedule Price Cap Conversion Order

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Released: May 15, 2014

Federal Communications Commission

DA 14-654

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
)

CenturyLink Petition for Conversion of Average
)
WC Docket No. 14-23
Schedule Affiliates to Price Cap Regulation and
)
for Limited Waiver Relief
)
)

ORDER

Adopted: May 15, 2014


Released: May 15, 2014

By the Associate Chief, Wireline Competition Bureau:

I.

INTRODUCTION

1.
In this Order we grant a waiver, to the extent indicated, to allow CenturyLink, Inc.
(“CenturyLink”) to convert its average schedule study areas to the regulatory requirements applicable to
price cap carriers.1 This waiver will further the public interest by providing the carrier incentives to
maintain and promote more efficient operations and by accelerating the reduction of rates currently
subject to intercarrier compensation reform.2

II.

BACKGROUND

2.
Price Cap Conversion Orders Prior to the USF/ICC Transformation Order. Beginning
with the Windstream Order, 3 the Commission granted several waivers allowing price cap carriers to

1 See Petition of CenturyLink, Inc. for Conversion of Average Schedule Affiliates to Price Cap Regulation and for
Limited Waiver Relief WC Docket No. 14-23, at 1 (filed Jan. 31, 2014) (Petition); CenturyLink, Inc. Petition For
Conversion of Average Schedule Affiliates to Price Cap Regulation and for Limited Waiver Relief
, WC Docket No.
14-23, Public Notice, DA 14-172 (Wireline Comp. Bur. rel. Feb. 10, 2014).
2 As discussed herein, any waivers granted in this order are subject to any future reforms or rule revisions regarding
intercarrier compensation, regulation of special access services, price cap regulation, or universal service
requirements that the Commission may adopt in the future. See, e.g., Connect America Fund et al., WC Docket No.
10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663 (2011) (USF/ICC
Transformation Order
), pets. for review pending sub nom. In re: FCC 11-161, No. 11-9900 (10th Cir. filed Dec. 8,
2011); Special Access for Price Cap Local Exchange Carriers; AT&T Corporation Petition for Rulemaking to
Reform Regulation of Incumbent Local Exchange Carrier Rates for Interstate Special Access Services
, WC Docket
No. 05-25, RM-10593, 27 FCC Rcd 10557 (2012) (Special Access R&O).
3 Windstream Petition for Conversion to Price Cap Regulation and for Limited Waiver Relief, WC Docket No. 07-
171, Order, 23 FCC Rcd 5294 (2008) (Windstream Order); see also Petition of Virgin Islands Telephone
Corporation for Election of Price Cap Regulation and for Limited Waiver of Pricing and Universal Service Rules
,
WC Docket No. 10-39; China Telephone Company, FairPoint Vermont, Inc., Maine Telephone Company,
Northland Telephone Company of Maine, Inc., Sidney Telephone Company, and Standish Telephone Company
Petition for Conversion to Price Cap Regulation and for Limited Waiver Relief
, WC Docket No. 10-47; Petition of
Windstream for Limited Waiver Relief
, WC Docket No. 10-55, Order, 25 FCC Rcd 4824 (Wireline Comp. Bur.
2010); CenturyTel, Inc., Petition for Conversion to Price Cap Regulation and Limited Waiver Relief, WC Docket
(continued….)

