Federal Communications Commission DA 12-1231 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of July 3, 2012 Annual Access Tariff Filings ) ) ) ) ) ) WCB/Pricing No. 12-09 ORDER ON RECONSIDERATION Adopted: August 1, 2012 Released: August 1, 2012 By the Chief, Wireline Competition Bureau: I. INTRODUCTION 1. On July 2, 2012, the Bureau released the 2012 Suspension Order,1 which, inter alia, suspended for one day and set for investigation the newly tariffed Access Recovery Charge (ARC) rates contained in the 2012 annual access charge tariff filings by issuing carriers that are charging an ARC.2 In the 2012 Suspension Order, we required that all issuing carriers charging an ARC file a supplement that implemented the practical effects of such Order,3 and we required all issuing carriers charging an ARC to keep an accurate account of all amounts received that are associated with the ARC rates.4 2. In this Order, on our own motion, we reconsider our decision to suspend and investigate the ARC rates contained in the annual access tariffs filed by the carriers listed in Appendix A. The specific issues that are the subject of the remaining investigation will be identified in an upcoming Designation Order. II. DISCUSSION 3. In the 2012 Suspension Order, we suspended for one day and set for investigation the ARC rates contained in the 2012 annual access charge tariffs for all carriers charging consumers an ARC.5 As we discussed, we were concerned that both the complicated nature of the new rules implemented by the USF/ICC Transformation Order,6 and the complexities associated with new Tariff 1 July 3, 2012 Annual Access Tariff Filings, WCB/Pricing No. 12-09, Order, DA 12-1037 (Wireline Comp. Bur., rel. July 2, 2012) (2012 Annual Access Tariff Suspension Order or 2012 Suspension Order). 2 Id. at para 10. 3 Id. at para 11. 4 Id. at para 12. 5 Id. at para 3. 6 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, Direct Commc’ns Cedar Valley, LLC v FCC, No 11-9581 (10th Cir. Filed Dec. 18, 2011) (and consolidated cases). Federal Communications Commission DA 12-1231 2 Review Plans (TRPs) developed to ensure compliance with the updated rules, had led issuing carriers to file tariffs that were not in compliance with the new rules.7 Specifically, we had concerns that issuing carriers did not correctly calculate their Eligible Recovery, which, in part, establishes the baseline from which carriers calculate their ARC charges and potential recovery from the Connect America Fund.8 Our initial review of the TRPs and the supporting documents indicated that the vast majority of the 2012 annual access charge filings may have been calculated in a manner inconsistent with our rules.9 Therefore, substantial questions of lawfulness existed to justify suspending all of the filed annual access charge tariff filings that included an ARC rate and to begin an investigation of the 2012 annual access charge tariffs. 4. Upon further review and analysis of the annual filings, however, we conclude that certain carriers either correctly calculated their FY 2011 revenues and their Eligible Recovery amounts in their initial tariff filings or corrected such calculations in subsequent amendments to their tariff filings.10 Accordingly, pursuant to sections 1.108 and 0.291 of the Commission’s rules,11 we reconsider on our own motion our decision to suspend and investigate the issuing carriers and associated transmittals listed in Appendix A. We conclude that these carriers demonstrated in their tariff filings (either original or amended) that their Eligible Recovery calculations comply with the new rules. Therefore, we terminate the investigation of the tariffs filed by the issuing carriers and associated transmittals listed in Appendix A. III. ORDERING CLAUSES 5. Accordingly, IT IS ORDERED that, pursuant to sections 0.91, 0.291 and 1.108 of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, 1.108, we reconsider on our own motion our decision in the 2012 Suspension Order to suspend and investigate the revised tariff rates for the issuing carriers and associated transmittals listed in Appendix A. The tariffs filed by the other carriers listed in the 2012 Suspension Order remain under investigation. 7 2012 Suspension Order, para 4. 8 Id. at para 6. 9 See, e.g., Letter from Sharon E. Gillett, Chief, Wireline Competition Bureau to Regina McNeil, Vice President and General Counsel, NECA, WC Docket Nos. 10-90, 07-135, 05-337, 03-109, CC Docket Nos. 01-92, 96-45, GN Docket No. 09-51, WT Docket No. 10-208 (May 30, 2012). Commission staff continues to work with carriers to identify and resolve specific issues, which will be detailed in an upcoming Designation Order. 10 The Public Service Commission of the District of Columbia (DCPSC) submitted a Petition to Suspend Verizon’s tariff arguing that Verizon was improperly charging D.C. customers an ARC. See Verizon Telephone Companies Tariff Nos. 1, 11, 14, 16, Transmittal No. 1191, Petition for Suspension of the Verizon Access Recovery Charge Tariff Filed by Betty Ann Kane, Chairman of the Public Service Commission of the District of Columbia (filed July 30, 2012). Petitions to suspend were due on June 25, 2012. Because this petition was not timely filed we dismiss it here. 47 C.F.R. § 1.773. However, the DCPSC has filed a petition requesting reconsideration of section 51.915(e)(3) of the Commission’s rules, which remains pending and is the appropriate vehicle for the Commission to address these issues. See Petition for Reconsideration of the Public Service Commission of the District of Columbia, WC Docket Nos. 10-90, 07-135, 05-337, 03-109; GN Docket No. 09-51; CC Docket Nos. 01-92, 96-45; WT Docket No. 10-208 at 3-5 (filed Dec. 29, 2011). 11 47 C.F.R. §§ 0.291, 1.108. Federal Communications Commission DA 12-1231 3 6. IT IS FURTHER ORDERED that, pursuant to sections 0.91 and 0.291 of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, the investigation and accounting order imposed in WCB/Pricing No. 12-09 IS TERMINATED with respect to the issuing carriers and associated transmittals listed in Appendix A, as indicated in this Order. FEDERAL COMMUNICATIONS COMMISSION Julie A. Veach Chief, Wireline Competition Bureau Federal Communications Commission DA 12-1231 4 APPENDIX A 2012 Access Filings Subject to the Reconsideration Issued: June 18, 2012 Price Cap ILECs ACS Transmittal No. 19 Ameritech Operating Companies Transmittal No. 1767 BellSouth Telecommunications Transmittal No. 33 CenturyLink Operating Companies Transmittal No. 21 Cincinnati Bell Telephone Transmittal No. 870 Consolidated Communications Companies Transmittal No. 38 FairPoint Communications Transmittal No. 31 Frontier Communications Transmittal No. 26 Illinois Consolidated Transmittal No. 155 Nevada Bell Telephone Company Transmittal No. 232 Pacific Bell Telephone Company Transmittal No. 466 Qwest Corporation Transmittal No. 465 Southern New England Telephone Co. Transmittal No. 1033 Southwestern Bell Telephone Company Transmittal No. 3345 Verizon Telephone Companies Transmittal No. 1191 Windstream Communications Transmittal No. 55 Issued: June 22, 2012 Consolidated Communications Companies Transmittal No. 39 Illinois Consolidated Transmittal No. 156 Issued: June 29, 2012 CenturyLink Operating Companies Transmittal No. 23