Section 407-289-15 - REVENUE ALLOCATION - SAFE HARBORThis Section shall not apply to an ILEC that is governed by an Alternative Form of Regulation as it is defined in 35-A M.R.S.A. Chapter 91.
A.Safe Harbor Discount Allocation1.Jurisdictional revenue limiter. The discount percentage applied to jurisdictional revenues shall not exceed the discount percentage applied to non-jurisdictional revenues.2.Calculationsa.Discount percentage calculation. The "undiscounted revenue" is a reasonable estimation of the sum of the revenue that would be received for a group of bundled service components if those components were purchased individually. The "discount amount" is the difference between the undiscounted revenue and the revenue assumed to be actually received for those same bundled components when sold as part of the bundled service. The "discount percentage" is the ratio of the discount amount to the undiscounted revenue.b.Jurisdictional revenues calculation. Jurisdictional revenues shall include revenues for all bundled service components that are or would be imputed to the ILEC for ratemaking purposes. For the purposes of this Chapter, intrastate interexchange service offered by an ILEC's affiliate shall be included in the ILEC's jurisdictional revenues.c.Separating interexchange service. The intrastate portion of revenue derived from interexchange service that applies on an unseparated basis to both intrastate and interstate interexchange service shall be determined by applying the ratio of Maine intrastate directly assigned retail revenues (e.g., usage charged at a per-minute rate) to total (intrastate plus interstate) directly assigned retail revenue for service rendered in Maine. Upon petition by an ILEC, the Commission or the Director of Finance may approve an alternative separation method.d.Purchases from a third party. A bundled service component that the ILEC purchases from a third party and for which the ILEC has no ability to obtain or extract a discount may be excluded from the calculations carried out pursuant to this section.e.Subscriber Line Charge (SLC). The SLC may be excluded from the calculations carried out pursuant to this section.f.Estimations. The ILEC may reasonably estimate portions of the discount percentage calculations by considering revenue that would be received by subsets of customers, by estimating minutes of use of unlimited services, and by other means made necessary by the terms of the bundled and individual services.B.Treatment of safe harbor discount allocation1.Conformance to safe harbor. If an ILEC allocates revenues received for a bundled service using the safe harbor for discount allocation established in section 15(A), the allocation will be considered just and reasonable for the purposes of ratemaking and establishing the level of universal service the ILEC receives.2.Non-conformance. If an ILEC allocates revenues received for a bundled service using a method other than the safe harbor for discount allocation established in section 15(A), the treatment of the revenues received from the bundled service shall be determined at the time the Commission conducts a rate proceeding or determines the level of universal service the ILEC receives.C.Reporting. For each bundled service it offers, the ILEC shall submit the following information, at the Commission's request and annually at a time to be established by the Commission. 1. The number of customers that received the bundled service2. The annual revenue received in payment for the bundled service3. Information that shows the extent to which the bundled service price is likely to conform to the safe harbor for a bundled service price4. Information that shows the extent to which the ILEC's treatment of the bundled service is likely to conform to the safe harbor for discount allocation65- 407 C.M.R. ch. 289, § 15