Federal Communications Commission

DA 14-654

convert their cost company4 study areas to price cap regulation under the CALLS regulatory model.5
Under that model, carriers were required to establish initial Price Cap Indexes (PCIs) for their price cap
baskets using the rates in effect on January 1 of the conversion year and the demand from the preceding
year;6 required to target their average traffic-sensitive (ATS) rates to the appropriate target ATS rates
pursuant to section 61.3(qq) of the Commission’s rules, using an X-factor of 6.5 percent;7 and allowed to
continue to receive Interstate Common Line Support (ICLS) on a frozen per-line basis for the converted
study areas.8 Carriers were also required to forego any recovery of a presubscribed interexchange carrier
charge (PICC) or carrier common line (CCL) charge and forego assessing a $7.00 non-primary residential
line subscriber line charge (SLC).9 Carriers withdrawing cost companies from the National Exchange
Carrier Association (NECA) pool were required to employ a cost study based on the previous calendar
year’s cost and demand data to establish new initial price cap rates.10
3.
USF/ICC Transformation Order. On November 18, 2011, the Commission released the
USF/ICC Transformation Order11, which, among other things, established new rules requiring carriers to
adjust, over a period of years, many of their switched access charges effective on July 1st of each year,
with the ultimate goal of transitioning to a bill-and-keep regime. As an initial matter, the Commission
capped the vast majority of interstate and intrastate switched access rates as of December 29, 2011, and
price cap carriers were required to remove their switched access services from the traffic-sensitive and
trunking baskets.12 Price cap and rate-of-return carriers were required to make reductions to certain
intrastate switched access rates in 2012 and 2013 if specified criteria were met.13 Beginning in 2014,
price cap and rate-of-return carriers begin a series of rate reductions to transition certain terminating
(Continued from previous page)
No. 08-191, Order, 24 FCC Rcd 4677 (Wireline Comp. Bur. 2009); ACS of Alaska, Inc., ACS of Anchorage, Inc.,
ACS of Fairbanks, Inc. and ACS of the Northland, Inc., Petition for Conversion to Price Cap Regulation and
Limited Waiver Relief,
WC Docket No. 08-220, Order, 24 FCC Rcd 4664 (Wireline Comp. Bur. 2009); Petition of
Puerto Rico Telephone Company, Inc. for Election of Price Cap Regulation and Limited Waiver of Pricing and
Universal Service Rules
, WC Docket No. 07-292; Consolidated Communications Petition for Conversion to Price
Cap Regulation and for Limited Waiver Relief
, WC Docket No. 07-291; Frontier Petition for Limited Waiver Relief
upon Conversion of Global Valley Networks, Inc., to Price Cap Regulation
, WC Docket No. 08-18, Order, 23 FCC
Rcd 7353 (Wireline Comp. Bur. 2008).
4 A cost company is a rate-of-return carrier that determines its rates based on its own costs, as opposed to
determining its costs based on average schedule formulas. See, e.g., Windstream Order, 23 FCC Rcd at 5298, para.
5 n.16. By contrast, an average schedule company is a rate-of-return company that determines its costs based on
formulas approved by the Commission that are designed to produce disbursements that would be received based on
the costs of a company that is representative of average schedule companies. See 47 C.F.R. § 69.606.
5 Access Charge Reform, CC Docket No. 96-262; Price Cap Performance Review for Local Exchange Carriers, CC
Docket No. 94-1; Low-Volume Long-Distance Users, CC Docket No. 99-249; Federal-State Joint Board on
Universal Service
, CC Docket No. 96-45, 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)
(CALLS Order) (subsequent history omitted).
6 See, e.g., Windstream Order, 23 FCC Rcd at 5299-5301, paras. 11-14.
7 See, e.g., id. at 5301, paras. 15-16.
8 See, e.g., id. at 5302-04, paras. 19-22.
9 See, e.g., id.
10 See, e.g., id. at 5295, para. 3 n.4.
11 See USF/ICC Transformation Order, 26 FCC Rcd 17663.
12 See 47 C.F.R. §§ 51.907(a), 51.909(a).
13 See 47 C.F.R. §§ 51.907(b)-(c), 51.909(b)-(c).
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DA 14-654

interstate and intrastate switched access rates to bill-and-keep.14 The price cap transition occurs over six
years and the rate-of-return transition occurs over nine years.15
4.
The Commission also adopted a transitional recovery mechanism to mitigate the impact
of reduced intercarrier revenues on carriers and to facilitate continued investment in broadband
infrastructure, while providing greater certainty and predictability going forward than the status quo.16 As
part of the transitional recovery mechanism, the Commission defined as “Eligible Recovery” the amount
of intercarrier compensation revenue reductions that incumbent LECs would be eligible to recover
through a combination of end-user charges (the Access Recovery Charge (ARC)) and, where eligible and
if a carrier elects to receive it, intercarrier compensation replacement Connect America Fund support.17 A
carrier’s Eligible Recovery is based on a percentage of the reduction in revenue each year resulting from
the intercarrier compensation reform transition.18 The precise percentages and the calculation methods
vary between price cap and rate-of-return carriers, with the price cap methodology providing a faster
reduction in recovery over time.
5.
Price cap and rate-of-return LECs with Eligible Recovery were permitted to assess an
ARC on consumers in the form of a monthly fixed charge beginning on July 3, 2012.19 Subject to certain
identical limitations, the Commission allowed an annual residential and single-line business ARC rate
increase of $0.50 and an annual multi-line business ARC rate increase of $1.00. Price cap LECs are
allowed to make five such increases, and rate-of-return LECs may make six such increases.20 If an
incumbent LEC cannot recover its entire Eligible Recovery through ARCs and is otherwise eligible, it
may opt to receive the remainder from intercarrier compensation replacement Connect America Fund
support.21 Intercarrier compensation replacement Connect America Fund support for price cap LECs
phases out over three years beginning in 2017.22
6.
In the USF/ICC Transformation Order, the Commission also revised the rules governing
high cost support for price cap LECs. Specifically, the Commission froze all forms of universal service
support for price cap carriers.23 Under these revised rules, rate-of-return carriers affiliated with holding
companies for which the majority of access lines are regulated under federal price caps are treated as
price cap carriers for the purpose of calculating their frozen high cost support.24

