Federal Communications Commission DA 22-407 Before the FEDERAL COMMUNICATIONS COMMISSION WASHINGTON, D.C. 20554 In the Matter of July 1, 2022 Annual Access Charge Tariff Filings ) ) ) ) ) WC Docket No. 22-108 ORDER Adopted: April 15, 2022 Released: April 15, 2022 By the Chief, Pricing Policy Division: 15-DAY TARIFF FILINGS: June 16, 2022 EFFECTIVE: July 1, 2022 PETITIONS: June 23, 2022 REPLIES: June 27, 2022 7-DAY TARIFF FILINGS: June 24, 2022 EFFECTIVE: July 1, 2022 PETITIONS: June 27, 2022 REPLIES: June 29, 2022 (due no later than 12:00 p.m. (noon) Eastern Time) I. INTRODUCTION 1. In this Order, we establish procedures for the 2022 filing of annual access charge tariffs and Tariff Review Plans (TRPs) for incumbent local exchange carriers (LECs) subject to price cap regulation, as well as rate-of-return LECs subject to sections 61.38, 61.39, and 61.50 of the Commission’s rules. 47 CFR §§ 61.38 (rate-of-return carriers that file tariffs based on projected costs and demand), 61.39 (rate-of-return carriers that file tariffs based on historical costs and demand), 61.43 (tariff filings for price cap LECs), and 61.50 (regulation of business data services offered by rate-of-return carriers electing incentive regulation). 2. This Order: (1) sets an effective date of July 1, 2022 for the annual access charge tariff filings made on both 15- and 7-days’ notice; (2) establishes the dates for filing petitions to suspend or reject an incumbent LEC’s tariff filing and replies to such petitions; See 47 CFR § 1.773. (4) addresses service of the petitions and replies; and (5) reminds carriers that the Commission adopted new tariff filing fees and a new payment system which took effect on December 15, 2021. See 47 CFR § 1.1105; Wireline Competition Bureau Reminds Applicants of the Effective Date of New Application Processing Fees, Public Notice, DA 21-1578 (WCB Dec. 15, 2021) (Public Notice). In the USF/ICC Transformation Order, the Commission adopted rules requiring incumbent LECs to reduce, over a period of years, many of their switched access rates. That rate transition has been completed. See Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17663, 17677, 17934-35, 18149, paras. 36, 801 & fig. 9, 1404 (2011) (USF/ICC Transformation Order), pets. for review denied sub nom. In re: FCC 11-161, 753 F.3d 1015 (10th Cir. 2014); 47 CFR §§ 51.915, 51.917. Price cap incumbent LECs were required to transition certain tariffed switched access rates effective July 1 on each of those years to bill-and-keep ($0) over a six-year period that ended in 2018. Rate-of-return incumbent LECs were required to transition certain tariffed switched access rates effective July 1 on each of those years to bill-and-keep ($0) over a nine-year period that ended in 2020. See USF/ICC Transformation Order, 26 FCC Rcd at 17934-96, para. 801, fig. 9; 47 CFR §§ 51.907(h), 51.909(j). The Commission also established a mechanism known as Eligible Recovery that enables incumbent LECs to recover a decreasing portion of their lost revenue attributable to the required switched access rate decreases. USF/ICC Transformation Order, 26 FCC Rcd at 17677, 17956-96, paras. 36, 847-923; 47 CFR §§ 51.915, 51.917. The TRPs implement adjustments to incumbent LECs’ Eligible Recovery as required under the Commission’s rules each year, effective July 1. See USF/ICC Transformation Order, 26 FCC Rcd at 18149, para. 1404 (delegating authority to the Wireline Competition Bureau, as appropriate, to implement the rules adopted in the USF/ICC Transformation Order). All correspondence and comments in connection with these filings should refer to the caption of this proceeding, July 1, 2022 Annual Access Charge Tariff Filings, WC Docket No. 22-108. II. DISCUSSION A. Tariff Effective Dates and Tariff Filing Dates 3. The Commission’s rules require incumbent LECs to file annual access charge tariffs with a scheduled effective date of July 1. See 47 CFR §§ 69.3(a), 51.705, 51.907, 51.909. Incumbent LECs are permitted to make their tariff filings either 15 or 7 days prior to the scheduled effective date of their tariff revisions, depending on the type of changes they propose to make. 47 U.S.C. § 204(a)(3) (“A local exchange carrier may file with the Commission a new or revised charge, classification, regulation, or practice on a streamlined basis…[which]…shall be deemed lawful and shall be effective 7 days (in the case of a reduction in rates) or 15 days (in the case of an increase in rates) after the date on which it is filed with the Commission unless the Commission takes action…before the end of that 7-day or 15-day period, as is appropriate.”); 47 CFR § 61.58(a)(2)(i) (pursuant to section 204(a)(3) of the Act, local exchange carriers may file streamlined tariffs on 7-days’ notice if it proposes only rate decreases, and on 15-days’ notice for any other streamlined tariff including those that propose rate increases). 