Section 407-204-5 - RATES FOR BASIC SERVICE CALLING AREA OPTIONSA.Rates for BSCA OptionsWhen a LEC implements new or modified BSCAs, it may propose monthly Economy and Premium option rates for the recovery of additional equipment and administrative costs and revenue losses resulting from the provision of the new or modified BSCA calling options. The Commission shall review and approve the rates. Beyond any rate increase that may occur as a result of a change in a home exchange's rate group, rate increases shall apply to a specific exchange or to several exchanges and to each option as follows:
1.Exchanges. When the BSCA of a home exchange is increased, the LEC may propose: a. Rates for the home exchange that will recover the costs and revenue losses that occur as a result of the change in the BSCA; orb. Rates for other exchanges that, in combination with rate increases for the home exchange, will recover some of the costs and revenue losses if the rates for the home exchange under sub-paragraph a would be substantially higher than rates for other exchanges served by the LEC that have equivalent calling areas; orc. Rates for all or most of the LEC's exchanges that will recover the costs and revenue losses associated with the change in BSCA when it applies generally to all or most of the LEC's exchanges, as when a change in this Chapter requires a systematic change in the definition of BSCAs or calling options.2.Options. Generally, when the number of exchanges in a BSCA increases, the rates of the option that receives the greater change in flat-rate unlimited calling should increase by a relatively greater amount than the rates for the other option. A LEC may propose a different balance if: a. Increasing the rates for the economy option would result in rates for the two options that are too similar; orb. The rates for the premium option would be so high that they would be likely to deter customers from subscribing to that option.B.Per-Minute Rates for BSCA Exchanges Outside the Flat-Rate Calling Area. Calls made from the home exchange to exchanges that are within the BSCA but not included in the flat-rate unlimited-calling portion of the Economy option shall be priced at five cents per minute for customers who subscribe to the Economy option unless the call is to the same municipality. Once each year, the Commission, after reviewing competitive interexchange market conditions, may adjust the rate.C.Tracking Account and Filing Requirements for New or Revised Options; Subsequent Rate Adjustments. 1.Tracking Account. Each LEC must maintain a tracking account, by exchange, that records the revenue effects of the BSCA options for the first 12 months after any changes to the BSCA or after BSCA options have been implemented or updated.2.Reporting Requirements; Rate Adjustments. Within 56 days (8 weeks) after the 12-month tracking period, the Company must file a written report with the Commission that shows the revenue effects of the BSCA options for the first 12 months after a change to the BSCA or after a BSCA calling option has been added or changed. If the tracking account has a positive balance, the LEC must file a proposal to return the excess to customers and to lower prospective rates with its report. If the tracking account has a negative balance, the LEC may file proposed rates for Commission review to recover the shortfall that occurred during the 12-month deferral period and for the period following the 12-month deferral period but prior to the effective date of any revised rates, and to adjust prospective rates to avoid a similar revenue shortfall in the future. Following review, the Commission, as provided in 35-A M.R.S.A. §1306(1), may approve or disapprove the proposed rates or may substitute other rates that it finds are just and reasonable.65- 407 C.M.R. ch. 204, § 5