14 See 47 C.F.R. §§ 51.907(d), 51.909(d).
15 See 47 C.F.R. §§ 51.907, 51.909.
16 USF/ICC Transformation Order, 26 FCC Rcd at 17677, para. 36. In adopting the recovery mechanism, the
Commission explained that it did so in large part “to provide predictability to incumbent carriers that had been
receiving implicit ICC subsidies [and] to mitigate marketplace disruption during the reform transition. . . .” Id. at
17962-63, para. 858.
17 Id. at 17957, para. 850. In determining how the transitional recovery should be funded, the Commission
concluded that “it is appropriate to first look to customers paying lower rates for some limited, reasonable recovery,
and adopt[ed] a number of safeguards to ensure that rates remain affordable and that consumers are not required to
contribute an inequitable share of lost intercarrier revenues.” Id.
18 Id. at 17957-58, para. 851.
19 USF/ICC Transformation Order, 26 FCC Rcd at 17957, para. 850; July 3, 2012 Annual Access Charge Tariff
Filings
, WCB/Pricing File No. 12-07, Order, 27 FCC Rcd 2981, 2982, para. 3 (Wireline Comp. Bur. 2012).
20 47 C.F.R. § 51.917(e).
21 47 C.F.R. §§ 51.915(f), 51.917(f).
22 47 C.F.R. § 51.915(f)(3)-(5).
23 47 C.F.R. § 54.312(a).
24 Id.
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DA 14-654

7.
2012 Average Schedule Conversion Order. In the 2012 Average Schedule Conversion
Order, the Commission granted a waiver permitting several carriers to withdraw their average schedule
study areas from the NECA common line and traffic-sensitive access tariffs and convert them to price cap
regulation.25 In that order, the Commission waived certain of its rules to allow each involved carrier to
establish a single interstate access tariff for its average schedule study areas exiting the NECA interstate
tariffs and approved a methodology for establishing initial interstate switched and special access rates
using NECA switched and special access rates adjusted to reflect the extent the exiting study areas were
either a net contributor to, or a net recipient from, the NECA traffic-sensitive pool.26 The Commission
concluded that the switched access rates developed using this methodology would be deemed to be the
rates that are capped by section 51.907(a).27 For special access services, the Commission required the
carriers to file supporting materials establishing PCIs using the same methodology.28 The 2012 Average
Schedule Conversion Order
also noted that average schedule companies that convert to price cap
methodology will become subject to the price cap transition rules in section 51.907 and to the price cap
recovery rules for non-CALLS study areas set forth in section 51.915 of the Commission’s rules.29
8.
CenturyLink’s Petition. On January 31, 2014, CenturyLink filed a waiver petition
requesting authority to convert CenturyTel of Chester, Inc., CenturyTel of Postville, Inc., and CenturyTel
of the Midwest-Wisconsin Region (collectively referred to as “CenturyLink Average Schedule
Affiliates”) to price cap regulation effective July 1, 2014.30 Concurrently, CenturyLink would withdraw
the CenturyLink average schedule affiliates from the NECA access tariffs. CenturyLink proposes that the
conversion be subject to the price cap regulatory structure established in the CALLS Order, the USF/ICC
Transformation Order
and the 2012 Average Schedule Conversion Order.31 CenturyLink indicates that it
will establish a single interstate access tariff with blended switched and special access rates for the three
study areas and will develop switched and special access rates using the net-contribution approach
employed in the 2012 Average Schedule Conversion Order. CenturyLink states that approval of the
waiver is in the public interest,32 would provide CenturyLink administrative efficiencies by allowing it to
be regulated entirely as a price cap company,33 and would not have any impact on the CenturyLink
Average Schedule Affiliates’ Connect America Funding.34 No comments were filed on CenturyLink’s
petition.

