"PCIt = PCIt - 1[1 + w[GDP-PI - X] + Z / R]."
PCIt - 1 = PCIt -1[1 + w[GDP-PI - X] + Z / R]
Where the terms in the equation are described:
GDP-PI = For annual filings only, the percentage change in the GDP-PI between the quarter ending six months prior to the effective date of the new annual tariff and the corresponding quarter of the previous year. For all other filings, the value is zero.
X = For the CMT, traffic sensitive, and trunking baskets, for annual filings only, the factor is set at the level prescribed in paragraphs (b)(1)(ii) and (iii) of this section. For the interexchange basket, for annual filings only, the factor is set at the level prescribed in paragraph (b)(1)(v) of this section. For the special access basket, for annual filings only, the factor is set at the level prescribed in paragraph (b)(1)(iv) of this section. For all other filings, the value is zero.
g = For annual filings for the CMT basket only, the ratio of minutes of use per access line during the base period, to minutes of use per access line during the previous base period, all minus 1.
Z = The dollar effect of current regulatory changes when compared to the regulations in effect at the time the PCI was updated to PCIt-1, measured at base period level of operations.
Targeted Reduction = the actual possible dollar value of the (GDP-PI - X) reductions that will be targeted to the ATS Charge pursuant to § 61.45(i)(3) . The reductions calculated by applying the (GDP-PI - X) portion of the formula to the CCL element within the CMT basket will contain the "g" component, as defined above.
R = Base period quantities for each rate element "I", multiplied by the price for each rate element "I" at the time the PCI was updated to PCIt - 1.
w = R + Z, all divided by R (used for the traffic sensitive, trunking, and special access baskets).
wix = R-(access rate in effect at the time the PCI was updated to PCIt - 1 * base period demand) + Z, all divided by R.
PCIt = The new PCI value.
PCIt -1 = the immediately preceding PCI value.
Where "g" is defined in § 61.45(b)(1)(i) .
(CMT revenue in a $0.0095 Area -CCL revenue in a $0.0095 Area) * (GDP-PI -X) + (CCL Revenue in a $0.0095 Area) * [(GDP-PI - X) - (g / 2)] / [1 + (g / 2)]
47 C.F.R. §61.45