4. Incumbent LECs that file tariffs under the price cap ratemaking methodology are required to file revised annual access charge tariffs every year. 47 CFR § 61.43. Incumbent LECs that file tariffs under a rate-of-return ratemaking methodology are required to file every other year. Incumbent LECs filing pursuant to the requirements of section 61.38 of the Commission’s rules are required to file annual access charge tariffs this year, an even-numbered year. 47 CFR §§ 61.38, 69.3(f)(1). Ordinarily, rate-of-return incumbent LECs subject to section 61.39 of the Commission’s rules 47 CFR § 61.39. would not be required to file annual access charge tariffs this year, because they file revisions in odd-numbered years. 47 CFR §§ 61.39, 69.3(f)(2). Pursuant to the USF/ICC Transformation Order, however, rate-of-return incumbent LECs subject to section 61.39 of the Commission’s rules must file a TRP this year to comply with the requirements of sections 51.917(d)(1)(iv), and 51.917(e) of the Commission’s rules. 47 CFR § 51.917(d)(1)(iv), (e). 5. In addition, all price cap and rate-of-return incumbent LECs are required to transition their interstate and intrastate toll free (or 8YY) originating end office access service rates to bill-and-keep over a three-year period beginning July 1, 2021. 47 CFR §§ 51.907(i)-(k), 51.909(l)-(o); 8YY Access Charge Reform, WC Docket No. 18-156, Report and Order, 35 FCC Rcd 11594, FCC 20-143, at 10, para. 25 (Oct. 9, 2020) (8YY Access Charge Reform Order); 85 Fed. Reg. 75894 (Nov. 27, 2020). The bill-and-keep methodology is defined in 47 CFR § 51.713. As part of this transition, beginning July 1, 2022, incumbent LECs are required to reduce interstate and intrastate originating end office access service rates for toll free calls by one-half of the maximum rate allowed by the Commission’s rules. 47 CFR §§ 51.907(j)(1), 51.909(n)(1). Incumbent LECs are also required to reduce intrastate and interstate toll free database query charges by one-half of the difference between the rate permitted by the rules and the transitional rate of $0.00002 per query. 47 CFR §§ 51.907(j)(2), 51.909(n)(2). B. Tariff and Tariff Review Plan Filing Instructions 6. Incumbent LECs must file all of their tariff materials through the Commission’s Electronic Tariff Filing System (ETFS). See 47 CFR § 61.13(b). Access to ETFS is available here: https://apps.fcc.gov/etfs/etfsHome.action. Incumbent LECs should make every effort to file as early in the day as possible to avoid any complications in meeting the applicable filing deadlines. Incumbent LECs’ 15-days’ notice tariff filings must be received by ETFS after 7:00 p.m. Eastern Time on June 15, 2022 and before 7:00 p.m. Eastern Time on June 16, 2022 for the filing to be considered officially received on June 16, 2022. Incumbent LECs’ 7-days’ notice tariff filings must be received after 7:00 p.m. Eastern Time on June 23, 2022 and before 7:00 p.m. Eastern Time on June 24, 2022 for the filing to be considered officially received on June 24, 2022. 7. The public and interested parties may obtain copies of tariffing materials through ETFS. For more information, please contact either Christopher S. Koves, Pricing Policy Division, Wireline Competition Bureau, Christopher.Koves@fcc.gov, or Richard Kwiatkowski, Economic Analysis Division, Office of Economics and Analytics, Richard.Kwiatkowski@fcc.gov. C. New Tariff Filing Fees and Payment System 8. When carriers submit their annual access charge tariff filings on ETFS, they must also pay the associated tariff filing fee. 47 CFR § 1.1105; Public Notice at *2. We remind carriers that the Commission recently revised its tariff filing fees, which are listed in the table below: 47 CFR § 1.1105; FCC, Schedule of Application Fees of the Commission’s Rules, 86 Fed. Reg. 70125-01 (Dec. 9, 2021); Amendment of the Schedule of Application Fees Set Forth in Sections 1.1102 through 1.1109 of the Commission’s Rules, MD Docket No, 20-270, Report and Order, 35 FCC Rcd 15089 (2020). Tariff Filing Forms Fee Amount Payment Code Complex Tariff Filing (Large – all price cap LECs and entities involving more than 100 LECs) Corres. & 159 $6,540 CQL Complex Tariff Filing (Small – other entities) Corres. & 159 $3,270 CQM 9. We also remind carriers that they must submit the tariff filing fee through the new payment system contained in the Commission’s Registration System (CORES). See FCC Announces Decommissioning of Fee Filer as Method of Payment and Replacement with New Payment Module Within CORES et al., Public Notice (Dec. 1, 2021), https://www.fcc.gov/document/replacement-fee-filer-new-commission-payment-module. Effective December 15, 2021, the Commission decommissioned and permanently discontinued its old online electronic payment system for regulatory and other fees, Fee Filer, and replaced it with a new payment system contained in CORES. Id. The Commission will only accept funds required for the 2022 annual access charge tariff filing through the CORES payment system. For more information about the CORES Payment System, please visit: https://www.fcc.gov/licensing-databases/fees/cores-payment-system. Carriers