25 Joint Petition of Price Cap Holding Companies for Conversion of Average Schedule Affiliates to Price Cap
Regulation and for Limited Waiver Relief; Consolidated Communications Companies Tariff F.C.C. No. 2; Frontier
Telephone Companies Tariff F.C.C. No. 10; Windstream Telephone Systems Tariff F.C.C. No. 7
, Order, 27 FCC Rcd
15753 (2012) (2012 Average Schedule Conversion Order). The 2012 Average Schedule Conversion Order
approved a two-step process: first the carriers withdraw from the NECA tariff and establish their own interstate
access rates under rate-of-return regulation, and then convert to the price cap regulatory structure on January 1,
2013. The summary reflects the process as if it had been a single step process.
26 Id. at 15760-61, para. 17.
27 Id.
28 Id. at 15761, para. 18
29 Id. at 15763-64, para. 28.
30 See Petition at 1.
31 See id. at 2-3.
32 See id. at 1.
33 Id. at 3.
34 Id. at 14.
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III.

DISCUSSION

A.

Conversion to Price Cap Regulation Is in the Public Interest

9.
We find that good cause exists to grant, to the extent described below, a waiver to permit
CenturyLink to convert, according to its proposed transition plan, its average schedule study areas to price
cap regulation on July 1, 2014.35 Petitioners seek to take advantage of the opportunities provided by
section 61.41(a)(3) of the Commission’s rules, the Windstream Order, and the 2012 Average Schedule
Conversion Order
to convert their average schedule study areas to price cap regulation.36 Specifically, for
interstate switched access charges, Petitioners propose to cap switched access rates in accordance with
section 51.907(a) and to adopt the shorter price cap transition timetable and the price cap recovery
mechanism rather than the procedures applicable to rate-of-return carriers. 37 Petitioners will continue to
receive Connect America Fund support as price cap carriers and will establish PCIs for their interstate
special access services in a manner consistent with the approach specified in the 2012 Average Schedule
Conversion Order.
38
10.
As an initial matter, we find that the request presented by CenturyLink offers the public
interest benefits generally attributed to incentive regulation – specifically, they provide incentives for the
carrier to become more efficient, innovative, and productive.39 In 1990, the Commission concluded that
incentive-based regulation is preferable to rate-of-return regulation, finding that several benefits would
flow from the adoption of price cap regulation, including incentives for carriers to become more
productive, innovative, and efficient.40 The Commission also found that price cap regulation is likely to
benefit consumers directly or indirectly through lower access prices. More recently, in the USF/ICC
Transformation Order
, the Commission restated the benefits of price cap regulation and again encouraged
carriers to convert from rate-of-return to price cap regulation.41 Rather than detailing a rule to govern
such conversions, however, the Commission noted that future conversions from rate-of-return regulation
to price cap regulation would be addressed through the waiver process.42
11.
Grant of the waiver requested here will also facilitate the achievement of Commission
policies. Among other things, price cap carriers’ terminating End Office Access Service rates will
transition to bill-and-keep by July 1, 2017, three years before rate-of-return carriers’ terminating End
Office Access Service rates will complete such transition.43 Price cap carriers also must, under certain

35 Generally, the Commission’s rules may be waived for good cause shown. 47 C.F.R. § 1.3. The Commission may
exercise its discretion to waive a rule where the particular facts make strict compliance inconsistent with the public
interest. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (Northeast Cellular). In
addition, the Commission may take into account considerations of hardship, equity, or more effective
implementation of overall policy on an individual basis. WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir.
1969); Northeast Cellular, 897 F.2d at 1166. Waiver of the Commission’s rules is therefore appropriate only if
special circumstances warrant a deviation from the general rule, and such deviation will serve the public interest.
Northeast Cellular, 897 F.2d at 1166.
36 47 C.F.R. § 61.41(a)(3).
37 Id. at 13.
38 47 C.F.R. § 61.41(a)(3).
39 See Policy and Rules Concerning Rates for Dominant Carriers, CC Docket No. 87-313, Second Report and
Order, 5 FCC Rcd at 6790, para. 31 (1990).
40 Id.
41 USF/ICC Transformation Order, 26 FCC Rcd at 17940, para. 814.
42 Id.
43 See 47 C.F.R. §§ 51.907(f), 51.909(i).
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conditions, reduce their terminating tandem switched rates to bill-and-keep on July 1, 2018.44 The rate
reductions for price cap carriers under section 51.907 reduces terminating switched access rates of price
cap carriers more quickly than section 51.909 reduces the comparable rates for rate-of-return carriers,
with Connect America funding phasing out over three years for price cap carriers beginning in 2017.
These procedures for interstate switched access services and the capping of special access rates under the
current price cap structure will ensure that these rates remain reasonable while affording petitioners the
opportunity to benefit from incentive regulation. We further note that because the holding company of
CenturyLink is already regulated pursuant to price cap regulation, the CenturyLink Average Schedule
Affiliates’ Connect America funding support is already calculated as if it were price cap regulated, and
therefore, grant of this Petition will not impact Connect America funding. We emphasize that the relief
granted in this Order is subject to any future reforms or rule revisions regarding intercarrier
compensation, the regulation of special access services, price cap regulation, or universal service
requirements that the Commission may adopt in the future.45

B.

Transition to Price Caps

12.
Above, we determined that the public interest would be served if CenturyLink was
allowed to convert its average schedule study areas to price cap regulation on July 1, 2014. This will
require CenturyLink to take certain steps to comply with price cap regulations and the intercarrier
compensation rules applicable to price cap regulated carriers, which we outline in the following
paragraphs.
13.
In its petition, consistent with the approach approved in the 2012 Average Schedule
Conversion Order, CenturyLink proposes to use annualized settlement data at an 11.25 percent rate-of-
return period for the period from January 1, 2013, through June 30, 2013, and the associated annualized
demand to develop a single set of blended interstate switched access rates that reflect the extent to which
the carriers are net contributors to the NECA pool.46 CenturyLink states that these would be the rates it
would adjust to develop rates for the CenturyLink Average Schedule Affiliates’ initial traffic-sensitive
access tariff filing. CenturyLink requests that the Commission deem these adjusted rates to be the
December 29, 2011 rates for the CenturyLink Average Schedule Affiliates that are capped by section
51.907(a).47 We find that this approach is consistent with the 2012 Average Schedule Order, and
therefore, we find it reasonable for CenturyLink to use annualized settlement data at an 11.25 percent rate
of return for the period from January 1, 2013 through June 30, 2013, and associated annualized demand to
develop switched access rates. This process allows CenturyLink to develop the amount of its net
contribution to the NECA traffic-sensitive pool for switched access services. The amount of the net
contribution associated with switched access then allows CenturyLink to establish reduced switched
access rates reflecting that contribution. The switched access rates developed using this methodology will
be deemed to be the December 29, 2011 rates that are capped by section 51.907(a), and we accordingly
waive that section to the extent indicated herein.48
14.
Consistent with the 2012 Average Schedule Order, CenturyLink proposes to use the same
net-contribution process described above to calculate special access tariff rates.49 We agree and conclude