can access CORES either at https://apps.fcc.gov/cores/userLogin.do, using an existing FCC Username account, or through the CORES’ FCC Registration Number (FRN) access page, https://apps.fcc.gov/cores/paymentFrnLogin.do. For technical assistance with CORES, please submit a help request through https://www.fcc.gov/available-support-services, or call 877-480-3201, or send an email to ARINQUIRIES@fcc.gov. D. Pleading Filing Dates and Procedures 10. Petitions to suspend or reject 15 days’ notice tariff filings will be due no later than June 23, 2022, and replies will be due no later than June 27, 2022. Petitions to suspend or reject 7-days’ notice tariff filings will be due no later than June 27, 2022, and replies will be due no later than 12:00 p.m. (noon) Eastern Time on June 29, 2022. We waive those portions of sections 1.4(f) and 1.773 of the Commission’s rules that are inconsistent with these deadlines. See 47 CFR §§ 1.3, 1.4(f), 1.773(a), (b). 11. Pursuant to sections 1.419 and 1.773 of the Commission’s rules, interested parties may file petitions to suspend or reject tariff filings, and replies thereto, on or before the dates indicated in this document. Id. §§ 1.419, 1.773. Pleadings must reference WC Docket No. 22-108 and must be addressed to the Commission’s Secretary, Office of the Secretary, Federal Communications Commission. · Electronic Filers: Pleadings may be filed electronically using the Internet by accessing the Commission’s Electronic Comment Filing System (ECFS): www.fcc.gov/ecfs. See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). · Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing. Filings can be sent by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail. § Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9050 Junction Drive, Annapolis Junction, MD 20701. § U.S. Postal Service First-Class, Express, and Priority mail must be addressed to 45 L Street NE, Washington, DC 20554. § People with Disabilities: To request materials in accessible formats for people with disabilities (Braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice). 12. Courtesy Copies. In addition, on the day an electronic filing is submitted, an electronic courtesy copy of any comments, reply comments, petitions, and replies, must also be emailed to Christopher Koves, Christopher.Koves@fcc.gov, and Richard Kwiatkowski, Richard.Kwiatkowski@fcc.gov. 13. Ex Parte Rules. The proceeding this Order initiates shall be treated as a “permit-but-disclose” proceeding in accordance with the Commission’s ex parte rules. 47 CFR § 1.1200 et seq. Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and (2) summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter’s written comments, memoranda or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with rule 1.1206(b). In proceedings governed by rule 1.49(f) or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed in their native format (e.g., .doc, .xml, .ppt, searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission’s ex parte rules. E. Service 14. Because there is limited time available for review of petitions to suspend or reject tariff filings made pursuant to this Order, we establish the following service requirements for such petitions and responses thereto. Any party filing a petition to suspend or reject such a tariff filing must also serve that petition on the entity that is the subject of the petition, the relevant tariff filer, its attorney or other duly constituted agent, by personal delivery, facsimile transmission, or email. See id. §§ 1.773(a)(4), (b)(3). Any party responding to a petition to suspend or reject must serve that response on the relevant petitioner, its attorney or other duly constituted agent by personal delivery, facsimile transmission, or email. To effectuate these service requirements, we waive those portions of sections 1.47(d), 1.773(a)(4) and 1.773(b)(3) of the Commission’s rules that are inconsistent with the requirements set forth above. Id. §§ 1.3, 1.47(d), 1.773(a)(4), (b)(3). Parties are instructed to provide contact persons, email addresses, and facsimile numbers in their filings. III. ORDERING CLAUSES 15. Accordingly, IT IS ORDERED that, pursuant to sections 1, 4(i) and (j), 5, and 201-209 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i)-(j), 155, 201-209, and sections 0.91 and 0.291 of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, this Order IS ADOPTED. 16. IT IS FURTHER ORDERED that, pursuant to sections 0.91, 0.291, and 1.3 of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, 1.3, that sections 1.4(f), 1.47(d), and 1.773 of the Commission’s rules, 47 C.F.R. §§ 1.4(f), 1.47(d), 1.773, ARE WAIVED for the limited purposes specified herein in paragraphs 10 and 14. 17. IT IS FURTHER ORDERED that, pursuant to section 1.102(b)(1) of the Commission’s rules, 47 C.F.R. § 1.102(b)(1), this Order SHALL BE EFFECTIVE upon release. FEDERAL COMMUNICATIONS COMMISSION Gil M. Strobel Chief, Pricing Policy Division Wireline Competition Bureau 2