44 47 C.F.R. § 51.907(b).
45 See, e.g., USF/ICC Transformation Order, 26 FCC Rcd at 17663; Special Access R&O, 27 FCC Rcd at 10557.
46 See Petition at 4. In addition, section 51.909(a)(4) of the Commission’s rules establishes a methodology that
requires NECA to adjust its switched access rate caps upon carriers entering and exiting the NECA pool. 47 C.F.R.
§ 51.909(a)(4).
47 See Petition at 5.
48 47 C.F.R. § 51.907(a). We note that the capped terminating end office rates will begin to be reduced as of July 1,
2014. 47 C.F.R. § 51.907(d).
49 CenturyLink Petition at 6-7.
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that CenturyLink should calculate their special access rates using the annualized settlement data at an
11.25 percent rate of return for the period from January 1, 2013, through June 30, 2013. As the
Commission concluded in the 2012 Average Schedule Conversion Order, using a common period of
measurement for establishing both switched and special access rates avoids possible rate distortions
because of changes that may have occurred in average schedule formulas from one year to the next.50
15.
As part of the transition, CenturyLink proposes to issue a revised tariff for CenturyLink
Operating Companies Tariff No. 6 to include CenturyTel of Chester, Inc., CenturyTel of Postville, Inc.,
and CenturyTel of the Midwest-Wisconsin (Wayside) using the methodology to establish rates discussed
above.51 CenturyLink would use a blended rate for all three companies.52 According to CenturyLink, in
the new interstate tariff, common line rates would be set to equal the existing rates in NECA Tariff FCC
No. 5 adjusted according to the 2014 annual filing price cap rules that will then be applicable.53 Effective
the same date, the CenturyLink Average Schedule Affiliates would withdraw from the NECA pools.54
We agree with CenturyLink’s proposal and direct CenturyLink to file those tariffs pursuant to the 2014
Annual Access Charge Tariff Filing with a July 1, 2014 effective date along with the relevant Tariff
Review Plan (TRPs) spreadsheets required in the filing.55
16.
CenturyLink must file supporting materials establishing initial PCIs for special access
service. Pursuant to the methodology outlined in the 2012 Average Schedule Order, CenturyLink should
use the special access rates developed pursuant to the above procedures and the appropriate 2013 demand
to develop its PCI for the special access basket.56 Under the special circumstances presented by these
average schedule study areas leaving the NECA pool, we find that those special access rates and demand
are the appropriate rates and demand to use in setting initial PCIs for the special access basket.57 As in
previous conversions to price cap regulation under the CALLS rules, there is no requirement for further
reductions in the special access PCI.58 Consistent with the Commission’s price cap rules, the
CenturyLink Average Schedule Affiliates must establish Actual Price Indexes, service categories, and
Service Band Indexes for the special access basket.
17.
Beginning July 1, 2014, the CenturyLink Average Schedule Affiliates will become
subject to the price cap transition rules in section 51.907 and to the price cap recovery rules for non-
CALLS study areas set forth in section 51.915.59 Thus, CenturyLink will need to file TRP worksheets for

50 2012 Average Schedule Order, 27 FCC Rcd at 15761, para. 18.
51 Id. at 7-8.
52 Id.
53 Id.
54 Id. We note that CenturyLink requested a waiver if needed of section 69.3(i) to permit them to notify NECA of
the CenturyLink Average Schedule Affiliates’ withdrawal from the Association tariff within thirty (30) days after a
Commission order granting this Petition. CenturyLink Petition at 6. Because CenturyLink timely notified NECA of
its withdrawal from its tariff by March 1, 2014, no waiver is needed. See Letter from Jennifer Leonard, Director,
Access Tariffs and Costs, to Julie Veach, Chief, Wireline Competition Bureau (filed March 10, 2014).
55 See July 1, 2014 Annual Access Charge Tariff Filings, WC Docket No. 14-48, Order, DA 14-404 (Pricing Pol.
Div. rel. Mar. 25, 2014); Material to be Filed in Support of 2014 Annual Access Tariff Filings, WC Docket No. 14-
48, Order, DA 14-494 (Pricing Pol. Div. rel. Apr. 15, 2014) (TRP Order). In addition, as CenturyLink notes in its
Petition, it will also need to file new intrastate tariff filings because it is likely that the new rates for the CenturyLink
Average Schedule Affiliates will be lower than the previous rates. CenturyLink Petition at 8.
56 2012 Average Schedule Order, 27 FCC Rcd at 15763, para. 27.
57 Id.
58 See 47 C.F.R. § 61.45(b)(1)(iv).
59 47 C.F.R. § 51.915.
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the 2014 Annual Access Tariff Filing reflecting the election of price cap regulation following the
recovery procedures set forth in section 51.915(d)(1)(iii).60 The demand that the CenturyLink Average
Schedule Affiliates shall use in calculating its Eligible Recovery in future years should be the relevant
demand associated with the development of its Base Period Revenue. The CenturyLink Average
Schedule Affiliates may not assess a non-primary Residential SLC or a PICC, consistent with previous
price cap conversions.61

IV.

ORDERING CLAUSES

18.
Accordingly, IT IS ORDERED, pursuant to sections 4(i), 201-203, and 254(g) of the
Communications Act of 1934, as amended, 47 U.S.C. §§ 154(i), 201-203, and 254(g), that the petition for
waiver file by CenturyLink IS GRANTED to the extent described herein.
19.
IT IS FURTHER ORDERED that this order SHALL BE EFFECTIVE upon release.
FEDERAL COMMUNICATIONS COMMISSION
Deena M. Shetler
Associate Chief
Wireline Competition Bureau

60 47 C.F.R. § 51.915(d)(1)(iii); see also TRP Order.
61 See, e.g., Windstream Order, 23 FCC Rcd at 5302-04, paras. 19-22.
8

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